What is Bankruptcy? -

Home
>
Debt Relief
>
What is Bankruptcy?

What is Bankruptcy?

Personal bankruptcy is a legal way to give people with overwhelming debt a fresh financial start. However, it is important to realize that certain forms of debt, such as student loans, are not forgiven through the bankruptcy process. Bankruptcy can have a devastating impact to your credit report and credit score. Bankruptcy will often remain on your credit report for as long as 10 years. During this time it can be next to impossible to obtain loans or any type of credit. If you are able to find a lender that is willing to do business with you, you will pay the highest possible interest rates allowed by law.

Quite often, lawyers are quick to suggest bankruptcy but, they don't always explain how damaging bankruptcy can be. Why would a lawyer do this? The answer is simple; If you don't file for bankruptcy, they don't get paid. The best thing that you can do is obtain independent information if you are considering bankruptcy. This way you become informed in an unbiased manner.

There are two forms of bankruptcy:

Chapter 13 involves reorganizing your debt in such a way that you a can keep the property you might otherwise lose, For example, a car or home. Chapter 13 will allow you 3-5 years to pay-off the items you have as opposed to losing them entirely.

Chapter 7 is the most straightforward form of bankruptcy. It involves liquidating all of your assets. However, this can depend upon the laws for the state in which you live. Traditionally, a court appointed representative will sell your personal property or it will simply be returned to the creditors that you owe money to. Federal law only allows consumers to file for Chapter 7 bankruptcy every six years.

Alan Barnes
IAPDA Certified Debt Arbitrator
President and CEO of Debt Regret
http://www.debtregret.com

In The News:

