Amongst other things in life, one can be sure that politics and business are constantly subject to change, not simply because of the relationship they have with each other, but also because of world events.
We all like to think that our country's economy is being well managed and run and that we are in control of it, and in some cases we can through interest rates etc.
, but we are never fully in control.
World events are random and unpredictable, and there is a certain amount in our own economies that is not regulated and also subject to change, and for which many of us have paid a heavy price in recent years.
These recent economic catastrophes have meant that more and more businesses and individuals have been forced onto bankruptcy in recent years.
This has led to an increase in those seeking information about to how to go about claiming bankruptcy and which chapter to file under.
A chapter 13 bankruptcy is basically a situation where an individual or enterprise turns their affairs over to the federal court, which then reschedules their debt structure and commit them to a repayment plan, in which all outstanding debt is paid over a 3-5 year period.
Whilst this may sound simple enough, the terms can be quite harsh, leaving the individual or business in a cash poor situation until the debts are repaid and the bankruptcy discharged.
However, one of the advantages is that there is no forced sale of assets to repay creditors which means that businesses for example, keep their machinery etc.
, as everything is focused on repayment of its debts.
Of course this also means that when the business comes out the other side and the bankruptcy is discharged, the business can carry on, hopefully in good shape without having to spend thousands on new equipment etc.
Another advantage of chapter 13 bankruptcy is that it prevents foreclosure.
For example, if repayments have not been kept up on a piece of machinery, that piece of machinery cannot be repossessed once chapter 13 bankruptcy has been filed.
In this way chapter 13 bankruptcy protects the individual or business, and by doing so protects the creditors as well, by ensuring that they are repaid any outstanding debt in full, albeit over a slightly longer time frame than should have been the case.
The alternative would be a chapter 7 filing, where all assets are liquidated and the proceeds distributed amongst the creditors.
However, there is often not enough money to repay in full, or even close to it, thus making chapter 13 a more satisfactory method as more debt is repaid.
We all like to think that our country's economy is being well managed and run and that we are in control of it, and in some cases we can through interest rates etc.
, but we are never fully in control.
World events are random and unpredictable, and there is a certain amount in our own economies that is not regulated and also subject to change, and for which many of us have paid a heavy price in recent years.
These recent economic catastrophes have meant that more and more businesses and individuals have been forced onto bankruptcy in recent years.
This has led to an increase in those seeking information about to how to go about claiming bankruptcy and which chapter to file under.
A chapter 13 bankruptcy is basically a situation where an individual or enterprise turns their affairs over to the federal court, which then reschedules their debt structure and commit them to a repayment plan, in which all outstanding debt is paid over a 3-5 year period.
Whilst this may sound simple enough, the terms can be quite harsh, leaving the individual or business in a cash poor situation until the debts are repaid and the bankruptcy discharged.
However, one of the advantages is that there is no forced sale of assets to repay creditors which means that businesses for example, keep their machinery etc.
, as everything is focused on repayment of its debts.
Of course this also means that when the business comes out the other side and the bankruptcy is discharged, the business can carry on, hopefully in good shape without having to spend thousands on new equipment etc.
Another advantage of chapter 13 bankruptcy is that it prevents foreclosure.
For example, if repayments have not been kept up on a piece of machinery, that piece of machinery cannot be repossessed once chapter 13 bankruptcy has been filed.
In this way chapter 13 bankruptcy protects the individual or business, and by doing so protects the creditors as well, by ensuring that they are repaid any outstanding debt in full, albeit over a slightly longer time frame than should have been the case.
The alternative would be a chapter 7 filing, where all assets are liquidated and the proceeds distributed amongst the creditors.
However, there is often not enough money to repay in full, or even close to it, thus making chapter 13 a more satisfactory method as more debt is repaid.