The purpose of bankruptcy is to give a person, or business, a fresh start or a reasonable way to pay back existing debt. If your bankruptcy is not filed accurately, or completely, you may not get your fresh start or reasonable plan to repay existing debt. Dismissals and Other Consequences of Errors One reason it…
The United States Bankruptcy Code permits individuals to file for bankruptcy in certain circumstances. The Bankruptcy Code has many provisions and many avenues under which a person or business entity may file a for bankruptcy. Chapters 7, 11, and 13 are the most common. Chapter 12 is probably next in line but is far behind…
Before taking a look at the timing of discharge, let us first take a look at the basic concepts behind discharge. Discharge of debts through bankruptcy is essentially the elimination of debts. If a bankruptcy court discharges debts, it is granting the debtor permission to never repay these debts and telling the creditors they may…
The Creation of Bankruptcy Article I, Section 8, of the United States Constitution authorizes Congress to enact “uniform Laws on the subject of Bankruptcies.” Under this grant of authority, Congress enacted the “Bankruptcy Code” in 1978. The Bankruptcy Code, which is codified as title 11 of the United States Code, has been amended several times…
A discharge of bankruptcy debts is the elimination of debts. The “debtor” is the person or entity owing a debt. The “creditor” is the person or entity to whom the debt is owed. Dischargeable and Nondischargeable Debts Only certain debts are dischargeable, or may be eliminated. Tax debt, student loans, and court ordered child support…
Bankruptcy is the process through which an individual or business has the opportunity to have debts eliminated, or discharged, or the process through which an individual or business has the opportunity to pay back existing debts over a set number of years. Who May File for Bankruptcy? Not everyone is permitted to file for bankruptcy….
You will see and hear many terms while investigating whether to file bankruptcy. You will also see and hear these terms repeatedly if you choose to file for bankruptcy. You will hear them from your attorney, see them in the documents you file, and hear them from both the court and from creditors. A simple…
The bankruptcy court system uses many terms in the course of its proceedings that may not be commonly understood. Many people will have some idea of the meaning of the terms without having complete understanding. The Importance of Understanding Bankruptcy Terminology If you are filing for bankruptcy, it is important to understand each term so…
If you are filing for chapter 7 bankruptcy, you may already know there you must gather extensive financial information about yourself and your debts before filing the bankruptcy petition. Either you or your attorney will review your debt and your assets to determine what debt is dischargeable in bankruptcy and what assets are protected from…
Bankruptcy refers to a legal proceeding through which individuals and companies may petition a court to extinguish debts or to reorganize or restructure debts. You may have heard of Chapter 7 bankruptcy, Chapter 11 bankruptcy, or Chapter 13, bankruptcy. “Chapter” refers to the location of the bankruptcy provisions in the Bankruptcy Code. There are other,…
One of the first realizations that a person can’t dig themselves out of a financial hole comes with the repeated calls from creditors and collection agencies. While this may prompt realization of the drastic need for action, it can also increase stress, it may be bothersome, and it may interfere with the other duties a…
Most people who ultimately file for bankruptcy, first spend a lot of time trying to find another way. A person will cut out unnecessary expenses, review and re-review income and debt, and finally come to the conclusion that there is no way to get back on top and current on all bills. Usually, by this…
Is your debt consuming you? Do you believe you will never be able to get on top of it? Do you get further and further behind every day? You are not alone. In 2009 there were nearly one and a half million bankruptcy filings across the United States. There were 1,473,675 to be precise. Over…
For some people, their debt just keeps multiplying and there is little realistic chance of getting out from under it other than through bankruptcy. Many people hate this idea. Some people look down on it. People need to realize, however, sometimes bankruptcy is the responsible thing to do for oneself, one’s family, and one’s future…
In today’s world bankruptcies are much more common than they used to be. One factor is, of course, the drop in the economy. Some people hesitate to explore the possibility of bankruptcy because they are embarrassed. There is no need to feel ashamed if you are considering bankruptcy. You are not alone. You are by…
Bankruptcies have become more and more common in today’s economy. There are many types of bankruptcies. You may have heard of Chapter 7 bankruptcy, Chapter 11 bankruptcy, or Chapter 13 bankruptcy. Those are probably the most common types. Most people who have heard of these types of bankruptcy, however, have no idea what they mean…
There isn’t just one type of bankruptcy that fits for all people and all businesses. Many people have heard of Chapter 7, Chapter 11, and Chapter 13 bankruptcies. There are others as well. The type of bankruptcy filing that best suits one person and his or her circumstances will not always be the same one…
There are many different types of bankruptcies. Often, each type is referred to by the name of the Chapter in which it is contained in the United States Bankruptcy Code. You’ve probably heard of Chapter 7, Chapter 11, and maybe Chapter 13 bankruptcies. You probably haven’t heard much, if anything, about a Chapter 9 bankruptcy,…
Bankruptcy is intended to help good people out of bad situations. It can be frightening, daunting, and sometimes shameful, but it shouldn’t be. We are living in a time when the economy has recently bottomed out leaving many, many people faced with multiple creditors, endless collection calls, and no way to repay loans. If you…
Ordinary people file for bankruptcy. Let’s face it, the economy is not currently strong and it has been a severe lows in the recent past.This has caused many, many people to find themselves swamped in debts that will consume them before they are ever able to repay all the debt. This is the purpose of…
Are creditors calling relentlessly? Do your monthly bills for past debt far exceed your monthly ability to pay? Do you lay awake at night trying to figure out what to do? Are you among the many individuals considering bankruptcy in this economy? Who Files for Bankruptcy? If you are considering bankruptcy, you have debts you…
No one hopes to file bankruptcy. No one enjoys it. Filing for bankruptcy is a very personal decision. But filing for bankruptcy is not the end of the world. Bankruptcy laws are intended to help people, not harm them. There are, of course, consequences to filing bankruptcy, but there are also many benefits. If the…