Posts Tagged ‘Bankruptcy Questions and Answers’
- Bankruptcy Questions and Answers Bankruptcy is designed to protect a business or individual that can’t meet its financial obligations. Consumers usually file either a Chapter 7 or Chapter 13 bankruptcy. Both proceedings are filed in the Federal Bankruptcy Court. In a Chapter 7 bankruptcy filing the court will appoint a trustee to sell the debtor’s non-exempt assets and distribute the proceeds among the creditors. In a Chapter 13 filing the borrower proposes and the court must approve a plan to repay creditors from the borrower’s income usually over three to five years.