Why Bankruptcy Filings Are On The Rise

In counties and states across the country, bankruptcy filings are on the rise, according to a study of the figures from the US Bankruptcy Court. Some northeastern counties are seeing bankruptcy filing more than double from the same period last year.

The impact this has on county and state governments cannot be underestimated. The increase in bankruptcy filings could eventually have an impact on the ability of counties and local municipalities to collect property taxes, which would then have a degrading impact on their ability to provide services to the county residents, or to increase the cost of those services.

Bankruptcy is the legal recognition that a business or individual has so many debts that they cannot repay them. Most typically, individuals file for Chapter 7 bankruptcy which has the effect of discharging all debts. Sometimes an individual will opt for Chapter 13 bankruptcy, which allows the individual to set up reduced payment arrangements with creditors, often with drastically reduced interest rates on the outstanding debt.

One of the big reasons behind this is the slow and weak housing market. People whose income depends on a moderate or strong housing market, such as realtors, brokers, and construction workers, are left with a lot of debt and no good income stream to allow them to pay it off.

Another problem is the adjustable rate mortgages. In the initial years of the mortgage loan, payments were very reasonable and affordable, but as mortgage holders get further into the mortgage term, the mortgage payment starts to go up, to the point where many mortgage holders can no longer afford the payments.

If you are considering bankruptcy, be sure that you know your legal rights, and also ensure that you have investigated all possible alternatives to bankruptcy. Bankruptcy should be considered as a last resort only, since the effects of filing bankruptcy will remain with you as a huge flag on your credit reports for the next 7 to 10 years. Bankruptcy law is very complex, and you should consult with a qualified bankruptcy attorney to make sure that bankruptcy is indeed your best option.

For more information about the complexities of Bankruptcy and your options, please visit our web site at http://www.bankruptcy-data.com

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Survive Bankruptcy With The Help Of Good Bankruptcy Lawyers

It is one of those words that can make your stomach drop. It creates images of fortunes squandered, homes lost, and dreams shattered. Bankruptcy affects millions of people every year, but with the help of bankruptcy lawyers it does not have to be a financial death sentence. In fact, bankruptcy lawyers help people survive bankruptcy every day, and with their expert help, individuals and companies can often be back on their financial feet within a few short years.

Individual bankruptcy is initiated one of two ways; either by the debtor or the creditor. In the case of the former, the debtor wishes to escape from oppressive debt and seeks a new start, while in the latter scenario the creditor wishes to recover assets from a creditor who is no longer solvent. In either case, creditors, with the help of bankruptcy lawyers, will usually exercise one of two options; Chapter 7 or Chapter 13 bankruptcy.

With the help of bankruptcy lawyers, individuals can assess their financial situation and pursue the bankruptcy option that affords them the best possible outcome. For some, Chapter 7 might be their only realistic option. Also known as straight bankruptcy, or liquidation, Chapter 7 bankruptcies allow the debtor to keep some property while non-exempt property is sold with all proceeds going toward the creditors. In the process, many other debts are discharged, while some remain – such as child support, taxes, legal fines, and many student loans, to name a few. In many cases the creditors have very few assets that are eligible for liquidation. In those instances, bankruptcy lawyers may suggest Chapter 7 because it will allow the creditor to start over quickly with minimal losses of personal assets.

Some creditors have much to lose – such as a home or automobile - and they would like to avoid losing them. In that case, bankruptcy lawyers may advise their clients to pursue Chapter 13 bankruptcy. Also known as reorganization, Chapter 13 bankruptcy allows a creditor to repay some or all of their debts, usually under more favorable terms such as less interest and waived fees. However, it is more difficult to qualify for Chapter 13 protection because the creditor must have sufficient disposable income to qualify. With the help of bankruptcy lawyers, debtors in Chapter 13 arrangements have three to five years to pay their creditors while enjoying the protection of the bankruptcy court – the creditor cannot make ongoing attempts to collect on the original debts during this time. However, the debtor cannot obtain additional debt during this time, so both parties are restrained by the court.

