Millions of Americans have been overwhelmed by debt. Are you one of them and are considering filing bankruptcy, then the first step is to conduct research and discover the rules for your ability to file impact.
In 2005, the United States government, some radical changes to the current bankruptcy law. As the failure Abuse Prevention and Consumer Protection Act (BAPCPA) Noto, has changed the law, certain restrictions and requirements for bankruptcy filers.Knowledge of these changes is important as you decide if this step is right for you.
We see the guidelines for Chapter 7 and Chapter 13 bankruptcy, because these are two options for most consumers.
Chapter 7 Bankruptcy Laws
If (Chapter 7-file your complaints those that are eliminated in bankruptcy) for the entry. During the bankruptcy, is to give a white waistcoat, in relation to your credit card, there is a negativeMark on your credit report for 10 years from the date of their dismissal.
By 2005 almost all were able to file Chapter 7 bankruptcy. Today, we must be able to determine whether it is enough to deserve to pay all or a portion of your debts. Each state has its own income limits based on family size. If you live in New York and three other people in your family, then you have less than $ 77,000 must earn each year to qualify for Chapter 7.
If you pass the means test and be able to fileChapter 7, you must provide documentation on all properties. Be preserved, the courts have a limit to the property as you can. Everything is sold over the limit taken by the court, and used to satisfy creditors. However, you can not continue the way car or home, through negotiations with creditors and with the agreement that they consider to belong to the bankrupt estate.
Another change is that you must complete a credit counseling course within six months before you file. BeforeYour bankruptcy is discharged, you must stop a course of financial advice. These are available on-line and request a payment.
The cost of filing Chapter 7 bankruptcy is $ 175. However, you need several hundred dollars in legal fees.
Chapter 13 Bankruptcy Laws
Chapter 13 is very different from Chapter 7, where the main goal of both is to give the debt is removed from your credit report. In Chapter 13, your debts are not erased immediately.Instead, you work with judges to establish a repayment schedule. Will be ordered to pay a certain sum of money each month for income and expenditure. The money to pay the creditors will be distributed.
The claim process is usually three to five years - the judge is the final date was set.
As in Chapter 7, you are required to date credit and financial counseling before submitting complete and prior to discharge. They will be called again, but paymentRights relating to the consultation. You can also pay up to $ 160 in filing fees, plus legal costs.
