It can sometimes be overly difficult to deal with financial crises without proper knowledge and advice. In such circumstances, it can be extremely beneficial to consult a knowledgeable attorney to know all about your legal rights and options. Among various debt solutions that can help overcome financial crises, bankruptcy is one of the most common and significant one. Though in most cases, people try to avoid this option owing to the various complexities involved in it, nevertheless bankruptcy can prove to be highly beneficial if used in the right situation and at the right time. An experienced legal advisor can provide assistance in deciding whether you can be benefited from it.
In case it turns out that bankruptcy is the most preferable and advantageous option in your situation, it is important to know the various rules followed by bankruptcy courts for successful petition.
Bankruptcy can only help in clearing unsecured debts such as credit cards, overdrafts, unsecured loans etc. It cannot relieve you from making payments for loans like back taxes, fraudulent loans, alimony, child support, student loans etc.
The court has made it compulsory for individuals to complete a credit counseling course under a licensed counselor before they can file for bankruptcy. During the time of filing, it is essential to submit the Bankruptcy Counseling Certificate in the court in order for your petition to be accepted. It is also necessary that the counseling course is done within a time period of 180 days before the bankruptcy filing.
Passing a means test is necessary in order to prove that an individual's annual income is not more than the median income for their family size in their state.
After filing for bankruptcy, the court makes it compulsory for individuals to complete a course on Personal Financial Management. The court has the right to shut off your case without a release in case your file the Certificate of Completion without actually completing the course.
Personal bankruptcy, which can be used only by individuals and not organizations for legally declaring their insolvency, has been divided by the bankruptcy courts into two types, namely, chapter 7 bankruptcy and chapter 13 bankruptcy. The two types of bankruptcy, differing in their rules and the ways they work, have been designed in order to cater to the requirements of different individuals having different financial conditions.
Chapter 7 bankruptcy is ideal for individuals possessing non-exempt properties that can be seized and liquidated by the court for making debt payments. Chapter 13 bankruptcy is suitable for those having a decent income even when they are facing severe debt burdens. In the latter case, the court provides individuals with a convenient payment plan that can be carried out over a definite period of time. The court decides on this repayment plan after discussing and negotiating with the creditors over matters like the payment amount and the time period allowed for making this payment.
The court does not necessarily seize all your assets if you file for bankruptcy. The various provisions in the law allow you to retain some of your properties like furniture, clothing, household items, tools, jewelries, insurance, pension funds etc.
Clear Money Solution is a reputed debt solution company providing reliable bankruptcy advice to their clients. If you are trying to file for bankruptcy in the Birmingham Bankruptcy Court or the Blackburn Bankruptcy Court, we can help you with all necessary information.
Article Source: http://EzineArticles.com/?expert=Donald_Finch
Article Source: http://EzineArticles.com/8423711
In case it turns out that bankruptcy is the most preferable and advantageous option in your situation, it is important to know the various rules followed by bankruptcy courts for successful petition.
Bankruptcy can only help in clearing unsecured debts such as credit cards, overdrafts, unsecured loans etc. It cannot relieve you from making payments for loans like back taxes, fraudulent loans, alimony, child support, student loans etc.
The court has made it compulsory for individuals to complete a credit counseling course under a licensed counselor before they can file for bankruptcy. During the time of filing, it is essential to submit the Bankruptcy Counseling Certificate in the court in order for your petition to be accepted. It is also necessary that the counseling course is done within a time period of 180 days before the bankruptcy filing.
Passing a means test is necessary in order to prove that an individual's annual income is not more than the median income for their family size in their state.
After filing for bankruptcy, the court makes it compulsory for individuals to complete a course on Personal Financial Management. The court has the right to shut off your case without a release in case your file the Certificate of Completion without actually completing the course.
Personal bankruptcy, which can be used only by individuals and not organizations for legally declaring their insolvency, has been divided by the bankruptcy courts into two types, namely, chapter 7 bankruptcy and chapter 13 bankruptcy. The two types of bankruptcy, differing in their rules and the ways they work, have been designed in order to cater to the requirements of different individuals having different financial conditions.
Chapter 7 bankruptcy is ideal for individuals possessing non-exempt properties that can be seized and liquidated by the court for making debt payments. Chapter 13 bankruptcy is suitable for those having a decent income even when they are facing severe debt burdens. In the latter case, the court provides individuals with a convenient payment plan that can be carried out over a definite period of time. The court decides on this repayment plan after discussing and negotiating with the creditors over matters like the payment amount and the time period allowed for making this payment.
The court does not necessarily seize all your assets if you file for bankruptcy. The various provisions in the law allow you to retain some of your properties like furniture, clothing, household items, tools, jewelries, insurance, pension funds etc.
Clear Money Solution is a reputed debt solution company providing reliable bankruptcy advice to their clients. If you are trying to file for bankruptcy in the Birmingham Bankruptcy Court or the Blackburn Bankruptcy Court, we can help you with all necessary information.
Article Source: http://EzineArticles.com/?expert=Donald_Finch
Article Source: http://EzineArticles.com/8423711
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