The most widely held misconception about bankruptcy is that it’s the debtor’s version of the “get out of jail free” card in Monopoly. While most people know that bankruptcy affects your credit for 7 to 10 years, very few people know that it’s possible that you’ll have to pay back the debt anyway, even if you file a Chapter 7 “straight” bankruptcy. The formal definition of bankruptcy is “a proceeding in federal court in which an insolvent debtor’s assets are liquidated and the debtor is relieved of further liability.” On the other hand, the commonplace definition of bankruptcy is probably “the process of completely wiping out your debts for free.” In the majority of cases, the latter definition may be appropriate, but in some scenarios, it’s likely that even with bankruptcy, you’ll still have to pay back at least a portion of the debt.
So when is it likely that you’ll have to pay back your debts? Here are the most common scenarios when you’ll get all the negatives of filing bankruptcy (severe credit impact for 7 to 10 years), but none of the benefits (you’ll still have to pay back at least part of the debt):
1) You make more than the average person in your state. If this is the case, then it’s likely that you’ll be forced into a Chapter 13 bankruptcy plan. In a Chapter 13 bankruptcy, the court orders that you pay all your disposable income to a court appointed trustee, who in turn disburses payments to your creditors. Keep in mind that the court determines your disposable income by national and county statistics on average necessary expenses, not what you’re paying. So just because you’re paying a lot for a car doesn’t mean the court will approve it. There are numerous cases when a judge ordered families to stop sending their children to private schools so they can have more money to pay back their creditors. In Illinois, here are the latest statistics on the Illinois median income by size of household:
Illinois Estimate
1-person families 41,650
2-person families 52,891
3-person families 62,176
4-person families 72,368
2) You have assets. If you own a home or car, then it’s possible that the bankruptcy court will force you to sell them to generate sufficient cash to pay back your creditors. Chances are if have a good chunk of change invested (unless it’s in a tax-exempt account like an IRA) then you’ll also be forced to liquidate it. If you have a second home or another vehicle (assuming you own both completely), then you’re really out of luck. Fortunately, there are some safeguards to protect consumers from bankruptcy hell. In Illinois, every resident is entitled to at least $7,500 of the value of their home, $1200 of the value of their vehicle, and $2,000 for anything that they want (known as the wildcard exemption). Also, these values double if you’re married (assuming the property is in both of your names).
What does this actually mean? Consider the following example.
Let’s say you have a house that’s worth $250,000, and it’s in both yours and your wife’s name. You still owe about $200,000 on your mortgage, and you decided to file Chapter 7 bankruptcy. In this example, you would be forced to sell your home, and with the proceeds you would pay back the mortgage company what you owe on the outstanding balance of the loan ($200,000), you’d pay yourself the Illinois real estate exemption ($15,000), and then you’d pay back your other creditors whatever was left ($250K-200K-15K=$35,000).
Let say your house was only worth $215,000, but everything else in the above example remained the same. In this case, you wouldn’t be forced to sell your home because the proceeds from the sale wouldn’t amount to anything after you paid back the mortgage company and then paid back yourself the Illinois real estate exemption.
3) The creditors can prove that you were fraudulent and never had any intention of paying them back.
For the majority of us it means that unless a) you don’t have a lot of equity in any of your property, b) you don’t have any investments like stocks, real estate, ect., c) you don’t care about having to sell anything mentioned in points a and b, or d) you don’t care about having to give up your disposable for 5 years in a Chapter 13, then bankruptcy may not be your best option.
http://www.articlefrenzy.com/Article/Will-You-Have-to-Pay-Back-the-Debt-Anyway-/62103
Friday, November 16, 2007
New Bankruptcy Law
New Bankruptcy Law Did Not Slow Down Filings
Make sure that you understand the news bankruptcy law before you file for bankruptcy as the new bankruptcy law is more favorable for the people you owe money to. Make sure that your bankruptcy lawyer explains to you the difference in the new bankruptcy law.
After listening to financial institutions and lender complain about the amount of money their companies and shareholders were losing to bankruptcy, the government tightened the requirements for bankruptcy in 2005. Under the new bankruptcy law, filing a Chapter 7 bankruptcy is not as easy as in the past and many hoping to see their debts wiped clean in a hurry found themselves restricted to Chapter 13 bankruptcy, which is a court-ordered repayment plan to pay off debt.
Under the new bankruptcy law, persons looking to file must complete a debt counseling program during which it is determined if the person has the ability to pay their loans under a court-ordered plan. Once the bankruptcy goes through the court, before the debts are discharged, they have to attend a second session on debt management and money management. The new bankruptcy law does not stipulate they follow anything they learn in the sessions, only that they have to attend before their slate can be wiped clean.
Additional changes allows for some assets that used to be exempt to be confiscated and sold by the bankruptcy trustee to satisfy a portion of the debt. State exemptions for certain properties also play a role in the new bankruptcy law. For example, a person living in Nevada, having met the residency requirement and passed the bankruptcy income test, can claim a $15,000 exemption on a motor vehicle. In California the exemption is $2,300 under the new bankruptcy law.
Passing Means Test Is First Important Step
To determine if a person can file under the new bankruptcy law, a means test is completed. If the current monthly income is below the average income in the state in which they reside, they can file for Chapter 7 bankruptcy. It should be noted that the current monthly income is calculated as an average for a six-month period prior to filing and not the income for the past month. If a person lost their job and wants to file for bankruptcy, any employment during the previous six months will be considered during application of the means test.
If their current monthly income exceeds the state average income they will need to file for Chapter 13 bankruptcy. Additionally, an income level as low as $166 a month over the
average will push them towards Chapter 13, under the new bankruptcy law, regardless of actual living expenses. All expenses are governed by the Internal Revenue Service’s expense guidelines, even if the area in which they live has a higher cost of living.
http://www.articlefrenzy.com/Article/New-Bankruptcy-Law/120805
Make sure that you understand the news bankruptcy law before you file for bankruptcy as the new bankruptcy law is more favorable for the people you owe money to. Make sure that your bankruptcy lawyer explains to you the difference in the new bankruptcy law.
After listening to financial institutions and lender complain about the amount of money their companies and shareholders were losing to bankruptcy, the government tightened the requirements for bankruptcy in 2005. Under the new bankruptcy law, filing a Chapter 7 bankruptcy is not as easy as in the past and many hoping to see their debts wiped clean in a hurry found themselves restricted to Chapter 13 bankruptcy, which is a court-ordered repayment plan to pay off debt.
Under the new bankruptcy law, persons looking to file must complete a debt counseling program during which it is determined if the person has the ability to pay their loans under a court-ordered plan. Once the bankruptcy goes through the court, before the debts are discharged, they have to attend a second session on debt management and money management. The new bankruptcy law does not stipulate they follow anything they learn in the sessions, only that they have to attend before their slate can be wiped clean.
Additional changes allows for some assets that used to be exempt to be confiscated and sold by the bankruptcy trustee to satisfy a portion of the debt. State exemptions for certain properties also play a role in the new bankruptcy law. For example, a person living in Nevada, having met the residency requirement and passed the bankruptcy income test, can claim a $15,000 exemption on a motor vehicle. In California the exemption is $2,300 under the new bankruptcy law.
Passing Means Test Is First Important Step
To determine if a person can file under the new bankruptcy law, a means test is completed. If the current monthly income is below the average income in the state in which they reside, they can file for Chapter 7 bankruptcy. It should be noted that the current monthly income is calculated as an average for a six-month period prior to filing and not the income for the past month. If a person lost their job and wants to file for bankruptcy, any employment during the previous six months will be considered during application of the means test.
If their current monthly income exceeds the state average income they will need to file for Chapter 13 bankruptcy. Additionally, an income level as low as $166 a month over the
average will push them towards Chapter 13, under the new bankruptcy law, regardless of actual living expenses. All expenses are governed by the Internal Revenue Service’s expense guidelines, even if the area in which they live has a higher cost of living.
http://www.articlefrenzy.com/Article/New-Bankruptcy-Law/120805
Pay Your Bills on Time Maintain Your Credit Ratings
It is often said that the most important possession a person is their reputation and good name. Your credit rating is attached to your name and follows you wherever you go in North America – be it New York, Chicago, Edmonton Alberta or Vancouver Canada. A credit rating is like a mirror- wonderful to look at when clear, but not very helpful of useful is damaged or sullied.
How can you maintain a good credit rating? It all comes down to consistency of paying your bills onetime and not running up debts that you cannot pay off or miss payments.
Many people will say- its only one small payment what does Visa, the car dealership where you financed your new auto or SUV care? After all they have more money than they ever need. Maybe you will get by with one excuse of a forgotten check. But do this a second time and the system will red flag your account, name, address etc. Then you might say – well Christmas is coming up – MasterCard, the bank or the finance company won’t really notice. Wrong again. The system will flag you again. This time as more severe. Amazingly the whole credit system seems to have tentacles that share information – especially about bad creditors and debtors who owe money and are remiss on payments.
You may not think this is all a big deal – especially if you normally pay you bills on time. However now the system has picked up the consistency of your late payment and credit schedule. It’s as if you have a thousand nosy neighbors watching your home and front door for that girlfriend sneaking out late in the evening. Your poor payment history will be spread across the system to who knows where and to how many countless credit and credit reporting agencies.
The humor is that you may never know what is on the other side of the ledger so to speak. If your application for a loan or finance for a second auto is denied seldom will you receive any other notification or information than the denied claim? Information is supposed to be readily available – at least according to industry information – some say propaganda. If the information is that readily available – and readable to any layman what would be the value that companies would pay for ready access to it. You may say that the credit companies say that everyone is entitled to see their file. True – but are you going to tell your boss you need some time off to view your credit history since you are having trouble with your personal finances and having loan requests refused. Talk about a lose lose situation of a loss of your image of personal honor, integrity and .trustfulness on the job site and with your employer. In life most everything comes down to actual logistics. Then again you can request your credit history on the internet through thousands of firms who will provide these services online – for a fee. First of all is the information on your credit history – valid, up to date and accurate. For fun try a couple of free test probes at some of these sites. You are what you are and you ain’t what you aint. Many of these services have a worse reputation than you do so to speak.
No matter what information and credit information you place fill out online the same answers or answer will emerge. In order to receive accurate and relevant personal credit information most reputable sites will request identification and payment by credit card.
As they say lots of luck. Banks, finance and credit card companies will loan to people who need it the least – those with lots of money and excellent credit. If you had no credit problems why would you be searching out the reasons for your credit and finance applications denials? On top of that your credit card, finances and overdraft at the bank or savings and loan is most likely tapped out and overextended already.
In this day and age of computers and rapid communications a couple simple financial mistakes can lead to a real quagmire. It’s best to follow the simple advice of your grandmother - stay within your means. Don’t buy what you cannot afford. It is always best to pay cash.
http://www.articlefrenzy.com/Article/Pay-Your-Bills-on-Time--Maintain-Your-Credit-Ratings/128822
How can you maintain a good credit rating? It all comes down to consistency of paying your bills onetime and not running up debts that you cannot pay off or miss payments.
Many people will say- its only one small payment what does Visa, the car dealership where you financed your new auto or SUV care? After all they have more money than they ever need. Maybe you will get by with one excuse of a forgotten check. But do this a second time and the system will red flag your account, name, address etc. Then you might say – well Christmas is coming up – MasterCard, the bank or the finance company won’t really notice. Wrong again. The system will flag you again. This time as more severe. Amazingly the whole credit system seems to have tentacles that share information – especially about bad creditors and debtors who owe money and are remiss on payments.
You may not think this is all a big deal – especially if you normally pay you bills on time. However now the system has picked up the consistency of your late payment and credit schedule. It’s as if you have a thousand nosy neighbors watching your home and front door for that girlfriend sneaking out late in the evening. Your poor payment history will be spread across the system to who knows where and to how many countless credit and credit reporting agencies.
The humor is that you may never know what is on the other side of the ledger so to speak. If your application for a loan or finance for a second auto is denied seldom will you receive any other notification or information than the denied claim? Information is supposed to be readily available – at least according to industry information – some say propaganda. If the information is that readily available – and readable to any layman what would be the value that companies would pay for ready access to it. You may say that the credit companies say that everyone is entitled to see their file. True – but are you going to tell your boss you need some time off to view your credit history since you are having trouble with your personal finances and having loan requests refused. Talk about a lose lose situation of a loss of your image of personal honor, integrity and .trustfulness on the job site and with your employer. In life most everything comes down to actual logistics. Then again you can request your credit history on the internet through thousands of firms who will provide these services online – for a fee. First of all is the information on your credit history – valid, up to date and accurate. For fun try a couple of free test probes at some of these sites. You are what you are and you ain’t what you aint. Many of these services have a worse reputation than you do so to speak.
No matter what information and credit information you place fill out online the same answers or answer will emerge. In order to receive accurate and relevant personal credit information most reputable sites will request identification and payment by credit card.
As they say lots of luck. Banks, finance and credit card companies will loan to people who need it the least – those with lots of money and excellent credit. If you had no credit problems why would you be searching out the reasons for your credit and finance applications denials? On top of that your credit card, finances and overdraft at the bank or savings and loan is most likely tapped out and overextended already.
In this day and age of computers and rapid communications a couple simple financial mistakes can lead to a real quagmire. It’s best to follow the simple advice of your grandmother - stay within your means. Don’t buy what you cannot afford. It is always best to pay cash.
http://www.articlefrenzy.com/Article/Pay-Your-Bills-on-Time--Maintain-Your-Credit-Ratings/128822
Euro Impact on the East European Countries and Banks
The German central bank (the Bundesbank) estimates that more than one out of every three German marks circulates outside of Germany -- signifying billions of marks. The banks says the majority of them are in Eastern Europe and the territory of the former Soviet Union.
Because of the mark's stability, and Germany's role as a place of employment for Eastern European workers who send their money home, the mark has evolved into a de facto second currency in the lands to the south and east of Germany's borders.
Montenegro and Kosovo have even adopted the mark as legal tender. Other countries have pegged their currencies to the mark through currency boards. Bosnia uses a unit of exchange called the "convertible mark," which trades on a one-to-one basis with the German mark.
But the mark -- along with the other currencies of the European Union's 12-nation euro-zone -- is about to disappear.
On 1 January 2002, more than 250 million people in Western Europe will begin exchanging their national currencies for the euro. Older currencies and euros will circulate together until the end of February. After that, the national currencies will no longer be used.
That does not mean the currencies will be worthless. Central banks will continue to exchange them for euros for several years to come. But for all intents and purposes, Western Europe's national currencies -- including the mark -- will cease to exist.
Hans-Werner Sinn of Germany's Ifo economic research institute has looked into all aspects of the coming changeover. He says Eastern Europeans, like their counterparts in Western Europe, will eventually have to exchange their marks for euros.
"Clearly, these Deutschemarks [German marks] will no longer be useful in the long run. So people will have to bring the Deutschemarks in to their respective banks and exchange them into euros. That will have to happen in the spring of next year [by the end of the February deadline]."
Antti Heinonen, the director of banknotes at the European Central Bank, or ECB -- the institution that is coordinating the switchover to euros -- says that the change should not cause many problems for most Eastern Europeans.
But the currency's first challenge -- in Eastern Europe at least -- will be to replace the mark in people's minds and mattresses.
http://www.articlefrenzy.com/Article/Euro-Impact-on-the-East-European-Countries-and-Banks/130466
Because of the mark's stability, and Germany's role as a place of employment for Eastern European workers who send their money home, the mark has evolved into a de facto second currency in the lands to the south and east of Germany's borders.
Montenegro and Kosovo have even adopted the mark as legal tender. Other countries have pegged their currencies to the mark through currency boards. Bosnia uses a unit of exchange called the "convertible mark," which trades on a one-to-one basis with the German mark.
But the mark -- along with the other currencies of the European Union's 12-nation euro-zone -- is about to disappear.
On 1 January 2002, more than 250 million people in Western Europe will begin exchanging their national currencies for the euro. Older currencies and euros will circulate together until the end of February. After that, the national currencies will no longer be used.
That does not mean the currencies will be worthless. Central banks will continue to exchange them for euros for several years to come. But for all intents and purposes, Western Europe's national currencies -- including the mark -- will cease to exist.
Hans-Werner Sinn of Germany's Ifo economic research institute has looked into all aspects of the coming changeover. He says Eastern Europeans, like their counterparts in Western Europe, will eventually have to exchange their marks for euros.
"Clearly, these Deutschemarks [German marks] will no longer be useful in the long run. So people will have to bring the Deutschemarks in to their respective banks and exchange them into euros. That will have to happen in the spring of next year [by the end of the February deadline]."
Antti Heinonen, the director of banknotes at the European Central Bank, or ECB -- the institution that is coordinating the switchover to euros -- says that the change should not cause many problems for most Eastern Europeans.
