Paying Paul: Useful Information Before File for Bankcruptcy

Thursday, March 12, 2009

Many debtors have a fear of bankruptcy and they are trying to avoid it. They thought that bankruptcy is the last way that can be applied when no other method can be done to resolve the debt problem, so they will only use it when there is no other way. But if unfortunately you are really have to file for bankruptcy, you can get some useful information about debt assistance in www.payingpaul.com.

Payingpaul.com provide a lot of knowledge about the debt assistance.
First, before doing anything, you need to know the reasons why you choose to file for bankruptcy. Beside that, you also need to understand about the requirements that must be noticed when filing bankruptcy (e.g. you are not eligible to apply any credit card debt that included the purchase of luxury goods that were made within 90 days of filing). And now you can select what alternative of filing you want to choose, whether it is debt settlement or credit counseling ( for more information visit http://www.payingpaul.com/filing-bankruptcy.php).

There are two effective ways that debtors can take to request for bankruptcy, that is through Chapter 7 and Chapter 13 Personal Bankruptcy. To submit through chapter 7 bankruptcy, the debtors must first determine their average income over the 6 months before the date of filing. This average income will be used to determine whether debtors are eligible for Chapter 7 or not. Beside that, usually the type of debts that can be eliminated through Chapter 7 are credit cards, medical bills, collection accounts, and so forth (http://www.payingpaul.com/chapter-7-bankruptcy.php provides more information about this chapter). The process of filing Chapter 7 is also quite easy, that the debtors are only need to attend the meeting with the creditors.

Unlike Chapter 7, the debtors who applied through Chapter 13 bankruptcy are allowed to reorganize their debts, or they can pay some or all of their debt within 3 or 5 years. Most people prefer to filing through Chapter 7 more than through Chapter 13 (because through Chapter 7, the debtors could eliminate all of their debts), but more people are being forced to choose Chapter 13 instead of Chapter 7 since the new bankruptcy law changed in 2005. You can get the other comparison between the Chapter 13 with Debt Consolidation Loan, Debt Settlement & Negotiation, and Credit Counseling in http://www.payingpaul.com/chapter-13-bankruptcy.php

2005 New law made by the Congress has caused difficulties for consumers to file for chapter 7 and 13. The new rules said that debtors must pass the "means test" to file Chapter 7 bankruptcy if their income are more than the median income of their state. The new regulations also make Chapter 13 Personal Bankruptcy become less attractive where the new regulations require the debtors to determine their payment by
reducing "allowed expense" based on local averages from their income. Beside that, debtors who filing through Chapter 13 must pay their debts based on their average income of the past 6 months. (http://www.payingpaul.com/new-bankruptcy-laws.php can help you to understand more about this new regulations).

Payingpaul.com is a great site that provides important information about how to report a failure. This site makes all things related to the law become easier to learn. If you're new about bankruptcy filing and want to learn more, you can get useful information about that in http://www.payingpaul.com/bankruptcy.php