Truth About Bankruptcy All that glitters may not necessarily be gold and ads which offer to help may actually lead you into bankruptcy. The Federal Trade Commission cautions consumers to read between the lines when faced with ads in newspapers, magazines or even telephone directories that say: We are: $$ Fast $$ Easy $$ Secure $$ Helpful "Consolidate your bills into one monthly payment without borrowing." "STOP credit harassment, foreclosures, repossessions, tax levies and garnishments," "Keep Your Property." "Wipe out your debts! Consolidate your bills! How? By using the protection and assistance provided by federal law. For once, let the law work for you!" If fleming bankruptcy fleming bankruptcy you accept such ads you will most often discover later that such phrases often involve bankruptcy proceedings, which can hurt your credit and cost you attorneys' fees. But long before any talk of bankruptcy you should be talking to your creditors to see if any arrangements can be made to lower interest, extend payments, skip a payment, or many other options. You should also be considering a credit or debt counselor. In fact, the new bankruptcy law requires scheduling counseling before filing. [At present the New Bankruptcy Law is in the Senate for fine tuning but once signed, it will become effective current home mortgage rates fleming bankruptcy in 180 days.] There are two primary types of personal bankruptcy: Chapter 13 and Chapter 7. Each must be filed in federal bankruptcy court. The current filing fees are currently $160. Attorney fees are additional and can vary widely. The consequences of bankruptcy are significant and require careful consideration. Chapter 13 allows you, if you have a regular income and limited debt, to keep property, such as a mortgaged house or car, that you otherwise might lose. In Chapter 13, the court approves a repayment plan that allows you to pay off a default during a period of three to five years, rather loans for people with bad credit fleming bankruptcy than surrender any property. Chapter 7, known as straight bankruptcy, involves liquidating all assets that are not exempt. Exempt property may include cars, work-related tools and basic household furnishings. Some property may be sold by a court-appointed official-a trustee-or turned over to creditors. You can receive a discharge of your debts under Chapter 7 only once every six years. Both types of bankruptcy may get rid of unsecured debts and stop foreclosures, repossessions, garnishments, utility shut-offs, and debt collection activities. Both also provide exemptions that allow you to keep certain assets, although exemption amounts vary. Personal bankruptcy usually does not erase child support, alimony, debt relief clearinghouse fleming bankruptcy fines, taxes,