What the new bankruptcy laws mean to you? A major new law will make it more difficult to declare bankruptcy.

Bankruptcy Laws: Chapter 7 & 13*

Filing for bankruptcy

is often a highly personal judgment call. For some, declaring bankruptcy is an unfortunate but realistic choice. However, many have sought debt relief, seeking a fresh start, only to discover serious and negative long-term consequences arising from the decision to file for personal bankruptcy. Generally, if you have any of these issues then filing bankruptcy is more of an option to consider:

• A short time until retirement
• More than a few dependents
• A large debt obligations
• A small amount of savings
• A large amount amount of non-dischargeable debt

It's also important to know that Bankruptcy does not wipe your credit clean and give you a fresh start as many people thinks it does. Bankruptcy should be a last resort to resolving your money problems. It should only be considered when your debt is so overwhelming and the creditors are so relentless in the collections tactics that bankruptcy should be considered as a valid option.

Chapter 7 Bankruptcy Laws

Chapter 7 bankruptcy liquidates assets and uses them to pay creditors according to which have precedence in the Bankruptcy Code. It is the quickest, simplest and the most frequently Selected kind of bankruptcy filing and you are absolved of most unsecured debts within 3-6 months of filing. Certain debts cannot be waived by Chapter 7 bankruptcy such as child support, student loans, drunk driving fines and others. When filing bankruptcy forms, you must disclose the following personal financial information to the courts:

• Income, property and assets
• Debts and liabilities
• Living expenses
• Any exempt assets or property (Bankruptcy Code)
• All property transactions for the prior two years

Chapter 13 Bankruptcy Laws

Chapter 13 bankruptcy, on the other hand, is a repayment plan in which the court binds the debtor and the creditors to terms of repayment. The debtor retains property and makes regular payments to a trustee out of future income to pay creditors over the life of the bankruptcy plan.

When filing bankruptcy under Chapter 13, you commit to partially paying off your creditors over a 3 to 5 year period but the bankruptcy may remain on your credit report for up to 10 years after you make your last payment, ruining your chances to get the credit necessary for the purchase of a home or business. Bankruptcy also can be reported for life if you apply for a job or life insurance. Agonized regrets over "what might have been" are too often the ultimate reward of filing bankruptcy.

Debt Consolidation vs. Bankruptcy

If your debts are mostly unsecured, debt consolidation makes more sense than filing for bankruptcy. A debt consolidation plan will create a budget for your realistic monthly living expenses. With the money available each month after paying these expenses, We will negotiate a repayment plan for you that may include a reduced or even zero interest rate!

Our clients, in most cases, are able to get out of debt in 3 -5 years. This alternative is greatly preferable to suffering needlessly through court mandated creditor payments, years of bad credit ratings and denied business and financial opportunities which can result from bankruptcy.

Bankruptcy Laws and Bankruptcy Information is made available to help you decide if consolidating your debts and bills with a debt consolidation plan is the right choice for you.

We have a more detailed site on bankruptcy laws Here...

Disclaimer: The information contained in this web site is provided as a service to the Internet community, and does not constitute legal advice. We try to provide quality information, and we make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this web site. As legal advice must be tailored to the specific circumstances of each case, and laws are constantly changing, nothing provided herein should be used as a substitute for the advice of competent counsel.