Bankruptcy explained in simple words
Website design By BotEap.comWithout and sometimes even in spite of proper money management and debt management measures, the end result is often bankruptcy. But what exactly is bankruptcy and what can you expect from it?
Website design By BotEap.comFiling for bankruptcy used to be a common practice to ease people’s finances easily and effortlessly at the expense of creditors. But since the Bankruptcy Abuse Prevention and Consumer Protection Act went into effect in 2005, bankruptcy filings have dropped dramatically.
The problem is that the new law has set limits too high and now few can qualify for bankruptcy relief, although no one would want to be in such a situation. Website design By BotEap.com Chapter 7 Bankruptcy and Chapter 13 Bankruptcy Website design By BotEap.comThere are two types of bankruptcy under current legislation. The two processes are completely different and should be considered as such. Chapter 7 bankruptcies provide a solution to extreme situations where the debtor can no longer pay the debt and needs to start over.
This type of bankruptcy eliminates debt by canceling a portion of the outstanding debt owed to each creditor by selling the debtor’s assets. Website design By BotEap.comChapter 13 bankruptcy, on the other hand, does not necessarily involve the sale of assets. Instead, the debtor and the creditor community, with the help of the court, negotiate new terms and establish a new payment schedule that must be feasible, affordable, and economically viable for both creditors and debtor. Website design By BotEap.comWhat if I file bankruptcy on my own? Website design By BotEap.comBy now you’ve probably heard: Why pay thousands of dollars in legal fees when you can file bankruptcy on your own? The question is, can everyone do it? The truth is that it can be done, but a lawyer will probably save you a lot of hassle and probably money as well. Legal experts are familiar with all the technicalities that can bring you greater financial ease. Website design By BotEap.comAlso, the new bankruptcy law requires you to get credit counseling before processing your bankruptcy forms. Therefore, you will already be familiar with your situation and possibilities and have enough information to decide whether or not you need legal assistance if bankruptcy is your only option.
In any case, you should always contact an attorney if you are unsure how to go about this process. Website design By BotEap.comForeclosure is a risk, be protected Website design By BotEap.comYour mortgage can jeopardize your property if you don’t pay it. Financial failure can mean you lose your property to foreclosure. If your home loan lender threatens you in any way, if you receive a notice of possible foreclosure, or even if you think something is happening because the lender is no longer trying to recover your investment, you should contact an attorney immediately. There are foreclosure lawyers specializing in these issues who will be able to help you keep your property if possible. Just remember that when it comes to this topic, time is of the essence.
The problem is that the new law has set limits too high and now few can qualify for bankruptcy relief, although no one would want to be in such a situation. Website design By BotEap.com Chapter 7 Bankruptcy and Chapter 13 Bankruptcy Website design By BotEap.comThere are two types of bankruptcy under current legislation. The two processes are completely different and should be considered as such. Chapter 7 bankruptcies provide a solution to extreme situations where the debtor can no longer pay the debt and needs to start over.
This type of bankruptcy eliminates debt by canceling a portion of the outstanding debt owed to each creditor by selling the debtor’s assets. Website design By BotEap.comChapter 13 bankruptcy, on the other hand, does not necessarily involve the sale of assets. Instead, the debtor and the creditor community, with the help of the court, negotiate new terms and establish a new payment schedule that must be feasible, affordable, and economically viable for both creditors and debtor. Website design By BotEap.comWhat if I file bankruptcy on my own? Website design By BotEap.comBy now you’ve probably heard: Why pay thousands of dollars in legal fees when you can file bankruptcy on your own? The question is, can everyone do it? The truth is that it can be done, but a lawyer will probably save you a lot of hassle and probably money as well. Legal experts are familiar with all the technicalities that can bring you greater financial ease. Website design By BotEap.comAlso, the new bankruptcy law requires you to get credit counseling before processing your bankruptcy forms. Therefore, you will already be familiar with your situation and possibilities and have enough information to decide whether or not you need legal assistance if bankruptcy is your only option.
In any case, you should always contact an attorney if you are unsure how to go about this process. Website design By BotEap.comForeclosure is a risk, be protected Website design By BotEap.comYour mortgage can jeopardize your property if you don’t pay it. Financial failure can mean you lose your property to foreclosure. If your home loan lender threatens you in any way, if you receive a notice of possible foreclosure, or even if you think something is happening because the lender is no longer trying to recover your investment, you should contact an attorney immediately. There are foreclosure lawyers specializing in these issues who will be able to help you keep your property if possible. Just remember that when it comes to this topic, time is of the essence.