The ABCs of Bankruptcy
The easy way out may not be that easy after all.
By Kurt J. Samson
There may be no success like failure, but try selling this
philosophical silver lining to the creditors breathing down your
neck. If you're thinking about pulling the plug on your
business without spending too much quality time on the lam, belly
up with the best Web Site resource for do-it-yourself bankruptcy
filing.
Some people behave as though bankruptcy's no big
deal—you take a hit and lose your credit rating for a while.
But don't be mistaken: Bankruptcy is both complex and risky.
For an in-depth look at bankruptcy in all of its many and varied
splendors, visit Legal Resources, a Web site operated by the Johnson
Lane Co. Everything and anything about bankruptcy is carefully
explained by an attorney.
"Credit-card companies have been lobbying Congress
relentlessly, and if they get their way, it'll become
substantially more difficult for individuals to wipe out their
debts through bankruptcy," explains Robert Afshar, president
of Legal Resources. "A substantial portion of the people who
now qualify to have their debt completely wiped out in a Chapter 7
bankruptcy will be forced to pay back all or a portion of their
debt over three to five years in a Chapter 13 bankruptcy."
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According to Afshar, visitors can learn when a Chapter 13
bankruptcy is a better choice than a Chapter 7; how to stop
foreclosures, wage garnishments, liens and seizures; how to
identify when there are better options than bankruptcy; and how to
know if they'll need an attorney. The site also includes:
- The three steps for determining what property you can keep when
you file for bankruptcy
- How to keep your car and your house even if you still owe money
on them
- How to keep your credit-card company from closing your
account
- What to expect after you file and how long the process
takes
- Questions the court-appointed trustee will most likely ask
you
- Things to do to help your case before you file
- How your "disposable" income is determined and why it
could cause dismissal of your case
This site explains what to do before and after you file for
bankruptcy. Of course, there is a catch: They want you to purchase
their do-it-yourself bankruptcy kit ($49.95). Nonetheless, the site
is exhaustive on the subject and has a wealth of information for
both the curious and the cash-strapped—and it's free.