As per bankruptcy rules and code bankruptcy filers are required to fill up a set of official forms as part of the legal module enacted to deal with individual debt problems and businesses. Bankruptcy courts have been designated for all districts across the country. These courts are headed by United States bankruptcy judges besides a judicial officer of the U.S. district court. Whether a debtor is eligible to file a bankruptcy or receive a discharge of debts is ultimately decided by the bankruptcy judge and the total administrative functions are handled by a trustee who is appointed to oversee the case. However, it is imperative for a bankruptcy filer to get proper personal bankruptcy advice prior to filing for a bankruptcy. The bankruptcy code outlines procedural requirements for a bankruptcy filing under either chapter 7, 11 or 13. When you are considering filing for a bankruptcy, you should have detailed information of qualification criteria under any of the aforesaid chapters. Here is a brief description of various bankruptcy filing processes.
Chapter 7 bankruptcy process:
When filing for personal bankruptcy, it is pertinent for you to know what is chapter 7 bankruptcy. A bankruptcy under chapter 7 entitles an applicant liquidation and discharge of personal liabilities through an orderly, court supervised procedure wherein the overseeing trustee takes over the assets of the debtor and converts them into cash to repay all the creditors. This excludes certain exempt property for which the debtor has a right to retain. Typically, a chapter 7 bankruptcy does not require the debtor to appear in the court and face the bankruptcy judge unless an objection is raised in the case by some creditor or creditors. But to qualify for a chapter 7 bankruptcy, a debtor must pass the �Means Test�.
Chapter 13 bankruptcy procedure:
If a debtor fails to pass the �Means Test� as mentioned above, he does not qualify for a chapter 7 personal bankruptcy but becomes eligible for a chapter 13 bankruptcy. However, chapter 13 bankruptcy laws are distinctly different from chapter 7 bankruptcy laws. While the debtor remains in charge of his property, he is required to repay his creditors in a time period of three to five years by proposing a plan that is approved by the creditors as well as the bankruptcy court. A debtor filing chapter 13 bankruptcy may have to appear before a bankruptcy judge to confirm the repayment plan through a formally arranged meeting at the office of the U.S. trustee which is called the �341 meeting�.
Process for chapter 11 bankruptcy:
A chapter 11 bankruptcy process deals with small business enterprises which desire to continue operating their business. The bankruptcy code provides chapter 11 bankruptcy information, according to which the process entitles small business owners with a reorganization plan that is approved by the bankruptcy court 120 days after the business files for a bankruptcy, to repay the creditors. The court has the final authority to approve or disapprove the plan of reorganization. Thus, the debtor usually undergoes a period of consolidation and emerges with much reduced debts as well as reorganized business.
There is a lot of who fail to control their credit correctly and are soon neck deep in debt. Extra than does being in debt necessarily mean that one is heading straight towards bankruptcy? Well, the condition is not consequently grim.
Even if someone is careful with his handling of cash he can still land up in debt. A checkup urgent situation or an unexpected layoff in the company can create all your plans go haywire and it might fast be hard to meet your monetary wants.
This has become quite common these days. You obtain yourself a credit card. Buy stuff using that card’s credit limit and then you don’t have enough cash to pay back the bank.
Interest that you pay on purchases completed through credit cards is quite steep and they can be as high as 18%. In certain cases it can be even extra. With such high interest rates you can get into the cycle of paying high interests and not on time payment fees. And if this continues for long you will soon land in a debt catch. Consequently it becomes imperative that you refinance your debt at a lower rate.
Consequently how do you refinance your credit card debts? There are several ways in which you can do that. You can refinance your credit card dues by opting for house equity loan.
The house equity loan is very popular, both with the investor and the creditor. The reasons are easy. The creditor sees that his loan is secured because you are putting your most prized possession on the line. As a financier you will be happy for the reason that you will be receiving generous interest rates from the creditor.
An extra option is Bankruptcy personal loans. Since personal loan has a much lower rate of interest than credit cards it will be easier for you to pay off that loan. And not only do you save on interest rates. There are quite a few fees that you require to pay regularly for your credit card. You obtain rid of that require as well.
Consequently bankruptcy is quite far away. You have got plenty of other options to exercise before that. If everything as well fails then enroll with a debt running service that will negotiate with your creditor and try to get you extra friendly rates of refund. They can get you lower rates of interest or even allow you to get away by paying only part of the loan total.
There are some instances where you will need to apply for a personal loan. This is usually not that much of a problem. This situation becomes changed if you have gone through a bankruptcy action. At this point you are considered as being a bad risk and you might have difficulties with receiving a personal loan. There are luckily enough companies who will provide you with bankruptcy personal loans.
These bankruptcy personal loans are priced at higher interest rates and you will need to work very hard to pay off this loan. In some instances you will have to sign legal documents that state that you will be held liable if you can’t pay off the personal loan.
This type of bankruptcy person loan is one that you need to think about very carefully as you are already a bad credit risk and you are just beginning to rebuild your life. For this reason you should find some information about the company which is willing to stake your bankruptcy person loan.
The various items of information that you need will be, how much of experience does the company have with dealing with bankruptcy personal loans, and what sort of help, advice and information will this company provide you with about the loan that you are looking to get.
Once you have located a company that is willing to give you bankruptcy personal loans you should get a complete list of the various services that they are going to be providing you with. You will need to break this information into small segments to see exactly what the bankruptcy personal loans company is asking from you.
This information will let you decide if the company has the knowledge and employees to give you the various documents that you need to recover your credit rating after your bankruptcy case. Having found all of this information you might want to talk with your lawyers about this bankruptcy personal loans company.
You will need to make sure that you provide your lawyer all of the information about this company that is required. Your lawyer can look the information over and let you know if you are heading for trouble with this bankruptcy personal loans company.
If there are no problems to be found in your getting credit and personal loans then you should see the various types of securities that this bankruptcy personal loans company wants from you. As you will have finished one type of bankruptcy filing you will need to be careful not to incur another bankruptcy case.