BANKRUPT-C

We are dedicated to finding the most up to date bankruptcy information in order to help educate you.  We will continue to post new information as we get it and post it here for your reference.

  Mandatory Credit Counseling for Those Considering Bankruptcy    

Most Americans are aware of the sweeping changes in U.S. bankruptcy law that were made by Congress recently. These changes, strongly supported by the credit card industry, were designed to make it more difficult for Americans to file for bankruptcy under Chapter 7 of the Federal bankruptcy code. Chapter 7 allows consumers to essentially have all of their debts wiped away by the court. While many people will still be able to file under Chapter 7, many more will have to file under Chapter 13, which requires the establishment of a repayment plan. A less publicized provision of the bankruptcy bill is the one that requires debtors who are considering filing for bankruptcy to first undergo credit counseling. What does this mean for consumers?

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Taking The Plunge Into Bankruptcy 

Bankruptcy is one of the most difficult things a person has to do. The decision to file bankruptcy is a hard one. Is it moral to wipe your slate clean through bankruptcy? Is there any way for you to avoid bankruptcy? While everyone has their own opinion on bankruptcy, bankruptcy is often the only option some people and families have. So, what do you do when you are in the midst of being bankrupt? What are your options at this bankruptcy point?

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Life after Filing Bankruptcy

Filing for bankruptcy will undeniably have a great impact on your credit but sometimes it becomes the only option. It is important to evaluate the budgeting and financial mistakes that helped lead you to this direction. While we realize you didn’t get there on purpose you should self examine your spending habits and start working on ways to rebuild your credit. Yes you heard us right; you can still work on rebuilding your credit even AFTER filing a bankruptcy. But, it will take time and perseverance on your part.

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Chapter 7 Explained

Chapter 7 often means the liquidation of a persons non exempt property. Upon the sale of this property, creditors get a distribution or share of the proceeds. The assets which are covered under existing liens or mortgages are already promised to the issuing creditor. This may sound like everything you own is subject to sale or to be confiscated, but the court does protect the individual as well. Only those assets that are deemed by the bankruptcy court will be liquidated, the remaining assets will stay in the custody of the bankruptcy filer.

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