Before ever considering bankruptcy, there are some things you have to consider. The first thing is that bankruptcy is something that has very dire consequences. The consequences are so dire that you may find it difficult to obtain credit for the next 10 years. If you do obtain credit, then there are certain circumstances that come with it. Bankruptcy is not an easy out. It is impossible for something to be that easy for the fact...more
Filing for bankruptcy is an extreme move and definitely not a fast fix. It's an extended, painful proceeding with a major impact on your social standing and you're unlikely to be able to get any kind of credit for up to ten years afterwards.Even so bankruptcies are rising. Out of stupidity or ignorance more people seem to be using bankruptcy as a prime way out, instead of a final resort. Before you consider it, be sure to examine...more
Bankruptcies can be called reorganizations or liquidations, depending on which type of bankruptcy you decide to do. Both a Chapter 7 and a Chapter 13 bankruptcy are federal court processes that are meant to assist businesses or consumers to get rid of their debt or to repay the debt with protection provided by the bankruptcy court.A Chapter 7 bankruptcy is considered a liquidation. If you own property, it is sold (liquidated) and the profit is used to pay off as much of your debts as possible and leaving you with enough to start over.A Chapter 13 bankruptcy is a reorganization and is by far the most common type of consumer bankruptcy. Consumers who file a Chapter 13 typically repay their debts over a period of three to five years under the protection of the bankruptcy court.If you are considering bankruptcy, you should understand that both variations of bankruptcy have exceptions regarding which types of debts are covered, who is eligible to file for a bankruptcy and what property you will be allowed to keep during a bankruptcy.Chapter 7 BankruptcyFor individuals or businesses that are convinced there is no way to get themselves out of the debt they've gotten into,...more
When it comes to debt relief, knowledge can be a power. Finding quality legal advice is an excellent first step. Professionals that understand the workings of the legal system are the best sources for advice and they can help you to decide whether bankruptcy is the correct option for you and your situation or not. While it may be easy...more
Bankruptcy is a federal court process that allows people to eliminate their debts and be protected by the bankruptcy courts. There are two main types of bankruptcy, they are, chapter 7 and chapter 13. Although there are other 'chapters' most people do not qualify for these types of bankruptcy proceedings. Chapter 7 and 13, both have...more
It is common that individuals consider filing a bankruptcy application a shameful act. They do not realize that getting frequent telephone calls from banks demanding immediate payment on defaulted credit cards or other loans is more shameful and stressful too. The intention of the bankruptcy law is not to squeeze the person of all his assets and bank balance. It is in fact an opportunity given to the debtor to clear all his debt to the best possible extent and start with a clean slate.How to file a personal bankruptcy application:Applications have to be filed through an attorney along with the details of the creditors and the details of the assets held, etc. The application is filed under Chapter 7 and Chapter 13 of the Bankruptcy Act.Chapter 7:When application is filed under Chapter 7, the applicant has an obligation to liquidate the assets and then hand over the proceeds to the court. The court will appoint a trustee who takes possession of these proceeds. The trustee apportions the proceeds to various creditors in an appropriate manner. As per Chapter 7, some of the assets are exempt from the proceedings both under federal and state law.Chapter 13:The procedure of...more
If you are mired in credit card debt, you have three options. The first is to completely pay off your debts by somehow obtaining a boost in your income. This is unlikely. The second is to file for bankruptcy and get relief from your...more
Congress passed a law that established a set of uniform laws to govern how bankruptcy was handled. These laws were situated under a system called the bankruptcy code. In this code there are chapters that refer to various issues in...more
Unemployment rates are skyrocketing, home foreclosures are at record numbers and consumer debt is at an all time high. Unable to deal with all of these financial pressures, many people are finding themselves considering bankruptcy to...more
Chapter 7 is the most common type of bankruptcy, and is sometimes referred to as liquidation bankruptcy or straight bankruptcy. Chapter 7 is generally the simplest and quickest form of bankruptcy and is available to individuals, married...more
When you claim bankruptcy, all of your assets can be used to pay back some of the debts owed to your creditors. These assets include your possessions, home, income and more. Once this has been done, you will have to agree to certain restrictions and...more
Filing for bankruptcy is never an easy decision, however, there are times where doing so is the only way to deal with crushing debts. For example, many people file for bankruptcy because they have overwhelming credit card or medical debts that are...more