Bankruptcy - Areas of Law

We're in a tough economy, and many of us are increasingly filing for consumer bankruptcy. But now consumer bankruptcy lacks those once negative connotations, and provides an opportunity to help you start anew with a clean financial slate. In many situations, it can even be your best and only option. Although finding yourself in an impossible financial condition is often difficult to accept, it means the time is now to call your consumer bankruptcy lawyer. Confront your situation, land on your feet, and move forward in the right direction towards a brighter future.

Types of Consumer Bankruptcy

Two types of bankruptcy are most commonly used amongst the numerous possibilities:

• Chapter 7 Bankruptcy - The most frequently used consumer filing, Chapter 7 permits the bankrupt individual to retain essential property. Property that is non-exempt is sold and proceeds dispensed to credits. However, in the majority of Chapter 7 cases, no assets exist.
  
  
• Chapter 13 Bankruptcy - An individual filing for Chapter 13 Bankruptcy can keep all or some of his/her assets, and is permitted to negotiate a schedule for repayments with future-generated income.

Bankruptcy is filed under District Courts in the US Bankruptcy Court. The general laws pertaining are federal laws, which stipulate the related procedures. Yet state laws determine the individual's property rights. Although few cases are involuntary when pressured by credits, most cases are voluntary.

Bankruptcy provides an opportunity to start over for consumers and businesses. Once you involve an attorney in your bankruptcy filing, your harassment and creditor calls will be stopped. However, an important drawback to consider with bankruptcy is that the action will be on your credit history for ten years. Shortly after bankruptcy, you may encounter credit offers, who should be used smartly, it at all.