Bankruptcy

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Bankruptcy

Bankruptcy Information & Advice. Bankruptcy Experts in Your Area. Is Bankruptcy Right For You? Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their creditors. A declared state of bankruptcy can be requested or initiated by the bankrupt individual or organization, or it can be requested by creditors in an effort to recoup a portion of what they are owed. However, in the overwhelming majority of cases, the bankruptcy is initiated by the "bankrupt" individual or organization.

If you are thinking of filing for bankruptcy, there are facts you need to know before you make a decision.

First, understand that filing for bankruptcy should be a last resort if you have borrowed money and have absolutely no way or repaying it. Filing for bankruptcy will have a very negative effect on your credit history for 10 years or longer, and may also impact your quality of life.

If you do declare bankruptcy, you will need to file with the bankruptcy court a complete list of all your outstanding debts and of all your assets. Your assets will fall into one of two categories: Exempt and non-exempt. Exempt assets are those that you do not have to use to repay your debts. Generally speaking, this includes the equity in your home, a certain amount of equity in your automobile(s), a small amount for clothing, and a small amount for personal items.

The court will then appoint a bankruptcy trustee to oversee the payment of your debts. These debts will also fall into one of two categories: Secured and non-secured.