|
|
| US Bankruptcy Laws Resources |
|
|
|
| Houston Texas Bankruptcy Lawyer |
|
Money isn't the most important thing in life, but it's reasonably close to oxygen on the "gotta have it" scale. Zig Ziglar
Bankruptcy Laws
The US congress passed a set of uniform laws to govern how bankruptcy is dealt with. In these bankruptcy laws, or the bankruptcy code, there are ways to protect the debtor from being harassed while they are trying to pay off their loans. The different methods that can be used are set out in certain chapters of the bankruptcy code.
These bankruptcy chapters such as chapter 11, chapter 9, and chapter 13 are recognized by the judicial courts to be bankruptcy laws that each state must work with. While the main body of these bankruptcy laws cant be changed there are various amendments that can be done. These amendments in turn become part of the bankruptcy laws.
From time to time Congress will change the various sections in the bankruptcy code to account for the trends and occurrences in todays business environment. To make sure that you understand what these new bankruptcy laws are and how they affect you it is best to consult with a lawyer.
You should make sure that you are looking at these bankruptcy laws only if you have no other recourse for getting out of financial difficulties. As bankruptcy is a very complicated process you should use this measure only as a last resort.
Since congress can change the bankruptcy laws to reflect our varied lifestyle expenditure you will find that these laws can make it difficult for you to declare bankruptcy even if you are in non-solvent position to pay off your creditors.
One of the other effects that can be found in the changes that have been made to the chapter 7 bankruptcy laws is that all debtors must have credit counseling. This counseling will help the debtor understand what they can do to avoid getting into debt again. In the counseling sessions you will be given alternative routes to take with regard paying off your debts.
This credit counseling must be gone through before you can file for bankruptcy. To have this credit counseling you can only use agents that have been approved by the government. Of course you should have received a certificate that states that you have gone through with a credit counseling session.
During the credit counseling you may be presented with a plan to pay off your creditors. Whether you agree with this plan or not you will need to present this plan to the bankruptcy courts.
According to the bankruptcy laws you will need to visit this center when your bankruptcy case has been filed. This counseling session will be for you to learn about personal finance management. You must present a certificate from this session of counseling to have your debts discharged fully.
While bankruptcy laws can help protect the person who is in debt trouble, there are instances where the bankruptcy laws can cause more financial hassles than they were intended for. Therefore bankruptcy should be a last resort only.
Bankruptcy Lawyer Southern California
Is Declaring Personal Bankruptcy the Step You Need To Take to Get Out of Debt?
By Dee Power
 Personal bankruptcy is not the only alternative to getting out from under mountains of debt. Consider it a last resort. It will follow you for seven years on your credit report and forever as a federal court document. Court documents are open to the public.
Many job applications ask if you've ever declared bankruptcy, even if it's been discharged and years ago you still have to answer yes.
However, many people have found great advantages in doing so. If you are struggling financially, this option just might be what you are looking for.
There are two major advantages of filing for personal bankruptcy. They are eliminating calls from creditors, at all hours of the day and protecting your property.
Once you have officially filed for bankruptcy your creditors can no longer contact you in regard to your unpaid debts, nor can they legally attach your wages. They must, instead, abide by federal bankruptcy law and attempt to obtain reimbursement.
Property protection is important. In the majority of personal bankruptcy cases debtors are allowed to retain property such as their residence and automobile. Unfortunately, many individuals forego filing for bankruptcy because they are under the mistaken impression that they will lose everything.
This action will sometimes give you the advantage over the creditors who continuously contact you for payment, as well. Since they are responsible for obtaining their own legal representation when attending the meeting of creditors, many times they will write off the debt in lieu of paying for an attorney.
Filing for personal bankruptcy immediately puts a stop to events such as utility shutoffs, evictions, repossessions and many types of lawsuits. A word of warning if you're involved in a lawsuit that may result in you paying financial damages, wait until after the lawsuit to file. For individuals who have been constantly struggling to stay afloat, this is a relief beyond compare.
Before taking that final step look at other methods of reducing your debt. Call your creditors and see if they'll accept a lesser amount to pay off a debt in full. Cut back on expenses that aren't necessary. Perhaps you could give up your afternoon gourmet coffee drink or pack your lunch instead of going out to lunch. Sell assets and use the proceeds to pay down debt. Even consider a part time job.
If you find yourself in financial crisis, consider the possibility of personal bankruptcy but keep in mind it is a last resort.
Do you need a loan, credit card, or grant? Want to know about other ways to find money? Find out more at 58 Ways to Find Money or go to Credit Cards and You
Dee Power has co-authored several nonfiction books including Business Plan Basics, Inside Secrets to Venture Capital and Attracting Capital From Angels
|
|
|
|
