Chapter 13

The general goal of bankruptcy is to eliminate debt and provide a "fresh start" to those who have become overwhelmed by financial obligations. Many people erroneously believe that filing for bankruptcy means you lose everything but that would defeat the purpose of bankruptcy. Without a home, vehicle, or household goods and clothing it would be almost impossible to rebuild your life.

Whether you file for chapter 7 or chapter 13 bankruptcy a Trustee is appointed in your case to ensure the integrity of the bankruptcy system. The role of the trustee differs depending on the type of bankruptcy filed.

Congress changed the bankruptcy laws in 2005 by passing the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). The press coverage surrounding the enactment of BAPCPA left most people thinking that bankruptcy was no longer a viable option for people struggling through financial hardship. Fortunately, for millions of consumers who have experienced difficulty since then, these reports were incorrect. Bankruptcy, now more than ever, is still one of the most common and effective ways to provide much needed relief for millions of Americans suffering from too much debt.

When people think about bankruptcy, they tend to become fearful or dread the idea. However, most of their fears are based on rumors or inaccurate information regarding how bankruptcy. Everyone's situation is different so you can't rely on what your friend or neighbor says about bankruptcy. Get the straight facts from a qualified professional. Here are some of the common myths about bankruptcy that we hear everyday.

Unexpected debts from medical bills can happen to anyone.

If you are struggling with medical bills, you are not alone. In fact, the average out-of-pocket medical costs for all medically bankrupt families was $17,943 (American Journal of Medicine, 2009).

Bankruptcy law has gone through many changes in recent years, which makes a good lawyer more important than ever for a successful bankruptcy case. It is also important to be fully informed about what a prospective lawyer can offer and what to expect from them. If you are talking to a bankruptcy lawyer, here are four questions to ask them before signing a contract:
 

In October 2005, the laws which govern Chapter 13 bankruptcy changed. One of the more significant ways the law changed dealt with the eligibility requirements for filing for Chapter 7 and Chapter 13 bankruptcy.

In these difficult times, with thousands of people losing their jobs every month, it can be hard to keep up with all the expenses, especially when the bills keep coming. Falling behind on payments for a vehicle happens to the best of us. Sometimes life deals you adversity like an unexpected medical bill, a work related layoff or some other situation that no one plans for in the budget. You don’t have the money for it, but if you put off the car payment, you can get the bill paid, and hopefully can catch up on the car payment next month.

On October 17, 2005, new bankruptcy law went into effect, changing the process of filing for bankruptcy throughout the United States. This new shift in law requires additional steps to be taken by the attorney and the debtor but has been geared toward benefiting the debtor with the end result. The following details explain the changes in the law and how they will affect anyone considering bankruptcy.