What is Bankruptcy?
Here is a useful guide to bankruptcy. It should be noted that bankruptcy is not to be entered into without first having sought professional advice.
Bankruptcy is seen as the last resort. Bankruptcy is perceived to be the only way to escape the ever-constant demands for payment by bill collectors and credit companies alike.
Bankruptcy is not something that should be rushed in to. Certainly there are times when it can be very useful, but there are other times when declaring bankruptcy would be a big mistake.
The purpose of bankruptcy is to convert your possessions, and any wages you receive, into lump sum and instalment payments for creditors. A debtors purpose to apply for their own bankruptcy is to form a moratorium (a group of creditors) to agree part repayment of all outstanding debts, and when the agreed repayment has been met, to have a 'clean slate'.
The constraints which are put upon you once you are declared bankrupt make it only a viable option in the most extreme of cases. It is more likely that an Individual Voluntary Arrangement will be the answer to severe debt problems, since it provides much of the relief offered by bankruptcy but without the severe constraints which bankruptcy imposes.
Individual creditors cannot take action against you. They must make a claim through the 'trustee' (the name of the person who controls a bankruptcy) or write off their debt.
When appointed the trustee will advertise your demise in a number of newspapers to give all of your creditors a chance to make a claim against the bankruptcy.
It is also the responsibility of the bankrupt to make an honest list of all creditors: as a bankruptcy is also a chance to start again the bankrupt should ensure every creditor is notified. Not that a creditor could make a claim against you after a bankruptcy, but it will get all your creditors of your back.
A bankruptcy order takes precedence over all other forms of debt recovery. All creditors have the right to be included in the list of creditors, and benefit from any payment arrangement.
If you own your home you would be fortunate to keep it. You can keep household 'essentials' such as, bed, fridge, heating appliances but not, TV's, video recorders, computers - unless used for work, or used to get work.
All 'tools of trade' are protected, but will be scrutinized.
A bankruptcy will normally last until the third anniversary of the bankruptcy order. During this time you are not allowed to hold a public office, become a company director (or in all but name run a business) and you must not apply for credit over £250 without notifying the lender of your bankruptcy.
Your credit file will show your bankruptcy for six years from the bankruptcy order.
You may freely reprint this article provided the author's biography remains intact:
About The Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
 Google News Updated : Mon, 07 Jul 2008 00:55:50 GMT Bosox, Cubs each put 7 players on All-Star rosters - The Associated Press
The Associated Press - NEW YORK (AP) - Maybe Manny Ramirez, Alfonso Soriano and the rest of the Boston Red Sox and Chicago Cubs should just play their own All-Star game. All-Star rosters revealed Cubs win 7-1 and seven All-Stars; I'd say it was a good day Publ.Date : Mon, 07 Jul 2008 00:00:58 GMT Google, Zen Master of the Market - New York Times
New York Times - By STEVE LOHR Bill Gates, who walked away from full-time work at Microsoft last month, was perhaps the foremost applied economist of the second half of the 20th century. Why Microsoft will win Yahoo Yahoo! re-enters merger talks with Time Warner Publ.Date : Sun, 06 Jul 2008 22:57:50 GMT 'Hancock' a signature opening for Smith - Los Angeles Times
Los Angeles Times - The offbeat superhero story brings in $66 million over the holiday weekend, marking the star's eighth straight No. 1. He's hot, but the reviews were not. ‘Hancock’ Powers to the Top of Box Office Will Smith is box office superhero with 'Hancock' Publ.Date : Mon, 07 Jul 2008 00:03:03 GMT Obama cites faith as key to change - Boston Globe Boston Globe - Barack Obama called "active faith" an obligation of religious Americans and a chief agent of societal change in a speech yesterday at the national meeting of a black church group. Veterans Group Urges Support to 'Finish the Job' Veterans’ Group Critical of Obama Plans Costly Ad Campaign Publ.Date : Sun, 06 Jul 2008 06:58:31 GMT Weather Channel Is Sold to NBC and Equity Firms - New York Times New York Times - By MICHAEL J. de la MERCED An investor group led by NBC Universal and two private equity firms clinched a deal for the Weather Channel on Sunday after three weeks of negotiations. NBC Universal, Bain, Blackstone Buy Weather Channel (Update1) NBC and its Partners Announce Deal To Buy Weather Channel and Assets Publ.Date : Sun, 06 Jul 2008 21:48:12 GMT AT&T's Odd iPhone Offer - TechNewsWorld
TechNewsWorld - By Eric Benderoff Some of the details surrounding AT&T's iPhone prices make little sense, writes Eric Benderoff. The company will sell a 3G iPhone with no contract for a $400 premium. iPhone 3G line forms in NYC for a green cause New iPhone Can Decouple From AT&T, for a Price Publ.Date : Sun, 06 Jul 2008 11:04:21 GMT Obama Campaign Criticizes Rival McCain's Economic Proposals - Bloomberg
Bloomberg - By Alison Vekshin July 6 (Bloomberg) -- Democratic presidential candidate Barack Obama's advisers criticized Republican rival John McCain's economic proposals as both candidates prepared to focus on the US economy this week. Obama Advisers Tout Tax Plan That topic we love to hate Publ.Date : Sun, 06 Jul 2008 19:27:55 GMT Amazon RSS |
