I need to file bankruptcy. I know there are different kinds, but can anyone tell me about the different kinds
admin | Apr 01, 2010 | Comments 8
I need to know about the different kinds of bankruptcy and what kind of payment plans there are etc. I’m about $19,000 in debt. Can anyone give me excellent information or web sites I can visit and caution me about their personal experiences with it and how much they were in debt?? Thank you!
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the boards 7 is to make rid of all debt and then the boards 11 is to make rid of debt by paying it off slowly. so the boards 11 is you agreeing to pay off your debt gradually. the boards 7 is to rid yourself of it all. but with new tariff laws, not all types of debt can be written off.
http://en.wikipedia.org/wiki/Bankruptcy#Bankruptcy_chapters
Among the many links that refer to Bankruptcy, this one clarifies it a small better.
http://chrome.law.cornell.edu/liid/wex/Bankruptcy
Bankruptcy law changed dramatically a few years back in the us. Not to sure about the different kinds now, the boards 7 writes everything off, the boards 13 is a repay plot but you don’t have to worry about selling off lofty things..thats how it used to be anyway…I filed Ch.7 for a friend who was about 60,000 in debt with medical bills back in 2003.Here are some excellent sites:
http://www.abiworld.org//AM/Template.cfm?Section=Home
http://www.uscourts.gov/bankruptcycourts.html
I’d recommend:
http://www.expertlaw.com/library/bankruptcy/filing_bankruptcy.html
Make sure anything you read takes into account the massive changes in bankruptcy that became law in Oct 2005.
Theres the boards 7 which eliminates most debt completely with the exception utilities and medical. if you have equity in your home you may not beable to use this, depends on how much you have. the boards 13 is a time set 5 years max. where you make payments to the court and repay everything. either way your credit is in the toilet. my advice to you is talk to a bankruptcy lawyer before you jump into it. with a 13 they will include thier fees with a 7 they’ll want cash up front (1500 to 2500) so what ever you do make advice before you do it. and excellent luck. if you choose to do it talk to a financial person and initiation rebuilding your credit while your in it helps
Bankruptcy choices is a very personl choice. Once you have chose on bankruptcy, then you need to choose which version.
http://www.uscourts.gov/bankruptcycourts/bankruptcybasics.html
Realize if you choose to discharge ALL debt, then that will include you liquidating any assets considered eligibile under the Bankruptcy laws in order to pay back as much as the outstanding debt as you can prior to it being discharged
If you choose on reorganization, it means re-payment fo certain debts within a 5 year plot period. Your $19k will estimate no less than $317 per month, but; that does not included other fees such as the Bankruptcy Trustee who receives payment on behalf of the Bankruptcy Court. Estimate another 5% of the total balance under the re-organization plot.
The fee to file for court costs which ranges depending on what you are filing ( http://www.uscourts.gov/bankruptcycourts/fees.html ). After that, additional costs will vary if you choose on a bankruptcy lawyer or another agency to help you. I do recommend the help of another person more familiar with today’s new requirements especially if you are seeking re-organization. If you do not have ALL the elements required to show bankruptcy justification, then they can turn you down and you have to initiation all over.
Things to start amassing for bankruptcy.
1. Last 2 years proof of income. W2 or 1099 with IRS filing copies. Last year of payroll stubs since those have not been filed so far to IRS.
2. 1 years worth of Bank statements of ALL accounts which will include any accounts you are named as secondary or authorized person to access
3. ALL Credit card balances both secured and unsecured credit and their monthly smallest payments. go to an online site for a emancipated credit report to pull all your outstanding debt which may include ones you were uninformed that you can either contest or include.
4. Outstanding hospital or medical bills
5. Outstanding personal loans
6. Outstanding mortgage/car loan balances and their monthly payments
7. Personal loans to you from friends/family tree (you will need the remitting addresses of all outstanding bills and loans as they will hear authoritative notification from the courts)
8. Last 6 months of utiltiy bills
9. Last 6 months of Internet/Cable bills
10. Last 6 months of ALL phone bills. Land line and Mobile/Wireless devisces
11. List of all assets. Re-sale value of EVERYTHING you own. Clothes, DVDs, Computer software, computer systems, TVs, furniture, appliances, etc. Each will have to be itmized on an inventory list.
12. Credit debt counseling prior to bankruptcy approval by an approved agency ( http://www.uscourts.gov/bankruptcycourts/approvedagencies.html ). Each agency is not subject to a specific dollar amount charge. They vary. So shopping is key. Aanother sub link to place in your State for approved agencies in your area ( http://www.usdoj.gov/ust/eo/bapcpa/ccde/de_approved.htm ). If Springboard is on your list for approved counselors for your area, then they are the most reasonable in cost. They only charge an exra nominal fee for joint filing where others charge another full individual cost http://www.credit.org/
You do have to make re-culture debt counseling from the same people once your bankruptcy has been approved for re-organization. Re-organization does not mandate liquidation of assets but you must declare them should you default on the repayment plot which would mandate liquidation. Reorganization does not necessarily include ALL debt as the courts will base it on a ratio of debt to income. Those that can be immediately discmissed on the credit repay list or a cut-rate repay figure must be honored by the companies unnatural as it is federally court ordered.
Also, realize some banks, credit cards, and other entities may stop your accounts once they have been told. I contacted my bank to make sure there was not going to be a freeze of my exisiting assets and took the name and dated and time I called on my documentation. they stated they would not since I was not including my line of credit with them on the re-pay plot.
Make sure all paperwork figures are accurate on the balances before signing any ID or the re-organization could be in jeopardy or you end up with a higher repay program. The otehr problem is , they fortuitously house all a credit entity which would exempt them from the bankruptcy rules because they were not told. After your filing is authoritative, your credit people cannot contact you for payment. If they fortuitously do, then caution them of your filing. After you have told them, then they are not to contact you anymore. If they continue, then they are in violation.
Excellent luck and much prayers.
The The boards 7 bankruptcy is applicable if you have no regular sources of income. It works by reducing or clearing off all your debts. You can then make a fresh initiation without having to worry about having to pay your debts.
Once you file for The boards 7 bankruptcy, the bankruptcy court assigns a trustee who works as an intermediary between you and the debtors. He oversees everything and checks out if the bankruptcy plot is going as intended.
http://make-out-of-the-debt-trap.com/category/Information-on-The boards-7-Bankrupt.html