Credit Card Debt, Bankruptcy,& personal finance for doomers
Posted by admin on Mar 19, 2010
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Bankruptcy The Six Types Of Bankruptcy
Posted by admin on Mar 1, 2010
Bankruptcy is not something that someone should run out and do unless much consideration has been done as well being a last resort.
The six kinds of bankruptcy are:
Chapter 7 – this is mostly for personal and is a total liquidation
Chapter 9 – municipal bankruptcy
Chapter 11 – This is mainly used by businesses for reorganization
Chapter 12 – is for farmers or fishermen
Chapter 13 – is for people with regular income and they set up special payment plans for their payments which may not be as much as their normal payment buy they are still paying their debts back.
Chapter 14 – is a moral bankruptcy
Chapter 15 – is for international situations
Let’s elaborate more on the different types of bankruptcy. Chapter 7 is the most common bankruptcy for individual people. This is where the person gives up all of their property to a bankruptcy person who will sell off the property and use the proceeds of the sale to pay the loans companies. The person is no longer responsible for this debt and does not have to pay it back but they no longer own the property either. If there have been distrustful situations such as fraud or concealing property or records they may not be discharged from the debts they own. The person is not removed from paying child support or taxes. They are not required to give up household items needed to live or clothes. They can only apply for bankruptcy every 8 years.
With a Chapter 13 the person keeps owning all off their property but must give some of their income towards paying the loan companies over a period of years. How much they pay depends on several factors and this includes how much the person currently makes in income.
Many of the other bankruptcy cases involve businesses or are more rare.
By: Lesa Bolt
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Chapter 7 Bankruptcy Vs Chapter 13 Bankruptcy
Posted by admin on Feb 28, 2010
Petitioning a court for a judicial declaration of bankruptcy is always an option for people who simply cannot fulfill their debts because of some financial woes.
There are 2 kinds of bankruptcy: voluntary bankruptcy where the debtor himself initiates the proceedings; and involuntary bankruptcy where the creditors are the ones who initiate the proceedings to protect their interests and enforce their rights.
There are 2 kinds of voluntary bankruptcy: one which is filed under Chapter 7 of the Bankruptcy Code, and another which is filed under Chapter 13 of the same law.
Chapter 7 bankruptcy, once granted, will ask the debtor to surrender his properties – at least those which are not exempted by law – to a trustee who will thereafter liquidate the same and send the proceeds to the unsecured debtors in proportion to how much they have lent the debtor. Regardless of whether or not the liquidated properties will be enough to satisfy these debts, they will be discharged upon distribution of the proceeds. The debtor can start his financial life all over again.
Chapter 13 bankruptcy, on the other hand, works the same way, with one major difference. The debtor will be asked to satisfy a portion of his unsecured loans before he will be discharged of the same. This portion depends on the court’s judgment, taking into consideration the debtor’s financial abilities in the foreseeable future, no matter how woeful it may seem at the time of the grant of the petition.
Immediately, one would think that Chapter 7 bankruptcy is a better option.
Well, it is.
Unfortunately, it’s not up top the debtor to decide under which chapter of the statute should he file his petition for judicial declaration of bankruptcy.
The law is quite explicit when it comes to this matter. First, the petitioner’s income will be taken into consideration. If his income is below the median, then he will be allowed to file for bankruptcy under Chapter 7. But if his income is slightly above the median, he will be asked to undergo a “means test.”
This “means test” will gauge his ability to pay his debts, as well as how much of such debts he will be able to pay. This will be the basis of the terms and conditions under Chapter 13 of the Bankruptcy Law.
The above is a relatively new law passed by Congress in 2005.
A debtor is advised to seek the services of a bankruptcy lawyer so that his interests will be protected in the best way possible. An attorney will defend the petitioner against any and all attacks against his petition so that, at the end of the day, he may be declared bankrupt and his financial misery will be alleviated.
By: Joseph Then
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