Bankruptcy? Don’t Get Messy With It.

Despite the serious short term and long-term effects associated with filing bankruptcy, the number of people filing bankruptcy lately has been on the increase. It is estimated that 5.4 people out of 1000 filed for bankruptcy last year and that this rate has been growing at an average of 7%. The alarming ease with which people file for bankruptcy is a growing cause of concern for governments and financial organizations.

What is Bankruptcy? The word, Bankruptcy, means 'broken bench', literally. In the past, during the early days of banking and trading, when a debtor could not pay off his debts, his workbench was broken into two as a punishment and also as a warning for other debtors. But in recent times, the term is now used as a legal tool to help an individual or business discharge its burden of debts without been swallowed up by it. It is now a legal term, meaning that an individual cannot, within reason, pay off his various debts and has allowed the court system to take over his finances for the purpose of easing off his debts.

Bankruptcy laws were enacted in order to protect both debtor, and creditor. The laws were enacted to provide equal and fair measures to satisfy the objectives of all parties. The primary purpose of the laws of bankruptcy can be split in two:

- To give an honest debtor a fresh start in life by relieving him most of his debts

- To repay creditors in an orderly manner to the extent that the debtor has property available for payment.

Several studies over the years have shown that the primary cause of personal bankruptcy is uncontrollable levels of consumer debt which in most cases is coupled with an unexpected event, such as a major medical expense not covered by insurance, the loss of a job, divorce or death of a spouse. According to economists' surveys, the classic bankruptcy filer is a blue collar, high school graduate who is the head of a household in the lower middle-income class with heavy use of credit.

Different types of bankruptcy exist in different localities and countries, defined by legal codes for certain purposes. The exact types of bankruptcy available differ from one country to the next, in the United Kingdom for example; bankruptcy can only legally be applied to individuals and partnerships, whereas in the United States and Canada, it can be applied to businesses as well.

There are two basic structured plans for filing personal bankruptcy, these are known as Chapter 7 and Chapter 13. The chapter 7 plan requires debtors to liquidate all non-exempt assets, such as retirement programs, and have them distributed among his creditors, while the Chapter 13 plan does not require liquidation. In this plan, the debtor concedes to a payment arrangement where a portion of his unsecured debts are paid and the balance forgiven. Most personal bankruptcy filers chose the chapter 7 option.

When filling for bankruptcy, you will need the services of a Bankruptcy lawyer, and getting an experienced lawyer who has handled cases similar to yours may be an important first step. When you have filed for bankruptcy, the court will normally appoint someone to work out the payments to your creditors and to determine how much of your income must go into repaying these debts. The court will either allow you to make payments, or more likely, will deduct a portion of your pay check toward this goal. And during this process one of the primary side effects is that your credit options will be very limited, due to both legal action and the reluctance of creditors to issue credit lines to individuals who have declared bankruptcy. Although, once the amount set by the court has been paid off, the bankruptcy will be cleared and you will be able to start rebuilding your credit from the start again. It may be years before creditors start trusting you after declaring bankruptcy. If you rebuild you credit well enough, it probably won't take too long, but certainly, for a couple of years you are not going to be credit worthy.

Because of the lasting effects of filing bankruptcy, it is advisable to only declare bankruptcy as a last resort. Try out every other alternative, talk to an experienced lawyer and see if there are options to be considered before declaring yourself or your business bankrupt. In most cases, there are always better alternatives to be considered.

- You could sell off some assets to clear your bills when you notice that you are getting financially trapped and may be running into trouble.

- Reduce your expenses and cut out all non-essential costs.

- Consult with a specialist, e.g. an accountant, maybe you could work out a plan to enable you gradually pay off your debts without been swallowed by it. A good budget, when strictly adhered to, could pull you out of a terrible situation in no time.

- You could also consider refinancing some assets and using the surplus to pay off your debts.

- You could also arrange something like a Creditors' pool. Here you will need to arrange with all your creditors to create a pool run by an accountant, where you pay a certain amount of money into the pool as arranged and the money is distributed to your creditors until your debts are paid.

If none of this works, then you could consider filing for voluntary bankruptcy to stop the situation from getting too bad. The bottom line is, don't jump into this mess called bankruptcy, until you have convinced yourself it is the only option left.

http://bankruptcy-guide-to.com/a/82632/Bankruptcy%3f+Don%e2%80%99t+Get+Messy+With+It..html

Bankruptcy - Always Count Your Pennies

What is our main purpose in life? Is it to be happy or to be successful. For a lot of people, there is no difference between the two. We seem to define ourselves by what we own instead of who we are, as if success makes us better people. Some people go to such extremes to be successful, that they end up neglecting their marriage, their children and even their health. And for some people, illegal activity is worth the risk, it if brings them the success they want.

Even when people have success, it's not enough, now they need to show the world how successful they are. They do this by buying expensive homes, cars, clothes, etc. There's a lifestyle that goes with success and many of people try to project that style, even if they can't afford it. But no matter how successful people may get, they can't avoid the unexpected circumstances of life. People can get ill, have accidents or because of cut-backs, lose their jobs. Those types of situations can destroy the finances of most people. So, what are the options for when their income and unexpected circumstances will not allow them to continue to live a certain lifestyle?

Though people have a few avenues that maybe open to them, the process that many use to help fix their finances is bankruptcy. Bankruptcy is when individuals or an organization legally admits to not being able to pay their bills. Bankruptcy allows the people in debt a chance to get their bills in order, without going to the extreme of selling everything they own. During bankruptcy, some debts may no longer need to be paid; while a plan to pay other debts will be put into place.

Bankruptcy is nothing new. The first bankruptcy law was created in England in 1542. The first American bankruptcy law was passed in 1800. The American law was similar to the British law of 1705, with the exception being that there was no possibly of death, written into the American law. Congress re-worked the bankruptcy law in 1938; one of the changes that came from this was the creation of Chapter 13. Under Chapter 13, the people in debt would make regular payments to a trustee, who would in turn, pay off the people who were owed money. Chapter 13 was a big change, because in the past people would file under Chapter 7; and under Chapter 7, most people got away without having to pay-off any of their debts.

Bankruptcy can be a very important tool for people who've experienced an unexpected trauma in their life. Bankruptcy can help them get back on their feet financially. It can also help those people who chose to spend more money than they had, usually with the help of credit cards. Bankruptcy is not just for the individual. Many businesses have taken advantage of the bankruptcy law over the years. The bankruptcy law is there to help, but what individuals and businesses should consider, is trying to find a way to live their lives and run their businesses in a way to avoid bankruptcy.

http://bankruptcy-guide-to.com/a/324777/Bankruptcy+-+Always+Count+Your+Pennies.html

Bankruptcy – Getting Your Credit Back

Your bankruptcy case has gone through and you’re trying to put all of this behind you. You want to get a fresh start and not make the same mistakes again in the future. It’s time to start thinking about rebuilding your credit.

No matter what caused you to file bankruptcy, be it from doctor and hospital bills, a divorce, a loss of your job, or perhaps even your own foolishness, you’re going to have to start over again. You will need to prove to lenders that you are a good risk. This is going to take some time and effort on your part, but it can be done. Here are some good tips to help you get started rebuilding your credit after a bankruptcy.

Getting New Credit

Many people mistakenly believe that if will take 7 years after your bankruptcy before you can ever get any kind of a loan or credit card again. This is completely false. Did you know that many people come out of a bankruptcy with higher credit scores than they ever had in their financial life?

There is no real big secret to this. These people began paying their bills on time again. And they did it consistently month after month. To help begin rebuilding your credit you should consider getting one credit card as quickly as possible, even if it is a pre-deposit credit card. Many credit card companies will give you a credit card after a bankruptcy. You just need to do some searching.

Then make a few small charges to it, and pay it off every month. Do not carry a forwarding balance. Simply pay it off every month. This will help rebuild your credit faster than anything else you can do after a bankruptcy. It shows lenders that they can trust you again. Then slowly begin building up to higher purchases and pay those off in a couple of months. Never only make a minimum monthly payment.

Pick Your Debts

Get a credit card to use at your local gas station or grocery store. Then begin using it instead of paying cash. Take the cash to cover these purchases, and sit it aside. At the end of the month take the cash and pay off the credit card statement. This will go even further towards rebuilding your credit after your bankruptcy.

