Bankruptcy has helped many people out of financial struggles - giving them a fresh start to rebuild their lives and their credit ratings. The immediate benefits of eliminating overwhelming debt are obvious and unmistakable, but there are also many long term rewards to a discharge in bankruptcy. As reported in a recent Newsweek article, many mature adults have turned to bankruptcy in situations where paying creditors makes it impossible to set aside necessary contributions to a retirement plan or where anticipated social security or retirement benefits do not leave enough excess income to pay off creditors after paying basic living expenses.
The U.S. Department of Commerce's National Institute of Aging projects that by 2010, the number of people over the age 60 in the U.S. will be growing at a rate of three and a half times as high as that of the general population. This means that social security benefits will likely continue to be cut more and more as time goes on. Accordingly, those of us approaching retirement age will need to take the important step of setting funds aside to help us through our retirement years and to eliminate any existing debt that we have, prior to the inevitable decrease in income that comes along with retirement. Even those people who have carefully planned for their retirement are finding that the recent fall in stock values has left them less prepared than they had hoped. Whatever the reason, Bankruptcy can be a method of strategic financial planning to help ensure that you will be able to live a comfortable lifestyle during your "golden years."
The number of people over 65 who file for bankruptcy has tripled in the past 10 years. One obvious reason for this is that most retired adults experience a decline in income along with an increase in expenses, such as health care and housing. Research has shown that social security is the main source of income for the average Chapter 7 debtor. For these people, credit card debt was the most common type of debt discharged. One suggested reason for the increase of credit card debt in seniors is the fact that credit cards can now be used for payment for medical prescriptions and physician co-payments. Exacerbating the problem is the deregulation of usery laws in most states, permitting creditors to charge higher and higher interest rates, along with aggressive marketing programs directed toward seniors and increasing levels of credit extended. This has caused a problem for retirees who are unable keep up with the interest compounding on the balances charged.
In its series of papers examining the economic security of different populations, Demos has set forth a number of suggested solutions to the problem of seniors and their increased financial challenges. Among them are increased regulation of lenders' practices and prevention of Congress' proposed legislation, aimed at inhibiting the ability for many people to file bankruptcy. In the meantime, bankruptcy can be a helpful tool for planning ahead for retirement or for improving the quality of life for those of retirement age.
http://www.legalhelpers.com/bankruptcy-articles/brc-articles-retirement-bankruptcy.html
Friday, August 24, 2007
A New Beginning after Bankruptcy: Part I
Filing bankruptcy is a financial last resort – an option that should be decided upon only when there are no other options left for debt relief. Not surprisingly then, the impact that filing has on one’s credit report and score can be dramatic, and filers must work slowly but surely to regain their financial footholds.
Despite some of the negative consequences of bankruptcy, however, life after bankruptcy can be viewed as a brand new financial beginning. The first thing to do to re-start your finances is to realize exactly how your credit has been affected by your decision to file.
Bankruptcy Aftermath
Filing bankruptcy is, essentially, a legal declaration that you are unable to pay your debts. Debts may be discharged via chapter 7 filing, or may be reorganized into a realistic payment plan along with some discharges via chapter 13 filing. In any case, taking such action makes you a very “risky” consumer to whom creditors may lend, and this risk will be reflected on your credit reports.
Not surprisingly then, it is much more difficult for individuals who have filed bankruptcy to obtain credit than those who have not. On the other hand, however, filers with many unpaid debts probably found it difficult to obtain credit before filing too, and some creditors may view filing as more responsible than leaving debts unpaid.
In any case, it is very possible to recover financially from bankruptcy, and it may not be as difficult as you think
https://www.debthelp.com/kc/163-new-beginning-after-bankruptcy-part.html
Despite some of the negative consequences of bankruptcy, however, life after bankruptcy can be viewed as a brand new financial beginning. The first thing to do to re-start your finances is to realize exactly how your credit has been affected by your decision to file.
Bankruptcy Aftermath
Filing bankruptcy is, essentially, a legal declaration that you are unable to pay your debts. Debts may be discharged via chapter 7 filing, or may be reorganized into a realistic payment plan along with some discharges via chapter 13 filing. In any case, taking such action makes you a very “risky” consumer to whom creditors may lend, and this risk will be reflected on your credit reports.
Not surprisingly then, it is much more difficult for individuals who have filed bankruptcy to obtain credit than those who have not. On the other hand, however, filers with many unpaid debts probably found it difficult to obtain credit before filing too, and some creditors may view filing as more responsible than leaving debts unpaid.
In any case, it is very possible to recover financially from bankruptcy, and it may not be as difficult as you think
https://www.debthelp.com/kc/163-new-beginning-after-bankruptcy-part.html
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is not for everyone, nor is every one eligible to use this method for debt reorganization. This part of the debt reduction code was put into place primarily for small and large businesses.
The businesses that may use this opportunity to reorganize their debts fall under three categories:
Corporations, LL C's (Limited Liability Company)
Partnership
Proprietorship
Corporations, limited liability companies and partnerships, are separate from the stockholders and partners involved with them in the business. This classification permits them to file for reorganization without the participation of the others involved in the business. It is also possible for them to take advantage of other forms of debt reduction, such as utilizing Section 7 of United States Code Title Eleven.
A sole proprietorship is owned by a single owner. Which means that all assets and debts of that particular business or intertwined with the owners personal non business assets and debts. Therefore the proprietor may also file under different sections of the debt reduction code. The sole proprietor may take advantage of section 13 Title Eleven USC (provided certain debt level has been reached in the business) and section 7 of the United States Code Title Eleven. It is strongly recommended that qualified legal council should be consulted prior to the final decision being made.
The chief executive officer or the principal of the business entity must have the determination to follow through with a reorganization of the companies assets and debts. Lack of determination to follow through by the principal has been the reason that most business legal reorganization plans fail. The following is a short list of the problems and advantages of reorganization the principal will face.
1.The owner must know what caused the debt situation that the business is currently in. In addition the owner must be able to determine what the results of reorganization would be and if in fact it would be advantages to reorganize or liquidate.
2.It is possible that reorganization will provide the business with badly needed cash flow to put the business up for sale as a going concern.
3.Reorganization can protect the business while expensive leases on equipment and real estate may be renegotiated or even sold off.
4.Reorganization cannot create a new market place. In addition if the skills to mange the business are not present when the business first started they will not be created by the reorganization.
Chapter 11 bankruptcy is only as good as the owner/principals involved in the business.
http://www.dealwithbankruptcy.com/Articles/A_Guide_To_Chapter_11_Bankruptcy.php
The businesses that may use this opportunity to reorganize their debts fall under three categories:
Corporations, LL C's (Limited Liability Company)
Partnership
Proprietorship
Corporations, limited liability companies and partnerships, are separate from the stockholders and partners involved with them in the business. This classification permits them to file for reorganization without the participation of the others involved in the business. It is also possible for them to take advantage of other forms of debt reduction, such as utilizing Section 7 of United States Code Title Eleven.
A sole proprietorship is owned by a single owner. Which means that all assets and debts of that particular business or intertwined with the owners personal non business assets and debts. Therefore the proprietor may also file under different sections of the debt reduction code. The sole proprietor may take advantage of section 13 Title Eleven USC (provided certain debt level has been reached in the business) and section 7 of the United States Code Title Eleven. It is strongly recommended that qualified legal council should be consulted prior to the final decision being made.
The chief executive officer or the principal of the business entity must have the determination to follow through with a reorganization of the companies assets and debts. Lack of determination to follow through by the principal has been the reason that most business legal reorganization plans fail. The following is a short list of the problems and advantages of reorganization the principal will face.
1.The owner must know what caused the debt situation that the business is currently in. In addition the owner must be able to determine what the results of reorganization would be and if in fact it would be advantages to reorganize or liquidate.
2.It is possible that reorganization will provide the business with badly needed cash flow to put the business up for sale as a going concern.
3.Reorganization can protect the business while expensive leases on equipment and real estate may be renegotiated or even sold off.
4.Reorganization cannot create a new market place. In addition if the skills to mange the business are not present when the business first started they will not be created by the reorganization.
Chapter 11 bankruptcy is only as good as the owner/principals involved in the business.
http://www.dealwithbankruptcy.com/Articles/A_Guide_To_Chapter_11_Bankruptcy.php
Business,Finance & Investment,Law
Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their creditors. A declared state of bankruptcy can be requested by creditors in an effort to recoup a portion of what they are owed; however, in the overwhelming majority of cases, the bankruptcy is initiated by the bankrupt individual or organization.
