The New Bankruptcy Law
Here are some of the major changes you should know about.
Those who want to file a Chapter 7 Bankruptcy; he/she must
not have a regular as well as higher monthly income. Although
a higher income individual can’t file Chapter 7 form
yet he/she can apply chapter 13 to evade the repayment of
debt. Besides all debtors will have to receive credit counseling
before they can file a bankruptcy case -- and additional counseling
on budgeting and debt management before their debts can be
wiped out.
The changes made in New Bankruptcy Law.
Bankruptcy Counseling is Compulsory
These days before you go to file a bankruptcy you have to complete
credit counseling with an agency approved by the United States
Trustee's office. By accepting counseling you will get a clear
idea of whether you are eligible to file a bankruptcy or not.
You may be not in a position to repay your debt but counseling
is required. You only need to participate with the counseling
program, not to go along with any repayment plan the agency
proposes. However, if the agency does come up with a repayment
plan, you will have to submit it to the court, along with a
certificate showing that you completed the counseling, before
you can file for bankruptcy. Once your bankruptcy case is over,
you'll have to attend another counseling session, this time
to learn personal financial management. Only after you submit
proof to the court that you fulfilled this requirement can you
get a bankruptcy discharge wiping out your debts. (The website
above also lists approved debt counselors.)
File Bankruptcy get free from the clutch of Debt Collectors
Once your Bankruptcy application form has been accepted no debt
collectors can contact you to collect the debt. Filing a Bankruptcy
means your document should be submitted properly as well as
you will be received a Docket Number by the court. If you hire
an attorney under normal circumstances to represent you, the
creditors will contact your attorney. If you represent yourself,
then they are allowed to contact you even after you have filed.
Advantages of Filing Bankruptcy
The immediate benefit of a borrower in filing a Bankruptcy is
getting relaxation from paying his/her credits. Once the court
has notified to the creditors about the proceedings of Bankruptcy
no creditors will approach you in any means to repay their borrowed
money. This applies once you, or the Court, have notified them
that the filing has taken place. Another major benefit ... it
allows you to start over from scratch without burdensome debt,
and with some assets to minimize the risk of your being bankrupt
again.
Disadvantage Of Filing Bankruptcy
Although there are some benefits filing a bankruptcy yet disadvantage
is the negative impact on your credit record. Your credit
report will be negative mark up to 10 years from filing bankruptcy.
On the other hand you can only file once every 7 years for
bankruptcy.
You will be facing difficulties obtaining further loan while
buying a car, house or get other financing.
If you would allow receiving loans then your interest rates
may be higher than someone who had never resorted to filing.
On the other hand, creditors know you can't file for another
7 years, and many are quite happy to extend credit to you
right away after filing.
Bankruptcy | Advantages of Bankruptcy | Disadvantages of Bankruptcy | Chapter 7 Bankruptcy | Chapter 13 Bankruptcy | Personal Loan After Bankruptcy
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