In general, you can choose the type of bankruptcy for filling, under certain circumstances you may only eligible for certain type of bankruptcy filling. In most cases, debtors will choose chapter 7 for filling because it’s fast, effective, easy to file, and doesn’t require payments over time. Chapter 7 bankruptcy usually takes the least time to complete. Other common types of bankruptcy filling include chapter 12 and chapter 13.
Yes, you can choose the type of bankrupt filling but you may not eligible for it. Let see the criteria of filling for a few common bankruptcy types. Bankruptcy – Chapter 12
If you are a farmer or a fisherman, for instance, you may consider chapter 12 filing. Chapter 12 bankruptcy filling is tailored for “family farmers” or “family fishermen” with “regular annual income”. It is more streamlined, less complicated, and less expensive than chapter 11 (bankruptcy filling for large corporate reorganization).
Chapter 12 has allowance for situations in which family farmers or fishermen have income that is seasonal in nature. Thus, debtors with seasonal income will find it to be advantageous to file their bankruptcy under chapter 12. In additional, Relief under chapter 12 is voluntary, and only the debtor may file a petition under the chapter. Bankruptcy – Chapter 7
Beside the farmer and fishermen, most ordinary debtors will choose chapter 7 as their bankruptcy filling type. The key factors of the popularity of this bankruptcy type are it does not need payments over time, easy to file and less expensive. However not every persons who are seeking of getting debt free by filling bankruptcy will be eligible to file under chapter 7. To be eligible for chapter 7 bankruptcy filling, you must meet the below criteria:

Bankruptcy is often the choice that many people lean towards when they are severely and overwhelmingly in debt. Bankruptcy can be seen as an easy way out of debt issues though it is truly a last resort method to debt freedom. There are pitfalls and downsides to bankruptcy.
Bankruptcy can relieve you from financial debt and obligation, but does come with a price. You do have to pay a bankruptcy attorney, usually a minimum of $200.00. On top of this fee you will have permanent results to your credit report. For the next 10 years, both chapter 7 and chapter 13 bankruptcies appear on your credit report. Eighty percent of all credit reports carry errors that can harm your chance of a home loan, car loan or personal loan. Some employers require a credit report for position consideration. Poor credit reports showing unsatisfactory payment history can keep you from receiving a job. Newspapers will often carry a section releasing bankruptcy information, since bankruptcy is public knowledge. This could lead to embarrassment from friends, family and co-workers.
Though bankruptcy is not a process in which a person should be ashamed society does often frown upon it. With pitfalls being attached to bankruptcy a better choice perhaps may be debt consolidation. You can have all of your credit cars and unsecured debts consolidated into one easy monthly payment. You can pay down your debts and regain control over your finances. The choice is up to each individual and decisions vary upon the situation. It is best to speak to both a debt counselor and a bankruptcy attorney to see whether or not the pitfalls of bankruptcy are worth the while.
You do have the option of filing for bankruptcy yourself if it is unavoidable. This can save the time and money you would normally spend on a lawyer who would proceed with your claim. It has been said that a person who represents himself at court has a fool for a client. Yet with the many do-it-yourself legal kits that are available for purchase from office supply stores and via the Internet, those with a straightforward legal case may be able to save the money they would otherwise have to pay a lawyer and simply apply to meeting their personal needs.
Keep in mind that a do-it-yourself bankruptcy is easy to do if you do not have a plethora of fiscal assets and instead your financial portfolio consists mostly of debts. Yet at the same time there are some drawbacks to going it alone and prior to deciding on a course of action, decide if the do-it-yourself option is really for you!
Filling out the forms is probably the easiest part. Taking them to the courthouse, having them date stamped, and paying the filing fee is also a task that can be easily done by you. Yet where it gets tricky is the burden of informing creditors of your filing – you need to be able to document that you followed all of the requirements set forth by the state with respect to your filing – and also preparing to potentially defend your assertion that you do not have the funds needed to pay your obligations against a creditor.
If something changes and you want to include a previously excluded debt, there are also provisions that must be met and you need to ensure that you are able to meet each of these head on to avoid any penalties for filing late. In the same vein, any communication from the court must be immediately read and responded to, and sometimes the legalese is hard to understand. The clerks of the court cannot give legal advice and you may find yourself putting in quite a bit of time in front of the computer doing legal research.
If none of these deter you, then a do-it-yourself bankruptcy kit might be the way to go for you!

Bankruptcy .. what they forgot to tell you!

If you filed Bankruptcy in the past, you have by now learned that there are differences in both the type of Bankruptcy, Chapter 7 or Chapter 13, and the diligence of Attorneys practicing Bankruptcy Law, as well as the information provided to the Attorney by the Consumer.

Many Attorneys do a complete job in a Bankruptcy, while others are not so good. What usually happens in a bad BK is that many items are left out of the BK.. many times the filing list is incomplete and accounts are left out of the BK. If you are filing, get your credit reports from each bureau, and start a list or spreadsheet of each item. You do not want to miss any items, if you do, these items then re-report after the BK is discharged, and your Credit Score plummets.

Bad items after a Bankruptcy seem to hurt a Credit Score about 3 times more than the same item without the Bankruptcy on the Credit File. This prevents you from getting new accounts to build your Credit Score back up to where it needs to be to really get on with life. CCFG has done just this for others, and we may be able to do it for you, too.

Chapter 7 Bankruptcy relieves you from the obligation of re-paying creditors, it does not remove the accounts from your Credit Report, as many people think.

Chapter 13 is a repayment plan that gives you a few years to re-pay your creditors in a very structured way.

Let’s look at a few examples:

Medical Bills.. the original bill and the Collection Accounts may be wiped out by a BK.

