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is a federal law that allows debtors to shed the burden of
unmanageable debt and obtain a fresh start. If you are overburdened
with high debt and feel hopeless; if you are fed up with threats and
harassment from your creditors, you may benefit from the
protection Bankruptcy offers. The decision to file a
bankruptcy should not be taken lightly, but used properly Bankruptcy
can be the start of a new financial life.
I am a "debt relief
agency" under federal law. I help people file for relief under
the United States Bankruptcy Code.
bankruptcies are filed under Chapter 7 or Chapter 13 of the Bankruptcy
Code. In a Chapter 7 bankruptcy, which is sometimes known as
a straight bankruptcy or a liquidation bankruptcy, a Trustee is
appointed to investigate, assemble and eventually sell your nonexempt
assets, distributing the proceeds to your creditors. Most
consumer debt can be discharged through this process. In a
Chapter 7 Bankruptcy the Trustee is only entitled to take your
"nonexempt" assets. Whether your property is exempt or nonexempt
is primarily determined under state law, and not under federal law.
While you will need to discuss your specific situation with a
qualified bankruptcy attorney, it is common for individuals in a
Chapter 7 bankruptcy to have only exempt assets.
Chapter 13 Bankruptcy, which is sometimes known as a reorganization
bankruptcy or a wage-earner bankruptcy, the Trustee does not usually
get involved with your assets, but instead focuses on your future
disposable earnings. Through a Chapter 13 repayment plan, you may
be able to repay all or a portion of your debts, but under generally
more favorable terms. Most of the debts that are not paid through
the plan will be discharged.
Not all debts are dischargeable in
bankruptcy. Determining which type of bankruptcy is right for
you can only be made after consultation with a qualified bankruptcy