How Bankruptcy Courts Help Individuals In Clearing Debt Burdens

Filing for bankruptcy involves a great deal of considerations before you can actually opt for it. It is an overly difficult and challenging decision to make for most people because of the complexities involved in bankruptcy laws. While on one hand it is believed by many that bankruptcy can only be a cause of loss for all parties involved, it is claimed on the other hand that it can be highly beneficial in clearing all your unsecured debts, thereby helping you in starting afresh. An experienced bankruptcy attorney can help appropriately in determining whether it is a favorable option for you. There are actually various forms of bankruptcy that be chosen from on the basis of individual financial situations and requirements.

Personal bankruptcy is an option made by bankruptcy courts for individuals trying to come out of a serious debt situation. It is a legal process of declaring insolvency, which is available only to individuals and not to organizations or traders. Personal bankruptcy filing can either be made willing by the debtors themselves, or can be forced on them by the creditors, who can submit petitions with the court for declaring them bankrupt. Personal bankruptcy can be used only for clearing unsecured debts such as unsecured loans, overdrafts, credit cards, unpaid tax and more. You’ll have to continue paying for certain debts like alimony and child support, back taxes, student loans, etc. Once the court accepts your petition, all your credit cards and bank accounts would be immediately closed down. Though this might be intimidating for most people, it should nevertheless be viewed as a good way to start afresh.

Bankruptcy courts have divided personal bankruptcy into two types to meet the requirements of all kinds of individuals under the debt burden. It is divided into chapter 7 bankruptcy and chapter 13 bankruptcy. Chapter 7 bankruptcy considered ideal for people having non-exempt assets in their possession, which can be taken over by the court for making payments to the creditors. However, interestingly, merely 5% of the individuals filing for this type bankruptcy have any non-exempt properties.

Chapter 13 bankruptcy, on the other hand is appropriate for individuals, who make a decent income despite suffering from severe debt burden. In this case, the court negotiates with the creditors in order to provide the individuals with easy repayment plan, enabling them to make easy monthly payments over a fixed period of time, only after they have taken care of all their necessary, monthly expenditures. Chapter 13 bankruptcy also helps in reducing the debt amount considerably.

One of the biggest advantages of personal bankruptcy is that, the moment your petition is accepted by the court, all the creditors and legally notified and instructed on cutting off all contacts with you. They are only allowed to communicate with the court for any possible issues and concerns. This is a great relief for the debtors, who were constantly harassed and bothered by the lenders prior to the bankruptcy filing. Following bankruptcy, the court takes care of all the issues related to debt payments and communication with the creditors.

Verify Bankruptcy Court Records Before Involving In Financial Matters

Bankruptcy is a legal process used by individuals and organizations to declare their incapability to pay off debt amounts. There are several rules involved in bankruptcy filing that have to be followed strictly in order for the court to accept your petition. Moreover, there are various forms of bankruptcy, which has been designed to help people with different financial situations. It is advisable to consult knowledgeable bankruptcy attorneys to know every detail involved in the process and how you can benefit from it.

Individuals and companies in desperate need for overcoming financial crises can opt for bankruptcy to get rid of all their debt liabilities. The only way they can declare themselves bankrupt is by an appropriate and successful bankruptcy filing. These filings are saved as bankruptcy court records as proof for their poor financial history.

It is extremely important to check these court records before involving in any kind of monetary matters with an individual or enterprise. For example, if you agree to enter into a partnership with a party who has been declared bankrupt, it probably implies that you are willing to pay their debt amount.

While you have every right to look into an individual’s court records, you should be careful enough not to access the information from any source that might charge you for it. Always remember that you are entitled to obtain such information for free since they are considered public record. Hence, it is important to know the right places to look for it.

The most common places to find bankruptcy court records are the state, federal or county offices. In case you plan to make this search yourself, it is necessary to make an individual request with the offices. The other option is to hire a professional service for conducting the search.
In the Unites States, you can make a call to the automated VCIS bankruptcy court number to get bankruptcy information on an individual. In this case, you would need to provide the concerned individual’s name and social security number. Knowing the case number can add substantially to the convenience of finding the required information. If you want to search online, there are a number of websites providing links to the VCIS phone number. Also, several courts have their own website, where you can perform your search.
There are public record websites to enable you to conduct a free online search for bankruptcy information. The data provided on these websites are updated on a regular basis, and allows a thorough background search for criminal and bankruptcy records. To perform this online search you need to provide the name, state and social security number of the individual concerned.

Been declared bankrupt implies that an individual or organization has had a poor financial history. It is important to obtain such information before you get into any kind of business relation with a party. Appropriate bankruptcy information can be highly helpful in saving you from major financial losses. Moreover, this information can be obtained conveniently and free of cost from a number of sources.

How Bankruptcy Courts Can Help In Overcoming Debt Situations

There are several factors that might lead to a severe debt situation. The most common possible reasons for the financial crisis are the careless use of credit cards and the habit of taking repetitive loans without bothering to pay them off. Some individuals are also into a habit of taking more and more loans in order to pay back the former ones. Such careless acts can lead you to debt situations that are extremely difficult and complicated to deal with.

While there are several debt solutions available, depending on individual circumstances, bankruptcy is one of the most significant one that can be immensely helpful in dealing with monetary crises. Owing to the various negative verdicts associated with the concept of bankruptcy, it is overly essential to consult a knowledgeable bankruptcy attorney or a reputed debt solution service to know all the pros and cons involved in the process. A reliable bankruptcy attorney can help immensely in deciding whether bankruptcy is appropriate for you, and how bankruptcy courts can help you overcome the debt burdens. Though the various negativisms associated with bankruptcy can be intimidating, there are nevertheless a number of advantages that can make it a convenient option.

Constant phone calls, messages and other harassments from creditors can be highly disturbing and humiliating. Bankruptcy is an excellent way to put an instant stop to all those disturbances. The moment your bankruptcy filing is accepted by the court and you are declared bankrupt, all your creditors are notified and legally prohibited to make any direct contact with you. Following this process, creditors can only communicate with the court.
Moreover, bankruptcy uses an automatic stay to instantly put a stop to all the legal proceedings against you that might have been initiated by your creditors. This is unquestionably an extremely helpful way of saving your properties from being sold, for at least a definite period of time.
Various forms of bankruptcy involve losing all your assets to the court for paying off the debt amount. However, there are provisions in the bankruptcy law that can actually enable you to retain some of your valuable assets instead of losing all of them. The provisions may differ from state to state, and depend on individual financial situations.
Though it cannot be denied that bankruptcy can impact your credit record badly, it is nevertheless true that at the end of the entire process, you are free of the debt burdens and the past credit records, thereby being entitled to a fresh start.
Bankruptcy courts do not prohibit you from filing for bankruptcy even if you have filed for it once before. However, in some cases, you have to maintain a definite time period between two successive filings. For example, while you can file for chapter 13 bankruptcy as many times as you need without maintaining any time gap, chapter 7 bankruptcy demands a minimum of 8 year gap between two filings in a row.

Seeking professional advice can help you immensely in choosing the right form of bankruptcy that would efficiently relieve you of the financial difficulties.