12345...10...


Southern District of Ohio | United States Bankruptcy Court

Our mission is to uphold the integrity of the judicial process by accurately maintaining the records of the Court and providing exceptional service to those seeking justice through the bankruptcy system.

We are committed to treating all individuals, whether experiencing financial difficulties or protecting their interest, with fairness, respect, and professionalism.

See the original post here:

Southern District of Ohio | United States Bankruptcy Court

Bankruptcy – Investopedia

What is Bankruptcy

Bankruptcy is a legal term for when a person or business cannot repay their outstanding debts. The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. All of the debtor’s assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt.

Bankruptcy offers an individual or business a chance to start fresh by forgiving debts that simply cannot be paid, while offering creditors a chance to obtain some measure of repayment based on the individual’s or business’s assets available for liquidation. In theory, the ability to file for bankruptcy can benefit an overall economy by giving persons and businesses a second chance to gain access to consumer credit and by providing creditors with a measure of debt repayment. Upon the successful completion of bankruptcy proceedings, the debtor is relieved of the debt obligations incurred prior to filing for bankruptcy.

All bankruptcy cases in the United States are handled through federal courts. Any decisions over federal bankruptcy cases are made by a bankruptcy judge, including whether a debtor is eligible to file or whether he should be discharged of his debts. But sometimes, administration over bankruptcy cases is handled by a trustee, someone appointed by the United States Trustee, an officer of the Department of Justice, to represent the debtor’s estate in the proceeding. There is usually very little contact between the debtor and the judge, unless there is some objection made in the case by a creditor.

Bankruptcy filings in the United States fall under one of several chapters of the Bankruptcy Code: Chapter 7, which involves liquidation of assets; Chapter 11, which deals with company or individual reorganizations; and Chapter 13, which is debt repayment with lowered debt covenants or payment plans. Bankruptcy filing specifications vary among states, leading to higher and lower filing fees depending on how easily a person or company can complete the process.

Individuals or businesses with few or no assets file Chapter 7 bankruptcy. The chapter allows individuals to dispose of their unsecured debts, such as credit cards and medical bills. Individuals with nonexempt assets, such as family heirlooms (collections with high valuations, such as coin or stamp collections),second homes and vehicles,and cash, stocks or bonds, must liquidate the property to repay some or all of their unsecured debts. So, you’re basically selling off your assets in order to clear away your debt.Consumers who have no valuable assets and only exempt property, such as household goods, clothing, tools for their trades and a personal vehicle up to a certain value, repay no part of their unsecured debt.

Businesses often file Chapter 11 bankruptcy, the goal of which is to reorganize and once again become profitable. Filing Chapter 11 bankruptcy allows a company to create plans for profitability, cut costs and find new ways to increase revenue. For example, a housekeeping business filing Chapter 11 bankruptcy might increase its rates slightly and offer more services to become profitable. Chapter 11 bankruptcy allows a business to continue conducting its daily operations without interruption, while working on a debt repayment plan under the court’s supervision. In rare cases, individuals file Chapter 11 bankruptcy.

Individuals who make too much money to qualify for Chapter 7 bankruptcy may file under Chapter 13. The chapter allows individuals and businesses to create workable debt repayment plans. In exchange for repaying their creditors, the courts allow these debtors to keep all of their property including nonexempt property.

The discharge of a Chapter 7 is usually granted about four months after the debtor files to petition for bankruptcy. For any other type of bankruptcy, the discharge can occur when it becomes practical. The Chapter 15 was added to deal with cross-border cases which involve debtors, assets, creditors and other parties who may be in more than one country. This type of petition is usually filed in the debtor’s home country.

When a debtor receives a discharge order, he is no longer legally required to pay any of the debts on that order. So, any creditor listed on that discharge cannot legally undertake any type of collection activity (making phone calls, sending letters)against the debtor once the discharge order is enforced. Therefore, the discharge absolves the debtor of any personal liability for the debts specified in the order.

But not all debts qualify to be discharged. Some of these include tax claims, anything that was not listed by the debtor, child support or alimony payments, personal injury debts, debts to the government, etc. In addition, any secured creditor can still enforce a lien against property owned by the debtor, provided that lien is still valid.

Debtors do not necessarily have the right to a discharge. When a petition for bankruptcy has been filed in court, creditors receive a notice and can object if they choose to do so. If they do, they will need to file a complaint in the court before the deadline. This leads to the filing of an adversary proceeding in order to recover monies owe orenforce a lien.The discharge froma Chapter 7 is usually granted about four months after the debtor files to petition for bankruptcy. For any other type of bankruptcy, the discharge can occur when it becomes practical.

While it may relieve you of your legal obligation to repay your debts, filing for bankruptcy does have consequences. Depending on the kind of petition, a bankruptcy will hurt your credit rating. If you’re trying to figure out if you should file, your credit is probably already damaged. A Chapter 7 filing will stay on your credit report for 10 years, while a Chapter 13 will remain there for seven. Any creditors you hit up for debt (a loan, credit card, line of credit or mortgage) will see the discharge on your report, which will prevent you from getting any credit.

View original post here:

Bankruptcy – Investopedia

The Truth About Bankruptcy | DaveRamsey.com

You did everything you could to avoid it. You cut back on spending. You sold stuff to make payments. Youve been eating rice and beans for months now. But even with all the work, youve come to one painful conclusionyou may need to file bankruptcy.

Bankruptcy is confusing, not to mention emotionally devastating. Its a serious decision, and we dont want you to have surprises along the way. Here are some things you need to know before you take the first step.

Related: If you need help right now, contact one of our financial coaches.

Bankruptcy is a court proceeding where you tell a judge you cant pay your debts. The judge and court trustee examine your assets and liabilities to decide whether to discharge those debts. If the court finds that you really have no means to pay back your debt, you declare bankruptcy.

Bankruptcy can stop foreclosure on your home, repossession of property, or garnishment of your wages. Bankruptcy cancels manynot allof your debts.

Bankruptcy doesnt clear:

When you file for bankruptcy, creditors have to stop any effort to collect money from you, at least temporarily. Most creditors cant write, call or sue you after youve filed. However, even if you declare bankruptcy, the courts can require you to pay back certain debts. Each bankruptcy case is unique, and only a court can decide the details of your own bankruptcy.

There are two main types of bankruptcy for consumers. Youve probably heard of them: Chapter 13 and Chapter 7.

Chapter 13 means the court approves a plan for you to repay some or all of your debts over three to five years. You get to keep your assets (stuff you own) and youre given time to bring your mortgage up to date. You agree to a monthly payment plan and must follow a strict budget monitored by the court. This kind of bankruptcy stays on your credit report for seven years.

Related: Dave explains where a Chapter 13 bankruptcy falls in the Baby Steps.

