Bankruptcy - If You Have Tried Everything Else

You have tried talking with your creditors - you’ve tried (and been denied) a loan- you’ve discussed all of your options with one of our Certified Credit Counselors and there seems to be no other option but bankruptcy… While we encourage everyone to avoid bankruptcy, there are times when it may be inevitable. At that point, what do you do? Consult a bankruptcy attorney - someone who specializes in bankruptcy. The attorney will guide you through the possible options, and will review your budget and credit situation. Together you can decide if this is your best option. For Approved Credit Counseling Agencies please visit http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm By Steve Axtell

Posted on Feb 10, 2009

What is a bankruptcy and how does it work?

The primary purpose of bankruptcy is to give a person, who is unable to repay their debts, a chance to start over financially. There are two (main) types of individual bankruptcy. Under Chapter 7, debtors are sometimes required to turn certain property that they owned when they filed their bankruptcy petition, over to a court trustee. This property is sold, and the proceeds are used to pay the creditors. Any remaining balance owed to the creditor is then discharged. In a Chapter 13 bankruptcy people may keep their property, but must commit to a court ordered repayment plan of their debt. The repayment plans typically last three to five years and at the end of that time any balance remaining is...

Posted on Mar 10, 2008