Bankruptcies:
A bankruptcy is a legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code). There a numerous types of bankruptcies. Each is discussed below.
Chapter 7:
The chapter of the Bankruptcy Code providing for "liquidation," that is, the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors. In order to be eligible for Chapter 7, the debtor must satisfy a "means test." The court will evaluate the debtor's income and expenses to determine if the debtor may proceed under Chapter 7.
Chapter 9:
The chapter of the Bankruptcy Code providing for reorganization of municipalities (which includes cities and towns, as well as villages, counties, taxing districts, municipal utilities, and school districts).
Chapter 11:
A reorganization bankruptcy, usually involving a corporation or partnership. A Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in Chapter 11.
Chapter 12:
The chapter of the Bankruptcy Code providing for adjustment of debts of a "family farmer," as that term is defined in the Bankruptcy Code.
Chapter 13:
The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income, often referred to as a "wage-earner" plan. Chapter 13 allows a debtor to keep property and use his or her disposable income to pay debts over time, usually three to five years.
A bankruptcy is one of the most derogatory items that can be listed on a credit report. Further, a bankruptcy is one of the most commonly misreported items on a credit report and has a tendency to negatively impact the consumer's credit score much more than it would if were to be reported correctly. Having a bankruptcy on your credit report can make it extremely difficult, if not impossible to obtain new credit, purchase a home or even refinance your current mortgage for an extended period of time.
Most consumers are unaware of how to establish, maintain or restore their credit. Luckily, Credit Restoration Bureau is one of the country's leading authorities in credit restoration and credit education. Credit Restoration Bureau was formed by bringing together subject matter experts from numerous fields and that collection of expertise allows CRB to apply an all-source approach to their state-of-the-art method of credit repair. Credit Restoration Bureau specializes in removing bankruptcies from the consumers credit report and can assist you in obtaining that fresh start you deserve. Visit the Credit Restoration Bureau website by clicking the link below.
