Bankruptcy Basics
According to the American Bankruptcy Institute “household debt is at a record high relative to disposable income.” The Administrative Office of the U.S. Courts reported that the number of filings for the year ended March 31, 2003 “exceeded 1.6 million for the first time in any 12 month period,” a 15.1 percent increase from the previous year.
There are two basic types of personal bankruptcy: Chapter 7 and Chapter 13. Chapter 7 Bankruptcy and Chapter 13 are legal proceedings that are available to a person to cope with a financial crisis. Personal bankruptcy must be filed in a federal bankruptcy court. You will have to pay about $160.00 in court fees. Attorney fees are additional.
Chapter 7 bankruptcy involves the liquidation of all your assets that are not exempt from the bankruptcy settlement. Exempt property may include automobiles, some household furnishings, and property needed for work-related use; for example if you were a mechanic the tools you use to perform your work would be exempt from the bankruptcy settlement. Exemption amounts vary from state to state.
Under this plan the court appoints a trustee to handle the liquidation of your non-exempt property. The trustee can sell or turn over your property to your creditors. The court discharges your debts and you are now debt-free. You are allowed by law to file a Chapter 7 bankruptcy once every six years.
A Chapter 13 bankruptcy allows you to keep property, like a mortgaged house (provided there are no liens on it) or a car, as long as you have a steady income. A Chapter 13 bankruptcy is a court-ordered and approved repayment plan to your creditors. This plan allows you to use your future income to pay back your debts over a 3-to-5 year period without surrendering any property. Once you complete payments under the plan, your debts are discharged by the court.
Both types of bankruptcy may get rid of unsecured debts and stop foreclosures, repossessions, garnishments, utility shut-offs, and debt collection activities. Both provide exemptions that allow people to keep certain assets, although exemption amounts vary. A bankruptcy will not erase most child support, alimony, fines, taxes and some types of student loans.
Most financial experts agree that a bankruptcy should always be the last resort used for managing your debts. Bankruptcy has long lasting results. A bankruptcy remains on your credit report for a period of 10 years, making it more difficult to obtain credit in the future. You should also know that although your bankruptcy disappears from your credit report after 10 years, you may still be asked by future employers or lenders if you have “ever” filed for bankruptcy
Disclaimer: The information contained in this article is for informational purposes only. The author is not herein engaged in rendering legal, insolvency, tax, or other professional advice and services.
© 2003, Your Free Credit Report Now
Author: James H. Dimmitt.
Get your FREE credit report online now and subscribe to our FREE weekly newsletter “TO YOUR CREDIT”.
Visit http://www.yourfreecreditreportnow.com for more information.
Previous Articles Highlighter:
Drivers Of SUVs Saving Big Money With Diesel Engines By ARA Content (1)
According to the Department of Energy, if diesels reach even a percent of their potential penetration by 2020, the country could conserve as much as 700,000 barrels of fuel per day -- half the energy used daily by the state of California.
The Best Things In Life Are Rarely Things (2)
His wife and children mean the most to him inside. He works out every day, watches his diet, and here’s the real kicker, he doesn’t care what other people think of him.
Multiple Channels Multiple Times (3)
That means repeating the message many times, and sending it through as many different channels as possible.For example, when one of my clients changed its benefits package to offer more choices, it used this strategy.
How To Change Your Car39s Motor Oil By Stephen Bucaro (4)
You don't have to wait in line at the service garage or quick oil change shop. For ten bucks you can get the best oil and a brand new oil filter.
What 8 (5)
Well, not necessarily. Eighty percent of small business owners, medical practitioners, and small hospitals are completely unaware of a resource Fortune 500 companies have used for decades: accounts receivable funding.
What Is A Secured Loan (6)
Secured loans are suitable for when you are trying to raise a large amount; are having difficulty getting an unsecured loan; or, have a poor credit history. Lenders can be more flexible when it comes to secured loans, making a secured loan possible when you may have been turned down for an unsecured loan.
Where Is Our Largest Technological Plan (7)
e-Management 19. TeleCommuter (home work)20. All IT processing and storage through distant data centers 21. An estimated 1,000,000 new companiesand more e-Xs that you can imagine. In every moment that I thought of this plan, I lamented two things: first, to be 73-years old and probably cannot accompanies him in the next 30 years, and second, the dozens of technological ideas that I could suggest.And then the September 11 happened, the main national priority moved to security matters, the investments - government and privates - moved to another directions and the people worried more about the moment than with the future.But in order to survive, without the smallest doubt we need this technological plan in order to maintain the world technological hegemony of the United States in the next 30-40 years and as a result, our world economic hegemony.