But the currency's first challenge -- in Eastern Europe at least -- will be to replace the mark in people's minds and mattresses.
http://www.articlefrenzy.com/Article/Euro-Impact-on-the-East-European-Countries-and-Banks/130466
Thursday, November 15, 2007
Filing Corporate Bankruptcy
There are many questions raised when a company files for corporate bankruptcy. As an investor, people would like to what happens to the company, who would look into the interests of investors, and above all, if the old securities have any value left, or is the stock is turned into paste paper until the company is reorganized.
Companies that go out of business or try to recover from crippling debt are governed by federal bankruptcy laws. A bankrupt company, the "debtor," can use either Chapter 11 or chapter 7 of the Bankruptcy Code.
Under Chapter 11, the company is allowed to "reorganize" its business and attempt to develop into a profitable corporation. The company still functions on a day-to-day basis other than the fact that all important business decisions have to be agreed upon by a bankruptcy court.
Where as under Chapter 7, the company will stops all it operations and completely shut all its functions. The court assigns a trustee to "liquidate" (sell) the company's assets. The money so collect is then used to pay off the debt, which would take account both the debts to creditors and investors.
During a payment, the investors are paid first, due to their risk involvement. Bondholders have an advantage over stockholders since bonds stand for the debt of the company and the company has agreed to pay bondholders interest and to return their principal. Where as stockholders own the company, and therefore take on greater risk. On a good day, it is the stockholder who would make more money, but at the same time, as the company goes bankrupt, the stockholders bear to lose, as owners are last in line to be repaid if the company fails. Also remember that under Chapter 11, stockholders are still able to trade the stock, but under Chapter 7 the stock is worthless.
The other creditors are usually secured creditors that have low risk factors since the credit that they extend is usually backed by collateral. Collateral can be the mortgage or other assets of the company. They also stand to be paid first as the company files for corporate bankruptcy.
Filing Bankruptcy provides detailed information about filing bankruptcy, filing bankruptcy online, filing chapter 11 bankruptcy, and more. Filing Bankruptcy is affiliated with Free FICO Score.
Article Source: http://EzineArticles.com/?expert=Josh_Riverside
Companies that go out of business or try to recover from crippling debt are governed by federal bankruptcy laws. A bankrupt company, the "debtor," can use either Chapter 11 or chapter 7 of the Bankruptcy Code.
Under Chapter 11, the company is allowed to "reorganize" its business and attempt to develop into a profitable corporation. The company still functions on a day-to-day basis other than the fact that all important business decisions have to be agreed upon by a bankruptcy court.
Where as under Chapter 7, the company will stops all it operations and completely shut all its functions. The court assigns a trustee to "liquidate" (sell) the company's assets. The money so collect is then used to pay off the debt, which would take account both the debts to creditors and investors.
During a payment, the investors are paid first, due to their risk involvement. Bondholders have an advantage over stockholders since bonds stand for the debt of the company and the company has agreed to pay bondholders interest and to return their principal. Where as stockholders own the company, and therefore take on greater risk. On a good day, it is the stockholder who would make more money, but at the same time, as the company goes bankrupt, the stockholders bear to lose, as owners are last in line to be repaid if the company fails. Also remember that under Chapter 11, stockholders are still able to trade the stock, but under Chapter 7 the stock is worthless.
The other creditors are usually secured creditors that have low risk factors since the credit that they extend is usually backed by collateral. Collateral can be the mortgage or other assets of the company. They also stand to be paid first as the company files for corporate bankruptcy.
Filing Bankruptcy provides detailed information about filing bankruptcy, filing bankruptcy online, filing chapter 11 bankruptcy, and more. Filing Bankruptcy is affiliated with Free FICO Score.
Article Source: http://EzineArticles.com/?expert=Josh_Riverside
Florida Bankruptcy - Walk Away From Debt
Florida bankruptcy laws try to provide relief to borrowers with a new lease of life provided they try to learn from their past mistakes and in future manage their finances effectively and more efficiently. In fact, it is a legal way to get rid of debts.
It is always better to seek counseling from lawyers when you in case unfortunately fall into a financial trap and are unable to repay your loan liabilities. Under the there are many ways you can avail to get protection and relief. In certain case if you don't have regular income due to unemployment or serious sickness or in some other similar situation, Florida bankruptcy laws do have provision to deal with such genuine cases with protection and can allow a person to be absolved from paying part or full debt liability. In Florida, most of the people file bankruptcy under chapter 7 and of bankruptcy code. However, majority file under chapter 7.But on has to furnish documentary proof that he has no assets to repay.
Moreover, filing under chapter 7 cannot seek relief in future under chapter 7 again for next six years. In fact filing bankruptcy under any chapter is not a panacea from falling into debts in future unless you reform and learn from your past follies and manage your finances viz-a-viz your income more efficiently and carefully.
Otherwise, there is always a chance you may fall into a more serious debt trap with no point of return. So be careful and cautious while filing bankruptcy and after it is a comfortable situation, you loose credibility with debtors and your credit rating as well. So always, take wise decision after fully realizing what is good for you. If you have any other option to fulfill your debt commitment that should be pursued first and this option should be availed last of all when there is no other way out. Always keep in mind while filing bankruptcy that you have through very complex court procedures full of hassles seriously damaging your social standing and reputation as an honorable citizen.
California bankruptcy, Michigan bankruptcy laws are somewhat similar to Florida bankruptcy laws with minor variations in exemptions limit depending upon the average income of people, their spending habits, economic level, percentage of cases filed under different chapters of bankruptcy code by people residing in these cities, otherwise by and large the laws are same as governed by federal court.
Debtips is a resourceful channel to make you finance literate and manage your personal finances. Bankruptcy is an unfortunate situation and can happen even to seasoned businessman or to a new entrepreneur. In US Bankruptcy is dealt under uniform federal laws and fall under chapter 7, 9, 11, 12, 13 of bankruptcy code. Florida Bankruptcy cases are generally dealt by courts under chapter 7 and 13.
Article Source: http://EzineArticles.com/?expert=James_Arther
It is always better to seek counseling from lawyers when you in case unfortunately fall into a financial trap and are unable to repay your loan liabilities. Under the there are many ways you can avail to get protection and relief. In certain case if you don't have regular income due to unemployment or serious sickness or in some other similar situation, Florida bankruptcy laws do have provision to deal with such genuine cases with protection and can allow a person to be absolved from paying part or full debt liability. In Florida, most of the people file bankruptcy under chapter 7 and of bankruptcy code. However, majority file under chapter 7.But on has to furnish documentary proof that he has no assets to repay.
Moreover, filing under chapter 7 cannot seek relief in future under chapter 7 again for next six years. In fact filing bankruptcy under any chapter is not a panacea from falling into debts in future unless you reform and learn from your past follies and manage your finances viz-a-viz your income more efficiently and carefully.
Otherwise, there is always a chance you may fall into a more serious debt trap with no point of return. So be careful and cautious while filing bankruptcy and after it is a comfortable situation, you loose credibility with debtors and your credit rating as well. So always, take wise decision after fully realizing what is good for you. If you have any other option to fulfill your debt commitment that should be pursued first and this option should be availed last of all when there is no other way out. Always keep in mind while filing bankruptcy that you have through very complex court procedures full of hassles seriously damaging your social standing and reputation as an honorable citizen.
California bankruptcy, Michigan bankruptcy laws are somewhat similar to Florida bankruptcy laws with minor variations in exemptions limit depending upon the average income of people, their spending habits, economic level, percentage of cases filed under different chapters of bankruptcy code by people residing in these cities, otherwise by and large the laws are same as governed by federal court.
Debtips is a resourceful channel to make you finance literate and manage your personal finances. Bankruptcy is an unfortunate situation and can happen even to seasoned businessman or to a new entrepreneur. In US Bankruptcy is dealt under uniform federal laws and fall under chapter 7, 9, 11, 12, 13 of bankruptcy code. Florida Bankruptcy cases are generally dealt by courts under chapter 7 and 13.
Article Source: http://EzineArticles.com/?expert=James_Arther
Personal Bankruptcy Laws
Individuals can file for personal bankruptcy as a last ditch effort when their credit reaches the limit. This helps them clear out a few debts by selling their assets and starting a whole new life without creditors beating at their door. The gives them an opportunity to start afresh without credit worries since creditors have no more right to press collection charges.
Presently, individuals can file for bankruptcy under Chapter 7 or Chapter 13. Chapter 7 involves liquidating all the assets to pay off the creditors. Chapter 13 involves registering a plan to pay of the creditors from the monthly wages of the debtor within a specified amount of time. However, new laws passed by the President in 2005 might make the options for filing the case under Chapter 7 a bit more narrow and might force most individuals to file a bankruptcy case under Chapter 13 instead.
Chapter 13 requires the individuals to provide proof of income, as the whole law is based on the individual’s steady income. If the debtor fails to pay the monthly credit amount, the case might be dismissed from the court and will require the individual to file for bankruptcy all over again.
When an individual files for bankruptcy, it does provide him with a fresh start, but the credit bureaus keep records of the bankruptcy details and this might affect the debtor's credit rating for the next 10 years. However, some banks currently offer a new kind of credit card that requires some initial security payment that will help build up the credit rating so that things are almost normal by two to three years.
The new law also requires the individual to take up credit counseling at least six months before filing for bankruptcy, which means the individual has to go through a licensed lawyer to file the case.
Bankruptcy provides detailed information about bankruptcy, bankruptcy attorneys, bankruptcy faqs, and more. Bankruptcy is affiliated with New Bankruptcy Laws.
Article Source: http://EzineArticles.com/?expert=Eddie_Tobey
Presently, individuals can file for bankruptcy under Chapter 7 or Chapter 13. Chapter 7 involves liquidating all the assets to pay off the creditors. Chapter 13 involves registering a plan to pay of the creditors from the monthly wages of the debtor within a specified amount of time. However, new laws passed by the President in 2005 might make the options for filing the case under Chapter 7 a bit more narrow and might force most individuals to file a bankruptcy case under Chapter 13 instead.
Chapter 13 requires the individuals to provide proof of income, as the whole law is based on the individual’s steady income. If the debtor fails to pay the monthly credit amount, the case might be dismissed from the court and will require the individual to file for bankruptcy all over again.
When an individual files for bankruptcy, it does provide him with a fresh start, but the credit bureaus keep records of the bankruptcy details and this might affect the debtor's credit rating for the next 10 years. However, some banks currently offer a new kind of credit card that requires some initial security payment that will help build up the credit rating so that things are almost normal by two to three years.
The new law also requires the individual to take up credit counseling at least six months before filing for bankruptcy, which means the individual has to go through a licensed lawyer to file the case.
Bankruptcy provides detailed information about bankruptcy, bankruptcy attorneys, bankruptcy faqs, and more. Bankruptcy is affiliated with New Bankruptcy Laws.
Article Source: http://EzineArticles.com/?expert=Eddie_Tobey
Valid Reasons To Consider Filing Bankruptcy
Nobody wants or plans to file bankruptcy, especially with the recent drastic changes in the bankruptcy law which makes it more difficult or even impossible for people in certain situations to even consider it. Bankruptcy is a personal thing and is also often a very emotional thing, so it is not something to enter into without a very thorough examination of your bankruptcy options and alternatives.
Consumers who find themselves in the undesirable situation of having a mountain of debt may be considering filing bankruptcy. This is not something that is a personal reflection on the person, since more often than not, this is not a sign of any type of financial mismanagement, but is more typically found to be something that was completely out of the control of the consumer, such as a job layoff when it was not expected, unexpected high medical or hospitalization bills that were not covered by one's health insurance, a hotly contested divorce situation, or many more reasons too numerous to list here.
Although many times consumers feel that bankruptcy is a sign of weakness or a sign of defeat, many times it is the most viable option available under the circumstances. Thousands of people file every year, even though the bankruptcy laws have changed in recent years, making it much more difficult to file than it used to be. Bankruptcy can also be personally embarrassing, although it should not be.
It is interesting to note that approximately 30% of consumers filing for bankruptcy are doing so because of a divorce situation. Especially for women, even though more women work outside the home these days than ever before, many women after a divorce find themselves with more bills to pay off than their income allows. In a divorce situation, the marital debt is equally divided between the spouses. Most of the time, that debt is on credit cards that carry a high interest rate, and missing only a few payments on that, combined with the late fees assessed, can create a mountain of overdue debt that seems insurmountable.
In the case of some type of major or catastrophic event such as a major surgery or hospitalization, especially when such medical costs are not covered or have exceeded the limits of one's health insurance, this can leave one with huge bills and no real hope of ever getting them paid off. For a major medical procedure, the costs can exceed $100,000 before you know it as well as much higher, and even at low or no interest assessed, this is something that will cause many people to consider bankruptcy to resolve.
Another common reason for filing bankruptcy is young people who get in over their financial heads with credit cards and student loans while they are in college. This is borne out by the fact that about 10% of people filing are under age 25. In this situation, it is important to note that while bankruptcy could provide relief for the credit card debt, federal student loans are exempt from being discharged by bankruptcy, so often this does not help these people.
You want to make sure you understand bankruptcy law as good and thoroughly as possible. The laws have changed drastically and filing is no longer a "do it yourself" project. The money you spend on a qualified lawyer can pay you back in spades by not making the bankruptcy more painful than it needs to be, as well as offering advice as to alternatives that you may not have considered that would be far less painful.
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
Consumers who find themselves in the undesirable situation of having a mountain of debt may be considering filing bankruptcy. This is not something that is a personal reflection on the person, since more often than not, this is not a sign of any type of financial mismanagement, but is more typically found to be something that was completely out of the control of the consumer, such as a job layoff when it was not expected, unexpected high medical or hospitalization bills that were not covered by one's health insurance, a hotly contested divorce situation, or many more reasons too numerous to list here.
Although many times consumers feel that bankruptcy is a sign of weakness or a sign of defeat, many times it is the most viable option available under the circumstances. Thousands of people file every year, even though the bankruptcy laws have changed in recent years, making it much more difficult to file than it used to be. Bankruptcy can also be personally embarrassing, although it should not be.
It is interesting to note that approximately 30% of consumers filing for bankruptcy are doing so because of a divorce situation. Especially for women, even though more women work outside the home these days than ever before, many women after a divorce find themselves with more bills to pay off than their income allows. In a divorce situation, the marital debt is equally divided between the spouses. Most of the time, that debt is on credit cards that carry a high interest rate, and missing only a few payments on that, combined with the late fees assessed, can create a mountain of overdue debt that seems insurmountable.
In the case of some type of major or catastrophic event such as a major surgery or hospitalization, especially when such medical costs are not covered or have exceeded the limits of one's health insurance, this can leave one with huge bills and no real hope of ever getting them paid off. For a major medical procedure, the costs can exceed $100,000 before you know it as well as much higher, and even at low or no interest assessed, this is something that will cause many people to consider bankruptcy to resolve.
Another common reason for filing bankruptcy is young people who get in over their financial heads with credit cards and student loans while they are in college. This is borne out by the fact that about 10% of people filing are under age 25. In this situation, it is important to note that while bankruptcy could provide relief for the credit card debt, federal student loans are exempt from being discharged by bankruptcy, so often this does not help these people.
You want to make sure you understand bankruptcy law as good and thoroughly as possible. The laws have changed drastically and filing is no longer a "do it yourself" project. The money you spend on a qualified lawyer can pay you back in spades by not making the bankruptcy more painful than it needs to be, as well as offering advice as to alternatives that you may not have considered that would be far less painful.
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
Stopping Foreclosure NOW - Chapter 13 Bankruptcy
Foreclosure proceedings can be stopped instantly by filing for Chapter 13 bankruptcy, the home saver, but there are the following dangers, including losing your home to con artists as well as to your creditors.
The nightmare of foreclosure is the dark side of the American Dream. The recent past provided people who had long been shut out of home ownership the opportunity to fulfill that dream. It was done through a combination of rising home prices, low mortgage rates and fancy financing know as subprime. Everyone wanted to be invited to the party and the subprime lenders made sure that as many as possible were included.
In my previous article, To Avoid Foreclosure, I discussed all of the standard ways recommended by HUD, mortgage lenders and financial advisors, on how to stop or avoid foreclosure. This article explores stopping foreclosure by filing for Chapter 13 bankruptcy.
Bankruptcy - BEWARE - Possible Hazards Ahead
This sure-fire method of stopping foreclosure dead in its tracks is being touted far and wide as the way people near or over the edge of foreclosure can stop foreclosure quickly. The stopping foreclosure part quickly is true. What is not being told to people in this desperate situation is that stopping foreclosure by declaring bankruptcy may save only a fraction of the equity in their homes or worse.
The worse is that scam artists are using the come on of stopping foreclosure by filing for bankruptcy to steal the equity.
Here is how they do it:
These scammers convince homeowners who are in trouble to file for Chapter 13 bankruptcy. They tell the homeowner that this filing is only for stopping the foreclosure proceeding. This is the nugget of truth in the mine that has been salted with false hope.
