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How To's Broke?
Bankrupt?
With the availability
of credit and low-cost loans now followed by recession
and skyrocketing cost of living expenses consumers in increasing
numbers are getting in over their heads financially.
Corporate
downsizing and cost cutting often results in workers settliing
for lower salaries or filing for unemployment
insurance. Higher out of pocket costs, or unexpected job loss
can turn a balanced household budget into a disaster plan.
In short,
bankruptcy is not normally a situation anyone can plan for.
It happens
gradually as the interest on borrowed money builds, and payments
get harder and harder to make. Bill collectors begin to call.
At first they are willing to work with you to help you catch up,
but after a while the calls become less friendly and more threatening.
How
to file for bankruptcy No
matter how carefully you budget and how good you intentions are, if expenses are
larger than what you make, you won't be able to pay everyone. It may be time for
you to consider contacting a bankruptcy lawyer to find out if you can clear up
your debts and make a new start. Following
the passage of new US bankruptcy laws in 2005, bankruptcy has become more difficult
though still possible for many American families this despite the extra
paperwork, higher fees, and mandatory credit counseling before you file.
A bankruptcy
lawyer can work with you to work out settlements or set up payments plans that
are realistic and may save you from actually having to file for bankruptcy. Your
lawyer can explain the different types of bankruptcy and discuss options with
you that you may not know about. Personal
Bankruptcy - Chapter 7, Chapter 13
Chapter
7
- Debtors file Chapter 7 bankruptcy under rules that may qualify
them under the "Means Test", an equation that figures
your income according to the state median. If qualified, they
must turn over all non-exempt property to a court appointed trustee.
Proceeds from the sale are used to pay off all unsecured debts
and, under law, your wages can no longer be garnished and creditors
are ordered to stop collection proceedings.
Chapter
13 - An alternative to Chapter 7, this program allows debtors to set up an
installment plan to repay their debts in full, or in part, over time - usually
anywhere from three to five years. All disposable income must be turned over to
a court appointed trustee who pays off your creditors during the period specified. Bankruptcy pros
and cons
Filing for
bankruptcy is not something that should be done lightly. Consider
that recovering
your good credit rating may take many months or sometmes years,
resulting in problems when you try to buy a car or home, or even
rent an apartment or apply for a job.
If
you can avoid filing for bankruptcy and get your credit score back up without
the help of the courts you will be better off. The problem is that if you can't
pay the bills, you credit will be ruined anyway. Claiming bankruptcy may be the
only way for some consumers to wipe out credit debts that will only get higher
with penalties and interest. More
about filing for bankruptcy around the Web:
If you're
one of growing number of consumers struggling to pay off debt,
stop avoiding the harassing calls from creditors and get expert
advice how to file for bankruptcy, settle your debts, and otherwise
get your personal finances back in order...
Bankruptcy LawTrove
- The motherlode, with links to top spots on the Internet for more on bankruptcy
statutes, regulations, law and government resources, products and services, an
online bookstore, extensive FAQ,
and related resources.
United
States Bankruptcy Courts - Official info on basic bankruptcy filings with
related statistics, facts on bankruptcy claim abuse, FAQ, and complete do-it-yourself
set of Bankruptcy Forms
in downloadable PDF format. Debt
& Bankruptcy - Legal Information - Nolo - Detailed explanations on
how to avoid overspending, the pitfalls of loans and credit cards with more on
student loans, debt collection, Chapter 7 and Chapter 13 bankruptcy and credit
repair. ABI
American Bankruptcy Institute - A premier site for the latest news and
feature stories on the subject including the latest legislation, statistics, FAQ,
information on how to file, bankruptcy lawyer search, related publications and
membership info. LII:
Law about...Bankruptcy - A clear concise overview together with pages
of links to legislation information, federal and state statutes, and choice resources
for more information. Bankruptcy
Law - Lawyers, Attorneys & Free Legal Information - Consumer guide
from freeadvice.com with do it yourself info on Chapter 7, 11, 12 and 13 bankruptcy
fillings, facts on debt discharge, retirement fund protection, and related info.
Personal
Bankruptcy Chapter 7 & 13 File Bankruptcy Courts - A short history
beginning in the Middle Ages when indebted tradesmen had their benches broken
("banca rotta" - bankruptcy) and were thrown in prison - with more on
modern bankruptcy's much milder effects, a listing of bankruptcy courts in all
50 U.S. states, and a glossary of related terms. InterNet
Bankruptcy Library - A top destination for corporate bankruptcy law featuring
news archives, local bankruptcy regulations, suggested reading, related links.
Free
Legal Services
- Links to free or low-fee legal services & advice offered
by legal aid societies, law societies or associations in all 50
U.S. states.
The
information provided on these pages is intended as reference
only and does not constitute professional legal advice.
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