| Bankruptcy 101 |
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| Written by Ginger Taylor |
| Saturday, 24 July 2010 18:50 |
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Finding yourself in a challenging financial predicament can be stressful. Facing the potential of dealing with bankruptcy can be even more stressful.
Finding yourself in a challenging financial predicament can be stressful. Facing the potential of dealing with bankruptcy can be even more stressful. Because most people in serious debt are ashamed of their dilemma, they don't ask questions relating to the bankruptcy process. Filing for bankruptcy is one of the biggest financial decisions a business or individual will ever make, it is vital to have accurate bankruptcy information before initiating the process. The United States federal court system handles all bankruptcy information and establishes the laws regarding the process. Simply by filing a petition referred to as a Statement of Intentions, this is how the you tells the court system that they are applying for bankruptcy. Just because a person files the Statement of Intentions does not always mean they will complete the process. The courts will request credit history, creditors and the amounts of all debts, along with current and past work history. This information will be studied to establish whether or not a debtor can proceed with the court case. You are not required hire an attorney to represent you in proceedings. However, an attorney can be a terrific source of knowledge concerning bankruptcy information. A lot of people are hesitant to take on an attorney because they do not believe that they can really afford to do so. The truth is numerous bankruptcy attorneys are reasonably priced due to the circumstances. One of the major misconceptions of bankruptcy is that all possessions are taken and repossessed. Only Chapter 7 requires a total liquidation of assets. However even with Chapter 7, people are allowed exempts, or items that are necessary for living. There is a new bankruptcy law in place also known as Bankruptcy Abuse Prevention and Consumer Protection Act. This law was put to practice in 2005 to prevent fraudulent bankruptcy claims. While filing for Chapter 13 and Chapter 11, have not adjusted that much, filing for Chapter 7 has becoming increasingly difficult. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Call Janian and Associates for a free consultation with a Bankruptcy Attorney. |