Purpose And History Of Bankruptcy In The United States By Brian Garvin And Jeff West

Bankruptcy is a declaration by a borrower of his or her inability to pay his or her debtors that balance that is owed. Companies can also declare it though it is usually declared by individuals whose debt has become overwhelming.

The main purpose of bankruptcy is to give a debtor a sort of fresh start by relieving him of most of his debts or to pay back his creditors what he can, though he might not be able to pay back everything. It usually allows people to be relieved of their legal obligation to repay most of their debts by submitting any non-exempt assets to a bankruptcy court so that the court can then distribute those assets among the accounts that are still owed money.

There are two forms declaring yourself bankrupt. The first kind is liquidation in which all of the person’s non-exempt assets are sold off in an attempt to settle debts with creditors. All of the other forms fall under the reorganization category, which is when the person or company is given an opportunity to restructure his or their assets and debts to better pay everything off. Typically creditors take a portion of the person’s income. Many businesses enter into reorganization to stay in an operating capacity.

In the United States, bankruptcies are under Federal jurisdiction by the Constitution as declared in article one, section eight of the Constitution. This article states that Congress can enact “uniform laws on the subject of bankruptcies throughout the United States.” The implementation of these laws, however, is found in statute law. These statutes are incorporated into the Bankruptcy Code which is found at Title Eleven of the United States Code and then is subject to state law in instances that the federal law is not sufficient to cover the circumstances of an individual’s case.

The United States requires all bankruptcy cases to be filed in the United States Bankruptcy Court, which is adjacent to the United States District Courts. These cases are very dependent upon individual state laws, especially when dealing with exemptions and claims. Because these cases are so dependent upon state law, bankruptcy is not usually recognized in more than one state at a time.

The United States has six types of bankruptcy:

Chapter Seven: liquidation for businesses and individuals
Chapter Nine: municipal
Chapter Eleven: reorganization and rehabilitation, usually used by businesses though it can also be used by individuals.
Chapter Twelve: rehabilitation for fishermen and farmers
Chapter Thirteen: rehabilitation that comes with a payment plan for people who have a regular income source
Chapter Fifteen: for international and ancillary cases.

The most common chapters to be filed are chapter seven and chapter thirteen, and chapter thirteen is favorable to chapter seven in that an individual can keep his assets but is required to devote some of his income to the repayment of his debt, which is spread out over a period of three to five years. There are some who believe that bankruptcy does not actually benefit individuals and that credit counseling is better.

Resource: http://www.isnare.com/?aid=220900&ca=Finances

Needing Your Bankruptcy Records By Larence Hubert

If you are in need of a copy of your bankruptcy records due to loss from an accident such as a flood or fire or personal negligence, you can find relief in record replacement online. You can contact a bankruptcy record site online to send for a copy of your records online through a search by name, state or social security number. You can get this copy free of charge, though numerous sites charge a fee ranging twenty to thirty dollars per search/copy. These copies can be sent by email or through the U.S. mail. This is all a matter of personal preference.

Since section 107 of the bankruptcy code makes any filing in a bankruptcy case public record, this information is now even more accessible due to technology such as the Internet. This can raise concerns for many people who are worried that their personal bankruptcy record information is available for all to see. With identity theft/ identity fraud in full swing it is easy to see that this concern is a valid one. Privacy and protection methods are said to be in place for this specific purpose. Information such as a debtors name, address, attorney, and case number, filing type and file date and location are all located in one easily searchable bankruptcy record document. Assets, liabilities, figures and case status are also included in most bankruptcy records.

If you need a list of previous creditors or a copy of discharge papers to correct your credit report you can find these documents online as well. You can find them through an online search using an online investigative firm. You can find any bankruptcy from the past ten years by name, state or social security number. Though this is helpful for the person who was the previous debtor it can also be hindering as well. Some employers choose to look up bankruptcy filings to base job hire upon. Though this can seem unfair, it is not illegal.

The ability to replace your bankruptcy records is easily available to you. Once you have replaced your records it is best to keep your bankruptcy records on file in a safe place such as a lock box or locking file cabinet for safekeeping. This will better prevent you from making another search for records online saving you time and money.

Anyone who has ever been late on a bill knows creditors are more than happy to give you a call to remind you of your balance. Many times the calls turn a little harsher in demeanor. There are laws to protect consumers on harassment from creditors, however most collection agencies could care less about following these laws and will take them to the limit to try to harass people into paying them.

