You have probably noticed some announcements informing the public that company or organization is already bankrupt. The daily news could also contain news that a company or even a person is filing for bankruptcy. Informing the public of someones bankruptcy is more of a legal obligation than a ploy to humiliate the company or person further. Companies, businesses, or organizations are not the only ones who could go bankrupt. A person or individual could also fall into bankruptcy. This happens when a person is unable to pay his debts, bills, and other financial obligations when they are due. And just like bankruptcy in companies, businesses, and organizations, there are various reasons why a person is in this kind of situation. Most people who go into bankruptcy could file Chapter 13 bankruptcy. In Chapter 13, a person who is from the United States can try to reorganize and restructure his financial situation. Just like Chapter 11 bankruptcy, which is for companies, Chapter 13 provides the person or individual with the opportunity to start anew and sort out his financial situation. This is done with the supervision and approval of the bankruptcy court. When a person or individual files Chapter 13 bankruptcy, he has to show the bankruptcy court a plan of action as to how he would be able to pay off his creditors. This should be done in a maximum of three to five years only. The person pays off any debts, as much as he can, in regular intervals. When a person or individual has already filed under Chapter 13, he is then protected from his creditors efforts at making him pay for the debts acquired. A persons credit report reflects and shows his bankruptcy. This information is kept for a period of ten years. |
