Learn to Cope With the Stress of Filing Bankruptcy

When someone learns they need to file bankruptcy to eliminate their debt, they are already at their wits end. While nobody really wants to file for bankruptcy sometimes it becomes inevitable. Looking at it through your rose-colored glasses all you need to remember is that you will be virtually debt-free at the end of the bankruptcy filing. When it comes to filing bankruptcy it comes in two basic chapters, chapter 7 and Chapter 13. Filing Chapter 7 bankruptcy is best known as the liquidation chapter. This is because the bankruptcy trustee has the ability to take any property that is non-exempt and liquidate it to divide the proceeds amongst the creditors. In today's economy, rarely does anyone lose any property that is filing Chapter 7 bankruptcy. The property has to be worth a substantial amount to come under the radar of the trustee. The bankruptcy trustee weighs out the cost of collecting the items versus how much time it will take to sell and how much will be recovered. In a bad economy sometimes it's hard to liquidate property so this is taken into account. On the other side of the coin is Chapter 13 bankruptcy. A Chapter 13 is best known for its ability to protect one's real estate. In a Chapter 13 bankruptcy, the debtor and their bankruptcy attorney are required to come up with a feasible repayment plan that will last 3 to 5 years and be submitted to the bankruptcy court. When the plan is approved, the bankruptcy trustee will disperse the funds with priority debts like a mortgage getting paid first and unsecured debts, like credit cards, getting whatever's left over. Lately, Chapter 13 bankruptcy has been used in many circumstances due to the real estate bubble bursting back in 2007. Whatever chapter you decide to file, a person needs to remember that the stress of filing bankruptcy will only last for a short period of time. Many times, after filing the bankruptcy petition much of the stress is removed because of the automatic stay. The creditors can no longer contact an individual after the automatic stays put in place. The Automatic stay will stop foreclosure, lawsuits, judgments and wage garnishments. If this is what is distressing someone prior to filing bankruptcy, rest assured all of this will immediately stop and allow the individual to live quietly without worrying about being harassed by their creditors. Filing Chapter 7 bankruptcy takes about 4 to 6 months from beginning to end and Chapter 13 lasts a little longer than 3 to 5 years.

Gain Financial Freedom By Filing Chapter 7 Bankruptcy

Many people feel that filing bankruptcy is admitting failure. They see it as irresponsible and walking away from one's commitments. However, if overwhelming and unpayable debt is affecting your health, your life, your family, and your credit rating, then filing bankruptcy just may be the wisest decision one can make. Millions of Americans in fact make this same choice each year. As the economy continues to limp along, many families are barely able to put food on the table let alone pay their bills. Once families have burned through their savings trying to stay afloat they are left with no financial cushion. It was recently reported in fact that many Americans are no more than three weeks away from filing bankruptcy. People are not just living paycheck to paycheck but living personal loan to personal loan. Borrowing money to buy food, pay the rent, and hopefully make minimum payments on credit cards has been a reality for many. All this is doing is robbing Peter to pay Paul and prolonging the inevitable. One of the biggest troubling financial issues that Americans face these days is credit card debt. Credit cards can be convenient, but when overused by spending beyond one's means or used to live on, it can lead to financial disaster. More than 23 million Americans are not able to make the monthly minimum payments on their credit cards. Almost half of all credit card holders have missed at least one payment in the last year and many more are worried if they will even be able to pay their credit card bills at the end of every month. There is however, a light at the end of the tunnel. Filing Chapter 7 Bankruptcy will wipe out all unsecured debt. Unsecured debt is any debt that is not secured by property or a specific asset. This includes credit card debts, medical bills, and personal or payday loans. When an individual files Chapter 7 Bankruptcy, this sends a clear message to their creditors that they are in control at this point. As soon as the bankruptcy petition is filed with the court the automatic stay takes effect. This means that the creditors legally are prohibited from any and all contact with the debtor. This means no more collection attempts, no more harassment, no more angry phone calls from collectors. The automatic stay also puts a stop to lawsuits, judgments, wage garnishments, and even foreclosure. This will relive a huge amount of stress and allow some much needed breathing room to the debtor so that they can take a step back and get their finances in order. A Chapter 7 Bankruptcy takes about three to six months from start to finish with the debtor emerging from the Chapter 7 case debt free or close to it. The debtor can then get on with rebuilding their credit and their life. If you find yourself in a situation similar to this, with massive credit card debt and no way out, then you are certainly not alone. Consider filing Chapter 76 Bankruptcy because it just might be the best solution for your financial situation.

Chapter 7 Bankruptcy Made Easy

With 2012 now behind us and 2013 here, many people are looking at ways to get a fresh financial start in the New Year. For the millions of people that are buried in debt Chapter 7 Bankruptcy is a leading choice to make this happen. Chapter 7 Bankruptcy, or liquidation bankruptcy as it is sometimes referred to, is a quick way to eliminate unsecured debt. Chapter 7 Bankruptcy can be filed by individuals as well as businesses. The ultimate goal of filing Chapter 7 Bankruptcy and the reason why Congress created it is for the honest hard working American to gain a fresh start by eliminating overwhelming debt. A typical Chapter 7 case takes about three to six months from beginning to end. I t however begins with the actual filing of the bankruptcy petition at the bankruptcy court. The bankruptcy petition must include a detailed accounting of the debtor's income and expenses. Proof of income is required by the court in the form of bank statements, pay stubs, and tax returns. All assets and personal property must be listed. A complete list of the debtor's creditors must also be included so that they might be notified of the bankruptcy case by the court. This part of the bankruptcy case is usually the most tedious and involved for the debtor as much detailed information is required and the petition must be filled out accurately to avoid the case being dismissed. If the debtor has any doubts it is best to hire a bankruptcy attorney to prepare the Chapter 7 Bankruptcy case to ensure that the case goes smoothly from beginning to end. In the Chapter 7 case some of the debtor's property may be sold by the trustee so that the proceeds can be divided and allocated to the creditor's to pay down some of the debt. The debtor in return gets the remaining unsecured debts eliminated or erased. This is the "liquidation" aspect of Chapter 7. It is not very common for a debtor to have personal property or assets liquidated in their Chapter 7 Bankruptcy. This is due to exemption laws which are bankruptcy laws that allow a debtor to keep a certain amount of property that is deemed exempt. The property that the debtor is allowed to keep, or exempt, in the Chapter 7 bankruptcy is determined by the specific exemptions indicated under state law. Bankruptcy exemption laws vary from state to state with some states allowing for more generous exemptions to debtors than others. However, the debtor must file bankruptcy in the state that they reside in. This is another good reason to have the help of a bankruptcy attorney. Bankruptcy attorneys are very familiar with their state's exemption laws and can use them to the fullest to protect the maximum amount of personal property for their client. The attorney may even feel that it is more beneficial for their client to use federal exemptions rather than the state exemptions to protect the most for their client. Also, if the debtor owes money on a secured debt like a car or a home, the debtor can choose to give up the property in the bankruptcy case and walk from it free and clear with no financial obligations to the lender. The debtor can also choose to keep the property in the bankruptcy case as long as they can afford to continue making the payments and the lender agrees. Filing Chapter 7 Bankruptcy in the New Year can be a fast and easy solution for people that are buried in debt to get that fresh start that Chapter 7 was designed for.