What You Need to Know About Bankruptcy
by:
BMA Editorial Team B .
Bankruptcy is the legal means of wiping out debt. It may seem like a simple solution when you get in over your head in debt. Bankruptcy, though, should not be taken lightly. There are many repercussions of filing bankruptcy.
Before you file bankruptcy you should have a good understanding of the process and what to expect after you have competed filing.
Bankruptcy is meant to give a person a fresh start by relieving debt. A person can file bankruptcy for most debts they have incurred. Some debts can not be cleared through bankruptcy, though. It is very important for a person to check each of their debts to see if they can be cleared through filing.
During a bankruptcy proceeding a person has to make attempts to pay what they can. Most assets and cash on hand is seized and used to pay off the debts. There are some assets which are exempt and can not be used to pay off debts. Once a person starts bankruptcy proceedings creditors can no longer attempt to collect debts from them.
Bankruptcy is filed in a U.S. Bankruptcy Court. There are six types of bankruptcy. Only a few of these apply to an individual. Chapter 7 and Chapter 13 bankruptcies are the most commonly filed by individuals.
Under Chapter 13 a repayment plan is set up instead of assets being seized. The exempt assets list varies from state to state, so a person should check their states bankruptcy laws to see what assets they will not have to surrender.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 changed how individuals file bankruptcy. The aim of this act is to prevent people from using bankruptcy as a way to get out of debt and instead use alternatives to help them get out of debt.
It bases the idea of paying back debts on a person income. If a person has the ability to payback their debts then they are required to do so. It also requires credit counselling to help ensure a person does not end up with debt problems in the future.
Perhaps the most important point for a person to understand about bankruptcy is that it is not just an easy method to clear debts. When a person files for bankruptcy the creditors are not just going to walk away. The court will try to ensure that every step is taken to pay back as much debt as possible.
The court will force a person to sell their assets, like their vehicle, to pay off the debts. Bankruptcy is more about protecting the individual from having creditors harass them or attempt to collect debts. Once a debt is cleared through bankruptcy, the creditor can not attempt to collect on the debt ever again.
About the Author:
James Copper is a mortgage broker with over 30 years experience. He works for
http://www.any-loans.co.uk/adverse-credit-loans.shtml as a Adverse Credit Loans Advisor. In his spare time he writes on all things finance and investment related.
No. of Times this article has been viewed :
1837
Date Published :
Oct 11 2009
Most Recently Published Bankruptcy Articles as of
|
|
Jul 18 2010
Debt Relief: What are the Alternatives to Bankruptcy?
by
Bass Franklin
Debt consolidation, credit counseling, debt settlement, and bankruptcy are a few of the solutions people turn to in order to get their debt under control...
|
Jul 18 2010
Protect Your Vehicle from the Repo Man With Bankruptcy
by
Bass Franklin
Collection companies won't tell you your rights when you fall behind on your car payment. What they won't tell you is that there are federal laws to protect you in these situations.
|
Jul 16 2010
What are the Differences Between Chapter 7 and Chapter 13 Bankruptcy?
by
Bass Franklin
There are two classifications of bankruptcy that individuals can file for: chapter 7 and chapter 13. Chapter 7 bankruptcy is referred to as a liquidation plan. Chapter 13 is called the wage earner's plan and allows people with a regular income to develop a plan for repayment of debt.
|
Jul 15 2010
Four Questions to Ask a Bankruptcy Lawyer Before Signing
by
Bass Franklin
It is important to be fully informed about what a prospective lawyer can offer and what to expect from them.
|
Jul 15 2010
How Flexible is Chapter 13 Bankruptcy?
by
Bass Franklin
Before filing for bankruptcy, it is crucial that you understand all the facts. Since you may not be an expert in bankruptcy law, you will have questions about the process where the answers are anything but clear.
|
Jul 15 2010
New Bankruptcy Law Explained
by
Bass Franklin
On October 17, 2005, new bankruptcy law went into effect, changing the process of filing for bankruptcy throughout the United States. The effects of the new bankruptcy law make the process of filing for bankruptcy more complex, requiring attorneys to specialize in bankruptcy law.
|
Jul 15 2010
What are Five Benefits of Bankruptcy?
by
Bass Franklin
Bankruptcy is not something to jump into haphazardly. Chances are, if you are considering bankruptcy, you have considered every option possible to dig yourself out of debt. If you are thinking about filing for bankruptcy, you aren't alone.
|
Jul 15 2010
The Myths of Bankruptcy
by
Bass Franklin
Once you know the facts about bankruptcy, it is not nearly as frightening as it first appears. Here are some of the most common myths about bankruptcy that you need to know before you begin your fresh start.
|
Jul 15 2010
Does My Chapter 13 Payment Change With My Income?
by
Bass Franklin
If your income changes while you are on a Chapter 13 plan, you have the option of lowering the payment.
|
Jul 15 2010
What Happens If I Don't Make My Chapter 13 Payment?
by
Bass Franklin
If you're filing for bankruptcy in Los Angeles, California and have decided that you no longer want to make payments on your Chapter 13 bankruptcy, you do have several options.
|
Jul 15 2010
Bankruptcy Property Exemptions
by
Bass Franklin
Once a bankruptcy case is completed, a debtor will still need basic possessions and assets to move their life forward. Fortunately, the Bankruptcy Code recognizes these basic needs and provides a variety of property exemptions for debtors.
|
Jul 15 2010
Five Steps to Help Avoid Bankruptcy
by
Bass Franklin
Here are five tips to help you manage your debt and avoid bankruptcy.
|
Jul 13 2010
The Role of a Trustee in a Bankruptcy Case
by
Bass Franklin
If you're filing for bankruptcy in Los Angeles, California and have decided that you no longer want to make payments on your Chapter 13 bankruptcy, you do have several options. Contact the law office of Borowitz & Clark, experienced bankruptcy attorneys who take your case from start to finish.
|
Jul 11 2010
Hiring the Best New York Bankruptcy Attorney
by
BMA Editorial Team 3
For New Yorkers who could no longer keep up with their financial turmoil and need to resort to the last remaining option, which is to file for bankruptcy, need all the help they could get. One such help is through the expert assistance of a New York bankruptcy attorney.
|
Jul 10 2010
Bankruptcy, Foreclosure, & Credit- How It Affects You
by
BMA Editorial Team 3
By filing for a bankruptcy petition under Chapter 7, the petitioner hands himself to the protection of the court. It implies that the petitioner has no hope of ever being able to repay back his debts.
|
|
Search for ebooks on Management & Business