What You Should Know About Bankruptcy

Filing bankruptcy is not only a last resort legal action; it is also a very complicated legal action that definitely needs the expertise of a lawyer. When thinking about bankruptcy, you first need to decide if bankruptcy is right for you. If it is, then you need the help of an attorney to decide which type of bankruptcy is required for your particular situation.

The decision to file bankruptcy can be brought on by many different circumstances. The most common circumstances are divorce, medical hardships and credit card troubles. In cases of divorce, bankruptcy is often inevitable. The sudden change in financial level and the added burden of court costs, extra expenses and child support often cause one or both parties to get behind on their financial obligations.

In the case of medical hardships, high medical bills can sometimes overburden people even if they have insurance. This is even more likely to happen if the person experiencing the medical emergency is also the family breadwinner.

The most common case of financial hardship is incredibly high credit card balances. After carrying numerous high credit balances for a certain period of time, many people find themselves unable to make anything but the minimum payment and sometimes not even being able to make that. Then, when the high interest rates are added in, people find themselves in a situation where repayment is often impossible.

Whether your situation arose from one of the above financial problems or not, sometimes bankruptcy is the only answer to your monetary problems. Once you have decided that bankruptcy is the answer for you, you will need to enlist the services of a lawyer to decide which type of bankruptcy to file and to help you navigate the many complex bankruptcy laws and regulations.

There are four main types of bankruptcy, Chapter 7, Chapter 13, Chapter 11 and Chapter 12. Chapter 7 is the most common form and can be used by businesses and individuals. Chapter 13 is the second most common form, but it limited to use by individuals only.

In a Chapter 7 bankruptcy, a debtor's property is divided into to categories, exempt and non-exempt. Exempt properties include things that the debtor will be allowed to keep like their home and automobile. In the case of exempt properties, the debtor is allowed to keep them as long as he or she continues to pay for them. If a person cannot continue to make payments, the owner of the loan may repossess the property, even after a bankruptcy has been finalized. Any non-exempt or unsecured property will be sold to cover the debtor's financial obligations. Debts such as credit card debts and medical bills can be written off with this type of bankruptcy, but other debts like school loans and taxes cannot be.

In Chapter 13 bankruptcy, the debtor is required to come up with a way to repay his or her debts, but these debts usually do not have to be repaid in full. In most cases, a creditor will agree to take a small percentage of the owed debt as opposed to losing all repayment all together. This form of bankruptcy is preferable for those individuals that wish to keep all of their possessions and just need a chance to catch up on their financial obligations. It does not, however, excuse a debtor from priority debts like taxes and child support.

In order to qualify for Chapter 13 bankruptcy, an individual must have a yearly income level that allows for repayment of each of his debts within three to five years. After three to five years of consistent repayment, the debtor's obligations are released.

After you have researched bankruptcy and decided that it is right for you, you need to contact an attorney that specializes in bankruptcy to help assure that you follow all legal guidelines and are protected from further collection activity.

You can find a bankruptcy lawyer in your home city at Lawyer Vista

---

Is Independence Overrated?

Happy Independence Day from The Money Motivator!If you don't celebrate "The 4th of July" like we do in the United States, today still presents you with an... Read More

Bankruptcy: What the New Law Means to You

On April 20 of this year, President Bush signed a bankruptcy reform law. When this law goes into effect in October of this year, it will be... Read More

Repair Bad Credit Yourself

In March 2005, the U.S. financial services industry succeeded in hammering the first nail in their plan to overhaul the nation's bankruptcy system. Repairing bad credit yourself... Read More

You Can Make Financial Resolutions Anytime

The New Year often brings with it a desire to right the wrongs in your life. From this desire springs the tradition of New Year resolutions. You... Read More

Debt Reduction, a Necessary Endeavour

Massive debt is something many Americans face. Debt reduction is now becoming more and more of a necessity. Even a low amount of debt can cost you... Read More

Debt Settlement : What You Need To Know

Debt Settlement companies work with your creditors to help you reduce your unsecured debts though arbitration and negations. The important thing to realize about Debt Settlement is... Read More

Debt: Dont Pay Your Minimum Balance

Almost all Americans carry credit card debt. Actually, over 40% of US families spend more than they earn. If you're like most of us, you try not... Read More

IVA Advice

An IVA (individual voluntary arrangement) is an alternative to bankruptcy introduced by the government as part of the Insolvency Act 1986. This article provides an overview of... Read More

Bank Like a Banker

The business of banking has changed dramatically over the last decade. Because the cost of doing business the old-fashioned way is no longer effective, banks are interested... Read More

Debt Relief with this Simple Formula

Is there a way to get out of debt without getting a second job or having to increase your income in some way? Can the average person... Read More

Get Debt Free

If you once have been caught in the debt trap, how do you come out of it and be debt free? We are different and each of... Read More

The Human Side - Debt Stress

In all the technical discussion you hear about credit card debt, the best ways to manage it and pay it off and all the rest, one... Read More

Debt Consolidation Versus Debt Negotiation

Debt consolidation versus debt negotiation are two options that are available to you if you need debt assistance. When your monthly bills become too much for you... Read More

How to Negotiate Debt Settlement

People over extend themselves financially as a result of a change in their lifestyle. In today's economy were company mergers, and such; creates a displacement and hardship... Read More

Debt Elimination 1

If you have multiple debts, you may well be wishing you had a debt elimination wand to wave and make all the debts disappear. You would probably... Read More

Is Filing for Bankruptcy an Option for You?

Bankruptcy laws give debtors a way to resolve debt by dividing their assets among their various creditors and in some cases will allow debtors to be freed... Read More

Utah, the Nation?s Bankruptcy Capital

Congress recently passed the Bankruptcy Abuse Prevention and Consumer Protection Act, designed to minimize frivolous bankruptcy filings and to require debtors to repay some of their debt.... Read More

Bankruptcy - The New Scarlet Letter

Nathaniel Hawthorne's book The Scarlet Letter states in Chapter 2, "On the breast of her gown, in fine red cloth, surrounded with an elaborate embroidery and fantastic... Read More

Mr. Cheapies Frugal Budget Tips

So you feel like a hamster spinning your wheel? The faster you run, the faster the wheel spins. Just when you get a raise, you notice the... Read More

Credit Counseling or Bankruptcy: Which is Best for You?

People often get to a place where they simply can't pay their bills, especially in today's economy which is not particularly sympathetic toward the poor or even... Read More

Bouncing Back from a CCJ

Should you be unfortunate enough to face a CCJ ? but subsequently succeed in having it either set aside or reversed - the court will automatically remove... Read More

Bankruptcy ? Bankruptcy Myths

Bankruptcy has long been a big question mark in the eyes of the consumer. After all they don't teach us about bankruptcy in school. More often than... Read More

Different Ways Of Dealing With Debt

Bills, creditors, debt collectors. Are you yearning for the days when all you had to worry about was the money in your piggy bank? If so, you... Read More

Debt Negotiation and Debt Settlement

Debt negotiation and settlement can give you a drastic reduction in the amount of debt you owe and allow you to repay your debts in a much... Read More

Learn The 15 Debt Elimination Steps You Must Take Immediately!

What Everybody Needs To Know...Learn The Truth About Debt Elimination in 2005!Here`s how we have been taught to charge, charge, charge and promised Easy monthly payments by... Read More

What Is A FICO Score?

Your FICO score or credit score as it's commonly called is a very important calculation that can control whether or not you are eligible to receive credit... Read More