Personal Bankruptcy: Know Whether To Choose Chapter Seven Or Chapter Thirteen

Bankruptcy laws in the United States are made to ensure the interests of the borrower are safeguarded, and are formed by the federal government and addressed accordingly by various US Bankruptcy Courts, and it is believed that each year as many as one million Americans go bankrupt and are found filing for bankruptcy. Most of these individuals that file for bankruptcy do so under different personal bankruptcy laws that include chapter thirteen and also chapter 7, and in a few instances, they can even qualify for chapter twelve, especially if they are anglers or farmers and business is owned by the family.

Filing Under Chapter Seven

You can file personal bankruptcy and at the same time do so under chapter seven in which case it is necessary for you to provide a list of all your assets to the court and also have to assign a trustee who will liquidate items in order to pay off creditors. Furthermore, filing personal bankruptcy is allowed once in seven years and the cost of filing personal bankruptcy is approximately three hundred dollars which goes towards filing fee.

If you plan on filing personal bankruptcy under chapter thirteen, it will help in reducing your debt though unlike chapter seven, does not cancel out your debt. And, chapter thirteen personal bankruptcies also means having to set out a plan for repayment with creditors and courts and assigning trustee who will make monthly payments after paying them the money. The trustee will receive payments from you and apportion them to various creditors, and an advantage to using chapter thirteen for filing personal bankruptcy is that unlike in chapter seven, under this chapter you may hold on to everything that would have been lost under chapter seven.

However, both these types of personal bankruptcy allows the debtor to rid him or herself of debts, though remember when filing chapter thirteen bankruptcy, you need to have debt that is not more than two hundred fifty thousand dollars and that such debt is unsecured, while debts that are secured should not exceed seven hundred and fifty thousand dollars.

The bottom line is that before filing for personal bankruptcy, makes sure to know what the ramifications of different chapters are and in most instances it may be better to file for chapter thirteen instead of chapter seven as the latter shows that you are a person that does not pay your debts.

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Understanding What Chapter Seven Bankruptcy Is: apply?

You hear the term chapter 7 bankruptcy quite a lot these days, however normally a proper explanation of exactly what it is is not included. Sadly many folks make dreadful errors in their bankruptcy filing because of this lack of explanation.

Certainly no one wants to become involved in bankruptcy proceedings. Anyone who does will have to have debts that greatly exceed his or her net worth and, in addition, have no visible or viable means of paying back the debts.

There isn’t just one kind of bankruptcy proceeding, in fact there are a number including chapter 7 (the focus of this article) and Chapter 11. Chapter seven is more for individuals.

The Definition Of Chapter 7 Bankruptcy

According to the law and the United States court system, Chapter 7 bankruptcy refers to liquidation of assets that are not legally exempt from liquidation in order to pay off creditors and debtors.

Chapter 7 is an option open to individuals, businesses, partnerships and corporations. There is, however, a special clause open to the individual within the framework of this chapter filing that is not available to the other entities.

The special clause for the public is called a discharge. What it basically means is that the public are able to free themselves totally from some of their debts.

Filing Chapter 7 Bankruptcy

Generally speaking to file a chapter 7 bankruptcy one mast supply the courts with copies of their tax returns, contracts of an executive nature, statements of financial affairs, all proof of liabilities and assets as well as documents to prove one’s current income and necessary expenses.

For individuals other additional documentation has to be supplied to the courts. As an individual you can expect to have to supply copies of statements of income and or employee payments, credit counseling reports etc, also students will need to supply documentation for interest payments on student loans.

If you are in a situation where filing chapter 7 bankruptcy or any other bankruptcy type is a necessity, make sure you take a visit to the US courts website. Also make sure that if you do need to take action in the way of a bankruptcy proceeding you get a good professional lawyer to deal with your case.

