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Bankruptcy Information

There is plenty of bankruptcy information available these days. Considering more than 1 million people have filed for bankruptcy protection this year, many Internet marketers are capitalizing on this top-ranking keyword. The problem is, much of the information is used solely for profit and not to provide sound advice.

In order to obtain accurate bankruptcy information, it is important to go to the source. Bankruptcy filings are overseen by the U.S. Trustee Program which is a division of the U.S. Department of Justice. The Trustee Program website provides comprehensive bankruptcy information and resources to help debtors determine if bankruptcy is their best option.

In 2005, major changes were made to the U.S. Bankruptcy Code through the Bankruptcy Abuse Prevention and Consumer Protection Act. While BAPCPA was intended to protect consumers from creditor abuse, it placed numerous restrictions on debtors and made filing for bankruptcy protection considerably more difficult.

The new bankruptcy laws require debtors to undergo credit counseling through an approved agency. BAPCPA also implemented the 'means' test; a financial tool used to compare debtor's income to their states' median income level.

In a nutshell, if debtors earn more than their states' average income rate, they will be required to file for Chapter 13. This bankruptcy chapter allows debtors to retain their assets through reaffirmation of debts. A repayment plan must be submitted to and approved by the bankruptcy court.

The majority of repayment plans last for three to five years. During this period, debtors must contribute approximately 60-percent of their disposable income toward repayment of debts. They are not allowed to incur any new debts unless they obtain approval from the court Trustee.

Chapter 13 repayment plans can place a financial stranglehold on most people. Oftentimes, debtors fail out of bankruptcy within a matter of months. When this occurs, creditors can petition the bankruptcy court to request dismissal. If the court agrees and the bankruptcy is dismissed, debtors lose all protection from the court and creditors can initiate collection actions.

Filing bankruptcy is a rather complex and complicated process. Few people can muster through the process without the assistance of a bankruptcy attorney. It is important to work with a lawyer who is well-versed in BAPCPA and understands the intricacies of the new laws.

Our bankruptcy article library provides a wealth of bankruptcy information. Additionally, our article database includes information regarding bankruptcy alternatives, debt consolidation, debt management, credit counseling, budgeting and more. We hope the bankruptcy information provided here helps you make an informed decision and assists you in locating the resources you need.

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Published on December 19, 2008 at 08:29 PM | Comments: 1

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It can be quite overwhelming to choose from all the different online financial advisers available. I definitely had a tough time. It's nice that sites like and offer good information on bankruptcy.

lukemattt | January 16, 2009 7:47 AM


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