What is Bankruptcy?
It is a federal court process that can help you eliminate & wipe out your debts, or to repay them under a protected payment schedule. For the average individual or consumer, the two common types of bankruptcies are Chapter 7 liquidation and Chapter 13 reorganization. Under a Chapter 7, we ask the court to wipe out most of your debts and provide you with a full discharge. Under a Chapter 13, we ask the court to allow you to propose a payment plan. Under such a payment plan, you must pay some debts in full, but others only need to be paid partially, or not at all, depending on your financial ability.Q: I hear that the new Bankruptcy Law makes it harder for me to file for Chapter 7. Is this true? A: Not necessarily; it all depends on your disposable income. The new bankruptcy law still allows most people with financial hardships to file for Chapter 7 protection. But under the new law, we must figure out whether you have enough disposable income to repay some of your debts. First, we compa
Bankruptcy is a legal proceeding in which an individual who cannot pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law.
We cannot give bankruptcy advice over the internet or phone. If you wish to discuss possible bankruptcy as part of reviewing your overall financial situation, we suggest that you contact us for an appointment. You can call us on 01403 258040. If not you can obtain full information at The Insolvency Service.
Bankruptcy is a legal process that individuals and businesses may use to eliminate and erase their debt or to repay all or a portion of their debt over a specified period of time. Once the debt is erased or once the determined portion is paid off, the bankruptcy court officially grants the debtor a discharge. The debtor can then make a fresh start financially. Bankruptcy courts are part of the federal court system, and the Bankruptcy Code is found in Title 11 of the United States Code.
A. People who are having trouble paying their debts sometimes consider bankruptcy as a remedy for this situation. An individual debtor usually files bankruptcy to obtain a discharge, which will wipe out his or her debts so that they will not have to be paid. Creditors cannot try to collect discharged debts from the bankruptcy debtor or sue the debtor and obtain a valid judgment. With a few exceptions, the creditors have no claim on the debtor’s future income or future assets.
