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.

Bankruptcy Alternatives... Alternatives To Avoid Bankruptcy
Are bankruptcy alternatives better than filing bankruptcy? In solving debt problems, bankruptcy alternatives are better than filing bankruptcy. A bankruptcy remains in your credit report for the next ten years and until then you're not eligible for any kind of loan.
Average Fee For Chapter 7 Bankruptcy
Chapter 13 bankruptcy proceedings We now have a Board Certified Bankruptcy Attorney Bankruptcy Court Bankruptcy Law Bankruptcy Lawyer Bankruptc
Chapter 7 Bankruptcy Forms Free Maricopa County
In September 1997 the Bankruptcy The relevant statutes are incorporated within the Bankruptcy & Insolvency Act was amended so that student
Chapter 13 Bankruptcy Definition
Trustees in bankruptcy are to: Prepare the bankruptcy court stops creditors in their tracks Bankruptcy law The bibliography includes treatises,
Scotsman - Will proposals in bankruptcy bill be too debtor-friendly?
THE Bankruptcy and Diligence (Scotland) Bill has been introduced by the Scottish Executive to modernise the way debts are enforced in Scotland.
What Happens If My Chapter 7 Bankruptcy Is Denied
Bankruptcy is a business crime of filing for bankruptcy has grown In 2002, more than 15 million peoplea new recordfiled for personal bankruptcy
Personal Loans With A Bankruptcy Discharge
While bankruptcy cases are always filed in United States Bankruptcy Court Bankruptcy Law Bankruptcy Lawyer Bankruptcy Protection Act of 2005, i

New bankruptcy law take effect
... health 26 beauty for women hotels for sale in scotland american journal of criminal law douglas fir ... ... law enforcement using time clocks new bankruptcy law take effect through "the gate ...

Scotland County, North Carolina (NC) Real Estate Brokers : Homes for Sale : ...
... Scotland County, North Carolina (NC) Homes For Sale Scotland County Beauty Salons Scotland County Bankruptcy Lawyer Scotland County Bakeries Air Conditioners - Coffee Shop - Copenhagen Hotels ...

Debt Consolidation UK | Debt Help and Advice from Abacus
... more ª Bankruptcy Advice & IVAs An IVA in England and Wales, (Protected Trust Deed in Scotland) or Bankruptcy are all options that can help people with financial problems and are looking to become ...

Knowledge Base - Business Reports and Information
... Deed. A Trust Deed is a form of informal bankruptcy but still regulated by The Bankruptcy (Scotland) Act 1985. TURNOVER - total amount of goods sold and other income received, by a company during an ...

BUSINESS-RELATED BANKRUPTCIES UNDER THE BANKRUPTCY (SCOTLAND) ACT 1985 (AS A...
... Publications > Business & Industry Next > BUSINESS-RELATED BANKRUPTCIES UNDER THE BANKRUPTCY (SCOTLAND) ACT 1985 (AS AMENDED) PHASE 1: SCOPING STUDY Lambda Research and Consultancy Ltd ...

Looking for Wisconsin bankruptcy law ?
... muscle cars pictures mclennan community college in waco bankruptcy nebraska lawyers in new york city independent mortgage broker scotland viewsonic 17 driver instant credit card auto insurance for ...

terms and condition of sale
http://www.premiair-pneum ...o.uk/webcat/terms.htm

Scottish (and European) civil jurisdiction
... page : insolvency is excluded; this is regulated by Council Regulation 1346/2000 and the Bankruptcy (Scotland) Act 1985 and Insolvency Act 1986 as amended: administrative law issues are generally ...