Then the scammers convince the homeowner to sign over the home to them and rent it back, "until they can get back on their feet."
This is the danger zone, because if the homeowner has not been able to make their payments to the mortgage lender, how are they going to be able to make the rent payments to the scammer?
"Magically" the house ends up being owned by the scammer and the homeowner, who thought he was in trouble before, now has been thrown into a deeper hole.
Stopping foreclosure by declaring bankruptcy can be legitimate. Chapter 13, really called the wage earner's plan is nicknamed "the home saver," because filing for it stops foreclosure proceedings and allows the homeowner to stay in her or his home.
Here is how Chapter 13 works to stop foreclosure:
A working person who has unsecured debts of less than $307,675 and secured debts less than $922,975, is eligible to file for relief.
The filing, in the Bankruptcy Court where the filer resides, has to include information about income and expenditures as well as assets and debts. This information has to be detailed and supported with tax returns. The filer also has to file a certificate showing he or she has received credit counseling. There are fees totaling $274.00 for filing which can be paid in four installments.
As soon as the petition is filed, the foreclosure proceeding is automatically stayed. This is not stopping foreclosure forever. It only stays the foreclosure, allowing a "reasonable" time for the homeowner to bring his or her past-due payments current.
Then there are meetings in court and the filer has to provide a payment plan. This plan must provide for full repayment of the debts over a period of three or five years. (If the filer's income is below his/her state median, the period is three years. If it is above the state median income, then the five year period applies.)
Stopping foreclosure by filing for Chapter 13 bankruptcy can save your home if you are working and can make all of your payments according to the "plan." If you fall behind, however, the foreclosure will probably be restarted.
Article Source: http://EzineArticles.com/?expert=Steven_Shanin
The nightmare of foreclosure is the dark side of the American Dream. The recent past provided people who had long been shut out of home ownership the opportunity to fulfill that dream. It was done through a combination of rising home prices, low mortgage rates and fancy financing know as subprime. Everyone wanted to be invited to the party and the subprime lenders made sure that as many as possible were included.
In my previous article, To Avoid Foreclosure, I discussed all of the standard ways recommended by HUD, mortgage lenders and financial advisors, on how to stop or avoid foreclosure. This article explores stopping foreclosure by filing for Chapter 13 bankruptcy.
Bankruptcy - BEWARE - Possible Hazards Ahead
This sure-fire method of stopping foreclosure dead in its tracks is being touted far and wide as the way people near or over the edge of foreclosure can stop foreclosure quickly. The stopping foreclosure part quickly is true. What is not being told to people in this desperate situation is that stopping foreclosure by declaring bankruptcy may save only a fraction of the equity in their homes or worse.
The worse is that scam artists are using the come on of stopping foreclosure by filing for bankruptcy to steal the equity.
Here is how they do it:
These scammers convince homeowners who are in trouble to file for Chapter 13 bankruptcy. They tell the homeowner that this filing is only for stopping the foreclosure proceeding. This is the nugget of truth in the mine that has been salted with false hope.
Then the scammers convince the homeowner to sign over the home to them and rent it back, "until they can get back on their feet."
This is the danger zone, because if the homeowner has not been able to make their payments to the mortgage lender, how are they going to be able to make the rent payments to the scammer?
"Magically" the house ends up being owned by the scammer and the homeowner, who thought he was in trouble before, now has been thrown into a deeper hole.
Stopping foreclosure by declaring bankruptcy can be legitimate. Chapter 13, really called the wage earner's plan is nicknamed "the home saver," because filing for it stops foreclosure proceedings and allows the homeowner to stay in her or his home.
Here is how Chapter 13 works to stop foreclosure:
A working person who has unsecured debts of less than $307,675 and secured debts less than $922,975, is eligible to file for relief.
The filing, in the Bankruptcy Court where the filer resides, has to include information about income and expenditures as well as assets and debts. This information has to be detailed and supported with tax returns. The filer also has to file a certificate showing he or she has received credit counseling. There are fees totaling $274.00 for filing which can be paid in four installments.
As soon as the petition is filed, the foreclosure proceeding is automatically stayed. This is not stopping foreclosure forever. It only stays the foreclosure, allowing a "reasonable" time for the homeowner to bring his or her past-due payments current.
Then there are meetings in court and the filer has to provide a payment plan. This plan must provide for full repayment of the debts over a period of three or five years. (If the filer's income is below his/her state median, the period is three years. If it is above the state median income, then the five year period applies.)
Stopping foreclosure by filing for Chapter 13 bankruptcy can save your home if you are working and can make all of your payments according to the "plan." If you fall behind, however, the foreclosure will probably be restarted.
Article Source: http://EzineArticles.com/?expert=Steven_Shanin
Bankruptcy Credit Report - You Questions Answered
Bankruptcy Credit Report - You want to avoid bankruptcy at all costs - not only will you be left high and dry financially it will also take a devastating toll on your Credit Report, translating in a 7 to 10 year time period to get back on your feet. Exactly what damage will my Credit Report take and what are my options?
How long will it take to really get back to a secure financial position? Well that depends on quite a few factors so lets go through each one and try and match your situation. Firstly, when you file for bankruptcy (chapter 7 and NOT 13) all you debts get eradicated and you money owed to creditors get taken to zero. It's important to no that not ALL your debts will be completely erased - only those debts to Creditors. You will still have to pay money for things such as: student loans; criminal fines and penalties, forfeitures, taxes, debts arising out of willful misconduct and or malicious misconduct by the debtor, even spousal and child support, liability for injury or death from driving intoxicated, and non-dischargeable debts from a prior bankruptcy. You also need to note that when assets are being sold that there are certain assets that are non-exempt. This includes property such as: A second home - like a holiday home, Family heirlooms, a second car or truck, expensive musical instruments, collections such as stamps and coins, all investments such as cash, stocks, bonds, and bank accounts.
It's interesting to note that you might be able to get a loan shortly after you file for bankruptcy, because of the simple reason that now you've filed for bankruptcy then all your debts are returned to zero. So when you approach creditors they will have a look at your Bankruptcy Credit Report and note that now you have a very low debt. But it's not quite as simple as that you still need to show a solid and steady income stream and you need to have opened a few accounts, maybe some credit cards account and have built up a repayment history - showing that you can pay back creditors and debts. It's quite logical to see that if you start building up multiply bankruptcies then you will find it extremely difficult to get future loans - so don't get into a habit of filing for bankruptcy.
What are the alternatives to filing for bankruptcy? First make sure you visit experts that will look at ways to get out of having to file for bankruptcy - these include Consumer Credit Counselor (CCC), if you prove to your creditors that you are seeking help form these professional they will in most cases stop debt collection actions giving you a temporary reprieve form the pressure of having to make payments that you see no way of making. Look at your debt and work out what expenses you can live without - remember that your accommodation and transport are the most essential items so try and cut other expenses first.
To find out more about Credit Reports be sure to check out www.credit-reporter.net
How long will it take to really get back to a secure financial position? Well that depends on quite a few factors so lets go through each one and try and match your situation. Firstly, when you file for bankruptcy (chapter 7 and NOT 13) all you debts get eradicated and you money owed to creditors get taken to zero. It's important to no that not ALL your debts will be completely erased - only those debts to Creditors. You will still have to pay money for things such as: student loans; criminal fines and penalties, forfeitures, taxes, debts arising out of willful misconduct and or malicious misconduct by the debtor, even spousal and child support, liability for injury or death from driving intoxicated, and non-dischargeable debts from a prior bankruptcy. You also need to note that when assets are being sold that there are certain assets that are non-exempt. This includes property such as: A second home - like a holiday home, Family heirlooms, a second car or truck, expensive musical instruments, collections such as stamps and coins, all investments such as cash, stocks, bonds, and bank accounts.
It's interesting to note that you might be able to get a loan shortly after you file for bankruptcy, because of the simple reason that now you've filed for bankruptcy then all your debts are returned to zero. So when you approach creditors they will have a look at your Bankruptcy Credit Report and note that now you have a very low debt. But it's not quite as simple as that you still need to show a solid and steady income stream and you need to have opened a few accounts, maybe some credit cards account and have built up a repayment history - showing that you can pay back creditors and debts. It's quite logical to see that if you start building up multiply bankruptcies then you will find it extremely difficult to get future loans - so don't get into a habit of filing for bankruptcy.
What are the alternatives to filing for bankruptcy? First make sure you visit experts that will look at ways to get out of having to file for bankruptcy - these include Consumer Credit Counselor (CCC), if you prove to your creditors that you are seeking help form these professional they will in most cases stop debt collection actions giving you a temporary reprieve form the pressure of having to make payments that you see no way of making. Look at your debt and work out what expenses you can live without - remember that your accommodation and transport are the most essential items so try and cut other expenses first.
To find out more about Credit Reports be sure to check out www.credit-reporter.net
Article Source: http://EzineArticles.com/?expert=Justin_Fox
Wednesday, November 14, 2007
Is Bankruptcy Right for Me
There are many ways in which bankruptcy can be right for you, and many issues that can lead you on this path. Bankruptcy can wipe your slate clean, either through straight bankruptcy or a reorganization of your debts.
If your home is risking foreclosure, bankruptcy can stop this from happening and put a payment structure in place for you to pay off your arrears. Bankruptcy can get your car or other property returned to you if it has been repossessed by a creditor. Large medical bills, either on their own or combined with a loss of employment, can create a nearly impossible situation to climb out of. Bankruptcy can help you out of this and possibly reduce or wipe away your medical bills.
Bankruptcy can stop creditors from harassing you, especially if they are pushing the boundaries of decent behavior. It can prevent your utilities from being shut off or restore them if they are already off. Although your student loans will not be eliminated, bankruptcy can help consolidate these debts and allow you to pay them off in a reasonable manner. It will end wage garnishment, allowing you to purchase life’s necessities, and help you challenge fraudulent creditors who are trying to take more than you owe.
Many of these issues can overlap in your particular situation and bankruptcy may be the right way to re-start your financial life with a clean slate.
http://www.refresharticles.com/articles/bankruptcy/Is%20bankruptcy%20right%20for%20me.txt
If your home is risking foreclosure, bankruptcy can stop this from happening and put a payment structure in place for you to pay off your arrears. Bankruptcy can get your car or other property returned to you if it has been repossessed by a creditor. Large medical bills, either on their own or combined with a loss of employment, can create a nearly impossible situation to climb out of. Bankruptcy can help you out of this and possibly reduce or wipe away your medical bills.
Bankruptcy can stop creditors from harassing you, especially if they are pushing the boundaries of decent behavior. It can prevent your utilities from being shut off or restore them if they are already off. Although your student loans will not be eliminated, bankruptcy can help consolidate these debts and allow you to pay them off in a reasonable manner. It will end wage garnishment, allowing you to purchase life’s necessities, and help you challenge fraudulent creditors who are trying to take more than you owe.
Many of these issues can overlap in your particular situation and bankruptcy may be the right way to re-start your financial life with a clean slate.
http://www.refresharticles.com/articles/bankruptcy/Is%20bankruptcy%20right%20for%20me.txt
Getting Loans after Bankruptcy
There are many things that are challenging to succeed at in this world, and finding approval for loans after bankruptcy can be one of the hardest. Bankruptcy is something that is going to stay on your credit report for as long as ten years, which makes it a very difficult stain on your credit rating to dig out from underneath. However, there are some steps that you can take to increase your odds of applying for and being accepted for loans after bankruptcy.
Important Factors to Remember when Applying for Loans
Remember that when it comes to loans after bankruptcy, you are going to be dealing with bankers one on one. A lot of the bigger banks have mathematical equations that they use to decide whether or not you are going to be able to get loans after bankruptcy, but some of the smaller banks are still willing to sit down and talk to you. If you have gone through bankruptcy in the past, but are ready to put your credit history back on sound footing, your best chance to get loans after bankruptcy is to sit down with the people who make the decisions and talk to them.
You should be prepared to discuss your bankruptcy and the reasons behind it openly and honestly, and what steps are in place to ensure that it won’t happen to you again. If you are able to convince the bank manager that you can be trusted, and you have the right documentation to show him that will support your statements, there is a good chance that you are going to be able to get loans after bankruptcy.
An important part of getting loans after bankruptcy includes having collateral in your name that you can put up against a loan. If you have just gone through bankruptcy, there is going to be a chance that your assets have shrunk considerably. If this is the case, the first step to reestablishing credit will be to regain some of those assets in your own name. This process may take some time and patience on your part, and you might be surprised at how hard you have to work hard to rebuild your credit, but rest assured that it is something that can be done quite. Building back your positive credit rating and your asset base is a great way to become eligible for loans after bankruptcy. If you are successful in finding someone to give you loans after bankruptcy, you will be on the road to a positive credit rating and a sound financial picture once again.
http://www.refresharticles.com/articles/bankruptcy/loans%20after%20bankruptcy.TXT
Important Factors to Remember when Applying for Loans
Remember that when it comes to loans after bankruptcy, you are going to be dealing with bankers one on one. A lot of the bigger banks have mathematical equations that they use to decide whether or not you are going to be able to get loans after bankruptcy, but some of the smaller banks are still willing to sit down and talk to you. If you have gone through bankruptcy in the past, but are ready to put your credit history back on sound footing, your best chance to get loans after bankruptcy is to sit down with the people who make the decisions and talk to them.
You should be prepared to discuss your bankruptcy and the reasons behind it openly and honestly, and what steps are in place to ensure that it won’t happen to you again. If you are able to convince the bank manager that you can be trusted, and you have the right documentation to show him that will support your statements, there is a good chance that you are going to be able to get loans after bankruptcy.
An important part of getting loans after bankruptcy includes having collateral in your name that you can put up against a loan. If you have just gone through bankruptcy, there is going to be a chance that your assets have shrunk considerably. If this is the case, the first step to reestablishing credit will be to regain some of those assets in your own name. This process may take some time and patience on your part, and you might be surprised at how hard you have to work hard to rebuild your credit, but rest assured that it is something that can be done quite. Building back your positive credit rating and your asset base is a great way to become eligible for loans after bankruptcy. If you are successful in finding someone to give you loans after bankruptcy, you will be on the road to a positive credit rating and a sound financial picture once again.
http://www.refresharticles.com/articles/bankruptcy/loans%20after%20bankruptcy.TXT
The Difficulty in Medical Bankruptcy
As the world becomes more and more unhealthy, medical bankruptcy becomes more likely as people fight to cure various diseases and ailments associated with their lifestyle. Unforeseen medical bills can also wreak havoc on individuals that are unable to work while they are seriously ill. This may also be the case for individuals who have health insurance. Medical bankruptcy may be treated with a bit more sympathy by some courts, depending on the situation of the individual.
Examples of Groups Filing for Medical Bankruptcy
People who are 65 and over are more likely to suffer from medical bankruptcy than younger and healthier age groups. It goes without saying that the body becomes more prone to illness the older that we get. This makes it inevitable that as we get older and can longer work to pay the bills, we may be faced with medical bankruptcy in the case of a serious illness, if we have not taken preventative measures prior to the diagnosis.
Another group which is likely to file for medical bankruptcy is that of young single mothers. If their spouses have abandoned them and their children, and do not pay any child support, the mother will be left to pay these high expenses by herself. It is a difficult situation for any parent who has a sick child to care for, and if it is the parent who is sick herself then there will be no one to earn the money to pay the bills.
Low wage earners are another group that may find themselves filing for medical bankruptcy. At times it may be difficult to find jobs that can support all of a family’s needs, so finding the money for unexpected medical bills can be a nearly impossible task for this group. Poor education and lack of practical skills can be attributing factors to this problem, and will require further investigation when the time arises.
Some people will file for medical bankruptcy simply because the medical systems are not willing to work out any payment schedules for them to repay their debts. Cases such as these have risen steadily over the years, and are now quite a common occurrence in bankruptcy courts around the country. Since many folks do not have large amounts of money readily available to pay mounting hospital costs, the only choice for some is to declare medical bankruptcy.
If you fall into any of these categories, you may find the claiming medical bankruptcy is the best choice for you to get out from under the weight of your bills. This bankruptcy is normally seen in a more sympathetic light than others by the courts and lenders, since the circumstances are generally unforeseen and unavoidable.
http://www.refresharticles.com/articles/bankruptcy/medical_bankruptcy.TXT
Examples of Groups Filing for Medical Bankruptcy
People who are 65 and over are more likely to suffer from medical bankruptcy than younger and healthier age groups. It goes without saying that the body becomes more prone to illness the older that we get. This makes it inevitable that as we get older and can longer work to pay the bills, we may be faced with medical bankruptcy in the case of a serious illness, if we have not taken preventative measures prior to the diagnosis.
