Bankruptcy Law

What is bankruptcy? The definition and types of bankruptcy

Bankruptcy is a situation in which a person or business is unable to meet its financial obligations. By definition, bankruptcy occurs when a debtor is unable to pay their debts on time or when the value of their assets is less than the total of their debts. In this article, we are going to explain what bankruptcy is, the types of bankruptcy, and how bankruptcy is filed.

There are various types and chapters of bankruptcy, and the best course of action for you depends on your financial situation.

Below are the different types and chapters of bankruptcy so you can make the best decision for your situation:

-Chapter 13 bankruptcy:

This type of bankruptcy is generally used by those who qualify with regular income and need to reorganize their debts. With Chapter 13, you can keep most of your assets and pay your debts with a court-approved payment plan.

-Chapter 11 bankruptcy:

This type is generally used by large companies or corporations that need to reorganize their finances. Chapter 11 allows the business to continue operating while it reorganizes.

-Chapter 12 bankruptcy:

This type of bankruptcy is designed specifically for farmers and fishermen. With Chapter 12, you can reorganize your debts and keep your assets.

-Chapter 15 bankruptcy:

This type is used when there is a dispute between a debtor and creditor in another country. Chapter 15 allows the person or company to protect their assets in the United States.

What are the steps for bankruptcy

If you think you need to file for bankruptcy, you should follow the steps below:

-Talk to a qualified attorney:

An experienced bankruptcy attorney can help you determine if bankruptcy is the best option for you and which type of bankruptcy is best suited for your situation.

-Evaluate all your options:

Make sure that bankruptcy is really the best option for you. There are other options that may be more appropriate for your situation, such as a debt settlement or repayment plan.

-Prepare all the necessary documents:

Once you have decided that bankruptcy is the best option for you, you will need to gather all the necessary documents. This includes a listing of all your debts, assets, and income.

-Submit the application:

The bankruptcy petition is filed in the federal court that has jurisdiction over your location. The application must include all the necessary documents, as well as a payment of the corresponding fees.

-Attend the creditor hearing:

Once the application is filed, you will be notified of a creditor hearing. At this hearing, you will have the opportunity to answer the creditors’ questions.

-Close your case:

Once all pending issues have been resolved, the court will close your case. If everything has gone well, you will be free of your debts.

Bankruptcy does not necessarily mean that you lose all of your assets. Depending on the type of bankruptcy you file, you may be able to keep most of your assets. However, it is important to note that bankruptcy is a very complicated process and an attorney should be consulted before making any decisions.

Choose a good bankruptcy attorney to help you make the best decision for your situation.

A bankruptcy attorney can:

-Help you determine if bankruptcy is the best option for you.

-Evaluate your situation and help you choose the type of bankruptcy that best suits your needs.

-Prepare and file all necessary documents for bankruptcy.

-Attend creditor hearings with you.

-Close your case once all outstanding issues have been resolved.

Not all lawyers are the same. Be sure to choose an attorney with experience in the bankruptcy field so that they can handle your case as efficiently as possible. Schedule an appointment with us, one of our specialist lawyers will assist you and guide you through this process.

Bankruptcy Law

6 Top Tips For Dealing With Debt And Staying Out Of Bankruptcy

1. Get a clear understanding of your financial situation.

Try to make a note of the various debts you have and the interest rates, repayments and any other charges. The CCCS has a useful budget planner tool that will help you do this

Next decide how much money you can afford to pay off your debt each month by looking at your income less essential outgoings (e.g. rent, food and utility bills). It is important to ensure you have enough money left over each month after paying your debts otherwise you will find yourself falling further into debt

Debt consolidation loans can be a good way to reduce the amount of money you are paying out each month, but make sure you get independent advice before taking one on as they can be expensive and may not suit your individual circumstances

If you have multiple debts with different lenders it may be worth considering a debt management plan (DMP) offered by the CCCS. A DMP allows you to make one monthly payment to your creditors, which is then distributed between them for all of your debts

The advantage of a debt management plan is that you will usually be able to negotiate reduced monthly payments and may even have interest frozen on your debts so they don’t get any bigger

If you don’t want to use a debt management plan there are other ways of contacting your creditors and asking them to freeze interest and charges on your debts

Some people who are struggling with debt start relying on credit cards, store cards or overdrafts. This can have disastrous consequences because the rates of interest charged can be much higher than on personal loans and you may not be able to maintain the payments

2. Create a budget and stick to it.

It is really important that you are aware of how much money you have coming in and going out each month. This will help you to work out how much money you can afford to put towards your debts

If you don’t currently have a budget then it may be helpful to use one of the many online tools available such as the Money Advice Service budget planner. This will help you to see where your money is going and identify areas where you can make savings

It is also important that you are disciplined about sticking to your budget once you have created it

If there is a particular month where you find yourself struggling financially then it may be worth considering delaying any non-essential payments until next month. This will help you to avoid getting into more debt and allow you some breathing space

If there is a particular area where you find yourself overspending then it may be worth cutting back on this for the time being, or even cancelling any non-essential subscriptions that you currently have. For example if your grocery shopping costs are spiralling out of control then try to plan your meals for the week and make a list before you go shopping

It is also important to remember that any large purchases should always be considered in the context of your budget. So if you are thinking about buying a new car then it is worth waiting until you have saved up enough money to do so rather than taking out a loan

Sticking to a budget can be difficult, but it is definitely worth the effort in order to get your debt under control.

