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.

Refinance Your Mortgage Loan After Bankruptcy
Though it may seem impossible, refinancing your home loan after going through bankruptcy is feasible as long as you can meet certain requirements. Finding the right lender is however, a challenging task. Refinancing After Bankruptcy is Possible Ref...
Simply Artrageous files for bankruptcy
Simply Artrageous, one of the Valley's largest art stores, quietly filed bankruptcy this summer and is running a going-out-of-business sale at its locations near Scottsdale and in Mesa.
COURT: CREDIT CARD COMPANIES PUT AHEAD OF CHURCH TITHING BY CONTROVERSIAL 2005 BANKRUPTCY REFORM LAW
Blog sponsored by Bankrupt-Law.com WASHINGTON, D.C.//September 7, 2006////Thou shalt have no gods before me ... except for MasterCard, Visa and American Express. That's the way the United States Bankruptcy Court for the Northern District of New York is reluctantly interpreting the controversial U.S. bankruptcy reform law that went into effect last October. The court says those going through bankruptcy may not tithe to their church or make other charitable donations . until after they have paid off credit card companies ...
Will bankruptcy ruling limit Utah tithe-payers?
A New York federal judge has ruled that some people going through bankruptcy may not make charitable or religious contributions.
(KAM/37029) - The reason why somebody under a bankruptcy can look good on a score:
The reason why somebody under a bankruptcy can look good on a score: Individuals under a bankruptcy are in an entirely different pool of people that they're being compared against. Those who manage their credit well under bankruptcy are going to be shot to the top of that pool. However, once they leave the protective terms of their bankruptcy, they're going to be compared against the "general" pool of people, and their score is going to drop like a rock again because they have the bankruptcy against them. But if they managed their credit well under the bankruptcy, and continue to do so outside of it, their score will recover.
Loans and Bankruptcy: Jing and Jang?
Can finance coexist with a past bankruptcy? Is it possible to get a loan after going through a bankruptcy process? To answer these questions it's necessary to make clear what is to be expected after declaring bankruptcy and how its consequences will affect your life for the following years.

http://68.72.75.1/abidata/online/conference/03nybc/Goffman.html
... be pooled together and sold as going concerns, the balance to be distributed to claimants who could submit a claim to either the English High Court of the U.S. Bankruptcy Court. Id. One problem was ...

chapter 7 bankruptcy alternative Resources at The Debt Consolidation Site On...
http://www.thedebtconsoli ...ankruptcy-alternative

Bankruptcy Federal Student Loan - Resources on bankruptcy federal student loan.
... William Weld is declaring bankruptcy and going out of business amid a federal investigation into its handling of student loan money, a co-owner says. Troubled Ky. trade school may go broke (Herald ...

Yellowmoney.com
... 10/20/2005 - Keeping your house after filing bankruptcy Going the Chapter 13 bankruptcy route takes longer than Chapter 7 but you'll probably keep the roof over your head, says the Bankruptcy Adviser ...

Bankruptcy News - Bankruptcy In Brief Bankruptcy In Brief
... bankruptcy Uscourts gov Bankruptcy loans Topform Psinet Reaffirm Biographical Georgia bankruptcy Going under Chapter 7 11 13 New bankruptcy law Bankruptcy news Florida bankruptcy Bankruptcy ...

Glossary of Terms: Ne
... best alternative? Staying where you are? Going on indefinite strike? Driving the company to bankruptcy? Going to court? The BATNA functions as the yard-stick by means of which what is on offer by ...

Discover Business! | Legal Issues | Bankruptcy
Going Broke (Bankruptcy) Bankruptcy = when you owe more than you own! (Your liabilities (or debt) add up to a whole bunch more than your assets (what you own). How to know if you are in trouble: you ...

Best credit report
... About bankruptcy going public. freecredit report and freee credit report agencies. Buy agencied. Purchase absolutely is consumer is not consumr cannot be judgments, copies of and equiafax products ...

Can't afford property tax - going bankrupt
... taxes. I am going through bankruptcy. Isnít that a reason to see them reduced? Unfortunately, personal hardship, such as living on a fixed income or inability to pay as in your case, is not considered ...

Debt Problems, Bad Credit and Credit Card Debt at ChristiaNet.com
... Most people will attempt to repair debt problems before filing to avoid bankruptcy going on their credit report. Debt management and debt consolidation are popular options for those with debt ...