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Bankruptcy Basics

Understanding Bankruptcy Basics

The Need to File Bankruptcy

Bankruptcy is all around us. You're not alone. Americans file bankruptcy in record numbers. Some file chapter 7 bankruptcy and some file chapter 13 bankruptcy. Maybe you know of a family member or friend who has filed bankruptcy or has a need to file bankruptcy. It is anticipated that more than 1,000,000 (million) people will file bankruptcy in the next 12 months.

So what are bankruptcy basics? Bankruptcy basics will teach you that filing bankruptcy is a tool to be used when needed --- used by people to obtain a “fresh start” in life and to protect themselves from the claws of creditors. Filing bankruptcy is the ultimate act of taking personal financial responsibility---of squarely facing one’s financial obligations and eliminating those obligations.

People who file chapter 7 bankruptcy or file chapter 13 bankruptcy are typically in a financial crisis and suffering from severe financial problems, including a mountain of credit card debt, mortgage foreclosure, sheriff sale, eviction, car repo or truck repossession, garnishments, lawsuits, embarrassing or harassing phone calls, etc. These financial problems are usually the result of critical personal problems like divorce, unpaid alimony, job loss, medical problems, alcohol or gambling addictions, or other family related issues.

Understanding the information provided in bankruptcy basics will show you how filing bankruptcy can be the solution! Bankruptcy basics will help you understand that filing bankruptcy is the tool to be used to get rid of credit card debt, save your home, stop repossession, stop repo, stop garnishment, and gives people a "fresh start" in life.

You’re not alone in your financial crisis. Financial problems are not new. The need to file bankruptcy is not new. Filing bankruptcy is a timeless solution that even existed during the time of America’s founding in 1776. In fact the founding fathers knew the need to file bankruptcy and added bankruptcy protection to the United States Constitution. Article I, Section 8 states that Congress has the power to establish uniform laws on bankruptcy. Congress has exercised that power and has enacted the U.S. Bankruptcy Code and a committee has promulgated the Bankruptcy Rules to implement the Bankruptcy Code.

There are scores of books and volumes of treatises in law libraries across America attempting to interpret Congress’ intent. Lawyers spend entire careers attempting to utilize the bankruptcy laws to help clients obtain a "fresh start" in life … debt free and worry free. Click Find a Bankruptcy Lawyer to find a lawyer near you. Bankruptcy basics offers basic bankruptcy information to help you understand your rights and options.

What You Can Learn From Bankruptcy Basics

Over the past decades Americans have increasingly relied upon financing to achieve the American Dream. For some, that dream included a home, a car or truck, children, vacations, restaurants, clothing, church, etc. But some American’s were fooled into believing that they would never suffer a financial crisis that they couldn’t refinance themselves into safety. A crisis only happened to other people. Bombarded by marketing and advertising, many American’s simply spent too much and saved too little ---believing they would never suffer the catastrophic problems: job loss, divorce, illness, or injury.

But, many of these unfortunately Americans have fallen on hard times during the current economic cycle. Unemployment has increased, foreclosures have increased, credit debt has increased, lawsuits have increased, vehicle repossessions have increased, and evictions have increase. Not surprisingly Americans have been correctly turning to filing bankruptcy as a constitutionally protected right to eliminate debts and gain a "fresh start" in life.

Conventional wisdom among bankruptcy scholars including the following findings:

  1. Job loss, divorce, illness and injury appear to be one of the root causes of many bankruptcies.
  2. Overwhelming credit card debt appears to be involved in a large number of bankruptcies.
  3. Mortgage foreclosures are another root cause of many bankruptcies.
  4. The proportion of bankruptcy filers who are women filing bankruptcy alone has increased.
  5. Bankruptcy filers come from a wide cross-section of occupational distribution: blue-collar, white-collar, and service occupations.
  6. Despite their occupational status, bankruptcy filers are reporting incomes, on average, well below the national average. These low earnings often result from a period of income interruption.
  7. Most bankruptcy filers are carrying debt loads that are two to three times the size of their incomes--- in some cases, even larger. Many of these debts are unsecured, short-term liabilities like credit card debts and personal loans.
  8. Bankruptcy filers typically eliminate their debts and receive a "fresh start" in life debt-free.

Finally, bankruptcy basics is designed to give you free bankruptcy information about bankruptcy laws and procedure. Bankruptcy basics will teach you how skilled bankruptcy attorneys can help you obtain the bankruptcy relief you need. Plus, the most important relief, a bankruptcy "discharge" will be explained. Next, the bankruptcy process will be analyzed so you will better understand step-by-step the bankruptcy process. The various bankruptcy chapters will be explained. The two most commonly used bankruptcy tools are filing chapter 7 bankruptcy and filing chapter 13 bankruptcy. On one hand, filing chapter 7 is designed to eliminate debts and stop creditors from collecting against you. On the other hand, filing chapter 13 is utilized to create a repayment plan to block creditors from foreclosing on your home or suing you. As you peruse bankruptcy basics, please remember that filnig bankruptcy is a tool to help you eliminate debts, save your home, stop foreclosure, stop garnishment, stop lawsuits, and get a fresh start in life. A bankruptcy attorney is here to help you by simply clicking Find a Bankruptcy Attorney .

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