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Does anyone know if you go bankrupt how long does this last for and
what are the full terms to this, is there any websites realting to
this???
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On Sun, 06 Mar 2005 22:20:57 -0500, april.stewart@gmail.com (April)
wrote:
Does anyone know if you go bankrupt how long does this last for and
what are the full terms to this, is there any websites realting to
this???
There are four main categories of bankruptcy:
Chapter 7 is a "cashout." The debtor's property is identified,
anything that is not exempt from collection is handed over to the
trustee for distribution, and the debtor basic debts are discharged
(if the debtor is an individual; corporate debtors simply dissolve).
Note that liens are _not_ discharged, so if the debtor has a secured
loan, judgment, or tax lien, this may not be the best approach.
Chapter 11 is a business reorganization. A plan is developed by the
debtor and reviewed by the court; if approved, the debts are
discharged, but the debtor will need to follow through. It is
possible for a Chapter 11 business to change its management.
Chapter 12 is reserved for family farmers. It works like Chapter 13,
but has special provisions.
Chapter 13 is a consumer payoff plan. The debtor must pay the
difference between income and expenses (disregarding any debts that
will be covered under the plan) for three to five years, along with
tax refunds and any property that would be collected in a Chapter 7.
The plan must cover at least the balance of secured debts and certain
unsecured debts (taxes and child support are the most significant).
Among the benefits in a Chapter 13 is that the debtor can reduce the
balance of short-term secured loans on other than their residence to
the actual value of the collateral and will get a broader range of
debts discharged than in a Chapter 7.
(There is also a Chapter 9, which applies only to governmental units.
I doubt that more than one or two of these are filed nationally every
year.)
You can expect to have to make a full financial disclosure and will
have to attend one meeting with the trustee at which time the trustee
will take a statement on your finances. Creditors may come to the
meeting and will have the right to question you.
Generally speaking, a bankruptcy will remain on your credit report for
seven years from filing.
This message is for infomational purposes only and should not be
considered legal advice. Consult an attorney in your area who handles
bankruptcies for more detail.
Daniel Reitman
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In article <j0in21lo9l8ogq9e92ubhpv7tovra91cga@4ax.com>,
april.stewart@gmail.com (April) wrote:
Does anyone know if you go bankrupt how long does this last for and
what are the full terms to this, is there any websites realting to
this???
Legal bankruptcy is an event, not a condition or state. You
file, and if the filing is accepted, your debts are discharged
as of a certain date and time.
There is fallout to doing a bankruptcy. It stays on your
record for the rest of your life, and it stays on your credit
report for at least 10 years. You are most likely not able
to get credit for one to three years, and credit after that
is going to be expensive. It may also affect your ability
to get certain jobs and your car insurance may become more
expensive. Finally, once you go through bankruptcy, you
cannot do it again for 7 years. That means that if you
get in trouble again, discharging your debt will not be an
option.
Bankruptcy is an epidemic in the US right now. Far too
many people are using bankruptcy for small debts. Many
also use it when they have an income problem--but bankruptcy
does not help income problems, it only impacts debt. You
may want to get a 2nd opinion before you consider this step.
-john-
--
======================================================================
John A. Weeks III 952-432-2708 john@johnweeks.com
Newave Communications http://www.johnweeks.com
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On 7/3/05 3:20 am, in article j0in21lo9l8ogq9e92ubhpv7tovra91cga@4ax.com,
"April" <april.stewart@gmail.com> wrote:
Does anyone know if you go bankrupt how long does this last for and
what are the full terms to this, is there any websites realting to
this???
Chapter 7 bankruptcy "lasts for" a couple of months, assuming that the
petition has been correctly and truthfully prepared. The fact of the
bankruptcy, and an indication of what debts were discharged and what their
claimed value was, can appear on your credit report for 7 years.
Chapter 13 bankruptcy "lasts" for 3 to 5 years, during which you make
payment, usually partial payment, on unsecured debts and pay the arrears on
any secured debt as well as current installments on secured debt. A notation
of the bankruptcy and charge-offs can appear on your credit report for up to
10 years.
Chapter 11 or 12 -- well, if either of those were a likely choice you
wouldn't be asking here.
http://bankruptcy-law.freeadvice.com/credit_problems/credit_report.htm
(and lots of other sites you can find on Google. Don't be sidetracked by
false promises of "credit repair" and "free money".
In many cases bankruptcy actually improves your credit because it gets you
out of a situation in which you cannot possibly meet your obligations --
often due to illness, catastrophic loss (death, fire, divorce...), job loss,
and so on. Medical bills and divorce are the two leading factors. Credit
card debt is the third.
If you think that bankruptcy is likely or even possible, you should consult
a bankruptcy lawyer early on, long before you need to file. Pre-bankruptcy
planning is very important, to protect certain exempt assets and to protect
the assets of other members of your family.
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April wrote:
Does anyone know if you go bankrupt how long does this last for and
what are the full terms to this, is there any websites realting to
this???
There is a wealth of information online about bankruptcy. Search using
Teoma, Yahoo or any of the others.
How long potential creditors consider a personal bankruptcy is up to
them. Generally folks consider it a 'black mark' for 7 to 10 years. How
much that affects you depends on what you are doing. Around here there
are mouse houses and car lots which will happily lend / sell / finance
you within hours of your bankruptcy being final.
-paul
ianal
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Does anyone know if you go bankrupt how long does this last for and
what are the full terms to this, is there any websites realting to
this???
This should give you all the information you need.
Good luck,
David
http://www.uscourts.gov/library/bankbasic.pdf
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