About Bankruptcy
Albuquerque Bankruptcy provides information about bankruptcy to people thinking about filing bankruptcy, the bankruptcy information they need to make an informed decision.
One of the main purposes of Bankruptcy Law is to give a person, who is hopelessly burdened with debt, a fresh start by wiping out their debts.
Bankruptcy is a court-based process that is meant to give people a financial “fresh start” by getting them out from under burdensome debts. When the bankruptcy process is complete, the filer is typically released from personal liability for most debts. This site provides introductory information on bankruptcy.
About Bankruptcy
Bankruptcy is a court procedure that helps consumers and businesses get rid of their debts and repay their creditors. If you can prove that you are entitled to it, the bankruptcy court will protect you during your bankruptcy proceeding. In general, bankruptcies can be categorized into two types — “liquidations” and “reorganizations.”
Among the different types of bankruptcies, Chapter 7 and Chapter 13 proceedings are the most common for individuals and businesses.
Types of Bankruptcy
Chapter 7 bankruptcy, sometimes call a straight bankruptcy is a liquidation proceeding. The debtor turns over all non-exempt property to the bankruptcy trustee who then converts it to cash for distribution to the creditors. The debtor receives a discharge of all dischargeable debts usually within four months. In the vast majority of cases the debtor has no assets that he would lose so Chapter 7 will give that person a relatively quick “fresh start”.
Chapter 13 Bankruptcy is also known as a reorganization bankruptcy. Chapter 13 bankruptcy is filed by individuals who want to pay off their debts over a period of three to five years. This type of bankruptcy appeals to individuals who have non-exempt property that they want to keep. It is also only an option for individuals who have predictable income and whose income is sufficient to pay their reasonable expenses with some amount left over to pay off their debts.
Some things bankruptcy can do:
- Eliminate the legal obligation to pay most or all of your debts. This is called a “discharge” of debts.
- Stop foreclosure of your home and allow you to catch up on missed payments.
- Stop repossession of a car or other property, or, in some situations, force the creditor to return property even after it has been repossessed.
- Stop wage garnishments.
- Stop debt collection harassment.
- Restore or prevent termination of utility service for nonpayment of previous bills.
- Get your drivers license back if it has been suspended because you didn’t pay court-ordered damages for a driving accident.
More About Bankruptcy
In most bankruptcy cases, you will only have to go to one hearing called “meeting of creditors”. The trustee will ask you a few questions such as if you have had a bankruptcy discharge before. Creditors are permitted to attend and ask you questions.
The Bankruptcy Court charges a filing fee of $200.00 for a Chapter 7 case and $185.00 for a Chapter 13 bankruptcy case. You do not have pay the fees when filed.
Bankruptcy will be on your credit report for 10 years. Filing bankruptcy does not mean you will not be able to get credit. Many companies lend to people who have filed bankruptcy and re-established their credit by making payments timely.
To learn more about bankruptcy contact an experienced bankruptcy attorney to see if bankruptcy is for you.
