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The Serious Business of Bankruptcy
from:The United States government provides a means for people who have too much debt to obtain a new start by eliminating the heavy debt burden. A bankruptcy is not intended to be an easy way to eliminate debt. It is meant to be a way to once again live a normal life without the stress of unsolvable financial problems. When you have too much debt and little hope of being able to reduce the debt without help, filing bankruptcy may be the best alternative.
People can find themselves saddled with heavy debt for a million different reasons. Common reasons for finding yourself with spiraling debt are having too many credit cards with high interest rates, loss of employment, major hospital bills and living beyond your means. Having to file bankruptcy doesn’t mean you are financially irresponsible. It only means that circumstances have led to unmanageable debt.
It can be thoroughly miserable to be drowning in debt. You learn to fear getting the mail out of the mailbox because of the constant bills. The collection calls are stressful and constant. No matter how much you pay on high interest credit cards the interest keeps the balance growing. Your credit gets ruined, and there seems to be no hope.
The purpose of filing bankruptcy is to start over again by eliminating or reducing the debt you owe. The primary purpose is to give you a chance to begin again with a clean slate. It is impossible to live a normal life when debt is uncontrollable. The one thing bankruptcy is not intended to do though is help you evade debt you are capable of paying.
Because bankruptcy is not intended to avoid paying debt you can afford, certain monies and properties will be distributed to creditors according to a method determined fair by the United States Bankruptcy Court. The court will determine what assets you can keep and which must be sold for debt settlement. You may also have to pay some of your debt with money on hand if you have more than a designated amount.
There are several types of bankruptcies called chapters. The chapters are intended to address the fact that there are certain circumstances which vary enough to justify different treatments. Most individuals file chapter 7 or chapter 13 bankruptcies.
The chapter 7 bankruptcy is called a “straight bankruptcy” in which all debt is written off that cannot be settled with asset sales. The chapter 13 bankruptcy reorganizes your debt payments into an affordable repayment plan. In both cases the creditor calls are stopped, and you can begin to live a normal life again. In fact, once you notify the court you are asking for bankruptcy protection, all of the stressful collection efforts stop. These include lawsuits, foreclosures, evictions, debt collectors and even repossessions. You get almost immediate relief.
There are other bankruptcy chapters including chapter 11 for corporations and chapter 12 for farmers. These chapters are specifically used to eliminate particular types of debt such as non-consumer debt and farm related debt.
Filing bankruptcy is serious business, and it is also complicated. So you should always consult an attorney specializing in bankruptcies.
Bankruptcy Mortgage Loan News
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As Predicted, Ally Bankruptcy Will Delay Loan Modifications, Settlement ... Firedoglake When Ally Financial's mortgage unit Residential Capital filed for bankruptcy last week, I had an inkling it would spell trouble for the foreclosure fraud settlement the parent company signed with state and federal regulators. How would individuals get ... Bank's no Ally for NY homeowners Elliott Burned On ResCap Bonds, Ally Stock TEXT-Fitch puts Banco GMAC SA on negative watch |
Mortgage and Securitization Fraud: Where Is the Task Force? - Huffington Post (blog)
Mortgage and Securitization Fraud: Where Is the Task Force? Huffington Post (blog) They told members of Congress that the banks were drowning in bad debt and without a massive bailout they would soon be forced into bankruptcy. Congress quickly coughed up the money in the form of $700 billion in TARP loans. |
Five proposals to solve $1 trillion college loan crisis - USA TODAY
 USA TODAY | Five proposals to solve $1 trillion college loan crisis USA TODAY But this "fresh start" isn't an option for most borrowers with student loans. In 1998, Congress enacted legislation that prohibits borrowers from discharging federal student loans in bankruptcy unless they could prove "undue hardship. Best-Kept Secrets Of Student Loan Borrowing The case for student loans |
Ally's mortgage unit files for bankruptcy - CNNMoney
 USA TODAY | Ally's mortgage unit files for bankruptcy CNNMoney The company said that it expects GMAC to continue to make and service mortgage loans while the bankruptcy process is completed. The portfolio of home loans it holds, now valued at less than half its original value, will be auctioned off as part of the ... Former subprime lender ResCap files for Ch. 11 Former GMAC puts mortgage unit in bankruptcy Ally to Sell Non-U.S. Units as ResCap Mortgage Goes Bankrupt |
Ally to Sell Non-US Units as ResCap Goes Bankrupt - BusinessWeek
 Bloomberg | Ally to Sell Non-US Units as ResCap Goes Bankrupt BusinessWeek By Dakin Campbell on May 14, 2012 Ally Financial Inc. (ALLY) (ALLY), the auto lender whose mortgage unit went bankrupt, may sell international car- finance and insurance operations to help repay a $17.2 billion US bailout, Chief Executive Officer ... Ally to Sell Non-U.S. Units as ResCap Goes Bankrupt Ally hopes to end mortgage woes with ResCap bankruptcy Ally Fincl: ResCap Mortgage Subsidiaries File Chapter 11 |