Bankruptcy Laws Reflects our Varied Lifestyle Expenditure
Author: Muna wa Wanjiru
The US congress passed a set of uniform laws to govern how bankruptcy is dealt with. In these bankruptcy laws, or the bankruptcy code, there are ways to protect the debtor from being harassed while they are trying to pay off their loans. The different methods that can be used are set out in certain chapters of the bankruptcy code.
These bankruptcy chapters such as chapter 11, chapter 9, and chapter 13 are recognized by the judicial courts to be bankruptcy laws that each state must work with. While the main body of these bankruptcy laws can’t be changed there are various amendments that can be done. These amendments in turn become part of the bankruptcy laws.
From time to time Congress will change the various sections in the bankruptcy code to account for the trends and occurrences in today’s business environment. To make sure that you understand what these new bankruptcy laws are and how they affect you it is best to consult with a lawyer.
You should make sure that you are looking at these bankruptcy laws only if you have no other recourse for getting out of financial difficulties. As bankruptcy is a very complicated process you should use this measure only as a last resort.
Since congress can change the bankruptcy laws to reflect our varied lifestyle expenditure you will find that these laws can make it difficult for you to declare bankruptcy even if you are in non-solvent position to pay off your creditors.
One of the other effects that can be found in the changes that have been made to the chapter 7 bankruptcy laws is that all debtors must have credit counseling. This counseling will help the debtor understand what they can do to avoid getting into debt again. In the counseling sessions you will be given alternative routes to take with regard paying off your debts.
This credit counseling must be gone through before you can file for bankruptcy. To have this credit counseling you can only use agents that have been approved by the government. Of course you should have received a certificate that states that you have gone through with a credit counseling session.
During the credit counseling you may be presented with a plan to pay off your creditors. Whether you agree with this plan or not you will need to present this plan to the bankruptcy courts.
According to the bankruptcy laws you will need to visit this center when your bankruptcy case has been filed. This counseling session will be for you to learn about personal finance management. You must present a certificate from this session of counseling to have your debts discharged fully.
While bankruptcy laws can help protect the person who is in debt trouble, there are instances where the bankruptcy laws can cause more financial hassles than they were intended for. Therefore bankruptcy should be a last resort only.
Article Source: http://www.articlesbase.com/credit-articles/bankruptcy-laws-reflects-our-varied-lifestyle-expenditure-251723.html
About the Author
Muna wa Wanjiru is a web administrator and has been researching and reporting on internet marketing for years. For more information on bankruptcy laws, visit his site at BANKRUPTCY LAWS
michigan has a new bankruptcy law excluding credit cards from being charged off, is that true?
ive been told that there are new laws, but im unable to find them. im trying to prove somebody wrong that they can file a bankruptcy and include all of his credit card debt. so you can include a house or car or boat but not a credit card? is this true?
Can student loans be discharged under the new chapter 7 bankruptcy laws? What about credit card transactions?
which is better to do? credit cousleing or bankruptcy? also how did the bankruptcy laws chaange?
we have moved and are now having a hard time paying bills and most of our credit cards and personnal loans are 5 mths behind. we are at one (low) income and have no money to make these payments? any suggestions are welcome. i am looking for a job but in the meanwhile we are really hurting finacelly. we have even had to move in with my parents which is hard cause we have 2 children. i sure would like some help!
How did the more recent bankruptcy laws affect credit card debt?
can your debts be wiped out? is it harder to declare? does it cost more to file now? save your opinions and give facts please.
I understand that under the new bankruptcy laws, you cannot file on credit cards, is this correct?
My husband was laid off & we cannot pay our bills and are looking at all options. We owe on our house, car and the rest is credit cards.
Check the sites thoroughly. It’s an excellent site with some wonderful options for you. It will definitely help you. Have a look.
http://bankruptcy-info.we.bs/
http://www.loan-house.info/2009/09/choosing-right-bankruptcy-attorney.html
Credit counseling is much better – don’t file bankruptcy unless neither one of you have a job. Mow lawns, work at a gas station, grocery store, etc… until you can find the job you want.
Even if you can pay your bills write a letter explaining your current situation – every month – in lieu of the payment – even if you can send $10 with the letter that would be better than nothing. If you don’t send them anything they just assume you are defaulting on the loan and will treat it as such.
Once you are back on your feet and paying your bills on time write a letter to the credit bureau regarding you debts with bad credit and explain the move and loss of job. Although this won’t replace your bad credit – when creditors do look are your credit report they will see your explanation – instead of thinking you just blew off your bills
Student loans cannot be discharged at all under any bankruptcy. Credit card debt can be discharged if you qualify for chapter 7, but the big change is that most people will not qualify for chapter 7, but instead must file chapter 13 bankruptcy, which creates a 3-5 year payment plan in which all disposable income is used to pay off the debt. After the plan is fulfilled, the remaining debt is discharged.
That is incorrect. Most of my clients file for bankruptcy because of overwhelming credit card debt. You should seek counsel of a local bankruptcy attorney to see what your options are. Inaction may cost you. For example, you may be able to use your monthly payment for your home and car to offset your income and qualify for Chapter 7.
Disclaimer: Unfortunately, it is impossible to give legal advice over the internet, no matter how well researched or written. Before relying on any information I give, contact a lawyer to discuss your particular situation. I am a San Francisco bankruptcy attorney. The information given is based on California law.
As of October 2005 you can no longer file bankruptcy on any credit cards and that is in every state as far as I know. I know Michigan, Indiana, and Ohio for sure but I think it may include all 50 states. It was in the news and most backruptcy lawyers have a copy of the newpaper article in their offices. Yes it is true you can file on hospital bills, autos, or anything you owe on except credit cards.