By following these steps you’re going to be in a position of being able to finance a new car or home within a couple of years. You first just have to show you can be trusted to pay off your debts every month. Then you’re showing you’re responsible and you’ll be able to make bigger purchases.

Insurance

Most all credit card companies offer insurance to cover your monthly payments in the event you lose your job. Be sure you take advantage of this insurance. If something unexpected does occur, then you’re covered. Don’t take any unnecessary chances with your financial future. You don’t want to put yourself in the same situation as you did before. The cost of this insurance is very low.

http://bankruptcy-guide-to.com/a/332328/Bankruptcy+%e2%80%93+Getting+Your+Credit+Back.html

Bankruptcy – Is It The Right Choice?

If you’re facing a mountain of debt that just continues to keep growing, bankruptcy may seem to be the only way out. You’re not alone. Hundreds of thousands of Americans face this situation every year. Filing for bankruptcy may seem like an easy solution to your problems, but is it really the right choice?

Did you know that a bankruptcy will show up on your credit report for 10 years? This will make getting any type of loan, credit card, or a home mortgage, next to impossible. Sure, there may be a few lenders who will extend you credit after a few years, but only after jumping through hoops and paying a very high interest rate. Another aspect to consider before filing for a bankruptcy is that some of your possessions may actually be repossessed. When the bank finds anything of value that is not considered a necessity, it may seize the items to pay off your debts.

You should also keep in mind that not all debts are canceled by filing a bankruptcy. If you owe taxes to the IRS, past due child support, alimony, or any court judgments, you will still have to pay these off. They are not erased with a bankruptcy.

Filing for bankruptcy should be avoided if at all possible. In addition to future credit restrictions, filing a bankruptcy will even prevent you from holding some various jobs in the workplace. You can’t be an accountant, or hold a magistrate position.

The only real advantage of filing a bankruptcy is that the phone calls at all times of the day and night will stop. Your debts will be written off when your bankruptcy is discharged. You’ll have peace of mind once again.

Instead of only considering filing for bankruptcy to get out from under all the debt you’ve incurred, think about trying debt consolidation. Debt consolidation companies will help you to manage your bills. They have the ability to put some programs in place to help you. They can contact your creditors and make special payment arrangements, new loans, lower interest rates, extended loan periods, etc. Many times this can help prevent you from having to file for bankruptcy. The debt consolidator will make the payments to your creditors and handle everything. All you do is make one monthly payment to the debt consolidation company.

With the recent bankruptcy reform law, filing for a Chapter 7 bankruptcy is next to impossible. A Chapter 7 filing lets you keep your home and property, but discharges all of your debts. Chapter 13 is a re-organization of your debts that you pay off in 3-5 years. Most all filings are now forced into a Chapter 13.

The new law also makes it mandatory for you to meet with a credit counselor before filing for bankruptcy. You must meet with them for at least 6 months. Because of this new law, there is a shortage of credit counselors, forcing you to wait until you can find one before you can begin filing your bankruptcy. You must also attend a money management course, at your own expense.

It is always a good idea to speak with an attorney who specializes in bankruptcy law before making a decision to file. By knowing all of your options, and doing some research, you may very well find a solution to getting out of debt without having to file for bankruptcy.

http://bankruptcy-guide-to.com/a/332521/Bankruptcy+%e2%80%93+Is+It+The+Right+Choice%3f.html

Bankruptcy Facts You Must Know

Over the years, filing for bankruptcy has become almost as easy as applying for a credit card. The last 10 years have seen the number of bankruptcies double in size. The massive increase in bankruptcy filings also got the attention of our government. As a result, new laws were passed and went into effect in October 2005. These new laws have made it much tougher for individuals and businesses to file for bankruptcy.

This new law has also caused quite a stir among those trying to file for bankruptcy, and those who handle the cases. The restrictions on being to qualify to file a Chapter 7 bankruptcy have been severely tightened, and the Chapter 13 law has also been stiffened.

Some of the many changes to the bankruptcy law include:

· Credit counseling for 6 months prior to filing for a bankruptcy. · A debtor must have filed tax returns for the previous 4 years in a row before being able to file for a bankruptcy. · You must be able to prove with a good reason why the courts should take away your personal debts. This has forced more people to pay off their debts that previously would have been taken away by a bankruptcy in the old system. · Paying off a Chapter 13 bankruptcy within 3-5 years

Chapter 13 Bankruptcy

A Chapter 13 filing allows the debtor to keep some of their assets and reorganize their finances to pay the debts off. You must have a steady income in order to qualify. The court will set up a repayment schedule, and determine for you what your payment amounts will be. This type of bankruptcy filing is good for those people who have gotten into financial trouble, but still have a steady income and a means to pay off some of their debts.

Chapter 7 Bankruptcy

When someone has no means to pay off their debts they can file a Chapter 7 bankruptcy. This means that the court will completely liquidate your assets. In most cases though, you are allowed to keep your home, car, and other living necessities. Filing a Chapter 7 bankruptcy has become extremely difficult with the enactment of the new bankruptcy reform law. You will definitely need the advice of a qualified attorney prior to filing.

Something you need to keep in mind with either form of bankruptcy filing is that certain debts are not allowed to be included. You will still have to continue to pay off these debts completely. They include: · Unpaid Federal, State, or local taxes · Past due child support · Alimony · Student loans · Court related costs

Another factor to keep in mind is that any bankruptcy filing will remain on your credit report for 10 years. This can make getting any type of credit card, car or home loan, or credit of any kind, extremely tough. While you may still be able to find loans for a car or home, the interest and added fees will be very high. Keep these facts in mind when considering filing for any form of bankruptcy. Consider other possibilities and talk to credit professionals. You may find a way out of your financial trouble without having to file a bankruptcy.

http://bankruptcy-guide-to.com/a/332957/Bankruptcy+Facts+You+Must+Know.html

Bankruptcy - The Dreaded Word!

Bankruptcy - the dreaded word! Unfortunately, in today's fast-paced, materialistic society, this legal procedure is being pursued at an alarming rate. Bankruptcy law firms, credit counseling services and even do-it-yourself bankruptcy kits are advertised everywhere.

No one in their right mind wants to file for bankruptcy, but in the end this procedure could be the best decision they can make for themselves and their family. Depending on the type of bankruptcy chosen - Chapter 13 or Chapter 7 - one may be able to keep everything they own and begin a new financial life.

Let's look at the first type - Chapter 13. Chapter 13 involves a list of all creditors, both secured and unsecured. By secured debt, we mean debt that is secured by property - one's home, car, etc. Unsecured debt is just what the term implies - unsecured. These debts would include credit cards, personal loans, etc. Under a Chapter 13 petition to the court, usually secured debt is left as is, in other words will be included in the plan to be paid in full. Unsecured debt will be dealt with by petitions from each creditor to the court. The court will make the final determination as to how much of each debt will be paid. Once these amounts are determined by the lawyers involved, a 1, 3, or 5 year plan is developed to help the debtor pay down the debts owed. Chapter 13 bankruptcy is normally recommended for those who are about to lose their home to foreclosure. Many times, unsecured creditors will not even show up at the required creditor petition meetings and will, therefore, forfeit all debt owed to them.

Chapter 7 bankruptcy is handled in a different manner altogether. This type of bankruptcy allows one to keep property already paid for. In some cases, if foreclosure is imminent, one may be able to keep one's home while, in return, give up other assets such as automobiles, possibly furniture or other property that is considered secured debt. Chapter 7 bankruptcies may seem extremely harsh, but remember, one will be able to start over with a clean slate.

Both chapters of bankruptcy require a lot of paper gathering. If one uses a bankruptcy lawyer, a package is usually provided in order to provide the lawyer with all required information needed to file the petition to the court. This information consists of all personal data about oneself such as address, phone, social security number, work information, wages earned, etc. Plus the firm needs a list of all creditors. Please remember, leaving even one creditor off this list can mean the judge may dismiss the case outright! Do not LIE!

There are self bankruptcy kits available online and off for one to use if one so desires. They are quite inexpensive, but may require more work than one would like to do by oneself. Therefore, a good lawyer specializing in bankruptcy law is highly recommended.

Bankruptcy should be avoided at all costs, but if all else fails, it is an option. One should probably consult a good credit counseling service first before pursuing the dreaded bankruptcy route. If you chooses this route, use a service that is non-profit such as the Red Cross or other non-profit organizations. Please be aware, there are many credit counseling scams out there.

