Welcome to Bankruptcy Reports — your comprehensive bankruptcy resource. Our mission is to give you the facts you need about bankruptcy — fast — so you can get on the road to financial recovery and peace of mind right away.The Bankruptcy Reports website provides a ton of information about bankruptcy. In addition, you will find extensive information on leading bankruptcy to help you on your way to safe and effective financial success. Please have a look at our bankruptcy articles, products, resources, and additional information located throughout Bankruptcy Reports. We strive to provide only quality articles, so if there is a specific topic related to bankruptcy that you would like us to cover, please contact us at any time. And again, thank you to those contributing daily to our bankruptcy website.Today's
Definition
Discharge: A release of a debtor from personal liability for certain dischargeable debts set forth in the Bankruptcy Code. (A discharge releases a debtor from personal liability for certain debts known as dischargeable debts and prevents the creditors owed those debts from taking any action against the debtor to collect the debts. The discharge also prohibits creditors from communicating with the debtor regarding the debt, including telephone calls, letters, and personal contact.) Today's Feature What You Must Know Before Filing For Bankruptcy By Jon Arnold Before you decide that filing for bankruptcy would be the easiest thing for you to do, you may want to do some additional thinking about this whole scenario.You must first consider Read more... BankruptcyBankruptcy is a process by which a debtor can obtain relief from his debts, through the courts. This relief may come in a variety of forms, including full or partial discharge of the debt, or the imposition of a payment program consistent with the debtor's financial means. Bankruptcy is a court process that allows an individual or business to get relief from their debts. The ultimate goal of bankruptcy is to give the individual or business a fresh financial start while being fair to creditors. Bankruptcy may be able to cancel the debt, or it may give the opportunity to stop the repossession. However, bankruptcy should be used in only the most serious circumstances since it can affect your credit for up to ten years. Bankruptcy is not something done on a whim but should be considered as an option of last resort, to be used only after you have exhausted all other viable options. Be aware that there are some kinds of debt that bankruptcy will not discharge. The Types Of Personal BankruptcyBankruptcy is a code-based practice that relies on the bankruptcy code, which is a set of rules that are loosely drawn to determine the arena in which creditors and debtors can determine how they are going to proceed to resolve a person’s financial situation. Chapter 13Chapter 13, also referred to as a "wage-earner" or "debt-adjustment" plan, is available to individuals and unincorporated businesses that intend to use future income to pay some or all of one's debts according to a plan designed by the individual (within certain statutory limitations) to meet his or her needs Chapter 13 is a court approved repayment plan. Basically, you repay a portion of your debt over a period of time and at the end of that period, the rest of the debt is wiped out. Chapter 13 is available to some debtors for whom Chapter 7 may not be appropriate because, for example, they stand to lose a house, or they owe taxes or money on debts that cannot be discharged in Chapter 7. In general the person who has a regular monthly income can file this form of personal bankruptcy. Chapter 7Chapter 7 is chosen by about 70 percent of all individuals and half of all businesses filing for bankruptcy are designed for debtors who do not have the ability to pay their existing debts. Under Chapter 7, a trustee takes legal possession of all of your property in order to liquidate and divvy up the assets. Chapter 7 is a relatively quick process in which the debtor's assets are liquidated (with some exemptions) and the proceeds distributed to creditors pro-rata. The debtor emerges with most, but not all, unsecured debts discharged (except taxes, student loans, and marital and child support obligations) and either surrenders the collateral for a secured debt (a house, a car) or arranges to continue to make current payments. Chapter 7 is generally the most complete form of personal bankruptcy Filing bankruptcy can be an enormous relief if you’ve been struggling with debt and worrying about money, and rightfully so: bankruptcy can be the first step you take toward financial health and stability. 
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