The Finance Factor

Deciding to voluntarily file for Chapter 7 Bankruptcy is a tough decision to make for most people. After all, filing Chapter 7 essentially is your way to invite your creditors to liquidate all of your assets and distribute the proceeds amongst themselves to repay your debt. (Note: a Bankruptcy Trustee is the one charged with the liquidation task, but ultimately, the Trustee works on behalf of your creditors).

Knowing how emotionally difficult such a decision is, you should not have to stress over the multitude of forms that need to be completed. As evidenced by the extensive list of forms published the US Courts website, filing for bankruptcy can be a complicated matter. So complicated, in fact, that it has created opportunities for people to actually charge for their service of helping you through the complicated paperwork.

In most cases, people will seek the advice and assistance of a bankruptcy trustee or other specialist. However, there are many bankruptcy attorneys who will also help (for a nice fee, of course). Continue reading ‘Navigating the Chapter 7 Process Requires Help’ »

A bankruptcy filing should only be considered as a last resort measure. If you have exhausted all other possibilities, your minimum payments are no longer within your means and you are already defaulted in a few payments or if you have lost your income you are no longer able to repay your debts, then it is time to consider talking to a bankruptcy attorney and have the bankruptcy chapters explained. Any attorney that specializes in bankruptcy law will be able to offer you a free consultation to have all your bankruptcy questions answered and explain the process in detail and let you know what is it that you can expect and whether this is a viable option for you or not.

There are basically two types of bankruptcy for an individual:

Chapter 7 Bankruptcy

A Chapter 7 is when an individual can not repay his or her debts and asks a federal court to grant them a Chapter 7 discharge. Under a Chapter 7, all of your unsecured debt will be wiped clean while your secured debt can be dealt with by liquidating some of your assets. For example, if you have a debt from a Best Buy card, that is secured debt and you may be asked to return the TV or whatever other appliance you bought with it. While this is not common practice, it can happen. Sometimes the creditor will offer you to settle for pennies on the dollar and let’s say that you owe $1000 on that secured debt card, probably the merchant will offer you to settle for $250. Otherwise, this debt gets wiped with all other debts. Continue reading ‘Bankruptcy Chapters Explained – Bankruptcy Information and Other Common Questions’ »

Sometimes, debts can become overwhelming. If you find yourself unable to pay off your bills on time and feel as though you are floundering financially, then there is no need to stress any longer. Know this: by filing for Chapter 7 bankruptcy, you can escape creditor harassment, halt repossessions and foreclosures, and eliminate your unsecured debts. Even though bankruptcy is typically tagged with a number of negative connotations, it can actually benefit you greatly.

The Means Test

Before you can file Chapter 7, you must first determine whether or not you qualify for this form of debt resolution. The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), passed in 2005, established the means test as a method of weeding out Chapter 7 applicants who actually have enough money to pay off large portions of their debts. Those who do not qualify under the means test can instead file for Chapter 13 bankruptcy. Continue reading ‘About Chapter 7 Bankruptcy’ »