If you have tried every way imaginable to avoid bankruptcy but find that you have no other way out of the situation, the first step you should take before filing is to consult with a bankruptcy attorney. A bankruptcy attorney can be hired or appointed by the court systems to help you through the court proceedings. If you decide to select your own attorney, make sure to select someone with previous experience in bankruptcy law, preferably someone who works specifically with bankruptcy.
No matter which bankruptcy attorney you select, you should always be prepared to ask the attorney questions regarding your own case. Here is a list of questions you should always ask your attorney to make yourself more aware of your bankruptcy proceedings:
* What type of bankruptcy is right for me?
Keep in mind that the Federal court system in the United States has eight different types of bankruptcy filing available. Of course the two most popular are Chapter 13 and Chapter 7, but there are a variety of different details and rules that apply to each type of filing. A good bankruptcy attorney will be able to sift through your financial difficulties and recommend the best type of bankruptcy for you.
* How do I file for bankruptcy?
Filing for bankruptcy will need to be done in the state where you currently live. If you plan to remain represented by a bankruptcy attorney, their legal staff can help to prepare all of the paperwork that is necessary to present to the court system. If you simply want to use the bankruptcy attorney for a consultation, make sure you don’t leave the attorney’s office without the necessary paperwork to begin the bankruptcy process.
* What type of fees will I owe?
This is important to ask in regards to your bankruptcy attorney as well as the court system. Most bankruptcy attorneys will give a free consultation but any remaining time on the proceeding or in court will cost a fee. Some attorneys charge by the hour while others charge a flat fee for bankruptcy services. As well, the court systems usually charge a court fee connected with filing the case, administrative charges and extra Chapter 7 fees to pay a trustee in charge of the bankrupt account.
* Where do I go to file my bankruptcy claim?
Bankruptcy cases are handled by the federal court systems in every state. This usually means that the bankrupt party will need to give the bankruptcy paperwork to the state courthouse, usually in a state’s capitol city. Your bankruptcy attorney should know the address and rules regarding whether or not paperwork can be sent by mail or if paperwork needs to be given in person.
* What happens after filing for bankruptcy?
Immediately after filing for bankruptcy, the court system will send out notification to creditors of the pending bankruptcy case. From this point on, creditors are considered to have a "restraining order" by the debtor and are not allowed to contact the debtor requesting payment. Depending on the type of bankruptcy, a hearing will be scheduled and deadlines will be set for creditors to file a claim and attend the hearing. Of course, all of the proceedings from here are dependent on the type of bankruptcy filed, so it is important to be in contact with your bankruptcy attorney who can more readily answer these questions.
http://www.articleson.com/Article/Bankruptcy-Attorney--Questions-To-Ask/5272
Saturday, September 29, 2007
Bankruptcy Forms: Having The Right Ones
Filling out bankruptcy forms can be one of the most difficult parts about filing for bankruptcy, although these forms are a necessary evil to complete the legal process. Unfortunately these legalities can add major emotional stress to an already difficult situation. Especially if you have decided to go about filing on your own, without the help of a lawyer or financial service company, you may find yourself overwhelmed with trying to understand which bankruptcy forms are right for which chapter.
If you are an individual who is filing for bankruptcy, most likely you will be filling out bankruptcy forms specifically dealing with either Chapter 7 or Chapter 13. Even as a business you may be filing for Chapter 7 or Chapter 13, although you may be filing for Chapter 11 as well. In any case, there are separate forms that need to be filled out with each particular chapter stating the intention to file bankruptcy under that chapter.
The individual or business may also have other special bankruptcy forms that go along with a particular chapter. For instance, Chapter 13 and Chapter 11 are reorganization chapters and will require a form that discusses how and when creditors will gather to meet and discuss the finances of the individual or business for repayment plans. If the individual is filing for a complete liquidation, Chapter 7, forms for possible exemption of assets will need to be filled out if the debtor plans to keep any of their personal belongings.
In all cases, the debtor will be required to file bankruptcy forms regarding a statement of petition, a list of creditors, personal income, personal property, and Declaration of penalty under perjury. These forms will simple let the courts know of the individual or business’ plan to file, the assets the debtor has available, the current available income, and the debtor’s knowledge that lying about finances will have legal consequences.
