The best representation of what debt settlement has to offer was recently released in a study on the debt relief option out of Southern Methodist University. In the words of the team which conducted the study, debt settlements "…create the greatest consumer welfare of any approach."
Since a large number of bankruptcy filings are due to irresponsible personal finance management, the counseling course is designed to help people recognize and change their spending behaviors. This also helps to deter future bankruptcy filings because statistics show that many people who file bankruptcy will do it again in the future.
Under a Chapter 7 bankruptcy, your future income is mostly excluded. If you inherit property within 180 days of filing for bankruptcy, this property may be included in your bankruptcy estate. However, this isn't true for normal income or bonuses that you earn from working at your regular job. You should probably talk to your attorney if you expect any other special income shortly after the bankruptcy to find out whether it needs to be included or not.
It means that if a debtor records for bankruptcy in 2010, he / she must not claim back taxation debts from beyond 2006 which the tax statements must have been filed at the least in 2008. Another condition advises that the taxation will need to have been discussed at least 240 days earlier than filing bankruptcy. Your tax return also must not be falsified. In the event the debtor employed an incorrect SSN upon his/her tax, the income tax debt will never be eligible for discharge. Lastly, the taxpayer should not be accountable for tax evasion, meaning the individual mustn't be liable for any deliberate performances of evading tax regulations.
If you have gotten a notice of foreclosure on your home, a Chapter 7 bankruptcy can help you put off the bankruptcy process going forward. If you want to keep your home and must file for Chapter 7 bankruptcy, then you need to make up your back payments and pay them in full going forward. However, if you file for Chapter 13 bankruptcy, you can reorganize your mortgage back payments into your reorganized bankruptcy payment plan. As long as you can make your mortgage payments going forward, your late payments will be taken care of in your repayment plan.
Specifically Chapter 13 bankruptcy allows the person filing to work-out a repayment plan that extends over a 36 to 60 month period. The amount of the repayment is based on the income of the "petitioner" and can substantially eliminate certain debt. But this debt is only non-exempt items which are not fully collateralized by an asset, such as an auto or a home.
A database of bankrupt companies and individuals is kept, known as bankruptcy leads. These contain a variety of information on those who have gone bankrupt, including names. Bankruptcy claims are made through the legal system, and filed by the courts and public records. For companies who make their money by managing credit it is possible to retrieve data from these bankruptcy leads for use in advertising. As well as the name of the individual or company, the leads also contain the address, dates, and other data on the exact amount of debt and income as well as the results of the claim. Debt consolidation companies, and others who offer similar services, seek out those who have failed to make successful bankruptcy claims and so need financial aid in paying off their debts.