File Bankruptcy Online
Many people would prefer to file bankruptcy online, but even with modern technology this option is not yet available. You can, however, locate bankruptcy forms and bankruptcy attorneys via the Internet. Important information regarding various bankruptcy chapters and the new bankruptcy laws can also be found online.
Although you can't file bankruptcy online, the Internet provides numerous tools and resources to assist with filling out forms and preparing financial calculations. Many people prefer to use bankruptcy software, while others prefer hiring a bankruptcy lawyer to help them prepare legal documents and represent them in court.
In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act, (BAPCPA) was enacted. These new bankruptcy laws made filing for bankruptcy protection considerably more difficult. Few people possess the ability to file without legal assistance.
BAPCPA requires debtors to repay a portion of their debts through a repayment plan. The amount to be repaid is determined through the 'means' test; a financial tool which calculates median income levels for each state within the continental U.S.
Chapter 13 payments generally extend for three to five years and can place serious financial constraints on individuals. A large percentage of the debtor's disposable income must be paid to the bankruptcy Trustee until all debts are paid in full.
If debtors miss a payment or are unable to adhere to their repayment plan, creditors can petition the court and request dismissal. A bankruptcy judge will review the case and determine if the debtor is eligible to file for Chapter 7; also known as liquidation. Chapter 7 allows debtors to liquidate assets to repay creditors. Any remaining balances are written off and debts are discharged.
Bankruptcy remains on credit reports for up to ten years. This can cause additional financial strain. People who file bankruptcy typically end up paying higher interest rates when credit is extended. Bankruptcy can affect the amount of insurance premiums charged. Utility companies may require additional deposits to provide necessary services.
All bankruptcy alternatives should be explored before making a final decision. These might include debt consolidation, credit counseling, debt settlement or budgeting. We invite you to view our bankruptcy resource center to learn more about available options.
If you are facing bankruptcy or foreclosure, contact Simon Volkov today. As a private investor, Simon specializes in helping people liquidate real estate and financial holdings. Simon can be reached by phone during normal business hours or via email anytime.
Published on January 23, 2009 at 11:22 AM | Comments: 1