What Is Bankruptcy?

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What Is Bankruptcy?

Bankruptcy is a legal method of eliminating debt and providing a means for debtoppressed people to obtain a fresh start. In many cases, bankruptcy means the elimination of the debt that you owe to your creditors. There are two primary forms of bankruptcy, Chapter 7 and Chapter 13.

Other Divorce and Bankruptcy FAQs

Q: Who Can File Chapter 7 Bankruptcy?
A: You must reside or have a domicile, a place of business, or property in the United States or a municipality. You must not have been granted a Chapter 7 discharge … More
Q: Does My Divorce Decree Protect Me If My Ex-Spouse Has Filed For Bankruptcy And She Has Listed Me As A Co-Signer On A Schedule D?
A: If you are contractually bound with your exspouse on a debt, the creditor can require the entire payment of that debt from your share of the community property … More
Q: Why Is It Legal To Wipe Out Our Debts?
A: More so than in any other time in our country`s history, our economy is based on consumer debt. In fact, in this age of multibillion dollar corporate bailouts, easy … More
Q: What Effect Does Bankruptcy Have On Child Support?
A: Filing for bankruptcy protection does not allow your ex to discharge past due child support obligations. Any back payments owed for child support cannot be included as … More
Q: Will I Have To Give Up Any Of My Property To My Creditors?
A: The vast majority of filers get all or most of their debts discharged (wipedout) without giving up any of their own property. This is because federal as well … More
Q: Are Some Of My Debts Not Dischargeable?
A: Some kinds of debts are not dischargeable, which means that you will remain obligated to repay them even after you complete your personal bankruptcy. Examples of … More
Q: What Is A Chapter 13 Bankruptcy?
A: Under a chapter 13 bankruptcy, a debtor proposes a 35 year repayment plan to the creditors offering to pay off all or part of the debts from the debtors` future … More
Q: When Is A Chapter 13 A Better Alternative Than A Chapter 7?
A: There are several situations where a chapter 13 is preferable to a chapter 7. A chapter 13 bankruptcy is normally for people who have too much income to file a Chapter … More
Q: How Quickly Will My Creditors Get Notice Of My Bankruptcy?
A: Within a couple of weeks of the filing of your petition, the bankruptcy court clerk mails your creditors notice of the filing and the imposition of the automatic stay. … More
Q: Do I Have To Pay My Bills During The Bankruptcy Proceeding?
A: For the most part, the answer is no. For specific property (usually secured) such as your car loan or your houses mortgage that you plan on keeping you should probably … More