Bankruptcy Questions Answered

Peter Gitundu asked:


There is a choice on what to keep when one has filed for bankruptcy in the United States. This is commonly referred to as the exemption scheme in which an individual chooses the items or assets they choose to keep. These range from clothes to homesteads. This is only applicable under the liquidation chapter and the debtor can choose the exemption scheme only when they have submitted a list of all the available assets together with an approximate value. Once this is done, through guidance, the debtor can choose what to keep or not.

Bankruptcy does not provide for the clearing of secured debts such as mortgages, alimony, child care or outstanding tax on a property. Under this law, reaffirmation is allowed. The debtor must reaffirm the asset in question only after he, under oath is questioned about his financial affairs in the presence of creditors and other involved parties.

Insolvency allows an individual, partnership or cooperation to file a petition under chapter 13. This is through making a payment plan towards the creditors within three to five years. Many of the people who file a petition under this law usually have those debts that chapter seven cannot wipe away. These could be mortgages on homes they would love to keep due to sentimental reason. They could also be child support and alimony or large amounts paid towards student loans.

In the case of bankruptcy, the debtor will require a stable amount of money after monthly expenses such as food, transport and other expenses have been deducted. Once the petition is filed together with a repayment plan, a trustee goes through it for flexibility and sends it to creditors to have it approved. If approved one can keep the assets.



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jac asked:


I need to file a chapter 7 bankruptcy, and looking for free information on the web about the laws and how one would file on their own without a lawyer. I have heard of normal people filing their own bankruptcy, but I don’t know where to begin. Search engines seem to lead nowhere and I’m just looking for some great public interest web sites.

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browneyedgirl asked:


I own a home with a mortgage and a car fully paid for. I get alimony and child support that barely cover the mortgage, condo fee, my health insurance premium, and utility bills. I have not been able to work because of illness. I have about $25K in credit card bills. Can I declare bankruptcy, and what would I lose if I declare bankruptcy?

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MISSVIRGO79 asked:


I live in CA and owe almost $5,000 in traffic tickets and fines. My license was suspended and I REALLY need it back. If I file bankruptcy will it clear the fines off so I can get my license back?
I was told the only thing not removed was student loans. Is that correct?

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Mz216 asked:


I work for a company that I believe will file bankruptcy soon. We are on a 4 year union contract. Dose the company legally have the right to renegotiate our wages before the contract is up?
Thanks John. What if the employees say no way to a cut in pay? Then what do they do?

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Sheila B asked:


I need to file for bankruptcy, to clear all my old debts, and those I can’t pay. How do I do this cheaply, and without a lawyer

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sx24 asked:


believe it or not, i just cannot find any job. I have hunted for job a lot but there is no luck. Now i’m being frustrated by creditors who call 40 times a day. So to get rid of such harassment, i decided to file bankruptcy protection.

What will be the consequence of filing bankruptcy?

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