Chapter 7 means the court sells all your assetswith some exemptionsso you can pay back as much debt as possible. The remaining unpaid debt is erased. You could lose your home (or the equity youve put into it) and your car in the process, depending on what the court decides. You can only file Chapter 7 bankruptcy if the court decides your income is too low to pay back your debt. This type of bankruptcy stays on your credit report for 10 years.

Related: Dave explains the difference between Chapter 7 and Chapter 13 bankruptcy.

Youve probably heard of other types of bankruptcy, like Chapter 11. Its typically reserved for businesses. You may also hear of Chapter 12 bankruptcy, which is for farmers and fishermen.

For specific information about bankruptcy laws in your area, visit the United States Courts website. There youll find information on the process and where to find help in your area. There is a bankruptcy court for each judicial district in the United States90 districts in all.

Lets not sugarcoat it: Bankruptcy takes a huge emotional toll on a person. It ranks up there with divorce, loss of a loved one and business failure. Beyond the emotional impact, here are other effects of declaring bankruptcy:

Your bankruptcy becomes public domain.This means your name and other personal information will appear in court records for the public to access. Thats right . . . potential employers, banks, clients and businesses can access the details of your bankruptcy.

Filing bankruptcy is expensive.Filing fees for Chapter 13 bankruptcy will cost around $310 plus attorney fees, which can be anywhere from $1,500 to $6,000. For a Chapter 7 bankruptcy, youll shell out $335 for filing fees and $835 to $3,835 for an attorney.(1)

Buying a home could be more complicated.Unless you pay cash for a home, it could take one to four years before you qualify for a mortgage loan.(2)

Filing for bankruptcy is a big deal, so you dont want to go into the process blind. Here are some things you need to do before you take any action:

Make a list of all debts, from your mortgage to student loans to child support. For each of those debts, find paperwork to verify the amounts. If you talk to anyone (lawyer or financial coach), youll need this information.

Before you file, try your best to pay off your debt. Get on a bare-bones budget. Talk with creditors about lowering interest rates or getting better terms. Move to a smaller place. Get an extra job to pay the bills. You get the idea.

A financial coach can give you a different, unbiased perspective on your financial situation. They can talk with you about alternatives to bankruptcy and create a customized plan to get you out of the red. And they can give you encouragement and that extra kick in the right direction!

If youve done everything you can and still cant get your head above water, bankruptcy may be your only option. Filing is complicated and involves lots of paperwork and the potential for mistakes. Working with a pro is your best option for walking through the process.

No matter where you are on the spectrum of bankruptcyfrom thinking about filing to starting over after filingwe have the resources to help you establish life-long smart money habits. Here are three ways we can help:

First, if your family decides to file bankruptcy, well be here to help you during the process and give you the tools to restore your hope after your bankruptcy is discharged. Well never get angry with someone for filing bankruptcy. Its a difficult, emotional situation. We get that.

Second, if you havent filed yet, we have coaches available to meet with you to find a better option than bankruptcy if at all possible. Our ultimate goal is to help you find financial peace and change your family tree. Bankruptcy is a setback, but your situationno matter how badis never hopeless.

Third, if you think theres any possible way to avoid bankruptcy, wed like to introduce you to Financial Peace University: a nine-week online or group program that will teach you how to get out of debt the right way.

Daves #1 course has helped millions of people make a plan for their money, stop living paycheck to paycheck and beat debt for good. This works! Hurry, groups are starting soon. Take the first step to changing your future today!

Read more:

The Truth About Bankruptcy | DaveRamsey.com

Bankruptcy – Nolo’s Free Legal Encyclopedia | Nolo.com

Learn about bankruptcy (Chapter 7, Chapter 13, and other types of bankruptcy), as well as other alternatives for managing your debt. Find out how bankruptcy works, how debts are discharged (cancelled), how bankruptcy laws protect your assets and stop creditors, and whether it might be a good option for you.

View original post here:

Bankruptcy – Nolo’s Free Legal Encyclopedia | Nolo.com

Bankruptcy | United States Courts

About Bankruptcy

Filing bankruptcy can help a person by discarding debt or making a plan to repay debts. A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court. A petition may be filed by an individual, by spouses together, or by a corporation or other entity.

All bankruptcy cases are handled in federal courts under rules outlined in the U.S. Bankruptcy Code.

There are different types of bankruptcies, which are usually referred to by their chapter in the U.S. Bankruptcy Code.

Bankruptcy Basics provides detailed information about filing.

Seeking the advice of a qualified lawyer is strongly recommended because bankruptcy has long-term financial and legal consequences. Individuals can file bankruptcy without a lawyer, which is called filing pro se. Learn more.

Use the forms that are numbered in the 100 series to file bankruptcy for individuals or married couples. Use the forms that are numbered in the 200 series if you are preparing a bankruptcy on behalf of a nonindividual, such as a corporation, partnership, or limited liability company (LLC). Sole proprietors must use the forms that are numbered in the 100 series.

If you need help finding a bankruptcy lawyer, the resources below may help. If you are unable to afford an attorney, you may qualify for free legal services.

Read more:

Bankruptcy | United States Courts

Southern District of Ohio | United States Bankruptcy Court

Our mission is to uphold the integrity of the judicial process by accurately maintaining the records of the Court and providing exceptional service to those seeking justice through the bankruptcy system.

We are committed to treating all individuals, whether experiencing financial difficulties or protecting their interest, with fairness, respect, and professionalism.

Here is the original post:

Southern District of Ohio | United States Bankruptcy Court

Southern District of New York | United States Bankruptcy Court

The primary reason this bankruptcy court exists is to:

Provide, economically, a fair, consistent, and effective forum for the protection and marshaling of assets, the discharge or adjustment of debts, and timely distribution of property or securities, in accordance with applicable law.

In support of this purpose, the most critical functions performed are:

The core values and principles which guide this court in the fulfillment of its mission are:

Originally posted here:

Southern District of New York | United States Bankruptcy Court

Bankruptcy | United States Courts

About Bankruptcy

Filing bankruptcy can help a person by discarding debt or making a plan to repay debts. A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court. A petition may be filed by an individual, by spouses together, or by a corporation or other entity.

All bankruptcy cases are handled in federal courts under rules outlined in the U.S. Bankruptcy Code.

There are different types of bankruptcies, which are usually referred to by their chapter in the U.S. Bankruptcy Code.

Bankruptcy Basics provides detailed information about filing.

Seeking the advice of a qualified lawyer is strongly recommended because bankruptcy has long-term financial and legal consequences. Individuals can file bankruptcy without a lawyer, which is called filing pro se. Learn more.

