Debt Elimination
Sponsors
Overview

How Does Debt Settlement Work

How Does Debt Consolidation Affect Your Credit


Debt Consolidation

How Does Debt Consolidation Work

Why Do People Choose Debt Consolidation Loan

Example Of How Debt Consolidation Companies Work

What Is The Best Debt Consolidation Program


Reducing Debt

How To Budget And Get Out Of Debt

Fast Way To Reduce Debt

Get Out Of Debt Without Going Banckrupt

Get Out Of Debt Without Hurting Credit


Student Debt

How To Eliminate Student Loan Debt

Student Debt Consolidation Service


Grants & Support

Government Grants For Debt Consolidation

 

Loans

Low Interest Debt Consolidation Loan

Debt Consolidation For Payday Loans

 



Warning: file_get_contents(http://gdata.youtube.com/feeds/api/videos?q=chapter+1+and+7+debt+consolidation%7C&orderby=relevance&start-index=1&max-results=20&v=2): failed to open stream: HTTP request failed! HTTP/1.0 410 Gone in /home/mydebte/public_html/YouTubeVideos.php on line 135

Warning: extract() expects parameter 1 to be array, null given in /home/mydebte/public_html/YouTubeVideos.php on line 73
 

 

What are Chapter 1 and Chapter 7: Coverage of Debt Consolidation

    1. How to qualify for consolidated debt relief
    2. It is possible to have debt exemption

In the United States, there are two main laws relating to the debt relief under the condition of bankruptcy of individuals and companies as such: Chapter 1 and Chapter 7. The core concept of both laws is that an individual or a company (this article would mostly concentrate on the individual filings) can file for a certain fraction of debt relief mostly related to the exempt property, when he or she cannot repay his/her outstanding debts including the interest payments and, as a result, files for official bankruptcy.

Under Chapter 7 the individual is assigned with the Trustee, who manages the liquidation of individual’s assets to repay unsecured debts to creditors. The amount of property related assets that can be exempt from liquidation varies from state to state. At the same time there are a number of unsecured debts that can also be exempt from liquidation, for instance, student loans and child support.

However, if you have consolidated debt secured against your property, it is very likely that it would not be except under Chapter 7, mainly due to the initial terms and conditions of the consolidated loan, that state that your property is used as a collateral for consolidated debt and would be subject to repossession should you run into difficulties of repaying the principal and monthly payments. If you would like to read the specifics of Chapter 7 and figure out whether you can file for any exemptions specific to your situation refer to Federal Judiciary website of the United States, which contains lots of useful information.

Chapter 1 under United States legislation represents the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) which came into force in 2005. The main purpose of Chapter 1 is to reduce the abuse of the legislation such as Chapter 7. In other words, when Chapter 7 came into force, many people with extensive indebtedness would use it in order to intentionally receive debt relief and abuse the law. Chapter 1 makes it more complicated for the individuals to abuse privileges under Chapter 7.

Now it is in general much more difficult for an individual to proclaim him/herself bankrupt. Prior to Chapter 1 it was much easier to have most of the debts to be discharged including some property debts. However, after 2005 an individual must pass means test, which would be used by court when making the decision of how much debts need to be repaid. Meant test considers individual’s daily expenses such as living expenses, insurance expenses (health insurance, disability insurance and other), contribution to the care of family members, educational expenses and some other expenses that are crucial for daily existence as a part of American society.

If you would like to know more about Chapter 1 and Chapter 7 and to apply to your specific case, it is advisable not only to search for the information yourself, but also to seek professional help of debt counsellors, who can provide you with free initial advice and explain you the main concepts of each Chapter. It is quite complicated for the person not familiar with legal terminology and without financial background to clearly understand each of the clauses.

 

  1. References:
    1. http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter7.html
    2. http://www.articlecat.com/Article/An-Overview-of-Chapter-7-Bankruptcy/213050
    3. http://www.caeb.uscourts.gov/data/whatsnew/summary_chapter1.pdf

 

 

 

Debt Settlement

Negotiating Credit Debt Settlement

Personal Credit Card Debt Settlement

 

Tax Implications For Debt Settlement

 

Highlights

Chapter 1 and 7 debt consolidation

Debt Arbitration Vs Debt Consolidation

Mortgage Debt Relief Act

Remortgage For Debt Consolidation

Which Is Better Bankruptcy Or Debt Consolidation

Debt Elimination For Seniors

Do I Qualify For Mortgage Debt Relief




DEBT ELIMINATION RESOURCES
Debt Consolidation | Reducing Debt | Student Debt | Grant & Support | Loans | Debt Settlement

 

Privacy Policy | Sitemap | Contact Us

Copyright © 2009 - 1st Debt Consolidation