Another group which is likely to file for medical bankruptcy is that of young single mothers. If their spouses have abandoned them and their children, and do not pay any child support, the mother will be left to pay these high expenses by herself. It is a difficult situation for any parent who has a sick child to care for, and if it is the parent who is sick herself then there will be no one to earn the money to pay the bills.
Low wage earners are another group that may find themselves filing for medical bankruptcy. At times it may be difficult to find jobs that can support all of a family’s needs, so finding the money for unexpected medical bills can be a nearly impossible task for this group. Poor education and lack of practical skills can be attributing factors to this problem, and will require further investigation when the time arises.
Some people will file for medical bankruptcy simply because the medical systems are not willing to work out any payment schedules for them to repay their debts. Cases such as these have risen steadily over the years, and are now quite a common occurrence in bankruptcy courts around the country. Since many folks do not have large amounts of money readily available to pay mounting hospital costs, the only choice for some is to declare medical bankruptcy.
If you fall into any of these categories, you may find the claiming medical bankruptcy is the best choice for you to get out from under the weight of your bills. This bankruptcy is normally seen in a more sympathetic light than others by the courts and lenders, since the circumstances are generally unforeseen and unavoidable.
http://www.refresharticles.com/articles/bankruptcy/medical_bankruptcy.TXT
Mortgages and Bankruptcy: A Few Simple Steps
Most often a person will only file bankruptcy after having exhausted all other options. However, there are certain key reasons that will affect individuals and cause them to file for bankruptcy, which include high debts as well as long non-payment history. Keep in mind that it is a lot harder to get a loan after bankruptcy has been filed, which can affect your ability to purchase a much needed house or car during the ten years after the filing, when the bankruptcy can appear on your credit history.
Stay Positive and do not get Rattled
Mortgages and bankruptcy need not be an insurmountable problem, because there are methods for working through these obstacles. Making an appointment with a credit counselor that provides assistance in getting a mortgage after bankruptcy is a good option. Getting a mortgage after bankruptcy is possible if the person has a positive outlook, and plenty of persistence and patience.
Mortgages and bankruptcy are not conditions that mutually exclude one another, since a bankruptcy on the credit history can affect your ability to get a mortgage loan. One way around this is to provide your prospective lender with a letter of explanation regarding the circumstances of your bankruptcy. Even though the interest rates are higher, lenders do take the initiative in making it easier to obtain a mortgage after bankruptcy. They may consider the debtor’s repayment history, or the circumstances regarding the bankruptcy. For example, a sudden and severe health issue that contributed to the financial problems might make it easier to get a mortgage after bankruptcy. Getting expert advice from an attorney regarding mortgage and bankruptcy is recommended, as well as selecting the right mortgage provider that will be willing to work with your individual situation.
With online communications and electronic commerce, it has become much simpler to research and find available financial options regarding mortgage and bankruptcy. With e-mails and toll-free numbers, a debtor can get the facts pertaining to mortgage and bankruptcy, and customer care executives will always have the latest information. Most credit counselors will enjoy good relations with mortgage providers and will be of help under such circumstances.
In the final analysis, bankruptcy is no doubt devastating to personal finances; however, one can still get back on track since bankruptcy does not last forever and rebuilding credit should go a long way in getting a mortgage even after bankruptcy. The debtor should work to rebuild his credit rating, prepare the mortgage application and comparison shop for the best mortgage loan. Mortgage and bankruptcy can easily be overcome with these simple steps.
http://www.refresharticles.com/articles/bankruptcy/mortgages_and_bankruptcy.TXT
Stay Positive and do not get Rattled
Mortgages and bankruptcy need not be an insurmountable problem, because there are methods for working through these obstacles. Making an appointment with a credit counselor that provides assistance in getting a mortgage after bankruptcy is a good option. Getting a mortgage after bankruptcy is possible if the person has a positive outlook, and plenty of persistence and patience.
Mortgages and bankruptcy are not conditions that mutually exclude one another, since a bankruptcy on the credit history can affect your ability to get a mortgage loan. One way around this is to provide your prospective lender with a letter of explanation regarding the circumstances of your bankruptcy. Even though the interest rates are higher, lenders do take the initiative in making it easier to obtain a mortgage after bankruptcy. They may consider the debtor’s repayment history, or the circumstances regarding the bankruptcy. For example, a sudden and severe health issue that contributed to the financial problems might make it easier to get a mortgage after bankruptcy. Getting expert advice from an attorney regarding mortgage and bankruptcy is recommended, as well as selecting the right mortgage provider that will be willing to work with your individual situation.
With online communications and electronic commerce, it has become much simpler to research and find available financial options regarding mortgage and bankruptcy. With e-mails and toll-free numbers, a debtor can get the facts pertaining to mortgage and bankruptcy, and customer care executives will always have the latest information. Most credit counselors will enjoy good relations with mortgage providers and will be of help under such circumstances.
In the final analysis, bankruptcy is no doubt devastating to personal finances; however, one can still get back on track since bankruptcy does not last forever and rebuilding credit should go a long way in getting a mortgage even after bankruptcy. The debtor should work to rebuild his credit rating, prepare the mortgage application and comparison shop for the best mortgage loan. Mortgage and bankruptcy can easily be overcome with these simple steps.
http://www.refresharticles.com/articles/bankruptcy/mortgages_and_bankruptcy.TXT
Understanding New Bankruptcy Laws
New bankruptcy laws are always being proposed in order to protect both people and creditors. Most proposals usually die in committee before ever being voted on by the full congress. Recently however, there have been some new laws that have sided with the creditors.
Understanding new bankruptcy laws is something that the average person might not be able to do. For the best and most accurate information available, a bankruptcy attorney should be sought out. They have the most accurate knowledge of current laws and a great understanding of laws being considered.
Most people cannot even begin to understand all of the new bankruptcy laws because they are extremely complicated. It’s really amazing that the attorneys can keep up with all of it. As the laws change, they become more and more complicated. Part of the problem is that many who make the laws are attorneys themselves.
They try to enact new laws without any loopholes. The new laws become so confusing because of the verbiage used to prevent individuals from taking advantage of bankruptcy laws. There are many sources available to people on the internet that try to make the law easier to understand. The only problem with this is that the information provided on the internet might not be completely correct.
New Bankruptcy Laws and The Public
Lately there have been new bankruptcy laws that have been passed to protect creditors from being taken advantage of. There is now more of a burden being placed on the people who are filing bankruptcy. No longer can people file bankruptcy as a convenient way out of not paying ones bills.
The new bankruptcy laws make it more difficult to cheat the system. There will always be people who need the coverage that bankruptcy delivers. When bankruptcy is needed for people in trouble, nothing has changed to make it harder. With that being said, people must show the need for bankruptcy by opening up for review the people’s finances.
If people are in real need of bankruptcy protection then there is nothing to worry about. What this does is slow down or stop others who might otherwise try to take advantage of their situation. Lastly, if people begin to think that they are heading towards bankruptcy, they should contact there attorney to see what can be done without filing. The attorney can determine if the people can avert bankruptcy or not.
http://www.refresharticles.com/articles/bankruptcy/new_bankruptcy_laws.TXT
Understanding new bankruptcy laws is something that the average person might not be able to do. For the best and most accurate information available, a bankruptcy attorney should be sought out. They have the most accurate knowledge of current laws and a great understanding of laws being considered.
Most people cannot even begin to understand all of the new bankruptcy laws because they are extremely complicated. It’s really amazing that the attorneys can keep up with all of it. As the laws change, they become more and more complicated. Part of the problem is that many who make the laws are attorneys themselves.
They try to enact new laws without any loopholes. The new laws become so confusing because of the verbiage used to prevent individuals from taking advantage of bankruptcy laws. There are many sources available to people on the internet that try to make the law easier to understand. The only problem with this is that the information provided on the internet might not be completely correct.
New Bankruptcy Laws and The Public
Lately there have been new bankruptcy laws that have been passed to protect creditors from being taken advantage of. There is now more of a burden being placed on the people who are filing bankruptcy. No longer can people file bankruptcy as a convenient way out of not paying ones bills.
The new bankruptcy laws make it more difficult to cheat the system. There will always be people who need the coverage that bankruptcy delivers. When bankruptcy is needed for people in trouble, nothing has changed to make it harder. With that being said, people must show the need for bankruptcy by opening up for review the people’s finances.
If people are in real need of bankruptcy protection then there is nothing to worry about. What this does is slow down or stop others who might otherwise try to take advantage of their situation. Lastly, if people begin to think that they are heading towards bankruptcy, they should contact there attorney to see what can be done without filing. The attorney can determine if the people can avert bankruptcy or not.
http://www.refresharticles.com/articles/bankruptcy/new_bankruptcy_laws.TXT
Tuesday, November 13, 2007
Decision to Use a Bankruptcy Lawyer
Filing bankruptcy may be the most stressful and difficult decision you will make in your life. There are many financial stressors right now, and you may find that looking for a lawyer will only put more pressure on your pocket book. While it is true that legal fees tend to be high, the decision to use a bankruptcy lawyer is a good one, since in the long run it will probably be less expensive than not using a bankruptcy lawyer. There are many reasons why one should make the decision to use a bankruptcy lawyer than deciding to go it alone in court.
First, the recent bankruptcy laws have changed and deadlines are now stricter. If you fail to submit the correct paperwork on time, your case could be dismissed. The legalese involved in submitting documents may be difficult for the average person to understand, particularly if you are under significant stress. Making the decision to use a bankruptcy lawyer may prevent your case from being thrown out because of an error.
The decision to use a bankruptcy lawyer may not be as costly as you imagine. Obviously, bankruptcy lawyers are used to dealing with people who are suffering from financial difficulties, and it isn’t hard to find a reasonably priced bankruptcy lawyer. However, this doesn’t mean that you should find the cheapest one. Investing in a good attorney who specializes in bankruptcy cases is part of making the important decision to use a bankruptcy lawyer.
http://www.refresharticles.com/articles/bankruptcy/credit_cards_after_bankruptcy.TXT
First, the recent bankruptcy laws have changed and deadlines are now stricter. If you fail to submit the correct paperwork on time, your case could be dismissed. The legalese involved in submitting documents may be difficult for the average person to understand, particularly if you are under significant stress. Making the decision to use a bankruptcy lawyer may prevent your case from being thrown out because of an error.
The decision to use a bankruptcy lawyer may not be as costly as you imagine. Obviously, bankruptcy lawyers are used to dealing with people who are suffering from financial difficulties, and it isn’t hard to find a reasonably priced bankruptcy lawyer. However, this doesn’t mean that you should find the cheapest one. Investing in a good attorney who specializes in bankruptcy cases is part of making the important decision to use a bankruptcy lawyer.
http://www.refresharticles.com/articles/bankruptcy/credit_cards_after_bankruptcy.TXT
How to Manage Credit Cards After Bankruptcy
When people get credit cards, many think that they can purchase anything they want practically for free, that they can just “charge it on the credit card” and worry about paying it later. However, these same people often spend their paychecks recklessly on everyday items and are not able to pay their regular bills, so they now have to think of how to manage their credit cards after bankruptcy.
Monetary Caution is Needed with Credit Cards After Bankruptcy
The first thing that people should do with their credit cards after bankruptcy is evaluate how many they really should have in the first place. While some people carry many credit cards, it is a good idea not to have more than two. Thus, aside from two, people should get rid of their lesser important credit cards after bankruptcy.
Of course, before getting rid of the credit cards after bankruptcy, there is the issue of being able to actually pay them off beforehand. It all has to do with the credit that the person has at the time. For example, if the person has good credit, then the credit card company might set up some sort of a payment plan to help the person pay off their debt.
However, if the person has horrible credit (after getting a credit card, since a person needs to be pre-approved to get one in the first place) then the credit card company might treat the bankruptcy situation differently. In this case, you will need to call the customer service of each credit card company and enquire about their payment options.
When it comes to consolidating your credit cards after bankruptcy, the best way to do that is to take the credit cards that have the most money on them and pay them off little by little until there is not debt on them. Next, take the credit cards that were not used at all (if applicable) and pay them off right away. It is best to focus on the higher-debt credit cards.
Making sure that your credit cards are still usable after your bankruptcy is something that you will have to find out, as it is determined by each person’s unique situation. It is important to realize that you might need a financial planner to help get you out of debt. With the proper planning, you are sure to figure out the right ways to spend your money.
http://www.refresharticles.com/articles/bankruptcy/credit_cards_after_bankruptcy.TXT
Monetary Caution is Needed with Credit Cards After Bankruptcy
The first thing that people should do with their credit cards after bankruptcy is evaluate how many they really should have in the first place. While some people carry many credit cards, it is a good idea not to have more than two. Thus, aside from two, people should get rid of their lesser important credit cards after bankruptcy.
Of course, before getting rid of the credit cards after bankruptcy, there is the issue of being able to actually pay them off beforehand. It all has to do with the credit that the person has at the time. For example, if the person has good credit, then the credit card company might set up some sort of a payment plan to help the person pay off their debt.
However, if the person has horrible credit (after getting a credit card, since a person needs to be pre-approved to get one in the first place) then the credit card company might treat the bankruptcy situation differently. In this case, you will need to call the customer service of each credit card company and enquire about their payment options.
When it comes to consolidating your credit cards after bankruptcy, the best way to do that is to take the credit cards that have the most money on them and pay them off little by little until there is not debt on them. Next, take the credit cards that were not used at all (if applicable) and pay them off right away. It is best to focus on the higher-debt credit cards.
Making sure that your credit cards are still usable after your bankruptcy is something that you will have to find out, as it is determined by each person’s unique situation. It is important to realize that you might need a financial planner to help get you out of debt. With the proper planning, you are sure to figure out the right ways to spend your money.
http://www.refresharticles.com/articles/bankruptcy/credit_cards_after_bankruptcy.TXT
Bankruptcy: The Implications
Those with debt problems too often subscribe to groundless myths and hearsay without ever understanding the law, and therefore the implications, of bankruptcy. Therefore, those with unmanageable debt should be aware of a few key facts before filing for bankruptcy. After all, how else will they know what life will be like after declaring themselves bankrupt? Let us look briefly at a few implications of liquidation.
Despite common belief, bankruptcy will not necessarily prevent you from getting credit. In today’s competitive lending market there are many lenders who are willing to take a risk in offering credit. Of course, the limit will be lower than usual, and the interest rates may be higher than before, but applying for credit after bankruptcy need not be the wild goose chase it’s made out to be.
What about home ownership? Is it possible to get a loan or mortgage after bankruptcy? Well, many lenders have been known to approve a mortgage to bankruptcy debtors in as little as 18 months after their liquidation. Again, there are lenders who are willing to take the risk, and many are willing to look at bankruptcy as a sign of your past problems with money, not as a warning about your future.
Finally, what about your pension savings? How will they be affected by your bankruptcy? Hopefully, not at all. Most pensions and savings plans are exempt from your estate upon bankruptcy, so they can’t be liquidated to repay your debts. However, there are exceptions to this rule. Outstanding tax liens are not generally forgiven after bankruptcy, so any taxes owed may be attached to your 401K, IRA, or other savings plan. You should bear this in mind before considering bankruptcy.
In any case, the best advice is always to seek professional counsel. A dedicated financial advisor can let you know all the facts about bankruptcy, as well as its implications. Only then can you make the right decision for you.
http://www.refresharticles.com/articles/bankruptcy/Bankruptcy%20-%20The%20Implications.txt
Despite common belief, bankruptcy will not necessarily prevent you from getting credit. In today’s competitive lending market there are many lenders who are willing to take a risk in offering credit. Of course, the limit will be lower than usual, and the interest rates may be higher than before, but applying for credit after bankruptcy need not be the wild goose chase it’s made out to be.
What about home ownership? Is it possible to get a loan or mortgage after bankruptcy? Well, many lenders have been known to approve a mortgage to bankruptcy debtors in as little as 18 months after their liquidation. Again, there are lenders who are willing to take the risk, and many are willing to look at bankruptcy as a sign of your past problems with money, not as a warning about your future.
Finally, what about your pension savings? How will they be affected by your bankruptcy? Hopefully, not at all. Most pensions and savings plans are exempt from your estate upon bankruptcy, so they can’t be liquidated to repay your debts. However, there are exceptions to this rule. Outstanding tax liens are not generally forgiven after bankruptcy, so any taxes owed may be attached to your 401K, IRA, or other savings plan. You should bear this in mind before considering bankruptcy.
In any case, the best advice is always to seek professional counsel. A dedicated financial advisor can let you know all the facts about bankruptcy, as well as its implications. Only then can you make the right decision for you.
http://www.refresharticles.com/articles/bankruptcy/Bankruptcy%20-%20The%20Implications.txt
Trauma of Bankruptcy
Nobody likes to admit defeat. For some people, filing bankruptcy means just that. It means that they have failed at repaying the debts that seem to be mounting daily. The whole idea of filing bankruptcy is an ominous one that often has a negative stigma attached to it. Every year, many Americans face the trauma of bankruptcy.
