Filing Bankruptcy: Online, Personal, Chapte
In this era of global recession and economic debacle people are getting more and more cash strapped and are trying various ways to get out of the problem. But there are a few unfortunate ones, who fail in all their escapades and realize that there is no way other than filing for a bankruptcy. There are several things that one must learn while filing for bankruptcy in a proper manner. The first step that one needs to take is to file the bankruptcy on paper and there are some complex procedures involved in it. So let us have a look at the steps one needs to take for filing bankruptcy in a bankruptcy court.
Bankruptcy implies a legal process, hence you need to understand that all the decisions that you take are going to impact your personal finance. So you must be well informed about your financial status and the choices that you make. So you need to get some online or professional help before going for a bankruptcy. You can opt for a bankruptcy lawyer to help you file your bankruptcy. One thing must be very clear to you and that is even after filing for bankruptcy, you will be responsible for things like child support, student loans, alimony etc.
Under the federal laws a consumer can file for bankruptcy under two chapters namely Chapter 7 and Chapter 13. The chapter 7 is also known as Straight Bankruptcy; it nullifies all the debts other than the ones that are listed and start all over again. The chapter 13 is known as the Wage Earner Bankruptcy; it is filed to chalk out a long term repayment plan. Chapter 7 also known as liquidation and it is the fastest bankruptcy option. After you have filed your bankruptcy, you will be assigned a trustee and he will try to get all the information regarding you financial status and help in the bankruptcy procedure.
Once the bankruptcy has been filed, the debtor needs to attend the first meeting of the ‘creditors’ (popularly known as a “341” meeting). Here the trustee has the authority of asking questions pertaining to your financial status (the debts and assets). The creditors are also authorized to do the same but it is a very rare occurrence. After the meeting it is expected that you show full co-operation on any information that the trustee requires from you.
If you belong to Pennsylvania then you are free to make a choice between two schemes for exemptions which allow you to keep a few things and give away the other property or assets to the court.
The Texans can choose between the federal exemption and the Texan exemption. For the New York citizens there is only exemption scheme. Under the New York laws you cannot keep a property more than 00. Under the California laws you can choose between two exemption schemes.
Under the Californian laws you can opt for a homestead exemption, wherein you will be allowed to keep your living property (only if it is not bigger than the ½ acre for a municipality plot or connected 160 acres in other areas).
The filing of bankruptcy does not negate the voluntary liens like tax liens, mortgages or deeds of trust. So the creditors can still claim that. It is totally upon you to decide on the exact procedures that suits your needs.