If you are in serious debt and are facing bankruptcy or foreclosure then you should immediately consult with competent bankruptcy lawyers. The details and qualifications for all forms of bankruptcy – including some not mentioned – are very complex and require expert counsel that only qualified bankruptcy lawyers can provide.

For easy to understand, in depth information about bankruptcy lawyers visit our ezGuide 2 Lawyers.

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Understanding Chapter 12 Bankruptcy

Chapter 12 bankruptcy covers anglers and farmers. If your income comes from family fishing or farming and you have a steady flow of income in prior years you can qualify for chapter 12 bankruptcy. The chapter 12 covers family businesses in these areas of business. The debt ratio of anglers and farmer is usually too high for chapter 11 and 13, which corporations usually use when filing bankruptcy.

More than fifty percent of your income has to come from the business in order to file under chapter 12 bankruptcies. You must have had this income for more than three years. The loss or debt must not exceed a certain amount if you are a farmer and another amount for an angler. The percentage of the debt must come from the operations of the business as well. Both businesses have different amounts for total debt.

If a corporation or a partnership needs to file a chapter 12 bankruptcy, they need to meet certain guidelines before they can use this bankruptcy law. The guidelines are:

• One family must own over half of the stock in the company. No public trading of stocks can have taken place.

• The family needs to have control over the operations of the business.

• The value of the business that needs a relationship to farming or fishing is eighty percent.

• The total debt for a corporation or partnership for filing bankruptcy is the same amount for the individual farmer or angler.

When filing the needed information for a chapter 12 bankruptcy you need to complete the following:

• Names of creditors and what you owe and the type of claim they hold on your business.

• The amount of income and the source of income for the debtor.

• All the personal and business property you currently own.

• A complete list of your expenses relating to the fishing or farming business.

Keep in mind that married parties need to include their spouse’s information whether they participate in the family business or not.

After the meeting with the creditors and the debtor, a repayment plan will be decided. You have up to ninety days to file the repayment documents that include secured creditors and taxes, which are claims of priority. You must offer something equal to or greater than what you owe for the document to be approved by the courts.

When you file for a chapter 12 bankruptcies, you need to remember that this does not take away any liability from you; you have to repay the money in some way. The laws have changed to protect the creditors who in the past have taken huge losses because of bankruptcies.

You can also find more info on Bankruptcy Court and Bankruptcy Exemptions. Filingpersonalbankruptcyhelp.com is a comprehensive resource to get help in Bankruptcy.

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Bankruptcy - The Best Ways to Deal With It

If you are thinking about filing for bankruptcy, you have come to the right place. You might be feeling overwhelmed, stressed and confused. Let’s get you started on the track towards financial freedom and see what the best ways of dealing with bankruptcy are.

If you need to file bankruptcy you need to know the different types of bankruptcy and the variety of services available to you. Since bankruptcy is a last resort method to resolving your debts you could find after some research that you can become financially free without the need of bankruptcy. You may find that a credit counseling agency can help you with your budget and help you pay off your debts without taking away all of your money. You may find that a lawyer can also help you fend off debt collectors while you are working with your debts and trying to pay them off. So, let’s take a look at the alternatives to bankruptcy before you decide that you will choose that last resort. You should try an alternative before you take the leap and file for bankruptcy with a lawyer.

Credit Counseling Services –

You have found yourself filled to your eyeballs with debt and the phone keeps ringing for you with threatening and mean debt collectors wanting all the money in your bank. Sure, it is true that you owe the money and need to pay it back, but being in debt can be very stressful and anxiety producing. All of this above the overwhelming feeling that weighs on your shoulders knowing you owe so much money can put a strain on everything in your life. It can hinder your decision making skills, making it that much harder to figure out the best way to deal with it. This is where a credit counseling service could help you a great deal. They can help you find an alternative to bankruptcy that fits your needs and your lifestyle. They can even help with your budget. They will help guide you through the different options available for you so you can hopefully avoid bankruptcy.

