Personal Bankruptcy information | Avoid Personal Bankruptcy
Learn about filing for personal bankruptcy, find solutions to refinance your mortgage or get a loan after a personal bankruptcy.
| Credit Fact Center |
| Homepage Bankruptcy Credit Bureaus Credit Cards Credit Fraud Credit Information Credit Rating Credit Repair Credit Report Credit Rights Credit Score Saving Tips |
| Did you recently check your credit score? Receive a FREE credit score when you check your free Credit Report! Check your credit report today, and find out about your credit score. |
| Free Online Credit Report and score |
You receive all this for free - no obligation
 Free Credit Report - easy-to-read with color graphics Free Credit Score - with personalized tip for making your score higher Free Debt & Income Analysis - examines your borrowing power Plus a free 30-day trial of Credit Monitoring Services
|
| Get your Free credit report! Click here |
Bankruptcy is a legal means for an individual or organization to declare their inability to pay their creditors. Bankruptcy is typically declared by the debtor, but can in fact be declared by the debtor or the creditor. While it's possible for bankruptcy to be initated by creditors (those who are OWED money) as a collection tool, by and large, the vast majority of bankruptcies are declared by the bankrupt party.
Bankruptcy laws are designed to give an individual or organization a "fresh start" in life by clearing them of debts, and to repay their creditors in an orderly manner to the extent that the debtor has assets available for payment.
Bankruptcy provided an organized means for the the debtor to resolve his debts through the division of his assets among his creditors. Bankruptcy allows a debtor to be rid of most financial obligations after their assets have been distributed to their creditors, thus the "fresh start".
The act of filing for bankruptcy also gives the debtor protection from collection and legal action of his creditors during the time that the claim is being reviewed.
Fraud is a major problem with bankruptcy, and in April, 2005, President George W. Bush signed the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005" into law. This law prevents abuse by forcing more individuals to file Chapter 13 bankruptcy instead of Chapter 7. This law goes into effect in October 2005. Chapter 13 allows debtors to use future earnings to pay off debt, while Chapter 7 is more of a fresh start for the debtor.
Top Bankruptcy Tips from AskMrCredit.com
Reaffirmation of debts
Home : Bad Credit 101 : Bankruptcy : Bankruptcy Chapter 7 Bankruptcy Chapter 7 -------------------------------------------------------------------------------- Chapter 7 bankruptcy ...Read moreWhat debts are not erased by a bankruptcy?
The following debts are not erased in both Chapter 7 and Chapter 13. If you file for Chapter 7, these will remain when your case is over. If you file for Chapter 13, these debts will have to be paid ...Read moreCan i keep any credit cards?
Whether a debtor keeps credit cards after filing bankruptcy is up to the credit card company. If you are discharging a credit card they will cancel the card unless you reaffirm the debt. Even if you ...Read moreWhat are the key or major events in the bankruptcy process and when will the bankruptcy be over?
Day #1 The Bankruptcy documents are filed with the Bankruptcy Court. There is an immediate stay so that most actions by creditor are prevented, wages cannot be garnisheed, legal actions cannot be ...Read moreFreezing debtor accounts
Often, when filing a Chapter 7 petition, a debtor will owe money to a bank where he or she has a savings or checking account. A bank then may "freeze" those accounts administratively suspending the ...Read moreDeadlines for objecting to discharge and discharge ability
The debtor's goal in a Chapter 7 case is to receive a discharge, meaning that the debtor's personal liability for pre-petition debts is ended. However, certain debts are automatically ...Read moreBankrupcy - filing a claim
If the Chapter 7 is an asset case (or a notice is later sent out in a "no asset" Chapter 7 case disclosing that assets have been discovered and that claims should be filed), a creditor must file a ...Read moreWhy is it legal "wipe out" our debts?
More so than in any other time in our country's history, our economy is based on consumer debt. In fact, in this age of multibillion dollar corporate bailouts, easy credit and relentless bombarding ...Read moreHow long does a bankruptcy remain on my credit report?
Legally, a bankruptcy can be reported to potential creditors for 10 years. Each debt that was discharged under the bankruptcy petition (such as credit card accounts) may remain on your report for ...Read moreAre some of my debts not dischargeable?
Some kinds of debts are not dischargeable, which means that you will remain obligated to repay them even after you complete your personal bankruptcy. Examples of nondischargeable debts are certain ...Read moreShowing 1 to 10 of 41 Facts
| Find Credit Facts |
What's Chapter 7?
Chapter 7 bankruptcy, sometimes call a straight bankruptcy is a liquidation proceeding. The debtor turns over all non-exempt property to the bankruptcy trustee who then converts it to cash for distribution to the creditors. The debtor receives a discharge of all discharageable debts usually within four months. In the vast majority of cases the debtor has no assets that he would lose so Chapter 7 will give that person a relatively quick "fresh start".
What is a chapter 13 bankruptcy?
Under a chapter 13 bankruptcy, a debtor proposes a 3-5 year repayment plan to the creditors offering to pay off all or part of the debts from the debtors' future income. The amount to be repaid is determined by several factors including the debtors' disposable income. To file under this chapter you must have a "regular source of income" and have some disposable income. Like in a Chapter 7, corporations and partnerships may not file under this chapter.
Copyright 2005 - 2008 http://www.AskMrCredit.com. All rights reserved.