Make Sure You Know the Ins and Outs of Bankruptcy Law Before You File

Bankruptcy is something that can impact both individuals and businesses. This occurs when a person or a company owes more than it can ever comfortably pay back. Filing for bankruptcy as an individual can lower your credit score and cause you problems for a number of years. Creditors are less likely to extend you a line of credit based on your past troubles. Therefore, before you file, you should meet with an attorney who will work with you in court. You must look at several factors and better understand the ins and outs of the law before filing for bankruptcy.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a type of bankruptcy that wipes the slate clean. The court will only grant you a Chapter 7 bankruptcy if you can show that you do not make enough to pay off your debts. If the court determines that you have a higher salary, the judge may decide that you only qualify for Chapter 11 bankruptcy. Once you finish the filing process, creditors cannot come after you for any money that you owe later. The court generally will not remove student loans or child support back payments from your debts. However, if you meet certain requirements, the court may remove all or a portion of your student loan debts.

Chapter 11 Bankruptcy

A Chapter 11 bankruptcy is a type of bankruptcy that lets you slowly pay down your debts. The court will look at the debts that you have, how much you make and how much you need to live. Your creditors will agree to accept a portion of what you owe in exchange for removing the debts from your credit report. For example, if you owe $3,000 to a credit card company, the company may agree to accept half or less. The court will help you set up repayment plans with each creditor.

What Can Creditors Take?

One worry that many have is what creditors can take when they file for bankruptcy. The court will look at all the assets you have and what assets can go towards paying your debts. If you can prove that you need your vehicle for work and that you cannot survive without a car, the court will often let you keep your vehicle. Courts will generally let you keep your personal assets as well, including your furniture, jewelry and clothing.

How Long Does a Bankruptcy Remain on Your Credit Report?

Financial law experts such as Wilson Neely can tell you that a bankruptcy will remain on your credit report for seven to 10 years. A Chapter 13 bankruptcy will generally remain on your credit report for a period of 10 years. This can impact your ability to obtain a loan for a new home or a car loan. A Chapter 7 bankruptcy will usually remain on your credit report for seven years. If you can pay off your debts faster, you might find that it leaves your report earlier.

Filing for bankruptcy involves help from a dependable lawyer. A good lawyer will go over your finances with you, walk you through the laws in your state and help you decide which type of bankruptcy is right for your particular situation. When you can no longer pay your debts, bankruptcy might be the best choice for your future.

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Comments

  1. Bankruptcy is the last option and one should carefully assess his/her options before opting for bankruptcy. I agree that good lawyer can help you and it is important to get a clear understanding of how credit scores work.

  2. Thank you for sharing this with us,you can help many people who has concern about bankruptcy.visit us http://goo.gl/ezrTfT
    keithlyn myer recently posted..How to improve your chances of going bankrupt in Gold CoastMy Profile

  3. Thanks for sharing such a nice Blog. Bankruptcy laws are extremely complicated. However, you need a lawyer that understands what you are going through and help you which type of bankruptcy is right for you.

  4. I am glad that I know the difference between chapter seven and chapter eleven bankruptcy methodologies. Initially, my thought was that all bankruptcy concepts were basically the same thing. It makes a lot of sense that if you can make payment towards your debt that you should do that. I agree that you deserve some consideration of help with that too. Sometimes people cannot change the fact that something bad happened to them.

  5. What is the difference between a Chapter 13 bankruptcy from the Chapter 7 and 11 bankruptcy that you outlined in your post? It’s incredible the kind of loans that are still legal these days. Some loans are nearly impossible to pay off in a timely manner, before interest rates have increased the sum beyond control.

  6. Thanks for your article about bankruptcy law and filing. Thanks for letting me know what kinds of things creditors can take if you file for bankruptcy. That would be a scary aspect when deciding to file. I’m sure it would be a good idea to hire a bankruptcy lawyer for this process. However, you mention chapter 13 bankruptcy, but don’t go into much detail about it. Could you explain more about what chapter 13 bankruptcy is and it’s legal implications?

  7. One of my good friends is about to file for bankruptcy, and he is super worried about it. That being said, I really appreciate you sharing some insight with me about things he can do to best handle this situation he’s in. Making sure he pays off most of his debt, I think is going to help a ton. I’ll be sure to show this to him right away. Thanks a ton for your help.

  8. It is a great idea to become familiar with bankruptcy law before filing. Your tip about meeting with an attorney is good, especially if you have never filed bankruptcy before. I have never done it, but I know a few people who have, and they thank the lawyers they hired a lot.

  9. Bankruptcy!! OMG!! It’s the last option for a man. I always stay careful about it and pray to save me from it. Bytheway, you share a great article with us. Though most of the people know about bankruptcy but you discuss more briefly on your article about it. Thanks for share.

  10. Filing for bankruptcy can feel like a super lonely process but with the right lawyer to guide you through all the paper work and process it doesn’t have to be.

  11. Thank you for sharing. It is good to know that bankruptcy isn’t the end of the road, and it’s so important to know a lot about it before doing so.

