Understand the process of bankruptcy before you file the forms by yourself or with an attorney.
To start the process of bankruptcy, a person with an unwieldy amount of debt files for bankruptcy in the nearest court. This process is normally done with the help of attorney, a person is allowed to complete the paperwork and file the petition themselves. Once the petition has been filed, the courts will issue an injunction to stop all collections activities until a meeting of creditors can be held.
Establishing a Repayment plan
At some point following the initial filing of the petition, which takes usually around 14 days, the court is going to establish a meeting where all of the creditors and the debtor are going to get together. All of the parties that believe you owe them money at this point are going to come together all at once in a single court room. Depending on what amount is owed and who the actual creditors are, some or maybe all of the creditors are going to end up making a personal appearance. Some of them may even voice an opposition to your filing for bankruptcy.
You are going to need to pass a means test where it is determined whether or not you are financial able to repay your debts by the court. If you are found to be able to pay your debts off, then the petition for bankruptcy is going to be dismissed and you are going to be told to work with your creditors so that you can establish a good payment plan. If the court ends up determining that you are not able to make the repayment obligations at this point, then the bankruptcy case is going to continue moving forward at this point.
Repayment and Discharge of the Case
After the meeting takes place with all of the creditors, then the court is going to establish your very own payment plan. In this payment plan, as a debtor you are going to be required to pay a portion of your outstanding obligation as the court establishes for you. In a standard Chapter 7 bankruptcy case, the court may actually force a liquidation of whatever non essential assets you have, and the funds generated would then be disbursed to all of the creditors in the form of a repayment. On the other hand, in a chapter 13 case the debtor is generally going to be able to maintain all of his or her belongings, but he or she is required to make fixed payments to the court via garnishment of wages for a fixed period of time that is generally between 3 and 5 years in length. Once these repayment plans have been completed the court is going to issue a discharge for the bankruptcy and then the debts are wiped away from your credit file as a result. The bankruptcy record, however, is going to remain on your file for seven years.
Photo Credits: kevindooley
Originally posted 2009-11-17 03:00:16. Republished by Blog Post Promoter
Related Posts -
Avoid Relief Shortcuts or Face These 8 Bad Credit Consequences! While no one wants to be burdened under big piles of debt, no one should want to live with the potentially life-long consequences of maintaining bad credit. A popular misconception among consumers today is that the only time a person needs good credit is when they plan to get a...... -
3 Reasons Why Paying With Cash Hurts You in the Long Term Many of us have been conditioned to think that living debt free is the only way to be. While there is some truth in this statement, if you’re completely debt free and using only cash, you’re hurting your chances of getting a new home, and you may end up in...... -
Pay Debts in the Current Economic Climate In the third quarter of the year 2008, it was noted in figures that the occurrence of personal or individual insolvencies had increased by 8.8 percent in comparison to the previous quarter. Additionally, the numbers in these figures for 2008 proved to be 4.6 higher than the third quarter from...... -
It's Time for Some Personal Budget Planning Tips Personal budget planning is an important part of keeping a handle on your finances. Because there is so much turmoil in today's economy, maintaining a healthy personal budget is more vital than ever. Crafting a personal budget begins with determining how money comes in, and how money goes out, but...... -
3 Ways to Consolidate Credit Card Debt Today's post is a guest blog by Nicole James of Debt Consolidation Care. If you are overburdened with multiple credit card bills and want a solution, then credit card debt consolidation could be the answer that you are looking for. This process combines all your multiple credit card bills into......
Related Websites -
4 Tips to Help You Start a Coin Collection If you are thinking about starting a coin collection, your first reaction will be to run to a coin shop and pick out your first coin. While this can be somewhat exciting and invigorating, it is not the proper way to start a coin collection. Those who take a calculated...... -
Coming Back After an Injury Injuries are an unfortunate part of exercise for many people, and in some cases, one bad injury can completely derail your plans for weight loss and getting fit. However, there are certain techniques that you can use to ensure that you’ll keep losing weight and getting healthier, even if you...... -
Mindset Check - Are You Ready to Lose Weight? As nice as it would be if you could simply say "Okay, I am ready to lose weight." And have it start happening, it does not really work that way. You have to be in the right mindset if you want to get the most out of your diet and...... -
Review: Complete Conditioning for Tennis Complete Conditioning for Tennis is aimed at tennis players, tennis instructors and even coaches in strength and conditioning as well as other professionals in fitness. The new edition of this book is designed to provide a complete and total foundation of conditioning for the sport of tennis, including both training...... -
Take the Biking Trip You Will Always Remember One thing many people look forward to every year is a good bike trip. There are others who have yet to take a trip of this nature. The good news is there are so many destinations for the cyclist you can always find a fun and challenging location to travel......
- Hill Case Brown Cello String Acoustic Musical Instruments
- 12 String Electric Ael2012etks Hard Case Ibanez Right-Handed Acoustic Guitar Acoustic Musical Instruments
- Standard Process Canine Supplements & Diet Exercise & Fitness
- Atkins Plan Supplements & Diet Exercise & Fitness
- Case Viola String Acoustic Musical Instruments
Categories:
bad debt, Bankruptcy, Debt
Tags:
0 comments ↓
There are no comments yet...Kick things off by filling out the form below.
Leave a Comment