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How to Turn Bankrupt Greece Around and Put it on a Path to Prosperity… by Jamie McIntyre

How To Turn Bankrupt Greece Around And Put It On A Path To Prosperity… And How The Same Solutions Turned My Life From Almost Bankrupt To Self-Made Millionaire by Jamie McIntyre

Turning my own finances around from bankrupt to self-made millionaire in my twenties gave me invaluable insight into what it takes to create financial miracles.

And Greece, it would seem, needs a financial miracle…

…Or basic common sense and to make some hard decisions.

Because individual finances are not that dissimilar to that of countries. The basic principles still apply.

For example:

* Spend less than you earn

* Only go into good debt, not bad debt

* Live within your means

* Boost your incomes and diversify

* And so on

They need to be creative, not fearful. Take back control and take massive action.

Here’s what I’d do if I were in charge of solving Greece’s financial problems and rescuing it from bankruptcy:

First I’d stop living in fear of the worst-case scenario. Accept it and move on. Because anything above worst-case is a bonus.

Take charge. Tell its lenders, “Sorry. We can’t pay you right now.”

That’s what I did when I was facing bankruptcy 17 years ago.

I told my creditors, “If you ring and harass me one more time, I’m going to put you on the bottom of my list.

And don’t threaten to bankrupt me ever again. Don’t talk about it, go ahead and do it.

I’m not going to be intimidated, coerced, or harassed about money any more.

If you want to bankrupt me, make my day.

The fact is I can’t repay you right now. But I’m a man of my word and I will repay you when I can.

I’m currently working out a debt reduction plan. I’ll even send you a copy. And in the short term, I can pay you about 5% of the repayments I’m obligated to.

If you want to bankrupt me, that’s not my decision.

Whether you like it or not, my debt problems are no longer mine…they’re yours.

And if I don’t turn this around, you’re not going to get a cent.

So whether you like it or not we’re partners now, and this is how it’s going to be: I’ll pay you minimal amounts now, and I’m going to work on a plan to generate and boost my income so I can fund my debt.”

The key point is: I took back control.

I no longer lived in fear.

I was assertive, direct, and I toughened up and basically told my creditors how it was.

And I wasn’t interested in whether they liked it or not.

I wasn’t asking for their permission or for them to agree with my plan.

I told them how it would be from now on and what the plan was, regardless of how they felt. They could go ahead and bankrupt me; I didn’t care.

Because I’d already accepted the worst-case scenario: I accepted I could deal with bankruptcy.

It wasn’t the end of the world.

It took courage, but if you want to become a millionaire you need it.

If you want to be in control of your life you need to dictate the terms.

That’s what leadership is.

Speaking the truth and telling it how it is whether others like it or not

As a result I took back control. Started rebuilding my income and eventually paid off my debt.

I kept my word and never went bankrupt.

I was then able to go back to creditors and say, “I have X dollars spare right now and I’m contacting my list of creditors offering 40 cents on the dollar. Whoever takes it can have the money I have spare right now.

Do you want me to send you a cheque for 40 cents on the dollar now for full and final settlement?

Or would you like me to send the cheque to someone else on my long list of creditors? Unfortunately that drops you to the bottom of the list.”

So I negotiated reduced settlements. Once again by clearly telling them how it was, their options, and not caring whether they liked it or not.

Because I was unattached to the outcome.

And that’s the major key to being successful at anything. Focus on what you can control and let go of what you can’t.

I didn’t control my creditors actions; I controlled mine (like my offers and creativity.

And guess what?

Nearly all of my creditors gladly took the discounted settlement offer.

I even received letters of thanks from some creditors, effectively saying, “When you said you would repay us one day, I didn’t believe it. But you stuck to your word and bit by bit you paid it back.”

It restored faith in many creditors that some people are actually honourable and will stick by their word, when they could easily walk.

For me, I was just behaving the way I was raised: a country farm boy, raised in a small community where you’re expected to stick by your word and do the honourable thing.