To conclude, bankruptcy can relieve a lot of stress and can be a fresh start for anyone suffering from heavy debt. But, please use it only as a last resort when everything else fails. Plus, once bankruptcy has been incurred and discharged, use caution when re-establishing credit so you does not have to repeat this process again down the road.

http://bankruptcy-guide-to.com/a/333514/Bankruptcy+-+The+Dreaded+Word!.html

Personal Loan After Bankruptcy: Can You Qualify?

If you want to qualify for a personal loan after bankruptcy there are four key areas that will determine how successful you are:

1) Your credit score 2) Collateral 3) Existing debt 4) Time

Let’s look at each factor in more detail and how they can help you increase your chances of qualifying for a personal loan after bankruptcy:

1) Credit score: In order to qualify for a personal loan after bankruptcy you will need to meet the lender’s minimum credit score criteria, provided the lender extends loans to individuals with a recent bankruptcy. You’ll want to find out before applying for a loan: Simply ask the lender if they consider applicants with a bankruptcy on their credit report.

Let’s suppose the lender does. How can you increase your credit score enough to qualify for a personal loan after bankruptcy?

The first step is to order copies of your credit reports from the three major credit reporting agencies (Experian, Equifax, and Trans Union). Next, make sure any inaccurate or obsolete negative information on your credit reports is removed or updated. I go into detail on this in After Bankruptcy Credit Solutions. I also explain how to legally add positive lines of credit to your credit reports, which is a very powerful way to increase your credit score – but I’ll save that for another article.

2) Collateral: Another major factor in obtaining a personal loan after bankruptcy is how much collateral you have. Why? Because if a lender has collateral that they can go after (i.e., equity in your home) should you default on the loan, that reduces their risk dramatically. So if you can provide collateral to the lender, it can increase your chances of qualifying for a personal loan after bankruptcy.

3) Existing debt: You don’t want to have too much debt when you apply for a personal loan after bankruptcy. If you do, the lender may feel you don’t have the capacity (enough income) to cover the loan payment, because you have too many other monthly expenses to pay (i.e., credit cards, auto payment, etc.) – as a result you could get turned for a personal loan after bankruptcy.

On that note, find out if the lender has a minimum income requirement, or debt-to-income ratio you need to meet. If they do, make sure you meet their minimum requirement before you apply for the loan.

4) Time: It’s been said that “time heals all wounds” – well, when it comes to obtaining a personal loan after bankruptcy this can certainly be true if you’ve developed a positive payment history since your bankruptcy.

When a lender is deciding whether or not to extend you a personal loan after bankruptcy, your credit report will play a major role. Generally speaking, if your credit report reflects a positive payment history for at least two years since your bankruptcy, it will certainly help.

We have looked at the four major factors that will determine whether or not you qualify for a personal loan after bankruptcy: Your credit score, collateral, existing debt, and time. To the extent you can strengthen each one of these you increase your chances of being approved for a personal loan after bankruptcy.

Even if you can’t qualify for a personal loan after bankruptcy immediately, don’t be discouraged! Remember, time can heal all wounds when it comes to qualifying for a personal loan after bankruptcy. Just make sure to focus on increasing your credit score, pay your existing bills on time, don’t take on too much debt, and build up your net worth.

The company and product/service names referenced in this article are the trademarks, registered trademarks or service marks of their respective owners. None of the owners have sponsored or endorsed this article.

DISCLAIMER:

This information is designed to provide only a general overview of the subject matter herein.

This information is provided with the understanding that neither the publisher nor author is engaged in rendering legal, accounting or other professional advice. If legal or other expert assistance is required, the services of a professional should be sought.

Neither the publisher nor author shall be liable for any loss or damages, including but not limited to special, consequential, incidental or other damages, caused by the information contained herein.

http://bankruptcy-guide-to.com/a/333155/Personal+Loan+After+Bankruptcy%3a+Can+You+Qualify%3f.html

How To Start An Online Bankruptcy Forms Processing Service

Due to the dramatic increase in technology, business professionals now have the ability to outsource their skills and earn extra money working from home as a bankruptcy forms processor. Unlike an attorney or notary public, a bankruptcy forms processor does not have jurisdictional limits. In other words, a bankruptcy forms processor could live in Yellow Springs, Ohio and prepare bankruptcy petitions, pleadings, Motions and other court documents for attorneys practicing in California, New York or any other U.S. state.

In fact, a bankruptcy forms processor can set up a bankruptcy business in their home with very little money and earn a full-time income very quickly. This concept has also opened the door for attorneys practicing in other areas of law to open a sideline bankruptcy practice, and many of these attorneys seek a freelance forms processor to process their paperwork for them.

This is where you as a bankruptcy forms processor can fill a need that is becoming more popular as electronic filing procedures become more the norm. In fact, some states now require electronic filing of all court documents. Paper documents are only accepted by the court from consumers or in other rare circumstances. It will not be long before all the states will have electronic filing procedures in place and those resisting the change will be left behind.

A typical bankruptcy forms processing business might operate like this:

1. Client either downloads or is emailed a set of Client Intake Forms in PDF format to print and fill out at their leisure.

2. Client will fax or email their completed forms to the attorney or forms processor for review. If the attorney decides to accept the bankruptcy case, the forms processor can begin drafting the bankruptcy petition from the information provided on the Client Intake Forms.

3. Areas of the Client Intake Forms that are not properly completed by the client or containing statements that require a more detailed answer would be easy to take care of. The forms processor or attorney will simply call up the client and obtain the information. No appointment would be necessary.

4. After the drafting of the bankruptcy petition, the forms processor saves the document in PDF format and sends it to the attorney as an attachment on an email.

5. At this point the attorney may wish to meet with the clients to review their bankruptcy petition before filing, but it is not absolutely necessary. Some attorneys I worked for never meet the client face-to-face except when they showed up at court. They communicated with the client by email or telephone.

Note: Electronically filed documents do not require the client’s signature so it is not necessary to meet the clients face-to-face before filing the bankruptcy petition. An attorney is provided with an electronic signature by the court that he uses to sign all electronic documents filed on behalf of the client he or she represents.

6. After the attorney receives the bankruptcy petition by email, he or she will save it on their computer under the client file name and begin the review. The attorney can either print out the bankruptcy petition and make changes with an ink pen, or review it on the computer screen and note any changes in an email to the forms processor.

7. After the attorney has approved or made changes to the bankruptcy petition, he or she will email it back to the forms processor. The forms processor will make the changes and prepare a final bankruptcy petition ready for electronic filing. The forms processor emails the final petition to the attorney for final approval.

8. Upon approval by the attorney, the forms processor will electronically file the bankruptcy petition with the proper court or email to the attorney for printing, copying and filing.

As you can begin to see, it would be very easy to start a forms processor service working from home. So if you were like me and are tired of the office politics and playing the mental games, you now have the opportunity to work from a peaceful home environment where you can focus more on each case and give your clients the personal touch that will set your business apart from the big companies.

This article is a book excerpt from, “How to Start a Bankruptcy Forms Processing Service” by Victoria Ring, Certified Paralegal. More information is available online at http://www.50statenotary.com/bankruptcybook/

Victoria Ring is a Certified Paralegal and Notary Signing Agent. She started the first electronic bankruptcy paralegal service on the internet (The Lawyer Assistant) to serve attorneys nationwide. Victoria has authored 17 books and 850 articles since her publishing career began in 1988.

http://bankruptcy-guide-to.com/a/2818/How+To+Start+An+Online+Bankruptcy+Forms+Processing+Service.html

After Bankruptcy Credit #14

When it comes to filing for bankruptcy most people believe that it will take an entire seven years before they can receive credit again. In some cases this is true but in the majority of cases there are things you can do that ensure that you can start building after bankruptcy credit right away.

The first thing you should do when you need after bankruptcy credit is to check your credit report. Your credit report is used by any prospective lenders to gauge your credit worthiness. Any small mistakes on this report can damage your chances to receive after bankruptcy credit.

Credit reports are available from several agencies online for a fee. You provide some detailed and personal information regarding yourself and your credit report will be delivered immediately after you have paid the fee.

Once you have the report youll need to be certain that you check each entry for accuracy. If there is anything incomplete or inaccurate you should contact the company that reported this information. This could be a financial institution, a credit card company or a department store.

