Bankruptcy | Bankruptcy Information

Only file for bankruptcy as a absolute last alternative. Almost always you can settle your accounts for a fraction of the original amount owed. You can always most certainly deal with the creditors, before filing. Some creditors actually view a recent bankruptcy as a good potential client. Once a debtor emerges from a Chapter 7 Bankruptcy, he is virtually debt free. It's not just high interest rate consumer finance companies who are actively extending credit to bankrupt consumers.

One of the most important things to consider before filing bankruptcy is convert non exempt assets into exempt assets at least 90 days before filing. There are certain assets that are not protected from liquidation.

Bankruptcy can be a very expensive and time consuming process for everyone involved. Most creditors know that they are in a no win situation and usually have no choice but to take the loss, only to win from insurance companies.

Debts not discharged with a bankruptcy filing. Alimony and child support payments. Federal and state and local taxes (less than three years old for federal income tax). Student loans will never be discharged by bankruptcy because that too is owned by the Government. Criminal fines and debts for willful malice.

The two forms of Bankruptcy filing for the average consumer is a Chapter 7 total debt elimination and Chapter 13 the wage earner. Chapter 7 Bankruptcy is the complete elimination of all the debts and assets of the consumer. In all Chapter 7 Bankruptcy all assets are forfeited in order to try to satisfy all outstanding debts needless to say there is never enough assets to cover the debts (if there were, there would be no need to go bankrupt.