E and R Enterprises Blog

Chapter 7, 13, 11 and different regulations on different states, make it confusing for consumers to file bankruptcy on their own and cause them to spend huge amount of money on attorneys while they are already in financial hardship. In reality the rules are not that hard to learn and self filing for bankruptcy is not a scary task. Lets start of with different chapters and what they mean.

Chapter 13 bankruptcy is a reorganization plan. You have to submit a payment plan spread out to years. While creditors get paid what they are entitled to, you can stop wage garnishment and foreclosures and plan your future ahead freely. The biggest condition for this code, obviously, you have to have a source of income so that collaterally you can show the court that the plan is viable. If you have petitioned for chapter 13 before in 2 years of your debt is over a certain amount, you are not eligible as well.

Whereas Chapter 7 bankruptcy, you will be liquidating your assets. The court assigns a trustee to the base, which will sell your non-exempt assets (you have to check your state laws what you can keep) and create a plan to pay the creditors. You can not file for chapter 7 if you filed in 180 days prior to your current filing. You will be subject to property loss but you will immediately stop all pursuing action against you by the creditors, creating instant “safe” stay and relief.

When you decide on which chapter you want to file, it is really not that hard to prepare your documents and file in the court. Rather than paying a lot of money to attorneys, you can check the US Bankruptcy Court web site where there is a lot of information on the issue.

We are glad to announce that, our blog at erenterprises.net is reactivated and we will try to publish great news and information about business/finance as well as related products. Please stay tuned and come back later while our blog is still being tweaked. If you have any suggestions, please do not hesitate to write or comment to us.