A lot of times a physically and mentally tormenting stage of ailment is followed by a financially challenging situation where the patients are left to pay heavy medical bills and debt. Let
The Steps to File Bankruptcy
February 6, 2010 By Leave a Comment
If you are someone who finds himself in a difficult financial situation, you might want to consider filing for bankruptcy. Most people are not familiar with bankruptcy laws unless they have gone to law school. Before you start seriously thinking about bankruptcy, you should try all of your other options first if possible. Try working with a finance specialist on reorganizing your budget. Assess all your debt and determine how long it would take at your current salary, minus all of your necessities, to pay off your creditors.
The one thing to remember about filing for bankruptcy is that it will show up on your credit reports for up to the next ten years. This feature on your credit report will make it difficult for you to borrow money during that time period but odds are that your credit is already in bad shape if you feel like bankruptcy is your only option. Therefore, the bankruptcy court can help you obtain a fresh start.
If you need to know how to file bankruptcy, these steps will give you a basic idea on how to do so.
1) After you have explored all other options, you should hire a lawyer. Some people decide to file without a lawyer, but it is highly recommended that you have one.
2) Explore what type of bankruptcy is right for your situation. The two most common methods for the individual filing are Chapter 7 and bankruptcy Chapter 13.
Filing Chapter 13 Bankruptcy; The Easy Steps To Follow
February 6, 2010 By Leave a Comment
When you decide to file for bankruptcy you need to ensure that you are filing for the right type of bankruptcy. Chapter 13 bankruptcy is designed to help debtors make proposals and carry out a repayment plan over a certain period of time. It works best for individuals with a steady income. For you to be eligible to file under this chapter, the court has to permit you to do so based on the outcome of a means test and credit counseling course.
When you choose to file for a chapter 13 bankruptcy, there is a standard procedure that is followed. You are required to go through the credit counseling procedure, which is a recently additional requirement under the new laws. This has to be through a government approved credit counseling agency and it is done at least six months before filing the bankruptcy. It is also a necessity to pass the means test. This test measures your earning capability.
The most important part of the Chapter 13 bankruptcy is your repayment plan. It shows in detail how much you will pay towards each debt. The plan should pay back your priority debts in full. In addition, the plan must also show any leftover funds being allocated to your unsecured debts. The time span of the debt repayment depends on your income and your debt.
Once you have filed under chapter 13, your creditors cannot demand payments for what you owe them. They can only demand this through a bankruptcy court. The debtor has the advantage of reducing the creditor