What is Bankruptcy?
A bankruptcy is a legal process by which a person can not pay their obligations can be relieved of payment of some or all of their debts and get a fresh start. The right to declare bankruptcy in the United States of America and its territories is provided in the law passed by Congress in 2005 known as the Law on Bankruptcy Abuse Prevention and Consumer Protection ( “Bankruptcy Abuse Prevention and Consumer Protection Act) . All bankruptcy cases are handled in bankruptcy courts that operate as units within the federal courts. The filing of a bankruptcy case stops immediately the recovery of creditors.
What can you do a bankruptcy?
A bankruptcy can relieve your obligation to pay all or many of its debts, is known as the baton. The purpose is to allow a fresh start.
A bankruptcy can stop the execution of the mortgage on your home and allow the opportunity to pay the arrears. Does not eliminate your mortgage or other charges as such but gives you the opportunity to pay up their arrears within the next five (5) years.
A bankruptcy can prevent repossession of your car or other property, even to oblige the creditor to return property repossessed.
A bankruptcy can stop the seizure of wages, harassment and other practices by collectors and can restore or prevent termination of services such as water, electricity, telephone, he can defend himself against complaints that allow you do not accept debit, you can protect your co while you are in the bankruptcy process.
What a bankruptcy can not do for you?
A bankrupt can not solve all their financial problems and is not necessarily the right solution for all individuals.
A bankruptcy can not eliminate certain rights of secured creditors or guaranteed. These are the creditors who have a mortgage, lien or security on any property such as home mortgages and car loans. A bankruptcy can force the creditors to obtain payment through the bankruptcy process but can not eliminate its obligation to pay because you may lose the property as collateral if you do not pay. A bankruptcy does not allow him to retain the property as collateral unless you continue the payments.
A bankruptcy will not relieve certain debts which the law provides special treatment such as alimony, certain debts related to divorce, many of the student loans, court ordered restitution, fines in criminal cases and some contributions . Co bankruptcy can protect the debt is paid while in bankruptcy and therefore do not obtain a waiver of a debt that could be co-responsible for all or part of the debt. You could then pay their co what it paid for you when your financial situation allows it.
A bankruptcy will protect only the debts you have when filing bankruptcy will not get relief from debts incurred after filing bankruptcy.
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