Personal Bankruptcy Information
Educating oneself on personal bankruptcy information is essential for anyone who is considering filing for personal bankruptcy. While statistics do show that the number of people filing for personal bankruptcy has surged due to the economic downturn of the past few years, it’s imprudent to file for bankruptcy without the adequate amount of personal bankruptcy information. Knowing enough personal bankruptcy information can help you avoid encountering potential problems with your bankruptcy filing, and can help you go through the bankruptcy process more smoothly. In all, acquiring as much personal bankruptcy information as possible is an excellent option if you’re considering filing for bankruptcy.
Chapter 7 Bankruptcy
The specific personal bankruptcy information you need varies on a case-to-case basis and depends on your subjective situation. Most people have the mindset that bankruptcy should provide them a fresh start – that it will wipe out debts they owe. This complete type of bankruptcy is known as Chapter 7 bankruptcy. Also referred to as the “liquidation bankruptcy,” Chapter 7 bankruptcy clears you of all dischargeable debts, like credit cards and medical bills, but also may force you to surrender some of your possessions or property so they can be sold to repay your creditors. A bankruptcy attorney can assist with understanding this concept further. Because of this provision, Chapter 7 bankruptcy doesn’t always flow as smoothly as originally planned, but it is by far the most efficient way for most people to get a clean slate and a fresh start. Many people have the misconception that their debts are immediately cleared after the filing of a Chapter 7, which is not the case. One’s debts aren’t officially forgiven until a discharge is entered by the bankruptcy court.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is the second most commonly filed chapter of bankruptcy by consumers. Also known as the “reorganization bankruptcy”, Chapter 13 reorganizes your unresolved debt at the time of filing into one affordable monthly payment. It’s used by many to help save their homes from foreclosure. personal bankruptcy information on Chapter 13 is much more detailed and complex than Chapter 7. Most bankruptcy judges will not let you file a Chapter 13 without the assistance and representation of a lawyer, and the repayment plan must las five years in most instances. As mentioned above, the advantage to filing Chapter 13 is that you’re given the privilege to retain certain assets and property, such as your home, but still receive the protection of the bankruptcy court from your creditors.
Is Filing Bankruptcy Right for You?
Chapter 7 and Chapter 13 bankruptcy typically the only two options available to those to those who want to declare personal bankruptcy to deal with their financial problems. Once a bankruptcy has been filed, individuals are then protected by law from collection lawsuits and any other actions that creditors may take against them, such as wage garnishments. However, bankruptcy comes with a price – it’s commonly known to all that bankruptcy is a major dent to your credit report. It can remain on your credit report for seven to ten years, depending on the credit bureau.
Credit Counseling Sessions
To properly complete a personal bankruptcy, a pre-bankruptcy credit counseling session and pre-discharge debtor education session is required. These can typically be done online. The first course (pre-bankruptcy) is basically required to inform interested parties that they may have other options besides filing for bankruptcy.The sessions are helpful and also a great way to garner basic personal bankruptcy information and other financial advice, providing people information on the best ways to handle their finances post-bankruptcy completion.
Rates for both sessions are around $50 each, and if you plan on having the fee waived due to financial hardship – you must secure a fee waiver before sessions start. Both credit counseling sessions are required for all individuals and married couples filing for bankruptcy, and certificates are issued as proof that the counselings were completed.
After your bankruptcy has been filed, you must then obtain your post-bankruptcy “debtor education” counseling certificate. These sessions can also be done in person as well as online or possibly over the phone. The purpose of the post-bankruptcy session is to help you work on developing budgets and managing money. While you may not have sterling credit after filing a bankruptcy, you’ll still be educated on using credit wisely.
Knowing the proper information when deciding whether to file for personal bankruptcy can help you make the right decision. For more personal bankruptcy information, be sure to explore bankruptcyhq.com.