Don’t Beat Yourself Up Over Personal Bankruptcy

If you’re buried under mountains of debt and are in the process of filing bankruptcy, don’t feel guilty because you’re in good company. Just turn on the news and you’ll see corporations filing bankruptcy without any hesitation. Many corporations file for bankruptcy to get rid of uncontrollable debt and improve their balance sheet. The list of corporations seems endless with major airlines, large banks, retailers and even Wall Street brokerages. Bankruptcy no longer carries the mark of shame as in yesteryear. There are a few chapters of bankruptcy and all of them have their own benefits.

Knowing how to file for bankruptcy can be an invaluable lesson in life, and basics should even be taught in school. Having the confidence to take financial chances has made this country great and entrepreneurs wouldn’t be able to do that without the availability of bankruptcy filing. There are three chapters that are the most common in bankruptcy. It’s important for you and your bankruptcy attorney to discuss your options as the amount of debt plays heavily into the consideration of which Chapter to use. An individual should make a thoughtful decision when filing for bankruptcy because of the negative impact to their credit. Whenever making choices weigh the negative aspects against the positives, then decide if the negatives are a deal breaker.

Looking for information on bankruptcy online is a great way to educate yourself. Always search for alternatives before making your decision, as one of them might be a better suit for your financial needs. Some people try loan consolidation and financial counseling prior to filing bankruptcy. Most of these people end up in personal bankruptcy anyway, being just a little poorer from the payments they had to make. Filing for bankruptcy can be emotionally draining and should be fully understood before taking the leap.

Although there are other causes of personal bankruptcy, about 75 to 85 percent can be attributed to unemployment, divorce and medical bills. Everyone’s reason for filing bankruptcy may be different, except there is one common denominator, a large amount of unsecured credit card debt with unruly interest rates. Individuals usually file personal bankruptcy when they see there is no other way out of debt. The decision to file is very serious and should be well thought out with the help of a professional.

Once the decision is made, many express the feeling of relief, knowing that the creditors can no longer harass them because of the automatic stay. When the bankruptcy is filed with the court, the automatic stay is imposed and all collection efforts, including foreclosure, and any contact with the debtor must stop. Many individuals feel intimidated about filing for bankruptcy because of the fear of what happens to them after they file. Basically, the fear of the unknown is what people worry about. When someone’s buried in debt, anything has to be better than that.

With that said, the positives of bankruptcy should outweigh the ding on the credit report. You’ll be able to stop screening your calls because the creditors will no longer be able to contact you. Wage garnishments from creditors will stop and you will start getting your entire paycheck again. After your unsecured debt is discharged, he should have extra money to keep current on your rent, car payment, phone and other living expenses. Personal bankruptcy has many positive aspects as well as a few negatives, that’s why if you’re heavily in debt and feel there is no way out, consult a local bankruptcy attorney to find out if bankruptcy will work for you. When it’s all done you feel a huge weight lifted off you as you begin your life trying to live debt free.

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Bankruptcy Help – Where To Find It

Need bankruptcy help? A lot of people do not like to hear it, but if you need bankruptcy help, the best place to find help is to turn to the professionals. Contact a bankruptcy attorney. Here’s why.

Bankruptcy, whether personal bankruptcy or business bankruptcy, is very detailed, technical, and can be complicated. A lawyer who handles personal bankruptcy is trained to consider all of the following areas which are interwoven:

A Person’s Qualification For Bankruptcy:

Personal bankruptcy includes both Chapter 7 bankruptcy and Chapter 13 Bankruptcy. These are different laws and procedures and they deal with debts and property in different ways. People must qualify for bankruptcy and the qualifications are different for each type of bankruptcy.

A Person’s Debts:

A person’s debts are either secured or unsecured. Secured debts may be either voluntary (such as a car or house loan) or may imposed by law (such as a judgment or tax lien). The different types of debts are treated differently in each of the two types of personal bankruptcy.

A Person’s Property:

The type of bankruptcy, type of property, amount of property, and whether or not property secures a debt, all affect the results of a personal bankruptcy. A debtor may or may not lose property in the bankruptcy process.

Motions To Avoid Liens:

During a Chapter 7 bankruptcy process, a debtor can file a Motion To Avoid Liens on certain personal property. This has the effect of allowing a debtor to keep the property, but not pay the debt. There are restrictions on Motion To Avoid Liens and it does not apply to loans used to purchase property.

Motions To Avoid Judicial Liens:

Some debtors have been sued and have judgments against them. Normally, these judgments need to be paid before real property (such as a house) can be sold. However, a debtor can file a Motion To Avoid Judicial Liens and remove the judgment from its attachment to real property (such as a house) and not pay the judgment debt.

Reaffirmation Agreements:

There are times when a debtor wants to reaffirm a debt and it is in the debtors best interest to do so. Because bankruptcy is to help a debtor get rid of debt, there are requirements to be satisfied before a bankruptcy court will approve a reaffirmation agreement.

Reduce To Present Day Value:

In a Chapter 13 bankruptcy, under certain conditions, a secured debt can be reduced to the present day value of the property. This is applicable in some cases where the debt is a great deal more than the value of the property. The debtor can keep the property and pay less for it.

The above is a simple statement of what may be done in bankruptcy. Different actions are applicable in different situations and different criteria must be satisfied. Anyone considering filing bankruptcy and looking for bankruptcy help needs to talk with a bankruptcy attorney. Only a bankruptcy lawyer is trained to understand how each thing affect other things.

This is general information. If you need specific information or have any questions of any nature whatsoever, talk with a lawyer licensed in your state.

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