Bankruptcy Questions Free Assistive Knowledge Base

Bankruptcy Questions Free Assistive Knowledge Base

But with as much as 75% of debt cleared through debt settlement programs, and as much as 100% cleared through bankruptcy, they both provide a viable way out for those of us in real financial trouble.

The good thing about a Chapter 13 bankruptcy is that you don't have to deal with any of your creditors directly. Instead, the court-appointed trustee will handle the payments for you. You also won't have to deal with letters or phone calls from creditors while you're under bankruptcy protection (from the moment you file, even before your case is decided and closed).

If you are going to be filing for bankruptcy, you may be, or be forced to be, filing under Chapter 7. If you happen to be a business, this means that the business is going to be ceasing operations and having a Chapter 7 Trustee appointed right away, who will sell the entire assets and distribute the money to the creditors. It might or might not mean that the people who work for you will lose their jobs. Sometimes, when a company is sold off, it is kept intact or partially intact, and business might proceed as usual, simply with a different person in charge.

The documentation required for filing for bankruptcy has been increased, asking the debtor to provide additional information thoroughly detailing all of their income and expenses. If expenses exceed the IRS allowance, a ‘special circumstances' document must be submitted explaining the reasons for the extra expenses. A statement of accuracy must also be submitted with the special circumstances document. The additional documentation makes the task of filing take more time but provides more accuracy to a debtor's financial dilemma. This could result in more debt relief.

Another option is to talk about the chance of an Individual voluntary agreement. Professional IVA organizations would examine your current situation, and negotiate on your behalf for a fixed repayment plan with all your creditors. Providing they consent to this, you could discover yourself reducing your monthly costs, and carry on to pay for your debts through a much longer period.

This person will be in charge of the asset sales that are needed to return funds to the creditors. Under Chapters 7 and 11 both, a trustee is appointed to do this. Homes may be retained in this manner. Losses will be confined to business and personal assets.

Because of BK hassles, costs, and risks of violating federal law, a debtor merely starting the process of filing for BK protection causes most creditors give up and walk away, and never look back.

Get a small limit (or even a deposit based credit card - most will convert in 6 months or less if you abide by all the requirements) credit card and only charge very small amounts. Pay off your balance in full each month, and pay it off early if possible.