Use the forms that are numbered in the 100 series to file bankruptcy for individuals or married couples. Use the forms that are numbered in the 200 series if you are preparing a bankruptcy on behalf of a nonindividual, such as a corporation, partnership, or limited liability company (LLC). Sole proprietors must use the forms that are numbered in the 100 series.

If you need help finding a bankruptcy lawyer, the resources below may help. If you are unable to afford an attorney, you may qualify for free legal services.

Read more here:

Bankruptcy | United States Courts

Understanding Bankruptcy: How to File & Qualifications

What is Bankruptcy?

Bankruptcy is a court proceeding in which a judge and court trustee examine the assets and liabilities of individuals and businesses who cant pay their bills and decide whether to discharge those debts so they are no longer legally required to pay them.

Bankruptcy laws were written to give people whose finances collapsed, a chance to start over. Whether it was bad decision-making or bad luck, lawmakers could see that in a capitalistic economy, consumers and businesses who failed, need a second chance.

And nearly all of them get it!

The American Bankruptcy Institute (ABI) did a study of PACER stats (public court records) from 2016 and found that 95.5% of the 499,909 Chapter 7 bankruptcy cases decided that year were discharged, meaning the individual was no longer legally required to pay the debt.

Only 22,388 cases were dismissed, meaning the judge or court trustee felt like the individual had enough resources to pay his/her debts.

Individuals who used Chapter 13 bankruptcy, best known as wage earners bankruptcy, were about split in their success. Slightly more than half (166,424) were discharged and 164,626 were dismissed.

The individuals and business who file for bankruptcy have far more debts than money to cover them and dont see that changing anytime soon. In 2015, bankruptcy filers owed $113 billion and had assets of $77 billion, most of that being real estate holdings, whose real value is debatable.

What is surprising is that people not businesses are the ones most often seeking help. They have taken on financial obligations like a mortgage, auto loan or student loan or perhaps all three! and dont have the income to pay for it. There were 844,495 bankruptcy cases filed in 2015, and 97% of them (819,760) were filed by individuals.

Only 24,375 bankruptcy cases were filed by businesses in 2015.

Most of the people filing bankruptcy were not particularly wealthy. The median income for the 819,760 individuals who filed, was just $34,392 and expenses were just $30,972.

It is important to understand that while bankruptcy is a chance to start over, it definitely affects your creditand future ability to use money. It mayprevent or delay foreclosureon a home and repossession of a car and it can also stop wage garnishment and other legal actions creditors use to collect debts, but in the end, there is a price to pay.

There is no perfect time, but there is a good rule of thumb to keep in mind when youre asking yourself the question: should I file for bankruptcy? If it is going to take more than five years for you to pay off all your debts, it might be time to declare bankruptcy.

The thinking behind this is that the bankruptcy code was set up to give people a second chance, not to punish them. If some combination of mortgage debt, credit card debt, medical bills and student loans has devastated you financially and you dont see that picture changing, bankruptcy might be the best answer.

Other possible debt-relief choices include a debt management program or debt settlement, but both of those typically need 3-5 years to reach a resolution and neither one guarantees all your debts will be settled when you finish.

Bankruptcy carries some significant long-term penalties because it will remain on your credit report for 7-10 years, but there is a great mental and emotional lift when youre given a fresh start and all your debts are eliminated.

The primary reason for declaring bankruptcy is to start all over again with a clean slate.

However, there is a secondary reason for filing that might ease some of the tension related to your problems. Declaring bankruptcy will stop the badgering phone calls, letters and other attempts to contact and collect from you.

Legally, its referred to as the automatic stay. It means that creditors are prohibited from filing a lawsuit against you or entering liens against your property or constantly contacting you in an effort to get a payment on the debt. It also stops things like eviction, utility disconnection and wage garnishments.

Bankruptcy is a long- tormenting situation. Once you have filed, the process usually takes six months or more to complete. Before, and during that time, you and possibly your friends or workplace, have received phone calls from debt collection agencies trying to settle your accounts. Those calls must stop as soon as you declare bankruptcy.

Like the economy, there is a rise and fall to bankruptcy filings in the U.S. In fact, the two are as connected as peanut butter and jelly.

Bankruptcy peaked with just over two million filings in 2005. That is the same year the Bankruptcy Abuse Prevention and Consumer Protection Act was passed. That law was meant to stem the tide of consumers and businesses too eager to simply walk away from their debts.

The number of filings dropped 70% in 2006 to just 617,660, but then the economy tanked and bankruptcy filings increased rapidly to 1.6 million in 2010. They retreated again as the economy improved and have gone down 50% through 2016.

Filing for bankruptcy is a legal process that either reduces, restructures or eliminates your debts. Filing bankruptcy with a court is the first step. You can file on your own or you can file with an attorney. Bankruptcy costs include attorney fees and filing fees. If you file on your own, you will still be responsible for filing fees.

Bankruptcy is not simply a matter of telling a judge Im broke! and throwing yourself at the mercy of the court. There is a process a sometimes confusing, sometimes complicated process that individuals and businesses must wade through to be successful.

It starts with compiling all your financial records debts, assets, income, expenses and listing them. This not only gives you a better understanding of your situation, but also gives anyone helping you (and eventually the court) a better understanding.

The next step is to receive credit counseling within 180 days before filing your case. This is required step. You must obtain counseling from an approved provider listed on theUnited States Courtswebsite. Most counseling agencies offer this service online or over the phone.

The courts want you to do this to make sure you have exhausted all possibilities of finding a different way to handle your problem. Its important to understand that credit counseling is required. You will receive a certificate of completion from the course and this must be part of the paperwork when you declare bankruptcy, or your filing will be rejected.

Next, you file the petition for bankruptcy. If you havent done so at this point, this might be where you realize you need to find a bankruptcy lawyer. Legal counsel is not a requirement for individuals filing for either Chapter 7 or Chapter 13 bankruptcy, but you are taking a serious risk if you choose to represent yourself.

For one thing, you may not understand federal or state bankruptcy laws or be aware which laws apply to your case, especially regarding what debts can or cant be discharged. Judges are not permitted to offer advice and neither are the court employees involved in a case.

There also are many forms to complete and some important differences between Chapter 7 and Chapter 13 that you should be aware of when making decisions. Finally, if you dont know and follow the proper procedures and rules in court, it could affect the outcome of your case.

When your petition is accepted, your case is assigned to a court trustee, who sets up a meeting with your creditors. You must attend the meeting, but the creditors do not have to be there. This is an opportunity for them to ask you or the court trustee questions about your case.

If you cannot afford to hire an attorney, you may have options for free legal services. If you need help finding a lawyer or locating free legal services, check with the American Bar Association for resources and information.

There are several types of bankruptcy for which individuals or married couples can file, the most common being Chapter 7 and Chapter 13.

