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.

Chapter 13 Bankruptcy Definition
Trustees in bankruptcy are to: Prepare the bankruptcy court stops creditors in their tracks Bankruptcy law The bibliography includes treatises,
Effective Date Of New Bankruptcy Law
Under bankruptcy reform (see above) student loans in bankruptcy are to: Prepare Bankruptcy Chapters There are six types of personal bankruptcy
Hurricane Katrina Likely to Raise Bankruptcy Filings for Years to Come
University of Illinois law professor Robert Lawless recently published an extensive report predicting that we will see the impact of Hurricane Katrina reflected in bankruptcy filing statistics for up to three years. The study analyzed all 18 hurricanes and tropical...
Chapter 7 Bankruptcy Forms Free Maricopa County
Chapter 12 or Chapter 13 of the 2005 Bankruptcy Bankruptcy Alternative Bankruptcy Attorney Bankruptcy Court Bankruptcy Law Debtor/Creditor Popu
Personal Loans With A Bankruptcy Discharge
Bankruptcy in Canada, and [[]], and [[]], and Student Loans in Bankruptcy Prior to 1997, student loans were discharged in a bankruptcy proceedi

The Next Left: The <s>Bankruptcy</s> Katrina Victims Abuse Act
... when pressured by the White House Refried corruption The Bankruptcy Katrina Victims Abuse Act A Times article about the new Republican-backed bankruptcy law and its threat to Katrina's victims ...

Press Briefing by Scott McClellan
... Closing of Baltimore tunnels Saddam Hussein trial Reference B Middle East/President Abbas Bankruptcy law/Katrina victims President's agenda/polls Response to a question from the briefing Reference B 1 ...

LLRX - In the Wake of Katrina ñ Where to Find Answers about Courts, Lawyers
... October 15, 2005 In the path of Hurricane Katrina, law offices were lost, courthouses were ... ... legislation allowing the federal district and bankruptcy courts in New Orleans to relocate their ...

American Bankruptcy Institute ... 1647: Hurricane Katrina!
... 1647: Hurricane Katrina Bankruptcy Relief and Community Protection Act of 2005, to amend BAPCPA to provide relief to ... © 2005 American Bankrup . QuotesCompete.com - As Seen on T.V.. Banks and ...

SqlSpace - No Bankruptcy Relief for Katrina Victims
... Log in Encryption ToolBar Games: Bank Play ChanceAce Lottery Black Jack Asteroids No Bankruptcy Relief for Katrina Victims - Replies: 0 | Views: 41 Recent Topics Popular Topics (by reply) Popular ...

Bankruptcy law a problem for Katrina victims - Personal Finance - MSNBC.com
... com Ä¢ Shopping Sponsors: MSNBC Home ¬ª Business ¬ª Personal Finance Sponsored by¬ Bankruptcy law a problem for Katrina victims Restrictions aimed at curbing abuse, but those hit by disaster could ...

Hurricanes Katrina and Rita - About LexisNexis
... www.lexisnexis.com/news/ to get the latest Katrina and Rita news from over 4,000 U.S. and ... ... small law firms Paralegals Practice areas: -- Bankruptcy Law -- Corporate & Business Law -- Criminal ...

Money - Families.com
... 26 PM by peaboy1966 0 46 Free Samples peaboy1966 09-11-2005 06:06 PM by peaboy1966 0 47 Bankruptcy for Katrina victims breharb25 09-09-2005 12:24 PM by babydawn 1 97 FICO Score Becky 09-06-2005 08:22 ...

Latest Business articles- Softpedia
... m ... [read more >>] Date: 15 September 2005, 10:54 Both Delta and Northwest Airlines Face Bankruptcy Katrina Hurricane seems to be the final drop in an ocean of financial loss for both airlines ...