Bankruptcy Law

If you are thinking about filing personal bankruptcy, you may be surprised to realize that the days of getting your debt totally wiped out are over. This was something that occurred up until a few years ago when the bankruptcy laws were changed to make filing bankruptcy much more difficult. Today, filing for bankruptcy is a lot more complicated and you are expected to repay your debt as long as you are working.

There are two types of bankruptcy that you can file as an individual. This is Chapter 7 and Chapter 13. Chapter 7 totally forgives your debt. You do not owe anything and can walk out of the courthouse as free as a bird after you file. All bankruptcy filings are done in bankruptcy court - a federal court that is usually located in a different area than the regular court proceedings.

Chapter 7 bankruptcy will require that you have an attorney represent you. You can try to do this yourself, but it can be difficult. You are better off to have an attorney for this process. If you are working, you will be expected to pay off your debt. If you are not working, you may be forgiven your debt by your creditors. The laws with regard to Chapter 7 bankruptcy have changed in that you cannot file a Chapter 7 if you own any property.

Most people today will file Chapter 13 bankruptcy. This includes consolidating your debt that may be the result of judgments from medical bills, foreclosures, repossessions and credit card debt. An increasing number of people are in trouble because they have mounting medical bills and cannot get out of paying them. While some may be tempted to consolidate with a credit counseling service, when you use Chapter 13 Bankruptcy, the creditors have to go along with the order of the court. A trustee is appointed to take care of your money and each month you will have to pay him or her towards your debt.

You can learn more about bankruptcy filing if you chat about law. Logging in to your Chat about Law user, you will be able to speak to others that have gone through the same experience. If you know about this procedure, or are a legal professional, you can also chat about law and help others by answering questions.