Credit Repair Services and Information
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, professional
credit and debt solutions can help you get your credit back! Fill out a free online
credit evaluation or consider professional credit repair services before you
file.
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. Seek advice from professional paralegals
or lawyers to assess alternative credit and debt solutions. |
