Bankruptcy is a complicated process. All bankruptcy filings include two main parties - the debtor and the creditor. The debtor can be a company or an individual. The creditor is usually an organization or a company. In most bankruptcy cases there are several creditors.

Debts can be of two different types - secured and unsecured. Your car loan, for example, is a secured debt. By lending you the money to buy a car, the bank has acquired a legal claim on it. If you fail to make your car loan repayments, the bank can take possession of your car.

Secured debts can’t be fully discharged. If a debtor having secured debts files bankruptcy he has two options: he can either make the payments and keep the asset or he can stop making the payments and have the asset repossessed. In a bankruptcy settlement, secured creditors are always paid first.

Types of Bankruptcy

Bankruptcy is of four different types. Each type of bankruptcy is named after its respective chapters in the United States Bankruptcy Code.

Chapter 7 Bankruptcy

Straight bankruptcy or ‘liquidation’ is filed under Chapter 7. In a straight bankruptcy case the trustee sells off or liquidates all non-exempt assets held by the debtor. The money raised from the sale is used to pay off the debts to the fullest extent possible. Both individuals and corporations can file Chapter 7 bankruptcies. The portion of the debt that can’t be repaid through liquidation is discharged.

A chapter 7 bankruptcy is not quite suitable for businesses, because it makes it impossible to conduct business operations. It is also not the right choice for Individuals who want to keep a property like a home or a car, but have failed to pay the mortgage or car loan. That is because chapter 7 bankruptcy allows the mortgage holders or car loan creditors to take your property to cover your debt.

Chapter 11

Among the bankruptcy filings, chapter 11 is the most complex. This is the type of bankruptcy filed by most troubled businesses. Individuals too are eligible to file bankruptcy under chapter 11. In a Chapter 11 bankruptcy filing, the debtor continues to function. He is allowed to maintain ownership of all assets, and is required to work out a reorganization plan to pay off creditors. In the past, debtors were allowed to take any amount of time to come up with their reorganization and payment plan. But it is no longer possible. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 require all debtors to submit their reorganization plan within a 120-day time limit. If the debtor fails to do so, creditors can come up with their own plans.

Chapter 12

This bankruptcy is for farm owners. Under a chapter 12 bankruptcy the debtor is allowed to own and control his assets and workout a repayment plan with the creditors.

Chapter 13

Chapter 13 bankruptcy is much like chapter 11 bankruptcy. The main difference is that while the chapter 11 is mostly filed by businesses, chapter 13 is for individuals. Under this bankruptcy the debtor is allowed to retain control and ownership of assets. He is also allowed to work out a three to five-year repayment plan. If the income of the debtor isn’t sufficient to pay off all the debts, a portion of the debt may be discharged. There are also some limits on the amount of debt involved. For more articles like this bookmark www.ChicagoBankruptcyLawyers.net

Declaring chapter 7 bankruptcy was not an easy decision to make; however, it gave you a chance to start over and manage your finances more effectively. Take steps to ensure that you will not need to declare bankruptcy again.

Keep Your Credit Cards Below the Credit Limits

In the event you need to borrow money, lenders like to see that you have credit cards you have responsibly managed, and not maxed out or charged over the limit. You should keep your credit cards but strictly ban yourself from using them to purchase anything you cannot repay in full upon receiving your monthly credit card statement.

Responsibly managing your credit cards by making on time payments and keeping your card balance within the approved credit limit will help to improve your credit score over time.

Monitor your Credit Reports with all Credit Bureaus

It is a good idea for you to regularly monitor your credit reports with all three of the major credit bureaus - Experian, Equifax and TransUnion. Whenever necessary, request that corrections be made to your credit report. You can make these requests via mail or online.

When reviewing your credit report for inconsistencies, be sure to:

Check your credit limits and make sure they are reported correctly.
If you have recently obtained a bankruptcy discharge, make sure that any accounts included in your bankruptcy claim are marked satisfied or paid in full on your credit reports.
If there are any late payments or other negatives noted incorrectly, request that the reporting errors are corrected, and follow up until that is done.