There are two different kinds of credit counseling agencies: one that is non-profit and one that is for profit. Most of the time the best one to go for is a non-profit credit counseling agency so you do not have to spend any money, and the services are the same.

Going On With Filing Bankruptcy –

If you find out at the credit counseling agencies you visit that you do not have any alternatives you may find yourself looking at the last resort: bankruptcy. You will need to find a bankruptcy lawyer and pay him or her for their services up front. Check around first to find a lawyer that will not charge you too much. Bankruptcy services will help you stop any foreclosures, create and work within a budget, reduce your credit card debt, and help you repair your credit.

You do have options available to you. Just ask for some help before things get worse and you could find yourself smiling on the road to financial freedom and a debt free life.

Go get the real scoop on dealing with bankruptcy at http://www.bankruptcy.get-the-info.net

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Can You File For Chapter 13 Bankruptcy

Chapter 13 bankruptcy is for small businesses and people who have a steady income. Chapter 13 helps you to pay off a portion of you debt and avoid filing for bankruptcy. You receive enough time to repay your debts while retaining your property. You need to have a monthly income in order to file a chapter 13 so that you can live comfortably and still make a monthly repayment to your debtors. In most cases, a repayment plan allows for up to five years for repayment.

Before Filing Chapter 13 Bankruptcy

You need to consult with a debt credit counselor who has been approved for such a task. You need to participate in a course that teaches you about financial budgeting and teaches you how to manage your money instead of going in debt again. This course will show the courts you have learned to budget your money and be able to repay the money you agreed on for the repayment plan.

Chapter 13 bankruptcies has certain limits for filing which includes personal loans of less than three hundred thousand dollars and a maximum debt of nine hundred and twenty-two thousand dollars. There are some things excluded in filing bankruptcy, they include support, alimony, criminal fines, loans for education, and court ordered restitution.

When you make a repayment plan, you are committing to a legal binding agreement with the creditors to repay the debt. In most cases, a part of the debt is forgiven with an arranged payment plan. For the most part, you do not pay the payment yourself. A credit counselor who will represent you as a trustee receives the money from you monthly and distributes the money to the creditors in the agreement plan. Once the repayment plan is enforced, debtor cannot take action against you as long as you pay the monthly payments.

While the court order of protection under the chapter 13 bankruptcy exists, you cannot ring up any other debt exceeding two hundred and fifty dollars. This protects everyone concerned. Once you have a filed bankruptcy document, creditors cannot take any collection action against you or take any of your property.

Once you pay the filing fees and your papers for chapter 13 bankruptcies, you have up to fifteen days to file all the necessary paperwork regarding your finances. This is the critical step in filing for bankruptcy.

Keep in mind that debtors do not have to agree to the terms you and credit counselor set up, they have forty-five days to accept or decline the proposal. If they feel the deal does not benefit them, they will have another ninety days to file their claims with the court.

Chapter 13 Bankruptcy Summarized

You have the option to repay your creditors without collection procedures hindering your cause. Your property and assets are protected starting the day you file the papers. You will make a monthly repayment plan and need to stick to it in order for the order of protection to stay in affect. If you default on the repayment, you are subject to collections from the creditors and possibly a contempt of court order. Chapter 13 bankruptcy will protect you if you follow the instructions from the court.

You can also find more info on Bankruptcy Court and Bankruptcy Exemptions. Filingpersonalbankruptcyhelp.com is a comprehensive resource to get help in Bankruptcy.

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Level the Playing Field and Get a Fresh Start

Many people struggle with the decision to file bankruptcy, mostly because they have misconceptions about bankruptcy. Basically, bankruptcy is a legal way to level the playing field between an individual debtor and the creditors. It is a legal proceeding that provides the debtor with a fresh start. There are two types of bankruptcy that are most commonly available for an individual: Chapter7 and Chapter 13.