Most often creditors will threaten to call your employer, threaten to print your name in the paper and threaten to take your car. They are nasty people who are simply out to get the money you owe…no matter what the cost. If you’ve got one creditor calling, chances are they aren’t the only one.

If you file for bankruptcy, you’ll find the calls will stop. It may about a week for the creditors to be notified of the pending action and calls may still be made until they are notified. When the creditors are notified they will be advised to contact the bankruptcy attorney for all information. If they continue to call after being notified of the bankruptcy filing, they can be held legally accountable.

If you’ve ever tried applying for a loan, you know how important your credit report can be. Whether you’re buying a car or a house, your credit can not only determine if you get the loan but also the interest rate you qualify for. Since interest rates ultimately determine how much you pay for something in the long run, it can be important to get low rates on large purchases.

A credit report contains a lot of information about you. Your name, addresses, and other necessary information in included on each report. Credit reporting agencies compile these reports and allow them to be available to potential lenders, with your approval. They keep a cumulative report on you, from your first credit account forward.

The federal law called the Fair Credit Reporting Act regulates credit-reporting agencies. The purpose of this law is to make sure that the credit reporting is fair and accurate. Credit reporting agencies give out the credit information to companies and individual consumers. You can gain access to your credit report at any time.

Resource: http://www.isnare.com/?aid=220440&ca=Finances

Needing Your Bankruptcy Records By Larence Hubert

If you are in need of a copy of your bankruptcy records due to loss from an accident such as a flood or fire or personal negligence, you can find relief in record replacement online. You can contact a bankruptcy record site online to send for a copy of your records online through a search by name, state or social security number. You can get this copy free of charge, though numerous sites charge a fee ranging twenty to thirty dollars per search/copy. These copies can be sent by email or through the U.S. mail. This is all a matter of personal preference.

Since section 107 of the bankruptcy code makes any filing in a bankruptcy case public record, this information is now even more accessible due to technology such as the Internet. This can raise concerns for many people who are worried that their personal bankruptcy record information is available for all to see. With identity theft/ identity fraud in full swing it is easy to see that this concern is a valid one. Privacy and protection methods are said to be in place for this specific purpose. Information such as a debtors name, address, attorney, and case number, filing type and file date and location are all located in one easily searchable bankruptcy record document. Assets, liabilities, figures and case status are also included in most bankruptcy records.

If you need a list of previous creditors or a copy of discharge papers to correct your credit report you can find these documents online as well. You can find them through an online search using an online investigative firm. You can find any bankruptcy from the past ten years by name, state or social security number. Though this is helpful for the person who was the previous debtor it can also be hindering as well. Some employers choose to look up bankruptcy filings to base job hire upon. Though this can seem unfair, it is not illegal.

The ability to replace your bankruptcy records is easily available to you. Once you have replaced your records it is best to keep your bankruptcy records on file in a safe place such as a lock box or locking file cabinet for safekeeping. This will better prevent you from making another search for records online saving you time and money.

Anyone who has ever been late on a bill knows creditors are more than happy to give you a call to remind you of your balance. Many times the calls turn a little harsher in demeanor. There are laws to protect consumers on harassment from creditors, however most collection agencies could care less about following these laws and will take them to the limit to try to harass people into paying them.

Most often creditors will threaten to call your employer, threaten to print your name in the paper and threaten to take your car. They are nasty people who are simply out to get the money you owe…no matter what the cost. If you’ve got one creditor calling, chances are they aren’t the only one.

If you file for bankruptcy, you’ll find the calls will stop. It may about a week for the creditors to be notified of the pending action and calls may still be made until they are notified. When the creditors are notified they will be advised to contact the bankruptcy attorney for all information. If they continue to call after being notified of the bankruptcy filing, they can be held legally accountable.

If you’ve ever tried applying for a loan, you know how important your credit report can be. Whether you’re buying a car or a house, your credit can not only determine if you get the loan but also the interest rate you qualify for. Since interest rates ultimately determine how much you pay for something in the long run, it can be important to get low rates on large purchases.

A credit report contains a lot of information about you. Your name, addresses, and other necessary information in included on each report. Credit reporting agencies compile these reports and allow them to be available to potential lenders, with your approval. They keep a cumulative report on you, from your first credit account forward.

The federal law called the Fair Credit Reporting Act regulates credit-reporting agencies. The purpose of this law is to make sure that the credit reporting is fair and accurate. Credit reporting agencies give out the credit information to companies and individual consumers. You can gain access to your credit report at any time.

Resource: http://www.isnare.com/?aid=220440&ca=Finances