Bankruptcy occurs when a business cannot meet its debt obligations and petitions a federal court either for reorganization of its debts or liquidation of its assets (although this action has a negative impact on a credit rating).
It also refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may be released from or “discharged” from their debts perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings. The person with the debt is called the debtor and the people or companies to whom the debtor owes money are called creditors.
When you are unable to pay your debts, you submit yourself to the protection of the state. A person or business may voluntarily declare bankruptcy or may be petitioned into bankruptcy by his creditors. Once in bankruptcy, the person surrenders his assets to a trustee in bankruptcy who sells the assets for the benefit of the bankrupt’s creditors, first the secured creditors then the unsecured creditors. Once a person is discharged from bankruptcy, none of his former creditors may pursue him for his former debts.
The primary purposes of the laws of bankruptcy are: (1) to give an honest debtor a "fresh start" in life by relieving the debtor of most debts, and (2) to repay creditors in an orderly manner to the extent that the debtor has the means available for payment.
There are two types of bankruptcy: Involuntary Bankruptcy, where creditors or lenders file a petition against the debtor (person in debt), and Voluntary Bankruptcy, where the debtor files a petition claiming inability to meet creditors' requirements.
http://www.amazines.com/Law/article_detail.cfm/201157?articleid=201157
Bankruptcy occurs when a business cannot meet its debt obligations and petitions a federal court either for reorganization of its debts or liquidation of its assets (although this action has a negative impact on a credit rating).
It also refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may be released from or “discharged” from their debts perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings. The person with the debt is called the debtor and the people or companies to whom the debtor owes money are called creditors.
When you are unable to pay your debts, you submit yourself to the protection of the state. A person or business may voluntarily declare bankruptcy or may be petitioned into bankruptcy by his creditors. Once in bankruptcy, the person surrenders his assets to a trustee in bankruptcy who sells the assets for the benefit of the bankrupt’s creditors, first the secured creditors then the unsecured creditors. Once a person is discharged from bankruptcy, none of his former creditors may pursue him for his former debts.
The primary purposes of the laws of bankruptcy are: (1) to give an honest debtor a "fresh start" in life by relieving the debtor of most debts, and (2) to repay creditors in an orderly manner to the extent that the debtor has the means available for payment.
There are two types of bankruptcy: Involuntary Bankruptcy, where creditors or lenders file a petition against the debtor (person in debt), and Voluntary Bankruptcy, where the debtor files a petition claiming inability to meet creditors' requirements.
http://www.amazines.com/Law/article_detail.cfm/201157?articleid=201157
Knowing When You Need A Bankruptcy Attorney
A bankruptcy attorney may be necessary if you have a great deal of debt, assets and other complicated issues in your life. For example, because there is a great deal of documentation required that could be confusing for anyone, a bankruptcy attorney can help you in this area. They will have extensive knowledge in all the laws, rules, regulations, options and rights that pertain to your specific case.
Bankruptcy is not a simple procedure. It is extremely complicated and having an attorney on your side can help to make everything run smoothly and efficiently.
What Steps Will a Bankruptcy Attorney Take?
First: The bankruptcy attorney will talk to you about your situation, finances, assets and debts. This is to determine whether bankruptcy truly is the right option for you. This is also done to establish what the bankruptcy attorney needs to do in order to help your bankruptcy case.
Second: He or she will determine which of your debts might or might not be discharged. If you have any property that cannot be protected by going through some pre-bankruptcy planning such as protection of certain assets, listing items you may have tried to "hide" or filing a homestead exemption.
Third: They will prepare and file the bankruptcy petition along with any needed documentation along with it.
Fourth: They will attend the meeting of creditors with you to ensure that the creditors are practicing legal and fair negotiations.
Fifth: They will take care of any necessary matters that are needed to protect you fully and legally prior to the final discharge. This may include any liens that are on your home, any claims of fraud by a creditor or amending any schedules due to omissions or errors.
How Much Will a Bankruptcy Attorney Charge?