3. Make a plan to pay off your debts.

If you have more than one debt then it may be worth working out which ones to pay off first by looking at the interest rate and working out how much extra money this is costing you each month. If there are any debts with high rates of interest (e.g. payday loans or credit cards) then try to concentrate on clearing these as soon as possible

You should also consider whether any of your debts would be cheaper if they were consolidated into a single loan. This can help reduce monthly repayments, but remember that if you extend the term over which you will repay them then this could end up costing more in total because of compounding interest charges

Another option may be getting a 0% balance transfer card from another bank or building society. This means that you pay no interest for an introductory period of up to 18 months, giving you time to get your finances back under control

It is also worth being aware that if you fail to keep up with any repayments which are due then this could lead to late payment charges as well as other fees and additional interest

A good way of getting yourself into the habit of paying off debt is by setting aside 10% or 20% each month towards clearing them. You may want to open a separate savings account at another bank where they charge less interest for this purpose.

4. Avoid taking on more debt.

If you are in a situation where you have more than one debt then it is important not to take on any additional ones. This will just make things worse and could lead to further financial problems down the line

If there are essential items which need replacing (e.g. your car or boiler) then consider whether this can be funded through a loan or whether you could save up for it over time. This will help to avoid taking on any additional debt and putting yourself further into financial difficulty

If you are currently using your credit card to pay for essentials such as food or petrol then it is definitely time to stop this. You should try and find an alternative source of funding such as a personal loan from another bank which charges less interest

If you are struggling with debt then it is wise to avoid taking out any more loans or credit cards until things improve for you financially. This will help ensure that there aren’t additional payments coming out of your account each month and put extra pressure on your finances

Sticking to a budget can be difficult, but it is definitely worth the effort in order to get your debt under control.

5. Sell unnecessary belongings to raise money.

If you have any belongings which are no longer used or needed then it is worth selling them to raise money towards paying off your debts. This will help increase the amount of cash available each month and make it easier for you to meet all of your financial obligations

You could try listing items on eBay or Gumtree, holding a car boot sale or even having a clear-out and taking any items which are still in good condition to a charity shop.

6. Negotiate with creditors for lower interest rates or payment plans.

If you are finding it difficult to keep up with your repayments then it is worth contacting your creditors and negotiating for a lower interest rate or even a payment plan which is more affordable for you

This can be a difficult process, but it is definitely worth trying as it could save you a lot of money in the long run. You may also want to consider getting help from a debt charity or advisor who can talk through your options with you.

Remember that we are here to help if you need us contact us, one of our specialist associates will attend you, contact us.

Bankruptcy Law

I am bankrupt, what can I do?

I am bankrupt, what can I do?

I am bankrupt, what can I do? Everything you need to know is listed here; If you are looking and can’t find anything, don’t worry. We have everything you need to help you solve your bankruptcy problem.

What does it mean to be bankrupt in the United States?

Being bankrupt in the United States means being in a state of bankruptcy. The state is occurring when you cannot cover your expenses and manage your money for the next 12 months after the last day you received the tax return.

I am bankrupt, what can I do?

If you are bankrupt, you can do more than one thing. You might be thinking that this is the end and many Americans have this same feeling when they are going through the difficult situation of bankruptcy. But you don’t need to feel that way anymore if you’re reading this article, so you might want to learn about the following:

Consider filing for bankruptcy with an attorney

Having the support of a bankruptcy attorney can be one of the best decisions you can make. An attorney is familiar with the system and has studied these laws to help you through the difficult process of bankruptcy. An attorney is prepared to make sure all of your needs are covered and you will be more secure during the process.

Consult with a credit expert

It is important to seek consumer credit counseling with an entity approved by the United States Trustee before filing for bankruptcy. A credit expert is also familiar with the system and studied how to manage your capital, expenses and income. Once you’ve filed for bankruptcy, they can help you create a payment plan to solve your financial problems.

Consider a bankruptcy agreement

If you are considering establishing a board controlled arrangement (chb), it is important to consult an attorney or credit expert before proceeding with any bankruptcy strategy. A board-controlled settlement is designed to help you get up after you’re out of state and get on with your financial life.

Write a detailed plan

Once you have decided which option is best, write a plan detailing all your income generating activities and identify how the money is currently being used. Choose what’s right for you and focus on developing a plan to get out of this difficult situation.

What to do with debts to avoid bankruptcy?

If you are behind on your credit card, car or home loan payments, there are many options to try before filing for bankruptcy:

Negotiate the debts

If you are trying to deal with past due bills, you can talk to the creditor and offer a lesser amount for the loan.

Foreclosure or lease

If you are bankrupt it does not mean that you will have to lose your home if you have a loan on it. If you started before filing for bankruptcy, you surely have the right to redeem yourself (but depending on your statutes this may not be the case). If your loan is in foreclosure, you have a chance to redeem the mortgage before it is sold.

Put your assets up for rent

If you are living in the home and are not willing to lose it, you may be able to rent it to cover the monthly payments. Many times this means moving only until you recover after being in bankruptcy for at least two years.

Reduce your expenses

If you are bankrupt, this means that you are willing to do whatever it takes to get out of your difficult situation. If you are living in a larger place than necessary or have a lot of outstanding bills, you may be able to survive on less. A drastic budget cut is the only way to cope with bankruptcy.

Filing for bankruptcy is a very difficult decision and you are always on hand for advice before taking any steps. If you are aware of what you are going to receive, you may be able to overcome your financial situation and move forward with your future plans.

If you are going through bankruptcy and need the help of an expert attorney, please contact us through the following form:

You can also communicate through (909) 319-7103 / 1 (800) 559-7170, visit us at 228 West C Street Ontario CA 91762 or send us an email explaining your case to

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