chapter 13 bankruptcy laws

In the United States, bankruptcy is covered by federal law and bankruptcy law is extremely complex. In general, if you are considering filing for bankruptcy, it is prudent to hire an attorney to handle it for you in order to get the best arrangement your circumstances allow. They can provide all of the bankruptcy help you will need.  However, you can do this by yourself, though you will probably not get as good of a settlement as an attorney could get for you.

The first thing you should familiarize yourself with is the different types of bankruptcy and the relevant bankruptcy laws. The most common type of bankruptcy for individuals is Chapter 7 bankruptcy. Technically Chapter 7 bankruptcy results in a liquidation of all available assets and then a dispersal of the sum realized to creditors. However, since the debtor is allowed to keep essential property, most Chapter 7 Filings are “no asset” cases, meaning the debtor does not lose any actual property.  It is important that new bankruptcy laws significantly restrict who can file Chapter 7.

Chapters 11, 12, and 13 bankruptcies are basically debt restructuring plans, whereby the debtor keeps most of their property and is scheduled to pay back his creditors at fix amounts over a fixed period of time. Chapter 11 bankruptcy is available to individuals, but is usually used by companies. Chapter 12 bankruptcy only applies to family farmers and fishermen, so its scope is limited. Chapter 13 bankruptcy is popular with professionals with a stable income and many assets that they do not want to have liquidated as would be the case with a Chapter 7 filing.  Chapter 13 bankruptcy laws allow people to maintain their homes and vehicles while offering relief from credit card and other unsecured debts.

After you determine what form of bankruptcy is appropriate for you, the next step is to learn about how it works.  A good understanding of personal bankruptcy law is critical.  This involves learning about the process, what rights you have and what obligations you can expect to have imposed. Knowing what to expect and what your options are under your chosen filing chapter can help you avoid costly mistakes and problems.

Once you are familiar with everything, you can go to your local bankruptcy court, pay the filing fee, and obtain all of the relevant documents. Be very careful as you fill out the documents, carefully follow the instructions, and be completely honest. Dishonesty becomes a criminal offense once you file the documents with the court. After you have filled out all the documents, you can file them with the court yourself and then just follow all the instruction the court gives you.

You can find a lot of free consumer information online or at your local bankruptcy court detailing how the process works and what you can expect in plain language. However, assuming you can understand it, you should consider reviewing the actual bankruptcy laws themselves.

Check out his post for more information on the new bankruptcy laws! And, by the way – if you do decide that filing bankruptcy is for you, you should realize that although it will be difficult, this isn’t an end for you.  In fact, many people make major positive changes in their lives after a bankruptcy.  Some people even go to college after bankruptcy! The key is making an effort to complete after bankruptcy credit repair.

Finance & Investment Tips : What Are the New Bankruptcy Laws?

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