Wednesday, November 7, 2007

Bankruptcy Laws

U.S. bankruptcy laws fall under federal statutory law provided by Title 11 of the United States Code. They have been periodically revised and amended to provide full and fair cover for genuine cases and to eliminate the potential for their unlawful abuse. Since this is federal jurisdiction, individual states cannot pass legislation governing and regulating bankruptcy. US bankruptcy laws have been standardized so as to have universal application. However, state governments can lay out parameters for the definition of personal insolvency and indebtedness.

The Supreme Court formulated US bankruptcy laws in consultation with Congress, and all supervision and administration of bankruptcy proceedings fall under its jurisdiction. The two fundamental kinds of bankruptcy in the United States are Chapter 7 and Chapter 13 bankruptcy, which have been explained in some detail earlier.

In filing for either Chapter 7 or Chapter 13 bankruptcy, a debtor’s obligations may vary to some degree depending on the circumstances. In Chapter 7 bankruptcy, the filing party is required to make a full disclosure of assets and liabilities, including secured and unsecured property. Within 30 days of making an application, the applicant must declare whether he/she intends to retain or surrender such assets. These intentions must be executed within 45 days of filing.

The applicant must further provide a complete list of creditors, after which the bankruptcy court arranges for a meeting of the applicant with all mentioned creditor. During this meeting, all their doubts can be raised and must be addressed to their satisfaction.

Chapter 13 bankruptcy can be initiated by either the debtor or his/her creditors. After filing, a trustee is appointed to supervise the debtor’s assets. Effectively, these are then immovable asset which can neither be sold nor transferred.

US bankruptcy laws basically benefit the applicant debtor, and since recently enforced amendments, the interests of creditors are given equal priority.

Bankruptcy provides detailed information about bankruptcy, bankruptcy attorneys, bankruptcy faqs, and more. Bankruptcy is affiliated with New Bankruptcy Laws.


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New Bankruptcy Law - Effects on Natural Disaster Victims

You’ve heard of the new bankruptcy law, whether you plan to file for bankruptcy or not. The law referred to as "The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005", took effect on October 17, 2005. The law imposes restrictions on who can file for bankruptcy under chapter 7.

Following Hurricanes Katrina and Rita, the United States Trustee’s office announced special guidelines intended to lessen the impact of the new law on victims of natural disaster. Many victims of the hurricane not only lost their homes but have no way of meeting the stringent load of paperwork required to file for bankruptcy.

Some of the exemptions made for victims of natural disaster include the following:

Mandatory Credit Counseling – The requirement to undergo compulsory credit counseling is waived.

Paperwork Load – Filers who cannot provide the paperwork needed to file for bankruptcy will not be penalized.

Passing the “Means Test” – Filers have a lot more leeway, when it comes to passing the means test because lost income and other negative financial effects of the disaster are considered as “special circumstances” that may allow a debtor, who otherwise wouldn’t pass the “means test” to file for bankruptcy under chapter 7.

Access the summary list of changes per the new bankruptcy law and how potential filers will be affected.

Visit http://www.poorcreditgenie.com for in-depth information about the new bankruptcy law and other bankruptcy articles.

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Chapter 7 Bankruptcy Lawyer – Why You Need One

Filing for Chapter 7 bankruptcy is a complex legal process that takes time. Yes, you can file bankruptcy on your own. But with all the legal technicalities involved and with a new law in place, it is better if you hire a Chapter 7 bankruptcy lawyer. Your creditors can fight you on Chapter 7; therefore it is best to have a legal expert by your side. Chapter 7 bankruptcy is basically a liquidation of your non-exempt property to disburse your debts.

An experienced Chapter 7 bankruptcy lawyer will look after your interests aggressively. He or she will give you expert advice on how to manage your debt and will help you in your efforts towards a financially secured future. If you are not sure whether Chapter 7 is right for you, he/she can offer you other alternatives and will inform you about the exemptions available to you in the state where you reside.

Filing for Chapter 7

Your Chapter 7 bankruptcy lawyer will tell you if you are eligible to file for Chapter 7. With the new law in place, you might have to first go through credit counselling before you become eligible.

If you are eligible for Chapter 7, the next thing that you need to do is to make a list of all the debts that you owe. You can pull your credit report for each credit-reporting agency to get an accurate picture of your debts. You will need to go through lot of paperwork. You would need to sign on the dotted line before the papers are filed.

Once the papers are filed it would take around three to four months for the court to decide whether you are really eligible to file. If you are found eligible you will receive official confirmation. The whole Chapter 7 process can take around a year.

The decision to file bankruptcy is often a difficult one to make. When you choose to do so, you want to make sure that you have the right lawyer to assist you with the piles of paperwork you will have to undoubtedly fill out and file. If you are serious about cleaning up your debts, Chapter 7 is right for you. He or she will be aware of the process and will save your time and money in the long run that might otherwise be wasted on unnecessary errors.

Click here to find chapter 7 bankruptcy lawyers online. You can research bankruptcy lawyers online to find one that suits you. Also learn why you need a lawyer to help you file bankruptcy.


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