Chapter 7, or straight bankruptcy, is what most people typically think of as bankruptcy. In this Chapter, a debtor’s non-exempt assets are liquidated or sold and the proceeds are used to pay toward unsecured debts (credit cards, loans, medical bills, etc.). In the overwhelming majority of cases, however, people do not lose any property which means unsecured creditors get nothing. At the end of the bankruptcy, roughly 3-4 months after filing, the debts are discharged and the creditor can never collect on the debt.

Chapter 13, is a debt reorganization or consolidation bankruptcy. If a person has regular monthly income, then his debts (mortgage arrears, car payments, credit cards, medical bills, loans, student loans, etc.) are rolled into one low monthly payment. Because the debtor is paying back his creditors through this repayment plan, the debtor does not risk losing any assets as he might under Chapter 7. Furthermore, while in the repayment plan, typically 3-5 years, creditors are stopped from contacting the debtor without first going through the debtor’s attorney and the court.

Millions of people declared bankruptcy last year alone to get the fresh start they needed. Contrary to what many believe, your credit is not permanently damaged and you will still be able to have credit. The new bankruptcy laws that went into effect in 2005 changed bankruptcy very little.

Hire experienced San Antonio bankruptcy attorneys. At Malaise, we have 10 bankruptcy attorneys throughout Texas with over 90 years of combined bankruptcy experience. We serve more cities in Texas than any other debtor bankruptcy firm. We put our emphasis on helping our clients do what is in their best interest and the clients above else come first. If you are looking to hire a bankruptcy lawyer in San Antonio Texas with solid experience in Bankruptcy law, contact The Malaise Law Firm today.

We serve bankruptcy clients in San Antonio, Houston, Corpus Christi, Harlingen, Brownsville, McAllen, Dallas and Forth Worth.

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Explaining Federal Exemptions In Bankruptcy

The bankruptcy laws were recently changed and federal legislation enacted by Congress. The new laws governing bankruptcy set a standard, which benefits the creditors. Although Congress did allow some states the option to create their own laws governing federal exemptions in bankruptcy laws. The choice between federal or state guidelines in done in sixteen states.

The states that follow the federal guidelines are:
Arkansas New Mexico
Connecticut Pennsylvania
Rhode Island District of Columbia
South Carolina Hawaii
Massachusetts Washington
Wisconsin Vermont
Minnesota New Jersey
Texas Michigan

When you think about the exemptions, you have to include the value of the property today, not the value when you bought the asset. If you are married and filing jointly this value doubles.

Federal exemptions in bankruptcy laws are a touchy subject and since the changes have occurred, many do not understand the bankruptcy laws anymore. They have become a bit more complex.

Some of the federal exemptions in bankruptcy include the following:

• The equity in your primary home is exempt up to seventeen thousand four hundred dollars. You may use up to eight thousand in home equity for other property including a cemetery plot.

• You can claim exemption for pension and retirement plans that is needed for support.

• Life insurance worth ninety-three hundred dollars, disability payments, and life insurance you pay for another person and any insurance contracts are covered under the federal exemptions in bankruptcy.

• Any benefits you get for public assistance including unemployment benefits, and monies received from crimes victims.

The other federal exemptions in bankruptcy include:

• Pet, animals and crops

• Clothing and up to eleven hundred dollars in jewelry

• Books and household goods

• Appliances and furnishings

• Musical instruments and a car valued up to twenty-seven hundred dollars

• Any personal injury payments up to seventeen thousand four hundred dollars except what was for pain and suffering

• Alimony and support payments

You can also find more info on Filing Personal Bankruptcy and Avoid Bankruptcy. Filingpersonalbankruptcyhelp.com is a comprehensive resource to get help in Bankruptcy.

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