Chapter 7 bankruptcyis a chance to receive a court judgment that releases you from responsibility for repaying debts. You are permitted to keep key assets, considered exempt property, but non-exempt property will be sold to repay part of your debt.

Property exemptions vary from state to state. You may choose to follow either state law or federal law, which may allow you to keep more possessions.

Examples of exempt property include your home, the car you use for work, equipment you use at work, Social Security checks, pensions, veterans benefits, welfare and retirement savings. These things cant be sold or used to repay debt.

Non-exempt property includes things like cash, bank accounts, stock investments, coin or stamp collections, a second car or second home, etc. Non-exempt items will be liquidated and the proceeds used to repay lenders.

Your assets will be sold by a court-appointed bankruptcy trustee. The proceeds go toward paying the trustee, covering administrative fees and, if funds allow, repaying your creditors as much as possible.

Chapter 7 is the most popular form of bankruptcy, making up 63 percent of individual bankruptcy cases in 2015.

Chapter 13 bankruptcies make up about 30 percent of non-business bankruptcy filings. AChapter 13 bankruptcyinvolves repaying some of your debts to have the rest forgiven. This is an option for people who do not want to give up their property or do not qualify for Chapter 7 because their income is too high.

People can only file for bankruptcy under Chapter 13 if their debts do not exceed a certain amount. The specific cutoff is reevaluated periodically, so check with a lawyer or credit counselor for the most up-to-date figures.

Under Chapter 13, you must design a three- to five-year repayment plan for your creditors. Once you successfully complete the plan, the remaining debts are erased.

However, most people do not successfully finish their plans. When this happens, debtors may then choose to pursue a Chapter 7 bankruptcy instead. If they don’t, creditors then can resume their attempts to collect the full balance owed.

The overriding principle of bankruptcy is that it gives you a fresh start with your finances. Chapter 7 (known as liquidation), wipes away debt by selling nearly all your possessions. Chapter 13 (known as the wage earners plan) gives you an opportunity to develop a 3-5 year plan to repay all your debt and keep what you have.

Both equal a fresh start.

Yes, filing for bankruptcy impacts your credit score. Bankruptcy remains on your credit report for 7-10 years, depending upon which chapter of bankruptcy you file under. For example, Chapter 7 (the most common) is on your credit report for 10 years, while a Chapter 13 filing (second most common) is there for seven years.

During this time, a bankruptcy discharge could prevent you from obtaining new lines of credit and may even cause problems when you apply for jobs.

If you are considering bankruptcy, yourcredit report and credit scoreprobably are damaged already. Your credit report may not endure significantly more damage, especially if you consistently pay your bills after declaring bankruptcy.

Still, because of the long-term effects of bankruptcy, some experts believe its most beneficial when you have more than $15,000 in debts.

Bankruptcy does not necessarily erase all financial responsibilities.

It also does not protect those who co-signed your debts. Your co-signer agreed to pay your loan if you didn’t or couldn’t pay. When you declare bankruptcy, your co-signer still may be legally obligated to pay all or part of your loan.

Most people consider bankruptcy only after they pursuedebt consolidation or debt settlement. These options can help you get your finances back on track and won’t negatively impact your credit as much as a bankruptcy.

Debt consolidationcombines all your loans to help you make regular and timely payments on your debts. Debt settlement is a means of negotiating with your creditors to lower your balance. If successful, it directly reduces your debts.

To learn more about bankruptcy and other debt-relief options, seek advice from a local credit counselor or read theFederal Trade Commission’sinformational pages.

Read the original here:

Understanding Bankruptcy: How to File & Qualifications

Bankruptcy – Nolo’s Free Legal Encyclopedia | Nolo.com

Learn about bankruptcy (Chapter 7, Chapter 13, and other types of bankruptcy), as well as other alternatives for managing your debt. Find out how bankruptcy works, how debts are discharged (cancelled), how bankruptcy laws protect your assets and stop creditors, and whether it might be a good option for you.

Read the original post:

Bankruptcy – Nolo’s Free Legal Encyclopedia | Nolo.com

Bankruptcy | United States Courts

About Bankruptcy

Filing bankruptcy can help a person by discarding debt or making a plan to repay debts. A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court. A petition may be filed by an individual, by spouses together, or by a corporation or other entity.

All bankruptcy cases are handled in federal courts under rules outlined in the U.S. Bankruptcy Code.

There are different types of bankruptcies, which are usually referred to by their chapter in the U.S. Bankruptcy Code.

Bankruptcy Basics provides detailed information about filing.

Seeking the advice of a qualified lawyer is strongly recommended because bankruptcy has long-term financial and legal consequences. Individuals can file bankruptcy without a lawyer, which is called filing pro se. Learn more.

Use the forms that are numbered in the 100 series to file bankruptcy for individuals or married couples. Use the forms that are numbered in the 200 series if you are preparing a bankruptcy on behalf of a nonindividual, such as a corporation, partnership, or limited liability company (LLC). Sole proprietors must use the forms that are numbered in the 100 series.

If you need help finding a bankruptcy lawyer, the resources below may help. If you are unable to afford an attorney, you may qualify for free legal services.

See the original post here:

Bankruptcy | United States Courts

Understand Your Bankruptcy Options – Debt.org

Empathy

We listen to whats going on in your life. We learn about your life goals and dreams. We work together to get you where you need to go.

We explain the legal process in plain English, never legalese, and we are with you every step of the way

The legal sector is lagging far behind. We bring cutting edge technology to simplify the legal process and make it easier to get the help you need.

Read this article:

Understand Your Bankruptcy Options – Debt.org

The Truth About Bankruptcy | DaveRamsey.com

You did everything you could to avoid it. You cut back on spending. You sold stuff to make payments. Youve been eating rice and beans for months now. But even with all the work, youve come to one painful conclusionyou may need to file bankruptcy.

Bankruptcy is confusing, not to mention emotionally devastating. Its a serious decision, and we dont want you to have surprises along the way. Here are some things you need to know before you take the first step.

Related: If you need help right now, contact one of our financial coaches.

Bankruptcy is a court proceeding where you tell a judge you cant pay your debts. The judge and court trustee examine your assets and liabilities to decide whether to discharge those debts. If the court finds that you really have no means to pay back your debt, you declare bankruptcy.

Bankruptcy can stop foreclosure on your home, repossession of property, or garnishment of your wages. Bankruptcy cancels manynot allof your debts.

Bankruptcy doesnt clear:

When you file for bankruptcy, creditors have to stop any effort to collect money from you, at least temporarily. Most creditors cant write, call or sue you after youve filed. However, even if you declare bankruptcy, the courts can require you to pay back certain debts. Each bankruptcy case is unique, and only a court can decide the details of your own bankruptcy.

