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Bankruptcy Advice to Help Avoid Bankruptcy
Bankruptcy
Bankruptcy is a complicated process, including Chapter 7 bankruptcy and Chapter 13 bankruptcy options for consumers seeking to get debt relief. Unfortunately, after the passage of the Bankruptcy Reform Act in 2005, it became harder to file for a liquidation bankruptcy, and there is now more complexity to an already intimidating process.
Although it is now more difficult to qualify for a Chapter 7 and more people are required to enter into repayment plans, bankruptcy is still available to most people in need of its protection. Several types of bankruptcy are available, depending on your assets, income, and financial situation. Let Bills.com point you in the right direction, to first evaluate what your debt resolution options are, and if you can avoid bankruptcy and then to see if you can qualify for bankruptcy and what form is best suited for your needs. You will learn about the different types, the recent changes to the law, and which debts can and cannot be discharged. If you are ready to file, review our instructions on filing bankruptcy.
Be aware though, bankruptcy should be a last resort and will damage your credit for up to 10 years. Be sure to also investigate if consolidating debts is a better way to solve debt problems and protect your financial futures. Review the Bills.com debt consolidation guide to see if this is an option for you. Lastly, when it comes to bankruptcy always seek counsel from an attorney who understands your situation.
Bill's Expert Advice
Success Stories
Read a personal bankruptcy story to see how it helped one person get a fresh start on life, and learn how it can help you.
Bankruptcy Questions
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Can I file for bankruptcy myself?
Although you can file yourself, hiring a bankruptcy attorney is a better option. Filing for bankruptcy is complicated and often confusing. By hiring a professional, you ensure that the correct paperwork is filed and that the process will go smoothly. -
Will I have to sell my house if I file for bankruptcy?
Under some chapters of bankruptcy, you must sell your assets, while other chapters permit you to keep them. Whether you can keep your home depends on the amount of equity you have in the home and the chapter you qualify under. A bankruptcy attorney can advise you about your options and rights. -
Does bankruptcy discharge student loans?
In most cases, student loans cannot be discharged in bankruptcy. A bankruptcy judge can discharge them in extreme hardship situations, but this is rare and requires additional court filings.
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Glossary of Terms
Assets: Everything the debtor owns. In addition to physical property like a house or car, intangible property like stock options is included.
Automatic Stay: An injunction against debt collection is issued immediately upon filing for bankruptcy and typically lasts until the end of the proceedings.
Chapter 7: Liquidation bankruptcy. Under chapter 7, assets are sold and the proceeds are used to pay debts. This chapter is also for people without assets.
Chapter 11: Reorganization bankruptcy. Chapter 11 is commonly used by businesses.
Chapter 13: Reorganization bankruptcy. The court will order a repayment plan for individuals with the ability to repay some debts or who have debts not dischargeable in bankruptcy.
Confirmation: A court order that makes the reorganization plan binding.
Creditor: Any person or organization to whom the debtor owes money or has a legal obligation.
Discharge: The elimination of debt through bankruptcy. Some debts cannot be discharged, including student loans, child support, and tax liens.
Lien: A collateral claim against property. Mortgages and car loans are voluntary liens. Judgments and tax liens are involuntary.
Means Test: A new procedure introduced in 2005 to verify whether a person has the ability to repay debts under chapter 13 or is eligible for chapter 7.
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Articles and Advice
How to Avoid Bankruptcy
Avoid bankruptcy with these tips. You can get out of debt without resorting to this drastic measure.
New Federal Bankruptcy Law
Discover how the 2005 bankruptcy reforms affect you.
New bankruptcy laws
How to File for Bankruptcy
Learn about the steps you need to take when filing for bankruptcy.
Filing bankruptcy
Types of Bankruptcy
Learn more about the different chapters of bankruptcy and which you are likely to qualify for.
Different types of bankruptcy
Student Loans and Bankruptcy
Most student loans can't be discharged in bankruptcy. Learn why and when it is possible.
Information about student loans and bankruptcy
Bankruptcy and Assets
If you are worried about losing your house, read this explanation of bankruptcy and exempt assets.
Bankruptcy and your assets
Debt Relief Options
Review the ground-breaking report comparing your
debt relief options
including debt settlement and consumer credit counseling.
Debt Consolidation Overview
Before choosing a debt consolidation option, read our
debt consolidation overview
and make an informed decision.
Debt Relief
With so many options available, it is imperative you evaluate any
debt relief
providers you are contemplating using to ensure they measure up to their
industry's standards.
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