Personal Bankruptcy Laws
The Basics of Personal Bankruptcy Laws
Personal bankruptcy laws in the United States are designed to help any resident of the country who is burdened with debt and has inadequate or no means of paying off. Through personal bankruptcy laws, a person's overwhelming debt can be discharged or wiped out to give the person a chance to re-establish himself.
While personal bankruptcy laws provide a person struggling with debt a chance to start anew, anyone considering filing should realize that declaring bankruptcy will ruin one's credit standing. The record of bankruptcy filing will be on the person's credit report for the next 7 to 10 years. Usually, after bankruptcy a person faces more difficulty and less favorable terms in getting credit.
Before deciding for bankruptcy, speak with a financial counselor and be sure to look for other ways that can fix your credit problems. If you have exhausted all possible alternatives, then personal bankruptcy laws may grant you relief from most of your debt.
The two most commonly used provisions under the United States personal bankruptcy laws, are Chapter 7 bankruptcy and Chapter 13 bankruptcy.
When you file a Chapter 7 bankruptcy, you will surrender all your assets to the court-appointed trustee who will oversee its liquidation. The cash generated from your liquidated assets will be used to pay the people you owe. Only your assets that are considered non-exempt will be seized. Usually, it takes four to six months for the bankruptcy court to issue the discharge. Majority of your secured debts may be discharged but some exceptions include child support and student loans.
Chapter 13 bankruptcy can be used by individuals who have a source of income but need more time to make their payments. In this type of bankruptcy, the debt payment plan including the amount to be paid is restructured so that the debtor will only have to pay back what he can afford after all necessary expenses are covered. The debtor is given a fixed period of time which can be from 36 to 60 months to pay as much of his debt as possible, after which the debtor is relieved from all dischargeable debt.
The cost of bankruptcy filing fee is different for each bankruptcy chapter. You can check the US Court's website for the list of current fees, which should be around $200-300.
While it is not required to have a lawyer in order to file for bankruptcy, it is highly recommended that you seek legal help. Bankruptcy is a legal process that can be overwhelming and complicated. It will be good to have someone to guide you throughout the process and give you expert legal advice.
Bankruptcy Info
Getting Your Finances Back On Track
Rebuilding Credit After Bankruptcy
Doing Nothing And Avoiding Bankruptcy
Bankruptcy Info
... counseling agencies through the Yellow Pages or via the Internet, you can assess their reputation by checking with your local Better Business Bureau. Some credit counseling agencies are strictly non-profit and offer their services for free to those they deem in need of assistance. Others charge certain ...
... Any assets that are not exempt are going to be sold off by the trustee in order to pay back the creditors. This is going to mean that the other types of unsecured debts that you have will be canceled. Even though most other types of unsecured debt are canceled, there are some that you are still going ...
... would want to make sure that it is accurate. Get a copy of your credit report and check for errors. Before you apply for loans after bankruptcy, it may be good to first look back and figure out what went wrong in your finances to avoid going through the same path twice. Were you overspending? Was your ...
... Other debts that cannot be possibly discharged are debts not listed in the bankruptcy papers, debts for property damage, personal injury or death caused by inappropriate behavior (e.g. drunk-driving), fines and penalties imposed for law-violation (traffic-tickets and criminal reimbursement), recent income-tax ...
Corporate Bankruptcy Where Does It Leave You
... of the assets to pay off creditors. For, secured debts are repaid, and then unsecured debts are repaid. If there's any money left, it is split amount he stockholders, but this is usually not the case. The bottom line is that bankruptcy is bad for everyone. It is important to follow the things happening ...