The epidemic of bankruptcies in the past couple of years has slowed down somewhat, as fewer people are declaring Chapter 7 or Chapter 11 protection. However, a number of people are not filing for bankruptcy because they can’t pay for to do so.
Bankruptcy is a way for individuals and companies who are overwhelmed by debt to discharge their debts or reorganize their debts and start fresh. Bankruptcy is governed by the federal law found in Title 11 of the United States Code.
Bankruptcy filed under Chapter 13 gives men and women a variety of pros over liquidation under CH 7. Maybe most significantly, chap 13 offers men and women a chance to protect their homes from foreclosure. By filing under this chapter, consumers can stop foreclosure proceedings and may fix over due mortgage payments over time.