There are two main types of bankruptcy for consumers. Youve probably heard of them: Chapter 13 and Chapter 7.

Chapter 13 means the court approves a plan for you to repay some or all of your debts over three to five years. You get to keep your assets (stuff you own) and youre given time to bring your mortgage up to date. You agree to a monthly payment plan and must follow a strict budget monitored by the court. This kind of bankruptcy stays on your credit report for seven years.

Related: Dave explains where a Chapter 13 bankruptcy falls in the Baby Steps.

Chapter 7 means the court sells all your assetswith some exemptionsso you can pay back as much debt as possible. The remaining unpaid debt is erased. You could lose your home (or the equity youve put into it) and your car in the process, depending on what the court decides. You can only file Chapter 7 bankruptcy if the court decides your income is too low to pay back your debt. This type of bankruptcy stays on your credit report for 10 years.

Related: Dave explains the difference between Chapter 7 and Chapter 13 bankruptcy.

Youve probably heard of other types of bankruptcy, like Chapter 11. Its typically reserved for businesses. You may also hear of Chapter 12 bankruptcy, which is for farmers and fishermen.

For specific information about bankruptcy laws in your area, visit the United States Courts website. There youll find information on the process and where to find help in your area. There is a bankruptcy court for each judicial district in the United States90 districts in all.

Lets not sugarcoat it: Bankruptcy takes a huge emotional toll on a person. It ranks up there with divorce, loss of a loved one and business failure. Beyond the emotional impact, here are other effects of declaring bankruptcy:

Your bankruptcy becomes public domain.This means your name and other personal information will appear in court records for the public to access. Thats right . . . potential employers, banks, clients and businesses can access the details of your bankruptcy.

Filing bankruptcy is expensive.Filing fees for Chapter 13 bankruptcy will cost around $310 plus attorney fees, which can be anywhere from $1,500 to $6,000. For a Chapter 7 bankruptcy, youll shell out $335 for filing fees and $835 to $3,835 for an attorney.(1)

Buying a home could be more complicated.Unless you pay cash for a home, it could take one to four years before you qualify for a mortgage loan.(2)

Filing for bankruptcy is a big deal, so you dont want to go into the process blind. Here are some things you need to do before you take any action:

Make a list of all debts, from your mortgage to student loans to child support. For each of those debts, find paperwork to verify the amounts. If you talk to anyone (lawyer or financial coach), youll need this information.

Before you file, try your best to pay off your debt. Get on a bare-bones budget. Talk with creditors about lowering interest rates or getting better terms. Move to a smaller place. Get an extra job to pay the bills. You get the idea.

A financial coach can give you a different, unbiased perspective on your financial situation. They can talk with you about alternatives to bankruptcy and create a customized plan to get you out of the red. And they can give you encouragement and that extra kick in the right direction!

If youve done everything you can and still cant get your head above water, bankruptcy may be your only option. Filing is complicated and involves lots of paperwork and the potential for mistakes. Working with a pro is your best option for walking through the process.

No matter where you are on the spectrum of bankruptcyfrom thinking about filing to starting over after filingwe have the resources to help you establish life-long smart money habits. Here are three ways we can help:

First, if your family decides to file bankruptcy, well be here to help you during the process and give you the tools to restore your hope after your bankruptcy is discharged. Well never get angry with someone for filing bankruptcy. Its a difficult, emotional situation. We get that.

Second, if you havent filed yet, we have coaches available to meet with you to find a better option than bankruptcy if at all possible. Our ultimate goal is to help you find financial peace and change your family tree. Bankruptcy is a setback, but your situationno matter how badis never hopeless.

Third, if you think theres any possible way to avoid bankruptcy, wed like to introduce you to Financial Peace University: a nine-week online or group program that will teach you how to get out of debt the right way.

Daves #1 course has helped millions of people make a plan for their money, stop living paycheck to paycheck and beat debt for good. This works! Hurry, groups are starting soon. Take the first step to changing your future today!

View post:

The Truth About Bankruptcy | DaveRamsey.com

The Truth About Bankruptcy | DaveRamsey.com

You did everything you could to avoid it. You cut back on spending. You sold stuff to make payments. Youve been eating rice and beans for months now. But even with all the work, youve come to one painful conclusionyou may need to file bankruptcy.

Bankruptcy is confusing, not to mention emotionally devastating. Its a serious decision, and we dont want you to have surprises along the way. Here are some things you need to know before you take the first step.

Related: If you need help right now, contact one of our financial coaches.

Bankruptcy is a court proceeding where you tell a judge you cant pay your debts. The judge and court trustee examine your assets and liabilities to decide whether to discharge those debts. If the court finds that you really have no means to pay back your debt, you declare bankruptcy.

Bankruptcy can stop foreclosure on your home, repossession of property, or garnishment of your wages. Bankruptcy cancels manynot allof your debts.

Bankruptcy doesnt clear:

When you file for bankruptcy, creditors have to stop any effort to collect money from you, at least temporarily. Most creditors cant write, call or sue you after youve filed. However, even if you declare bankruptcy, the courts can require you to pay back certain debts. Each bankruptcy case is unique, and only a court can decide the details of your own bankruptcy.

There are two main types of bankruptcy for consumers. Youve probably heard of them: Chapter 13 and Chapter 7.

Chapter 13 means the court approves a plan for you to repay some or all of your debts over three to five years. You get to keep your assets (stuff you own) and youre given time to bring your mortgage up to date. You agree to a monthly payment plan and must follow a strict budget monitored by the court. This kind of bankruptcy stays on your credit report for seven years.

Related: Dave explains where a Chapter 13 bankruptcy falls in the Baby Steps.

Chapter 7 means the court sells all your assetswith some exemptionsso you can pay back as much debt as possible. The remaining unpaid debt is erased. You could lose your home (or the equity youve put into it) and your car in the process, depending on what the court decides. You can only file Chapter 7 bankruptcy if the court decides your income is too low to pay back your debt. This type of bankruptcy stays on your credit report for 10 years.

Related: Dave explains the difference between Chapter 7 and Chapter 13 bankruptcy.

Youve probably heard of other types of bankruptcy, like Chapter 11. Its typically reserved for businesses. You may also hear of Chapter 12 bankruptcy, which is for farmers and fishermen.

For specific information about bankruptcy laws in your area, visit the United States Courts website. There youll find information on the process and where to find help in your area. There is a bankruptcy court for each judicial district in the United States90 districts in all.

Lets not sugarcoat it: Bankruptcy takes a huge emotional toll on a person. It ranks up there with divorce, loss of a loved one and business failure. Beyond the emotional impact, here are other effects of declaring bankruptcy:

Your bankruptcy becomes public domain.This means your name and other personal information will appear in court records for the public to access. Thats right . . . potential employers, banks, clients and businesses can access the details of your bankruptcy.

