While bankruptcy can provide much-needed relief to those who are overwhelmed with their debt problems, there are certainly some ramifications you should be aware of. One thing you might be worried about is whether bankruptcy will affect your current job. Can your employer fire you or discriminate against you if you declare bankruptcy?

No, at least your employer cannot legally fire you simply because you declare bankruptcy. Federal law prohibits discrimination against you because of a bankruptcy petition. Prospective employers are a different matter, however.

If you apply for a job, the company can look into your credit report. This is particularly common if you have to be bonded such as a job in a jewelry store or dealing with financial matters. There is certainly a chance that an employer would choose to look elsewhere after looking at your credit report in these cases. Not every company will do this, however, so it isn’t as if you could never get a job.

Even so, your current employer is not supposed to take any negative action against you. Chances are your boss will not even find out about your financial situation. Yes, your filing is technically a matter of public record, but who is going to bother looking into this? You don’t have to mention your financial troubles or your Chapter 7 filing to your boss. Unless you live in a small community, your neighbors and coworkers would likely not have any idea.

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Comparing the foreclosure rates of the year 2008 with the year 2009, there is a lot that the US stock is not able to bear with, due to the too much upheaval caused by the Inflation. According to the economists the housing market is not going to improve so soon and in fact there is going to be more filings of foreclosure comparatively and the rates are also going to fall more and more. As of now there is a total collapse of the Subprime Mortgage Markets and the next one to drop down is the Adjustable Rate Mortgages (ARM) which has begun in the April of 2009.

These loans actually encouraged many owners to mortgage property and get more loans for less interest rate and due to which many are now suffering and losing their property as foreclosure. Earlier people with a little more income than the normal were allowed loans on mortgage on ARM and with a little less income were allowed loans on subprime. People who borrowed loans on subprime have already lost their property on foreclosure and now people who borrowed under ARM are sufferers.

Those who were earlier considered for ARM are now not even eligible for Subprime. People who have borrowed loans based on ARMs were allowed to make payment only on the interest part which has now totally resulted on negative pay back. Even though the people who have lent are paying back their payment they are able to pay back only the interest as per the scheme and are now at a higher risk of losing their property on foreclosure.

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The goal of Chapter 13 bankruptcy is to help you create a payment plan so that you can pay off part or all of your debt during the next three to five years. But how do you determine whether you have to pay a creditor in full instead of settling for pennies on the dollar during a Chapter 13 bankruptcy plan. Well, that largely depends on the kind of debt that we’re talking about.

There are some kinds of financial obligations labeled as priority claims. These kinds of debts must be paid off completely during the repayment plan. Some types of priority claims include child support obligation and back taxes. If you have these kinds of financial concerns, then you will need to create a payment plan in which you pay off these priority claims completely. If you are not able to do so, you may not qualify for Chapter 13.

What are some other eligibility requirements for Chapter 13? Well, for one thing, there is a maximum amount of debt. To qualify for Chapter 13, you should not owe more than $922,975 in secured debts. You should also not have more than $307,675 in unsecured debt. If you’re wondering about the difference between secured debts and unsecured debts, it’s actually pretty simple. A secured debt means that there is an asset that can be repossessed such as your car or your house. Unsecured debts, such as credit cards, are not backed up by any collateral.

Your eligibility for this kind of bankruptcy and the exact terms that you are given also depend on your recent filing history. If you have filed with a bankruptcy court for any kind of relief during the last few years, this may change your situation considerably. If you were given a discharge recently, you’ll be treated differently. How so? Well, assuming you qualify for another discharge to begin with, you’ll probably have to pay off all of your debt to the creditors during a repayment plan instead of simply settling for a fraction of the cost.

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