Real Estate Litigation - Advantages And Disadvantages Of Claiming Bankruptcy

Real Estate Litigation : Bankruptcy is a situation which comes for a person or legal entity can no longer repay or service their debt

. On this recent economic downturn, many people caught out by finding themselves in a situation which cannot be afford to repay their debt and this cannot afford for paying the interest. This means that many are now looking for finding to claim bankruptcy.

A bankruptcy petition is not a matter of personal choice. A creditor will file a Bankruptcy Order against a debtor, and bankruptcy proceedings will continue when the individual has served ignores or disputes it. The process is fairly straightforward, and the bankruptcy will be entered into a very last resort, as its effects are far reaching and life changing.

Pros and Cons of Bankruptcy:

The most attractive advantage of filing bankruptcy is the fact under chapter 7 with an individual emerges debt free. Some debt cannot legally be written off, such as alimony or government tax to name two, but the majority of debt is removed for allowing a fresh start.

There are two downsides and among this is the first and most difficult which is the fact that is virtually good and the money is disbursed amongst your creditors by leaving you with very little.

The second is the remaining debt is cancelled, and you have not repaid in full reluctant to engage at any financial activity in the future. This may not necessary as the above refers to the chapter 7 bankruptcy laws.

Bankruptcy Abuse Prevention and Consumer Protection Act are introduced in 2005 of all bankruptcy applicants with subject to a financial means test.

In adding to this your income is examined and over 6 months prior to filing, your income is more than the median in your state for a family of your size and cannot claim chapter 7 and are pushed into chapter 13.

The advantages of the chapter 13 bankruptcy rules will not have to sell any of your personal assets, and your creditors are paid in full by way of a repayment plan, over 3 5 years.

The main disadvantage of Chapter 13 bankruptcy rules is that the repayment schedule can be pretty harsh. The means test is complex and government has its own definitions for allowable expenses, disposable income which can serve to make your income higher and making a repayment plan quite difficult. A chapter 7 bankruptcy stays on ones credit record for 10 years, chapter 13, 7 years.

For more details about Bankruptcy in utah, log on to http://www.jlmartinlaw.com

by: JL Martin

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