GOTCREDIX BANKRUPTCY INFORMATION

What is Bankruptcy?

Personal bankruptcy is a legal procedure that can give people who cannot pay their bills a fresh start.


A serious consideration

The decision to file for bankruptcy should be made only if it is the best way to deal with financial problems. Under the Fair Credit Reporting Act -- which is a federal law -- a bankruptcy can remain on your credit report for as long as 10 years. It won’t clean up a bad credit record, and could actually make it hard to obtain credit. In addition, there are some debts, such as child support and student loans, that will not be forgiven in bankruptcy.


Two approaches

Chapter 13, or reorganization, allows debtors to keep property that they might otherwise lose, such as a mortgaged house or car. Reorganizations may allow debtors to pay off or cure a default over a period of three to five years, rather than surrender property.

Chapter 7, or straight bankruptcy, involves liquidation of all assets that are not exempt in your state. The exempt property may include items such as work-related tools and basic household furnishings, among others. Some of your property may be sold by a court-appointed official or turned over to your creditors. You can file for Chapter 7 only once every six years.


Before filing for bankruptcy

It is strongly recommended that you contact your local NFCC member office before filing for bankruptcy. They may help you find an alternative to bankruptcy that is better for you and your situation.

Bankruptcy Made E-Z Software, Kit or Guide

Planning a personal or business bankruptcy to escape your mounting debts? The last thing you need are hefty legal bills to add to your headaches. Bankruptcy Made E-Z shows you how to file your own bankruptcy, takes the confusion out of the process, and saves you thousands of dollars. Contains state and federal exemptions, the bankruptcy forms, and a complete explanation of the bankruptcy laws. Available for Mac and PC.