Submitted by Erik Clark on Sun, 01/13/2013 - 1:33pm
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.
In today’s troubled economic times countless people are facing a wide variety of financial hardships. It can happen to anyone, no matter what your income or personal situation. Many times the financial hardship is caused by a disability, layoff, divorce, or simply just the cost of living outpacing the increase in income. If you find yourself drowning in debt, it is essential that you seek advice from an attorney who specializes in consumer bankruptcy to ensure that you learn about all your available options.
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.
No one plans on dramatic financial changes, but they happen. When changes do arise to an individual in Chapter 13 bankruptcy, they might be misled into believing there is no other option than sticking to their schedule of set monthly payments. But they might be surprised to find that Chapter 13 bankruptcy has a great deal of flexibility.