To keep your credit score updated, ensure that any negative entries older than ten years are deleted from your report. Be very careful taking this action because deleting the wrong or too many accounts can affect your credit score negatively.

Ask Your Creditors to Re-Age your Accounts

After several months of consistent on time payments, you can request that your accounts be re-aged to remove any references to past delinquencies. This will help to repair your credit score over time.

Develop a Plan to Get Out and Stay Out of Debt

If you are still trying to manage some of your debt, develop a plan for how you are going to become debt-free. Then, implement your plan and stick to it until you are out of debt. Make sure that you always make your credit card payments on time and learn how to manage your money more effectively.

You can rebuild your financial life after bankrupty. Get your finances in order and start making new and improved financial decisions. Make sure that the credit bureaus have correct information reported on your credit reports and whenever possible, move to have old negative entries deleted.

By: Glenn A. Brown, DMD, MBA, Esq.

Article Directory: http://www.articledashboard.com

Is Declaring Bankruptcy on Student Loans Even Possible? by Josh Ramos

When facing a severe financial crisis, many people turn to bankruptcy as a way to wipe out their debts and experience a new financial beginning. This is certainly an option that you should consider, but you should discuss this carefully with your lawyer to determine if this is the best option for you. One important consideration is what actual debts you wish to be wiped out. Declaring bankruptcy on student loans, for example, is not usually allowed.

1. Chapter 7 Bankruptcy - An Introduction by Chimezirim Chinecherem Odimba

   Chapter 7 Bankruptcy is sometimes referred to as liquidation. The bankruptcy trustee in its proceedings gathers and sells the debtor’s non-exempt assets. The proceeds of the sale are used to pay the creditor. The individual debtor can retain certain exempt property. The debtor’s remaining assets are sold by the trustee. Individuals, partnerships and corporations can qualify for relief under this.

2. Exploring the Legal Issues of Chapter 13 Bankruptcy by Jon Ericksen

   Years ago, the legal system allowed people to file for Chapter 7 bankruptcy in order to cancel their debt obligations. Known as a "personal liquidation," most of their creditors were left without recourse. In 2005, the laws were changed to reduce the number of borrowers who could use a "personal liquidation" as a financial escape hatch.

3. How and Why Does a Business Bankruptcy Auction Occur? by John Fabrogo

   Business bankruptcy is often a complex and all-too-common an occurrence. While it’s never pleasant for a UK business to become insolvent, frequently a business bankruptcy auction is held to liquidate assets for the purpose of paying creditors. Here’s some information about business bankruptcy auctions that may shed some light on this unpleasant but necessary process.

4. Characteristics of Reputable Bankruptcy Auctions by John Fabrogo

   UK bankruptcy auctions can be great places to find bargains of all types. From automobiles to antiques and collectibles, a UK bankruptcy auction can be the source of many excellent finds. But the auction is only as good as the auction house or auctioneer that runs it. So, here’s some information to help you decide if the entity or person holding the auction is reputable.

5. Some Reasons For a Bankruptcy Auction Sale by John Fabrogo

   You may have wondered how company assets might end up in a bankruptcy auction sale in the UK. If a company behaves in a manner counter to sound business practice, then a bankruptcy liquidation auction is virtually inevitable. Here are some common reasons a company might find itself forced to into a bankruptcy auction.

6. Bidding at a Bankruptcy Auction? Here’s Some Important Information by John Fabrogo

   A UK bankruptcy auction can be an exciting event that nets bidders tremendous values when a debtor is forced to liquidate his property. Unfortunately, criminals, criminal enterprises and even terrorist organizations often use bankruptcy auctions as vehicles to launder money.

7. Which Chapter Bankrupt Should You File? by Robin Boddy

   Comprehending the categories of bankruptcy may appear confusing and difficult. The majority of people have heard the numbers and chapters, however have no concept what they mean. The 4 principal sorts of bankruptcy are Chapter 7, Chapter 11, Chapter 12, and Chapter 13. These designations are rooted in the chapters, or elements, of federal financial laws describing bankruptcy.