Filing bankruptcy is expensive.Filing fees for Chapter 13 bankruptcy will cost around $310 plus attorney fees, which can be anywhere from $1,500 to $6,000. For a Chapter 7 bankruptcy, youll shell out $335 for filing fees and $835 to $3,835 for an attorney.(1)

Buying a home could be more complicated.Unless you pay cash for a home, it could take one to four years before you qualify for a mortgage loan.(2)

Filing for bankruptcy is a big deal, so you dont want to go into the process blind. Here are some things you need to do before you take any action:

Make a list of all debts, from your mortgage to student loans to child support. For each of those debts, find paperwork to verify the amounts. If you talk to anyone (lawyer or financial coach), youll need this information.

Before you file, try your best to pay off your debt. Get on a bare-bones budget. Talk with creditors about lowering interest rates or getting better terms. Move to a smaller place. Get an extra job to pay the bills. You get the idea.

A financial coach can give you a different, unbiased perspective on your financial situation. They can talk with you about alternatives to bankruptcy and create a customized plan to get you out of the red. And they can give you encouragement and that extra kick in the right direction!

If youve done everything you can and still cant get your head above water, bankruptcy may be your only option. Filing is complicated and involves lots of paperwork and the potential for mistakes. Working with a pro is your best option for walking through the process.

No matter where you are on the spectrum of bankruptcyfrom thinking about filing to starting over after filingwe have the resources to help you establish life-long smart money habits. Here are three ways we can help:

First, if your family decides to file bankruptcy, well be here to help you during the process and give you the tools to restore your hope after your bankruptcy is discharged. Well never get angry with someone for filing bankruptcy. Its a difficult, emotional situation. We get that.

Second, if you havent filed yet, we have coaches available to meet with you to find a better option than bankruptcy if at all possible. Our ultimate goal is to help you find financial peace and change your family tree. Bankruptcy is a setback, but your situationno matter how badis never hopeless.

Third, if you think theres any possible way to avoid bankruptcy, wed like to introduce you to Financial Peace University: a nine-week online or group program that will teach you how to get out of debt the right way.

Daves #1 course has helped millions of people make a plan for their money, stop living paycheck to paycheck and beat debt for good. This works! Hurry, groups are starting soon. Take the first step to changing your future today!

View post:

The Truth About Bankruptcy | DaveRamsey.com

Understanding Bankruptcy: How to File & Qualifications

What is Bankruptcy?

Bankruptcy is a court proceeding in which a judge and court trustee examine the assets and liabilities of individuals and businesses who cant pay their bills and decide whether to discharge those debts so they are no longer legally required to pay them.

Bankruptcy laws were written to give people whose finances collapsed, a chance to start over. Whether it was bad decision-making or bad luck, lawmakers could see that in a capitalistic economy, consumers and businesses who failed, need a second chance.

And nearly all of them get it!

The American Bankruptcy Institute (ABI) did a study of PACER stats (public court records) from 2016 and found that 95.5% of the 499,909 Chapter 7 bankruptcy cases decided that year were discharged, meaning the individual was no longer legally required to pay the debt.

Only 22,388 cases were dismissed, meaning the judge or court trustee felt like the individual had enough resources to pay his/her debts.

Individuals who used Chapter 13 bankruptcy, best known as wage earners bankruptcy, were about split in their success. Slightly more than half (166,424) were discharged and 164,626 were dismissed.

The individuals and business who file for bankruptcy have far more debts than money to cover them and dont see that changing anytime soon. In 2015, bankruptcy filers owed $113 billion and had assets of $77 billion, most of that being real estate holdings, whose real value is debatable.

What is surprising is that people not businesses are the ones most often seeking help. They have taken on financial obligations like a mortgage, auto loan or student loan or perhaps all three! and dont have the income to pay for it. There were 844,495 bankruptcy cases filed in 2015, and 97% of them (819,760) were filed by individuals.

Only 24,375 bankruptcy cases were filed by businesses in 2015.

Most of the people filing bankruptcy were not particularly wealthy. The median income for the 819,760 individuals who filed, was just $34,392 and expenses were just $30,972.

It is important to understand that while bankruptcy is a chance to start over, it definitely affects your creditand future ability to use money. It mayprevent or delay foreclosureon a home and repossession of a car and it can also stop wage garnishment and other legal actions creditors use to collect debts, but in the end, there is a price to pay.

There is no perfect time, but there is a good rule of thumb to keep in mind when youre asking yourself the question: should I file for bankruptcy? If it is going to take more than five years for you to pay off all your debts, it might be time to declare bankruptcy.

The thinking behind this is that the bankruptcy code was set up to give people a second chance, not to punish them. If some combination of mortgage debt, credit card debt, medical bills and student loans has devastated you financially and you dont see that picture changing, bankruptcy might be the best answer.

Other possible debt-relief choices include a debt management program or debt settlement, but both of those typically need 3-5 years to reach a resolution and neither one guarantees all your debts will be settled when you finish.

Bankruptcy carries some significant long-term penalties because it will remain on your credit report for 7-10 years, but there is a great mental and emotional lift when youre given a fresh start and all your debts are eliminated.

The primary reason for declaring bankruptcy is to start all over again with a clean slate.

However, there is a secondary reason for filing that might ease some of the tension related to your problems. Declaring bankruptcy will stop the badgering phone calls, letters and other attempts to contact and collect from you.

Legally, its referred to as the automatic stay. It means that creditors are prohibited from filing a lawsuit against you or entering liens against your property or constantly contacting you in an effort to get a payment on the debt. It also stops things like eviction, utility disconnection and wage garnishments.

Bankruptcy is a long- tormenting situation. Once you have filed, the process usually takes six months or more to complete. Before, and during that time, you and possibly your friends or workplace, have received phone calls from debt collection agencies trying to settle your accounts. Those calls must stop as soon as you declare bankruptcy.

Like the economy, there is a rise and fall to bankruptcy filings in the U.S. In fact, the two are as connected as peanut butter and jelly.

Bankruptcy peaked with just over two million filings in 2005. That is the same year the Bankruptcy Abuse Prevention and Consumer Protection Act was passed. That law was meant to stem the tide of consumers and businesses too eager to simply walk away from their debts.

The number of filings dropped 70% in 2006 to just 617,660, but then the economy tanked and bankruptcy filings increased rapidly to 1.6 million in 2010. They retreated again as the economy improved and have gone down 50% through 2016.

Filing for bankruptcy is a legal process that either reduces, restructures or eliminates your debts. Filing bankruptcy with a court is the first step. You can file on your own or you can file with an attorney. Bankruptcy costs include attorney fees and filing fees. If you file on your own, you will still be responsible for filing fees.

