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What is Bankruptcy?

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					                This is an excerpt from the




    CONSUMER’S GUIDE TO
       BANKRUPTCY

                 IN THE FULL GUIDE YOU WOULD GET:

        A basic understanding of the 2 main types of consumer bankruptcy,
        valuable insights into evaluating bankruptcy as a debt reduction tool,
          and practical guidance for finding a quality bankruptcy attorney.

                                 Topics covered:

-   An overview of the bankruptcy process.
-   Key bankruptcy terms like: “discharge,” “automatic stay,” and “exemptions.”
-   Chapter 7 bankruptcy: what it is, how it works, and when it is preferred.
-   Chapter 13 bankruptcy: what it is, how it works, and when it is preferred.
-   How bankruptcy can save a home from foreclosure or a car from repossession.
-   5 good reasons to file bankruptcy.
-   5 good reasons not to file bankruptcy.
-   3 alternatives to filing for bankruptcy.
-   5 questions to ask when interviewing a prospective bankruptcy attorney.




          Want a free copy of this guide?
       Just send an email to bkguide@llgtn.com and look for it in your inbox!
                                              WHAT IS BANKRUPTCY?



                                                  There	
  are	
  2	
  main	
  types	
  of	
  consumer	
  bankruptcies:	
  
       Bankruptcy	
  is	
  a	
                    Chapter	
  7	
  and	
  Chapter	
  13.	
  	
  Both	
  help	
  you	
  with	
  your	
  
       legal	
  process	
  in	
  which	
          debt,	
  but	
  in	
  very	
  different	
  ways.	
  	
  	
  
       individuals,	
  couples,	
                 	
  
       families,	
  and	
                         As	
  you	
  consider	
  bankruptcy	
  as	
  a	
  possible	
  debt	
  
                                                  resolution	
  tool,	
  it	
  is	
  important	
  to	
  know	
  how	
  and	
  to	
  
       businesses	
  can	
  
                                                  what	
  extent	
  each	
  chapter	
  eliminates	
  debt,	
  and	
  what	
  is	
  
       eliminate,	
  repay,	
  or	
  
                                                  required	
  of	
  you	
  during	
  each,	
  so	
  that	
  you	
  can	
  know	
  
       restructure	
  some	
  or	
                which	
  option	
  is	
  the	
  best	
  for	
  you.
       all	
  of	
  their	
  debts.	
  	
  	
  

                            	
                    WHY FILE?
                                                  People	
  file	
  bankruptcies	
  for	
  a	
  variety	
  of	
  reasons.	
  	
  	
  
                                                  	
  
                                                  You	
  may	
  file	
  to	
  obtain	
  a	
  discharge	
  of	
  their	
  debts.	
  	
  The	
  
                                                  discharge	
  frees	
  you	
  from	
  your	
  oppressive	
  financial	
  
	
                                                situation,	
  and	
  provides	
  you	
  a	
  fresh	
  financial	
  start,	
  by	
  
	
                                                eliminating	
  some	
  or	
  all	
  of	
  your	
  debts.	
  	
  	
  
                                                           	
  
	
                                                You	
  could	
  also	
  file	
  to	
  invoke	
  the	
  automatic	
  stay,	
  
	
                                                which	
  can	
  stop	
  creditor	
  harassment	
  and	
  lawsuits,	
  and	
  
                                                  protect	
  your	
  house	
  from	
  foreclosure,	
  your	
  car	
  from	
  
                                                  repossession	
  or	
  your	
  paycheck	
  from	
  garnishment.	
  
                                                  	
  
                                                  Others	
  file	
  to	
  restructure	
  and	
  consolidate	
  debt	
  into	
  a	
  
                                                  manageable	
  payment.	
  	
  	
  
                                                  	
  




2                      Got a question about your situation or something you read in this guide?
                         Feel free to email me at bkguide@llgtn.com, call me at 615-807-1064,
                                         or visit the website at www.llgtn.com.
                                      WHAT IS BANKRUPTCY?




    Bankruptcy	
  is	
  a	
               BASIC BANKRUPTCY REQUIREMENTS
    legal	
  proceeding	
  in	
           In	
  any	
  bankruptcy	
  you	
  must	
  provide	
  certain	
  
    federal	
  court	
  in	
  which	
     information	
  to	
  the	
  Court,	
  your	
  creditors,	
  and	
  your	
  
    a	
  person	
  with	
  more	
         Trustee	
  (a	
  court	
  appointed	
  attorney	
  that	
  oversees	
  
                                          your	
  case).	
  	
  The	
  typical	
  case	
  requires	
  you	
  to	
  detail:	
  
    debts	
  than	
  they	
  can	
  
                                          	
  
    pay	
  seeks	
  relief	
  from	
  
                                                 1. All	
  of	
  your	
  assets	
  (everything	
  you	
  own);	
  
    those	
  debts.	
  	
  	
  	
                2. All	
  of	
  your	
  liabilities	
  (everyone	
  you	
  owe);	
  
    	
  	
                                       3. Your	
  current	
  and	
  expected	
  future	
  income;	
  
                                                 4. Your	
  current	
  and	
  expected	
  future	
  expenses;	
  
                                                 5. The	
  specific	
  state	
  laws	
  that	
  you	
  are	
  using	
  to	
  
                                                       exempt	
  your	
  assets	
  from	
  your	
  creditors.	
  
