The Most Common Types of Bankruptcy

The best way to begin rebuilding your credit after bankruptcy is to obtain a secured credit card. You should do this only after you have been discharged for all of your debts. With a secured credit card, you make a deposit into a savings account that is used as a security for your credit card. Your credit limit will range from fifty to one hundred percent of your deposit. Some banks pay interest on your deposit and allow you to choose between a savings account, money market account, or a certificate of deposit.

The other key statistic was that insolvencies were apparently 55% higher than during the comparable period this time last year and the smart money (to spoil the metaphor) is on the figure topping the 100,000 mark for the year.

While it is usually the debtor who files for bankruptcy, there are the rare occasions when the creditor might do so. This is called involuntary bankruptcy and generally occurs when the creditor is owed a very large sum of money. Creditors have little comfort when trying to collect debts, and therefore are somewhat relieved when someone files for bankruptcy because, no matter how long it might take, they will get their money back.

Bankruptcy has many advantages that private debt management companies cannot provide. When a Chapter 7 or 13 bankruptcy case is filed, all telephone calls by debt collectors, pending lawsuits, garnishment of wages or bank accounts, mortgage foreclosures, IRS collections, or any action to collect a debt in a state court must cease immediately. A flagrant disregard of this prohibition by the creditor/collector is punishable by fine, attorney fees, or other action by the Bankruptcy Court. Additionally, at the time of filing, interest, late charges, and other collection fees on debt are stopped. Hence, the balance due on the account is the balance of the debt on the date of filing.

When bankruptcy lawyers in San Jose are approached for help with re-filing a bankruptcy case, the lawyer is able to do so without having to know who was in charge of the case before them. The lawyer is more concerned with wanting to help the person in need rather than having to worry about who was in charge of the case the first time. This is the freedom which these lawyers give their clients which is much needed in a time of financial crisis which has gripped the whole nation.

Banks can file motion to stop the automatic stay against home loans. If this occurs, debtors no longer have protection from the court. Additionally, if banks allow the automatic stay and debtors' later fail out of bankruptcy, lenders can commence with foreclosure at the point it stopped prior to the stay.

You need to submit a list of creditors and information about them in court, as it is one of the important documents to be submitted. Be certain that your list is filled out in full with accurate information of your debts to each creditor. If the information you supply is not complete they may require another fee to enter the additions.