8. Considering Bankruptcy? by John W Cooper

   Is your credit situation making you think about filing for bankruptcy? Understand this is a "last-resort" option for individuals who are experiencing trouble paying their bills.

9. Filing Chapter 13 Bankruptcy - A Procedural Overview by Harvey Cox

   Chapter 13 bankruptcy law is on occasion referred to as reorganization bankruptcy. It’s uniquely different than Chapter 7 bankruptcy. In a Chapter 7 bankruptcy almost all of your debts are canceled out. But, you must forfeit any belongings that aren’t exempt from seizure by your creditors. Under Chapter 13 bankruptcy law, you don’t have to relinquish any personal possessions. But, you’re expected to use your income to pay off most or all of what you owe your creditors. Your payments to creditors are made over time, generally from three to five years. The time parameter turns on the amount of your debts and income.

10. What Are the Changes in the Chapter 7 Bankruptcy Laws? by Josh Ramos

    Bankruptcy has long been a legitimate option for those who find themselves completely overwhelmed by their debt. While it is a serious step and should not be taken lightly, filing for bankruptcy is certainly a possibility for many people. It does have long-term financial consequences, but it can also provide a much needed fresh start for many people.

11. Are You Going to File Chapter 11 Bankruptcy? by Robin Boddy

    The most widespread type of bankruptcy in the U.S. is Chapter 11 bankruptcy. It has also been termed "Reorganization bankruptcy". It’s normally utilized in big businesses or organizations under the struggle of financial emergency. However, it’s also used by corporations, individuals, and partnerships.

12. Changes in Bankruptcy Law - What You Need to Know to Protect Your Family’s Future by Josh Ramos

    It seems that more and more people are struggling to pay their bills these days. Bankruptcy is one option that you should consider if your situation is severe enough. However, many people are under the impression that they can no longer file for bankruptcy due to recent changes in bankruptcy law.

13. Bankruptcy by Location by Cole Collins

    Alongside the economic worries plaguing Delaware and most of America, a new concentration toward relief of accumulated credit card debts has marked our citizenry of late, and, much as it should be seen as vital for both household and national budgeting to minimize all unsecured burdens, tending toward debt relief is more complex than it may initially seem.

14. Bankruptcy Public Records - Does Everyone Have to Know That You Declared Bankruptcy? by Josh Ramos

    People who are considering bankruptcy often hesitate for a number of reasons. They may be worried about the long-term consequences like not being able to obtain credit or buy a house in the near future. However, for some people the shame that supposedly comes with bankruptcy is one of the main concerns. To be sure, bankruptcy public records will be accessible for those who are interested.

15. After Bankruptcy - Credit Score Too Low? by Shayne Sherman

    If you have filed bankruptcy in the past and you are suffering still from a low credit score unable to get approved for anything, then this article is for you! Read how to start to repair your credit and get on with your financial well being.

16. Financial Bankruptcy - Learn the Fundamentals by Robin Boddy

    You have used up all of your funds, are overwhelmed by debt, and foresee your situation no as impossible to escape. If this is you, you ought to contemplate financial bankruptcy. Filing for bankruptcy is a legal procedure that includes enduring financial consequences, so you ought to confer with an attorney and a financial counselor prior to reaching this conclusion. On the other hand, if you believe that bankruptcy is the only escape from your financial circumstances, this is what you may look ahead to.

17. Save Yourself by Filing For Bankruptcy by Tom Mudry

    If you are looking for ways to simply escape the problem without putting too much weight on you then you can simply file for bankruptcy; this method will automatic stop creditors from collecting your debt payment. After you filed for bankruptcy, an automatic court order will be given in order to stop companies from doing any further action against you, not until your case was finally resolved. The great thing about this is the fact that creditors are not bound to repossess your car, or even dig for a foreclosure of your house; they cannot do anything that will harm your properties.

18. Filing Chapter 7 Bankruptcy - A Procedural Overview by Harvey Cox

    Chapter 7 bankruptcy is a liquidation proceeding. If you own some non-exempt assets, they’re sold by the Chapter 7 trustee and the proceeds are distributed to your creditors according to the priorities set up in the Bankruptcy Code. In nearly all consumer cases, all assets are exempt. There are, therefore, no assets to liquidate and no money to pay out to creditors. Chapter 7 is usually the most simplified and fastest form of bankruptcy. It’s available to individuals, married couples, corporations and partnerships.

