Bank finance articles and tips

It is not uncommon for a person who is preparing to file Chapter 7 bankruptcy to question whether or not they should continue to try and pay their bills. Most people that are in the position of filing bankruptcy are already behind on many of their bills. They may only pay the bills they feel are the priority while letting the other ones fall behind. When getting behind on your bills the credit card companies in particular, are notorious for harassing people almost immediately. They constantly call, send notices, write threatening letters, and use aggressive collection companies faster than some of the other creditors are known to do. Credit card companies take legal action faster than it would take for the individual's mortgage company to foreclose on their home, so many people send them money to make them go away. Plus, the credit card companies know that the squeaky wheel gets the grease and they know very well that the debtor just wants the annoying calls to stop so they send money to the creditor over some of the others, such as the mortgage company....

While most people tend to think of Chapter 7 when considering bankruptcy, the truth is not everyone will qualify. In general, it is much easier to qualify for Chapter 13 because there is less income restrictions. There are fewer eligibility rules for Chapter 13, but also very different risks and benefits....

With so many problems in the economy, many people are drowning in credit card bills and other kinds of financial problems with seemingly no way out. While it should never be taken lightly, declaring Chapter 7 bankruptcy can provide a way out and a fresh financial start for those who are simply overwhelmed by their debt.

The goal of Chapter 7 bankruptcy is to completely eliminate your debt instead of creating a repayment plan like you would in Chapter 13 bankruptcy. With Chapter 7, you are supposed to surrender any non-exempt assets you have in order to pay off as much of your financial obligations as possible. In practice, however, the vast majority of people who declare chapter 7 don't have many assets to speak of, and they are simply trying to eliminate their debts altogether....

Bankruptcy is not a passive process. In fact, it requires much participation on the part of the filer. While there isn't much variation in the amount of participation required for a Chapter 7 and Chapter 13 bankruptcy, there are some differences. There are, however, differences in the benefits produced by a Chapter 7 versus Chapter 13 bankruptcy....

Chapter 11 of the United States Bankruptcy Code is available to both businesses and individuals to reorganize their debts. However, it is primarily used by businesses and is available to all types of legal entities from corporations to sole proprietorships.

Businesses or its creditors can file for protection under this section of the code when the business is no longer able to service its debt. The benefit is that the debtor retains control of business operations as a debtor in possession.

While maintaining most of the features of other bankruptcy chapters, going this route gives the trustee the power to operate the business. Unless disqualified for cause, the debtor ordinarily acts as trustee while overseen by the court....

Just as no two people's financial situation is the same, no two bankruptcy cases are the same. In fact, filing for Chapter 7 or 13 can vary greatly between filer. Before deciding on which to file, there are a few considerations that go along with a Chapter 7 case.....