Introduction To Bankruptcy
Offered under Federal Law through the U.S. District Court System.
Filing
bankruptcy is considered the choice of last resort for debt relief.
The reasons for this are varied, not least of which is the expense to file,
the drastic effect on your credit rating, and the legal issues involved.
It was designed to help debtors who were not in a position to pay their debts,
for whatever reason, while offering some protection to creditors at the same
time. The laws are changing all the time, usually to make it harder to obtain
a full discharge of debts.
Some states also have additional laws that supplement the federal laws. It is
essential that you
get qualified legal help to assist you
in understanding the requirements in your district and under your state laws.
Since we are not attorneys, we will not provide legal advice, but will
refer you to resources where you can find a reputable attorney
to help you.
There are two primary chapters that affect individual filers. Chapter 7 and
Chapter 13 are the most common types filed, and involve individual debtors,
joint debtors, and some small business filers.
Chapter 7
Chapter 7, or Liquidation, releases the debtor from almost all obligations to
pay debt, and may involve liquidation of assets. In most cases, the majority
of assets of a debtor are exempt from liquidation. There are a few debts that
are not dischargeable when filing. These may include student loans, fraud-related
debt, Federal and State taxes, among others.
Chapter 13
Chapter 13, also known as Reorganization, is for the debtor who wishes to reorganize
or restructure debt. It permits the debtor and creditors to work out a repayment
plan, subject to court approval, for the repayment of debts.
Chapter 13 offers an alternative to complete liquidation, or payment of debts
in full. Repayment plans are frequently structured so that only a portion of
the original debt is actually paid. This plan could have your debts paid in
full in less than 5 years.
Legal & Filing Fees
Legal fees start at about $800, and frequently higher, for individuals only.
Fees for couples and businesses start out at $1,000 and up. You will need to
spend time getting the paperwork together that your attorney needs to prepare
the legal documents to file. You will also spend time with your attorney reviewing
bills, answering questions, etc.
The filing fees are around $200 for individuals and couples, this is in addition
to any document preparation or legal fees a paralegal or attorney may charge.
Bankruptcy Fact:You can file a Waiver of
Fees application with the Court, and, if approved, you would then be exempt
from paying the Court filing fees.
With the new laws now in effect, we strongly recommend you find a qualified
attorney in your area that knows the bankruptcy laws and exemptions in your
state. We highly recommend that you be smart and safe! Use this
free online
legal referral service ...
Not sure if bankruptcy is right for you? Avoid finance companies offering debt-consolidation
plans. These companies may charge high interest rates and tie up much of your
property as collateral.
Compare your options
to consolidate debts, or
get
a free debt evaluation now
.
Find out if you can reduce your
credit
card payments
by 50%. Get real help that will assist you in finding a way to pay your debts and negotiate
with your creditors.
Take a few moments now to complete the form below to locate a qualified bankruptcy
attorney in your area.
Please allow a few moments after you submit the form for it to be processed.
Leave the screen open and your attorney contact information will appear shortly.
Return to
Bankruptcy Facts, summary of
the laws, chapters, and alternatives. Return to the top of
Introduction
To Bankruptcy
Getting The Answers You Need
Be sure and check out the various debt solution reviews, tips, and articles
provided on DebtSteps.com:
Find Your Solution
offers a comprehensive list of reviews to get out of debt once and for all.
Get answers on bankruptcy, consumer credit counseling, debt settlement, money
management, budgeting, loans and mortgages.
Debt Relief Tips
& Articles to guide you on your way to financial freedom. Get the
lowdown on dealing with debt collectors, handling money problems, understanding
your credit, and more.
What's New?
New Bankruptcy articles ... Bankrupty
and credit report updates, Can
bankruptcy stop foreclosure? Find out here, What you must know about declaring
personal bankruptcy, Learn how to rebuild
your credit score after bankruptcy.
Need help on determining the right
mortgage for you and your family?
The best Debt Elimination Tip you
will ever find!
Find reliable debt settlement
companies in your area.
Free household budget form automatically
calculates totals and financial ratios to help you make smart spending decisions
Get more on what's new
...
Free tips and information about bankruptcy,
what it does and does not do for debt relief.