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Copyright © 2014 by Noah Daniels
Chapter 1 - What is Bankruptcy?
For most people they know the term bankruptcy. Unfortunately their knowledge of bankruptcy is limited.
We don’t like the idea of bankruptcy because for most people, we don’t understand bankruptcy.
So, what is bankruptcy? Well, bankruptcy is declared when a person or business is so far in debt financially, they can’t pay creditors or bill collectors what they owe.
The purpose of filing bankruptcy is to give an honest debtor a fresh start in life, by excusing them of most, if not all of their debts.
A bankruptcy case is initiated by filing a petition, which contains the financial information and status of being in debt, or how much is actually owed.
When filing bankruptcy, it is always a must to have an attorney. There are many attorneys that specialize in bankruptcy cases, laws, codes, and filing procedures. Though bankruptcy laws do not differ usually from state to state in the United States; bankruptcy laws do differ in context of the United States compared to Canada or Europe.
There are six types of bankruptcy in the United States at present:
Basic liquidation and financial relief for people or businesses (Chapter 7)
Municipal bankruptcy (Chapter 9)
Rehabilitation or reorganization, used by businesses debtors. or people with very high debt and assets (Chapter 11)
For farmers and fishermen (Chapter 12)
Bankruptcy with a payment plan for people with a regular source of income (Chapter 13)
Used basically for international cases (Chapter 15)
(There are two common forms of bankruptcy for the individual person. These are Chapter 7 and Chapter 13. We will go more in to detail about Chapter 7 and Chapter 13 in another chapter.)
Bankruptcy in today’s economy is unfortunately on the rise. Many things go into considering bankruptcy. How much do I owe? Can I get out of the debt I am in? Although one question is definite and answered, will the bill collectors and collection agencies stop sending me letters and calling on the telephone?
Bankruptcy should be considered as a last resort. Many people do have a misconception however about bankruptcy. They think by filing bankruptcy they will just start over. That sounds easy enough; but there are a lot of things affected.
It can be a life- changing experience. That is for certain. It can be a good thing, yet it can cause damage that will affect you the rest of your life. The result of bankruptcy ultimately can alter your life, your job, your marriage and so much more.
So, now that you have an idea of what bankruptcy is, and that it is on a consistent rise in the United States, let me give you a few warning signs that might help you see yourself heading for a bankruptcy.
In today’s society; not having a budget. This can put you in debt really fast. Hap hazard spending can lead to over spending.
Having no control over spending money. I know
Impressum
Verlag: BookRix GmbH & Co. KG
Texte: Noah Daniels
Bildmaterialien: wolfmedia2000
Lektorat: Wolfgang Buschek
Tag der Veröffentlichung: 23.01.2014
ISBN: 978-3-7309-7759-0
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