Bankruptcy Questions and Answers
It is estimated that approximately 1.25 million Americans will file for bankruptcy this year alone. Last year, 1.38 million people filed for bankruptcy and, according to a Sports Illustrated report, more than three fourths of all professional athletes face serious financial troubles or go bankrupt within two years of the end of their careers. There are many different bankruptcy law attorneys who can offer bankruptcy tips and advice and to help with your bankruptcy questions and answers.
There are three main types of bankruptcy: chapter 7, chapter 11 and chapter 13. The most common reasons for filing bankruptcy are medical problems, job loss and divorce. Falsifying information on bankruptcy forms is considered perjury, and bankruptcy fraud is a federal offense in the United Stats. Bankruptcy lawyers can help explain the differences between chapter 7 11 and 13 bankruptcy, and offer bankruptcy tips and advice.
Chapter 7 is available to individuals and companies, and is the most severe form of bankruptcy. Most of the unsecured debts are dismissed with chapter 7 bankruptcy, but child support and student loans are not dismissed. Chapter 11 is more of a restructuring of debts. Debt is not excused, and individuals or businesses are still in control of all assets under chapter 11. Chapter 13 is only available to individuals, and is the most rare. In chapter 13, debts are not excused, and the individual makes plans to repay the debt within three to five years.