The trauma of bankruptcy has many facets. First, it affects people financially. Many times, it means having to give up a vehicle or even a home that you can no longer afford. It may mean you’ll no longer be able to secure loans easily since the trauma of bankruptcy can follow you for years to come.
Along with the financial trauma of bankruptcy comes the emotional trauma of bankruptcy. For many people, bankruptcy was something they tried to avoid at all costs. They fought diligently to pay off the bills in order to avoid filing bankruptcy, and in the end were unsuccessful. The feeling of failure is something that affects a person profoundly.
If you are facing the trauma of bankruptcy, be comforted by the fact that filing bankruptcy doesn’t have to be a negative experience. For some people, it has been just the opposite. It has been a burden lifted from their shoulders as they are able to regain control of their financial obligations with a fresh new start. It means facing the future with a clean slate and no previous financial obligations. For many people, it can be a wonderful new beginning.
http://www.refresharticles.com/articles/bankruptcy/The%20Trauma%20of%20Bankruptcy.txt
The trauma of bankruptcy has many facets. First, it affects people financially. Many times, it means having to give up a vehicle or even a home that you can no longer afford. It may mean you’ll no longer be able to secure loans easily since the trauma of bankruptcy can follow you for years to come.
Along with the financial trauma of bankruptcy comes the emotional trauma of bankruptcy. For many people, bankruptcy was something they tried to avoid at all costs. They fought diligently to pay off the bills in order to avoid filing bankruptcy, and in the end were unsuccessful. The feeling of failure is something that affects a person profoundly.
If you are facing the trauma of bankruptcy, be comforted by the fact that filing bankruptcy doesn’t have to be a negative experience. For some people, it has been just the opposite. It has been a burden lifted from their shoulders as they are able to regain control of their financial obligations with a fresh new start. It means facing the future with a clean slate and no previous financial obligations. For many people, it can be a wonderful new beginning.
http://www.refresharticles.com/articles/bankruptcy/The%20Trauma%20of%20Bankruptcy.txt
Using a Bankruptcy Lawyer
Many people think they can represent themselves in court when they file for bankruptcy, rather than hiring a bankruptcy lawyer. This is a mistake many make, and it can have far-reaching consequences. A bankruptcy lawyer has specialized information that the average person lacks, and knows the details of bankruptcy law, which has changed in recent years. A small error in paperwork, for instance could lead to one’s case being dismissed. This is less likely to happen if one is using a bankruptcy lawyer than going it alone.
Some believe that they can get around problems with paperwork by hiring a paralegal rather than using a bankruptcy lawyer. This is a misconception, because paralegals charge exorbitant fees just to prepare documents, and unlike bankruptcy lawyers, they will not represent you in court. It is much better to invest the money in using a bankruptcy lawyer than hiring a paralegal who will not guide you through the process of filing bankruptcy.
When you have realized that using a bankruptcy lawyer is by far the best option when filing bankruptcy, you will have to do some research to find out which bankruptcy lawyer is for you. It is perhaps worthwhile to visit a bankruptcy court during a trial to see which lawyers you want to work with. You will want to hire a bankruptcy lawyer whose specialty is bankruptcy, since the changes to bankruptcy law are complicated. Finally, you will want someone with experience and yet, is not too busy to pay attention to your case and to take care of your needs.
http://www.refresharticles.com/articles/bankruptcy/Using%20a%20Bankruptcy%20Lawyer.txt
Some believe that they can get around problems with paperwork by hiring a paralegal rather than using a bankruptcy lawyer. This is a misconception, because paralegals charge exorbitant fees just to prepare documents, and unlike bankruptcy lawyers, they will not represent you in court. It is much better to invest the money in using a bankruptcy lawyer than hiring a paralegal who will not guide you through the process of filing bankruptcy.
When you have realized that using a bankruptcy lawyer is by far the best option when filing bankruptcy, you will have to do some research to find out which bankruptcy lawyer is for you. It is perhaps worthwhile to visit a bankruptcy court during a trial to see which lawyers you want to work with. You will want to hire a bankruptcy lawyer whose specialty is bankruptcy, since the changes to bankruptcy law are complicated. Finally, you will want someone with experience and yet, is not too busy to pay attention to your case and to take care of your needs.
http://www.refresharticles.com/articles/bankruptcy/Using%20a%20Bankruptcy%20Lawyer.txt
Monday, November 12, 2007
Reality Check Regarding Student Loan Bankruptcy
Up until 2005, there were many more options for students who decided to declare bankruptcy in order to avoid repayment of their student debt. However, borrower's bankruptcy options on student loans have been cut to very few. Changes in the Bankruptcy Code in late 1998 made most student loans non-dischargeable, which means that even if a student filed for bankruptcy, he/she would retain the loan and have to repay. This is regardless of the age of the loan unless the borrower can prove "substantial hardship".
Hardship means that repayment will create undue hardship the repayment of the loan will create an undue hardship on the debtor/borrower and his family. This is defined as the debtor cannot maintain a minimally adequate standard of living and repay the loan with proof being the conditions are such that repayment and living at the minimum standard are impossible and that this situation is unlikely to improve substantially over time. Many undue hardship cases are compared to the 1987 case argued before the U.S. Supreme of Marie BRUNNER, Appellant, v. the New York State Higher Education Services Corp., Appellee.
There are less drastic methods besides student loan bankruptcy when you run into problems financially. Aside from bankruptcy, a defaulted student loan can be rehabilitated, consolidated, stretched out or discharged if the default is because of disability. If it is not defaulted, then ask for a forbearance or deferment.
If the borrower does reach the "wage garnishment" stage, some small comfort can be taken in the fact that federal regulations limit the amount of the student/borrowers garnishment to 10% of the total amount borrowed. Before reaching that stage, other options are available including contacting various agencies who can offer information on workouts and student loan consolidation programs for loans in trouble, including a program of repayment based on income. Nolo Press and EdFund have information on student loans. Carreon & Associates provides information defaulted loans and Consumer reports provides facts on graduated payments.
While there are many reasons why student loan bankruptcy might seem a viable option, in today's world, it should be the last and not the first resort. In point of fact, the only thing that it will affect in terms of debt reduction and the student loan is that it will reduce the borrowers other debts making it easier to repay the student loan. As a result, unless there is no other option available, student loan bankruptcy is not a good way to go unless all other bills and creditors involved need to be held off. If the sole purpose of filing bankruptcy is to avoid repayment of student loan debt, it is not the correct course of action.
Article Source: http://EzineArticles.com/?expert=Rob_Hickey
Hardship means that repayment will create undue hardship the repayment of the loan will create an undue hardship on the debtor/borrower and his family. This is defined as the debtor cannot maintain a minimally adequate standard of living and repay the loan with proof being the conditions are such that repayment and living at the minimum standard are impossible and that this situation is unlikely to improve substantially over time. Many undue hardship cases are compared to the 1987 case argued before the U.S. Supreme of Marie BRUNNER, Appellant, v. the New York State Higher Education Services Corp., Appellee.
There are less drastic methods besides student loan bankruptcy when you run into problems financially. Aside from bankruptcy, a defaulted student loan can be rehabilitated, consolidated, stretched out or discharged if the default is because of disability. If it is not defaulted, then ask for a forbearance or deferment.
If the borrower does reach the "wage garnishment" stage, some small comfort can be taken in the fact that federal regulations limit the amount of the student/borrowers garnishment to 10% of the total amount borrowed. Before reaching that stage, other options are available including contacting various agencies who can offer information on workouts and student loan consolidation programs for loans in trouble, including a program of repayment based on income. Nolo Press and EdFund have information on student loans. Carreon & Associates provides information defaulted loans and Consumer reports provides facts on graduated payments.
While there are many reasons why student loan bankruptcy might seem a viable option, in today's world, it should be the last and not the first resort. In point of fact, the only thing that it will affect in terms of debt reduction and the student loan is that it will reduce the borrowers other debts making it easier to repay the student loan. As a result, unless there is no other option available, student loan bankruptcy is not a good way to go unless all other bills and creditors involved need to be held off. If the sole purpose of filing bankruptcy is to avoid repayment of student loan debt, it is not the correct course of action.
Article Source: http://EzineArticles.com/?expert=Rob_Hickey
7 Scams To Avoid When Recovering From Bankruptcy
Any bankruptcy lawyer worth his fee and weight in gold, knowledgeable and experienced in the field, application, specialty sector of the market, will tell you that the intricacies and complexities of the personal bankruptcy filing process, business bankruptcy or chapter 7 or 13 bankruptcy procedures, are nothing to tangle with lightly. It is not a welcoming, inviting world for newbies and novices, or those who are going the journey and challenges alone. Not only that, it is made more perilous by criminal elements taking advantage of fraud, scams and crime, to exploit, steal, lie and get what is not rightfully their to ask or take, by some scam or scheme.
Bankruptcy law requires a fair amount of scrutiny, scruples and wise discernment, especially during the recovery phases, when there are many unscrupulous elements and exploiters out to make a quick buck, off the misfortunes, desperation and angst of those who have faltered, fallen and could not successfully stave off or avoid bankruptcy. To them any straw or glimmer of hope seems worth embracing, even if it means taking a risk, against all odds, believing in something so ludicrous that someone in different circumstances might just see right through it, without any difficulty, but they do, can not or do not want to, do not care or have no choice and are taken advantage of, lied to, stolen from and left devastated with and by yet another setback.
Utilizing the specialty services on offer in the realms and arena of the big league bankruptcy attorney California talent-pool or bankruptcy Los Angeles specialist practitioners, might cost you some disbursements and fees down the line, when assets are liquidated, bills settled for quality and comprehensive bankruptcy services rendered and delivered. However, it will be totally worth it to protect you against some of the scams, fraudulent practices and outright misleading out there.
Do not be merely one more or another statistic, be taken advantage of, sign anything until you know and verify whom you are dealing with, what is at stake, check them with the better business bureau. If you have to and retain a qualified, licensed and experienced attorney bankruptcy law expert and insider, to handle all aspects of your filing, case and recovery, do so. You will not regret it.
Home equity loan bankruptcy candidates and prospects are especially vulnerable, as they are hooked into signing away their most prized possession and asset, their home!
Many online, fly-by-night, fronts and criminal rings tap into this ‘hidden’ market to take advantage of exploiting those desperate for a bankruptcy loan, look for financing for cars, homes and other ventures, in the post-filing bankruptcy phases and stages. (These can typically last up to 7-10 years on a credit report, affecting access and credit ratings, scores negatively. They then step in, looking like the ‘heroes that save the day, at exorbitant rates and terms, getting people to sign away their life savings, pensions, equity rights and assets, from a position of powerless, hopeless, despair and desperation, turning out to be the would-be thieves, loan-sharks and criminal wolves in sheep’s-clothing that they really are, just out to make a quick buck and take what does not legally belong to them.
One of the most common bankruptcy form offenses and misleading out there, is the purchase of a falsified, fraudulent, inaccurate, or false credit score. This is actually breaking the law and a crime that you can be prosecuted for, so avoid this practice in its entirety.
If you are an unfortunate candidate for filing bankruptcy, or you have gone through the process, protect your interests and well-being, not falling victim to identity thieves, loan sharks and unscrupulous opportunistic lenders, who want to exploit your circumstances and unfortunate fate, turn of events and slow, painstaking recovery.
In the current realty markets, with all the foreclosures, some markets are especially vulnerable, think of the seniors in Florida bankruptcy processes, at risk to lose their homes and life savings. Those after hurricane season, natural disaster left with nothing but bad debt and no options, or those with simply too much credit card debt, who opt to get representation in the sunny state from a reputable Florida bankruptcy lawyer, to handle all aspects of it, only to find that they have been sold down the river, by someone posing to be what they are not.
There are lots of money to be made in the cadres and halls of after bankruptcy recovery type markets, especially now in this downturn type economy that we are facing.
#1: There are bankruptcy car loan schemes, after bankruptcy car loan financing at exorbitant rates, that promises the world, for an arm and a leg and then some, making the real market for car loan after bankruptcy more complex than it has to be, for those recovering from bankruptcy themselves, making debt relief seem even more unrealistic than ever.
#2: There are emails and spam that enter your mailbox, (spammers), enticing you to consolidate your bills into one monthly payment without borrowing; stopping all credit harassment, foreclosures, repossessions, tax levies and garnishments; or wipe out your debts. These are then offered through the means of declaring bankruptcy, without the candidate or prospect being told that’s what it is. It is a last resort, not a quick fix strategy for everyone. Take care and be cautioned to pay special attention to all the long-term negative impact on your creditworthiness of these types of steps, filings and processes. There might also even be attorney fees that you will end up being responsible for and footing the bill. Read the fine print before signing anything and know whom you are dealing with.
# 3: Home equity, home collateral type loans are also being exploited right now in the uncertain, downturn, foreclosure, over-extended mortgage market we are in. This leads to making some extremely gullible, desperate and an open target to be taken advantage of, by criminals that approach them with ‘creative’ short-term financing, that only digs the hole of debt deeper. This results in owners losing the equity or deeds to their homes, being taken advantage, especially true and sad of those facing the challenges and obstacles so common surrounding this financial situation. No real solutions, just more heartache, debt and ruined credit, stolen identity and worse.
#4: Then there are the companies offering bankruptcy credit repair services under the guise to get your information, financial details, to ruin your credit, steal, conduct crime and leave you to sort out the mess and aftermath. There are no quick and easy ways to clean or wipe out a bad credit report; delete your bankruptcy record or create a new identity using a TIN or business tax number for example. These are all fraudulent practices. Remember, if an offer sounds too good to be true, in all likelihood it is or will prove to be down the line.
#5: Offering solutions that are downright criminal, but does not sound that bad. Getting a fake identity, effectively concealing any/your bankruptcy is against the law. It is a crime for which you can be prosecuted. Getting an Employer Identification Number (EIN) that you will use in your credit application instead of your social security number actually proposes fraudulent intent, which the dress up as a great way to get your life and finances, debt, credit rating back on par – they forget to mention that you might go to jail in the process (as this is a crime)
#6: Bankruptcy foreclosure fraud scams, taking advantage of yet another loophole in the system identified as many as five different kinds and rings of bankruptcy fore-closer type scams, in the L.A. area. This is but one and a recent example of how opportunistic these types of practices can be. There are trends in the market to file for bankruptcy to delay or defraud creditors, home lenders, without the clear intention and purpose to actually see it through and adhere to the requirements for obtaining a bankruptcy discharge or completing a repayment plan.
#7: Other scams to look out for are ways others get you to part with the little that you do have, pay off creditors that do not matter (taking the money, never paying your bills). NEVER pay anyone upfront money, or funds in advance. Do not give out any personal or financial information with which you do not feel 100% confident and comfortable.
There are exploiters and abusers of the processes too, both debtors and creditors trying to obtain more than they are entitled to under the Bankruptcy Code. Do not get roped into this by so-called professionals professing and advocating maximizing the retention of assets in bankruptcy, conceal earlier crimes, maximize profit, while leaving town with your riches and precious little recourse that you had left, taking with them means, opportunity, reputation and hope.
Article Source: http://EzineArticles.com/?expert=Alexander_Wennstrom
Bankruptcy law requires a fair amount of scrutiny, scruples and wise discernment, especially during the recovery phases, when there are many unscrupulous elements and exploiters out to make a quick buck, off the misfortunes, desperation and angst of those who have faltered, fallen and could not successfully stave off or avoid bankruptcy. To them any straw or glimmer of hope seems worth embracing, even if it means taking a risk, against all odds, believing in something so ludicrous that someone in different circumstances might just see right through it, without any difficulty, but they do, can not or do not want to, do not care or have no choice and are taken advantage of, lied to, stolen from and left devastated with and by yet another setback.
Utilizing the specialty services on offer in the realms and arena of the big league bankruptcy attorney California talent-pool or bankruptcy Los Angeles specialist practitioners, might cost you some disbursements and fees down the line, when assets are liquidated, bills settled for quality and comprehensive bankruptcy services rendered and delivered. However, it will be totally worth it to protect you against some of the scams, fraudulent practices and outright misleading out there.
Do not be merely one more or another statistic, be taken advantage of, sign anything until you know and verify whom you are dealing with, what is at stake, check them with the better business bureau. If you have to and retain a qualified, licensed and experienced attorney bankruptcy law expert and insider, to handle all aspects of your filing, case and recovery, do so. You will not regret it.
Home equity loan bankruptcy candidates and prospects are especially vulnerable, as they are hooked into signing away their most prized possession and asset, their home!