PARLOT::Ebooks, Scripts,
Websites, and more... It happens all the time. Debt collectors try to collect... Read More Debt consolidation versus debt negotiation are two options that are... Read More How do I lower my debts?There are several ways of... Read More If your financial worries are preventing you from sleeping at... Read More Credit card debt elimination can be done with a good... Read More Nathaniel Hawthorne's book The Scarlet Letter states in Chapter 2,... Read More It has been said that everyday more and more people... Read More Most Americans are aware of the sweeping changes in U.S.... Read More Debt negotiation and settlement can give you a drastic reduction... Read More An inability to manage credit, growing debt and bankruptcy are... Read More Most American consumers are living too close to the edge.... Read More There is a law all smart people break.Parkinson's law.Parkinson's law... Read More If you are considering bankruptcy as a solution to your... Read More A debt solution like bankruptcy should really only be used... Read More If you have incurred substantial personal debt, consider these options:... Read More Want to know if your attitude towards your finances is... Read More There is more than one kind of bankruptcy. You should... Read More In all the technical discussion you hear about credit... Read More To be out of credit card debt is your dream... Read More Is there a way to get out of debt without... Read More Can you stop debt collectors ? . . .You better... Read More Negotiations with creditors have failed. Repossession is imminent and foreclosure... Read More Debt relief is a topic on a lot of consumers'... Read More Bankruptcy still remains a mystery in the eyes of many... Read More Almost all Americans carry credit card debt. Actually, over 40%... Read More
Adsense
websites
Debt Validation: Do you have to pay ?
Debt Consolidation Versus Debt Negotiation
How Do I Lower My Debt Burdens?
Bankruptcy As An Option
Credit Card Debt Elimination
Bankruptcy - The New Scarlet Letter
5 Ways to Get Out of Debt
Mandatory Credit Counseling for Those Considering Bankruptcy
Debt Negotiation and Debt Settlement
Debt Consolidation and Personal Finances: Learn the Truth!
Bankruptcy - Your Fresh Start
The ONE Law You Should Be Breaking
Bankruptcy: Who is to Blame?
The Last Debt Solution Should Be Bankruptcy
How to Reduce Your Debt in 5 Easy Steps
Assess Your Financial Attitude and Eliminate Your Debt Forever
Bankruptcy: Which Chapter Do I File?
The Human Side - Debt Stress
Out of Credit Card Debt - Without Filing Bankruptcy
Debt Relief with this Simple Formula
Stop Debt Collectors
Bankruptcy, Is It A Way Out
Questions to Ask a Credit Counseling Service about Debt Relief
Bankruptcy 101
Debt: Dont Pay Your Minimum Balance
Affordable and Reliable Web Hosting Starting at $4.49/Month
Dealing with Thingitis
Debt is quickly becoming an epidemic in America. However, through... Read More
Do It Yourself Debt Relief
With mounting bills and unforeseen hardships, you may be considering... Read More
New Bankruptcy Law ? Where?s the Consumer Protection?
On April 20, 2005, President Bush signed into law the... Read More
Debt Relief with this Simple Formula
Is there a way to get out of debt without... Read More
Bad Credit Home Loan To Get You Out Of Debt
A "bad credit home loan" can help you climb your... Read More
Five Major Ways to Save Money
There are two main roads to improving your personal finances:... Read More
You Can Make Financial Resolutions Anytime
The New Year often brings with it a desire to... Read More
Debt Collectors; And what you can do to Get Them Out of your Life
FTC opinion letter on validation Section 809(a) of the FDCPA,... Read More
How to Get Triple A Credit in 25 Days
Good credit is everyone's dream. A wise use of credit... Read More
Debt Negotiation and Debt Settlement
Debt negotiation and settlement can give you a drastic reduction... Read More
Get Debt Free
If you once have been caught in the debt trap,... Read More
Credit And Debt Relief--A One Stop Solution
Amy Wright, 34, was extatic when her realtor showed her... Read More
Out of Credit Card Debt - Without Filing Bankruptcy
To be out of credit card debt is your dream... Read More
The Road to Debt Relief
Living with debt is not something someone hopes for, but... Read More
Tips For Saving Money
Still living from pay to pay? Or envying those great... Read More
5 Options Toward Debt Relief
If you are in debt, well over your head in... Read More
New Bankruptcy Law ? Five Essential Things to Know
Last April, Congress passed the Bankruptcy Abuse and Consumer Protection... Read More
How To Avoid Medical Collections
With medical collections costing doctors millions upon millions of dollars... Read More
Save Money When Going Out
It seems as though whenever we go out for the... Read More
Craving For Financial Freedom
Have you ever felt trapped in a Rat Race and... Read More
The Debt Free Lifestyle
Many people have been taught that you cannot get ahead... Read More
What Is A FICO Score?
Your FICO score or credit score as it's commonly called... Read More
Bankruptcy: Which Chapter Do I File?
There is more than one kind of bankruptcy. You should... Read More
Learn The 15 Debt Elimination Steps You Must Take Immediately!
What Everybody Needs To Know...Learn The Truth About Debt Elimination... Read More
What is Debt Settlement?
Debt settlement is the process of negotiating with your creditors... Read More
Debt Relief |