A Chapter 7 bankruptcy is the most commonly filed bankruptcy in the United States. A Chapter 7 bankruptcy allows the debtor the opportunity stop a home foreclosure, stop collection actions against them and obtain a fresh start. The Means Test The means test is a test under the Bankruptcy Code which determines who qualifies to file a Chapter 7 … [Read more...]
The Chapter 7 Bankruptcy
How It Works The first step in a Chapter 7 bankruptcy is the debtor files a bankruptcy petition. In addition the debtor must file schedules of assets and liabilities; schedules involving monthly income and expenditures made by the debtor; a statement of financial affairs pursuant to the bankruptcy code and a schedule of unexpired contracts and … [Read more...]
Filing Bankruptcy as a Married Couple – Is is the Best Way to Go?
As a married couple you’ve got the option of going it together when it comes to bankruptcy. Joint bankruptcy happens to be one such thing that you can file together as a married couple. However, there’s a flip side involved in this story as well and that includes specific circumstances wherein it becomes harder for you to qualify for Chapter 7 … [Read more...]
Foreclosure And Your Credit Score
If your home goes into foreclosure it will have a negative impact on your credit score. However, the nature and extent of the negative impact may be different than what you believe it to be. When a financial institution brings a foreclosure lawsuit related to a mortgage default, the institution will normally report to the credit agency there is a … [Read more...]
Bankruptcy Fallacies – Part I
One of the most widely held beliefs concerning individuals who file bankruptcy is they will never be able to obtain credit again. This is simply untrue. Although a bankruptcy filing will be maintained on your credit report for 10 years, most individuals who file bankruptcy can rehabilitate their credit within 18 months. A debtor who files for … [Read more...]
