FREE Sample Court Records Search!
|
|
Want a FREE Sample Search From Our Top Rated Site?
|
|
|
|
|
|
|
* We will NEVER rent, trade or release your information to any third party for any reason - ever.
|
|
Bankruptcy
Records: Bankruptcy Types, Crimes, and Why You Should Avoid It
You will never be able to escape a bankruptcy
record, even if it happened years ago. Thus, it is prudent to always seek to
avoid getting it. Read on and find out why.
The US Bankruptcy Law was designed
to:
1. Give an
honest person who owes money a new start, so he or she can still live a decent
life
2. Give the
people or organizations the debtor owes money to a chance to get paid in an
orderly fashion
Bankruptcy records can be accessed online through
PACER.
Bankruptcy Records: Why to
Avoid Filing for Bankruptcy
If you're interested in filing
for bankruptcy, the best advice for you is to avoid it at all costs. Bankruptcy
is ABSOLUTELY the last resort and shouldn't be filed just because you want to
escape paying your debts.
Bankruptcy can wreak havoc on
your personal reputation and your financial future. It can seriously jeopardize
your career growth or, worse, ruin your chances of even finding a job!
There's also such as thing as
strategic bankruptcy, which even as it appears to be the best option, has often
backfired. Why? Because bankruptcy basically means that you're legally declaring
you're impaired to the point that you can't pay your debts!
If you're thinking that filing
for bankruptcy will protect your remaining assets, you may be wrong. US
Bankruptcy Law will see to it that your creditors get paid as far as you're
able. That means, your remaining assets may have to be liquidated and you'll be
forced to live on very little.
Bankruptcy
Records: Crimes Associated With Bankruptcy
If you try to hide any assets,
you'll be committing a crime and are likely to be prosecuted for bankruptcy
fraud. Under US Bankruptcy Law, the following constitute criminal acts:
-Concealing
assets
-Conflict of
interest
-Filing false
claims
-Fee-fixing
-Arrangements
for redistributing assets/properties
If you falsify a bankruptcy
form, you can be charged and convicted for perjury under US Bankruptcy Law.
Hint: US Bankruptcy Law
regarding fraud focuses on the motives and mental state of the filer and the
reasons behind particular actions.
Bankruptcy
Records: Types of Bankruptcy
The US Bankruptcy Law divides
into six chapters. Consumers who owe money usually file under Chapters 7 and 13.
Know which type you should file under. Filing under the wrong types of
bankruptcy leaves persons and businesses really worse off because it can cost a
whole lot more time and money.
Following are three of the most
common types.
1. Chapter 7
(Liquidation)
This is the most
popular type. Although this is often called Personal Bankruptcy, businesses can
use this chapter too. You can only file under this chapter every 6 years.
Straightforward bankruptcy filings take around 4 months. This is what happens:
-Most unsecured
debts are eliminated.
-Debtors are
prevented from further collection.
-Non-exempt
assets are liquidated.
-Non-exempt
property is turned over to trustee, who then liquidates it
2. Chapter 11
(Rehabilitation/Reorganization)
Usually for
businesses that want to reorganize, it's also applicable to individuals. This
type is rather complex and so requires an attorney. Most businesses that fall
into trouble will file under this chapter. What happens is the debtors:
-Continue with
the business
-Still keep
asset ownership
-Create
reorganization plans so the business can pay creditors
Note: The plan
must be finished within 120 days under a new law, unlike before when businesses
could take as much time as they pleased.
3. Chapter 13
(Debt Adjustment/Rehab for Persons With Regular Income)
This allows
debtors to hang onto their properties, which they could lose, like a house under
mortgage or a car. This is what happens:
-Debtors must
draw up a plan to pay off what they owe in 3 to 5 years.
-The plan must
be submitted for the approval of the bankruptcy court.
-The court
appoints a trustee to supervise repayments
Note: If the debtor isn't able
to follow the payment plan, the court may convert the bankruptcy to Chapter 7 –
in which case the debtor will begin to lose assets.
Other types of bankruptcy are:
Chapter 9 (Municipal
Bankruptcy)
Chapter 12 (Family Farmers,
Fishermen Rehab) - Like Chapter 13
Chapter 15 (Ancillary/Other
International Cases)
RecordsSiteReviews’ has everything you need to know about bankruptcy court
records and why it is crucial that you avoid them. Visit its
Court Records section. |
