Millions of people file for bankruptcy each year for various reasons. Bankruptcy is a situation in which a consumer does not have the ability to pay back his or her debts. Common reasons for bankruptcy are divorce, loss of job, family changes and disability. Two main types of bankruptcy exist for individual consumers. Chapter 13 is a chapter of bankruptcy that requires that the person pay some of the debt back. The person will have to create a repayment arrangement that the creditors will find appealing. A Chapter 7 bankruptcy is another chapter that people refer to sometimes as the liquidation chapter. Creditors and debtors can come to agreements on items that the debtor will offer to the creditors. Businesses filed chapters 10 and 11 bankruptcy. The following are some of the things that creditors are allowed to claim:


Creditors are allowed to take a person’s inheritance. In fact, a consumer must report to the attorney if he or she is going to receive an inheritance. The debtor can use the inheritance to settle bankruptcy liquidation.


Automobiles are items that many debtors offer to the creditors for liquidation in a Chapter 7. The value of a newer vehicle can cover the cost of the overdue debt precisely.


Houses are another asset that the creditor can take in a bankruptcy case. However, many people work with the attorneys to save their homes and their investments.

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Social media account such as Facebook and Twitter accounts can be claimed by the creditors in a bankruptcy case. The reason for such is that the creditors see the accounts as business assets. The accounts do bring in money, even if it is in a third-party sense. Social media accounts can help to pay back some of the debt that the person accumulated.

A debtor can contact a reliable bankruptcy attorney to discuss the chapter for which he or she qualifies. The person will have to pass a means test to qualify for Chapter 7 bankruptcy. Otherwise, an individual consumer will be placed on a chapter 13. A business can contact an attorney and schedule a consultation, as well. The attorney will try his or her best to ensure that the debtor gets to keep everything that is crucial. Bankruptcy attorneys care about the clients’ welfare and well-being.

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