Bankruptcy is a situation where your commitments are too much for you and you can not effort to pay them.The only option that can protect you from jail and mental agony is declaring bankruptcy.You can not take it like a solution for problem unless all other options are dried out.This is going to cost your financial life seriously and stay back on your credit report for at least ten years.The federal law supports it and give a protection.The main intention is to give a chance to challenging people an opportunity to take a step and get credit for new ventures.
The government actually encouraging people to take this daring steps and explore the good options available around you.If things goes seriously wrong,this law protects you from imprisonment.This is going to give a chance to every one to have their life even after failed and in other way give a good chance for improvement of economy of the country.You shall use it only for right reason and other wise it will be hunting you for the life time.Be cautious and careful.This is going to protect you from the hunt of creditors.
To apply for bankruptcy
To get qualified for filing bankruptcy you shall be able to prove that you can not effort to pay even a part of your bills.You shall also get counseling from a qualified non profit counseling agency.
For example you can counseling from
1• National Foundation for Credit Counseling (www.nfcc.org; 800-388-2227)
2• Association of Independent Consumer Credit Counseling Agencies (www.aiccca.org; 800-450-1794)
After applying for courts protection you shall complete a course in financial management before getting the actual approval for it.
You are not expected to spend high amounts before filing the application for a period of 90 days.
To file a second bankruptcy you shall wait for a minimum period of seven years.
How much of home ownership will be yours depends on the state that you are living.If you have bought it with in 40 months before applying for protection the maximum share you can get will be only worth of 1.25K.
All your disposable incomes and assets shall be included in the list to be shared with creditors as their share.
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