Speak to a representative in the credit department and explain the problem. Once they agree to fix it get their word that they will be correcting it on your credit report as well. Order another credit report within a few weeks to ensure this has occurred.

If you need after bankruptcy credit but you are not comfortable with contacting companies who have reported inaccurate information yourself, than you can hire someone to do it for you.

There are several credit repair agencies who work with people wanting to secure after bankruptcy credit. They will not only look over your credit report and work with you to correct any mistakes they will also assist you with getting credit.

One way to receive after bankruptcy credit is to apply for a secured credit card. A secured credit card is offered to people who have had credit difficulties in the past. It works very well for people who need after bankruptcy credit.

The process is fairly simple. You apply for the credit card, which will be a major credit card, and you give the credit card company a deposit. This deposit will reflect your spending limit on the card. The credit card company sees this as a safe way to offer after bankruptcy credit because the funds placed on the card are covered in the event you fail to make payments.

This type of arrangement is also beneficial in that it helps you rebuild after bankruptcy credit. If you make the payments in full on time youll soon have a good reference on your credit report.


http://bankruptcy-guide-to.com/a/327681/After+Bankruptcy+Credit++%2314.html

Bankruptcies #28

Bankruptcies

I have a confession to make. I'm in way over my head when it comes to debt. It's my own fault and I admit that. For several years, I couldn't afford to buy anything I wanted, so I paid with plastic. Little did I know that decision would come back to haunt me. I owe close to $20,000. My credit score is very high and I am very proud of that. I live paycheck to paycheck, not always have the slightest clue how I will pay my bills each month. And I'll also admit that last year, when I heard that the laws for bankruptcies were changing, I contemplated filing. I hated the mere thought of contemplating something that I knew would hurt my excellent credit. As the deadline for filing bankruptcies before the new law approached, my husband and I debated for days. In the end, we decided to not do it. I realized that it was our own carelessness that had gotten us into debt and I should accept responsibility for it. Our best friends however, chose to file while only being in debt a few thousand. What I found exceptionally
irritating was the fact that right before they filed, they purchased two brand new cars and went on a cruise. Basically, since they charged the cruise, they didn't pay a cent for it. To me, that's the same concept as stealing.

The amount of bankruptcies in 2005 jumped almost 30% as people rushed to get their filings completed before the new laws took hold. Personal bankruptcies totaled almost 2.1 million across the country. Those statistics make it the largest number of bankruptcies filed in any 12 month period in our history. That's scary. Think about that - 2.1 million people found themselves in financial trouble last year. Everyone who filed has their own reasons, whether it be credit card debt, job loss or medical bills. The list of reasons goes on for miles. As a matter of fact, high medical bills are the main reason for the large number of bankruptcies. Let's face it, most people do not have adequate health care. All it takes is for someone to get hospitalized or ill and suddenly they find themselves in severe debt. That's worse than scary, it's sad.

I understand the need for the new laws, I really do. That doesn't mean I agree with them in every case. The reason that laws are changing is because too many people were taking advantage of filing bankruptcies. They'd charge up their credit cards with new furniture purchases, exotic vacations, and many things they absolutely had no true need for. Then, they'd file for bankruptcy and poof - their money woes were over. On the other hand, since the new laws have gone into effect, the people who face overwhelming debts that could not be controlled are facing more hurdles in order to get a fresh start. Is that fair? Of course not. But, as you know, it only takes one person to ruin it for everyone else. And lots of people did.

If the main reason for the onset of bankruptcies is high medical bills, why doesn't the government take a look at altering those issues? If credit card companies are complaining that they don't get paid when people file for bankruptcy, why give people such a high credit line? Sure, many bankruptcies could be avoided with some common sense usage, that's for certain. But what about those who really are struggling? Who is looking out for them?


http://bankruptcy-guide-to.com/a/344709/Bankruptcies++%2328.html

Your Legal Helpers Irving bankruptcy lawyer wants you to choose the best legal help for your case.

Your Legal Helpers Irving bankruptcy lawyer is an experienced professional serving a broad scope of clients. As a respected Irving bankruptcy lawyer, he believes that it is very important for each client to receive the best service at affordable fees. That is why your Irving bankruptcy lawyer offers a free consultation. That way you can compare what he and others have to offer.

Your Irving bankruptcy lawyer will gladly answer any questions you may have and once hired, he can recommend what he feels is your best course of action. At the end of your free consultation, you are under no obligation to pay your Texas bankruptcy lawyer anything until you have chosen him to represent you in your case.

Things to consider when choosing an Irving bankruptcy lawyer.

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In times of financial crisis when legal advice is needed, choosing the right Texas bankruptcy lawyer is a critical decision. Consider the following points in making any decision to retain bankruptcy legal counsel:

Choose an experienced Texas bankruptcy lawyer who understands the law of bankruptcy procedure in your area, not attorneys who practice in everything from criminal law to corporate mergers. Make sure you choose a seasoned bankruptcy attorney who understands the local rules, the Trustees' preferences, the local judges' rulings, and how to work with the local creditor attorneys.

Choose a Texas attorney with a record of success who has earned the respect of his colleagues. Since the work done by your attorney will have an impact on your financial life for years, it pays to choose the right attorney.

Choose an attorney whose fees are fair. Attorney fees can be from affordable to cost-prohibitive. Your attorney should establish a fair fee and provide you with a flexible payment plan. Like a good accountant, a good bankruptcy attorney can save you much more than you have to pay in fees. With good exemption planning, careful analysis of any transfer issues, and experienced advice on how to handle different kinds of debts both before and after filing, a good attorney can save you money.

Choose an attorney you can trust and respect. Be comfortable with the attorney you choose, because he will guide you through a very difficult period in your life. However, do not be blinded by former allegiances. The general practice attorney down the street might be a great person, worked with you in the past, and quote you a really good price, but that doesn't make him or her the best choice.

We have helped over 40,000 clients discharge over $500,000,000 in debt. With our state-of-the-art computer system and experienced Texas attorneys, we can offer our aggressive representation at low, flat fees. In addition, we offer several flexible payment options to meet the individual needs of our clients.

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Needing a Houston bankruptcy lawyer is no longer a stigma

Nowadays, more individuals are seeking a Houston bankruptcy lawyer to help them straighten out their finances, stop the harassing phone calls and protect their assets from repossession. Finding the qualified Houston bankruptcy lawyer is simple. You can begin your debt consolidation counseling with a free informational phone call to a Houston bankruptcy lawyer at Legal Helpers - 1-888-743-5787.

Every sponsoring Houston bankruptcy lawyer can handle both Chapter 13 and Chapter 7 filings.

Click here for Our Free Legal Evaluation Form

As the largest consumer bankruptcy practice in the nation, every sponsoring Houston bankruptcy lawyer is qualified to handle both Chapter 13 and Chapter 7 filings. With over 25 offices around the country and lawyers answering the telephones six days a week, Legal Helpers is striving to provide the highest level of client service available. Every sponsoring Texas bankruptcy lawyer's aggressive representation and extensive experience has helped Legal Helpers earn a national reputation for excellence.

Chapter 7 versus Chapter 13 - Which is best for you?

Because every Texas bankruptcy lawyer has extensive experience, they can recommend the best course of action for you. Chapter 7 bankruptcy may eliminate most kinds of unsecured debt including credit cards, medical bills, most personal loans, judgments from car accidents, and deficiencies on repossessed vehicles. With Chapter 7 you can get rid of your debt and can typically keep all of your property as long as your car and mortgage payments are current and you have no significant equity in your property. A Chapter 7 filing can stop creditor harassment, eliminate repossession debts, stop garnishments, end law suits, lower your car payments and help you rebuild your credit while keeping your house, car and personal belongings.

Chapter 13 is an interest-free debt repayment plan through which you consolidate your debts and make a payment on your debt over a three to five year period. While in Chapter 13 debt repayment plan, your creditors cannot collect from you and are required by a Federal Court to adhere to the terms of the plan. For a Chapter 13, you must be working or have a consistent source of income for your repayment plan.

Federal legislation currently passed makes it difficult for you to gain a fresh start. Contact the experienced Texas attorneys of Legal Helpers today!

Knowledgeable advice at reasonable rates

Your sponsoring Legal Helpers Texas attorney will quote you an estimate of the fee without obligation. In Chapter 13 cases, most of your fees are paid, interest free, through your Chapter 13 repayment plan. Our first priority is to get you the relief you need.

