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 | What is bankruptcy? | |
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| Bankruptcy is the legal proceeding whereby a debos assets are distributed among his credits to discharge debts. | |
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| How many types of bankruptcy? | |
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| The two most common types of bankruptcy are chapter 7 and chapter 13. | |
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| What is the difference between the two? | |
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| Chapter 7 is when any unsecured debts (debts that are not guaranteed by collateral) will be wiped out and chapter 13 is when you can develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. | |
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