What are the U.S. Bankruptcy law?
Answers: Far too many to list here. But this is the standard procedure
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
With limited exceptions, people who plan to profile for bankruptcy protection must get credit counseling from a government-approved outfit within 180 days before they folder. They also must complete a debtor education course to have their debts discharged.
The Department of Justice’s U.S. Trustee Program approves organization to provide the mandatory credit counseling and debtor education. Only the counselors and educators that appear on the U.S. Trustee Program’s list can advertise that they are, indeed, approved to provide the required counseling and debtor education. By regulation, the U.S. Trustee Program does not operate in Alabama and North Carolina; in these states, court official called Bankruptcy Administrators approve pre-bankruptcy credit counseling organizations and pre-discharge debtor childhood course providers.
Counseling and Education Requirements
As a rule, pre-bankruptcy credit counseling and pre-discharge debtor education may not be provided at the same time. Credit counseling must pinch place before you file for ruin; debtor education must take place after you report.
In general, you must file a licence of credit counseling completion when you file for bankruptcy, and evidence of completion of debtor rearing after you file for bankruptcy – but since your debts are discharged. Only credit counseling organizations and debtor education course providers that hold been approved by the U.S. Trustee Program may issue these certificates. To protect against fraud, the certificate are produced through a central automated system and are numbered.
A pre-bankruptcy counseling session with an approved credit counseling company should include an evaluation of your personal financial situation, a discussion of alternatives to bankruptcy, and a personal budget plan. A typical counseling session should last just about 60 to 90 minutes, and can take place in human being, on the phone, or online. The counseling organization is required to provide the counseling free of charge for those consumers who cannot afford to pay. If you cannot afford to wages a fee for credit counseling, you should request a fee waiver from the counseling enterprise before the session begins. Otherwise, you may be charged a duty for the counseling, which will generally be about $50, depending on where on earth you live, the types of services you receive, and other factors. The counseling organization is required to discuss any fees beside you before starting the counseling session.
Once you have completed the required counseling, you must get hold of a certificate as proof. Credit counseling organizations may not charge an extra levy for the certificate.
LEGAL DISCLAIMER: The advice contained herein is for informational purposes merely. It is not to be construed as Legal Counsel nor Legal Advice.
There are two main types. Chapter 11 which is a reorganization of a company in debt. Chapter 7 which is closing it down and selling sour it's assets.
Check the links below for completely accurate descriptions from the US Bankruptcy courts.
That's a broad subject. The bankruptcy laws enjoy changed since 2005. It is harder now to discharge debt. Prior to 2005 just roughly speaking anything could be discharged (except school loans and some other exceptions). Now what can be discharged and what types of bankruptcy can be file are a function mainly of your income. http://www.nolo.com/article.cfm/objectId... Chapter 13 is a payment plan to money back a portion or all of your debts. Chapter 11 is a business collapse. Ch 7 can usually wipe away all or most of your unsecured debts.
You should really consult an attorney to see which Chapter you qualify for. You will have to run through a credit counseling session before you file and one to discharge your debts. GreenPath Debt Solutions can propose both counseling sessions. Check out their website at www.greenpathbk.com.