Legal Helpers' maintains one of the most sophisticated consumer law practices in the country. We remain up to date on the current industry trends. We provide much of this information on our web site as part of our online Resource Center. The Resource Center contains helpful links regarding rebuilding your credit, protecting your property, articles, glossary of terms and a list of friendly lenders.

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Your Fort Worth bankruptcy lawyer can put Chapter 13 to work for you.

Your Legal Helpers sponsoring Fort Worth bankruptcy lawyer can get you the advantages of Chapter 13 -- an interest-free debt repayment plan. By filing Chapter 13 on your behalf, he can help you consolidate your debts and pay them off over a 3 to 5 year period. Your Fort Worth bankruptcy lawyer will also explain that while you're in a Chapter 13 debt repayment plan, your creditors cannot collect from you and are required by a Federal Court order to adhere to the terms of the plan.

For a qualified Fort Worth bankruptcy lawyer contact Legal Helpers

Use this financial evaluator to see if you should consider bankruptcy

Your Fort Worth bankruptcy lawyer will meet with you for free to see if Chapter 13 is the best strategy for your current situation. As an experienced bankruptcy lawyer, he has helped hundreds of other clients deal with similar problems. For Chapter 13 bankruptcy, you must be working or have a consistent source of income for your repayment plan to be approved by the court. Your Texas bankruptcy lawyer will point out that not only must you be able to pay for your monthly living expenses, but you must also be able to make a payment to the court to consolidate your debts.

Debts that are generally consolidated in a Chapter 13 bankruptcy are mortgage arrears, balances on vehicle loans, student loans, credit card debts and other unsecured debts. All outstanding debts must be included in the Chapter 13 repayment.

Stop foreclosure immediately.

If your home is presently in foreclosure, a Chapter 13 filing will stop the foreclosure any time prior to the sale, and allow you to repay your mortgage arrears through your Chapter 13. You will still be obligated to make all future mortgage payments directly to the mortgage company, but they may not foreclose to collect any outstanding mortgage payments.

Save your car

If the "repo" man is looking for your car, a Chapter 13 will also stop the finance company from repossessing your car. The past due payments and the entire balance on your vehicle loan will be consolidated into the Chapter 13, which you will pay off over the next three to five years. The vehicle finance company can no longer repossess your car. Only one payment is made, and that is to the Chapter 13 trustee. Under certain circumstances we can even recover your vehicle after repossession and consolidate the remaining balance.

Stop creditor harassment

If creditors are calling at all hours, you can put an end to it immediately simply by hiring Legal Helpers to represent you. Upon retaining our services, we provide you with a special telephone number so that you can refer your creditors to us. We will keep the creditors off your back, and you can stop paying your creditors immediately.

Legal Helpers is the nation's largest and most sophisticated consumer debt consolidation practice. We have helped over 40,000 clients discharge over $500,000,000 in debt. Every one of our Texas attorneys will aggressively represent you. We understand how to use the laws to save your home and possessions.

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Experienced Dallas bankruptcy lawyers at Legal Helpers

The law firm of Legal Helpers has sponsoring Dallas bankruptcy lawyers that have extensive backgrounds in a wide variety of debt consolidation issues and bankruptcy filings. As the largest consumer debt consolidation law firm in the country, specializing in Chapter 7 and Chapter 13 bankruptcy filings, you can be assured that all of our Dallas bankruptcy lawyers are experienced in the business.

Legal Helpers Dallas bankruptcy lawyers are experienced in all aspects of consumer debt consolidation laws. Our Dallas bankruptcy lawyers will work as aggressively for you.

Need to find good Dallas bankruptcy lawyers?

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Working for your interests

When you hire the Texas bankruptcy lawyers from Legal Helpers, you are ensured that they will work for your best interests. Many debt consolidation programs are sponsored by creditors, and are not interested in your welfare. The Texas bankruptcy lawyers from Legal Helpers will study your finances carefully, explain your alternatives and then suggest solid, practical solutions to your problems. Legal Helpers has literally helped thousand of clients, discharging millions of dollars. We have the background and expertise to really protect your interests, not those of your creditors.

Many debt consolidation programs are private entities, sponsored by creditors and don't have the same strict legal requirements to protect borrowers interests. These agencies are biased toward keeping their clients paying their creditors rather than filing for protection. Plus, the fees can be steep, usually about 10% of the total loan.

Beware - not all credit counseling plans are equal

A good credit counseling plan can be beneficial if it is set up properly and the payments manageable. People with debts totaling over $5,000 should consult with an attorney specializing in Chapter 7 and Chapter 13 bankruptcy filings before entering into a credit counseling program. The Texas bankruptcy attorney will help determine if they can afford a debt consolidation program and if it fits their needs and interests.

Legal Helpers - the largest and most sophisticated Chapter 7 and Chapter 13 practice

Legal Helpers can help you file for protection for any and all of the 50 states. A Chapter 13 filing can consolidate all your past due payments and balances and give you between 3 and 5 years to pay them off, and any cosigners receive the same legal protection. This can help stop wage garnishments, car repossessions, home foreclosures, creditor lawsuits and bill collector harassment.

A Chapter 7 is one of the most effective ways to immediately stop garnishments. Garnishments can diminish your hard-earned income making it nearly impossible for you to afford basic necessities. By filing a Chapter 7 and stopping the garnishment, you will be able to use your income for more important necessities in life and start saving for your family's future.

Fresh starts at reasonable flat rates with payment options

We will always give you an estimate, free of charge, before we begin. Unlike other firms, we offer you a choice of payment options and allow you to pay through a flexible payment plan. We have helped over 40,000 clients eliminate over $500,000,000.

Legal Helpers is one of the few firms that assists their clients in finding lenders that are willing to extend credit to debtors after the process is complete. A list of mortgage brokers, car dealerships and credit card companies that we have found helpful to our past clients is located in our Resource Center. Our Resource Center also contains other informational links for your road to a fresh start.

Here are some tips to successfully reestablishing your credit

1. Open a checking or savings account.

2. Apply for store and gas credit cards that you would normally pay cash

3. Pay your utility bills and rent on time for at least a year.

4. Write a letter to each credit reporting agency explaining the circumstances that lead to you filing.

http://www.legalhelpers.com/legal_helpers/dallaslawyers.html

How to choose a Plano bankruptcy attorney

When in debt, choosing the right Plano bankruptcy attorney is the key to financial well being. Consider the following points in making your decision to retain a qualified Plano bankruptcy attorney:

Experience: Choose an experienced Plano bankruptcy attorney who understands Texas laws, local, state and federal.

Click here for Our Free Legal Evaluation Form

Reputation. Choose a Plano bankruptcy attorney with a record of success who has earned the respect of his colleagues. Since the work done by your Plano bankruptcy attorney will have an impact on your financial life for years, it pays to choose a Texas bankruptcy attorney with a record of successful bankruptcy filings.

Reasonable fees. Choose a Texas bankruptcy attorney whose fees are fair. Legal fees can run from affordable to cost-prohibitive. Your Texas lawyer should work with you to establish a fair fee and provide you with a flexible payment plan. Like a good accountant, a good lawyer can save you a significant amount of money.

Law firm size. Choose a Texas lawyer who works for a larger firm. In many cases, large firms have advantages over small firms. For example, at a larger firm it is likely a lawyer will be available to discuss with you a pressing issue.

Get the best legal and financial advice with a lawyer from Legal Helpers

Legal Helpers is one of the most sophisticated consumer debt consolidation law firms in the country. With a client base of over 40,000, we now represent over 10,000 new clients each year, making Legal Helpers the largest consumer debt consolidation firm in the country.

Legal Helpers has offices located throughout the country with lawyers answering the phones six days a week. We are always striving to provide the highest level of client service available. Our aggressive representation and extensive experience have earned us a national reputation for excellence in the representation of debtors in financial stress.

