One of the most important things to say about bankruptcy is that it should always be considered as a last resort, after all alternatives have been explored.
However, it's important to say something about this idea of "last resort". True, bankruptcy is the most damaging thing you can do it your credit rating, and all other alternatives should be explored, but there is a difference between "last resort" and "delay". Many people confuse the two.
To give an example, it may be that your family or a close friend are willing to gifts you some money to get you out of a difficult Credit0 position. This is perfectly fine if the gift is acting as a sort of "bridge" to finance a gap in funding, but if it is simply money which, after it has been spent, will leave you in the same position then this is simply throwing good money after bad and bankruptcy should be considered. Another problem can be people taking out loans secured on their property, which will simply make the consequences of any bankruptcy worse than if they had claim bankruptcy before taking out the secured loans.
Fact of the matter is when your finances become as serious as this is very important that you talk to some sort of approved Credit7 counsellor or bankruptcy lawyer who can take an objective view of your finances and advise on the best course of action.
In any event, should you choose to file for bankruptcy, the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act makes a compulsory for a Credit7or to undergo credit counselling from an approved counsellor within 180 days of filing bankruptcy. Cynics say that this is simply another hoop to go through to make it harder for Credit7ors claim bankruptcy, on the other hand it could be that effective credit counselling could show the Credit7or a way of avoiding bankruptcy and its consequences altogether.
Whatever chapter you decide to file under, doing so without the backup and help of a lawyer is not to be advised. The two most common forms of bankruptcy chapter 7 and chapter 13, with chapter 7 accounting for some 93% of filings and therefore being the most popular.
It is a requirement of filing under chapter 7 that the Credit7or undergoes what is called the Means Test. This is essentially a two-part test, with the first part of the test being the "Median Test", which compares your monthly income to the median income for households of the same size in your state. If your monthly income is shown to be less than the median you pass the Median Test and may file under chapter 7.
If you fail the Median Test you then have to take the means test. The Means Test is by no means a simple document, Blackfriars a great deal of calculation and a knowledge of the various Credit0 exemptions that you are allowed. The fact is, a good lawyer bought in early to your case can very often ensure that your finances are arranged in the best way give you the best possible chance of passing the means test.
Failure of the means test means that you will then have to file under chapter 13 bankruptcy.
The difference between chapter 7 and chapter 13 bankruptcy is that in a chapter 7 filing the court trustee liquidate all the Credit7ors assets and distributes the proceeds amongst the creditors. Any Credit7 left over is no longer the responsibility of the Credit7or, the remaining Credit7 considered to be "discharged". There is often a lot of talk about losing all of one's assets under a chapter 7 bankruptcy. Given various state exemptions and the fact that the court trustee is generally not interested in assets that cannot raise significant sums of money, it is uncommon for Credit7ors to lose much of their possessions. Indeed, over 90% of cases are considered to be "no asset" cases.
A chapter 13 bankruptcy however, they still require the sale of some assets, but will pay off as much of their Credit7 as possible for over a 3 to 5 year repayment plan. The amount is determined by certain rules and depends on the amount of disposable income that the Credit7or has. Again, the calculations can be complex and a bankruptcy lawyer should be employed for the same reasons as stated above. Have
In a chapter 7 bankruptcy, bankruptcy is usually discharged after around 70 days after the meeting of creditors. A chapter 13, notice of discharge is generally issued between 30 and 60 days after completion of the repayment plan.
The bottom line when it comes claim bankruptcy, three completely honest with your lawyer and the court as regards your Credit0 position, as any subsequent irregularities can result in your case being dismissed as a return to severe Credit0 hardship.
One of the most important things to say about bankruptcy is that it should always be considered as a last resort, after all alternatives have been explored.
However, it's important to say something about this idea of "last resort". True, bankruptcy is the most damaging thing you can do it your credit rating, and all other alternatives should be explored, but there is a difference between "last resort" and "delay". Many people confuse the two.
To give an example, it may be that your family or a close friend are willing to gifts you some money to get you out of a difficult Credit0 position. This is perfectly fine if the gift is acting as a sort of "bridge" to finance a gap in funding, but if it is simply money which, after it has been spent, will leave you in the same position then this is simply throwing good money after bad and bankruptcy should be considered. Another problem can be people taking out loans secured on their property, which will simply make the consequences of any bankruptcy worse than if they had claim bankruptcy before taking out the secured loans.
Fact of the matter is when your finances become as serious as this is very important that you talk to some sort of approved Credit7 counsellor or bankruptcy lawyer who can take an objective view of your finances and advise on the best course of action.
In any event, should you choose to file for bankruptcy, the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act makes a compulsory for a Credit7or to undergo credit counselling from an approved counsellor within 180 days of filing bankruptcy. Cynics say that this is simply another hoop to go through to make it harder for Credit7ors claim bankruptcy, on the other hand it could be that effective credit counselling could show the Credit7or a way of avoiding bankruptcy and its consequences altogether.
Whatever chapter you decide to file under, doing so without the backup and help of a lawyer is not to be advised. The two most common forms of bankruptcy chapter 7 and chapter 13, with chapter 7 accounting for some 93% of filings and therefore being the most popular.
It is a requirement of filing under chapter 7 that the Credit7or undergoes what is called the Means Test. This is essentially a two-part test, with the first part of the test being the "Median Test", which compares your monthly income to the median income for households of the same size in your state. If your monthly income is shown to be less than the median you pass the Median Test and may file under chapter 7.
If you fail the Median Test you then have to take the means test. The Means Test is by no means a simple document, Blackfriars a great deal of calculation and a knowledge of the various Credit0 exemptions that you are allowed. The fact is, a good lawyer bought in early to your case can very often ensure that your finances are arranged in the best way give you the best possible chance of passing the means test.
Failure of the means test means that you will then have to file under chapter 13 bankruptcy.
The difference between chapter 7 and chapter 13 bankruptcy is that in a chapter 7 filing the court trustee liquidate all the Credit7ors assets and distributes the proceeds amongst the creditors. Any Credit7 left over is no longer the responsibility of the Credit7or, the remaining Credit7 considered to be "discharged". There is often a lot of talk about losing all of one's assets under a chapter 7 bankruptcy. Given various state exemptions and the fact that the court trustee is generally not interested in assets that cannot raise significant sums of money, it is uncommon for Credit7ors to lose much of their possessions. Indeed, over 90% of cases are considered to be "no asset" cases.
A chapter 13 bankruptcy however, they still require the sale of some assets, but will pay off as much of their Credit7 as possible for over a 3 to 5 year repayment plan. The amount is determined by certain rules and depends on the amount of disposable income that the Credit7or has. Again, the calculations can be complex and a bankruptcy lawyer should be employed for the same reasons as stated above. Have
In a chapter 7 bankruptcy, bankruptcy is usually discharged after around 70 days after the meeting of creditors. A chapter 13, notice of discharge is generally issued between 30 and 60 days after completion of the repayment plan.
The bottom line when it comes claim bankruptcy, three completely honest with your lawyer and the court as regards your Credit0 position, as any subsequent irregularities can result in your case being dismissed as a return to severe Credit0 hardship.
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