                                          	
  
                                          	
  
                                          You	
  must	
  also	
  file	
  certain	
  documents,	
  including:	
  
                                                 1. A	
  statement	
  of	
  your	
  recent	
  financial	
  affairs;	
  
                                                 2. A	
  certificate	
  of	
  credit	
  counseling	
  from	
  an	
  
                                                       approved	
  provider	
  (or	
  a	
  waiver);	
  
                                                 3. Your	
  most	
  recent	
  tax	
  return;	
  
                                                 4. Your	
  most	
  recent	
  60	
  days’	
  worth	
  of	
  pay	
  stubs	
  
                                                       or	
  other	
  proof	
  of	
  income.	
  
                                          	
  
                                          	
  
                                          At	
  some	
  point	
  during	
  your	
  case	
  you	
  will	
  go	
  to	
  what	
  is	
  
                                          called	
  a	
  “Meeting	
  of	
  Creditors,”	
  where	
  your	
  Trustee	
  
                                          and	
  your	
  creditors	
  have	
  the	
  right	
  to	
  ask	
  you	
  questions	
  
                                          about	
  your	
  case.	
  	
  	
  
                                          	
  
                                          For	
  the	
  vast	
  majority	
  of	
  debtors,	
  this	
  is	
  the	
  only	
  time	
  
                                          you	
  will	
  go	
  to	
  “Court,”	
  and	
  few,	
  if	
  any,	
  creditors	
  will	
  
                                          attend.	
  	
  	
  
                                          	
  

3                 Got a question about your situation or something you read in this guide?
                    Feel free to email me at bkguide@llgtn.com, call me at 615-807-1064,
                                    or visit the website at www.llgtn.com.
                                               ABOUT THE AUTHOR



	
                                                     GORDON BOUTWELL is	
   a	
   bankruptcy	
   and	
   consumer	
  
	
                                               protection	
   attorney	
   in	
   Franklin,	
   Tennessee.	
   	
   He	
   has	
  
                                                 practiced	
   law	
   since	
   2006,	
   with	
   most	
   of	
   that	
   time	
  
                                                 dedicated	
   to	
   bankruptcy,	
   personal	
   finance,	
   and	
  
                                                 consumer	
  advocacy.	
  	
  	
  
                                                 	
  
                                                 Over	
  the	
  years	
  he	
  has	
  helped	
  hundreds	
  of	
  individuals,	
  
                                                 couples,	
  and	
  families	
  with	
  their	
  financial	
  problems.	
  	
  He	
  
                                                 believes	
   in	
   treating	
   other	
   people	
   the	
   way	
   he	
   would	
  
                                                 want	
   to	
   be	
   treated	
   in	
   the	
   same	
   situation.	
   	
   He	
   takes	
  the	
  
                                                 time	
  to	
  get	
  to	
  know	
  his	
  clients,	
  and	
  he	
  educates	
  them	
  
                                                 on	
  their	
  options	
  for	
  getting	
  out	
  of	
  debt,	
  helping	
  them	
  to	
  
                                                 understand	
  and	
  evaluate	
  them.	
  	
  	
  	
  	
  
                                                 	
  
                                                 He	
   believes	
   bankruptcy	
   is	
   a	
   worthwhile	
   tool	
   to	
   help	
  
                                                 some	
   (but	
   not	
   all)	
   people	
   get	
   out	
   of	
   debt,	
   and,	
   when	
  
                                                 combined	
  with	
  financial	
  education	
  and	
  counseling,	
  can	
  
                                                 be	
  a	
  springboard	
  to	
  financial	
  independence.	
  	
  	
  
                                                 	
  
                                                 In	
   March	
   2011,	
   Gordon	
   and	
   R.	
   Keith	
   Gordon	
   formed	
  
Gordon	
  H.	
  Boutwell,	
  Atty	
              the	
   Lodestone	
   Legal	
   Group	
   in	
   Franklin	
   Tennessee,	
  
Lodestone	
  Legal	
  Group	
                    with	
   the	
   purpose	
   of	
   assisting	
   business	
   and	
   private	
  
198	
  E.	
  Main	
  St.,	
  Ste.	
  4	
         clients	
  by	
  exploring	
  legal	
  options,	
  navigating	
  the	
  legal	
  
Franklin,	
  TN	
  37064	
  
                                                 pitfalls,	
   and	
   providing	
   measurable	
   results	
   through	
  
615-­‐807-­‐1064	
  
                                                 custom	
  solutions	
  and	
  a	
  commitment	
  to	
  the	
  lost	
  art	
  of	
  
bkguide@llgtn.com	
  
www.llgtn.com	
                                  personal	
  care	
  and	
  client	
  service.	
  
	
                                               	
  
	
                                               Lodestone	
   Legal	
   Group	
   practices	
   in	
   the	
   areas	
   of	
  
	
                                               bankruptcy,	
  debt	
  negotiation	
  and	
  settlement,	
  financial	
  
                                                 counseling,	
   residential	
   and	
   commercial	
   real	
   estate,	
  
                                                 estate	
   planning	
   (wills	
   and	
  trusts),	
   and	
  small	
   business	
  
                                                 and	
  corporate	
  law.	
  	
  	
  
                                                 	
  
                                                 	
  
                                                 	
  
   4                                             	
  	
  	
  	
  	
  	
  
                     Got a question about your situation or something you read in this guide?
                             Feel free to email me at bkguide@llgtn.com, call me at 615-807-1064,
                                             or visit the website at www.llgtn.com.

				
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Description: Basic information on bankruptcy - the 2 types, why people file, and the requirements to file