Otherwise, as kids growing up, if you did something wrong someone would speak to your grandparents or parents.

It was natural, social accountability because you didn’t want to bring your family’s reputation into disrepute.

So what should Greece do?

The same thing.

Tell its lenders (Euro and IMF and bond holders), “Sorry. We’re going to take an interest holiday.

We can’t afford the interest bill on our debt right now.

I know you may not like it but go ahead and bankrupt us if you want; or even kick us out of the Euro.

However, that will become your problem, not ours.

We already accept the worst-case scenario and can live with it.

We’re now partners whether you like it or not.

Our return to prosperity is in your interest as much as it’s in ours.

Either way, we can’t meet our debt repayments right now and need breathing space.

Here’s our plan and what we’re going to do:

We need to stimulate our economy. And we ask for help with this; assistance to help expand the Greek economy because if we can’t, we all lose and you’ll never get a cent of your money back.

In fact if we stopped paying interest repayments we would only be running a 1% deficit this year (this is true for those who know facts of the Greek economy right now). Which isn’t bad considering we’re in a depression.

With more moderate budget cuts in areas of wastage we could free ourselves from the need for external budget funding.

And if we can focus on stimulating growth, we could quickly turn to surplus -especially because a lot of the painful work of austerity cuts have been done or are in progress.

As we stimulate growth (ideally with your assistance) and grow the Greek economy we can build surpluses and down the track be in a fiscal position to begin repaying our debt.”

You see when you accept the worst-case scenario you come from a position of strength to negotiate.

When you don’t care what others (like lenders) do, you’re in a strong position to negotiate.

And ironically Greece is.


When facing bankruptcy as I was: It was no longer my problem. It was my lenders problem.

It’s the same for Greece.

Their debt problems are no longer their problems. They’re the Euro’s problem.

And they can’t afford to let Greece completely implode or kick them out of the Euro.

So from that position there’s only one solution…

Cutting wastage to get the budget deficit reduced whilst focusing on stimulating the economy by being creative, asking for help, and redirecting government monies (saved from cut-backs of government wastage) to growing the economy.

The same thing I had to do, to go from almost bankrupt to a self-made millionaire and grow multiple incomes in my twenties.

It’s common sense and quite simplistic.

Is it easy?


Is their any other choice?


Is it the only option?


It simply takes courage, leadership, and massive action.

There is work to be done.

Are you in control of your finances, or are they controlling you?

Jamie McIntyre is the founder of the 21st Century Group of companies and CEO of 21st Century Education. He is also bestselling author, successful entrepreneur, investor, sought after success coach, internationally renowned speaker and world-leading educator.

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Choosing The Right Chapter – Guide To Bankruptcy

Federal laws designate specific rules that must be followed to be able to file bankruptcy. Although these rules are a large part of the criteria you must meet, there are also state laws that add more criteria. Bankruptcies are not to be entered into lightly, so it’s important that you understand the differences and file under the appropriate chapter that applies to your specific circumstances.

Chapter Seven bankruptcies are the most common choice for many people. By filing under this chapter, you are given a clean start; all of the debt that you claim is wiped out. The debts that can be claimed must unsecured and certain assets, if you have any, can be liquidated to repay your debt, with the remaining balance erased. You cannot claim debts like student loans, judgments from an injury case, delinquent child support, or alimony payments. Individuals or businesses can file a Chapter Seven.

When you talk of Chapter 13 bankruptcy or known as reorganization, this will allow you to take hold of some of your assets such as car or the house or you may either lose them. This option will allow you to settle your pass due accounts in a given period of time such as 3 or 5 years instead of giving up your house.

A court notification will be mailed to the creditors so they will be informed to stop collecting your payables and they are given 15 days to do this. Although this has negative effects on your credit standing but you are giving an impression that you are still sincere in paying off your debts. This will eventually help you clear your reputation as a delinquent payer.

