There are different types of bankruptcy, such as chapter 7 11 and 13 bankruptcy. Chapter 7 and chapter 13 are two kinds of personal bankruptcy, and chapter 11 bankruptcy is usually for corporations rather than individuals. Chapter 7 11 and 13 bankruptcy are three of the most common types, and are often confused.
Many people are unclear on the differences of chapter 7 versus chapter 13 bankruptcy. When an individual declares chapter 7 bankruptcy, his or her debt is discharged, either in part or entirely. With chapter 13 bankruptcy, all or part of the debt is paid, with an installment or payment plan. For individuals who are in debt over their heads, there are bankruptcy law attorneys available who can give bankruptcy tips and advice. To be eligible for chapter 7 bankruptcy, debtors have to pass a means test to prove that their income is less than the average median income based on the size of your family and which state you live in.
Falsifying bankruptcy forms is a serious offence, and is considered perjury. In the United States, bankruptcy fraud is a federal crime. Often times celebrities and professional athletes who were once millionaires but are no longer at the height of their careers end up declaring bankruptcy. According to Sports Illustrated magazine, more than 75 percent of all professional athletes are either already bankrupt or have serious financial issues only two years after retiring from their sports.
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