Mandatory Credit Counseling for Those Considering Bankruptcy

Most Americans are aware of the sweeping changes in U.S. bankruptcy law that were made by Congress recently. These changes, strongly supported by the credit card industry, were designed to make it more difficult for Americans to file for bankruptcy under Chapter 7 of the Federal bankruptcy code. Chapter 7 allows consumers to essentially have all of their debts wiped away by the court. While many people will still be able to file under Chapter 7, many more will have to file under Chapter 13, which requires the establishment of a repayment plan. A less publicized provision of the bankruptcy bill is the one that requires debtors who are considering filing for bankruptcy to first undergo credit counseling. What does this mean for consumers?
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Chapter 13 bankruptcy basics

The purpose behind Chapter 13 Bankruptcy filing is rehabilitation of the debtor. Meaning you are given the opportunity to repay some or all of your debts.but under generally better terms (lower or no interest). Rather than having to liquidate assets to pay off debts, this process is designed to allow the debtor to use future income to pay off creditors. Chapter 13 Bankruptcy is basically an adjustment or reduction of debts for a debtor with regular income.
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Bankruptcy Chapter 13

This article provides useful, detailed information about Chapter 7 Bankruptcy.
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Chapter 7 Bankruptcy

This article provides useful, detailed information about Chapter 7 Bankruptcy Law.
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Comments on 7 bankruptcy chapter personal

peed])emon
Date: 2008-01-11 12:07:37

Eliminating legal obligation of debt: It is one of the main reasons why people go for Bankruptcy. Main goal of bankruptcy filing is to get a rid of debt and to have a fresh start. Either Chapter 7 Bankruptcy or Chapter 13 Bankruptcy helps people clear many debts.

financeb0t
Date: 2008-01-11 12:07:37

Furious price-cutting has, during the past four months, compelled Circuit City to replace 3,400 sales clerks with lower-paid hires, pushed Tweeter Home Entertainment into Chapter 11 bankruptcy and forced CompUSA to close more than half its stores nationwide. Not since prices for personal computers plunged in the early 1990s have so many retailers..

AVINGS
Date: 2008-01-11 12:07:37

When individuals or businesses are facing financial difficulties and inhibiting debt they may seek to obtain relief through the legal process of bankruptcy. A person may file for Chapter 7 bankruptcy and be able to eliminate all or part of the debt. However, they may choose to file for Chapter 13 which stretches out the payments on existing debts.

irenevfinanceur
Date: 2008-01-11 12:07:37

The other day, an interesting question came into the 713Training.Com office from a paralegal working on a Chapter 7 bankruptcy petition. The debtor was a widow who claimed most of the debts were only in her husbands name. The paralegal wanted to know if the debts of a dead person should be listed on the bankruptcy petition.

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