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Bankruptcy And Attorneys – Part 1 (Page 1 of 2)
Bankruptcy attorneys
Amongst bankruptcies, debtors usually opt for Chapter 7 and Chapter 13 bankruptcies, since they provide the maximum benefits. Bankruptcy is a process, which involves litigation and lawyers and courts. The process can be trying, and it is important to expedite the legal option to avail the maximum benefit. That is where the problem comes in. Individuals do not have enough experience or the expertise to conduct the process on own. Special help is needed. So debtors hire specialists who have the background, and the expertise to deal with bankruptcy courts. Individuals who can represent the respondents and avail a favorable result. Bankruptcy attorneys are such experts. Bankruptcy lawyers help to get debt relief, and provide valuable information, services, as well as advice to help the debtor find beneficial financial options. The part one of this article provides some general information pertaining to bankruptcy and bankruptcy lawyer.
Bankruptcy
The bankruptcy process can be briefly described as a special legal proceeding in which an exclusive court undertakes, and administers the fixed, as well as movable assets of a debtor for the benefit of the creditors. Typically a debtor, or any person or business, who is indebted and owes money to others, can choose to file for bankruptcy proceedings, so as to solve a financial situation involving a debt condition which is out of control, or alternately to prevent recovery of debts for a certain period of time, during which the individual or the business can make arrangements to repay the debt.
Bankruptcy legalities
The United States Constitution provides powers to the Congress to draft and execute laws and acts related to bankruptcy and bankruptcy related issues as per Section 8 of Article 1. Based upon this empowerment, the Congress passed the “Bankruptcy Code” in the year 1978. The act or the code has been amended several times over the decades, as per the changes taking place in the financial market, and the redemption capacity of the debtors. The actual procedure is governed by the body known as the Federal Rules of Bankruptcy Procedure. The body has set up special courts to deal with bankruptcy issues, as well as litigations. The courts are popularly known as bankruptcy courts. These courts operate depending upon their jurisdictions. The Federal body has set up official proceedings and working guidelines for these courts. There are rules dealing with various aspects of bankruptcy. The rules are specially created so the litigations can be carried out in an effective manner between individuals and business concerns. From the functioning point of view, bankruptcy courts are appointed for each judicial district within the state. And litigations, as well as legal procedures are carried out with the litigants based upon the particular area or location of the registered business. All decision relating to the legal proceedings are taken by the judge, and he or she has several officers to aid the legal work. The majority of the bankruptcy litigations are administrative in nature, and are often conducted outside the court premises. In case of special chapters and issues such as Chapter 7, Chapter 11, Chapter 12, and Chapter 13, the administrative procedures are handled by a trustee appointed by the court to overlook the particular case.
Tips on How to Rebuild Credit after Bankruptcy
Many consumers today are very conscious about their credit scores. This is because they know that their respective credit ratings directly determine the terms and rates of interest that will be imposed on the financing deals that they might be taking in the future.
These consumers are also well aware of the fact that a bad credit report can significantly reduce their chances of being granted low interest credit programs. They know that having bad credit marks such as tax liens, foreclosure, court judgments and of course bankruptcy can cause lenders to shy away from extending them the financing deals they need.
Let us consider the effect of bankruptcy. A bankruptcy record is usually retained on your credit file for a period of seven to ten years. This means that you will have a very difficult time searching for lenders, willing to provide you credit lines, for a very long time. You will have to wait for a minimum of seven years before your bad credit report will be dropped and before you can receive again offers for low interest credit accounts.
Still, this does not mean that you have to wait that long before you start repairing your credit history. It is possible to gradually rebuild your credit reputation even after your debts have been discharged under bankruptcy. But how can you do this? You will find the answer to this question in the succeeding paragraphs of this article.
Three Tips on Rebuilding Credit History After Bankruptcy
Even if you cannot eliminate bankruptcy from your credit records, you can do things that will help improve your credit score. Below, we have listed three tips that you can employ to do so.
1. Regularly check your credit report. Always obtain a copy of your credit file from the three credit reporting agencies -Experian, Equifax and TransUnion. You can do this by ordering your free annual credit report from Annualcreditreport.com.
Once you have received your credit report, you must carefully check the entries reflected on it. Scrutinize your personal information, as well as your existing credit accounts. In case you find an error or misprint, immediately file a dispute letter with any of the three credit reporting firms. This way, you can prompt them to investigate your credit records and verify your claim. Should they find your claim valid, they will issue you an updated and more reliable credit file.
2. Seek professional assistance. There are many non-profit organizations that provide free credit repair services. By enrolling in these programs you can certainly learn effective tips that you can use to gradually regain your credit reputation. Not only that. Credit repair guides also provide advice on how you can manage your finances as well as your credit accounts responsibly. This way, they can assist you to avoid falling into new debt traps and encountering bigger financial problems in the future.
3. Make a conscious effort to avoid debts. The two tips we have listed above will not work unless you resolve to change your spending habits. So, we encourage you to avoid incurring new debts. Apply the money-management tips that you have learned from your free credit repair sessions. This way, you can succeed in regaining your credit worthiness and in recovering your financial health.
Follow these three tips and for sure you can successfully rebuild credit even after you have filed for bankruptcy.