It appears as if numerous people are looking for bankruptcy advice nowadays, and with the state of today's economy, that should not be a startling fact. But if your financial situation is in such a condition that you are seeking bankruptcy information, have you also considered your alternatives? Part of the whole process is knowing exactly where you stand and making an intelligent decision as to whether or not going bankrupt is genuinely your best option. |
Normally, bankruptcy should be seen as your option of last resort, and should only be used when you really have no other options. Merely being tired of paying all your bills and being past due on numerous of them is not enough reason to file for bankruptcy, and in fact in a situation like that, the courts may not even approve you to file. Yes, with the changes in bankruptcy law, you must have federal court approval to file, it cannot be done on impulse alone.
Bankruptcy is a financial state that happens when a person or business can no longer repay its debts. In the legal sense, bankruptcy begins when a court recognizes that the financial state of bankruptcy exists. Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay back its creditors. Creditors may file a bankruptcy petition against a debtor ("involuntary bankruptcy") in an attempt to recoup a portion of what they are owed or initiate a restructuring. Bankruptcy is a situation that no one wishes to face.
For consumers and individuals, you can either file Chapter 7 or Chapter 13. Let's look a bit closer at what those are.
Bankruptcies are filed under the following chapter headings. Chapter 7--Straight bankruptcy; debtor releases non-exempt property and debts are discharged. Bankruptcy will always be the rope for people too deep in the quicksand, but it's better to learn to read the warning signals and stay away completely.
Chapter 7 means all your debts (with the exception of back child support, taxes, and a few others) are eliminated and you start over with a clean slate. Chapter 13 requires that you come up with a strict repayment plan based on your income and assets to pay off as much of your debts as possible inside a 5 year period.
The primary key to remember here, nevertheless, is that the chapter you file is not your decision, it is a decision of the court, and that decision is set by how your actual financial data is presented to them. This is important, and is one of the huge reasons that money you drop on a bankruptcy lawyer is well worth the expense. They understand the law and are able to present your finances in a manner that can direct the court to the desired decision.
But not putting the cart before the horse, one of the things you must do is get a bankruptcy evaluation with a qualified bankruptcy lawyer. They will review your finances and make recommendations as to your best options, which may not be bankruptcy, or even if it is, what you can expect if you move forward with it.
Your best choice is to get a bankruptcy evaluation, which might be the best piece of bankruptcy information and advice you will find anyplace. You cannot get to where you want to go if you don't know where you are right now. For more insights and additional information about Bankruptcy Advice as well as having the option to get a free bankruptcy evaluation from a qualified bankruptcy lawyer in your local area, please visit our web site at http://www.bankruptcy-data.com
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