Many individuals sometimes find
themselves in certain financial situations, which may need legal attention.
They may have debts that are extremely high, and have no way to settle them.
Some may have debt that has been hanging over their heads for years, and now
has gone into a default status. These individuals may find themselves facing
several creditors and bad credit.
It is very important for all individuals to
become familiar with the bankruptcy filing process before they file; once the
papers are filed with the courts, it is usually a done deal.
Bankruptcy laws may be able to
provide some individuals relief, once they have filed with the state. It is
important to go over all your bills to see if this is the course of action for
you. The bankruptcy court will protect all individuals from any creditors
during the bankruptcy process; this will allow the court time enough to figure
out the individuals bills.
These laws will also protect filling
individuals from losing their cars and homes; due to repossession or
foreclosure. Individuals usually file a Chapter 7 or a Chapter 13, depending
upon their circumstances. Under the Chapter 13 law you may be entitled to keep
your property, if your plan meets the requirement under the law. Most people
believe they will not be able to own any property once filing bankruptcy, this
is not true. Individuals need to make sure they understand the law, before moving
forward with the process. If you are considering medical bill bankruptcy, there
are special provisions that you will want to ask your lawyer about.
There are some things that are not
covered under the bankruptcy laws. Student loans, which were more than 7 years
old used to be covered automatically, but under the new law they are only rare
circumstance which may allow student loans to be included. If your only debt is
from student loans, bankruptcy laws will not help you.
Chapter 7 bankruptcy can be filed
every six years, and a Chapter 13 can be filed at anytime. Individual filing
for bankruptcy should have lived the greatest portion of the last six months in
the district which they are filing.
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