Bankruptcy FAQ – Are attorneys specializing in bankruptcy law necessary for the resolution of a Chapter 7 filing?
Owing to the greater complexities of modern bankruptcy and the special exemptions of property offered by each state, it would certainly be recommended that each borrower find legal representation from a firm well experienced with practicing bankruptcy law within the borrower’s state of residence before even beginning the Chapter 7 paperwork, but attorneys are not technically required.
Bankruptcy FAQ – What do the changes to the bankruptcy code mean for everyday borrowers filing Chapter 7 bankruptcy?
Bankruptcy attorneys could spend hours elaborating upon this answer, but, as long as borrowers haven’t earned too much over the past year and show a genuine need for governmental assistance, the ordinary consumer should merely plan on taking a credit counseling course from a governmentally sanctioned agency prior to filing their bankruptcy declaration.
Bankruptcy FAQ – What happens to borrowers with excellent income histories who cannot still repay their loans?
Unfortunately, because of recent legislation, borrowers whose past incomes were too significant compared with the median levels of their state of residence shall have to either pass a highly stringent means test or consider Chapter 13 bankruptcy.
Bankruptcy FAQ – Can you select the bankruptcy chapter you wish to utilize?
Though there were always rules and regulation preventing millionaires from attempting to duck out of utility bills, borrowers actually could choose Chapter 7 or Chapter 13 for the majority of cases before the recent legal changes. The role of the bankruptcy court trustee – whose own most frequently asked questions had only to do with the accuracy of the bankruptcy petition and the surrounding paper trail – had much more import back then. Nowadays, the calcified restrictions effectively tie the hands of the trustee and decide the fate of the borrower as far as choosing chapters.
Bankruptcy FAQ – Is there any reason to choose Chapter 13 personal bankruptcy protection over Chapter 7 bankruptcy?
Yes! Chapter 7 bankruptcy’s far more familiar to residents of the United States and the notion of liquidating all consumer debts through Chapter 7 bankruptcy discharge remains the signal motivation for a preponderance of borrowers asking questions about bankruptcy in the first place, but the Chapter 7 plan does not effectively deal with secured loans at all well. Borrowers anxious to preserve their property would have to apply for Chapter 13 bankruptcy protection to ensure the best possible arbitration and revised payment schedule for mortgages or similar loans.
Bankruptcy FAQ – Chapter 13 sounds interesting. Is there a down side?
Borrowers should also be aware of the enormous powers that the court trustee could still bring to bear midst Chapter 13 proceedings. After all, the family will spend years scrapping for the crumbs of a minimal allowance meted out by state court officials who are bound by law to only examine the Internal Revenue Service’s regional estimations of costs of living.
Bankruptcy FAQ – Are there any other debt relief strategies that may produce better results?
Once borrowers recognize the diminished powers of bankruptcy protection, this is by far the most frequently asked question or FAQ about bankruptcy. Again, answers shall vary depending upon the borrowers’ financial circumstances, but the authors of this FAQ certainly recommend that every consumer growing suspicious about bankruptcy’s potential for debt resolution call up one of the certified settlement negotiation companies for a free consultation. Explaining settlement negotiation would be a whole other FAQ, but, in the absence of proper bankruptcy protection from our government, a debt relief program which cuts away half of credit card balances absent the torturous rigmarole of modern bankruptcy deserves to have questions asked about the tactic far more frequently.
The decision to reach out for help with your debt is not one that's easy to make. You were raised to "do the right thing", but now it’s nearly unbearable. You struggle along while your creditors are turning up the heat. And now you’re at the point where the late fees, penalties and interest expense make it impossible to keep your head above water.
Ask yourself this. If you could eliminate your debt without permanently damaging your credit, why wouldn't you?
