| A lot of people are running into
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| | means, once again, that the various
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| financial difficulty these days -
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| | assets that you do currently possess will
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| especially with a lot of major
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| | need to be listed, by requiring you to
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| corporations going through layoffs and
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| | take a "means test," and then a decision
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| buyouts. What this means is that a lot of
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| | will be made as to what you can keep and
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| people find themselves suddenly
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| | what you cannot. Everything will fall
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| unemployed and it may take some time to
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| | under an "exempt" or a "non-exempt
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| get another good paying job. When
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| | clause." You keep the "exempt" items, and
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| financial difficulties come, and they
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| | lose the rest. The "non-exempt" items
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| stay around for awhile, the thought of
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| | will either be sold, or you will be
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| declaring bankruptcy will come into some
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| | required to pay them back. Some things
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| people's minds - especially when the debt
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| | that are not exempt are child support and
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| starts getting out of hand, with no light
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| | education costs.
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| at the end of the tunnel. Here are some
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| | The cost for declaring bankruptcy can run
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| thoughts about bankruptcy that will help
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| | up to about $1,500 for personal
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| you to make that important decision of
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| | bankruptcy. This includes the filing
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| "Should I, or shouldn't I?"
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| | charges, and the lawyer's fees. The fees,
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| What Declaring Bankruptcy Means
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| | however, are dependent upon how much of
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| Declaring bankruptcy is basically an
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| | an income you have, and it will vary from
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| indication that you are not able to pay
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| | one state to another. The process of
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| the debts that you have legally incurred.
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| | obtaining a legal declaration of
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| For this reason, and the legal
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| | bankruptcy, assuming everything is in
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| examination of your bills and the way you
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| | order, can take up to six months.
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| handle your finances, as well as the
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| | After The Declaration Of Bankruptcy
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| humiliation involved, makes it a rather
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| | Once you have obtained a legal
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| stressful process. It means that you will
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| | declaration of bankruptcy, all of your
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| have to seek credit counseling, too.
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| | creditors know where they stand. For
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| Because so many people are attempting to
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| | some, the debts are discharged, and
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| get out of their debts, for one reason or
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| | others have received what will be paid to
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| another, Congress has passed an Act,
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| | them, or they know what will soon be
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| which was signed by President Bush in
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| | coming to them. However, it also means
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| 2005, to place certain limitations on
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| | that your credit rates have been
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| declaring bankruptcy and who can do it.
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| | destroyed, and it will take years to
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| This Act, called the "Bankruptcy Abuse
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| | fully repair it. The bankruptcy is placed
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| and Consumer Protection Act," seeks to
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| | on your credit rating and will remain
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| make it more difficult to declare
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| | there for the next ten years.
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| bankruptcy and to help the creditor to
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| | What Other Options Are There?
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| receive a higher degree of compensation.
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| | If you are now in a position where you
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| This Act called for higher bankruptcy
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| | need to consider bankruptcy, then there
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| filing fees, credit counseling, and
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| | are some other options that may yet be
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| making it more difficult to file under
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| | available to you.
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| Chapter 7, making it necessary for more
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| | 1. Get Credit Counseling
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| people to file under Chapter 13
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| | By this, it means work through a debt
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| bankruptcy. Many other details are also
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| | negotiation company who will take your
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| covered in the Act that place further
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| | case to the various creditors in an
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| limitations on bankruptcy.
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| | attempt to work out some kind of a deal.
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| Two Types of Bankruptcy
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| | This could be a good step in the right
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| Filing under a Chapter 13 bankruptcy
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| | direction because creditors know that if
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| means that there is a "reorganization" of
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| | you declare bankruptcy, then they may not
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| your finances, and it does mean that you
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| | get anything. Oftentimes, they will work
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| do repay much of your existing debt. You
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| | with you.
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| are required to make a plan that enables
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| | 2. Renegotiate Your Loans
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| you to pay back a lot of your existing
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| | Once again, by talking with your
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| debt in the next three to five years.
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| | creditors, you may be able to renegotiate
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| This means the sale of some of your
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| | for better loan terms. This could give
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| properties (or all of them) in order to
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| | you a greater leeway financially that
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| satisfy the debt. It is the bankruptcy
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| | could provide just enough of an edge to
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| Trustee who will make the decision as to
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| | enable you to get through it with having
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| what needs to be sold - not you.
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| | to declare bankruptcy.
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| Filing under a Chapter 7 bankruptcy
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