What is bankruptcy is a question we hear a lot here at Pacific Debt. We will try to answer that in this video. We also shed some light on what the different types of bankruptcy are. Today, more than ever, people are filing personal bankruptcy as a way to get away from the burden of their debt.
For some people, it’s the only realistic options amongst all the available debt solutions. For example, if you owe $60,000 and you will never make more than $1,000 in any given month, then bankruptcy is the only option.
What is Bankruptcy?
Bankruptcy is a legal action that turns your assets into cash and uses that to pay off your creditors. Some of us might face BK at some point in our lives.
What Are The Different Types of Bankruptcy?
Bankruptcy is designed for desperate consumers who are unable to pay their bills and need to be released from existing debts immediately or restructure it for repayment. It allows the consumer to start over financially.
Find out more information about how bankruptcy works here.
What is Chapter 7 Bankruptcy?
Chapter 7 is designed for individuals.
What is Chapter 11 Bankruptcy?
Chapter 11 bankruptcy allows individuals or businesses to restructure and reorganize debts.
What is Chapter 12 Bankruptcy?
Chapter 12 bankruptcy is designed mainly for family farmers or fishermen to reorganize finances and debts and stay in business.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is for individuals who have assets and make money but want their debt restructured.
The Bankruptcy Process
The bankruptcy process is fairly straightforward. You’ll spend a lot of time filling out documents and legal forms. You’ll need to list all assets, all debts, and all income.
The Pros and Cons of Bankruptcy
In this article, we will list the pros of bankruptcy and the cons of bankruptcy.
Alternatives to Bankruptcy
Bankruptcy is typically a last resort. Explore all your options before filing for bankruptcy. You may want to file if all your alternatives fail. Here are some alternatives to consider first.
Debt Consolidation vs Bankruptcy
If you are strongly considering bankruptcy, you’re probably pretty stressed out!
How to File Bankruptcy Yourself
Bankruptcy can be very expensive. The most expensive part is your legal expenses. Many people file for bankruptcy on their own because of that.
Bankruptcy Conclusion
Before you file for bankruptcy, look at all your available options. It is not a step to take lightly! It is expensive and time-consuming, most people hire a lawyer to file a BK.
Click the link to get a FREE Savings Estimate from Pacific Debt Inc. We can help you understand all your options.
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