Bankruptcy! That word sends chills up the spine. If you’re facing the panorama of bankruptcy or in the middle of it right now, you know it’s a living nightmare. It can devastate your job, destroy your marriage and steal your peace of mind. Most credit specialists agree that the worst possible credit entry on your credit statement is a Bankruptcy! Whether you have filed a Chapter 13 or Chapter 7, it demonstrates a complete failure in managing your credit, Regardless of why you filed.
What is Bankruptcy? Bankruptcy is a legally declared incapability or mutilation of ability of an individual or organization to pay its creditors “Bankruptcy” refers to a federal code of laws and set of rules which is designed to Help a debtor, whether an individual or a business. Bankruptcy permits the debtor to work out a plan to repay some or all of the debt, or to have some of the debt forgiven.
Who can file a bankruptcy? Generally, anyone can file for bankruptcy. If you simply cannot afford to pay your bills, you can be eligible for bankruptcy, either Chapter 7 or Chapter 13. If you have filed in the past, it could influence the options that may be available to you. For instance, if you have previously filed for a Chapter 7 bankruptcy, you cannot file another Chapter 7 for eight years. You will not be allowed to file for bankruptcy to defraud creditors.
There are documentation requirements. You will need to produce personal tax returns, proof of income for six months prior to filing, and an official document showing that you took a mandatory credit counseling class.
New York Bankruptcy Lawyer – Call Stefan Coleman, a New York bankruptcy attorney in New York.
What do I need to begin the bankruptcy process? Accumulate a list of past and present debts as well as a schedule, or list, or assets and liabilities. You’ll also need a statement of financial affairs to file with the bankruptcy court in addition to you filing fee.
Different “chapters” in bankruptcy? There are different chapters of the Bankruptcy Codes under which an individual can file, and they are called: Chapter 7, Chapter 11, Chapter 13, Chapter 9 and Chapter 12
What chapter is right for me? You have a choice in deciding which chapter of the Bankruptcy Code will best for your needs. The decision whether to file a bankruptcy, and under which chapter to file depends on the particular situation of the debtor. In general, chapter 7 is appropriate when the debtor has insufficient income to pay all or most of his/her debts. Otherwise, if the debtor has an income or property and can afford to pay all or a substantial portion of his/her debts, chapter 11, 12, or 13 may be appropriate depending on whether the debtor is an individual, partnership, business, or family farmer. These are only a few of the factors to consider, however. There is no way that a simple leaflet such as this can spell out all the different things to be measured.
Will bankruptcy stop garnishment or lawsuits? The filing of a Chapter 7 or Chapter 13 bankruptcy will stop a creditor from continuing almost all common legal actions against the defaulter the most common types of civil legal actions or lawsuits are those brought on behalf of credit card lenders, hospitals, clinics, and mortgage companies.
Will filing for bankruptcy stop harassing phone calls? Yes. Filing for bankruptcy will prohibit any type of collection effort regarding a civil debt.
Will filing bankruptcy stop foreclosure? In most instances, filing for bankruptcy will stop foreclosure on mortgages. Also, a Chapter 13 Repayment Plan can offer a defaulter a means of catching up on delinquent payments and allows a defaulter to keep ownership of a home
How long does a bankruptcy stay on my record? Bankruptcies remain on credit reports anywhere from seven up to 10 years.
Although there may be extreme cases where bankruptcy is the only way out, most filings could be avoided by shutting out the voices of persuasion which belong to those who are going to profit from your losses.
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bankruptcy law attorney – Get a free bankruptcy case evaluation right now.