The fee for your bankruptcy attorney will vary depending upon how complicated your particular case is and what it involves. Across the United States, the fee for filing bankruptcy with the courts is generally around $200 for a chapter 7 filing and $190 for a chapter 13. One thing you should know is that a judge in bankruptcy court must approve any attorney fee. The typical costs of attorney fees start at around $500 and up.
How Can I Find a Good Bankruptcy Attorney?
It is important that you find a bankruptcy attorney that is both experienced and reputable. There are some things you should look for to determine if the attorney has both qualities listed above. First consider how to find the bankruptcy attorney. You could look them up in the yellow pages, ask other attorneys or friends and family members for recommendations.
Another important suggestion is to talk to many different attorneys. Do not simply pick the first one you interview. Make appointments with several and ask questions such as:
* How long they have been practicing
* If bankruptcy is their specialty
* Testimonies or References from other clients (if this is a possibility)
* If they will be the one you deal with or if they have paralegals or other aides you will have deal with
* How much they charge
* When they will bill you
The most important thing is to find a bankruptcy attorney that clicks well with your own personality. You will also want an attorney that is hands on and deals with you directly. Furthermore, get everything in writing, when you do finally decide on a bankruptcy attorney.
http://www.website-articles.net/Article/Knowing-When-You-Need-A-Bankruptcy-Attorney/196
Bankruptcy is not a simple procedure. It is extremely complicated and having an attorney on your side can help to make everything run smoothly and efficiently.
What Steps Will a Bankruptcy Attorney Take?
First: The bankruptcy attorney will talk to you about your situation, finances, assets and debts. This is to determine whether bankruptcy truly is the right option for you. This is also done to establish what the bankruptcy attorney needs to do in order to help your bankruptcy case.
Second: He or she will determine which of your debts might or might not be discharged. If you have any property that cannot be protected by going through some pre-bankruptcy planning such as protection of certain assets, listing items you may have tried to "hide" or filing a homestead exemption.
Third: They will prepare and file the bankruptcy petition along with any needed documentation along with it.
Fourth: They will attend the meeting of creditors with you to ensure that the creditors are practicing legal and fair negotiations.
Fifth: They will take care of any necessary matters that are needed to protect you fully and legally prior to the final discharge. This may include any liens that are on your home, any claims of fraud by a creditor or amending any schedules due to omissions or errors.
How Much Will a Bankruptcy Attorney Charge?
The fee for your bankruptcy attorney will vary depending upon how complicated your particular case is and what it involves. Across the United States, the fee for filing bankruptcy with the courts is generally around $200 for a chapter 7 filing and $190 for a chapter 13. One thing you should know is that a judge in bankruptcy court must approve any attorney fee. The typical costs of attorney fees start at around $500 and up.
How Can I Find a Good Bankruptcy Attorney?
It is important that you find a bankruptcy attorney that is both experienced and reputable. There are some things you should look for to determine if the attorney has both qualities listed above. First consider how to find the bankruptcy attorney. You could look them up in the yellow pages, ask other attorneys or friends and family members for recommendations.
Another important suggestion is to talk to many different attorneys. Do not simply pick the first one you interview. Make appointments with several and ask questions such as:
* How long they have been practicing
* If bankruptcy is their specialty
* Testimonies or References from other clients (if this is a possibility)
* If they will be the one you deal with or if they have paralegals or other aides you will have deal with
* How much they charge
* When they will bill you
The most important thing is to find a bankruptcy attorney that clicks well with your own personality. You will also want an attorney that is hands on and deals with you directly. Furthermore, get everything in writing, when you do finally decide on a bankruptcy attorney.
http://www.website-articles.net/Article/Knowing-When-You-Need-A-Bankruptcy-Attorney/196
How To Avoid Bankruptcy with Debt Consolidation
You have unbearable debts and considering filing a bankruptcy as your debt relief?
Don't choose this option unless you really need to do so, look for other alternative if possible such as debt consolidation. Bankruptcy should only be you very last resort solution when you really can't find other solutions.
Bankruptcy has many undesirable consequences that will follow you for many years, it will remain on your credit report for 10 years; almost no lender will even consider you as a borrower for at least 2 years. Debt consolidation will always be your better option than bankruptcy.
