Easy finance

According to the law passed by federal government, if a person is unable to pay off his debts, his assets will be turned over to a trustee in order to pay off outstanding debts. This usually occurs when someone owes more than he/she have the ability to repay.
If a person is unable to settle his debts for any reason, filing for bankruptcy will be a better option for him. Your creditors may file a petition against you in court at any point of time if u fail to pay off their debts on time.
According to the federal law, there are different chapters for different debt categories. As per chapter seven of bankruptcy, the property of debtor is sold in order to pay off the money to creditors. Homes and cars are the only asset that be sold for debt settlement purpose. If the asset is jointly owned, part of which belongs to the debtor will only qualify for selling under beneficial interest and this interest is then transferred to any other person who wants to buy it at a minimum value.
Under Chapter 13, an agreement is made between both debtor and his/her creditors. As per that particular agreement, the debtor starts repaying within 35-50 days from the date when the agreement gets approved. A specific trustee takes care of the payment made by the debtor and then distributes it to other creditors.