Bankruptcy is a legal proceeding available to a person to help
cope with a financial crisis. The main purpose of bankruptcy is to
provide a fresh financial start and give you a new lease on
By law, your creditors are not
allowed to contact you.
Garnishments are ordered
stopped as of the date of the case filing. Secured creditors such as
banks cannot foreclose on your house or car without the approval of the
people who file bankruptcy get credit within a short time of the
discharge. Although no one ever wants to have to file for
bankruptcy, those who do are in good company. Famous people who have filed
for bankruptcy include Mark Twain, Milton Hershey, and more than one
The two most used types of bankruptcy are
Chapter 7 and 13.
People who file Chapter 7 cases get a
true fresh start. Most debts are wiped from your
record. You can generally keep your cars and home if you continue to make
your payments and may sign a new agreement with the creditors on this
property. Credit cards and signature loans are usually wiped out
Chapter 13 allows you
to repay and restructure debts. This type of bankruptcy is used most often when
someone is behind on house or car payments and is attempting to stop
foreclosure. It allows for the changing of payment schedules so that
secured property can be saved.
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YOUR CREDIT AFTER
Often your credit will actually be better after
bankruptcy. A Chapter 7 case can only be filed once every eight years so
once your case is over new creditors are protected. Lately, people are
finding that they are able to get new credit soon after their discharge
and often from the same creditors they worked with before
nearly 15 years of doing bankruptcies, no client has reported having a harder
time obtaining credit after their case. One way to think of it is this:
by the time most folks file for bankruptcy protection their credit is
of People Qualify for Bankruptcy.
Whether you qualify for bankruptcy is not usually the right issue.
The real question is, “Do you even need to file?” There are
few individuals that don't qualify for some type of bankruptcy filing. This is
not always what everyone needs in order to handle a debt situation.
Changes passed in 2005 were meant
to make it more difficult to file for bankruptcy. We have seen that about
95% of individuals who would have qualified to file a Chapter 7 still are able
to file. Those that do not qualify for Chapter 7 are able to file a
Chapter 13. The question of which bankruptcy chapter is right for you
depends entirely factors specific to your case and can only be answered after a
full, free and confidential consultation with an experienced Louisiana
WHAT HAPPENS WHEN I FILE?
What will happen when you file for bankruptcy?
What can you expect? What comes next may play an important role in helping you
make the right decisions for your unique financial situation.
After you file your bankruptcy petition, an automatic stay will be
issued by the Bankruptcy Court. This prevents any type of further collection
activity and harassment by creditors or debt collectors,
including lawsuits. Garnishment, foreclosure, lawsuits, and
repo activity all stop. This is the first step in experiencing relief
from overwhelming debt.
bankrupty is not the end. Your credit rating usually IMPROVES
after a bankruptcy. You will not likely lose your home or
vehicle. Usually, your employer, family, and friends will not know about
your decision to file. Click on the link below to review the most common
myths about bankruptcy and the real truth.
BANKRUPTCY MYTHS EXPLAINED
CLICK HERE FOR UPDATED BANKRUPTCY
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