| Important points about Chapter 7 Bankruptcy Law (bankruptcy)
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Important points about Chapter 7 Bankruptcy Law
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Bankruptcy Myths
People who have debt problems very often give in to unsupported myths and hearsay without ever taking the time to truly understand the law, and the implications of bankruptcy. So those people who have huge debt need to be aware of a couple major factors before running off to file bankruptcy on a whim.
It's common to hear that bankruptcy will affect your chances of getting a line of cred... Read bankruptcy article
Can You File For Chapter 7 Bankruptcy
Most people file for Chapter 7 bankruptcy because of the three main reasons:
1. It is much faster then the other Chapters. With a little effort on your side, you can have the entire process over in next four to six months.
2. It is also simpler to file. No frequent visits to court are required.
3. There are no after payments. Once your bankruptcy is discharged that... Read bankruptcy article
Important points about Chapter 7 Bankruptcy Law
Bankruptcy Law Chapter 7 refers to the process of liquidation of a debtor's assets in order to pay debt. A bankruptcy trustee will handle your case and he will be responsible to liquidate or sell your assets that are non-exempt and distribute the proceeds among your creditors.
With bankruptcy filing at an all time high, there is a new bankruptcy law that has been passed called the "Bankruptcy Abuse and Consumer Protection Act." Many people are having a tough time with debt and are now facing new rules for filing.
One thing about Bankruptcy Law Chapter 7 is most people who qualify under it have few or no valuable assets that can be liquidated. For instance, if the equity or resale value of the house, any real estate property or a car is very little, then the owners can keep it. .
Whether or not you have assets that are worth liquidating, most of your unsecured type of debt may be erased or discharged through Bankruptcy Law Chapter 7. This may include credit cards, medical bills and personal loans. However, not all your financial obligations can be discharged such as student loans, family support and criminal fines.
An individual, married couple or a business organization can file under a Bankruptcy Law Chapter 7. The criteria for eligibility are:
* You have not received a Chapter 7 discharge in the last 8 years
* You have not received a Chapter 13 discharge in the last 6 years
* You do not have a Chapter 7 petition dismissed within the last 180 days
* You have not attempted to deceive your creditors or the bankruptcy court.
* Your income is equal or below the median income in your state. You will be required to take the means test to determine your income and eligibility.
If you are qualified to file under Bankruptcy Law Chapter 7, the first thing you are required to do is to complete a credit counseling session with an agency certified by the United States Trustee.
After counseling comes the paperwork. You will need to fill out official bankruptcy forms and prepare other documents required for filing under Bankruptcy Law Chapter 7 such as a detailed statement of your income and expense statements, a list of your assets and liabilities, current tax returns and a copy of your credit counseling certificate.
Once you have filed your petition at your local bankruptcy court, you can expect two things to happen:
First, a feature of the Bankruptcy Law Chapter 7 called the ''automatic stay' takes effect prohibiting wage garnishment, foreclosure, car repossession, and lawsuits from creditors. The law also prevents most of your creditors from calling you or sending you bills to collect payment. You can refer your creditors to your lawyer, if you have one.
Second, you will have to go to court to attend what is called the First Meeting of Creditors or 341 Meeting. Usually, this is scheduled within 30 to 40 days after filing. During this short meeting, you will be under oath and the trustee will be questioning you to find out if all information you have provided the court is complete and accurate.
Normally after 60 to 75 days following this meeting the bankruptcy court will issue the discharge. The whole process of filing for Bankruptcy Law Chapter 7 may take from 4 to 6 months and the fee costs $299.
Bankruptcy filing can be a complicated process. So, while you can do it by yourself, you may want to get a lawyer who specializes in bankruptcy law to assist you in filing and give you legal advice. Lawyer's fees vary from $600 up to $1200.
Whether you filed for Bankruptcy Law Chapter 7 or any other chapter in the bankruptcy code, there will be a record of it on your credit report for 10 years and it may take several years before you can re-establish your credit. So think hard and do your research to be certain if Bankruptcy Law Chapter 7 is what you really need.
Be sure to retain a bankruptcy attorney that will be committed to getting you fast debt relief and providing you with valuable information, services and advice to get your financial affairs in order. An attorney can help give you advice about the bankruptcy laws and what is best for your current debt situation.
