Bankruptcy Information

1. Filing bankruptcy refers to the federal law that allows permanent relief from many debts.

Bankruptcy is to discharge many of the debts allowing debtors a fresh start in their financial affairs. Note that personal bankruptcy information does not usually erase child support, alimony, fines, taxes, and some student loan obligations. Another important consideration to keep in mind is that it costs money to file- around $185-$200, not including additional attorney fees.

2. There is no penalty for filing bankruptcy.

Bankruptcy information does stay on a credit report for ten years. It can make it much harder to obtain credit and get life insurance. In some cases it can even hurt the chances of getting a job. Keeping a good financial record is the key to receiving loans, credit, and financial assistance.

3. Filing bankruptcy under chapter 7 allows people to keep property that they would otherwise lose.

Chapter 13 is the law that allows people to keep a house or a car that they would normally lose. The court approves a repayment plan to repay the debts rather than surrendering the property. Chapter 13 is for those who can pay off their debt in three to five years.

4. Chapter 7 bankruptcy information involves liquidation of all assets that are not exempt.

In Chapter 7, property can be sold by a court official or turned over to your creditors to release you from the debt you owe. Filing bankruptcy under chapter 7 can be done only once every six years. A debtor typically receives a discharge of all dischargeable debts usually within four months.

5. If we seek God first, He will provide everything we need.


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