Get Help From A Debt Consolidation Agency
There are many prestige debt consolidation agencies out there that can assist you to reduce your debt significantly and help you avoid the consequences of bankruptcy. When you contact a debt consolidation agency you'll be assigned an agent with a wide experience in negotiating with creditors.
The agent will meet you to discuss and analyze you case. He will ask you questions regarding your assets, your income, your debt, your job, your expenses, etc. You will probably be required to provide documentation regarding these subjects too.
After understanding your situation, he will propose a debt consolidation programs which meet your debt situations and repayment ability. Then, he will arrange a meeting with your creditors and negotiate with them new repayment programs.
The people from debt consolidation agencies has a wide experience in negotiation with your creditor and can help you to reduce the amount of money pay for interest and can help you to get an extension on you loan period. Sometimes by means of debt consolidation people can get a reduction on your debt of up to 65%.
Debt Repayment
Once the debt consolidation people get your creditors to approve for the new repayment programs, you will need to start repaying your debt. The repayment options may depend on the negotiation outcome between the debt consolidation agency and your creditors. You may be asked to apply for a consolidation loan and once this consolidation loan get approved, this single loan will be using to pay for your debts and you just need to make your repayment on this single loan.
However, if you didn't apply for a consolidation loan, sometimes you may also get single repay schema from the debt consolidation agency. Many debt consolidation agencies do provide repayment collection service to their clients and distribute them to the creditors. Hence, you just need to make a single repayment to the debt consolidation agencies and the agency will take care of repaying all your debts.
Conclusion
If you are overwhelming with your unbearable debt, you may think of declaring a bankruptcy is your only solution; but this always not the case, there should be other alternatives to repay your debts which you might overlook. Consult and review the propose solutions from debt consolidation agencies, they may help you to avoid bankruptcy with a debt consolidation as your alternative option.
http://www.website-articles.net/Article/How-To-Avoid-Bankruptcy-with-Debt-Consolidation/4282
Don't choose this option unless you really need to do so, look for other alternative if possible such as debt consolidation. Bankruptcy should only be you very last resort solution when you really can't find other solutions.
Bankruptcy has many undesirable consequences that will follow you for many years, it will remain on your credit report for 10 years; almost no lender will even consider you as a borrower for at least 2 years. Debt consolidation will always be your better option than bankruptcy.
Get Help From A Debt Consolidation Agency
There are many prestige debt consolidation agencies out there that can assist you to reduce your debt significantly and help you avoid the consequences of bankruptcy. When you contact a debt consolidation agency you'll be assigned an agent with a wide experience in negotiating with creditors.
The agent will meet you to discuss and analyze you case. He will ask you questions regarding your assets, your income, your debt, your job, your expenses, etc. You will probably be required to provide documentation regarding these subjects too.
After understanding your situation, he will propose a debt consolidation programs which meet your debt situations and repayment ability. Then, he will arrange a meeting with your creditors and negotiate with them new repayment programs.
The people from debt consolidation agencies has a wide experience in negotiation with your creditor and can help you to reduce the amount of money pay for interest and can help you to get an extension on you loan period. Sometimes by means of debt consolidation people can get a reduction on your debt of up to 65%.
Debt Repayment
Once the debt consolidation people get your creditors to approve for the new repayment programs, you will need to start repaying your debt. The repayment options may depend on the negotiation outcome between the debt consolidation agency and your creditors. You may be asked to apply for a consolidation loan and once this consolidation loan get approved, this single loan will be using to pay for your debts and you just need to make your repayment on this single loan.
However, if you didn't apply for a consolidation loan, sometimes you may also get single repay schema from the debt consolidation agency. Many debt consolidation agencies do provide repayment collection service to their clients and distribute them to the creditors. Hence, you just need to make a single repayment to the debt consolidation agencies and the agency will take care of repaying all your debts.
Conclusion
If you are overwhelming with your unbearable debt, you may think of declaring a bankruptcy is your only solution; but this always not the case, there should be other alternatives to repay your debts which you might overlook. Consult and review the propose solutions from debt consolidation agencies, they may help you to avoid bankruptcy with a debt consolidation as your alternative option.
http://www.website-articles.net/Article/How-To-Avoid-Bankruptcy-with-Debt-Consolidation/4282
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