One of the main purposes of the Act was to make sure individuals weren’t using the bankruptcy laws simply to avoid debt. By hiding their true earnings and assets, it had been possible for people to claim chapter 7 bankruptcy, where all assets are liquidated but the debtor emerges free of debt, to rid themselves of unwanted debt, and at the same time retain a comfortable standard of living afterward, and with a head start in improving their credit rating after discharge. Now, anyone wanting to file for bankruptcy has to attend government approved credit counselling.

Bankruptcy can really have terrible effects to every homeowner. Regardless of the kind of bankruptcy filed it still has alarming results on your credit score. It is a given fact that the credit standing plays a vital role in every credit transaction.

It will also determine if there are perhaps other ways the debtor could avoid bankruptcy altogether. One way is by using debt settlement companies, who charge a fee to the debtor, but take over the debt, usually at a reduced amount which they negotiate on your behalf.

The advantage with these companies is that your credit record is nowhere near as badly affected as it is should you become a bankrupt. However, care must be taken when using one of these companies as many have turned out to be scams, taking the debtor’s cash, but not dealing with the debt itself, leaving the debtor worse off.

Harris Smith is a writer on personal finance education. Her article tackles the pros and cons of home equity line of credit

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Detailing the bankruptcy process

Have you ever imagined a situation, for your company where you are under tremendous pressure to discharge all the asset and money to pay to your creditors? Such situations are quite common in these fragile economic conditions of US. These can be very stressful at times, without proper guidance and sufficient knowledge. The simplest way to tackle such a situation in US is to get the help of a legal institution. Institutions like these help in filing what is known as bankruptcy. Bankruptcy 954 is the way to do it in Florida through, the legal consultation.

Bankruptcy may be looked upon by many as an economic taboo, but it is constituted as a federal law to protect citizens and institutions from specific relief at different conditions. Bankruptcy filing will initiate an automatic stay that stops all your lenders to collect debts from you or an institution until they are sorted and disbursed as per law of the state.

To make simpler Bankruptcy 954 institutes the client to help in legal proceedings. The advantage of a legal expertise is that it will weigh all aspects of a bankruptcy filing. They help in understanding the advantage and disadvantage with respect to the client’s financial standings.
Some of the common advantages of filing a bankruptcy in the court of law are

1. It allows in getting the professional life in order.
2. The debt load on the institution is limited to zero.
3. It helps in savings interest and penalties to tax debts.

Some of the disadvantages attached to filing bankruptcy are as below. It should be noted that filing bankruptcy is an individuals or company’s decision and will always not turn dis advantageous.

1. The creditor relationship can become strained.
2. The cost of filing a bankruptcy is to be notified.
3. Once a bankruptcy is filed it will become extremely difficult one during a later stage.
4. It will remain in the credit history for the next 10 years.

Bankruptcy 954 is a very easy process and can be done very quickly. It is worthy to note that the information exchanged by the individuals through this process will remain strictly confidential and will not be shared with any authority without proper consent. The steps of filing a bankruptcy are quite understandable and it requires some documentation with consulted help. Bankruptcy filing through this organisation will cost under lot of headers, namely lawyer fees for counselling, filing fees, required course fees, Chapter 13 fees. Apart from all of these there may be additional fees to be paid under the below situations during the course of action. These are when a debtor, files a joint petition. Consultants in Bankruptcy 954 helpline offer bankruptcy filing for Foreclosures, Repossessions, Call/Threats, Medical bills, Utilities shut off, Wage garnishments, Credit card bills, License suspension and Lawsuits. Once you have decided to file bankruptcy, you will have to contact these consultants either online of through phones. The rest of the procedures are done at a very minimal consulting cost.

If you are looking to file Bankruptcy 954 in Florida, then Contact Florida Bankruptcy Advisors hepling you file for Repossessions, Foreclosures, Medical bills, Call/Threats, License suspension and Lawsuits. We will personally receive your phone calls and advise you throughout the case.


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