Bankruptcy Protection

Chapter 11 protection is synonymous with filing for bankruptcy protection as the term refers to the chapter in the US Bankruptcy code which allows for reorganization under US bankruptcy laws. However many individuals mistakenly assume that this is the code that they need to file under for personal protection from their creditors. Chapter 11 is most often used by corporations and businesses. Chapter 7 and Chapter 13 are the chapters under which most private individuals file for personal bankruptcy protection.

Who should file for Bankruptcy Protection

There is no one right or wrong answer to answer this question. The answer typically revolves around whether you have insufficient income or assets to pay off your existing debts, and you see no definite change in your circumstances coming in the near future that would enable you to pay them off. There are very few circumstances where a person really has to file bankruptcy protection. In some rare cases, it may appear to be the best course of action, but the outcome is so damaging that most people who are surveyed about this say that if they had it to do over again they would have found another solution. Though most of us know that bankruptcy stays on your credit history for up to10 years, a less considered fact is that every time you fill out a loan application you will be asked "have you ever declared bankruptcy?" In other words, it follows you around for the rest of your life. Also, employers sometimes check for past bankruptcies, as it is a form of personal data regarding your reliability in ways other than just financial matters. If you are seriously considering bankruptcy, please consult with a bankruptcy lawyer before taking any action.

Disclaimer: This website is intended to provide general information about Bankruptcy Protection. Nothing on chapter11protection.com website should be considered legal or tax advice. Please consult your legal or tax advisor for professional advice. While we endeavor to periodically update the information on this website, chapter11protection.com makes no representation or warranties as to the accuracy, reliability, or completeness of any information on this site.