Welcome to Bankruptcy Guide
Personal Loan After Bankruptcy Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Understanding Bankruptcy Law
from:Like any legislation, bankruptcy law is complex which is why you should begin the process by consulting with an attorney. In a nutshell, the purpose of the law is to help individuals and businesses resolve their inability to pay their debts. Simply stated the bankruptcy court looks at all of your assets and liabilities, allows certain exemptions and then divides the net assets among the creditors. Of course, it’s never that simple because everyone’s situation is different and complications can occur at any stage.
The purpose of the bankruptcy law is to give honest people a way to get out of debt and start over again. The law does not help those who think they can simply avoid a debt they want to eliminate for whatever reason. This is an important distinction to understand. Filing bankruptcy is a serious decision with long reaching consequences on your credit, but for millions of people it is also a law that offers hope for a fresh start financially.
The bankruptcy law was revised in October 2005 largely in response to claims by creditors that it was too easy for people to claim bankruptcy just to avoid paying their bills. But if you are in serious financial trouble and cannot honestly pay your debts then the new bankruptcy law’s more stringent filing requirements will not delay your bankruptcy.
The bankruptcy law has many different sections that address both individual and business bankruptcies. The law’s intent is to distribute certain assets after statutory exemptions are excluded and then use the proceeds to pay off as much creditor debt as possible. The court determines which creditor gets what amount. All bankruptcies must go through federal district court, though each state has laws concerning the payments to creditors. This is just another example of why you need a bankruptcy attorney.
The bankruptcy law established “chapters” which merely indicates the kind of bankruptcy being filed. Chapter 7 is the one used most frequently by individuals. A court appointed trustee oversees the identification and selling of non-exempt assets and the use of the proceeds to pay debts. In reality, because assets such as a house and car may be exempted, there is often no asset liquidation required. Chapter 11 is used by large corporations that are reorganizing and need to restructure debt in order to survive. There is also a chapter 12 used by farmers and chapter 13 used by individuals asking for a court established and monitored repayment plan.
For individuals filing chapter 7 there are many different aspects to the law which can impact the final result. The law will not allow you to cancel some debts such as child support. The really good news is that you will not lose your home if your debt meets the rules for determining exempt equity. The same is true for your car. You are also allowed to retain cash accounts as long as the sum total does not exceed $10,000. The courts have recently ruled that retirement accounts like IRA’s are also exempt.
It’s easy to see that the new bankruptcy law has many complex provisions, but the goal of these statutes is to give you an honest chance to start over without a heavy debt burden. Your bankruptcy attorney will assist you throughout the entire process.
Personal Loan After Bankruptcy News
Ford to get blue oval back after second upgrade - MyrtleBeachOnline.com
Ford to get blue oval back after second upgrade MyrtleBeachOnline.com Ford posted the assets as collateral in 2006 in order to get a $23.5 billion loan and avoid bankruptcy. "This is a great day for us and is the result of several years of hard work and progress by everyone associated with Ford," Executive Chairman Bill ... |
Hospital troubles leave taxpayers on hook to pay back state loans - The New York World
 The New York World | Hospital troubles leave taxpayers on hook to pay back state loans The New York World Three hospitals have already shut their doors, and only two were able to fully pay back their loans in bankruptcy. Now three more, all in Brooklyn, are “experiencing financial crises that require aggressive action,” according to a task force convened ... |
Ex Filed Bankruptcy. What About My Motorcycle? - Fox Business
Ex Filed Bankruptcy. What About My Motorcycle? Fox Business By Justin Harelik My ex-wife shared a loan for a motorcycle with me. I have made all payments for the entire life of the loan. The ex-wife has since filed bankruptcy, well after our divorce. I have entitlement to the title at time of pay-off as ... |
Fooled by pal Petters, restaurateur now bankrupt - Minneapolis Star Tribune
 Minneapolis Star Tribune | Fooled by pal Petters, restaurateur now bankrupt Minneapolis Star Tribune Earlier this month, as Petters' last direct appeal for a new trial was denied by the US Supreme Court, Vlahos was in US Bankruptcy Court in Minneapolis making a Chapter 7 filing to wipe away more than $11.8 million in obligations. |
Putin energy "tsar" named CEO of Russia's Rosneft - Reuters
Putin energy "tsar" named CEO of Russia's Rosneft Reuters A deputy prime minister in the last government, Sechin's appointment at Rosneft resolved a final doubt over the shape of Putin's new administration, after the unveiling of a new cabinet and naming of several former ministers to senior posts on the ... |
Be sure lender reports payments to credit bureaus to build better credit - CreditCards.com
 CreditCards.com | Be sure lender reports payments to credit bureaus to build better credit CreditCards.com Credit unions and banks of all sizes offer their customers "passbook savings loans" -- named after the savings account booklets used to log withdrawals and deposits. Some banks refer to the loans as secured personal loans, savings secured loans, ... |
Will consumers take on personal credit card debt to make business purchases? - Debtmerica Relief
Will consumers take on personal credit card debt to make business purchases? Debtmerica Relief This type of debt management plan helps provide consumers an alternative to bankruptcy while reducing your outstanding debt. Credit Counseling: There are a numerous options for consumers who want to start getting their finances under control after ... |
3 years after birth of octuplets, Octomom declares bankruptcy, stands on verge ... - Washington Post
 BigPond News | 3 years after birth of octuplets, Octomom declares bankruptcy, stands on verge ... Washington Post LOS ANGELES — From Miracle Mom to Octomom and now, perhaps soon, Homeless Mom, the bizarre life of Nadya Suleman and her 14 children has been a subject that rarely fails to hit a nerve among those who have followed her personal soap opera. Octomom at crossroads facing bankruptcy |