Online Bankruptcy Help Critical Prior To Filing Bankruptcy

By filing bankruptcy, debtors inevitably have the chance to get their debts discharged. But what exactly happens when a debtor files for a bankruptcy is possibly something that most borrowers aren’t aware of. Thereby it is important for a bankruptcy filer to have a thorough understanding of the intricacies involved in the entire bankruptcy process. To that effect, individuals who are considering filing a chapter 7 personal bankruptcy need to know that the new bankruptcy law passed by the Congress in 2005 has made it more difficult for debtors to completely get rid of their debts. Under the new procedures, focus is being maintained on making the debtor more responsible and for ensuring this; the debtor is subjected to a “Means Test” in order to qualify for a chapter 7 bankruptcy. The Means Test helps determine the net disposable income available with the debtor. To get more information about it is imperative for a debtor to avail consultation with personal bankruptcy . This could be critical as most debtors nowadays find it difficult to qualify for a chapter 7 bankruptcy solution.

And if a debtor is not eligible for a chapter 7, he is required to file chapter 13 bankruptcy which involves a court supervised monthly repayment plan to pay back the creditors. Nevertheless, when debtors file for legal protection, under chapter 13 bankruptcy rules, bankruptcy confirmation proceedings are mandatory. Popularly known as the “re-organization” process, the rules require the debtor to furnish a repayment plan to the bankruptcy court. The court appointed “Trustee”, who takes care of the administrative aspects of the case, is authorized to carry out a confirmation hearing if the proposed plan is in accordance with the regulations stipulated by the United States bankruptcy code and the new bankruptcy law. The entire bankruptcy confirmation process is normally over in 45 days of the “341 meeting” convened by the “Trustee”, in which the creditors can question the debtor regarding his ability to repay their debts. However, once the repayment plan or bankruptcy confirmation takes place, debtors are required to regularly pay the monthly installments to the Trustee who takes the responsibility of distributing it to the creditors each month. Usually, the repayment plan is scattered across a period of three to five years. And after the debts are repaid completely, the chapter 13 bankruptcy is discharged.

While it could be true that by filing bankruptcy, a debtor can reduce his excessive secured and unsecured debts, it is imperative for you to know that a bankruptcy could more damage than any good as it could impact the credit scores for a long time to come. Hence, if you are considering exploring bankruptcy options you should first consider bankruptcy alternatives like consumer credit counseling, debt consolidation or debt settlements by availing bankruptcy advice from reputed online professional service providers such as www.Bankruptcyonly.com which could help you get proper guidance and information.

By filing bankruptcy, debtors can inevitably get their debts discharged. However, under new bankruptcy law it could be hard for a debtor to qualify for a chapter 7 personal bankruptcy. To understand the entire process and get more information you need to consult qualified and experienced chapter 7 bankruptcy lawyers.