With the new age of technology, all bankruptcy forms are available through the United States court system at http://www.uscourts.gov/bkforms/bankruptcy_forms.html. Of course the availability of the forms does not necessarily mean that all individuals or businesses will clearly understand which forms apply to them. If you are confused about which forms to fill out, don’t be afraid to ask the court system for help.
Unfortunately the court system may be overwhelmed with other cases they feel are more important making it difficult to find answers to bankruptcy form questions. In this case, you can always consult with a legal aide, a bankruptcy attorney or even a financial service organization that can help you understand the paperwork better.
Even if you don’t plan on hiring an attorney to handle the case for you, it may be worth the time and energy to consult them regarding the paperwork that goes along with the process. You may also want to consider a bankruptcy service organizations online, which can help answer questions and guide debtors through the process.
Keep in mind that each state court system has secretaries available who can type up the forms for you, although there will be an additional charge for this service. Most law firm or legal aide organizations have similar services that may be beneficial in helping debtors get through the process of filing bankruptcy forms.
http://www.articleson.com/Article/Bankruptcy-Forms--Having-The-Right-Ones/6345
If you are an individual who is filing for bankruptcy, most likely you will be filling out bankruptcy forms specifically dealing with either Chapter 7 or Chapter 13. Even as a business you may be filing for Chapter 7 or Chapter 13, although you may be filing for Chapter 11 as well. In any case, there are separate forms that need to be filled out with each particular chapter stating the intention to file bankruptcy under that chapter.
The individual or business may also have other special bankruptcy forms that go along with a particular chapter. For instance, Chapter 13 and Chapter 11 are reorganization chapters and will require a form that discusses how and when creditors will gather to meet and discuss the finances of the individual or business for repayment plans. If the individual is filing for a complete liquidation, Chapter 7, forms for possible exemption of assets will need to be filled out if the debtor plans to keep any of their personal belongings.
In all cases, the debtor will be required to file bankruptcy forms regarding a statement of petition, a list of creditors, personal income, personal property, and Declaration of penalty under perjury. These forms will simple let the courts know of the individual or business’ plan to file, the assets the debtor has available, the current available income, and the debtor’s knowledge that lying about finances will have legal consequences.
With the new age of technology, all bankruptcy forms are available through the United States court system at http://www.uscourts.gov/bkforms/bankruptcy_forms.html. Of course the availability of the forms does not necessarily mean that all individuals or businesses will clearly understand which forms apply to them. If you are confused about which forms to fill out, don’t be afraid to ask the court system for help.
Unfortunately the court system may be overwhelmed with other cases they feel are more important making it difficult to find answers to bankruptcy form questions. In this case, you can always consult with a legal aide, a bankruptcy attorney or even a financial service organization that can help you understand the paperwork better.
Even if you don’t plan on hiring an attorney to handle the case for you, it may be worth the time and energy to consult them regarding the paperwork that goes along with the process. You may also want to consider a bankruptcy service organizations online, which can help answer questions and guide debtors through the process.
Keep in mind that each state court system has secretaries available who can type up the forms for you, although there will be an additional charge for this service. Most law firm or legal aide organizations have similar services that may be beneficial in helping debtors get through the process of filing bankruptcy forms.
http://www.articleson.com/Article/Bankruptcy-Forms--Having-The-Right-Ones/6345
Bankruptcy Law: Some Important Facts
As applying for loans, credit cards and other forms of credit are easier to come by, so are the bankruptcy rates in the United States. In a ten year period, between 1994 and 2004, bankruptcy rates in the United States nearly doubled. The government’s reaction was to take a closer look at reasons parties were filing for bankruptcy, new laws were instated to ensure that individuals and businesses had valid reasons for applying for bankruptcy.
One of the primary laws regarding bankruptcy that was passed in the United States in 2004 is the Bankruptcy Abuse Prevention and Consumer Protection Act. This law just went into effect in October 2005, but has already caused quite a stir in the financial and bankruptcy law arenas. Besides making it more difficult to qualify for Chapter 7 bankruptcy, or complete bankruptcy, the law imposes stricter rules and budgets on Chapter 13 debtors.
