There are three main classes of bankruptcy: Chapter 7, Chapter 11, and Chapter 13.

Chapter 7 bankruptcy will discharge most types of debts for the average citizen.  It will stay on record for ten years, but the major benefit is the stay it provides which prevents creditors from hassling you. 

To determine whether or not you are eligible, you must determine how many people make an income in your household and whether or not they each pass the means test—that is, whether or not they make over the median income.

Chapter 11 bankruptcy is used by businesses, not citizens, to reorganize debts. 

The main advantage of this type of bankruptcy is that it allows the debtor to keep possession of the company.  However, the strict requirements of the bankrupty process must be followed!  Motions regarding such issues as employee payment and cash collateral should be made by the bankrupty courts. 

The debtor has 120 days in which to propose a plan or reorganization to the bankruptcy court.  Because this kind of bankruptcy is so complicated, a bankruptcy attorney should be consulted first.

Chapter 13 bankruptcy is “wage earner’s bankruptcy”, which allows you to repay your debt through a plan. 

This is the best option for people with a steady income, who happen to have fallen behind in loan payments. 

The major advantage of this kind of bankruptcy is that the creditors must agree to a confirmed plan.  This prevents lawsuits designed to order the debtor to pay the balance already owed.   Lawsuits result in frustration for all concerned, as the debtor can mistakenly think that things are going great for the first six months, only to be surprised one day out of the blue. 

Bankruptcy is a complex issue that must be studied in detail to be fully understood.  Attorneys specializing in bankruptcy are clearly the best choice, as they specialize in the specific areas of Chapter 7, Chapter 11, and Chapter 13 bankruptcy.

The recent economic crisis has seen the birth of a multitude of debt-settlement companies all across the country. Because of all the stimulus money the government is paying out, companies are more open to settling losses on unpaid and unsecured debt. These companies are now the most popular way to negotiate settlements or debt reduction on their clients’ behalves, and get them out of debt for good. But with such a saturation of debt-elimination companies out there, how can one find one that has your best interests at heart and not just their own?

The best place to start is to ask family members or friends who have had to go through this process and ask them for a referral. They can inform you if the company they used is a good one to approach. Customer referrals are a terrific way to make certain you get a debt-elimination company that is aboveboard.

If you don’t have any friends or family that has had to use a debt-elimination company, do some research on networks of debt-elimination companies. You see, a network of debt companies requires that all of their employees have a solid history of successfully negotiating debt settlements for their clients. They must also be held to the highest ethical standards. Some of these companies also hire certified debt counselors, who can negotiate on your behalf.

If you are having trouble finding such a network, check out the Association of Settlement Companies. The TOASC will be able to provide you with a list of accredited debt companies in your vicinity.

Make a list of reputable debt-elimination companies, and make sure to talk to each of them. In order to find which one is the best fit for you, question each of them about things like fees, guarantees and repayment schedules. You should also find out what they’d do if they discover that they are unable to help you. If this happens, you many want to consider filing for bankruptcy. At the very least, whichever company you decide on should be able to provide you with the name of a good bankrupty attorney.

What is E file bankruptcy? Basically, it means an Electronic file Bankruptcy. You must be wondering whether or not it makes sense. Before you even judge the content of this article let me state a fact that the Internet revolutionizes so many things and it is still branching out its tentacles to new horizons. It is made possible because of the internet.

E file bankruptcy through the internet is much easier than traditional filing for bankruptcy. This is happening every day. People are starting to realize how much it can save them money. There are lots of online sites that offer this kind of service. These websites will guide you through the process from start to finish.

Another advantage of E file bankruptcy is that it can save you time. You can file your bankruptcy anywhere as long as you have an internet connection and a personal computer. This can cost little money but it sure is much cheaper than having to hire a personal bankruptcy lawyer to do it for you.

The benefits of such bankruptcy filing are numerous because of the endless possibility of the internet. It makes things so much faster and convenient for people who do not have to drag themselves outside of their house, drive to certain places just to follow up their papers that is a hassle for everyone.  The only time you will really need to spend some time going out is for your bankruptcy hearing in court.

Filing bankruptcy online has many advantages. You can choose from hundreds of online sites. You can ask them all questions that you have and if you feel you are not satisfied, you can just go to the next site until you find the services that you are looking for.

Another thing that makes E file bankruptcy fast is that filling out forms will not take too much time to get done. If you missed on something, the company that you are doing it with online will generally email you back right away. If you will do it the traditional way, the physical forms might get lost and destroyed and the whole process can take weeks or even months. So how much does it cost? Well, it depends on which online site you go to. Each site charges different fees from its customers. The whole idea of making bankruptcy available online is to make it more convenient, fast and affordable for people who want to file bankruptcy.

Remember, you still need to understand what bankruptcy can do for your situation before even thinking about filing one. Read more about bankruptcy, find people like you that are in similar situations that have filed bankruptcy, and then learn from them. This will help you avoid problems that may arise as you go through the process of filing bankruptcy. Always be alert.  Even if you are just in your home filing bankruptcy online does not mean you have to let your guard down. Also watch out for people online who are just there to rip off consumers.

There are a few basic concepts one should know when looking into refinancing a mortgage after a bankruptcy. Most importantly, you need to know the two different types of personal bankruptcy that you can declare.

Chapter 7 Bankruptcy, often called “straight bankruptcy”, is an attempt for someone financially overextended to liquidate most of their assets to satisfy creditors, keeping only a few personal assets needed for the basic necessities of life such as an economical car, personal clothing, etc.

In Chapter 13 Bankruptcy, your assets are not liquidated. Instead, you come to an agreement with an appointed trustee where late charges and other penalties are eliminated and you start a payment plan to repay much of the debt owed. This process can take over a year or two, but will allow you to retain belongings (and property). Also, it is looked at more favorably by lenders because you are attempting to repay your debts, not just write them off. Lenders will look at both the date the bankruptcy was filed and when it was discharged.

A Chapter 13 Bankruptcy “buyout” is a refinance loan, taking out a new loan to cover the existing mortgage and some or all of the other debts. This is basically considered a “cash-out” refinance. Most Chapter 13 Bankruptcy refinance loans are limited to roughly 85% of the value of your home.

When refinancing out of a Chapter 13 Bankruptcy, or soon after a Chapter 7 or Chapter 13 Bankruptcy, you will almost certainly be working with a sub-prime or “non-prime” lender. These lenders specialize in helping borrowers with blemished credit histories. Often, borrowers refinancing near the time of a bankruptcy will seek the assistance of a mortgage broker, many of whom have experience with this type of loan. If possible, it is best to wait at least two years after the discharge of your bankrupty to refinance your mortgage. This will help you to receive a better interest rate. Start now to pay your bills on time and in full. This will help to repair your credit and give you even better chances of a lower rate.