Dean Shainin offers online Bankruptcy and debt advice. For more information, articles, news, tools and valuable resources on bankruptcy and debt solutions, visit this site: New Bankruptcy Law
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Bankruptcy Laws - When you are knee deep in debt
Bankruptcy laws generally protect distressed people and businesses that can no longer pay their creditors. In the United States, bankruptcy laws are placed under federal jurisdiction as stated in the United States Constitution (in Article1, Section8), allowing the Congress to enact "uniform laws on the subject of Bankruptcies throughout [all] the United States [districts]." Its implementation, however, is realized depending on the different district state laws. Nevertheless, much of the relevant statutes are already incorporated within the Bankruptcy Code, located at Title11 of the United States Code. Other statutory bankruptcy laws are found in Titles18 (crimes), 26 (internal revenue code) and 28 (judicial procedure) of the US Code.
Bankruptcy filing is at an all time high. This has caused a new bankruptcy law to be passed called the "Bankruptcy Abuse and Consumer Protection Act." Many people are having a tough time with debt and are now facing new rules for filing. You need to know what these laws pertain to.
It is a good idea to ask questions until you understand what your options are. Do not be afraid to interview a lawyer and leave without retaining one if you are not satisfied.
Features Of The US Bankruptcy Laws
An estate consists of all property interests of the debtor at the time of the filing, and which are subject to certain exclusions and exemptions. This may also include other items, including (but not limited to) property acquired by will or inheritance within 180 days after case commencement. In the case of a married person in a community property state, the estate may include some community property interests of the spouse even if the spouse has not filed bankruptcy.
Under the revised bankruptcy laws (1984) the bankruptcy judges in each judicial district function as a US bankruptcy court, a ''unit' of the US district court. Formally, each district court ''refers' practically all bankruptcy matters to the Bankruptcy Court. Yet in rare circumstances, a district court may in a particular case ''withdraw the reference' or take the bankruptcy case away from the Bankruptcy Court and decide the matter itself.
Decisions of the bankruptcy court could be generally appealed to the District Court, and then to the Court of Appeals. However in some jurisdictions, a separate court called a Bankruptcy Appellate Panel composed of bankruptcy judges hears particular appeals from bankruptcy courts.
Creditors might race to the courthouse to improve their positions against a debtor, yet a protective automatic stay is imposed at the moment a bankruptcy petition is filed. This generally prohibits the commencement of actions, judicial or administrative, against a debtor for the collection of a claim prior to the case. The stay also prohibits collection of property of the estate itself. A secured and court-permitted creditor, however, may be allowed to take the applicable collateral. Permission may be granted by filing a motion for relief from the automatic stay.
Stay-relieved secured creditors may look to the property that is the subject of their security interests. Security interests are considered liens on the property of a debtor. Yet, there still are unsecured creditors - the unsecured priority creditors and general unsecured creditors. In some cases, the debtor's estate assets are insufficient to pay all priority unsecured creditors in full, and the general unsecured creditors receive nothing.
An individual debtor (not partnership/corporation) may claim certain items of property as exempt property and keep those items (subject, however, to any valid liens). The individual debtor is allowed to choose from a Federal list of exemptions. In states where the debtor is allowed to choose between the Federal and state exemptions, the debtor can choose the rules that most fully benefit him or her.
The debtor's discharge is available in some but not all cases. For example, in a Chapter7 case only an individual debtor (not a corporation/partnership) can receive a discharge.
The discharge also does not eliminate certain rights of a creditor to setoff/offset certain mutual debts owed by the creditor to the debtor.
Not every debt may be discharged. Certain taxes owed to Federal, state or local government, government guaranteed student loans, and child support obligations are not dischargeable. (Guaranteed student loans are potentially dischargeable against the lender).
Bankruptcy laws relating to prosecutable bankruptcy fraud and other bankruptcy crimes are found in Sections151-158 of Title18 of the US Code.
The proceedings of these bankruptcy laws are covered under Title 11 of the United States Bankruptcy Code and are adopted by each bankruptcy court.
You should take full responsibility for your bankruptcy case. You are the only person that knows the facts of your case and the one most affected by the outcome. You need to educate yourself on the bankruptcy laws before filing for bankruptcy.
Dean Shainin offers online Bankruptcy and debt advice. For more information, articles, news, tools and valuable resources on bankruptcy and debt solutions, visit this site: New Bankruptcy Law
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Important points about Chapter 7 Bankruptcy Law
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