The experience and service that counts

Legal Helpers has the background to explain your alternatives and suggest solutions to your debt problems. We provide a free 24-hour information line to answer many of your questions and a state-of-the-art computer system that allows us to have your records on the computer within seconds. Our Plano bankruptcy attorneys understand that this is a difficult time in your financial life. They want to keep you updated on bankruptcy information and the options available for your specific case.

http://www.legalhelpers.com/legal_helpers/planoattorney.html

Reliable Texas Bankruptcy Lawyers for Filing Bankruptcy in Texas

The sponsoring Texas bankruptcy lawyers who work for Legal Helpers are some of the most experienced consumer debt consolidation attorneys in the nation. These Texas bankruptcy lawyers handle only Chapter 7 and Chapter 13 consumer cases so clients know that their cases are being handled by the best and most experienced Texas bankruptcy lawyers.

Professional and experienced Texas bankruptcy lawyers.

Our clients know that all of Legal Helpers' bankruptcy lawyers will aggressively represent them. As opposed to many debt consolidation programs, which are sponsored by creditors, our bankruptcy lawyers are obligated by law to protect their clients' interests only. Before filing bankruptcy in Texas, The bankruptcy lawyers will study your finances carefully, explain your alternatives and then suggest solid, practical solutions to your problems. Legal Helpers has literally helped thousand of clients, discharging millions of dollars in debt. We have the background and expertise in bankruptcy to really help you, not your creditors.

Debt protection and consolidation

Legal Helpers has the largest and most sophisticated consumer bankruptcy practice. Legal Helpers can help you consolidate your debts for any and all of the 50 states. When we file a Chapter 13 bankruptcy, you receive immediate protection from your creditors by an automatic stay - a court injunction that prevents almost all collection activity against you. This can help stop wage garnishments, car repossessions, home foreclosures, creditor lawsuits and bill collector harassment. Upon hiring us, we will answer all of your creditor phone calls and help you gain the needed time to repay your mortgage arrears.

Filing chapter 13 bankruptcy in Texas can consolidate all your past due payments and balances and give you between 3 and 5 years to pay them off.

Your cosigners receive the same protection that you receive under Chapter 13. Through a Chapter 13, we will protect your cosigners from collection activity, and the creditors must wait to be paid through the Chapter 13. So, if you friend or relative cosigned on your vehicle, and you are having trouble affording the payments, we can put your remaining balance inside a Chapter 13.

State-of-the-art service and peace of mind

Legal Helpers offers the highest level of client legal service with our state-of-the-art computer systems and a 24-hour information hot line. You can reach one of our attorneys by phone six days a week. We give you peace of mind so you can stop worrying about your finances and begin to rebuild your life.

Fresh starts at reasonable flat rates with payment options

We will always give you an estimate, free of charge, before we begin. Unlike other firms, we offer you a choice of payment options and allow you to pay through a flexible payment plan.

Legal Helpers not only helps clients obtain debt relief, but also is one of the few firms that assists their clients in finding lenders that are willing to extend credit again. A list of mortgage brokers, car dealerships and credit card companies that we have found helpful to our past clients is located online at our Resource Center.

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Does credit counseling help debtors

I hope all of you had a Happy Thanksgiving! Over the holiday, I read some interesting articles debating the value of credit counseling requirements that are part of the bankruptcy reform legislation. Some people are happy about these new requirements because they feel credit counseling offers debtors alternatives that they would not have been offered without credit counseling. Others see these requirements as yet another obstacle that must be overcome before debtors can obtain true debt relief.

The US TRustee's office is required to review programs offered by any agency seeking to be approved as a pre-filing credit counseling provider and as a post-filing educational course provider. The US Trustee requires companies, among other things to demonstrate extensive credit counseling experience, be bonded, and offer a bona fide counseling session (though the session could be over the phone or on-line and not necessarily done in person). The US Trustee's office requires any company seeking to be approved to go through an extensive application process highlighting its experience and conducts a detailed review of its programs. This review and approval process is meant to insure that debtors are receiving good information from reputable, independent companies that are focused on providing a service to the public and not profit motives.

At first glance, it appears that the legislation is attempting to insure that debtors are getting helpful information from companies that have the debtor's best interests at heart. However, many other people don't see it that way. The Editor and Publisher of Privacy Times, a Washington newsletter that covers the information world, Evan Hendricks (according to the Lincoln Journal Star) sees something missing. "They say they'll advise (potential filers) of all their options," he said. "But some of those are legal options, and credit counselors are not licensed to practice law." He feels that the motives of some of the credit counseling agencies are in meeting the needs of creditors, particularly large, financial services companies. "It looks like a way to discourage people from filing bankruptcy and places someone between the consumer and their legal representative," he said.

Credit counseling agencies admit that they are partially supported by creditors who benefit when someone arranges a payment plan as opposed to filing for bankruptcy. However, more than half of their budgets typically comes from fees paid by clients. Typical credit counseling fees vary, but are usually around $50 for a single debtor and $60 for a couple for both the pre-filing counseling and the post-filing educational session. The US Trustee requires that agencies who are approved also offer services "without regard to ability to pay" insuring that some debtors can obtain the services without cost, but that is typically handled on a case-by-case basis and is up to the credit counseling service provider to determine on its own.

The question, though, is whether or not the counseling helps to educate debtors, as it was intended? Or, is it simply another barrier to debt relief? Credit counseling advocates say that they don't steer potential bankruptcy filers away from bankruptcy. They insist that they discuss all sorts of financial issues with debtors. Obviously, the initial information a credit counselor asks the debtor is about income and monthly living expenses. But, credit counselors insist they also look at all of the debtor's assets, liabilities and net worth as opposed to just money management issues. Credit counselors insist debtors will benefit because they will better their knowledge of financial matters. Credit counseling advocates don't believe consumers have bettered their knowledge in the past.

From my perspective, I always viewed my job as a counselor exploring bankruptcy options with potential clients to review ALL options. As their attorney, or potential bankruptcy attorney, I have ethical obligations to review all of these things credit counselors say they are exclusively able to review. I also have legal obligations to make sure bankruptcy is in my potential client's best interests. I don't believe a credit counselor is more qualified than I am in analyzing my potential client's financial situation. In fact, I believe attorneys are better qualified, have had more training, and have more obligations to potential clients than credit counseling agencies do. Obviously, Congress feels that credit counseling agencies offer a better exploration of these issues than attorneys. I strongly disagree with this conclusion.

Also, as one staff attorney from the National Consumer Law Center pointed out that the credit counseling and debtor education requirements are not selectively imposed on debtors who are considering bankruptcy because of financial mismanagement. While many people find themselves considering bankruptcy because of bouts of financial irresponsibility and mismanagement, there are a lot of debtors who are considering bankruptcy because of circumstances that had nothing to do with financial mismanagement or irresponsibility. Health issues, divorces, and unexpected layoffs have caused many more people to file for bankruptcy than simple financial mismanagement. As John Rao of the National Consumer Law Center (as quoted in the Lincoln Star Journal points out: people "caught in a divorce or with health problems will have to go through a lot more hoops to get relief, which is not fair." As I see it, people considering bankruptcy because of these issues don't benefit at all from "education" or "counseling" because education and mismanagement was never the problem.

For the people who are considering bankruptcy due to uncontrollable, unforeseen, and unplanned health and marital problems, the credit counseling and debtor education requirements serve only to put up roadblocks to relief don't provide any benefit. There is no individual benefit to the debtor, nor does the requirement in any way benefit society's interest in reducing the need for bankruptcy.

http://www.legalhelpers.com/blog/2005_11_01_archive.html

Declining Incomes?

I read an article in this morning's Chicago Tribune that discussed Illinois median incomes. The article was citing a recent study of median income in the United States. The study found that the median income in Illinois is declining. In fact, incomes once adjusted for inflation are at a 1989 level! Illinois had the biggest drop in median income with Michigan second.

Unfortunately, we all have heard plenty of stories about the housing market and the "bubble." Housing prices continue to increase rapidly all over the country. There are differences from place to place, but generally the cost of owning a house has increased exponentionally over the last 10 years.

Things like housing, fuel, vehicles, utilities, groceries continue to increase in price, yet this report points out that incomes are falling! We hear talk about rising inflation and about the Federal Reserve considering policies to reduce inflation. I heard a report on NPR Radio pointing out challenges of the new Federal Reserve Chairman. One of the challenges was trying to set targets for inflation.

Unless my math is wrong, I don't know how it is possible for people to continue to pay higher prices for basic necessities while their incomes fall. Aside from using retirement assets early or being one of the fortunate few who can live off of inheritances or other family support, the only way society can maintain this situation is for banks to lend more money either in mortgages, refinancings, HELOCs, credit cards or other types of credit. The bottom line is that consumers are borrowing more and more with less and less ability to pay the debt back.

