Chapter 13 Bankruptcy - Is It Right For You?

Chapter 13 Bankruptcy is a financial reorganization option available to all citizens of the United States. However, in order to be eligible to file Chapter 13, any unsecured debts you owe must be less than $307,675 and secured debts must be less than $922,975.
Drastic changes to Chapter 13 Bankruptcy laws have taken place within the past few years. Perhaps one of the most important changes is U.S. Bankruptcy Law U.S.C. 109,111, which requires individuals to obtain credit counseling from an approved credit counseling agency within 180 days prior to filing.
There are many reasons people file bankruptcy. Oftentimes, it stems from an extended period of unemployment or the inability to work due to health issues. Other times, people are forced into bankruptcy due to divorce or the death of their spouse.
Many people facing foreclosure will file Chapter 13 Bankruptcy in an effort to save their home. While filing for bankruptcy can temporarily halt foreclosure proceedings, the individual must continue making mortgage payments if he wants to retain his property.
Also known as Wage Earner's Plan, Chapter 13 allows individuals to retain their possessions and repay their debts over a period of three to five years. Borrowers can reschedule secured debts to extend and lower payments. A Trustee is assigned to handle your financial obligations and distribute payments to creditors. This encourages creditors to be more flexible in their negotiations, as they know they will be repaid.
Individuals can file Chapter 13 Bankruptcy on their own or with the assistance of an attorney. The majority of people prefer to hire an attorney to represent them and ensure all paperwork is properly filed. If an individual cannot afford an attorney, they may be entitled to pro bono legal assistance through the American Bar Association.
The first step of the bankruptcy process begins by filing a petition with the bankruptcy court in the judicial district where the debtor resides. The petition must include a list of assets and liabilities, current income and expenses, proposed repayment plan and proof of credit counseling.
Approximately three to six weeks after the Chapter 13 petition is filed, a creditors meeting will be scheduled. During this meeting, the trustee and creditors are allowed to ask the debtor questions and either accept or reject the proposed repayment plan.
Creditors must file their claims with the court within 90 days of the creditor meeting. Once these terms have been met, a hearing on the debtor's Chapter 13 repayment plan will take place in front of a Bankruptcy Judge.
The judge may either accept or reject the repayment plan or make modifications to it. Once the plan is approved, the debtor must make regular payments to the Trustee until the reorganized debts are paid in full. The debtor is not allowed to take on any new debt without first consulting with the Trustee.
Most new debt requests are denied unless they are for extenuating circumstances. An example of this would be if the debtor needed to replace an automobile or obtain a loan for college tuition or medical care.
Chapter 13 Bankruptcy is a complicated and lengthy process; however, it can significantly improve the debtor's financial situation and help them get back on track. It can keep people on an excruciatingly tight budget, so it is crucial to propose a repayment plan that you can adhere to.
Before making a final decision, it is highly recommended to conduct thorough research via the Internet or by consulting with a qualified bankruptcy attorney. Chapter 13 Bankruptcy manual and forms can be downloaded at U.S. Bankruptcy Courts.
Simon Volkov is a professional Real Estate Note Investor helping individuals who need to liquidate their real estate. Simon offers numerous investment opportunities for serious investors via RSS feed and email subscription. His website provides resources and articles on today's real estate and financial market. Learn more by visiting http://www.SimonVolkov.com
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Personal Bankruptcy

Is bankruptcy an option?
This is something that you should really only consider as a last chance option. Although it is possible to declare bankruptcy and still rebuild your life afterwards, you need to know the full truth before you make any solid proceedings in this direction.
Bankruptcy should never be a first option for anyone looking at debt and credit problems, it should always be a last option. And even then you need to be completely certain that you are willing to take that last step and deal with the consequences that will follow. So, now that I have hopefully given you an idea of how serious you need to be to even be considering bankruptcy as an option, we can take a look at it with due seriousness.
Bankruptcy
What does bankruptcy mean, and how does it affect you. Well, to begin with, you need to find out the pertinent details about bankruptcy in your own area/ state/ country.
The laws change from place to place, and before you look to file bankruptcy proceedings, you should ideally check things over with a lawyer or other such professional, to find out where you will stand after filing for bankruptcy.
The long and short of it though, is that once you file for bankruptcy, your creditors etc, will not be able to ask you for monies, or otherwise, owed to them. This is generally known as a 'stay', as in a stay of all proceedings against you, which means that your creditors cannot take action against you.
Once proceedings have moved along and you have been declared bankrupt according to the laws of your state or country, matters will then depend on what type of bankruptcy was declared to begin with. As I said, all laws regarding bankruptcy vary from place to place, but the there are generally two different forms of bankruptcy filings available to individuals, families etc.
For businesses, the forms of bankruptcy and the outcome of what they have to do, is different. You should ideally check with a qualified person dealing with bankruptcy for more information on these. You will have been required to declare at the time of filing for bankruptcy, your debts and any assets which you posses.
Generally, you will find that once you have been declared bankrupt, you are discharged from most of your debts, however, some debts will remain depending on the type of debt it is, for instance child support.
Your assets, those which are not exempt from being liquidated that is, will be sold off to discharge your debts. And depending on the state/ country etc, you will not be able to file for bankruptcy proceedings again for a certain number of years.
If you are thinking seriously about filing for bankruptcy, you should really get in touch with someone who knows what they are doing on this front, and get some qualified professional help to get you through the entire procedure.
Remember that you need to have everything in order, and that you cannot be found to be 'concealing' any debts or things, as this can be constituted as fraud. There are many things that you should learn about, before you file for bankruptcy, the least of which, is what happens to you after you have been declared bankrupt.
Debt busting ideas for fast Debt Relief The traps of debt and the many pitfalls of getting out of debt outlined here.
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How Bankruptcy Can Stop Foreclosure