19. Why You Should Choose a Bankruptcy Law Practice by Josh Ramos

    Among the other stressful problems you have to deal with when filing for bankruptcy, choosing a lawyer is one more thing you need to consider. It is important, especially with the recent changes to the bankruptcy law code. The law has become more complex, and filing bankruptcy without a lawyer is simply not feasible these days.

20. Taxes and Bankruptcy by Chad R Fisher

    If you have recently filed for bankruptcy, do not forget to file your taxes! The only way Al Capone was brought down was because he failed to file his federal taxes, so you can rest assured that if you fail to file, you will get caught. If you filed bankruptcy within the last year, you should strongly consider hiring a professional tax attorney to review your information. A bankruptcy is a red flag for the IRS and can raise your chance of getting audited (which is no fun).

21. How to File Bankruptcy - Everything You Need to Know About Bankruptcy by Dale P. Stewart

    Filing for bankruptcy could be as easy as you climbing on the top of your desk and shouting, "I am filing for bankruptcy". Two problems here - 1) The legalities of filing for bankruptcy are not as simple and easy as you think, and 2) Whatever is the case, bankruptcy is certainly not one of the episodes of your life, which you would like to be so happy about. With these facts being given, you would do well to understand how to file bankruptcy.

22. Chapter 12 Bankruptcy - Important Facts by Dale P. Stewart

    Coming to think of it, Chapter 7 and Chapter 13 are two popular chapters when individuals desire to file for bankruptcy. In this backdrop, you would find that Chapter 12 Bankruptcy is aimed to provide assistance to family farmers who face bankruptcy. In essence, this chapter too seems to be tailored to individuals, of a specific category albeit.

23. Chapter 7 Bankruptcy Information That You Have to Know by Dale P. Stewart

    Want to know chapter 7 bankruptcy information? The following article will highlight some important facts you should know about it.

24. Should I File Bankruptcy? It Depends on a Few Factors by Dale P. Stewart

    if you are asking yourself- should i file bankruptcy? You should know some things first. Read this article to find out.

25. Life After Bankruptcy - Do I Have One? by Michael W. David

    Bankruptcy may seem like the end of the world for many but it is meant to be the start of a new beginning. In many cases to get the so called "fresh start" you’ll need to go through some necessary steps to guarantee you improve your credit score after bankruptcy. This article will help you have a life after bankruptcy.

26. What Does the New Bankruptcy Law Mean to You? by Josh Ramos

    In difficult economic times, many people look to bankruptcy as a way to relieve their financial problems. However, many are not sure that bankruptcy is still available to them because of the recent changes in the bankruptcy law. In case you’re not familiar with these changes, we wish to cover these briefly because they’re quite important to understand.

27. Restructuring Bankruptcy Or Chapter 13 by Robin Boddy

    Restructuring bankruptcy is also known as chapter 13 bankruptcy. Plainly stated, a chapter 13 bankruptcy is a "restructuring" of your debts with a planned payment arrangement that suits your earnings. In general, this time span to repay all the debts is three to five years.

28. Does the New Bankruptcy Law Make it Harder to Stop a Foreclosure? by Josh Ramos

    Many people have complained about the new bankruptcy law that was passed by Congress and signed by President Bush in the year 2005. I’ve heard some lawyers refer to it as bad for consumers or just a waste of time.

29. How to Declare Bankruptcy - The Simple Steps by Dale P. Stewart

    Want to know how to declare bankruptcy? The following article will tell you how, in simple steps.

This website is intended to assist you with the tough questions, as well as provide you with updates, tips, resources and information to assist you in making a sound decision regarding bankruptcy.   This website offers broad and general information that may not always apply specifically to your situation, or the bankruptcy laws of Chicago, Illinois.  That is why it is always urged that you should contact an attorney in Chicago to discuss how Illinois laws may differ.