Never Get Lost Again - Map Reading Is A Thing Of The Past By Niall Kennedy (8)
You don't have any more with a Magellan RoadMate.I work in the film industry, scouting locations for possible shooting. These can be in built-up urban areas and remote locations all over California.
BOOK REVIEW Performance Of Financial Institutions Efficiency Innovation Regulation By Patrick T Harker And Stavros A Zenios (9)
Since 1991 he has been based in the island of Cyprus. Andy was a financial correspondent for eight years at the Cyprus Financial Mirror where he wrote articles on business and accounting related issues to a non-technical audience.He is the author of eBooks: How to write and Publish Your Own With a Shoestring Budget http://www.budgetebook.comCBMallakgeorge@cytanet.com.cy
Virtual Assistance Higher Productivity (10)
However, some of the projects may still remain unattended to. Bringing in part-time or temporary employees is one way to get these assignments done, but only feasible if there is a steady flow of work, enough to accommodate an extra staff member and the additional wage.
The Art Of Being Specific Encourages Focus (11)
My ideas were overwhelming and deciding where to start was difficult.Like any new business with a limited budget I needed to start small, be specific, and be focused. I had to start brainstorming and writing down ideas.
5 Things You Must Do To Fail In Business (12)
It is impossible to grow your business without a commitment to learning and improving your skills. 4 If you think you have to be the cheapest to be the successful, you might be surprised.
Why And How To Work With A Consultant (13)
Conversely, if both parties have communicated well, and been realistic in their objectives, you will often find that a good consultant will make an extra effort on something, just to make sure you are happy with their services.If something does go wrong with the project and relations begin to be strained, agree to take a break from the work for a couple of days or more.
Tips For FirstTime Homebuyers (14)
While your down payment can be as low as five per cent, the lower your down payment, the larger the principal amount that you have to borrow and that means a larger overall interest cost.
9 Things You Must Do To Maximize Your Chances Of Obtaining A Small Business Loan (15)
To get approval for your small business loan application, you must be able to meet the lending criteria set down. Some organisations are more risk averse than others, and will therefore have more stringent criteria.
High Interest Rate Auto Loans (16)
Remember to always seek out good advice from those you trust, and never turn your back on your own common sense. Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included.
Are You Set Up For Success (17)
Of course it does. Have you done this? If you ask a lot of people, the answer you get may vary from “I know what I want to accomplish” to “Do I really need to set goals?
Show Your Prospects How Much Enthusiasm You Have For Your Product And Business (18)
Give your prospects extra confidence so they will order. Use endorsements, testimonials, a strong guarantee or warranty, etc.6. Build your opt-in list by allowing your visitors to sign up for a free e-zine, ebooks, software, contests, sweepstakes, etc.7.
Internet Provides Wealth Of Information On Car Maintenance By ARA Content (19)
"With the information they gather online, car owners gain a better understanding of what they need and why, before they even begin comparison shopping," says Bill White, president of Sears Automotive.
Business Partners Marital Partners Will The Marriage Survive Part 2 (20)
Make up a schedule of when you will deal with them. Some individuals find getting chores done before the start of the work day is best. At the end of the day, close your office door and then deal with the remaining household items that need to be handled.
Newer Articles Highlighter:
Retreads The Highest And Best Use For A Worn Tire By ARA Content (1)
(ARA) - Although they may look round and black, retreaded tires are one of the greenest, environmentally friendly products a fleet can buy. Retreaded tires have one of the highest post-consumer contents of all recycled products, and are responsible for saving North Americans more than 400 million gallons of oil every year.
South Beach Diet Effects On Sales (2)
In the top of preferences, poultry comes first, followed by beef and pork. The sales of beef also boasted significantly and the variety of the products offered for sale increased accordingly.Fish industry is certainly favored by the South Beach Diet, but apparently seafood is friendly to all diets.Another boost in sales was registered by the producers of “Laughing Cow” cheese, warmly recommended during the diet.
