Bankruptcy Basics
Consumer Bankruptcy
Many people find themselves in financial trouble and dealing with money problems and overwhelming bills which creates so many questions about filing Chapter 7 or 13 Bankruptcy and whether Bankruptcy is something they should even consider.
Below is an article that can be found at http://www.attorneys.com/bankruptcy that gives a very basic but good overview:
"A tough economy has been overwhelming to many consumers and they are filing for consumer bankruptcy in increasing numbers. What once was discouraged as a negative stigma is now viewed as an opportunity to clear the slate and get help with a fresh start financially. Personal bankruptcy is the only answer in many individual cases. As hard as it may be to face, when financial conditions make it impossible to continue financially, it is time to call upon your consumer bankruptcy attorney. Deal with the problem now, get back on your feet and do better in the future.
Chapter 7 and Chapter 13 Bankruptcy
Of the many types of bankruptcy avenues available, two are most commonly used:
- Chapter 7 Bankruptcy - This is the most common consumer filing. It allows the bankrupt person to retain essential property. Non-exempt property is sold and proceeds distributed to creditors, but in most Chapter 7 Bankruptcy cases there are no assets.
- Chapter 13 Bankruptcy - Chapter 13 bankruptcy allows the individual to keep all or some of their assets and work out a schedule for repayments with future income.
Bankruptcy Laws
The general laws for bankruptcy are federal laws, and filings go into the US Bankruptcy Court under District Courts. While federal laws determine the procedures for bankruptcy, the state laws determine property rights for the individual. Most bankruptcy cases are voluntary, but some are involuntary when pressed by creditors.
Going bankrupt offers a fresh start for individuals and businesses. Credit offers will reappear again shortly after bankruptcy and should be used wisely if at all. The negative to going bankrupt is that the action will appear on credit history records for ten years. As soon as the attorney is involved in filing for bankruptcy, the individual will be able to put a halt to creditor calls and harassment."
To seek immediate relief form the stressful collection measures of creditors and to learn more about how we apply our expertise to produce the most cost-effective resolution for our clients, please contact Abraham | Law to schedule your free initial Bankruptcy consultation today.
Our law firm is a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code.