Bankruptcy

A Levels Academy Islamabad

Transcript

00:00We've all heard the term, BANKRUPTCY.

00:05Dramatic, overwhelming, the final act of a desperate individual.

00:10Or rather, something you can totally handle on your own in court.

00:14Seriously.

00:16You just have to know what you're getting yourself into.

00:18Let's start with the basics.

00:20What exactly is bankruptcy?

00:22Bankruptcy is the legal process where a person or entity can eliminate debt

00:27or change the amounts you have to pay at one time.

00:30All bankruptcy cases are handled in federal court

00:33because it's a right provided by federal law.

00:36Once you file for bankruptcy, collection of your debts is put to an immediate halt,

00:41at least until things get sorted out in the courtroom.

00:44In addition to a fresh financial start, bankruptcy can also stop foreclosure on a home,

00:50prevent repossession of your personal property, like automobiles or statues of yourself,

00:55keep your utilities on or restore your services,

00:58and stop creditor harassment, wage garnishment, and other debt collection tactics.

01:03Even if you can't get total debt relief, you can still have your monthly payments significantly reduced.

01:09Although, it must be equally emphasized that bankruptcy can't solve everything.

01:14Some creditors are protected from certain modifications to loan terms.

01:19And special debts like child support, alimony, student loans, criminal fines, and taxes

01:24cannot be changed by the bankruptcy court.

01:27There are different types of bankruptcy,

01:29which are named after the chapter of the bankruptcy code where they are described.

01:33Chapter 7, Chapter 11, Chapter 12, and Chapter 13.

01:38Each one has its own unique factors, analyses, and requirements to consider

01:43before knowing which one to file.

01:45The two most common types are Chapter 7 and 13.

01:48Chapter 7 is a fresh start, while Chapter 13 is a reorganization.

01:53LegalYou can help you sort out these difficult decisions and many others.

01:57Even though you're representing yourself, you're not alone.