and signature loans. If the
debt has collateral against it, then the debt would be secured.
Examples of secured debt include in-store purchases of goods where
financing is arranged by the store, auto loans and home loans. Priority
debts are usually those that cannot be discharged through bankruptcy,
like child support obligations, criminal penalties and some taxes.
Even though persons filing bankruptcy are required to list all of
their creditors in the petition, there is no guarantee that all
of their debts will be wiped out.
What happens to my credit rating?
Most people regain credit within two years after they complete
their bankruptcy case by demonstrating good payment habits following
their bankruptcy. By making these payments on time each month, good
credit is being reported on their behalf. So, with most of their
old debt discharged and nothing but on time payments being reported
for the past two years, many ex-bankruptcy debtors find themselves
having good credit again. You want to be sure to make your payments
on time to recover from bankruptcy.
What is 'in good faith' Bankruptcy?
All bankruptcy filings are required to be 'in good faith.' This
requirement comes from Congress' intent that bankruptcy may be used
to give people a fresh start after some event, or series of events,
left them in financial straits. (The U.S. Congress, Bankruptcy Code,
Title 11 of the United States Code). Congress considers the balance
of power between creditor and debtor interests, and is able to maintain
fairness in the balance by virtue of its power to make and amend
these laws. Bankruptcy is not intended to give debtors an unfair
advantage over their creditors. It is not intended to protect people
who have acted deliberately to cause harm to others. Bankruptcy
is intended to help honest debtors, who would otherwise exist under
an unrelenting burden of debt, get back on their feet. Congress'
rationale is that it is better to have a mentally healthy and productive
population than to punish people for years for their financial mistakes.
What Are Some Reasons for Filing Bankruptcy?
In Good Faith Filings:
