Personal Bankruptcy

Personal Bankruptcy is a legal process that allows you to temporarily or permanently prolong paying some or all of your personal debts.

The current bankruptcy code was enacted in 1978, and was recently amended it in the spring of 2005. The goal of the legislation is to provide relief and structure to those of us who have gotten ourselves so far into debt that we can't possibly make our payments.

Personal bankruptcy is designed to be a last-ditch financial solution. It places a legal barrier between you and your creditors. The United States Constitution guarantees its citizens the right to debt relief through bankruptcy, providing a fresh start and (with careful budgeting and wise spending, a second chance at financial success.

Personal bankruptcy is an option that permits individuals to discharge their debts and generally extends a minimum of nine months. In order to obtain a discharge at the end of nine months, several requirements must be met.

Personal bankruptcy generally is considered the debt management option of last resort because the results are long-lasting and far reaching.

Personal bankruptcy typically does not eliminate child support, alimony, fines, taxes, and student loan obligations. Also, unless you have an acceptable plan to catch up on your debt under Chapter 13, bankruptcy usually does not allow you to keep your property when your creditor has an unpaid mortgage or lien on it.

There are many helpful books available on the subject to help you decide whether filing for bankruptcy is the right choice for you and (if it is) which type of bankruptcy suits your personal situation. Written by seasoned experts on bankruptcy law, these simple guides will walk you through the bankruptcy process and explain how to reestablish your credit afterwards.

Credit assistance programs may also be able to help you. You've probably seen ads on television or in your yellow pages for debt or credit counseling.

For more information on your personal bankruptcy options, feel free to browse our article section.