bankruptcy is often talked about but it is not a simple process
Nashville, TN (PRWEB) November 16, 2017
Filing for a Chapter 11 bankruptcy is usually a complicated process not common for individuals and National Debt Relief aims to explain it better. The article titled “Is Chapter 11 Bankruptcy Right For You? Find Out Now” released November 8, 2017, differentiates Chapter 11 from the more common Chapter 7 and Chapter 13 bankruptcy proceedings.
The article starts off by pointing out that bankruptcy is often talked about but it is not a simple process. Consumers cannot simply walk to a court and let them know they can no longer pay their bills. Bankruptcy is a complex legal status and can be quite confusing especially Chapter 11.
To start off, the article explains what bankruptcy is. In the simplest sense, it is making a declaration to the courts that consumers, or even businesses and other entities, can no longer pay back their debts. It is a legal structure that helps pay back debts while protecting the debtor from being sued or harassed by creditors.
The article shares that Chapter 7 Bankruptcy is the most common of all the three. It is where consumers liquidate their assets and pay off their creditors. Chapter 13, on the other hand, is a process where debtors structure their debts to make it more manageable. Debtors will be repaying back their debts over a period of time.
The article goes on to explain that Chapter 13 bankruptcy is much like Chapter 13, Debtors reorganize their debts and their assets remain intact and this is more common for business entities. However, private individuals can still file for this. For one, they might not qualify for Chapter 13 or they might need to stretch out their mortgage repayment period.
To read the full article, click here https://www.nationaldebtrelief.com/types-of-bankruptcy/