Question:
I am drowning in debt. I have three kids and we rent a home now and are barely able to make the electric and water payments... we have a credit card and a car loan that are both threatening to sue me. I have nothing. There is nothing of value in my home at all. I don't have the money to pay anything more that what HAS to be. If I consider bankruptcy, what will it take care of? Please be specific becuase I don't know a lot about the new laws. Thanks for your help.
Answers:
7 most important things about bankruptcy will help you get an answer.
1. Bankruptcy is process adopted by federal court process catering to individuals and businesses repay their debts or clear their debts under the protection of bankruptcy court. Also known as "reorganizations " or "liquidations", bankruptcy is often the last recourse to get out of any debt.
2. When the property of the debtor is sold to recover and pay off the debt it is called Chapter 7 bankruptcy. Contrary to popular belief, all the property owned by a debtor is not sold, some part of it is left with him to allow him to start afresh.
3. When there is no sale of property but the debt are reorganized so as the debtors, are able to repay them over a long period it is called Chapter 13 bankruptcy.
4. Both these types of bankruptcy have a large number of rules, and exceptions, suited to different kind of debts, individuals and other concerns.
5. The "ticket in" is counseling session that everyone who wishes to file a bankruptcy must attend. This session must be attended at least six months prior to filing for bankruptcy. This term was adopted in the new bankruptcy law.
6. The "ticket out" means to attend a financial education class from listed agencies before getting approved for bankruptcy. This was also adopted by new law. During this session the the court will also determine according to predetermined standards by IRS that what all is required for food, clothing, shelter etc. and what all can be used to recover debts. Read more from: http://www.credit-card-gallery.com/artic...
http://bankruptcy.findlaw.com/new-bankru...
Just write a letter to all your creditors that says "HaHa Suckers" Move out of your home sell your kids, take the dog and run!
You will atleast have to be able to pay your lawyer fees
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