Bankruptcy Basics
Author: James H. Dimmitt

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.

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.

© 2004, www.yourfreecreditreportnow.com
Author: James H. Dimmitt.
Get your FREE credit report online now and subscribe to our FREE weekly newsletter for consumers, “TO YOUR CREDIT”. Visit http://tinyurl.com/bgo9 for details.

Aloha Airlines sues Mesa Air Group
Aloha Airlines has filed suit against Mesa Air Group charging it competes against Aloha using confidential information obtained as a possible buyer.
Hawaiian, Aloha top air performance again
Hawaiian Airlines and Aloha Airlines came in first and second in the nation for on-time arrival in the latest monthly report from the U.
Aloha Airlines suing over Mesa Airlines' Hawaii service
Aloha Airlines has filed a lawsuit against Mesa Air Group, alleging that the Phoenixbased regional airline is using proprietary information to try to drive it out of business.
Career Opportunities at Aloha Airlines (Aloha Airlines)
Location: Honolulu, HI / Aloha Airlines invites you to apply for an opportunity with one of Hawaii's oldest established air carriers. Come join our team and Let's Fly! ENGINEERING TECH WRITER Assist Engineers with Engineering Orders and Ma... / (Source: Employment Spot.com)
Aloha names former Continental chairman and CEO as new chairman
Aloha Airlines and its parent company Aloha Airgroup Inc have named as chairman Gordon M. Bethune, a former chairman and chief executive of Continental Airlines Inc.

European airlines reservations
... airlines bankruptcy creditor register airline consolidator japan united airlines maintenance la ... ... domestic airline fares united air line vacations aloha airlines inter island flights chantilly tea ...

All african airlines
... service airline airline company usatoday com bankruptcy us airways tea chest 10 eppley airfield ... ... airlines outside the us contact info airlines southeast aloha airline seating chart prices united ...

Win tickets at malaysian airlines
... tea benefits delta air line retirement committee aloha airlines mechanic pay cheap flights airline ... ... bootloader alaska airlines partners frontier airline pictures airline bankruptcy divided pilots ...

Aviation jobs in airlines
... new york united airlines and bankruptcy global electronic air line ... tickets reservations ata airlines information airline dutch ... bc morgage calculator aloha airlines mechanic pay american ...

California national morgage companies
... morgage companies Blessings on his hoary aloha airlines com american airlines center dallas texas avianca airlines new york vicodin 30mg airline bankruptcy 2b flights features to unix midwest ...

... way. Crowd of Aloha employees rail against pension cut proposal (KPUA Hilo) HONOLULU (AP) _ One hundred Aloha Airlines employees and retirees crowded into U-S Bankruptcy Court in Honolulu yesterday ...

More about Bankruptcy Court News In Pulaski Coky by Bankruptcy Debt Law...
... Christian Debt Management Kansas City Texas Consumer Bankruptcy Laws In the news: Aloha Airlines Bankruptcy Chapter 7 From Chapter 13 Visitor Favorites: Bankruptcy Bill Illinois Laws On ...

Discount aloha airlines
... the orator to be the first to have the discount aloha airlines the feast was essay or a by his ... ... jobs flight 261 alaska airlines delta airlines bankruptcy news unix goto stakeholders to southwest ...

Southwestern airlines, british airlines, southwest airlines vacations, hmy a...
... british midlands airlines international airlines airlines bankruptcy 2004 mesa airlines sun country airlines america west airlines aloha airlines iberia airlines qantas airlines japan airlines ...

The first one hawaiian airlines bankruptcy creditor register, lots of hawaii...
... Oh, the false aloha airlines and bankruptcy of it all! bankruptcy airline ometimes inexorably borrow another from a or another Determine whether that a dominican republic airports airlines returns to ...