Information on Bankruptcy (New!) - Bankruptcy may not be for everyone who is behind on bills, but for some, bankruptcy can provide the fresh start they need to free them from financial ruin and get on with their lives. As the American economy flounders, many people who used to live at a fairly high standard of living are finding themselves in financial trouble. The news runs rampant with stories of credit card payments doubling, interest rates being hiked up, and credit limits being spontaneously lowered by banks to amounts lower than what debtors already owe on their unsecured credit card debts...
Alternatives to Bankruptcy - Record levels of American consumers file for bankruptcy each year. The idea of putting an end to overwhelming debt and silencing the calls of harassing creditors can make this seem like an undeniably appealing option. While declaring bankruptcy may seem like a quick fix for financial hardships, in many cases it causes new kinds of challenges and stresses for years to come...
When to File For Bankruptcy - Bankruptcy is a major decision when you are facing mounting debt. For those who cannot pay off their debts, bankruptcy is a way to maintain essential assets while getting creditors off your back. On the other hand, bankruptcy also impairs your ability to get credit for up to 10 years. So how do you know when to file for bankruptcy?...
New Bankruptcy Laws - On October 17, 2005, a new bankruptcy law took effect. Congress felt these new laws were needed for several reasons: • When a person files for bankruptcy, the companies who do not get paid pass those expenses on to their other consumers in the form of higher prices...
How to Avoid Bankruptcy - In today’s economy, you may be finding that simply treading water in the budget no longer works. Any little, or not so little, wave—a missed direct deposit, a mortgage adjustment, or even a 10-cent hike in gas prices—can threaten to sink your economic boat. Sometimes, bankruptcy seems like the only way out and the only way to make the phone stop ringing...
Chapter 11 Bankruptcy - There are four main bankruptcy chapters that are available to individuals. Chapter 7 bankruptcy, often called a “straight bankruptcy,” allows for liquidation of assets and can be used by either consumers or businesses. Chapter 12 was set up entirely for the “family farmer” or the “family fisherman.” Chapter 13, the most common one for individuals, is also known as the “wage earner bankruptcy.” The purpose of this article is to give more detailed information on the remaining bankruptcy, Chapter 11. Chapter 11 bankruptcies are not often used by individuals because in order to file for one, the individual must owe more money than that allowed in a Chapter 13 bankruptcy (i.e., they must owe at least $336,900 in unsecured debts, or $1,010,650 in secured debts) and they must have an income that would make it possible for them to pay off...
Chapter 13 Bankruptcy - Some consider filing for Chapter 13 bankruptcy as a stay of execution, while others view it as a dignified means of getting out of a financial mess. Once upon a time, filing for Chapter 13 bankruptcy was considered an unintelligent choice, especially with the availability of Chapter 7. Chapter 13 bankruptcy filing is a way for U.S. citizens to undergo financial reorganization as supervised by a federal bankruptcy court. In other words, a system for repayment of debt is created with the law insuring that creditors get their money back....
Chapter 7 Bankruptcy - If you are facing what seems to be an insurmountable amount of debt, filing for Chapter 7 of the United States Bankruptcy Code might be the best possible solution. Chapter 7 bankruptcy, also referred to as the “liquidation” or “straight” bankruptcy chapter, allows an individual or business to liquidate assets in order to pay off debt. Under Chapter 7, a trustee is appointed by the court to acquire nonexempt property of an individual or business. Any property that has value is in turn sold by the trustee and liquidated into money to pay creditors. Laws pertaining to Chapter 7 bankruptcy vary in each state of the United States. An individual or business can retain exempt items, including real estate, depending upon the state of residence and applicable federal laws. Those considering filing for Chapter 7...
