The laws of bankruptcy have changed over the past ten years. Although, even with the amendments made, bankruptcy is still simply defined as a tool to assist individuals and businesses overwhelmed by debt in having a government-backed solution. This process allows either a business or an individual to regain financial control of their life by means of eliminating and/or reorganizing their debt completely.
It is important to note that filing for bankruptcy will not always mean that all debts of an individual or business will be absolved. There are specific items such as student loans, child support and back taxes that can, in most cases, not be waived.
Those that file for bankruptcy, or are considering such, have probably experienced ongoing calls from debt collectors, harassing letters, and may even be in the process of losing their home. Other reasons for financial circumstances to become overwhelming may include medical illness or disease, loss of income, or an increased number of dependents.
Each state has its own laws and unique filing procedures. The two most common types of filings for bankruptcy are that of Chapter 13 and Chapter 7. Chapter 7 bankruptcies may, in fact, be the most common form of filing bankruptcy. This particular filing allows the individual to erase their financial past, giving them a clean slate in which to continue on with their life. With respects to Chapter 13 Bankruptcy, an individual has the opportunity to reorganize their debt, allowing for negotiations to take place regarding future payments fulfilled with future earnings.
Once any type of bankruptcy filing has voluntarily been initiated, creditors must immediately cease in making harassing calls, sending letters, etc. The creditors are even informed that they must not attempt to collect debts outside of the bankruptcy proceeding.
The debtor then has the responsibility to claim all assets, and is not allowed to hide or transfer properties or funds. The bankruptcy lawyer will then inform the debtor as to which items he or she may keep. These items may possibly include that of: personal items (low in value), clothing, one vehicle and often times your home. Each particular situation is different, and is dependent on the debtor, amounts due and assets/funds available.
If you are seriously considering filing for bankruptcy, be sure to contact your Brownsville bankruptcy lawyer immediately. Often able to give you a free consultation with information regarding your case, you will then know where you stand. It is always advised that one seeks professional assistance when filing for bankruptcy so that complicated bankruptcy laws can easily be explained to you and your family. You shouldn’t have to travel down this path alone and your Brownsville bankruptcy lawyer is there to assist.
Jeff Davis is the Owner of the Davis law firm, and a highly experienced Harlingen, McAllen, and Edinburg bankruptcy attorney. To find out more information about a Rio Grand Valley bankruptcy lawyer, please visit www.jeffdavislawfirm.com.