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 Bankruptcy
Personal bankruptcy as a debt management tool is a last resort. The
results of declaring bankruptcy are long term and can have a profound
impact on an individual's financial future. Bankruptcies remain on an
individual's credit history for a period of ten years and can greatly
affect the ability to qualify for credit and loans. As well, a bankruptcy
on a credit history can affect job applications, housing applications and
other import details of an individual's life and well being.
If you are considering filing for bankruptcy, or have filed
in the past, let Fowler & Fowler Credit and Debt Solutions help you get
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Bankruptcy is a legal procedure. For those applying for bankruptcy in
order to get a fresh financial start, a discharge is what they seek. This
discharge is when a court decides that an individual isn't obligated to
repay certain debts they owe.
There are two types of personal bankruptcy, both of which must be filed in
federal bankruptcy court. They are Chapter 13 bankruptcy and Chapter 7
bankruptcy. Bankruptcy costs include a bankruptcy filing fee of $130 and
an administrative fee of $30 for a total cost of $160. Legal and attorney
fees are not included in that amount, and can vary greatly.
Chapter 13 Bankruptcy
This type of bankruptcy applies to those who make a regular income and
carry a limited amount of dept. This type of bankruptcy protection enables
an individual to keep their property, whether that be a car or mortgaged
house, that in other bankruptcy proceedings, may be lost. The Court
approves a repayment plan that enables an individual to keep their
property, while paying off a default over a typical period of 3 to 5
years.
Chapter 7 Bankruptcy
Also called 'straight bankruptcy', Chapter 7 bankruptcy refers to the process of liquidation of
all assets that do not fall under the category of exception. The
exceptions can include automobiles, property required for work and
household furnishings. Often, some property is sold through a court
appointed trustee or official and the funds then given to creditors. Only once every
six years is an individual able to receive a discharge of debts under
Chapter 7 Bankruptcy.
Both types of bankruptcy offer certain exemptions enabling an individual
to keep particular assets. These exemption amounts and details vary. It is
important to note that certain things are almost never exempted after
filing personal bankruptcy. These include alimony payments, child support,
taxes, fines and certain student loans. In Chapter 13 bankruptcy, an
acceptable payment plan to catch up on debt repayments is required to keep
any property on which a creditor has a lien or unpaid mortgage.
Although both types of bankruptcy enable a person to stop foreclosures,
garnishments, repossessions and rid themselves of unsecured debt,
declaring bankruptcy has a severe impact on your credit history for a
period of 10 years and should only be considered as a last resort.
The experts all agree - don't file bankruptcy without first
assessing your other options. The professional paralegals at Fowler and
Fowler Credit and Debt Solutions can help.
Click here to contact us.
Click here for a FREE online credit evaluation!
No obligation - no cost!!
The Legal Information Institute offers extensive
information about
bankruptcy. |
