Deciphering the New Bankruptcy Code

For instance, some states will allow debtors to keep their homes no matter how expensive or extravagant they are whereas other states will force the liquidation of property as an attempt to pay off the debts. Other variations include the types of debt that a debtor can discharge, although many of these are federally mandated without exception.

The decision whether to file for Chapter 7 or Chapter 13 bankruptcy can be difficult. Bankruptcy attorney Benjamin J. Ginter runs the Law Offices of Benjamin J. Ginter in Cranford, New Jersey. Here, he talks about which chapter you need to file to wipe out your debts and make a new start in your life.

Bankruptcy is an option that often has to be considered where an individual cannot pay their debts as they fall due. A first time bankrupt will generally receive their discharge one year after the date of the Bankruptcy order. Although bankrupt has a bad stigma and is publicly advertised. It could be a useful option when dealing with individual insolvency cases.

4. Elimination of foreclosure - A major benefit of chapter 13 code of bankruptcy is that it eliminates the chances of a foreclosure. A debtor would be required to present a repayment plan to the court for approval.

In order to make sure you're not missing anything, you should hold on to all of your mail from the last few weeks, including statements, late-notices, and unpaid invoices. It's also a good idea to get a monthly statement from your bank account to find debts that get paid automatically.

About 30-40 days after you file for bankruptcy relief, you and your bankruptcy attorney will attend a meeting of creditors. The bankruptcy trustee will review your bankruptcy papers and Chapter 13 plan. Once your bankruptcy appears to be in order, the trustee will typically consent to confirmation (approval) of your Chapter 13 and your plan will be confirmed (approved).

Other courts, however, have ruled that the sale process is not completed until the appropriate company or government agent has executed a transfer deed after the sale, the purchase price of the auction has been paid in full, and the sale has been confirmed by the court. In these states, homeowners may be able to file bankruptcy and have the property listed as a part of the bankruptcy estate and turned over to the trustee.

The bankrupt person may not obtain credit beyond a certain limit without notifying the creditor of his undischarged status. Until you get the order of discharge, you still are legally forced to keep paying creditors what you owe and the creditors are permitted to contact you and ask you to pay. But after achieving discharge, a creditor legally has no right to contact you. Also an undischarged bankruptcy cannot hold or start any offices, especially when the office is related to finance.