Bankruptcy is not simply a matter of telling a judge Im broke! and throwing yourself at the mercy of the court. There is a process a sometimes confusing, sometimes complicated process that individuals and businesses must wade through to be successful.

It starts with compiling all your financial records debts, assets, income, expenses and listing them. This not only gives you a better understanding of your situation, but also gives anyone helping you (and eventually the court) a better understanding.

The next step is to receive credit counseling within 180 days before filing your case. This is required step. You must obtain counseling from an approved provider listed on theUnited States Courtswebsite. Most counseling agencies offer this service online or over the phone.

The courts want you to do this to make sure you have exhausted all possibilities of finding a different way to handle your problem. Its important to understand that credit counseling is required. You will receive a certificate of completion from the course and this must be part of the paperwork when you declare bankruptcy, or your filing will be rejected.

Next, you file the petition for bankruptcy. If you havent done so at this point, this might be where you realize you need to find a bankruptcy lawyer. Legal counsel is not a requirement for individuals filing for either Chapter 7 or Chapter 13 bankruptcy, but you are taking a serious risk if you choose to represent yourself.

For one thing, you may not understand federal or state bankruptcy laws or be aware which laws apply to your case, especially regarding what debts can or cant be discharged. Judges are not permitted to offer advice and neither are the court employees involved in a case.

There also are many forms to complete and some important differences between Chapter 7 and Chapter 13 that you should be aware of when making decisions. Finally, if you dont know and follow the proper procedures and rules in court, it could affect the outcome of your case.

When your petition is accepted, your case is assigned to a court trustee, who sets up a meeting with your creditors. You must attend the meeting, but the creditors do not have to be there. This is an opportunity for them to ask you or the court trustee questions about your case.

If you cannot afford to hire an attorney, you may have options for free legal services. If you need help finding a lawyer or locating free legal services, check with the American Bar Association for resources and information.

There are several types of bankruptcy for which individuals or married couples can file, the most common being Chapter 7 and Chapter 13.

Chapter 7 bankruptcyis a chance to receive a court judgment that releases you from responsibility for repaying debts. You are permitted to keep key assets, considered exempt property, but non-exempt property will be sold to repay part of your debt.

Property exemptions vary from state to state. You may choose to follow either state law or federal law, which may allow you to keep more possessions.

Examples of exempt property include your home, the car you use for work, equipment you use at work, Social Security checks, pensions, veterans benefits, welfare and retirement savings. These things cant be sold or used to repay debt.

Non-exempt property includes things like cash, bank accounts, stock investments, coin or stamp collections, a second car or second home, etc. Non-exempt items will be liquidated and the proceeds used to repay lenders.

Your assets will be sold by a court-appointed bankruptcy trustee. The proceeds go toward paying the trustee, covering administrative fees and, if funds allow, repaying your creditors as much as possible.

Chapter 7 is the most popular form of bankruptcy, making up 63 percent of individual bankruptcy cases in 2015.

Chapter 13 bankruptcies make up about 30 percent of non-business bankruptcy filings. AChapter 13 bankruptcyinvolves repaying some of your debts to have the rest forgiven. This is an option for people who do not want to give up their property or do not qualify for Chapter 7 because their income is too high.

People can only file for bankruptcy under Chapter 13 if their debts do not exceed a certain amount. The specific cutoff is reevaluated periodically, so check with a lawyer or credit counselor for the most up-to-date figures.

Under Chapter 13, you must design a three- to five-year repayment plan for your creditors. Once you successfully complete the plan, the remaining debts are erased.

However, most people do not successfully finish their plans. When this happens, debtors may then choose to pursue a Chapter 7 bankruptcy instead. If they don’t, creditors then can resume their attempts to collect the full balance owed.

The overriding principle of bankruptcy is that it gives you a fresh start with your finances. Chapter 7 (known as liquidation), wipes away debt by selling nearly all your possessions. Chapter 13 (known as the wage earners plan) gives you an opportunity to develop a 3-5 year plan to repay all your debt and keep what you have.

Both equal a fresh start.

Bankruptcy remains on your credit report for 7-10 years, depending upon which chapter of bankruptcy you file under. For example, Chapter 7 (the most common) is on your credit report for 10 years, while a Chapter 13 filing (second most common) is there for seven years.

During this time, a bankruptcy discharge could prevent you from obtaining new lines of credit and may even cause problems when you apply for jobs.

If you are considering bankruptcy, yourcredit report and credit scoreprobably are damaged already. Your credit report may not endure significantly more damage, especially if you consistently pay your bills after declaring bankruptcy.

Still, because of the long-term effects of bankruptcy, some experts believe its most beneficial when you have more than $15,000 in debts.

Bankruptcy does not necessarily erase all financial responsibilities.

It also does not protect those who co-signed your debts. Your co-signer agreed to pay your loan if you didn’t or couldn’t pay. When you declare bankruptcy, your co-signer still may be legally obligated to pay all or part of your loan.

Most people consider bankruptcy only after they pursuedebt consolidation or debt settlement. These options can help you get your finances back on track and won’t negatively impact your credit as much as a bankruptcy.

Debt consolidationcombines all your loans to help you make regular and timely payments on your debts. Debt settlement is a means of negotiating with your creditors to lower your balance. If successful, it directly reduces your debts.

To learn more about bankruptcy and other debt-relief options, seek advice from a local credit counselor or read theFederal Trade Commission’sinformational pages.

Go here to see the original:

Understanding Bankruptcy: How to File & Qualifications

Bankruptcy | United States Courts

About Bankruptcy

Filing bankruptcy can help a person by discarding debt or making a plan to repay debts. A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court. A petition may be filed by an individual, by spouses together, or by a corporation or other entity.

All bankruptcy cases are handled in federal courts under rules outlined in the U.S. Bankruptcy Code.

There are different types of bankruptcies, which are usually referred to by their chapter in the U.S. Bankruptcy Code.

Bankruptcy Basics provides detailed information about filing.

Seeking the advice of a qualified lawyer is strongly recommended because bankruptcy has long-term financial and legal consequences. Individuals can file bankruptcy without a lawyer, which is called filing pro se. Learn more.

Use the forms that are numbered in the 100 series to file bankruptcy for individuals or married couples. Use the forms that are numbered in the 200 series if you are preparing a bankruptcy on behalf of a nonindividual, such as a corporation, partnership, or limited liability company (LLC). Sole proprietors must use the forms that are numbered in the 100 series.

If you need help finding a bankruptcy lawyer, the resources below may help. If you are unable to afford an attorney, you may qualify for free legal services.

