Welcome to Bankruptcy Guide
Bankruptcy Advice Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
A Very Personal Bankruptcy
from: Deb St. George - HomelessInKingCounty.comFiling a personal bankruptcy is a major decision and one that only you can make. It’s no secret that it can have long term consequences on your credit. But the question to ask yourself is whether those consequences are better or worse than the consequences of debt spiraling out of control. It doesn’t take long for people to discover that debt only gets worse when ignored.
A personal bankruptcy is called “personal”, because it applies to an individual and not a business. It’s also very personal, because the bankruptcy is structured to meet your particular circumstances. But having said that it’s also necessary to recognize that there are specific laws that define bankruptcies in terms of what’s allowed and not allowed. For personal bankruptcies, you can file a chapter 7 for liquidation or a chapter 13 for a repayment plan.
A personal bankruptcy can do some things to help people deal with their debt, but there are other things outside its realm of control according to law. For example, a personal bankruptcy cannot erase all types of debt. These debts include child support, court ordered payments and criminal fines. The attorney will negotiate with the IRS to determine which tax debts can be eliminated. Also, any debt you create after the bankruptcy is not grandfathered into the order. On top of that, a creditor can make you give up any collateral you used to secure debt instead of just accepting payments.
The good news is that a personal bankruptcy can do lots of great things to make your life easier and give you a new start. Excessive debt feels like you’re carrying hundreds of pounds around on your shoulders all the time. Filing a bankruptcy takes most of that weight off.
There are plenty of good results you will experience as a result of filing bankruptcy. One of the best is the fact that most of your debts are discharged. That means you no longer have the debt and don’t have to pay it. A bankruptcy can prevent your house or car from being taken in a foreclosure or repossession. If you waited to file long enough to have your utilities turned off, they will probably be restored. There are other benefits too, and it is the job of your attorney to make sure you get the most financial relief allowed by the law.
Filing a bankruptcy can actually help your credit if your credit is already virtually ruined. That’s because a personal bankruptcy wipes out the debt you owe and lets you start again with a clean slate. If you work and save money and make timely payments on remaining debts, in all likelihood you will be able to begin rebuilding your credit within a few months of the final bankruptcy discharge.
A personal bankruptcy can remain on your credit history for 10 years. You cannot file another bankruptcy for 4 years on a chapter 7 and for 8 years on a chapter 13. Filing a bankruptcy is a long term decision with near term benefits. A bankruptcy attorney can help you start over again with a new financial life.
Bankruptcy Advice News
Houghton Mifflin files Chapter 11 bankruptcy
Houghton Mifflin Harcourt Publishers Inc, whose textbooks have been a staple in American schoolhouses for decades, filed for Chapter 11 bankruptcy protection on Monday after agreeing with creditors to ...
Read more...5 Bankruptcy Myths Debunked
Nadya Suleman (known to gossip magazines as "Octomom") recently filed for Chapter 7 bankruptcy after accumulating roughly $1 million in debt. Tabloids and gossip blogs have criticized Suleman's ...
Read more...Individual bankruptcy fee to double
Labour has failed to block a plan to double bankruptcy fees after MSPs heard the hike would save taxpayers £1.5 million. People will soon have to pay £200 to enter bankruptcy after the agency that administers the applications found that the present £100 fee was not covering its costs.
Read more...Restoring your credit scores after filing for bankruptcy
The right steps to improve scores include a mix of credit and paying bills on time. But there's no way to quickly restore FICO scores to their old levels after a bankruptcy. Dear Liz : I had credit scores over 800 with no late payments ever. Unfortunately, a medical issue required me to charge $24,500 to a credit card. That led to a bankruptcy, which was discharged in July 2011. My scores ...
Read more...Textbook company Houghton Mifflin files Chapter 11 bankruptcy
Houghton Mifflin Harcourt Publishers Inc filed for Chapter 11 bankruptcy protection on Monday after the struggling textbook publisher agreed with its creditors to eliminate about US$3.1-billion of debt
Read more...SECTOR UPDATE: Coal Stocks Cool To Year Lows On PCX Bankruptcy Chatter
SECTOR UPDATE: Coal Stocks Cool To Year Lows On PCX Bankruptcy Chatter
Read more...Houghton Mifflin Harcourt Publishers Files Chapter 11 Bankruptcy
* Textbook publisher hurt by government cutbacks * Bank lenders, bondholders would gain control * Paulson took stake By Jonathan Stempel May 21 (Reuters) - Houghton Mifflin Harcourt Publishers Inc, whose textbooks have been a staple in American schoolhouses for decades, filed for Chapter 11 bankruptcy protection on Monday after agreeing with creditors to eliminate $3.1 billion of debt.
Read more...