| Bankruptcy law is the governing laws that say what | | | | either file Chapter 7 or Chapter 13. In any case it is |
| happens in the bankruptcy process, who can file | | | | important to understand the difference. You also |
| what type of bankruptcy and every other detail | | | | have to make sure that you qualify for the chosen |
| involved in filing bankruptcy. It is important that you | | | | type under the new laws. |
| are serious when filing bankruptcy and that you | | | | Alternatives - Nobody really wants a bankruptcy filed. |
| make sure your completely understand the process. | | | | It will ruin your credit and possible cause you to lose |
| An Establishment of Bankruptcy Law | | | | assets. Creditors lose money and the government |
| The United Bankruptcy Code is the law that | | | | racks up costs during the process, too. In the end |
| regulates and establishes bankruptcy. This is a federal | | | | everyone benefits more from an alternative to |
| law and bankruptcy is held in federal bankruptcy | | | | bankruptcy. Many times during the process |
| courts. Federal bankruptcy judges hear bankruptcy | | | | alternatives are explored to see if they would make |
| cases. | | | | more sense then filing bankruptcy. |
| States get involved on some level with the process. | | | | The New Bankruptcy Laws |
| Each state has one or more bankruptcy courts to | | | | New laws were designed to help reduce the number |
| hear resident cases. Additionally, exemptions are | | | | of bankruptcies being filed and to help prevent abuse |
| established under federal law, but states also have | | | | of the system. These new laws made several |
| exemptions that can be chosen instead of the | | | | changes. |
| federal exemptions. | | | | One of the best known changes is the new |
| Variations of Bankruptcy Law | | | | requirement of credit counseling. This is done two |
| There are many variances in the bankruptcy laws | | | | times during the process. The first time is to help a |
| that can be confusing. Here are some top things you | | | | person make sure they should file bankruptcy and |
| should know about: | | | | that an alternative is not a better solution. The |
| Exemptions - Exemptions are assets that are | | | | second session helps the person to be a better |
| protected. You will have a federal list and a state list. | | | | consumer and learn about being responsible with |
| You have to choose one or the other. The idea is to | | | | credit. |
| go with the one that protects the most of your | | | | Another major change is the limitation on who can |
| assets. | | | | file Chapter 7. This limitation makes a Chapter 7 |
| Different types of bankruptcy - There are many | | | | based on income. Those making too much have to |
| different types of bankruptcy. Individuals usually | | | | file a Chapter 13. |