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
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presented for the sole purpose of educating consumers. You should read
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and consult an attorney if necessary. If you act on any of the
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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.
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
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
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.
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
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 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.
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