Bankruptcy

Jon Arnold asked:

For some people, filing personal bankruptcy is the only way they can find their way out of overwhelming debt. Whether your debt is the result of not being able to pay your bills because you were laid off work or the result of poor financial decisions, there are a variety of things to consider before actually filing personal bankruptcy. When you first consider to file bankruptcy, you will need to decide if Chapter 7 or Chapter 13 bankruptcy will fit your needs better. As well, there are a variety of debts that cannot be included in your bankruptcy settlement.

Chapter 7 bankruptcy requires that a bankruptcy trustee sell off your nonexempt assets so that your debt can then be repaid. With Chapter 7 bankruptcy, there is the risk of losing your home, along with a majority of your other personal items. Therefore, before filing Chapter 7 bankruptcy, it is important you have a full understanding how Chapter 7 works. When it is all said and done, if you file Chapter 7 bankruptcy, you will no longer have your overwhelming debt.

Chapter 13 bankruptcy varies quite a bit from Chapter 7 bankruptcy. Chapter 13 bankruptcy requires that a portion or all of your unsecured debt is repaid. A repayment plan is established through the bankruptcy court. Payments can be made over a period of 36 months to 60 months, depending on the amount of the debt. The repayment amount is equal to or greater than the amount would be should you have chosen to go with Chapter 7 bankruptcy and liquidated your assets.

Although personal bankruptcy may seem like a great way to break free of your overwhelming debt, there are some types of debt that cannot be included when filing bankruptcy. Debt that occurs from student loans, taxes, child support, spousal support, criminal fees and charges made on a credit card 40 days before filing bankruptcy cannot be included in personal bankruptcy.

It is important that you realize filing personal bankruptcy will have a negative effect on your credit rating. This effect will last for approximately seven to ten years, depending on what type of bankruptcy you file. Although your credit score will be affected, you can still obtain credit after you have filed bankruptcy. However, the credit that you will be able to obtain will carry a higher interest rate than it would if you didn’t have a bankruptcy on your credit.

Filing bankruptcy can also have other negative effects. For instance, if you would need to obtain life insurance you may have a harder time obtaining a policy. Many car insurance companies are now charging a higher premium if you have a bad credit score. Many employees are now running credit checks. Therefore, if you have a bankruptcy on your credit, it may be harder to obtain a job. You may also experience psychological effects, such as depression.

For many, debt is a way of life. However, there are instances when the debt becomes more than you can handle. Personal bankruptcy is a way to help you deal with debt that you can no longer pay. If you are looking to file bankruptcy, it is important that you have a full understanding of the way it works, as well as the lasting effects bankruptcy can have.

Bankruptcy Considerations

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moegold2000 asked:


Will I have to declare my bankruptcy on my taxes? Is it counted as income?

ALDEN

Davidsfarm asked:

my thoughts on the big 3 auto companies future.

BOBBIE

Brina asked:


Has anyone filed bankruptcy recently, i went to go see an attorney and he wanted 300.00 for a filing fee and 1200.00 for attorney fees is that the rate for a bankruptcy attorney nowdays?

DOMENIC

Jon Arnold asked:


Sometimes situations arise when you can no longer pay your bills. Although you may have the best intentions of paying off your debt, you simply may not have the means to make this happen. When you can no longer pay your bills, you may need to consider filing bankruptcy. Hopefully you will have considered your alternatives but sometimes bankruptcy is the most viable option. The question then becomes which type of bankruptcy will best suite your financial needs, Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. Your current situation will help you to decide which bankruptcy route is best for you.

A majority of consumers choose to go with Chapter 7 bankruptcy. There are a variety of differences between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 bankruptcy does not require you to make a plan of repayment. When you file for Chapter 7 bankruptcy, your debt is not immediately wiped out. Instead, a bankruptcy trustee will sell off your non-exempt assets in order to pay off your debts. It is important that you understand with Chapter 7 bankruptcy, you could potentially lose any property that you currently own.

However, with Chapter 13, you are not required to liquidate your assets in order to repay your creditors. Instead, you make a repayment plan to pay a portion or all of your unsecured debt back. This is done through the court system and payments can be made over a 36 to 60 month period. The amount you repay your creditors must be equal to or greater than what they would receive should you have liquidated your assets, as with Chapter 7 bankruptcy. If you follow through with your repayment plan, then your remaining unsecured debt will then be discharged.

If you have lost your job or have no means of repaying your debt, then you should probably consider filing for Chapter 7 bankruptcy. However, if you are still able to meet some of your monthly obligations, but cannot pay off your entire debt, then you may want to consider filing for Chapter 13 bankruptcy.

It is important that you have a full understanding of the lasting impact of filing for bankruptcy. Whether you are filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy, there are financial consequences. Chapter 7 bankruptcy will have a steeper impact on your financial situation. By filing Chapter 7 bankruptcy you are telling creditors that you cannot be trusted to pay off your debts. Therefore, you will have a hard time finding creditors to lend you money in the future. This will be extremely important if you are ever in the need for a new car, mortgage or even a simple credit card.

Chapter 13 has less of an impact on your overall credit rating. Since you are still paying off your debt, just in a restructured form or at a lower interest rate, creditors see you as less of a financial risk, than someone who has wiped out there entire debt through Chapter 7.

Be aware that there are certain types of debt that cannot be discharged with either chapter of bankruptcy, so make sure you have a thorough understanding of bankruptcy law, especially with the major recent changes to the laws.

There are both pros and cons to filing either Chapter 7 bankruptcy or Chapter 13 bankruptcy. Before committing to either one, you should sit down with a financial adviser and go over your obligations and options completely. Weighing out the pros and cons of both types of bankruptcy and basing your decision on your current situation, you will be able to easily decide which bankruptcy route you should go with.



BRETT

CharlieRose asked:

Stephen Shepard, Editor-In-Chief, BusinessWeek /// Robert Altman, Filmmaker, “Gosford Park” [USA Films]; Julian Fellowes, Screenwriter, “Gosford Park” [USA Films]; Trailer and 2 clips from “Gosford Park” [USA Films] /// Tilda Swinton, Actor, “The Deep End” [Fox Searchlight]; 3 clips from “The Deep End” [Fox Searchlight]

GARFIELD