Many online, fly-by-night, fronts and criminal rings tap into this ‘hidden’ market to take advantage of exploiting those desperate for a bankruptcy loan, look for financing for cars, homes and other ventures, in the post-filing bankruptcy phases and stages. (These can typically last up to 7-10 years on a credit report, affecting access and credit ratings, scores negatively. They then step in, looking like the ‘heroes that save the day, at exorbitant rates and terms, getting people to sign away their life savings, pensions, equity rights and assets, from a position of powerless, hopeless, despair and desperation, turning out to be the would-be thieves, loan-sharks and criminal wolves in sheep’s-clothing that they really are, just out to make a quick buck and take what does not legally belong to them.
One of the most common bankruptcy form offenses and misleading out there, is the purchase of a falsified, fraudulent, inaccurate, or false credit score. This is actually breaking the law and a crime that you can be prosecuted for, so avoid this practice in its entirety.
If you are an unfortunate candidate for filing bankruptcy, or you have gone through the process, protect your interests and well-being, not falling victim to identity thieves, loan sharks and unscrupulous opportunistic lenders, who want to exploit your circumstances and unfortunate fate, turn of events and slow, painstaking recovery.
In the current realty markets, with all the foreclosures, some markets are especially vulnerable, think of the seniors in Florida bankruptcy processes, at risk to lose their homes and life savings. Those after hurricane season, natural disaster left with nothing but bad debt and no options, or those with simply too much credit card debt, who opt to get representation in the sunny state from a reputable Florida bankruptcy lawyer, to handle all aspects of it, only to find that they have been sold down the river, by someone posing to be what they are not.
There are lots of money to be made in the cadres and halls of after bankruptcy recovery type markets, especially now in this downturn type economy that we are facing.
#1: There are bankruptcy car loan schemes, after bankruptcy car loan financing at exorbitant rates, that promises the world, for an arm and a leg and then some, making the real market for car loan after bankruptcy more complex than it has to be, for those recovering from bankruptcy themselves, making debt relief seem even more unrealistic than ever.
#2: There are emails and spam that enter your mailbox, (spammers), enticing you to consolidate your bills into one monthly payment without borrowing; stopping all credit harassment, foreclosures, repossessions, tax levies and garnishments; or wipe out your debts. These are then offered through the means of declaring bankruptcy, without the candidate or prospect being told that’s what it is. It is a last resort, not a quick fix strategy for everyone. Take care and be cautioned to pay special attention to all the long-term negative impact on your creditworthiness of these types of steps, filings and processes. There might also even be attorney fees that you will end up being responsible for and footing the bill. Read the fine print before signing anything and know whom you are dealing with.
# 3: Home equity, home collateral type loans are also being exploited right now in the uncertain, downturn, foreclosure, over-extended mortgage market we are in. This leads to making some extremely gullible, desperate and an open target to be taken advantage of, by criminals that approach them with ‘creative’ short-term financing, that only digs the hole of debt deeper. This results in owners losing the equity or deeds to their homes, being taken advantage, especially true and sad of those facing the challenges and obstacles so common surrounding this financial situation. No real solutions, just more heartache, debt and ruined credit, stolen identity and worse.
#4: Then there are the companies offering bankruptcy credit repair services under the guise to get your information, financial details, to ruin your credit, steal, conduct crime and leave you to sort out the mess and aftermath. There are no quick and easy ways to clean or wipe out a bad credit report; delete your bankruptcy record or create a new identity using a TIN or business tax number for example. These are all fraudulent practices. Remember, if an offer sounds too good to be true, in all likelihood it is or will prove to be down the line.
#5: Offering solutions that are downright criminal, but does not sound that bad. Getting a fake identity, effectively concealing any/your bankruptcy is against the law. It is a crime for which you can be prosecuted. Getting an Employer Identification Number (EIN) that you will use in your credit application instead of your social security number actually proposes fraudulent intent, which the dress up as a great way to get your life and finances, debt, credit rating back on par – they forget to mention that you might go to jail in the process (as this is a crime)
#6: Bankruptcy foreclosure fraud scams, taking advantage of yet another loophole in the system identified as many as five different kinds and rings of bankruptcy fore-closer type scams, in the L.A. area. This is but one and a recent example of how opportunistic these types of practices can be. There are trends in the market to file for bankruptcy to delay or defraud creditors, home lenders, without the clear intention and purpose to actually see it through and adhere to the requirements for obtaining a bankruptcy discharge or completing a repayment plan.
#7: Other scams to look out for are ways others get you to part with the little that you do have, pay off creditors that do not matter (taking the money, never paying your bills). NEVER pay anyone upfront money, or funds in advance. Do not give out any personal or financial information with which you do not feel 100% confident and comfortable.
There are exploiters and abusers of the processes too, both debtors and creditors trying to obtain more than they are entitled to under the Bankruptcy Code. Do not get roped into this by so-called professionals professing and advocating maximizing the retention of assets in bankruptcy, conceal earlier crimes, maximize profit, while leaving town with your riches and precious little recourse that you had left, taking with them means, opportunity, reputation and hope.
Article Source: http://EzineArticles.com/?expert=Alexander_Wennstrom
How To Avoid Bankruptcy
In many cases, bankruptcy can be avoided if the habits that lead to one filing bankruptcy are curbed early on in life. It is never too soon for individuals to learn how to avoid bankruptcy.
People in the United States tend to live on credit quite a bit. Many individuals feel pressured to keep up with neighbors, friends and family and end up overextending themselves on their credit cards. Unfortunately, credit card lenders are pretty indiscriminate as to who they issue credit. There are hundreds of thousands of credit card companies in the United States today. And once someone gets one credit card, chances are they will begin to see many offers coming through the mail for more credit.
This can be tempting, especially for younger people. A good percentage of people who file bankruptcy in the United States each year are young people recently graduated from college. In addition to student loans, college students often use credit cards for everything from pizza to books, with the intent to pay off the debt once they graduate and get a job. Hard reality sets in when they realize how long it will take to pay off the debt mounted on their credit cards, especially as it continues to accumulate interest at a high rate. Still, college students are a prime target of credit card lenders. And many of these young people are handling credit for the first time in their lives. It is very easy to let it get out of hand.
How to avoid bankruptcy? Individuals must learn, early on, to live within their means. This is especially true for young people. Parents should teach children early on how to use credit in a responsible way. College students should limit themselves to one credit card with a low balance, to be used just for emergencies.
Another way how to avoid bankruptcy is to use debit cards instead of credit cards. Debit cards are usually offered by banks and the money is taken directly from your checking account. Because most debit cards usually have a VISA or MASTERCARD logo, they can usually be used in the same places as a credit card. Only the funds are available in the account, not owed.
Individuals who want to learn how to avoid bankruptcy can also take seminars and classes on financial management. Here they can learn which items are wise to buy on credit (real estate) and which items to avoid buying on credit (vacations) as well as investment strategies.
Living within your means and only buying things you can afford is one way how to avoid bankruptcy.
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Article Source: http://EzineArticles.com/?expert=George_Wood
People in the United States tend to live on credit quite a bit. Many individuals feel pressured to keep up with neighbors, friends and family and end up overextending themselves on their credit cards. Unfortunately, credit card lenders are pretty indiscriminate as to who they issue credit. There are hundreds of thousands of credit card companies in the United States today. And once someone gets one credit card, chances are they will begin to see many offers coming through the mail for more credit.
This can be tempting, especially for younger people. A good percentage of people who file bankruptcy in the United States each year are young people recently graduated from college. In addition to student loans, college students often use credit cards for everything from pizza to books, with the intent to pay off the debt once they graduate and get a job. Hard reality sets in when they realize how long it will take to pay off the debt mounted on their credit cards, especially as it continues to accumulate interest at a high rate. Still, college students are a prime target of credit card lenders. And many of these young people are handling credit for the first time in their lives. It is very easy to let it get out of hand.
How to avoid bankruptcy? Individuals must learn, early on, to live within their means. This is especially true for young people. Parents should teach children early on how to use credit in a responsible way. College students should limit themselves to one credit card with a low balance, to be used just for emergencies.
Another way how to avoid bankruptcy is to use debit cards instead of credit cards. Debit cards are usually offered by banks and the money is taken directly from your checking account. Because most debit cards usually have a VISA or MASTERCARD logo, they can usually be used in the same places as a credit card. Only the funds are available in the account, not owed.
Individuals who want to learn how to avoid bankruptcy can also take seminars and classes on financial management. Here they can learn which items are wise to buy on credit (real estate) and which items to avoid buying on credit (vacations) as well as investment strategies.
Living within your means and only buying things you can afford is one way how to avoid bankruptcy.
You're about to discover secret underground free online movies website that the movie companies DON'T want you to see! Stop the big movie companies from fleecing you of your hard earned money, and discover free movies online with free tv on pc to see the latest movies for free!
Article Source: http://EzineArticles.com/?expert=George_Wood
Saturday, November 10, 2007
Common Misconceptions About Bankruptcy
Bankruptcy is not a place you want to be, but sometimes people are so far into debts for one reason or another that it is unavoidable. At least they THINK it is unavoidable. The truth is that there are several options to filing for bankruptcy, and since bankruptcy is such a huge and drastic step, it should only be considered as your last option, AFTER you have thoroughly investigated and exhausted all other options as not being applicable or feasible.
But if bankruptcy is indeed your only or best option, it is not something you should do alone or by yourself, whether personal bankruptcy or business bankruptcy. The laws differ from state to state, and you really need the advice and counsel of a good bankruptcy lawyer. This bankruptcy attorney should be local to you, should be familiar with bankruptcy in your state, and can advise you as to what your real options are, as well as helping and advising with the mountain of paperwork and forms that will be required.
There are some common misconceptions about bankruptcy. It is totally different than declaring bankruptcy in the game of Monopoly, but some of the things that people assume about bankruptcy are totally false, and we will take a look at some of those things here.
Untruth #1: I will lose everything
There are different types of bankruptcy, and again, a qualified attorney can talk with you about this. But there is no guarantee or mandate that you will lose everything, or in fact, ANYTHING. You may be in a position to actually retain the things you have, and to be conscious to get caught up on overdue payments as well as making timely payments to your creditors in the future.
Untruth #2: Everybody will know about it
Basically, this is up to you and who you tell. Yes, bankruptcy is a matter of public record, but who will go into public records to search for it? Do you regularly go to the public records database to see if any of your friends or neighbors have declared bankruptcy? Only your creditors will know, and they are prohibited from making it public knowledge.
Untruth #3: I’ll never get credit again
Some people think that after declaring bankruptcy that they will never be able to buy anything again, even with cash. Nothing could be further from the truth. While it is a fact that filing bankruptcy will put a notable red mark on your credit report for the next 7 to 10 years, you will get credit again. In fact, you may even be inundated with offers for a secured credit card, which is not a bad idea to get your credit score built back up. Make sure you have learned something from your bankruptcy experience though, since these credit offers will probably come to you at exorbitant interest rates.
Untruth #4: It is difficult or impossible to file for bankruptcy
Bankruptcy laws have changed in recent years, and it is certainly not as easy as it once was. In fact, it is still a tedious and difficult process, and one that you would be well advised to work on with a bankruptcy lawyer to make sure you get all the forms right. But it is far from impossible.
Like anything else, you know to know the facts about something, and with bankruptcy, you need to know the law and your rights. Knowledge is power, and the more knowledge you have, the more options you have to exercise.
Visit our site for a free Bankruptcy Evaluation from a qualified bankruptcy attorney who is local to you and can provide advice and options. Our site is at http://www.bankruptcy-data.com and contains great tips and information about bankruptcy.
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
But if bankruptcy is indeed your only or best option, it is not something you should do alone or by yourself, whether personal bankruptcy or business bankruptcy. The laws differ from state to state, and you really need the advice and counsel of a good bankruptcy lawyer. This bankruptcy attorney should be local to you, should be familiar with bankruptcy in your state, and can advise you as to what your real options are, as well as helping and advising with the mountain of paperwork and forms that will be required.
There are some common misconceptions about bankruptcy. It is totally different than declaring bankruptcy in the game of Monopoly, but some of the things that people assume about bankruptcy are totally false, and we will take a look at some of those things here.
Untruth #1: I will lose everything
There are different types of bankruptcy, and again, a qualified attorney can talk with you about this. But there is no guarantee or mandate that you will lose everything, or in fact, ANYTHING. You may be in a position to actually retain the things you have, and to be conscious to get caught up on overdue payments as well as making timely payments to your creditors in the future.
Untruth #2: Everybody will know about it
Basically, this is up to you and who you tell. Yes, bankruptcy is a matter of public record, but who will go into public records to search for it? Do you regularly go to the public records database to see if any of your friends or neighbors have declared bankruptcy? Only your creditors will know, and they are prohibited from making it public knowledge.
Untruth #3: I’ll never get credit again
Some people think that after declaring bankruptcy that they will never be able to buy anything again, even with cash. Nothing could be further from the truth. While it is a fact that filing bankruptcy will put a notable red mark on your credit report for the next 7 to 10 years, you will get credit again. In fact, you may even be inundated with offers for a secured credit card, which is not a bad idea to get your credit score built back up. Make sure you have learned something from your bankruptcy experience though, since these credit offers will probably come to you at exorbitant interest rates.
Untruth #4: It is difficult or impossible to file for bankruptcy
Bankruptcy laws have changed in recent years, and it is certainly not as easy as it once was. In fact, it is still a tedious and difficult process, and one that you would be well advised to work on with a bankruptcy lawyer to make sure you get all the forms right. But it is far from impossible.
Like anything else, you know to know the facts about something, and with bankruptcy, you need to know the law and your rights. Knowledge is power, and the more knowledge you have, the more options you have to exercise.
Visit our site for a free Bankruptcy Evaluation from a qualified bankruptcy attorney who is local to you and can provide advice and options. Our site is at http://www.bankruptcy-data.com and contains great tips and information about bankruptcy.
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
Bankruptcy Alternative - There Are Ways to Pay off Your Credit Card Debts
One of the major reasons why people fall into a situation where they are left with no other option but to file for bankruptcy is the misuse of the credit cards. However, the good news is that if you are a bit careful in your actions associated with the use of credit cards and use some bankruptcy alternatives, you can easily avoid being declared as bankrupt by the court. For a common person, being declared as bankrupt may sound like an easy way to get rid of the huge piles of debts that they owe to the various creditors.
However, this is not true. In fact, if a debtor is declared as bankrupt, his or her financial life will be in a very dilapidated situation for the next ten years, at least. In America, for a common person, most of the things run on credit, but the bankruptcy will badly affect your credit score and credit capabilities. There are many other financial and social impacts. That is the reason; why prudent people always try to use some bankruptcy alternatives rather than directly going ahead and complete the bankruptcy filing process.
Keep a Constant Watch on the Outstanding Balances
Credit cards have emerged as a very convenient means of money transaction. However, if you mismanage its use, it may put you in a deep financial trouble in the end. Therefore, it is always a great idea to use credit cards as per your necessity. Some people try to show off by having multiple credit cards from various credit card companies. They never look at the rapidly increasing outstanding balances. They awake only when it is time to repay the amount and they start getting calls from the collection agency. Therefore, in order to avoid such unpleasant circumstances, you must use a bankruptcy alternative and make sure that you are not exceeding the outstanding balances from a set level, as per your financial capabilities.
Never Pay One Credit Card Debt with another Credit Card
Some people try to be over smart by trying to pay one credit card debt with another credit card. Here, you must note that the credit cards charge a very high rate of interest and paying one credit bill with another credit card will only put you in a much deeper financial crisis. In the end, you will find that instead of reducing the credit card debt, such action has in fact increased the overall debt substantially. Therefore, as a bankruptcy alternative, you should never do the mistake of paying one credit card debts with another credit card. It is not very prudent if you do so.
There is no separate chapter in the bankruptcy laws that deal with the bankruptcy caused by huge credit card debts.
Credit cards were introduced as convenient means of money transaction, but people started misusing the same and it resulted in forcing people towards filing bankruptcy. Therefore, if you want to avoid such bankruptcy, make sure that you look into the various bankruptcy alternatives as per the laws. Bankruptcy provides more information on this issue and guides you on the need and role of a competent bankruptcy attorney.
Article Source: http://EzineArticles.com/?expert=Asheesh_Mani
However, this is not true. In fact, if a debtor is declared as bankrupt, his or her financial life will be in a very dilapidated situation for the next ten years, at least. In America, for a common person, most of the things run on credit, but the bankruptcy will badly affect your credit score and credit capabilities. There are many other financial and social impacts. That is the reason; why prudent people always try to use some bankruptcy alternatives rather than directly going ahead and complete the bankruptcy filing process.
Keep a Constant Watch on the Outstanding Balances
Credit cards have emerged as a very convenient means of money transaction. However, if you mismanage its use, it may put you in a deep financial trouble in the end. Therefore, it is always a great idea to use credit cards as per your necessity. Some people try to show off by having multiple credit cards from various credit card companies. They never look at the rapidly increasing outstanding balances. They awake only when it is time to repay the amount and they start getting calls from the collection agency. Therefore, in order to avoid such unpleasant circumstances, you must use a bankruptcy alternative and make sure that you are not exceeding the outstanding balances from a set level, as per your financial capabilities.