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.punchng.com/Articl.aspx%3Ftheartic%3DArt200810022181839cid=1253130373ei=CLnvSNSNI6Xg6gOo-ZW7Bwusg=AFQjCNEziNroVEKPLlkiDiMwoSi45P3lzAHow FG spent N308.3bn bdebt relief/b funds/abrfont size=-1font color=#6f6f6fThe Punch,nbsp;Nigerianbsp;-/font nobrOct 1, 2008/nobr/fontbrfont size=-1By John Ameh, Abuja Nigeria realised and saved an estimated N308.3 bn from its bdebt relief/b efforts after the Paris Club wiped off its $19.3bn bdebt/b in June b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.thisdayonline.com/nview.php%3Fid%3D124091cid=1253130373ei=CLnvSNSNI6Xg6gOo-ZW7Bwusg=AFQjCNGs-w9BQHJyehMO_s2_w21fkDDRkQFG Spends N2.4 bn bDebt Relief/b Fund on Education –W’Bank/a font size=-1 color=#6f6f6fnobrTHISDAY/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1253130373hl=ennobrall 6 news articles/nobr/a/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.business-standard.com/india/storypage.php%3Fautono%3D336336cid=1253871156ei=CLnvSNSNI6Xg6gOo-ZW7Bwusg=AFQjCNHspZV-RULm2qXbfRCNXjKjxwTBdQBanks get brelief/b on farm lending, bdebt/b waiver/abrfont size=-1font color=#6f6f6fBusiness Standard,nbsp;Indianbsp;-/font nobrOct 3, 2008/nobr/fontbrfont size=-1The government today decided to ease the burden on banks on account of the farm bdebt relief/b package and subsidised short-term agricultural loans. b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.hindu.com/2008/10/04/stories/2008100450270100.htmcid=1253871156ei=CLnvSNSNI6Xg6gOo-ZW7Bwusg=AFQjCNHB7lHQKUSvzCZ6DGi4Z16HTgF0AAFarm lending comes to a halt/a font size=-1 color=#6f6f6fnobrHindu/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1253871156hl=ennobrall 2 news articles/nobr/a/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20080924/money_bush_080925/20080925%3Fhub%3DTopStoriescid=1254976631ei=CLnvSNSNI6Xg6gOo-ZW7Bwusg=AFQjCNFbw8YTcEqH3fEPPD1GOkrFI-Jodgimg src=http://news.google.com/news?imgefp=MFsKLY8KlVoJimgurl=images.ctv.ca/archives/CTVNews/img2/20080924/160_ap_bernanke2_080924.jpg width=80 height=60 alt= border=1brfont size=-2CTV.ca/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.boston.com/business/articles/2008/10/09/bay_state_businesses_yet_to_feel_much_reliefcid=1254976631ei=CLnvSNSNI6Xg6gOo-ZW7Bwusg=AFQjCNHNPWgq0RulLEa2zvr3ruqZ9cruDQBay State businesses yet to feel much brelief/b/abrfont size=-1font color=#6f6f6fBoston Globe,nbsp;United Statesnbsp;-/font nobrOct 8, 2008/nobr/fontbrfont size=-1quot;It#39;s really dried up,quot; said Mitch Appelbaum, an attorney at WilmerHale who arranges bdebt/b transactions for companies. quot;We haven#39;t seen any short-term deals b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.businessweek.com/bwdaily/dnflash/content/oct2008/db2008107_765385.htm%3Fchan%3Dinvesting_investing%2Bindex%2Bpage_top%2Bstoriescid=1254976631ei=CLnvSNSNI6Xg6gOo-ZW7Bwusg=AFQjCNHesfgoCQ5FVxHefkrtC5gjw5OBeQThe Fed#39;s Commercial Paper Chase/a font size=-1 color=#6f6f6fnobrBusinessWeek/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloomberg.com/apps/news%3Fpid%3D20601103%26sid%3DaR2M6VwAMN1k%26refer%3Duscid=1254976631ei=CLnvSNSNI6Xg6gOo-ZW7Bwusg=AFQjCNFJu2KQAl2LiuU2crmSXON3v5wnggCalifornia, States Seek bRelief/b With US Commercial Paper Plan/a font size=-1 color=#6f6f6fnobrBloomberg/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.marketwatch.com/news/story/treasurys-fall-after-talk-fed/story.aspx%3Fguid%3D%257B2702ECA4-391C-4288-8413-4FE91D5AF57A%257D%26dist%3Dmsr_6cid=1254976631ei=CLnvSNSNI6Xg6gOo-ZW7Bwusg=AFQjCNG-r2Jw9GrirqloK6G-yx7pVEsE1gBonds off after talk of rate cuts, Fed moves/a font size=-1 color=#6f6f6fnobrMarketWatch/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.financialweek.com/apps/pbcs.dll/article%3FAID%3D/20081007/REG/810079971/1028cid=1254976631ei=CLnvSNSNI6Xg6gOo-ZW7Bwusg=AFQjCNFA9ugqbaIzkV6JzSHuskYYL2lxhgnobrFinancialWeek (subscription)/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.reuters.com/article/topNews/idUSTRE4964S420081007cid=1254976631ei=CLnvSNSNI6Xg6gOo-ZW7Bwusg=AFQjCNFI5Fe05lJcez_lxI1wc-oqYUZO-wnobrReuters/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1254976631hl=ennobrall 1,600 news articles/nobr/a/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.expressbuzz.com/edition/story.aspx%3Fartid%3DdOO8vR0lGns%3D%26Title%3DDebt%2Brelief%2Bpanel%2Bto%2Bexplore%2Bpossibilities%26SectionID%3D1ZkF/jmWuSA%3D%26MainSectionID%3DwIcBMLGbUJI%3D%26SectionName%3DX7s7i%257CxOZ5Y%3D%26SEO%3Dfarmer,loan,waivercid=0ei=CLnvSNSNI6Xg6gOo-ZW7Bwusg=AFQjCNHbGVUYbIVkfr4GFu0X9nTTYonIfAbDebt relief/b panel to explore possibilities/abrfont size=-1font color=#6f6f6fExpress Buzz,nbsp;Indianbsp;-/font nobrOct 4, 2008/nobr/fontbrfont size=-1THIRUVANANTHAPURAM: The Kerala State Farmers’ bDebt Relief/b Commission, constituted to give the much-needed succour to the farm sector, is kicking off the b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.expressbuzz.com/edition/story.aspx%3Fartid%3DBCxTluvFWgE%3D%26Title%3DMemorandum%2Bon%2BDebt%2BRelief%2BScheme%26SectionID%3D1ZkF/jmWuSA%3D%26MainSectionID%3DfyV9T2jIa4A%3D%26SectionName%3DX7s7i%257CxOZ5Y%3D%26SEO%3Dcid=0ei=CLnvSNSNI6Xg6gOo-ZW7Bwusg=AFQjCNH2acFhoq7H-EIm0AOcCWj0y8ZmTwMemorandum on bDebt Relief/b Scheme/abrfont size=-1font color=#6f6f6fExpress Buzz,nbsp;Indianbsp;-/font nobrOct 3, 2008/nobr/fontbrfont size=-1PALAKKAD: The Deseeya Karshaka Samajam has demanded in a memorandum to Union Finance Minister P Chidambaram that some provisions in the bDebt Relief/b Scheme b.../b/font/div/font/td/tr/table

debt relief - Google News