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The word "iflas" or "bankruptcy" has a terrible sound to it. When we hear that someone is declaring bankruptcy, the reaction could be to think of failure and collapse. The word "bankruptcy" could bring to mind depressing images of stores going out of business, or someone hitting rock bottom in their personal life. It's true that the word does not convey happy and positive thoughts. But some see bankruptcy in a different way... as a "fresh start."

Bankruptcy is a legal means of being forgiven on debts. There are different approaches to this. In the United States, they are named after the chapters of the Bankruptcy Code. Chapter 11 and Chapter 13 involve restructuring debt. The common form of bankruptcy used by many individuals in financial hardship is Chapter 7 bankruptcy. This can result in liquidation of debt, in other words, getting rid of the debts.

To qualify for Chapter 7 bankruptcy, a person must satisfy certain financial requirements, based on their income, expenses, and assets. Chapter 7 bankruptcy could eliminate personal debts, such as credit card debt, hospital bills, and personal loans. There are debts that cannot be dismissed by bankruptcy, such as child support, tax liens, student loans, damages incurred from driving intoxicated, criminal restitution, and others.

This is a simplified overview. If you're thinking about bankruptcy, a bankruptcy attorney could outline the process, based on income, property, assets, and other factors. There are other options as well, and bankruptcy is not always the best solution.

To all who read this... I wish you success and prosperity for the year ahead. However, we live in difficult times and many people are in financial distress. It isn't a shameful or the end of the world to be in this position. It happens. A good attorney or debt counselor could help get one's life back in order.

Good Luck - Kendinize Iyi Bakin

Avukat Timur Akpinar

(718) 224-9824

www.benimavukatim.com

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