| |
Navigation
Sitemap
Contact Us
Privacy
Classified Ads
Bankruptcy Lawyer
Bankruptcy
Bankruptcy In Maryland
Arizona Bankruptcy Lawyer
Bankruptcy Lawyer Maryland
Bankruptcy Lawyer New York
Bankruptcy Equity Home Loan
Bankruptcy Refinancing
Refinancing After Bankruptcy
Mortgage After Bankruptcy
Bankruptcy Illinois In
Arizona Bankruptcy In
Bankruptcy Attorney
Bankruptcy In New York
Bankruptcy Filing New York
Online Bankruptcy Filing
Florida Bankruptcy Lawyer
Bankruptcy In Virginia
Bankruptcy Attorney California
Bankruptcy Mortgage
Bankruptcy Illinois Lawyer
Bankruptcy In Michigan
After Bankruptcy Home Loan
Arizona Attorney Bankruptcy
Mortgage Bankruptcy Loan
Kansas Bankruptcy
Bankruptcy New State York
Bankruptcy Lawyer Ny
Bankruptcy Lawyer Chicago
Bankruptcy In Texas
Loans After Bankruptcy
Bankruptcy Lawyers
Bankruptcy City New York
Attorney Bankruptcy Virginia
Attorney Bankruptcy Illinois
Bankruptcy California Lawyer
Michigan Bankruptcy
Bankruptcy Alternative
Chapter 11 Bankruptcy
Bankruptcy Form
Chapter 13 Bankruptcy Law
Bankruptcy Court
Chapter 11 Bankruptcy Law
Us Bankruptcy Court
After Bankruptcy
Federal Bankruptcy Court
Personal Loan After Bankruptcy
Bankruptcy Lawyer Virginia
Oregon Bankruptcy
Home Equity Loan Bankruptcy
Type Of Bankruptcy
Bankruptcy Personal Loan
Colorado Bankruptcy
South Dakota Bankruptcy
Bankruptcy Rule
Ohio Bankruptcy
Business Bankruptcy
Michigan Bankruptcy Attorney
Syndication
|
|
| Articles: (Updated Frquently) |
| The Facts About Personal Bankruptcy |
| By: Jay B Stockman |
The thought of personal bankruptcy is very frightening, however over 5.4 per 1,000 people have filed for bankruptcy last year, and this rate has been growing at an average of nearly 7 percent. Researchers have determined that the primary cause of personal bankruptcy is uncontrollable levels of consumer debt oftentimes coupled with an unexpected event, such as a major medical expense not covered by insurance, the loss of a job, divorce or death of a spouse. According to economists’ surveys, the classic bankruptcy filer is a blue collar, high school graduate who is the head of a household in the lower middle-income class with heavy use of credit. In order to protect both debtor, and creditor,
laws were enacted to provide equal, and fair measures to satisfy the objectives of all parties. The primary purpose of the laws of bankruptcy are: (1) to give an honest debtor a fresh start in life by relieving the debtor of most debts, and (2) to repay creditors in an orderly manner to the extent that the debtor has property available for payment.
There are two types of structured plans for filing for personal bankruptcy, Chapter 7 or Chapter 13. Over two-thirds of personal filers choose Chapter 7 bankruptcy. Basically Chapter 7 requires the debtor to liquidate all non-exempt assets, and have them distributed among creditors. Some examples of exempt assets include equity in a primary residence, and a retirement program. On the other hand, Chapter 13 does not require liquidation, rather a debtor agrees to a specific payment plan, whereby a portion of any unsecured debts is paid, and the balance is forgiven. It must be stressed, that under both plans, certain debts are ineligible for bankruptcy protection. These debts include government student loans, child support, alimony, and income tax debt. These must be paid back in full.
|
|
Some analysts are concerned that this unprecedented level of debt might pose a risk to the financial health of American households.
In an attempt to reverse the increasing trend in personal bankruptcy, the federal government has recently implemented sweeping bankruptcy reform legislation. On March 10, 2005, the Senate passed S. 256, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
On April 20th, President Bush signed into law the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (Bankruptcy Act of 2005). This act makes filing for bankruptcy more difficult through income-means testing, tougher guidelines for the homestead exemption, increased lawyer liability and required credit counseling.
About the Author
Jay B Stockman is a contributing editor for Online Bankruptcy Resources Visit http://online-bankruptcy-lawyer.com/ for more information.
|
|
Technorati Tags:
bankruptcy, bankruptcy attorney, bankruptcy law, avoid bankruptcy, filing bankruptcy, bankruptcy lawyer, personal bankruptcy, chapter 7 bankruptcy
Add to: | Technorati | Digg | del.icio.us | Yahoo | BlinkList | Spurl | reddit | Furl |
|
| Bankruptcy - All About Chapter 7 Bankruptcy |
| By: Nathan Dawson |
The most common type of Bankruptcy that is filed for is Chapter 7 Bankruptcy. This is a liquidation bankruptcy rather than a reorganization bankruptcy. This means that assets will be sold to clear the debt or debts.
It starts by the person in debt listing their assets. With Chapter 7 Bankruptcy the debtor is allowed to keep what is called "exempt" property. Examples of exempt property are
a certain amount of home equity
a small amount of vehicle equity
small allowance for clothing
small allowance for other personal items.
The value of these exempt properties differs depending on what jurisdiction you file for Chapter 7 Bankruptcy in.
A trustee will be appointed who will gather the debtors assets ready for sale. The proceeds will then be distributed to creditors according to priority. Even after declaring Chapter 7 Bankruptcy there are some debts that will still be require to be paid off. These are called non-dischargeable debts and some examples are
child support
student loans
DWI fines or penalties
taxes.
Secured debts are those where the creditor has an interest in the property of the person filing for bankruptcy. It may be that the loan was used to purchase the property. Secured debts take priority over non-secured debts. If the sale of the property is insufficient to repay the secured debt then the remained of the debt becomes classed as a non-secured debt.
Non-secured debts are the last debts to be cleared off in bankruptcy proceedings. They may even end up completely discharged if there are not enough assets. This is what happens in many Chapter 7 Bankruptcy cases. An example of a non-secured debt is a credit card debt.
About the author:
Find more great articles at http://www.marriedfinances.coma great online source for finance information.
|
|
| Keywords: bankruptcy liquidation bankruptcy rather, debts, debt, bankruptcy this, secured debts, bankruptcy, type of bankruptcy, small allowance, bankruptcy rather than |
|
 |
