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!!!THE ADVOCATER'S BANKRUPTCY PAGE!!!

So you have decided to file bankruptcy. A lot of people have serious misconceptions about Bankruptcy. Bankruptcy is no longer the scarlet letter it once was. More people are filling bankruptcy today then they ever have in years past. In my opinion this trend of bankruptcies are in a direct response to the hostile, vulgar, humiliating and deceitful techniques employed by most debt collectors. People would rather file Bankruptcy then face these agents of evil. Years ago people would rather be shot in the street before they filed bankruptcy. What invention has there been between then and now? DEBT COLLECTORS, need I say more.

DISCLAIMER: The following information is not offered as legal advice. The author is not an attorney an can not give legal advice. It is presented for the sole purpose of educating consumers. You should read the statues mentioned in this site and make sure you understand them and consult an attorney if necessary. If you act on any of the information contained in this site you alone are responsible for your actions and you agree not to hold the author of this site liable for any and all damages either compensatory or consequential. The Author makes no warranties either expressed or implied regarding the information contained in this site including fitness for a particular purpose. You are responsible for verifying the accuracy of the information contained in this site and for properly applying the law to your situation. Furthermore, the author assumes that anyone who reads or uses the information contained in this site is not engaged in the authorized or the unauthorized practice of law, or the rendering of any professional services, or of any services of any kind.

IS BANKRUPTCY MY ONLY OPTION?

Not necessarily. It dependents entirely upon your circumstances. There are many factors that need to be considered when making this decision. These factors are far to numerous and complex to list here in there entirety. Some of the factors that need to be considered when making the decision to file bankruptcy are: what is my income? What are my assets? How much money do I owe? Who do I owe money to? How old is the debt? etc. As you can see there is a lot to consider when contemplating filling bankruptcy. Bankruptcy can offer you many advantages as well as disadvantages.

WHAT ARE THE ADVANTAGES TO
CHAPTER7 BANKRUPTCY

1)The first advantage you get is that most of your debts are completely discharged. This means that you no longer owe them. This includes credit cards, medical bills, utility bills, back rent, social security overpayments etc.These are just some examples of the types of debts that are discarged by bankruptcy. BEWARE THERE ARE DEBTS THAT CAN NOT BE DISCHARGED BY BANKRUPTCY. These include Student Loans and Child Support so check your laws or you could be in for a nasty surprise.However, most debts can be completely discharged under chapter 7 bankruptcy.

2) The next advantage you get is the automatic stay. The day you file bankruptcy you are issued an automatic stay. This enjoins all your creditors from taking any action against you. This includes referring your case to a collection agency, law suits, evictions,utility shut off et. Collection agents and creditors will stop calling you or they could be held in contempt of court. The best part is that you don't need to ask for this relief. The stay is granted automatically the day you file for bankruptcy.

3) The fresh start! Bankruptcies give you the opratuneaty to eliminate your debts and rebuild your credit history. Many people believe that you can not qualify for loans or credit once you filed bankruptcy. This is not true. Once your debts are eliminated through bankruptcy you will then be able to pay your remaining bills on time thus creating a good payment history. Further more, there is a new trend of credit companies that are willing to extend credit and loans to people who have filed bankruptcy. BEWARE of these offers! These loans and credit cards are usually offered at ridicules interest rates and if you default you can expect very aggressive collection tactics.

WHAT ARE THE DISADVANTAGES OF
FILLING CHAPTER 7 BANKRUPTCY

1) Bankruptcies remain on your credit report for 10 years. Most lenders don't like to see bankruptcies on your credit report. This does not mean that you can not get credit or loans for 10 years. It just means that it will be more difficult and you may pay higher interest rates.(see fresh start above) Having a bankruptcy on your credit report is not good but it may not be a disaster. Through time and a good payment history you can rebuild your credit.

2) Court Fees: The fee for filling bankruptcy is approximately $160.00. This fee can not be waived.

3)The bankruptcy petition: Although you can initiate a bankruptcy and take advantage of the automatic stay by filling a two page form with the bankruptcy court, the rest of the petition is very long and confusing.

4)Loss of property: Under chapter 7- liquidation, your non-exempt property is sold to pay off your creditors. However, in most bankruptcy cases the majority, if not all of your property is exempt from seizure by your creditors.

WHATS THE DIFFERENCE BETWEEN CHAPTER 7 AND CHAPTER 13 BANKRUPTCY?

1) You do not have to liquidate your assets! You get to keep both your exempt and non-exempt property. In stead of liquidating your assets and paying your creditors out of the proceeds chapter 13 bankruptcy uses your future income to pay your creditors. Under chapter 13 your debts are restructured and your creditors are forced to accept lower payments thus allowing you time to catch up on your bills.

2) Discharge of your debts: Just like chapter 7 bankruptcy you get a discharge of your debts and you will have no further obligation to pay them. Under chapter 13 bankruptcy this relief is far broader than the discharge you receive under chapter 7 cases. Under a chapter 13 bankruptcy you gain a discharge from debts that can not be discharged in chapter 7 cases.

3) The automatic stay: Under chapter 13 bankruptcy you gain an automatic stay identical to the stay received under chapter 7 bankruptcy (see above).

WELL I DECIDED TO FILE FOR BANKRUPTCY WHAT DO I DO NOW?

Well the first thing you want to do is e-mail me below so that we can discus your situation or you can purchase one of the books below and handle your bankruptcy on your own. Whatever decision you make I would still suggest that you purchase a bankruptcy self-help book. This way you will be well armed with the information you need when it comes time to file your bankruptcy petition. I wish you the best of luck.


Use the link below to return to my home page.

The Advocater's Home page!: Return to my home page
The Advocater's Social Security Page!: If you have ben denied Social Security click here.
The Advocater's Credit Repair and Bankruptcy Page! : If you are being harassed by collection agents, or need assistance negotiating with crediters, Repairing your credit, or fileing bankruptcy(when all els fails) click here!

The Advocater

tcd86@aol.com


Check out these books from amazon.com


The Alpha Chapter 7 Bankruptcy Kit
How to File Chapter 7 Bankruptcy

Bounce Back from Bankruptcy:step by step guied to getting back on your financial feet

Credit After Bankruptcy



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