The good news is that the bankruptcy law helps consumers who get in over their head. Much has been made about bankruptcy reform and there have been significant changes to the laws, but bankruptcy, either Chapter 7 or Chapter 13, remains an effective way to help someone get out of debt. Give us a call, you might be pleasantly surprised!

http://www.legalhelpers.com/blog/2005_11_01_archive.html

Bankruptcy Clerk Commits Fraud - Our clients not affected

Wow! What a month. I know it's been a while since my last blog, but I recently ran across a newspaper clipping about a "longtime bankruptcy court clerk who routinely dealt with people facing mounting debt is accused of giving out false information so she could pocket their money" - Chicago Sun-Times, 9/13/05! The good news for our clients is that none of them were taken advantage of by this scheme.

Allegedly, this woman who had worked at the bankruptcy clerk's office in Chicago and was making $69,000 per year on her job was arrested when the FBI sent an undercover witness who approached the woman saying he had just filed for bankruptcy and needed help because he feared losing his house. Instead of telling him that his bankruptcy filing alone would be enough to stop the sale of his home, she took $500 from him to "block the foreclosure." She even staged a fake phone call to Chase Financial pretending to arrange the transaction. The call had to be fake because the name the undercover officer used was fake and there was no such mortgage she said she looked up. This clerk had also taken $5,000 in 2002, allegedly, from another debtor to "stop foreclosure" on her house.

as you consider whether or not to file for bankruptcy. It's not that you will fall victim to fraud if you don't have This situation illustrates why it is important to have quality, responsible bankruptcy attorneysbankruptcy lawyers. The problem is that these people were vulnerable to the court employee because they didn't understand how the process worked and didn't understand their benefits under bankruptcy and how to enforce those benefits. Instead, they asked for help from someone other than an attorney and they were taken.

Remember, your attorney is doing more then typing paperwork. An attorney is offering you knowledge of how the laws work and representation to deal with creditors who you perceive may be "ignoring" the bankruptcy. This is one reason among many why you should hire a lawyer to help you through this process. While you may be very adept at preparing the paperwork, would you know what to do if a creditor "ignored" your bankruptcy paperwork?

Given the bankruptcy law changes and examples like above, the investment in quality legal representation is worth every penny. If you feel overwhelmed by debt with little hope of getting out, please give one of the firm's attorneys a call. We can help you analyze your situation and propose solutions we can deliver for you.

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Should Increased Costs Lead You To File Without a Lawyer?

I read an article today on Marketwatch.com that inspired me to write this blog. The article was discussing how increased legal fees because of the new reform legislation may drive more people to try to file cases on their own. The article was a lot more neutral in giving advice about whether to use bankruptcy attorneys or not than I'm going to be. It is now more important than ever to spend the money on good bankruptcy lawyers to help you through your bankruptcy.

First of all, despite the increase in attorney fees that the article points out is anywhere from 10% - 75% depending on where you live, the price you pay for good representation is well worth it. Despite the increase in cost, bankruptcy cases are still a bargain in comparison with the cost of continuing to maintain your payments on debts you have no hope of paying off.

Your creditors have a seemingly endless group of high-priced attorneys working on their behalf to try to find ways to overcome your bankruptcy filing. Many tactics creditor's attorneys employ because the tactics work when dealing with an uninformed, inexperienced, and unrepresented debtor simply won't be employed by the creditor if you have legal counsel.

Third, as the article points out, bankruptcy can be much more expensive than an attorney fee if you don't do the paperwork properly. If you fail to file all the required paperwork within certain deadlines your case could be dismissed. While it is possible to file another case, you will have to pay filing fees over again. Not only that, but improper filings may cause you irreversible hardships. You risk losing your car or house that would not have been lost had you hired an attorney to ensure the paperwork gives you the protection you need. Also, if you have to file over again because the paperwork was not proper the first time, the bankruptcy law isn't as friendly with each subsequent filing. The automatic stay in a subsequent case may be limited in duration and there are other steps that need to be completed to insure the stay prevents creditors from taking action against you.

Finally, while some contend that the paperwork is "like filling out a tax form or a social security application" (Steve Elias, founding editor of Nolo, publisher of legal self-help guides), I would argue that completing paperwork is a minor portion of why you are hiring an attorney. Even if you are savvy enough to complete the paperwork properly, you still should have legal representation.

Good legal representation involves: advising you about the best bankruptcy options for your situation (a petition preparer can not give you this advice and you may not know all the specifics about all of your options; advising you how to protect as much of your property as possible, serving as your representative in dealing with your creditors; there are many inquiries creditors can make of debtors that would not violate the automatic stay, so if you represent yourself, you may still get phone calls from creditors asking you for information; serving as your representative in dealing with your trustee, protecting you from potential illegal collection actions by your creditors (your attorney knows what to do and say in dealing with a creditor who may be trying to take advantage of someone who isn't represented); filing the proper motions for relief from all sorts of potential issues; and advising you about the law in the event there is a dispute as to dischargeability or dismissal of the case, among other things.

Even most self-help publications advise debtors to hire attorneys and get good legal advice. Again, the risks of doing the case yourself and the hidden costs that could result from one misstep almost never outweigh the value you will get from obtaining good legal representation in your bankruptcy case. Remember, in most Chapter 7 cases anywhere in the country, your cost will be less than $2,000. If you think about how much money you are paying per month on your minimum payments to your creditors or how much money a creditor could garnish from your paycheck in the event the creditor obtains a judgment, the legal expenses pale in comparison.


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Payday Loan For the Holiday Budget Crunch?

Payday lenders offer tempting short-term loans for a fee, usually due on a payday. They can also be called: cash advances, check advances, check advance loans, post-dated check loans or deferred-deposit check loans. The premise is simple; lenders offer cash loans to working individuals who secure their loan with a post-dated check including a fee for the loan. On payday, the borrower can either pay the full loan back or roll it over into another loan for an additional fee.

At first glance, payday loans may seem appealing, especially around this time of year when families often need additional money for the holiday season. While payday loans may seem like the answer to a holiday budget crunch, they usually end up causing even more financial distress, and are often the beginning of a vicious and very expensive cycle that can prove almost impossible to escape. Many borrowers don't foresee how fast interest and fees on these loans add up. Most people considering a payday loan are on a tight budget and are already living paycheck-to-paycheck and cannot afford to pay the entire loan back out of their next check. Payday lenders anticipate this and usually offer the borrower a chance to roll the loan over for another two weeks until the next payday, for a fee of course. The cycle of rollovers can quickly build up, especially if individuals start borrowing from several different payday lenders, and can lead to an endless cycle of debt. When someone is living from paycheck-topaycheck, a payday loan may force them into debt consolidation counseling or even require them to seek good bankruptcy lawyers.

The fees and interest rates on payday loans can be astronomical. It is common to see interest rates between 300% - 1500%. Compare this to typical interest rates on cash advances on a credit card, usually between 20% - 35%. Lenders are required to provide individuals with a full disclosure of the APR on the loan and must also provide a written loan agreement. It is very important to carefully read the loan agreement and understand what the interest rate on the loans will be. If you know you can't pay the full amount back, consider how much you would be paying if you have to roll the loan over several times. Make sure you read that last column on the loan disclosure statement. The last column shows the total amount you will pay before this debt is paid off. You might be surprised and hopefully, it will make you think twice before taking a payday loan.

In my opinion, payday loans should be avoided at all costs. Proper budgeting and establishing an emergency fund are the long-term answers to avoid the need for a short-term loan, but we all know that this is easier said than done, and the only thing that can be expected is unexpected expenses. Alternatives include: borrowing from family members, credit unions, banks, employers, or credit card cash advances. These loans are likely to be at a significantly lower interest rate and contain more favorable terms for the borrower.

Putting off the purchase until you save enough money would help you avoid all interest rates and fees. A payday loan may seem like an easy solution to the holiday cash crunch, but avoiding them and considering other alternatives could keep you out of bankruptcy!

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Retirement planning

Do you sometimes wonder how you are going to make ends meet when the time comes to retire? Have you given up hope of ever retiring? Do you worry whether there will any money available for you upon your retirement from social security, medicare and/or medicaid?

