Different Chapters Of Bankruptcy

Time To Sell House Posted on April 28, 2020 Posted by Cassie Gonzales

No one ever anticipates having to file for bankruptcy. We get it, times are hard and with that
the financial strain that accompanies it can feel like you are barely staying above water. During
trying times, it is important to know what options are available to you. FixerUpper4Cash has
helped lift the financial burden of bankruptcy from homeowners’ shoulders. We have
knowledge and experience in navigating bankruptcies effects on your house and we can help
get you the cash for your house that you need.

The different chapters of bankruptcy can have long-lasting effects on your personal property
and financial record for a designated amount of time after you file for bankruptcy.

Some of the most common chapters of bankruptcy that are filed are chapter 7 and chapter 13 bankruptcy. While certain debts can’t be fully wiped out, some can. This overview of the different chapters of bankruptcy will explain these bankruptcy options.

Understanding Bankruptcy Eligibility

Ensuring that you take the most beneficial route is crucial when choosing between the different
chapters of bankruptcy. Chapter 7 is normally filed by those who are within the median level of
income while those who file chapter 13 must meet very specific income requirements. Some
include regularly recurring income and meeting unsecured and secured debt amounts. Once
you have established which of the different chapters of bankruptcy you are eligible for, you
need to next assess the potential stakes.

Bankruptcy and Your Personal Property

In chapter 7 bankruptcy most of your property can be sold in order to pay off your debts. Items
like homesteads, motor vehicles, jewelry, and other personal properties can be liquidated. For
chapter 13 filing none of your assets are sold to pay your debt. You are basically agreeing to a
payment plan. However, if you begin to miss payments on that plan, your personal property is
then used as collateral. While this is hard to hear, there are some exemptions with dollar
amounts in each area that can exempt some of your property. Understanding the limits on
these exemptions can help save some of your personal property.

There are also state and federal exemptions that may provide additional relief.
When facing bankruptcy, it’s hard to think about potentially losing personal property but it may
be your best way out. FixerUpper4Cash can help and is ready to make an all-cash offer on your
house.