After The Sale By Kevin Schappell (3)
Wheels, bug guards, window visors and more are all available at part houses like CarParts.comKevin Schappell maintains http://www.carbuyersclub.com where he gives advice on car maintenance, buying, selling, insurance, and financing.
Smart Choices How To Hire The Best (4)
Today’s economy is exploding with talent, allowing you to be selective about the staff you hire. Yet, the crucial step to filling a position is finding the right talent for your organization - someone that has the skills for the job, easily blends with the culture, interacts well with the team and believes in your mission.In his best seller, Good to Great, Jim Collins writes, "In the good-to-great transformation, people are not your most important asset.
Your Administration TeamLook After Them (5)
In fact she works twice as hard. This is a totally different situation to Jenny's previous employer. Jenny had been working for another organisation where her boss was 'married to the job'.
Writing One Or Two Line Ads (6)
You can only win trying this out! I promise I will not embarrass any one! If I have any suggestions, I will email you personally. Deal? Jane Fulton is Owner & Webmistress of http://janes-place.com 'Home For Newbies & Beginning Marketers'.
Are Mortgages A Risky Business (7)
A great number of people went to the bank to withdraw their savings. Those that represented the first few % of the total deposit had no problem. When the percentage rose to 6%, which in this case was the amount decided by “the owner of the box”, the rumour became fact in that there was no cash to pay out to depositors.
The 8 Biggest Mistakes When Designing Portfolios And How To Avoid Them (8)
To properly diversify, you should hold sufficient quantities of not-too-similar securities with comparable risk and return trade-off profiles. Consider broad-based index funds for a quick and easy solution.7. MISJUDGING THE IMPACT TAXES HAVE ON NET RETURN.
New Energy Bill Reducing Our Dependence On Foreign Oil (9)
Growing transportation requirements combined with declining domestic oil production have led to burgeoning oil imports. Rising oil prices are having an adverse impact on the U.S. economy as evident from recent economic data and stock market performance.
Your Worst Enemy To Successful Investing The Media (10)
I research funds for stability and reliability as well as current performance. Then, when our trend indicator signals a Buy, we select our mutual funds based on momentum figures for various time periods to arrive at the most promising fund(s) to use for this cycle.
Networking Tips Getting An 8 (11)
To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site?
Workplace Fitness A Gym Full Of Useful Advice For Continual Learning (12)
There are two kinds of barriers; those imposed by others and those imposed by ourselves. The latter are the most restrictive. I finally took a spinning class. This class uses a stationery bike that can be adjusted to tighten or loosen the gears.
Business After The Iraqi War (13)
Even the help and expertise of Federal Reserve Chairman Alan Greenspan and several notable Nobel Prize winning economists in the President’s Council of Economic Advisers, wasn’t enough to revive the economy.
18 Tips For Saving Money On Gasoline By Fisher Swanson (14)
Check you owners manual or consult a mechanic. I have had many tell me that the more expensive gas is a waste of money. 14. Revving the engine needlessly wastes gas.
Ten Tips To Get Started Writing Your Book (15)
Dear over-50 reader, "I'm writing Passion At Any Age to help you live life full throttle--with more abundance, joy, and meaning." 5. Write your reasons for writing this book.
Your Organization Is Only As Good As Your People (16)
On the other hand, people will be loyal to an organization when they feel respect and friendship, even if the pay is low.Render Unto CaesarOf course, the primary focus of every group must be on fulling the purpose of the organization.
You Deserve To Retire Early (17)
Do not get me wrong. You may enjoy doing what you do. If you do not have to worry about making a living out of this, could you do better, on your own terms?
The Benefits Of Catalog Sales For Your Business (18)
The only thing worst than having a product no one wants to buy, is having one that so many people want you can't keep up with the deluge of orders.
4 Customer Service Mistakes Companies Should Avoid Making (19)
Don't you just love it when you call a company and they place you on hold, leaving you to listen to their latest on-hold, recorded sales pitch, over and over again.
What Is An Artist’s Statement How Often Should It Be Updated (20)
Writing a one-page statement would be sufficient in getting your statement across to your audience, but if it runs to a page two, that’s fine. Clearly, it shows your audience that you are vividly and precisely getting your thoughts across.Your artist’s statement should be updated as your career inspires new direction and when there are profound events that have captured new inspirations in your creative vision.