Bankruptcy Basics – Part 1: Introduction

This is a series of videos from website featuring Bankruptcy Basics Videos that were uploaded to YouTube.
Part 1
Bankruptcy is a legal process that provides relief to many individuals who can no longer pay all of their debts.
Running Time: (2:38)

This video gives basic information about Bankruptcy, the relief available, and how to get the legal help you need. Bankruptcy is a legal process for consumers to deal with their debts when they can no longer pay their bills and debts. An individual is called the Debtor. A Chapter 7 Bankruptcy is filed to get most, if not all, of the Debtor’s debts discharged (meaning wipe out and eliminated). A Chapter 13 Bankruptcy is filed for Debtors with regular income to consolidate their bills into one monthly, affordable payment and get extra time to pay in the Debtor’s Chapter 13 Plan.

Debtors are allowed to keep exempt property, and most of the Debtors’ property is exempt.

Consumers are also told that their creditors cannot continue to collect debts or sue during the bankruptcy case. The bankruptcy law provides this “automatic stay” by the simple filing or commencement of a bankruptcy case. Creditors attempting to repossess or foreclose must stop repossession of property such as automobiles and the sale of a debtor’s home at any foreclosure sale. The debtor however must notify a creditor of the filing of a bankruptcy case in order to stop repossession and foreclosure. The protection of the automatic stay allows debtors to keep their assets and catch up on back payments in a Chapter 13.