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Things you should know before you file bankruptcy |
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| If you are thinking about filing bankruptcy, there are a few things you need to know beforehand. Your credit will go down the tubes for the next seven to ten years. If you are seriously thinking about filing though, your credit might already be on the down slide. You will need to contact a lawyer that specializes in bankruptcy law. You will also need to be able to prove with financial statements that you cannot pay your debts. You will need to list all your assets and obligations. Proof of income is required. A list of all your creditors and their addresses and the amount owed is also required. The amount of debt that you have, and the amount of income you earn will determine which chapter you will be able to file. Chapter 7 will allow you to get rid of most of your debt. You will most likely be able to keep your home and vehicle and any debt that you want to reaffirm. Chapter 13 means that you have sufficient income to pay back your creditors at a reduced rate which is determined by the bankruptcy court. This usually happens over a period of five years. You will have to make an appearance in bankruptcy court with your lawyer, and swear under oath that your position is accurate and true. If you are filing chapter 7, in a few weeks you will receive notice that your debts have been discharged if all goes well. | |
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Do it Yourself Bankruptcy |
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So you decide to declare bankruptcy and contact several companies to inquire about filing only to be told you must pay up to $3000 to file bankruptcy. Forgive me but if your already in DEBT it maybe hard to come up with the money to pay this. Did you know that if you don't have any property, businesses, or other complicated assets that you can do your bankruptcy yourself. When you file bankruptcy yourself the only fees you pay are the actual filing costs with average around $300. You can pay this $300 in installments but your case can not be discharged until you have paid the complete filing fee. To get started first you must obtain a copy of all 3 of your credit reports to ensure that you have all the accounts you want to include on your bankruptcy. Next you download the appropriate blank bankruptcy packets complete with instructions. Follow the instructions to ensure that you include all the necessary information they ask regarding your personal information and information regarding your creditors. After your packet is complete go online to find the closest Bankruptcy court to your home. Contact your local office to get the exact requirements for filing in your district. Once you find the location you can take your bankruptcy packet to the filing office. They will process your paper work and then you get a court date. This is only recommended for consumers who don't have a huge amount of debt but are still considering bankruptcy. |
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Bankruptcy Basics |
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What a blessing and a curse at the same time. It is a blessing as it allows you to get out from under the debtor stress and a curse because it has to be used at all. Really it is a way to reduce the burden of debt by legal means. There are a few chapters to this book called Bankruptcy. There is chapter 7. What a chapter! This chapter allows the courts to take certain belongings and resale them. When they get the money back they divide it up between the people you owe. This supposedly frees you from the debts That is like reading one of those old English novels about the Lords losing their estates and joining the regular people. The other great chapter is chapter 13. This chapter has a bit more dignity. It sets up payment plans so that you can pay back your debts over a period of time. It is all relative to what you own and how much you make. It is not a good situation but, at least it exist for those with that necessary hardship. There is no shame in it. Millions of people go through it on the earth each year. Not just here in America, it is happening anywhere that English law prevails. Bankruptcy is not something anyone enjoys. Sometimes it becomes the necessary between two evils. Thank goodness for it here in America. Without it, there would be so much more woe and worry. You would have creditors walking through your living room lifting all of your belongings, breaking your fingers and legs for a payment. It would be absolutely ridiculous. Like we need more woe and worry over economics. Bankruptcy is what, a blessing and a curse. It is also a legal procedure. |
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Chapter 7 Bankruptcy |
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| If you find that you are in need of having to file bankruptcy, you will need to know what 'chapter' you are going to be able to file. Chapter 7 enables you to write off almost all of your debt, providing you are able to prove that you are no longer able to pay due to lack of income or some other circumstance. Make an appointment with a lawyer who specializes in bankruptcy law. Your first step is to gather all your financial information. List all your debts, the creditors, their addresses, and the amounts owed. List all of your assets and the amount that you think they are worth. This would include any jewelry, clothing, furniture, and so on. Your lawyer will also require proof of your income and your tax returns from the previous year. List the amount of money that you pay out each month for utilities, groceries, gas, entertainment, clothing and any other incidentals. Your financial status will be an open book. Leave nothing out. Discuss with your lawyer about anything you wish to withhold from bankruptcy, such as your home or vehicle. These debts will have to be what is called reaffirmed, meaning that the financial institution that holds the debts will have to be notified that you are not including these debts in your bankruptcy filing. You will also have to appear in bankruptcy court with your lawyer and swear under oath that everything concerning your financial status is true and correct.( Sometimes (not often) someone from one of the companies that you owe money to will also appear to dispute this filing.) Your statement will be recorded by the trustee appointed to hear your case. He will ask you a few questions, and then you will be finished. If your debts are discharged you will be notified by mail in a few weeks. | |
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Chapter 13 Bankruptcy |
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| If you file a chapter 13 bankruptcy, you are agreeing to pay your debts back at a monthly amount which will be determined by a trustee that has been appointed to you by the bankruptcy court. You will need to see a lawyer that practices bankruptcy law. The difference between a chapter 7 and a chapter 13 bankruptcy is the amount of debt that you owe and your ability to repay the debts. If your income is too high and the amount of debt you have is high (but not high enough) to qualify for chapter 7 then, if you decide to file, it will have to be a chapter 13 bankruptcy. You will have to prove income, debts and reveal all your financial assets. You will keep what you own and continue to pay a set amount monthly. This is usually for a period of 5 to 7 years. You will not be able to buy or sell anything without the permission of the trustee appointed to your case. Any income tax or other monies that you are entitled to will be taken to pay towards your debts. Many people decide to deal with the creditors themselves and try to work out a payment that satisfies everyone, rather than lock themselves into a 5 to 7 year time frame where they have to have someone's permission to buy or sell anything. Explore your options before you commit to filing bankruptcy in any form. It basically ruins your credit for a period of up to 10 years, and limits your ability to purchase things like a car or a home. | |
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