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After declaring bankruptcy, some debtors may be interested in setting up a reaffirmation agreement if it is in their best interest. This is an agreement that would be set up between you and your creditors. It is a contractual agreement which states that you will pay back the money owed to the creditors despite the fact that you have filed for bankruptcy. Through this agreement, you will be able to keep your property and it will stay in your possession. After the payments are made, the creditors, for their part, will agree not to repossess your property or otherwise take it back.

This can be very advantageous for people who are filing for bankruptcy, but it is important to make sure that this decision would be best for you before you enter into such an agreement with your creditors. In order to accomplish this objective, it is highly recommended that you discuss the situation with a lawyer, not only to make sure that this agreement is in your best interest, but also that your rights are adequately protected in such a contract. If you are not able to get an attorney to represent you in your reaffirmation agreement, the contract will need to be approved by your bankruptcy judge. The judge will be in charge of asking you questions in order to determine whether or not the reaffirmation agreement will be undue stress on you and your beneficiaries.

A reaffirmation agreement is not discharged. Due to this, most judges will only sign off on such a contract when the item that is being discussed is imperative to your every day life. One such secured debt example would be a car that you use to get back and forth from work every day. These contracts are completely voluntary and individuals do not need to take part in them in order to file for bankruptcy.

When it comes to filing for bankruptcy, it is very common for individuals to include their credit cards in their filing. While this is great for individuals who are actually in need of financial assistance, some people actually decide to file for bankruptcy and then charge up a storm on their credit cards, intending for the card to be included in their filing. However, if they are caught in this scheme, they can be taken to court by the lender and found guilty of defrauding their lender(s) – that is, that the individual had no intention of paying back the lenders after or when they borrowed money.

In order to make sure that you are not accused of defrauding the credit card companies that you are involved with, it is best not to make any large purchases on your cards for ninety days prior to filing for bankruptcy. It may be tempting to go out and make an impulsive, expensive purchase the night before filing for bankruptcy, but you will almost always be caught and charged. Cash advances totaling more than $750 or luxury purchases over $500 in a ninety day time period before filing for bankruptcy are suspect.

As soon as you decide that you are going to file for bankruptcy, this is the time to stop using your credit cards. You will only be further compounding your debt. If you are involved in debt that you won’t be able to get out of, stop spending and stop using your credit card! If you have to use your card even after you have come to the decision to file for bankruptcy, you will HAVE to stop at the next logical point. After you go to a bankruptcy lawyer, do NOT use your credit card! If you are found to have used your credit card after going to see a bankruptcy lawyer this can get you in serious and substantial trouble. This is clear evidence that you were intending to defraud the credit card company.

A Creditors Meeting can go by many other names. It is also commonly referred to as a §341(a) Meeting, the First Meeting or a meeting of the creditors. The name is derived from the section of Title 11 in the United States Code. In this passage, requirements are set forth for the first meeting that needs to take place between creditors and equity security holders.

Debtors are required to attend these meetings and their case may be dismissed if they fail to show for all or part of the meeting. This means that if you are declaring bankruptcy, you need to attend this meeting. You will be required to submit to questioning and an examination under oath. This means that you will be sworn to tell the truth in response to the questions that you are asked during this meeting. Despite the fact that you are under oath, these meetings do not take place within the presence of a judge. Questions asked will span a variety of subjects including the acts, conduct, properties, financial situations, debts, liabilities and any other subject related to the administration of your estate and possessions. This will help to explain your situation to the Trustee in order to make the best decision with how to proceed with your filing.

The meeting will be conducted either by a United States Trustee (for bankruptcies under Chapters 7, 12 and 13) or by a representative of the Office of the United States Trustees (for bankruptcies filed under Chapter 11 where the debtor remains in possession of their property and there has been no United States Trustee immediately assigned to the case). Despite the fact that this meeting is intended to involve the creditors to which you owe money, they are not required to attend and they seldom do. In most instances, these meetings only take a few minutes and they are only longer when the individual overseeing the meeting is dissatisfied with the answers provided by the individual being investigated. By being honest and straightforward, you can more easily explain the situation to the Trustee who will be able to help you with your filing.

Bankruptcy can be a complicated process. Complications are often further exacerbated if you have a spouse. Here is a look at your options when it comes to bankruptcy and being married.

In marriage situations, when a person or couple needs to declare bankruptcy they have two main options. They can either both declare bankruptcy in a joint procedure or one person can declare bankruptcy without the other. It is also important that you research your individual state property laws in order to determine how a couple can handle this process with specific regard to their state, since these laws vary from state to state.

Community property states are very clear about their specifications for debt and spouses. If individuals are not filing jointly and only one person is filing, both halves of the property/debt become property of the estate. As such, the debt of both individuals is resolved even when only one person files for bankruptcy. In these states, there is no real need for both individuals to file for bankruptcy since they are considered to share the property and the accompanying debt. The majority of states do not qualify as community property states.

Other states have different laws. In these alternate states, it is important to note that if only one person files bankruptcy, the debt of their spouse is not resolved. In order for debt to be resolved in these states, both individuals need to be filing jointly. It is important to note that the debt in both individuals’ names will be resolved when only one declares bankruptcy. However, the spouse may not piggyback their exclusive debt on their partner’s bankruptcy case.

In order to determine the best bankruptcy option for you and your spouse, consider the type of state you are living in at the time of filing. You will also need to consider whether you have individual debt or joint debt. This reflection will often make the advantages and drawbacks very clear, allowing you to make the most educated decision in the matter.

For those not in the business of personal finances, all the different chapters of bankruptcy can seem confusing! To help, here are the various different chapters of bankruptcy within the United States and a helpful description in order to allow you to see the subtle nuances and differences between the chapters. These six chapters of bankruptcy are found at Title 11 of the United States Code, named as the Bankruptcy Code.

Chapter Seven: Chapter 7 Bankruptcy is available to individuals and businesses. This form of bankruptcy is a general liquidation of your assets. All of your non-exempt items are turned over to a bankruptcy trustee. The trustee liquidates all of your property and items, with the subsequent money being divided amongst your lenders. It does not include a plan for repayment. This is one of the most popular bankruptcy options for individuals and businesses.

Chapter Nine: Chapter 9 is a municipal bankruptcy. This bankruptcy is granted to municipalities to give them time to develop a plan and negotiate the pay back of their overdue debt.

Chapter Eleven: Chapter 11 bankruptcy is a reassessment and reorganization of debt. This is a very popular option for businesses. However, some individuals have been known to take advantage of this bankruptcy option. This is also known as a ‘reorganization’ bankruptcy.

Chapter Twelve: Chapter 12 bankruptcy is specific for certain professionals. This chapter is for the rehabilitation of debt exclusive to fishermen and farmers that need to declare bankruptcy. These individuals need to have a ‘regular’ annual income in order to qualify.

Chapter Thirteen: Chapter 13 bankruptcy is an available option for individuals that are fortunate enough to enjoy a regular income. These individuals are able to utilize the repayment plan set forth for them in this chapter. This is one of the most popular chapters of bankruptcy for individuals. This type of bankruptcy is also referred to as a wage earner’s plan.

Chapter Fifteen: Chapter 15 bankruptcy is available to international businesses as a form of debt elimination. It is also a viable option for ancillary cases. This newly created chapter is designed to deal with insolvency taking place in more than one country.