Never Pay One Credit Card Debt with another Credit Card
Some people try to be over smart by trying to pay one credit card debt with another credit card. Here, you must note that the credit cards charge a very high rate of interest and paying one credit bill with another credit card will only put you in a much deeper financial crisis. In the end, you will find that instead of reducing the credit card debt, such action has in fact increased the overall debt substantially. Therefore, as a bankruptcy alternative, you should never do the mistake of paying one credit card debts with another credit card. It is not very prudent if you do so.
There is no separate chapter in the bankruptcy laws that deal with the bankruptcy caused by huge credit card debts.
Credit cards were introduced as convenient means of money transaction, but people started misusing the same and it resulted in forcing people towards filing bankruptcy. Therefore, if you want to avoid such bankruptcy, make sure that you look into the various bankruptcy alternatives as per the laws. Bankruptcy provides more information on this issue and guides you on the need and role of a competent bankruptcy attorney.
Article Source: http://EzineArticles.com/?expert=Asheesh_Mani
Filing Bankruptcy Online - Simple and Convenient
The innovative growth and advancements in Internet has now made filing bankruptcy online, a possibility. You can easily find hundreds of bankruptcy forms processing services online. These are many agencies that will not only provide you bankruptcy forms online, but will also assist you in filing bankruptcy thoroughly. The great thing about filing bankruptcy online is that it is both time and money saving. In most cases, the bankruptcy forms are provided to you free of cost. What is more, if you are aware of the basic facts associated with the various bankruptcy laws, you will not even need a bankruptcy attorney to help you with filing bankruptcy. However, you do need them, when it is about defending your bankruptcy claim.
What are the various ways to file a court petition for bankruptcy?
There are three ways to file a petition for bankruptcy in a bankruptcy court. You can hire a bankruptcy attorney to help you with the filing bankruptcy procedure. You can do it yourself or you can avail the valuable services provided by the various bankruptcy forms processing services, available on Internet. The last option can be a great way to take the pain out of the proceedings, as filing bankruptcy online can be done right from the comfort of your home.
How does filing bankruptcy online works?
When you choose to go for the online procedure of filing bankruptcy, the first thing you will need to do is to download the bankruptcy forms you require. Most of the online bankruptcy forms processing services, offer these forms in PDF format and the download is 100% free. Once you have the forms, you can email the forms to the website. Expert professionals review the forms submitted by you and if there is any problem, you are informed regarding the same. For example, you might have missed certain information. Once you submit the missing information or the suggested corrections, the online bankruptcy forms processing company will send you the final version of the court petition, and once you approve the same, they will file the court petition on your behalf.
What is the the cost of filing bankruptcy online
The bankruptcy forms processing services available online are not the free services. There is a certain amount that you need top pay, in order to avail these valuable services. However, this amount for filing bankruptcy is not a substantial one. In fact, the amount is much less than what you need to pay to your bankruptcy attorney, to do the job for you.
Overall, filing bankruptcy online is a great way that saves both money and time for you.
Filing bankruptcy online has emerged as one of the easiest way to file for bankruptcy. By using this method, you can easily cut down the bankruptcy cost and save substantial time for you. You do not even need to buy the bankruptcy forms because you can download them free, from such websites. To know more about filing bankruptcy process, role of bankruptcy attorney and other issues related to bankruptcy visit filing bankruptcy.
Article Source: http://EzineArticles.com/?expert=Asheesh_Mani
What are the various ways to file a court petition for bankruptcy?
There are three ways to file a petition for bankruptcy in a bankruptcy court. You can hire a bankruptcy attorney to help you with the filing bankruptcy procedure. You can do it yourself or you can avail the valuable services provided by the various bankruptcy forms processing services, available on Internet. The last option can be a great way to take the pain out of the proceedings, as filing bankruptcy online can be done right from the comfort of your home.
How does filing bankruptcy online works?
When you choose to go for the online procedure of filing bankruptcy, the first thing you will need to do is to download the bankruptcy forms you require. Most of the online bankruptcy forms processing services, offer these forms in PDF format and the download is 100% free. Once you have the forms, you can email the forms to the website. Expert professionals review the forms submitted by you and if there is any problem, you are informed regarding the same. For example, you might have missed certain information. Once you submit the missing information or the suggested corrections, the online bankruptcy forms processing company will send you the final version of the court petition, and once you approve the same, they will file the court petition on your behalf.
What is the the cost of filing bankruptcy online
The bankruptcy forms processing services available online are not the free services. There is a certain amount that you need top pay, in order to avail these valuable services. However, this amount for filing bankruptcy is not a substantial one. In fact, the amount is much less than what you need to pay to your bankruptcy attorney, to do the job for you.
Overall, filing bankruptcy online is a great way that saves both money and time for you.
Filing bankruptcy online has emerged as one of the easiest way to file for bankruptcy. By using this method, you can easily cut down the bankruptcy cost and save substantial time for you. You do not even need to buy the bankruptcy forms because you can download them free, from such websites. To know more about filing bankruptcy process, role of bankruptcy attorney and other issues related to bankruptcy visit filing bankruptcy.
Article Source: http://EzineArticles.com/?expert=Asheesh_Mani
Corporate Bankruptcy - Reorganize Debts, Avoid Bankruptcy
Federal Corporate bankruptcy laws mainly guide when companies go out of business due to varied reasons can improve their financial credibility by clearing their debt liability. In the fitness of things, the company should recover from debts and improve their business by filing case under chapter 11 corporate bankruptcy laws. Mainly it is reorganization of their business activities in order to make their business proposition profitable. Once you file a case, though management may continue to run day-to-day business activities but all new business reorganization schemes should be approved by court. If you file a case under chapter 7, under corporate bankruptcy laws, the company has to stop all business activities and declare completely out of business. In that case, the court assigns the job of liquidating all the assets to a trustee, who in turn sells off all the assets to pay off to lenders and investors.
Investors are paid first followed by secured lenders who arrange credit for the company against mortgage or other assets of the firm. In fact, they are sure to get their finances back if the company declares insolvency. If the company has floated bonds, the bondholders are sure to get their money back under such a situation as against shareholders. Shareholders are those who actually own the company and therefore are at a greater risk. The bondholders during bankruptcy will not get interest and principal payments and whereas the shareholders will no more get dividends. In case the company's liabilities are more compared to assets the shareholders may not get anything as per court directive. Normally the Company filing case under chapter 7 of corporate bankruptcy laws is worthless and therefore the bondholders or shareholders are sure to loose their money. However if you bondholder you may receive some amount but as shareholder you have lost your money. There is always a possibility that company's securities may continue to trade even after filing bankruptcy under chapter 11, as there is no law, which prohibits trading after filing the case.
As such on account of hassles involved in filing a case it is therefore always advisable to Avoid bankruptcy. However, to people it seems easy and most convenient way to get out of financial privations; but in fact, they cannot foresee the troubles ahead. In fact, it is not a wise solution as it leads to business bankruptcy and reckoning your business completely. Therefore, it is highly suggested to always consider other viable option before filing the case.
Debtips is the most comprehensive resource on Debt Consolidation Loan, Bankruptcy, Mortgage and Credit. It is just the right channel to make you finance literate and also helps in managing your personal finances. Visit Debtips and find all the information on
# Debt Consolidation
# Credit Report
# Online Mortgage
# Bad Credit
Bankruptcy is an unfortunate situation and can happen even to seasoned businessman or to a new entrepreneur. Avoiding Bankruptcy is the best strategic plan one can adopt. Go ahead to know intricacies of Corporate Bankruptcy and the ways to deal with it.
Article Source: http://EzineArticles.com/?expert=James_Arther
Investors are paid first followed by secured lenders who arrange credit for the company against mortgage or other assets of the firm. In fact, they are sure to get their finances back if the company declares insolvency. If the company has floated bonds, the bondholders are sure to get their money back under such a situation as against shareholders. Shareholders are those who actually own the company and therefore are at a greater risk. The bondholders during bankruptcy will not get interest and principal payments and whereas the shareholders will no more get dividends. In case the company's liabilities are more compared to assets the shareholders may not get anything as per court directive. Normally the Company filing case under chapter 7 of corporate bankruptcy laws is worthless and therefore the bondholders or shareholders are sure to loose their money. However if you bondholder you may receive some amount but as shareholder you have lost your money. There is always a possibility that company's securities may continue to trade even after filing bankruptcy under chapter 11, as there is no law, which prohibits trading after filing the case.
As such on account of hassles involved in filing a case it is therefore always advisable to Avoid bankruptcy. However, to people it seems easy and most convenient way to get out of financial privations; but in fact, they cannot foresee the troubles ahead. In fact, it is not a wise solution as it leads to business bankruptcy and reckoning your business completely. Therefore, it is highly suggested to always consider other viable option before filing the case.
Debtips is the most comprehensive resource on Debt Consolidation Loan, Bankruptcy, Mortgage and Credit. It is just the right channel to make you finance literate and also helps in managing your personal finances. Visit Debtips and find all the information on
# Debt Consolidation
# Credit Report
# Online Mortgage
# Bad Credit
Bankruptcy is an unfortunate situation and can happen even to seasoned businessman or to a new entrepreneur. Avoiding Bankruptcy is the best strategic plan one can adopt. Go ahead to know intricacies of Corporate Bankruptcy and the ways to deal with it.
Article Source: http://EzineArticles.com/?expert=James_Arther
Anticipated Changes To The Federal Bankruptcy Laws Maybe Pending
House Democratic members from North Carolina and California, respectively, recently propose legislation that would repeal the mortgage exception in the federal bankruptcy code.
This legislation would allow a judge to change the priority value of primary residence mortgages or alter interest rates on the property. In the current economic climate, industry insiders are predicting over half a million foreclosures in the next 24 months, prompting serious discussions around this issue.
What is Bankruptcy?
There are two main types of Bankruptcy options for the consumer. Chapter 7 Bankruptcy is often referred to as a "liquidation bankruptcy." In Chapter 7, all of the debtor's assets, other than those specifically exempt from liquidation, are turned over to a bankruptcy trustee for sale.
Chapter 7 Bankruptcy is used to eliminate, or discharge primarily unsecured debts such as credit cards or medical bills. Chapter 7 does not eliminate secured debts, such as vehicles. Chapter 7 will not save houses from foreclosure or a car from repossession if payments are delinquent.
Chapter 13 Bankruptcy, most commonly used to halt a foreclosure, results in a plan to repay all or part of a debt. Many times a debtor is allowed to pay credit cards and medical bills at pennies on the dollar. Chapter 13 is used most often to save a house from a foreclosure sale or vehicle from repossession. Chapter 13 is also useful to eliminate some IRS debt and to establish an affordable plan to pay IRS debt that cannot be eliminated. Chapter 13 Bankruptcy is available to debtors with regular income.
The bill before the house, entitled the Emergency Home Ownership and Mortgage Equity Protection Act, would give a bankruptcy judge the option of restructuring the amount an in debt person owes on the mortgage on a primary residence so that only the portion of the loan principal that doesn't exceed the market value of the property would receive high priority.
In other words, "the portion of the mortgage principal that exceeds the market value of the home would be treated as an unsecured liability, as in Chapter 7, and not given preferential treatment, meaning that the amount could be discharged in a bankruptcy proceeding. Traditionally mortgage payments on primary residences, like tax liabilities, have been sacred untouchable territory in bankruptcy negotiations, not allowed to be tampered with by the courts.
Jeff Kaller, visionary, educator and real estate developer has the pioneered the most preeminent pre-foreclosure system in United States. Specializing in a well kept industry niche, Jeff teaches the real estate secrets of purchasing pre-foreclosure properties while executing real estate theory to actual practice. A record of $7 million dollars in properties and a dedicated following of over 9,000 students in less than four years stands testament to his winning strategies.
P.S. If you haven't signed up for my Free Short Sale Course yet, then you are really missing out, go here: http://www.freeshortsalecourse.com/
Article Source: http://EzineArticles.com/?expert=Jeff_Kaller
This legislation would allow a judge to change the priority value of primary residence mortgages or alter interest rates on the property. In the current economic climate, industry insiders are predicting over half a million foreclosures in the next 24 months, prompting serious discussions around this issue.
What is Bankruptcy?
There are two main types of Bankruptcy options for the consumer. Chapter 7 Bankruptcy is often referred to as a "liquidation bankruptcy." In Chapter 7, all of the debtor's assets, other than those specifically exempt from liquidation, are turned over to a bankruptcy trustee for sale.
Chapter 7 Bankruptcy is used to eliminate, or discharge primarily unsecured debts such as credit cards or medical bills. Chapter 7 does not eliminate secured debts, such as vehicles. Chapter 7 will not save houses from foreclosure or a car from repossession if payments are delinquent.
Chapter 13 Bankruptcy, most commonly used to halt a foreclosure, results in a plan to repay all or part of a debt. Many times a debtor is allowed to pay credit cards and medical bills at pennies on the dollar. Chapter 13 is used most often to save a house from a foreclosure sale or vehicle from repossession. Chapter 13 is also useful to eliminate some IRS debt and to establish an affordable plan to pay IRS debt that cannot be eliminated. Chapter 13 Bankruptcy is available to debtors with regular income.
The bill before the house, entitled the Emergency Home Ownership and Mortgage Equity Protection Act, would give a bankruptcy judge the option of restructuring the amount an in debt person owes on the mortgage on a primary residence so that only the portion of the loan principal that doesn't exceed the market value of the property would receive high priority.
In other words, "the portion of the mortgage principal that exceeds the market value of the home would be treated as an unsecured liability, as in Chapter 7, and not given preferential treatment, meaning that the amount could be discharged in a bankruptcy proceeding. Traditionally mortgage payments on primary residences, like tax liabilities, have been sacred untouchable territory in bankruptcy negotiations, not allowed to be tampered with by the courts.
Jeff Kaller, visionary, educator and real estate developer has the pioneered the most preeminent pre-foreclosure system in United States. Specializing in a well kept industry niche, Jeff teaches the real estate secrets of purchasing pre-foreclosure properties while executing real estate theory to actual practice. A record of $7 million dollars in properties and a dedicated following of over 9,000 students in less than four years stands testament to his winning strategies.
P.S. If you haven't signed up for my Free Short Sale Course yet, then you are really missing out, go here: http://www.freeshortsalecourse.com/
Article Source: http://EzineArticles.com/?expert=Jeff_Kaller
Alabama Bankruptcy - 3 Facts You Must Know
For anyone thinking of filing personal bankruptcy in the "heart of Dixie", as Alabama is affectionately nicknamed by its residents, this information is for you.
In Alabama (as well as the other 49 states), the two types of bankruptcy commonly filed by individuals are Chapter 7 and Chapter 13. In a Chapter 7 bankruptcy proceeding, a court-appointed bankruptcy administrator takes possession of any nonexempt assets, sells them, and then uses the proceeds to pay creditors. The discharge is generally entered a few months after the petition is filed.
In a Chapter 13 bankruptcy proceeding, the individual filing bankruptcy proposes a plan to repay debts over a three to five year period. This plan must be approved by the Court, and plan payments are paid to the bankruptcy administrator, who then disburses the payments to creditors based on the terms of the approved plan. The discharge is not granted until the conclusion of the repayment plan.
If given a choice between Chapter 7 and Chapter 13, most people will pick Chapter 7 because it requires no repayment of debts and is over much quicker. However, bankruptcy laws enacted in 2005 place conditions on who can actually file a Chapter 7 bankruptcy petition, which brings us to...
Alabama Bankruptcy Fact #1
The bankruptcy laws enacted in 2005 impose a means test to determine if a person can file Chapter 7 bankruptcy. There are two ways to pass this means test.
The first way is to compare the household income of the person filing to the state median income. The annual income, calculated using the average gross income for the six-month period prior to filing, must be below the state median. Currently, the median income for a family of four in Alabama is $55,424.
If household income exceeds the median, a person can still file Chapter 7, based on the results of a means test calculation. Bankruptcy Form 22A is used for this calculation.
Additional information regarding the bankruptcy means test can be found on the U.S. Trustee Program's Website at http://www.usdoj.gov/ust.
Alabama Bankruptcy Fact #2
As stated earlier, the bankruptcy administrator in a Chapter 7 proceeding will take possession of nonexempt assets and liquidate them in order to pay creditors. The next obvious question - what exactly is exempt in Alabama?
Unfortunately, the answer is "not much". As of this writing, Alabama allows a $5,000 homestead exemption and a $3,000 personal property exemption. If the homestead is jointly owned by a husband and wife, each may separately claim the homestead exemption. There are other exemptions, and the laws may change at any time, so make sure you consult an attorney before you file bankruptcy, which brings us to...
