Bankruptcy law is constantly evolving although most of its rules and regulations are mostly not impacted by this continual stream of changes. Did you know that many states actually have their own specific bankruptcy laws in place? These laws help to decipher the methods people file for bankruptcy, but if this conflicts with the federal law then federal law takes priority. What this means to you is that you will not have any advantage if you file for bankruptcy in another state than the state in which you normally reside. In fact, most states do not allow you to file in a state other than the one you reside in.
Let’s take a close look at the current bankruptcy laws. The law consists of three main areas within which business and consumers are grouped. The Chapter 13 bankruptcy law is relevant to individuals with restricted financial ability with which to settle their current debts and it would take them between three and five years to settle these debts.
Chapter 7 is a more extreme bankruptcy law. Under this law, the consumer needs to clear debts that would not be possible to pay off otherwise. This is much more serious than Chapter 13 since the process requires the individual’s assets to be liquidated in order to settle the existing financial obligations.
Nevertheless, the current bankruptcy laws require, despite the various Chapters you can apply to file for bankruptcy, that a number of financial obligations must be met and can’t be discharged when you file for bankruptcy. If your financial obligations fall under this category then you would get small benefit by filing for bankruptcy since the current laws are going to make bankruptcy less of a viable option in assisting you with your debts.
You should also look at the types of debt that you have, since there are certain types of debt that cannot be discharged through any chapter.
Still, it’s a good idea to explore as much as you can on the variations of the current bankruptcy law so that you can learn how to put these laws to good use and to your advantage. However, this is oftentimes harder than it appears and the majority of individuals who file for bankruptcy will find the research a long row to hoe.
Therefore, it probably makes a lot more sense to seek the aid of a professional who is experienced and qualified in the area of bankruptcy law. This would normally be in the form of a bankruptcy attorney who specializes in this area and who will help you in plotting the best course of action to suit your situation.
The fact is that filing for bankruptcy is a very drastic decision and it should only be considered after you have looked at all other options for paying or clearing your existing financial obligations.
You may also want to consider using financial assistance from debt consolidation companies or receiving counseling from a debt specialist than automatically deciding on bankruptcy. If these alternatives have been researched to no avail then you must hand over the reins to somebody who understands the complexities and consequences of filing for bankruptcy and the laws that govern the process.