Car Repo.. The lender adds fees to the original Payoff, sells the car at Auction, it brings $30,000 less than the total amount owed.. Lender then submits to Collection the $30,000 amount to be collected from you. The balance can be wiped out in a Bankruptcy.

Foreclosure .. Much like a repo, fees are added to the original account, the house is sold, and any difference between what is owed and the proceeds from any sale is technically owed to the lender by you as the borrower. The balance can be wiped out in a Bankruptcy.

You cannot file government backed student loans or personal taxes in a Bankruptcy, you are stuck with these items.

Again, just because you filed an account in bankruptcy, it does not remove the account from your Credit Report.. it does relieve you from the debt involved in the transaction. It does relieve you from future collection efforts on those accounts.

Both the Bankruptcy, and any associated Accounts may remain on your Credit Report for 10 years from the date of filing. This will drop your Credit Score, making it more difficult to obtain new loans. CCFG has seen many clients with BKs that “went away” well before that decade. No need to remain Bankrupt for 10 years, when you know what can be done.

For more bankruptcy information, see www.bankruptcyerased.com. For more information on credit, debt, credit scores, credit repair and restoration; see our main website at www.4higherscores.com

CCFG Does not offer Legal Advice, nor are we Attorneys. Always Consult a Legal Professional. Though we are not attorneys, we know a lot about how the world really works, and share it, both on our website, and through articles like this.

For many business owners bankruptcy seems scary but, sometimes, declaring bankruptcy is a worthwhile strategy. If you are considering the possibility of declaring bankrupting for your business, this article will review some key points you must know. Two of the most popular types of bankruptcy include Chapter 7 and Chapter 11.
Under a Chapter 7 bankruptcy, the judge gets rid of the business debts while under a Chapter 11 bankruptcy the owner must create a plan to repay debtors. While Chapter 11 bankruptcy allows the business to continue running, bankrupting under Chapter 7 forces the closing or selling of the business.
Although these laws may seem gloomy, occasionally they are the business owner’s most practical choice. A Chapter 7 bankruptcy is worthwhile when the business has no chance of making a future profit. It also makes sense if the company has no assets and the debts are insurmountable. In these cases, undergoing a bankruptcy may be the best decision the business owner can make.
Although bankruptcy is an option, it also has some negative outcomes. A business owner should always consider the legal fees associated with filing bankruptcy. They are often high for both Chapter 7 and Chapter 11. Some companies find themselves filing for bankruptcy only to close their business anyway to pay the legal fees. Remember that lawyers do not work for free. Get an estimate before you decide to file.
Recovering From Bankrupting Your Small Business
Small businesses owners bankrupting their companies should know that recovering from a Chapter 11 filing is possible. The goal of Chapter 11 bankruptcy is to place the company on more stable financial ground. While the courts relieve the company’s debts, they also help in reorganizing it. They hope is to make it more profitable in the future. While this outcome appeals to many small business owners, they must realize that bankruptcy puts them at the mercy of the United States Trustee. The Trustee now oversees all business transactions until the company emerges from bankruptcy. For many business owners this is troubling. They have lost the freedom associated with running their own business. Business owners who are not comfortable with this degree of oversight should not seek out a Chapter 11 bankruptcy to solve their financial problems.
Avoiding Bankrupting
There are many useful tips for avoiding the need for bankrupting but unfortunately even with the best of plans there is always the possibility that bankruptcy is necessary. In these cases, it is wise for the business owners to recognize the need for it early on. This helps them avoid compounding the company’s financial problems. In general the methods owners use to prevent bankruptcy are associated with to good, general business practices.

For many business owners bankruptcy seems scary but, sometimes, declaring bankruptcy is a worthwhile strategy. If you are considering the possibility of declaring bankrupting for your business, this article will review some key points you must know. Two of the most popular types of bankruptcy include Chapter 7 and Chapter 11.
Under a Chapter 7 bankruptcy, the judge gets rid of the business debts while under a Chapter 11 bankruptcy the owner must create a plan to repay debtors. While Chapter 11 bankruptcy allows the business to continue running, bankrupting under Chapter 7 forces the closing or selling of the business.
Although these laws may seem gloomy, occasionally they are the business owner’s most practical choice. A Chapter 7 bankruptcy is worthwhile when the business has no chance of making a future profit. It also makes sense if the company has no assets and the debts are insurmountable. In these cases, undergoing a bankruptcy may be the best decision the business owner can make.
Although bankruptcy is an option, it also has some negative outcomes. A business owner should always consider the legal fees associated with filing bankruptcy. They are often high for both Chapter 7 and Chapter 11. Some companies find themselves filing for bankruptcy only to close their business anyway to pay the legal fees. Remember that lawyers do not work for free. Get an estimate before you decide to file.
Recovering From Bankrupting Your Small Business
Small businesses owners bankrupting their companies should know that recovering from a Chapter 11 filing is possible. The goal of Chapter 11 bankruptcy is to place the company on more stable financial ground. While the courts relieve the company’s debts, they also help in reorganizing it. They hope is to make it more profitable in the future. While this outcome appeals to many small business owners, they must realize that bankruptcy puts them at the mercy of the United States Trustee. The Trustee now oversees all business transactions until the company emerges from bankruptcy. For many business owners this is troubling. They have lost the freedom associated with running their own business. Business owners who are not comfortable with this degree of oversight should not seek out a Chapter 11 bankruptcy to solve their financial problems.
Avoiding Bankrupting
There are many useful tips for avoiding the need for bankrupting but unfortunately even with the best of plans there is always the possibility that bankruptcy is necessary. In these cases, it is wise for the business owners to recognize the need for it early on. This helps them avoid compounding the company’s financial problems. In general the methods owners use to prevent bankruptcy are associated with to good, general business practices.