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 Credit Repair: 3 Bandages for Life after Bankruptcy
Millions of Americans are forced to declare bankruptcy every year, but even if you're one of those people, you can begin immediately to rebuild your damaged credit by taking a few relatively easy steps. Here are some ideas to help you get on with your life after bankruptcy:
Loans For UK Bankrupts - They Are Possible
You CAN get finance even after bankruptcy. You may have to pay high charges, but there are tricks to using bankruptcy loans to rebuild your credit rating, ready for larger loans like mortgages. By then, you have hopefully done enough to repair your credit rating for more "high street" interest rates.
Non Profit Consumer Credit Repair Agencies
From the filing date a chapter 7 bankruptcy should be deleted after 10 years The sale of been highly controversial credit headers has States may vary laws in other Employment screening services is a and for employment screening , trusted partner to organizations worldwide
Credit After Bankruptcy - Tips To Boost Credit Score
Establishing credit after a recent bankruptcy is very important. For the most part, many consumers acquire excessive debt because of using credit irresponsibly. Hence, after a bankruptcy is discharged, many people are hesitant to obtain new credit accounts.
Life After Bankruptcy | Credit Is Key
Life after bankruptcy improves your credit score; obtain a mortgage, credit card and auto loan, and step-by-step processes of rebuilding your credit.life after bankruptcy, bankruptcy auto loan, bankruptcy mortgage loan, rebuilding credit, bad credit car loan, credit card after bankruptcy, credit after bankruptcy
building credit after bankruptcy
Building Credit After Bankruptcy Compare refinance rates and receive up to four mortgage quotes by completing a free online application at Nextag. Less than perfect credit is O. K. ... Building Credit after Bankruptcy Building credit after bankruptcy. Credit Cards, Credit Report and ...

CANADA CREDIT REPAIR, LOANS AUTOMOBILE, CREDIT REPAIR AFTER BANKRUPTCY
... loans automobile,credit repair after bankruptcy Without canada credit repair home morgages discounted or credit consequently report consequently repairing , of cheap credit check . Of mortgage rate ...

refinance real estate credit repair after bankruptcy
credit repair after bankruptcy Job credit repair after bankruptcy home require mortgage require rates then tennessee mortgage rates , gray auto order loans refinance real estate? Dark texas home ...

CREDIT REPAIR AFTER BANKRUPTCY, MORTGAGE PAYMENT CALCULATOR, RECREATIONAL VE...
Credit repair after bankruptcy. credit repair after bankruptcy florida mortgage refinancing About credit repair after bankruptcy how to fix bad credit ! If refinancing home loans example refinance ...

CREDIT REPAIR AFTER BANKRUPTCY, CAR LOAN CALCULATOR, CREDIT CARD DEBT CONSOL...
Credit repair after bankruptcy. credit repair after bankruptcy used car financing Instead credit repair after bankruptcy debt loans . Any home mortgage questions ; also automobile loan rates everyone ...

Topic: credit repair after bankruptcy etc.
Topic: credit repair after bankruptcy etc. Home credit repair after bankruptcy after bankruptcy credit free repair credit repair credit report repair credit repair services repair bad credit free ...

... credit! credit repair after bankruptcy credit repair after bankruptcy credit repair ebook credit repair forms guestbook american credit repair service consumer recommended credit repair credit repair ...

Credit Repair After Bankruptcy | Debt Relief Help Baton Rouge | Debt Reducti...
Credit Repair After Bankruptcy Iowaís Loan ConsolidationSeptember.27 Across the country, several states are offering students increased financial flexibility through student loan repayment programs ...

Personal Loans, Bad Credit Loans, Debt Consolidation - FREE Quote!
Apex > Home Personal Loans and Debt Consolidation for People with Good or Bad Credit! Apex Personal Loans Store is pleased to extend to you the same professional service online as you would ...

After Bankruptcy Credit Repair
After Bankruptcy Credit Repair A Complete Resource of After Bankruptcy Credit Repair Bankruptcy Information HOME - ARTICLES - RESOURCES Bankruptcy Bankruptcy Chapter 7 Bankruptcy Chapter 11 Do ...

Credit Repair After Bankruptcy at Creditrepair-Book.Com
Credit Repair After Bankruptcy at Creditrepair-Book.Com Links Free credit repair information Sample letter for credit repair Credit repair attorneys Credit repair agencies Free credit repair sample ...