A bankruptcy discharge can be seen as a “new beginning” as it releases the debtor from any liability for certain kind of debts. This means that a debtor is not required to pay the debts that have been discharged by the bankruptcy court.
Bankruptcy due to credit card debt is known as credit card bankruptcy. Many Americans declare credit card bankruptcy but now with these strict laws, the filing of credit card bankruptcy has become more difficult.
When you file for any kind of bankruptcy you have to pay certain bankruptcy fees. There are different kinds of bankruptcy fees associated with the type of bankruptcy you are filing for such as bankruptcy filing fees, credit counseling fees, administrative fees, bankruptcy attorney fees, petition preparer’s fee.
All the assets, including property, that cannot be sold or seized to clear the debts of a debtor who has filed for bankruptcy forms the part of bankruptcy exemption.
A bankruptcy trustee is an individual who is in charge of the administration process of the bankruptcy. The trustee is generally appointed by the court and supervises the bankruptcy process. Acting as a negotiator between the creditor and the debtor, the trustee’s chief duty is to oversee that the interests of both the parties are maintained.
A bankruptcy petition is the application which a debtor submits in court to declare bankruptcy. Once the bankruptcy petition is approved by the court, then the proceedings to repay the debt officially starts. This document is very important as it not only starts the repayment proceedings, but also prevents any creditor to file a lawsuit against the person filing for bankruptcy.
Before taking out a student loan, it is important to know that no matter what, you do have to pay it back. There are some exceptions under chapter 7 bankruptcy and student loan can be discharged then but it is extremely rare. Under chapter 13 bankruptcy, student loans can be repaid by working out a repayment plan. But the best way, is to talk with your lender and come up with a solution beneficial to both the parties.
Creditors in bankruptcy do have certain rights which they should exercise. In order to receive your money, it is important to file your proof of claim as soon as you receive the notice from the court declaring the bankruptcy of your debtor.
Chapter 12 bankruptcy law is especially made considering the condition of the farmers and fishermen and gives them a chance to pay back their loans and the government has included many provisions to make filing for chapter 12 bankruptcy as convenient for the farmers and fishermen as possible.
The chapter 12 bankruptcy law came into practice in the late 80s as a means to provide relief to farmers and fishermen who generally felt a lot of obstacles as chapter 11 and chapter 13 of the code for bankruptcy are very complicated, expensive and provide little benefit.