Alabama Bankruptcy Fact #3
Many people who file bankruptcy without counsel do so because of the belief that they cannot afford an attorney. Truth is, bankruptcy is a complicated legal matter and you can't afford not to have an attorney. In addition, for those who really can't afford a lawyer, there are sources of free help. It's just a matter of tracking it down.
Start by calling your local bar association. They will be able to refer you to local attorneys and organizations that may be able to help you. If your local bar is unable to help, contact the Alabama Bar. Their contact information is available at http://www.alabar.org.
Dawn Hall is a freelance writer who worked as an assistant to a Chapter 7 bankruptcy trustee. She is currently developing a free online Chapter 7 bankruptcy resource guide. Visit her website for more information regarding Alabama bankruptcy.
Article Source: http://EzineArticles.com/?expert=Dawn_Hall
In Alabama (as well as the other 49 states), the two types of bankruptcy commonly filed by individuals are Chapter 7 and Chapter 13. In a Chapter 7 bankruptcy proceeding, a court-appointed bankruptcy administrator takes possession of any nonexempt assets, sells them, and then uses the proceeds to pay creditors. The discharge is generally entered a few months after the petition is filed.
In a Chapter 13 bankruptcy proceeding, the individual filing bankruptcy proposes a plan to repay debts over a three to five year period. This plan must be approved by the Court, and plan payments are paid to the bankruptcy administrator, who then disburses the payments to creditors based on the terms of the approved plan. The discharge is not granted until the conclusion of the repayment plan.
If given a choice between Chapter 7 and Chapter 13, most people will pick Chapter 7 because it requires no repayment of debts and is over much quicker. However, bankruptcy laws enacted in 2005 place conditions on who can actually file a Chapter 7 bankruptcy petition, which brings us to...
Alabama Bankruptcy Fact #1
The bankruptcy laws enacted in 2005 impose a means test to determine if a person can file Chapter 7 bankruptcy. There are two ways to pass this means test.
The first way is to compare the household income of the person filing to the state median income. The annual income, calculated using the average gross income for the six-month period prior to filing, must be below the state median. Currently, the median income for a family of four in Alabama is $55,424.
If household income exceeds the median, a person can still file Chapter 7, based on the results of a means test calculation. Bankruptcy Form 22A is used for this calculation.
Additional information regarding the bankruptcy means test can be found on the U.S. Trustee Program's Website at http://www.usdoj.gov/ust.
Alabama Bankruptcy Fact #2
As stated earlier, the bankruptcy administrator in a Chapter 7 proceeding will take possession of nonexempt assets and liquidate them in order to pay creditors. The next obvious question - what exactly is exempt in Alabama?
Unfortunately, the answer is "not much". As of this writing, Alabama allows a $5,000 homestead exemption and a $3,000 personal property exemption. If the homestead is jointly owned by a husband and wife, each may separately claim the homestead exemption. There are other exemptions, and the laws may change at any time, so make sure you consult an attorney before you file bankruptcy, which brings us to...
Alabama Bankruptcy Fact #3
Many people who file bankruptcy without counsel do so because of the belief that they cannot afford an attorney. Truth is, bankruptcy is a complicated legal matter and you can't afford not to have an attorney. In addition, for those who really can't afford a lawyer, there are sources of free help. It's just a matter of tracking it down.
Start by calling your local bar association. They will be able to refer you to local attorneys and organizations that may be able to help you. If your local bar is unable to help, contact the Alabama Bar. Their contact information is available at http://www.alabar.org.
Dawn Hall is a freelance writer who worked as an assistant to a Chapter 7 bankruptcy trustee. She is currently developing a free online Chapter 7 bankruptcy resource guide. Visit her website for more information regarding Alabama bankruptcy.
Article Source: http://EzineArticles.com/?expert=Dawn_Hall
Thursday, November 8, 2007
Bankruptcy Chapter Differences
Every person can begin acquiring loans and credit cards at the age of 18, thus making it very simple to find yourself in debt if you haven't got any financial discipline. The simple act of repaying debts becomes enormous and very complicated. Filing for one of the bankruptcy chapter as a last resort is the only option left to them. Bankruptcy is not as simple as deciding not to pay a debt. It is a legal process proceeded over by the United States Department of Justice.
There is a distinguishing difference in bankruptcy chapter 7, 11, and 13. Every bankruptcy chapter is under the regulation of The United States Bankruptcy Courts and is governed by federal laws determining the rules and guidelines for each bankruptcy chapter. Bankruptcy laws have also changed within recent years so it is especially important to know which changes in law are the most applicable to the given situation. Within its legal proceedings, regardless the chapter filed, a bankruptcy trustee is appointed for the case.
It is important, when dealing with a bankruptcy trustee, to maintain complete honesty. Issuing a false statement in court or to a court appointed representative is perjury and can result in stiff fines and imprisonment. With the advent of wide spread technology and information systems, knowledge are quickly passed from party to party.
Chapter 7 bankruptcy is where the individual person is unable to pay anything to his creditors. A list of all debts owed will be compiled by the judge and lawyer and the individual will be audited whether or not he will be able to pay back the money that is owed. If the person is not able to repay the debts then the assets not covered under exemption will be sold or returned and any extra monies paid to the creditors.
Chapter 11 bankruptcy and chapter 13 bankruptcy are where the debtor and his lawyer makes arrangements through the court system to pay back the debts in monthly installments that will not overburden the individual. Some assets, like 401k or retirement saving plans, cannot be touched by the creditors.
The need to declare corporate or personal bankruptcy may have never been your end goal. A trip to bankruptcy court can definitely not solve all of your problems but it can help you get a fresh start if you are overwhelmed by debt. The bankruptcy trustee appointed to your case will review your information and financial records before making a decision. Abide by the decision and you will be on your way to a different life where your debt is gone and you can start again.
Alan Lester van der Reinje is a former broker and runs the Investment Blog InvestorToday.net. He has more valuable advice about Chapter 7 Bankruptcy on a dedicated information site.
Article Source: http://EzineArticles.com/?expert=Alan_Lester_Van_Der_Reinje
There is a distinguishing difference in bankruptcy chapter 7, 11, and 13. Every bankruptcy chapter is under the regulation of The United States Bankruptcy Courts and is governed by federal laws determining the rules and guidelines for each bankruptcy chapter. Bankruptcy laws have also changed within recent years so it is especially important to know which changes in law are the most applicable to the given situation. Within its legal proceedings, regardless the chapter filed, a bankruptcy trustee is appointed for the case.
It is important, when dealing with a bankruptcy trustee, to maintain complete honesty. Issuing a false statement in court or to a court appointed representative is perjury and can result in stiff fines and imprisonment. With the advent of wide spread technology and information systems, knowledge are quickly passed from party to party.
Chapter 7 bankruptcy is where the individual person is unable to pay anything to his creditors. A list of all debts owed will be compiled by the judge and lawyer and the individual will be audited whether or not he will be able to pay back the money that is owed. If the person is not able to repay the debts then the assets not covered under exemption will be sold or returned and any extra monies paid to the creditors.
Chapter 11 bankruptcy and chapter 13 bankruptcy are where the debtor and his lawyer makes arrangements through the court system to pay back the debts in monthly installments that will not overburden the individual. Some assets, like 401k or retirement saving plans, cannot be touched by the creditors.
The need to declare corporate or personal bankruptcy may have never been your end goal. A trip to bankruptcy court can definitely not solve all of your problems but it can help you get a fresh start if you are overwhelmed by debt. The bankruptcy trustee appointed to your case will review your information and financial records before making a decision. Abide by the decision and you will be on your way to a different life where your debt is gone and you can start again.
Alan Lester van der Reinje is a former broker and runs the Investment Blog InvestorToday.net. He has more valuable advice about Chapter 7 Bankruptcy on a dedicated information site.
Article Source: http://EzineArticles.com/?expert=Alan_Lester_Van_Der_Reinje
Quick Tips On Bankruptcy Proceedings
More and more people in this day and ge are finding themselves in bankruptcy court due to the flatening economy in the U.S. If you are one of these people then there are few simple rules that you should follow to make sure that you get through the process intact.
You will need to hire a competent bankruptcy lawyer to represent you during the process and if you have never had dealings with a lawyer then there are a few things that you should know. There will be a billing process that your lawyer will present to you and he or she will want it it be an open ended process, where by they can basically add up the charges and send them to you.
They will charge you an hourly rate but it is up to them to keep track of the hours and then bill you for them so there is plenty of room to get screwed and you will if you aren't on guard. Lawyers are well trianed to come on to you like a friend and an ally so beware of this.
There are honest lawyers out there but they are by far the minority in the profesión, so you have to scout around and if you have cash to pay then take your time and don't by shy about being a jerk and walking out of a lawyers office, because most of them are con artists and they themselves know this fact.
It is best if you hire a lawyer from the state that you are going through your bankruptcy in, because they will be familiar with the laws of that state. Your lawyer should be happy to present you with regular bills with some type of notation as to what the hours you are being charged for were spent doing. Even a sentence or two world be fine as long as it explains briefly what you are being charged for.
Don't let your lawyer build up one big bill that he or she is going to present you with in the end or you you will get the screwing of your life.
Written by Anthony Millman. Find the latest information on bankruptcy as well as Debt Advice
Article Source: http://EzineArticles.com/?expert=Anthony_Millman
You will need to hire a competent bankruptcy lawyer to represent you during the process and if you have never had dealings with a lawyer then there are a few things that you should know. There will be a billing process that your lawyer will present to you and he or she will want it it be an open ended process, where by they can basically add up the charges and send them to you.
They will charge you an hourly rate but it is up to them to keep track of the hours and then bill you for them so there is plenty of room to get screwed and you will if you aren't on guard. Lawyers are well trianed to come on to you like a friend and an ally so beware of this.
There are honest lawyers out there but they are by far the minority in the profesión, so you have to scout around and if you have cash to pay then take your time and don't by shy about being a jerk and walking out of a lawyers office, because most of them are con artists and they themselves know this fact.
It is best if you hire a lawyer from the state that you are going through your bankruptcy in, because they will be familiar with the laws of that state. Your lawyer should be happy to present you with regular bills with some type of notation as to what the hours you are being charged for were spent doing. Even a sentence or two world be fine as long as it explains briefly what you are being charged for.
Don't let your lawyer build up one big bill that he or she is going to present you with in the end or you you will get the screwing of your life.
Written by Anthony Millman. Find the latest information on bankruptcy as well as Debt Advice
Article Source: http://EzineArticles.com/?expert=Anthony_Millman
The Following Are Steps On How To File Bankruptcy
The following are steps on how to file bankruptcy: collection paperwork, filing bankruptcy, automatic stay, bankruptcy trustee, meeting of creditors and intent prelim. Crowd paperwork is the introductory and most important step to drive the formation of how to file a bankruptcy.
One devoir itemize his current income sources; higher money transactions for two senescence; magazine living expenses; debts, both secured and unsecured and property which includes not exclusive real states but all assets and sphere. One should besides collect his customs returns for the last two second childhood, deeds to fraction real estate owned, car titles and documents for any loan.
Once the needful documents are gathered, one should for rule which property is exempt from seizure based on the exemptions provided by his State. This is the point stage power bankruptcy may impersonate filed. Domination filing bankruptcy either the person involved or his counsel will occasion to file a two-page appeal and several other forms at a bankruptcy district adjudicator seat he resides will occasion to file a two-page appeal and several other forms at a bankruptcy district adjudicator seat he resides.
These forms are referred to through the schedules and strike one to characterize his or her current money rank and recent budgetary transactions. If the creditors or the sheriff observe or treasure out that you hold not been sweeping domination your invoice of your fiscal position, embodied could jeopardize the outcome of the entreaty. When the gathered paperwork has been filed bury the bankruptcy hizzoner, the touching step on how to file bankruptcy is an automatic stay momentarily goes into ramification. This provision prevents creditor from creation direct contact to the person filing for bankruptcy, or staking a claim on cut of the property of the person involved. Ropes addition, this will barricade extra foreclosure action.
Article Source: http://EzineArticles.com/?expert=Alex_Zenden
One devoir itemize his current income sources; higher money transactions for two senescence; magazine living expenses; debts, both secured and unsecured and property which includes not exclusive real states but all assets and sphere. One should besides collect his customs returns for the last two second childhood, deeds to fraction real estate owned, car titles and documents for any loan.
Once the needful documents are gathered, one should for rule which property is exempt from seizure based on the exemptions provided by his State. This is the point stage power bankruptcy may impersonate filed. Domination filing bankruptcy either the person involved or his counsel will occasion to file a two-page appeal and several other forms at a bankruptcy district adjudicator seat he resides will occasion to file a two-page appeal and several other forms at a bankruptcy district adjudicator seat he resides.
These forms are referred to through the schedules and strike one to characterize his or her current money rank and recent budgetary transactions. If the creditors or the sheriff observe or treasure out that you hold not been sweeping domination your invoice of your fiscal position, embodied could jeopardize the outcome of the entreaty. When the gathered paperwork has been filed bury the bankruptcy hizzoner, the touching step on how to file bankruptcy is an automatic stay momentarily goes into ramification. This provision prevents creditor from creation direct contact to the person filing for bankruptcy, or staking a claim on cut of the property of the person involved. Ropes addition, this will barricade extra foreclosure action.
Article Source: http://EzineArticles.com/?expert=Alex_Zenden
Debt Alternative to Bankruptcy
If you have serious debts and are unable to pay your bills, one of your options is to go bankrupt. It's only advisable to file for bankruptcy debt relief if you have a substantial amount of debt, or debt that will take you an unreasonable amount of time to pay off. For example if your debts are £20,000 or higher. If you've tried debt relief programs and counseling services, and they all say that there's no hope for you, then you can go the route of bankruptcy debt relief. When you file for bankruptcy debt relief, and you have that bankruptcy on your credit, it can take seven years for it to come off. However, before making a decision you should also be aware of other potential debt relief options.
Debt Consolidation
Debt consolidation is an effective strategy to paying down debts especially if you have a few high interest revolving credit card accounts. Debt consolidation is also the most popular sought after debt service before filing for bankruptcy. Debt consolidators can provide debt help in the form of debt settlement, a debt consolidation loan or a structured settlement. Debt negotiation is a means to avoid bankruptcy while still repaying a portion of your debts. Debt Elimination - A well-advertised method where you essentially do not pay your creditors. However, be aware that debt consolidation can be dangerous because you treat only the symptom.
IVA (Individual Voluntary Arrangement)
An IVA is another possible option if your debts are over £15,000. With this option you can clear up to 75% of your debts over a 5-year period. You also know precisely what your payment obligations will be for the five year life of the IVA. If an IVA or other debt help can help you avoid bankruptcy then it's probably a better debt solution. An insolvency practitioner will be appointed if an IVA is found to be more suitable and they will help stop all the creditors knocking on your door.
Creditors
Bankruptcy is a powerful procedure with serious repercussions that allows a debtor the benefit of relief from his or her creditors and the possibility of a fresh start. Remember, that bankruptcy lawyers will probably be representing your creditors to enforce their rights against you. Usually when a person becomes overwhelmed by bills, they must deal with their creditors aggressively attempting to get money from them. Your creditors only care about collecting money from you and do not care about what is best for your situation. Once you are declared bankrupt you no longer have to pay those creditors back.
Article Source: http://EzineArticles.com/?expert=Paul_Hockney
Debt Consolidation
Debt consolidation is an effective strategy to paying down debts especially if you have a few high interest revolving credit card accounts. Debt consolidation is also the most popular sought after debt service before filing for bankruptcy. Debt consolidators can provide debt help in the form of debt settlement, a debt consolidation loan or a structured settlement. Debt negotiation is a means to avoid bankruptcy while still repaying a portion of your debts. Debt Elimination - A well-advertised method where you essentially do not pay your creditors. However, be aware that debt consolidation can be dangerous because you treat only the symptom.
IVA (Individual Voluntary Arrangement)
An IVA is another possible option if your debts are over £15,000. With this option you can clear up to 75% of your debts over a 5-year period. You also know precisely what your payment obligations will be for the five year life of the IVA. If an IVA or other debt help can help you avoid bankruptcy then it's probably a better debt solution. An insolvency practitioner will be appointed if an IVA is found to be more suitable and they will help stop all the creditors knocking on your door.
Creditors
Bankruptcy is a powerful procedure with serious repercussions that allows a debtor the benefit of relief from his or her creditors and the possibility of a fresh start. Remember, that bankruptcy lawyers will probably be representing your creditors to enforce their rights against you. Usually when a person becomes overwhelmed by bills, they must deal with their creditors aggressively attempting to get money from them. Your creditors only care about collecting money from you and do not care about what is best for your situation. Once you are declared bankrupt you no longer have to pay those creditors back.
Article Source: http://EzineArticles.com/?expert=Paul_Hockney
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