These are very important questions. Unfortunately, there are many people who don't even get to the point of asking these questions until they are on the verge of retiring. Studies show that 61% of all workers haven't even tried to calculate how much savings they will need in order to live comfortably in retirement. The key to financial health is retirement planning. The earlier you begin to plan and take action, the better off you will be and the less you have to set aside to insure healthy finances in retirement.

Let me try to give you some tips. The first step to develop a solid financial plan is to set aside enough money into a savings account to cover 3-6 months' worth of income in case of unexpected emergencies. This "emergency" fund will ensure that you have money to cover unexpected expenses while still allowing you to continue to build your financial future. Once you calculate how much you need to set aside (remember, 3-6 months' worth of take-home income), you should establish a goal for saving toward this emergency fund. Pay your "emergency" fund faithfully just like a utility bill or rent until you have reached your goal. This does not mean you need to save $300-400 per month, but save something every month, even if it is $25 or $50 per month.

The following are some other tips which should help you reach your retirement goals as well as develop healthy spending and saving habits.

1) Utilize any retirement savings plans offered by your employer (even if the employer won't match your contributions). These contributions are "pre-tax." This means that putting away $50 out of your paycheck does not mean your net pay will be $50 less. In fact, it might only be $35-40 less. If your employer does not any type of retirement savings plans (like 401(k), 403(b), or 457 plans), you should still put money away into an IRA. Consider signing up for automatic transfers from your paycheck into an IRA.

As your income increases over time, you should increase the amount or percentage of your income you are putting into your IRA or retirement plans. If you adopt this plan your savings and income have the potential to grow together over the years and outpace inflation.

2) Set spending limits and stick to your limits. It is far too easy to "charge" it when you don't have the money in your pocket to afford a particular purchase. You have to resist that temptation! Take time to calculate a reasonable "spending allowance" for a week. At the beginning of the week, withdraw your "allowance" and limit your spending to your allowance. This will help you set priorities and budget your money.

3) Flexible spending accounts (FSAs). Many employers offer flexible spending accounts into which you can deposit pre-tax earnings for medical and dependent-care expenses. These funds can help parents save tax dollars when paying for childcare or medical expenses. Again, like in the 401(k) scenario, you can put $50 into the account and it doesn't cost you $50 off your paycheck. The only potential pitfall is that you must spend the money by the end of the year or you lose it. You have to keep receipts to show you spent the money on the required childcare or medical expense to get the money. Therefore, make sure you are only saving what you know you spend.

4) Bill yourself. Whenever you pay off a major expense, like a credit card or a car, consider continuing those payments by making deposits into your own savings account. Eliminating your debt increases your net worth and by continuing to build your savings you can increase your assets and eliminate your reliance on credit. For example, if you are paying $400 per month for a car on top of your living expenses. Once your car is paid off, instead of spending the $400, put it into a bank account. This way you can begin saving for your next car and can have a bigger down payment and better financing terms.

5) Utilize piggy banks for all that loose change. Over the course of a year, loose change can add up! Pay your expenses with dollar bills and deposit all your change at the end of the day into a piggy bank. If you are able, consider depositing any $1 or $5 bills you have at the end of the day. If this is done faithfully throughout the year, you will likely have more than a thousand dollars in your piggy bank at the end of the year!

6) Allocate lump sum cash payments into three parts. When you receive your tax refund, inheritance, or bonuses, break up these things into three parts. Set aside 1/3 of the money for long-term savings goals (retirement), set aside another 1/3 for short-term savings goals (your next car purchase, furniture purchase, etc..) and the last 1/3 you can use to reward yourself! This way you can still splurge, but you can also have the satisfaction of continuing to meet your savings goals.

7) Have fun! Make a list of fun and inexpensive things you like to do. When you feel the urge to spend money, do the fun and inexpensive things you've put on your list instead. Go to a museum, take a drive through the countryside, go for a hike, go to the zoo, etc... Think about your list and stick to it whenever you feel like going on a shopping spree for useless items. If you can successfully eliminate spending money on unnecessary items, you will be much closer to attaining your savings goals.

I know what you're thinking. All of this is nice, but I can't afford it. Consider this. The results of the Retirement Confidence Survey indicates that those people who thought about their retirement and made a plan changed their financial habits. Saving a mere $20 per week will amount to $1,040 by the end of the year and with only a 5% annual return will result to well over $50,000 over 25 years!

Saving doesn't have to be difficult, but it does require you to think about these issues, make a plan, and follow-through on the plan. With a little bit of time and effort, your goals will become a reality.

http://www.legalhelpers.com/blog/2005_12_01_archive.html

Filing Chapter 13 Bankruptcy

Filing chapter 13 bankruptcy is usually one of the last resorts for those facing debilitating financial circumstances. It is generally the last thing anyone wants who has tried to protect their financial investments, credit histories and future fiscal stability. However, there are times when choosing to use the protection provided through a chapter 13 bankruptcy filing may be the right move in order to stop the snowballing effect of clamoring creditors and foreclosures. For whatever reason a person finds himself in the paralyzing position of burdensome debt and crushing pressure, there are solutions that can be employed to regain security, restore credit and remove obstacles that hinder a prosperous future.

Many people find themselves dealing with unforeseen circumstances such as long-term illnesses, employment lay-offs or personal tragedies such as divorce. Sudden tragedies can alter the fiscal status of a family very quickly and send the family finances spinning out of control. In order to regain control and to alleviate the pressure caused by defaulted payments and persistent creditors, many consumers have had to consider using the legal measures provided through bankruptcy court. There are two types of legal fillings that can be made through the courts that address individual issues. Chapter 7 and chapter 13 bankruptcy has been set up by law to provide a system of repayment to creditors as well as financial protection for consumers who are trying to rebuild their crumbling finances.

Chapter 7 applies to the liquidation of assets in order to repay creditors while also imposing an automatic stop on collections until the court instructions are carried out. This allows creditors to receive at least some of what is owed them while also protecting the consumer from accruing more financial problems. Chapter 13 bankruptcy filing is a reorganization of finances on behalf of a consumer in order to repay debt as well as provide protection for some of their property such as a personal home. In this case, a consumer files a reorganization strategy to the court that agrees to legally appointed oversight of a personal budget and any liquidation of assets that are deemed reasonable.

The benefits of filing chapter 13 bankruptcy often outweigh the chapter 7 alternative in that some assets may be retained, a repayment plan is implemented and it is usually paid off in up to 5 years, if not sooner. Some debt is required to be paid off completely, some may be paid off by a percentage of the total debt and others may be forgiven. There is a mandatory budget required by the courts when a chapter 13 bankruptcy is filed that must be followed to the letter. A plan for repayment is set up that may include wage garnishments and management of how a person can spend his or her money during the repayment plan. An appointed representative of the court will be provided that oversees transactions and makes sure that creditors are repaid on a schedule according to the earnings of an individual.

For those who carefully follow the repayment process as outlined by the court as a result, debt will be resolved and many creditors will be willing to extend credit again. This type of court managed financial resolution is more appealing to creditors and lenders which will be useful to those who are committed to restoring their future options. Consumers who file chapter 13 can expect to have it show up on the credit history for at least 6 years. It is less damaging for credit purposes than for those who file for chapter 7 bankruptcy, in that these cases usually receive poor credit standing for 10 years following court proceedings. Although filing chapter 13 bankruptcy allows greater protection for assets and offers a payment plan for creditors, there are some debts that cannot be forgiven by law. Alimony, back taxes, child support, any hidden debts not reported at filing and most student loans are some of the areas that are required to be repaid no matter what the situation.

Most individuals who are considering which avenue to take, prefer chapter 13 because of the shorter penalty on their credit history, greater protection for assets and court imposed solutions for repayment to creditors. While this option may be a bit more appealing, choosing chapter 13 bankruptcy is not a magic bullet for clearing up troubled, personal finances. If possible, it is always best to manage personal finances with commitment to fiscal freedom and integrity. There are, of course, times when no matter what a person does, tragedy strikes. When it does, only God and good, personal choices based on biblical principles can bring anyone out of the stress and pain of imminent financial ruin. "The young lions do lack, and suffer hunger: but they that seek the Lord shall not want any good thing." (Psalm 34:10) While filing chapter 13 bankruptcy may not be the first choice for fiscal resolution, it may be a solution that can provide a plan and give hope for a stable, fiscal future.

http://www.christianet.com/bankruptcy/chapter13bankruptcy.htm