Mind Box Magazine

Bankruptcy is a procedure that is designed to relieve debt to consumers who have fallen on hard financial times and cannot afford to pay their existing debts.

While there are many types of bankruptcy out there, the most commonplace are chapter 7 bankruptcies and chapter 13 bankruptcies of the bankruptcy code.

Chapter 7 is the most common for the individual. It is the complete erasing of qualifying debt. The debtor is then released from all repayment obligations. But chapter 7 bankruptcies are not to be taken lightly. (more…)

When individuals or businesses cannot meet with their financial obligations, many make the assumption that the only solution is bankruptcy. That is not always the case though.

If the right steps are taken from the beginning, you can keep yourself and your family out of financial trouble and away from bankruptcy.

First off, start by educating your children. Many of us growing up weren’t presented with the tools and knowledge to establish and maintain good credit and keep away from the scare of bankruptcy. (more…)

With the new law passed in 2005 in regards to the filing of chapter 7 bankruptcy, it became law that anyone filing must first get pre-bankruptcy debt counseling.

The debtor must get counseling and certification from a non-profit credit-counseling agency before the forms can be filed for your bankruptcy.

This usually entails one or more counseling sessions and when completed, certification so you can proceed with the bankruptcy filing. (more…)

People considering bankruptcy have many questions regarding how future credit will be affected. Some think that it will be 10 years before they can get credit again, or that they will never get a credit card after their bankruptcy.

Common questions debtors have are usually about keeping current credit cards, establishing new credit and buying a home.

If money is owed on a current credit card, then it must be listed in your bankruptcy forms as a debt. These forms are filed under penalty of perjury and if fraud is detected, your bankruptcy case can be discharged. (more…)