When most people think of bankruptcy, they think of a Chapter 7 Bankruptcy. A Chapter 7 is when the court seizes assets and eliminates the associated debt. This type of bankruptcy can stop foreclosure, but most people want to keep their home. This is where a Chapter 13 bankruptcy can help. A Chapter 13 bankruptcy allows the homeowner to keep their home and establishes a repayment plan with the lender. During the Chapter 13, the homeowner will not have a lot of extra money, but the court will make sure they are left with enough to live on and pay their bills. A Chapter 13 bankruptcy gives the homeowner a chance to get their affairs back in order and the time needed to recover from the hardship.
Bankruptcy has been a somewhat negative topic with homeowners, but bankruptcy was designed to help people through a hardship when they have nowhere else to turn. In my experience, this is exactly the situation foreclosure victims have found themselves in. We have been brought up to believe that we should always pay our debts and to not pay for our debts is shameful. This is one reason people have such a low opinion of bankruptcy and the people who file it. But bankruptcy is a legal option that was established to help those in need. It is not shameful to file a Chapter 13 bankruptcy. It shows that you are responsible for your debts and you will do whatever it takes to pay them.
Another negative aspect of bankruptcy is that it causes a drop in credit score, but when someone is facing foreclosure, their credit score is already very low. In reality, a bankruptcy could improve a foreclosure victim's credit, or at least speed up the recovery process. The bottom line is: when a man is faced with losing his home and moving his family into the streets, he should embrace the legal system and take full advantage of any assistance it can offer.
A Chapter 13 bankruptcy is not the only option to stop foreclosure, but it is considered one of the top ways to stop foreclosure and it can be considerably less expensive than other alternatives. When compared to other options, such as loan modification, refinance, or forbearance agreements, bankruptcy is easily the fastest and most reliable option when it comes to saving your home from foreclosure.
If you are facing foreclosure then you owe it to yourself and your family to speak with an attorney and discuss the option of bankruptcy. Your initial consultation should always be free and you should never work with an attorney you do not trust, so feel free to meet with several attorneys before you make any decisions. Bankruptcy is not for everyone, but it has helped many families save their homes from foreclosure and gives them the second chance they are desperately looking for.
The ForeclosureFish website has been created to provide homeowners with mortgage foreclosure help and resources that are designed to educate them on how foreclosure works and how it can be stopped. The site contains descriptions of numerous foreclosure solutions that may be applicable, including bankruptcy, short sales, loss mitigation, and more. Visit the site to read more about the foreclosure process and how to avoid losing your home before time runs out: http://www.foreclosurefish.net/
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Getting Credit After Bankruptcy Is Easy With Secured Credit Card

Most people hate to do it and look at it as a last resort but bankruptcy is sometimes the only option for people with their backs against the will financially. Although once your bankruptcy is discharged the stress of bills may be gone but a whole new type of stress will set in. That is the stress from being denied credit. How ever there is a easy to get form of credit that not many people know about and it can help you re establish your credit fast.
What To Use For Getting Credit After Bankruptcy
The first thing any one should do when getting credit after bankruptcy is to apply for a secured credit card. A secured credit card is secured by a cash deposit that you make with the issuing company. If you fail to make the payments they take the money from the account there fore eliminating any risk on their part. The great thing about secured credit cards is that the credit reporting agencies have no way of know its a secured account so it will be scored the same as a standard credit card.
When using secured credit cards for getting credit after bankruptcy the same rules apply. You will need to keep the balance to limit ratio under 50% or your credit score could be negatively impacted. Never pay late, even though the card is secured by cash a late payment will still be reported to the credit bureaus further decreasing your score. After a period of time with good payment history many companies will turn the card over to a standard unsecured credit card and may even increase the credit limit.
Getting credit after bankruptcy with these is an easy way to rebuild your credit rating. After a period of 6-12 months many creditors will be happy to extend you credit based on your timely payments to your credit card.
Learn more about secured credit cards and rebuilding credit after bankruptcy from a Wisconsin mortgage broker who has compiled a HUGE informative financial database to help you get back on track.
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