This is one of the most common bankruptcy questions. Bankruptcy was created by Congress to give good people a chance to repay or wipe out their debts through a court proceeding and get a fresh start.
The main advantage to Bankruptcy is the automatic stay. The automatic stay is put into place as soon as the bankruptcy is filed and stops all collection activity and even any contact by the creditors. It will also stop foreclosure on the debtor’s home and can provide an opportunity to catch up on payments that have been missed. It may also prevent a vehicle or other property from being repossessed. In addition, bankruptcy can stop wage garnishment and harassment by debt collectors. Bankruptcy can also provide a discharge of unsecured debts.
This is another of the most frequently asked bankruptcy questions and it is important to understand that bankruptcy will not cure all of your financial problems. It is not the right choice for everyone, so it should be understood that bankruptcy will not eliminate certain types of debts, especially those that are secured. Secured types of debt include mortgages and car loans. In addition, bankruptcy will not discharge special treatment debts such as alimony, child support, certain student loans, criminal fines and certain taxes.
It depends on the type of bankruptcy that is filed. You can file for Chapter 7 bankruptcy eight years after the date of the last time you filed. Chapter 13 bankruptcy can be filed again at any time.
Ultimately, the goal of this type of bankruptcy is to discharge your unsecured debts. In order to wipe out those debts; however, you may need to give up some non-exempt property. Exemptions will need to be applied and it is important to speak with your bankruptcy attorney ahead of time to determine exactly what property is exempt and which is non-exempt before your bankruptcy petition is filed.
Filing for bankruptcy protection sometimes can be the best way for debtors to keep their houses and deal with their creditors. One of the advantages of filing bankruptcy is the debtor’s ability to stop foreclosure without creditor acceptance through the automatic stay. In a chapter 7 this might only be a temporary solution, but will give you time to negotiate something with your creditors.
Bankruptcy is ideally designed for individuals who feel as though they are overwhelmed by debts. Chapter 7 bankruptcy is good for those individuals with large amounts of unsecured debt.
While your credit will not be completely ruined if you file for bankruptcy, it will remain on your credit report for up to ten years. If you have a regular, decent income you will typically find that you can receive credit even after filing for bankruptcy. Most people find they can still purchase an automobile after filing for bankruptcy and can then begin rebuilding their credit from there.
An automatic stay is an injunction from the court that prevents your creditors from taking any subsequent action to collect debts. The automatic stay is filed and takes effect immediately after your bankruptcy petition is filed.
It should be understood that bankruptcy petitions are public records. Normally; however, your employer will not know you have filed a petition for bankruptcy unless you owe him or her money and they are a creditor.
Many individuals who are facing the possibility of filing personal bankruptcy are not only concerned with the personal costs to their credit, finances and assets, but also wonder about the cost to file bankruptcy. It is not a free filing with any court since there are bankruptcy forms, documents and requirements that must be submitted even if an individual does all the legal work themselves. Usually, a chapter 7 bankruptcy can be filed with the court for under $300 in fees. Since the change of the bankruptcy code in 2005, debtors are also required to take a pre-bankruptcy credit counseling course and a post-bankruptcy financial management course at the cost of about $30 to $50 each.
The Internet has a wealth of information about filing bankruptcy, just like DebtFreeBankruptcyAttorney.Com does. It’s advised to hire a bankruptcy attorney. If you consider the amount of debt you’re wiping out, the cost of a bankruptcy attorney is usually quite minimal.
Getting answers to your bankruptcy questions is an excellent way to determine whether filing for bankruptcy may be the right option for you.
Getting answers to those tough bankruptcy questions needs to be thought of before you make a decision when it comes to your financial problems. Finding the answers to help you understand your situation more clearly can help you make an informed decision about filing bankruptcy. Take a minute to call or fill out the form to have a FREE NO OBLIGATION CONSULTATION with a bankruptcy attorney in your area.