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Make Sure You Know the Ins and Outs of Bankruptcy Law Before You File

Bankruptcy is something that can impact both individuals and businesses. This occurs when a person or a company owes more than it can ever comfortably pay back. Filing for bankruptcy as an individual can lower your credit score and cause you problems for a number of years. Creditors are less likely to extend you a line of credit based on your past troubles. Therefore, before you file, you should meet with an attorney who will work with you in court. You must look at several factors and better understand the ins and outs of the law before filing for bankruptcy.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a type of bankruptcy that wipes the slate clean. The court will only grant you a Chapter 7 bankruptcy if you can show that you do not make enough to pay off your debts. If the court determines that you have a higher salary, the judge may decide that you only qualify for Chapter 11 bankruptcy. Once you finish the filing process, creditors cannot come after you for any money that you owe later. The court generally will not remove student loans or child support back payments from your debts. However, if you meet certain requirements, the court may remove all or a portion of your student loan debts.

Chapter 11 Bankruptcy

A Chapter 11 bankruptcy is a type of bankruptcy that lets you slowly pay down your debts. The court will look at the debts that you have, how much you make and how much you need to live. Your creditors will agree to accept a portion of what you owe in exchange for removing the debts from your credit report. For example, if you owe $3,000 to a credit card company, the company may agree to accept half or less. The court will help you set up repayment plans with each creditor.

What Can Creditors Take?

One worry that many have is what creditors can take when they file for bankruptcy. The court will look at all the assets you have and what assets can go towards paying your debts. If you can prove that you need your vehicle for work and that you cannot survive without a car, the court will often let you keep your vehicle. Courts will generally let you keep your personal assets as well, including your furniture, jewelry and clothing.

How Long Does a Bankruptcy Remain on Your Credit Report?

Financial law experts such as Wilson Neely can tell you that a bankruptcy will remain on your credit report for seven to 10 years. A Chapter 13 bankruptcy will generally remain on your credit report for a period of 10 years. This can impact your ability to obtain a loan for a new home or a car loan. A Chapter 7 bankruptcy will usually remain on your credit report for seven years. If you can pay off your debts faster, you might find that it leaves your report earlier.

Filing for bankruptcy involves help from a dependable lawyer. A good lawyer will go over your finances with you, walk you through the laws in your state and help you decide which type of bankruptcy is right for your particular situation. When you can no longer pay your debts, bankruptcy might be the best choice for your future.

Enjoy Plunged in Debt?

Pid

Subscribe to get our latest content by email.

Powered by ConvertKit

  1. Prince James says:

    Bankruptcy is the last option and one should carefully assess his/her options before opting for bankruptcy. I agree that good lawyer can help you and it is important to get a clear understanding of how credit scores work.

  2. Thank you for sharing this with us,you can help many people who has concern about bankruptcy.visit us http://goo.gl/ezrTfT

  3. Thanks for sharing such a nice Blog. Bankruptcy laws are extremely complicated. However, you need a lawyer that understands what you are going through and help you which type of bankruptcy is right for you.

  4. bryan flake says:

    I am glad that I know the difference between chapter seven and chapter eleven bankruptcy methodologies. Initially, my thought was that all bankruptcy concepts were basically the same thing. It makes a lot of sense that if you can make payment towards your debt that you should do that. I agree that you deserve some consideration of help with that too. Sometimes people cannot change the fact that something bad happened to them.

  5. What is the difference between a Chapter 13 bankruptcy from the Chapter 7 and 11 bankruptcy that you outlined in your post? It’s incredible the kind of loans that are still legal these days. Some loans are nearly impossible to pay off in a timely manner, before interest rates have increased the sum beyond control.

  6. Adam Bockler says:

    Thanks for your article about bankruptcy law and filing. Thanks for letting me know what kinds of things creditors can take if you file for bankruptcy. That would be a scary aspect when deciding to file. I’m sure it would be a good idea to hire a bankruptcy lawyer for this process. However, you mention chapter 13 bankruptcy, but don’t go into much detail about it. Could you explain more about what chapter 13 bankruptcy is and it’s legal implications?

  7. One of my good friends is about to file for bankruptcy, and he is super worried about it. That being said, I really appreciate you sharing some insight with me about things he can do to best handle this situation he’s in. Making sure he pays off most of his debt, I think is going to help a ton. I’ll be sure to show this to him right away. Thanks a ton for your help.

  8. Silas Knight says:

    It is a great idea to become familiar with bankruptcy law before filing. Your tip about meeting with an attorney is good, especially if you have never filed bankruptcy before. I have never done it, but I know a few people who have, and they thank the lawyers they hired a lot.

  9. Bankruptcy!! OMG!! It’s the last option for a man. I always stay careful about it and pray to save me from it. Bytheway, you share a great article with us. Though most of the people know about bankruptcy but you discuss more briefly on your article about it. Thanks for share.

  10. Brian says:

    Filing for bankruptcy can feel like a super lonely process but with the right lawyer to guide you through all the paper work and process it doesn’t have to be.

  11. McKenzie says:

    Thank you for sharing. It is good to know that bankruptcy isn’t the end of the road, and it’s so important to know a lot about it before doing so.

Speak Your Mind

*