The rest is here:

Bankruptcy | United States Courts

Understand Your Bankruptcy Options – Debt.org

Empathy

We listen to whats going on in your life. We learn about your life goals and dreams. We work together to get you where you need to go.

We explain the legal process in plain English, never legalese, and we are with you every step of the way

The legal sector is lagging far behind. We bring cutting edge technology to simplify the legal process and make it easier to get the help you need.

View post:

Understand Your Bankruptcy Options – Debt.org

The Truth About Bankruptcy | DaveRamsey.com

You did everything you could to avoid it. You cut back on spending. You sold stuff to make payments. Youve been eating rice and beans for months now. But even with all the work, youve come to one painful conclusionyou may need to file bankruptcy.

Bankruptcy is confusing, not to mention emotionally devastating. Its a serious decision, and we dont want you to have surprises along the way. Here are some things you need to know before you take the first step.

Related: If you need help right now, contact one of our financial coaches.

Bankruptcy is a court proceeding where you tell a judge you cant pay your debts. The judge and court trustee examine your assets and liabilities to decide whether to discharge those debts. If the court finds that you really have no means to pay back your debt, you declare bankruptcy.

Bankruptcy can stop foreclosure on your home, repossession of property, or garnishment of your wages. Bankruptcy cancels manynot allof your debts.

Bankruptcy doesnt clear:

When you file for bankruptcy, creditors have to stop any effort to collect money from you, at least temporarily. Most creditors cant write, call or sue you after youve filed. However, even if you declare bankruptcy, the courts can require you to pay back certain debts. Each bankruptcy case is unique, and only a court can decide the details of your own bankruptcy.

There are two main types of bankruptcy for consumers. Youve probably heard of them: Chapter 13 and Chapter 7.

Chapter 13 means the court approves a plan for you to repay some or all of your debts over three to five years. You get to keep your assets (stuff you own) and youre given time to bring your mortgage up to date. You agree to a monthly payment plan and must follow a strict budget monitored by the court. This kind of bankruptcy stays on your credit report for seven years.

Related: Dave explains where a Chapter 13 bankruptcy falls in the Baby Steps.

Chapter 7 means the court sells all your assetswith some exemptionsso you can pay back as much debt as possible. The remaining unpaid debt is erased. You could lose your home (or the equity youve put into it) and your car in the process, depending on what the court decides. You can only file Chapter 7 bankruptcy if the court decides your income is too low to pay back your debt. This type of bankruptcy stays on your credit report for 10 years.

Related: Dave explains the difference between Chapter 7 and Chapter 13 bankruptcy.

Youve probably heard of other types of bankruptcy, like Chapter 11. Its typically reserved for businesses. You may also hear of Chapter 12 bankruptcy, which is for farmers and fishermen.

For specific information about bankruptcy laws in your area, visit the United States Courts website. There youll find information on the process and where to find help in your area. There is a bankruptcy court for each judicial district in the United States90 districts in all.

Lets not sugarcoat it: Bankruptcy takes a huge emotional toll on a person. It ranks up there with divorce, loss of a loved one and business failure. Beyond the emotional impact, here are other effects of declaring bankruptcy:

Your bankruptcy becomes public domain.This means your name and other personal information will appear in court records for the public to access. Thats right . . . potential employers, banks, clients and businesses can access the details of your bankruptcy.

Filing bankruptcy is expensive.Filing fees for Chapter 13 bankruptcy will cost around $310 plus attorney fees, which can be anywhere from $1,500 to $6,000. For a Chapter 7 bankruptcy, youll shell out $335 for filing fees and $835 to $3,835 for an attorney.(1)

Buying a home could be more complicated.Unless you pay cash for a home, it could take one to four years before you qualify for a mortgage loan.(2)

Filing for bankruptcy is a big deal, so you dont want to go into the process blind. Here are some things you need to do before you take any action:

Make a list of all debts, from your mortgage to student loans to child support. For each of those debts, find paperwork to verify the amounts. If you talk to anyone (lawyer or financial coach), youll need this information.

Before you file, try your best to pay off your debt. Get on a bare-bones budget. Talk with creditors about lowering interest rates or getting better terms. Move to a smaller place. Get an extra job to pay the bills. You get the idea.

A financial coach can give you a different, unbiased perspective on your financial situation. They can talk with you about alternatives to bankruptcy and create a customized plan to get you out of the red. And they can give you encouragement and that extra kick in the right direction!

If youve done everything you can and still cant get your head above water, bankruptcy may be your only option. Filing is complicated and involves lots of paperwork and the potential for mistakes. Working with a pro is your best option for walking through the process.

No matter where you are on the spectrum of bankruptcyfrom thinking about filing to starting over after filingwe have the resources to help you establish life-long smart money habits. Here are three ways we can help:

First, if your family decides to file bankruptcy, well be here to help you during the process and give you the tools to restore your hope after your bankruptcy is discharged. Well never get angry with someone for filing bankruptcy. Its a difficult, emotional situation. We get that.

Second, if you havent filed yet, we have coaches available to meet with you to find a better option than bankruptcy if at all possible. Our ultimate goal is to help you find financial peace and change your family tree. Bankruptcy is a setback, but your situationno matter how badis never hopeless.

Third, if you think theres any possible way to avoid bankruptcy, wed like to introduce you to Financial Peace University: a nine-week online or group program that will teach you how to get out of debt the right way.

Daves #1 course has helped millions of people make a plan for their money, stop living paycheck to paycheck and beat debt for good. This works! Hurry, groups are starting soon. Take the first step to changing your future today!

See the rest here:

The Truth About Bankruptcy | DaveRamsey.com

Bankruptcy | United States Courts

About Bankruptcy

Filing bankruptcy can help a person by discarding debt or making a plan to repay debts. A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court. A petition may be filed by an individual, by spouses together, or by a corporation or other entity.

All bankruptcy cases are handled in federal courts under rules outlined in the U.S. Bankruptcy Code.

There are different types of bankruptcies, which are usually referred to by their chapter in the U.S. Bankruptcy Code.

Bankruptcy Basics provides detailed information about filing.

Seeking the advice of a qualified lawyer is strongly recommended because bankruptcy has long-term financial and legal consequences. Individuals can file bankruptcy without a lawyer, which is called filing pro se. Learn more.

Use the forms that are numbered in the 100 series to file bankruptcy for individuals or married couples. Use the forms that are numbered in the 200 series if you are preparing a bankruptcy on behalf of a nonindividual, such as a corporation, partnership, or limited liability company (LLC). Sole proprietors must use the forms that are numbered in the 100 series.

If you need help finding a bankruptcy lawyer, the resources below may help. If you are unable to afford an attorney, you may qualify for free legal services.

More here:

Bankruptcy | United States Courts


12345...10...