The Facts About Personal Bankruptcy
Free Credit Repair Guide
Bankruptcy Information
Debt Consolidation
Debt Management
Credit Report Information
Bad Credit Loans
Bankruptcy
Pay Day Loans
Credit Card Payments
Credit Protection Insurance
How To Get Out Of Credit Card Debt
Home Equity Credit Lines
Understanding Personal Credit
Mortgages
Credit Card Debt Settlement
Secured Loans
Online Car Loans
Credit Counseling Services
Credit Cards
Site Map
Free Credit Repair Guide>Bankruptcy>The Facts About Personal Bankruptcy
The Facts About Personal Bankruptcy
The thought of personal bankruptcy is very frightening, however bankruptcy laws give an honest debtor a fresh start in life by relieving the debtor of most debts.
The thought of personal bankruptcy is very frightening, however over 5.4 per 1,000 people have filed for bankruptcy last year, and this rate has been growing at an average of nearly 7 percent. Researchers have determined that the primary cause of personal bankruptcy is uncontrollable levels of consumer debt oftentimes coupled with an unexpected event, such as a major medical expense not covered by insurance, the loss of a job, divorce or death of a spouse.
According to economists surveys, the classic bankruptcy filer is a blue collar, high school graduate who is the head of a household in the lower middle-income class with heavy use of credit. In order to protect both debtor, and creditor, laws were enacted to provide equal, and fair measures to satisfy the objectives of all parties. The primary purpose of the laws of bankruptcy are: (1) to give an honest debtor a fresh start in life by relieving the debtor of most debts, and (2) to repay creditors in an orderly manner to the extent that the debtor has property available for payment.
There are two types of structured plans for filing for personal bankruptcy, Chapter 7 or Chapter 13. Over two-thirds of personal filers choose Chapter 7 bankruptcy. Basically Chapter 7 requires the debtor to liquidate all non-exempt assists, and have them distributed among creditors. Some examples of exempt assists include equity in a primary residence, and a retirement program. On the other hand, Chapter 13 does not require liquidation, rather a debtor agrees to a specific payment plan, whereby a portion of any unsecured debts is paid, and the balance is forgiven. It must be stressed, that under both plans, certain debts are ineligible for bankruptcy protection. These debts include government student loans, child support, alimony, and income tax debt. These must be paid back in full.
Some analysts are concerned that this unprecedented level of debt might pose a risk to the financial health of American households. In an attempt to reverse the increasing trend in personal bankruptcy, the federal government has recently implemented sweeping bankruptcy reform legislation. On March 10, 2005, the Senate passed S. 256, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. On April 20th, President Bush signed into law the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (Bankruptcy Act of 2005). This act makes filing for bankruptcy more difficult through income-means testing, tougher guidelines for the homestead exemption, increased lawyer liability and required credit counseling.
ABOUT THE AUTHOR
Jay B Stockman is a contributing editor for Online Bankruptcy Resources Visit http://online-bankruptcy-lawyer.com/ for more information.
Free Credit Repair Guide Bankruptcy Information Debt Consolidation Debt Management Credit Report Information Bad Credit Loans Bankruptcy Credit Card Payments Credit Protection Insurance How To Get Out Of Credit Card Debt Home Equity Credit Lines Understanding Personal Credit Mortgages Credit Card Debt Settlement Secured Loans Online Car Loans Credit Counseling Services
The Credit Source
Credit And Debt Relief A One Stop Solution
Boosting Your Credit Score To Get The Best Credit
Individual Voluntary Arrangements IVA The New Debt Solution
Mandatory Credit Counseling For Those Considering Bankruptcy
Online PayDay Loans How To Gain An Advantage Over Lenders
Cut Back Credit Repair Solution
The Credit Source
The Pros And Cons Of Debt Consolidation Loans
... loan, they will take away whatever secured the loan. In most cases, this is your home. As you can see, consolidated loans are not for everyone. Before you make a decision, you must realistically look at the pros and cons to determine if this is the right decision for you. Free Credit Repair Guide Bankruptcy ...
... get paid when they collect and it's better to get their percentage on a smaller amount than "diddly squat" on the full amount. Of course, you'll have to decide what route you want to take... bankruptcy versus debt settlement but shop around and realize that you do have options. The internet is full of ...
Mandatory Credit Counseling For Those Considering Bankruptcy
... 7, many more will have to file under Chapter 13, which requires the establishment of a repayment plan. A less publicized provision of the bankruptcy bill is the one that requires debtors who are considering filing for bankruptcy to first undergo credit counseling. What does this mean for consumers? Actually, ...
Credit Card Benefits And Drawbacks
... because of credit card charges for cash withdrawals, a debit card is better if you want to use plastic to buy currency, whether over the counter or from a foreign cash-machine. You can give to charity for free if you sign up for a charity credit card. Credit cards are often cheaper than loans for short-term ...
... Credit Repair Guide>Credit Cards>Stop those Credit Card Offers! Stop Those Credit Card Offers! Get too many credit card offers in the mail? Here's how to stop them! You can stop receiving credit card offers in the mail! It's really easy to do - just phone 1-888-567-8688 and follow the prompts and provide ...
The Credit Source is part of the Find Any Info education and information network.