A major change the law makes throughout the United States is the need for debtors to have filed tax returns for four years in a row before qualifying for bankruptcy. As well, dischargeable debts, or those debts where personal liability is taken away by the court system, is more difficult to come by. The Act requires that debtors prove good reason for dischargeable debt and is even requiring more debtors to take responsibility with non-dischargeable debt budgets.
As far as the two major types of bankruptcy laws are concerned, Chapter 13 bankruptcy is that which allows the debtor to keep some assets upon proving only limited debt and a steady income. This bankruptcy is excellent for those debtors who have gotten themselves into major financial difficulty but still have means of paying for some assets. The court will set up a repayment schedule and budget that allows for full repayment of mortgages or cars within three to five years.
If repayment is simply not an option, the bankruptcy law requires that a debtor will file for Chapter 7 bankruptcy. This is often referred to as complete liquidation of assets, except for exempt items. Exempt items in a bankruptcy hearing are determined by the court and are usually items that are a necessity, such as a car or work related items. As well, the courts will distribute debts into two categories: non-dischargeable and dischargeable debt.
Non-dischargeable debts also fall into two categories: non-dischargeable due to wrongful conduct on the debtor and non-dischargeable due to public policy. Wrongful misconduct by the debtor could mean theft or laundering money while public policy could include child support payment or court related judgments.
Keep in mind that in either type of bankruptcy, an individual is almost always required to still pay for taxes, student loans, alimony, child support or court related fees. This is the place where many bankrupt parties are misled in the Chapter 7 bankruptcy, as it is often referred to as "a fresh start". While the court can set up payment plans to help the debtor repay public policy debts, even Chapter 7 debtors will still be required to make payments.
Another major point regarding bankruptcy law is that a bankruptcy will stay on a credit report for approximately ten years. This will make it extremely difficult to become eligible for any type of credit, even a credit card, but especially for a car loan or a house mortgage. While some creditors will still offer limited credit to bankrupt individuals, the interest rates and finance charges are usually through the roof. This makes it even more difficult for debtors to get back on their feet.
Last but not least, keep in mind that bankruptcy law will require any co-signers to be responsible for debt payments. If mom or dad signed for a car loan when you were young and you still owe on that car, they are liable for payments. These friends or family members who were once doing you a favor may be brought into the bankruptcy law court proceedings, which can put a strain on friendships and family relations.
For specific bankruptcy law questions it is best to contact a bankruptcy attorney or legal aide in your county or state. Bankruptcy laws and proceedings may vary slightly from state to state, so be sure to make contacts in the state where you plan to file for bankruptcy.
http://www.articleson.com/Article/Bankruptcy-Law--Some-Important-Facts/8564
One of the primary laws regarding bankruptcy that was passed in the United States in 2004 is the Bankruptcy Abuse Prevention and Consumer Protection Act. This law just went into effect in October 2005, but has already caused quite a stir in the financial and bankruptcy law arenas. Besides making it more difficult to qualify for Chapter 7 bankruptcy, or complete bankruptcy, the law imposes stricter rules and budgets on Chapter 13 debtors.
A major change the law makes throughout the United States is the need for debtors to have filed tax returns for four years in a row before qualifying for bankruptcy. As well, dischargeable debts, or those debts where personal liability is taken away by the court system, is more difficult to come by. The Act requires that debtors prove good reason for dischargeable debt and is even requiring more debtors to take responsibility with non-dischargeable debt budgets.
As far as the two major types of bankruptcy laws are concerned, Chapter 13 bankruptcy is that which allows the debtor to keep some assets upon proving only limited debt and a steady income. This bankruptcy is excellent for those debtors who have gotten themselves into major financial difficulty but still have means of paying for some assets. The court will set up a repayment schedule and budget that allows for full repayment of mortgages or cars within three to five years.
If repayment is simply not an option, the bankruptcy law requires that a debtor will file for Chapter 7 bankruptcy. This is often referred to as complete liquidation of assets, except for exempt items. Exempt items in a bankruptcy hearing are determined by the court and are usually items that are a necessity, such as a car or work related items. As well, the courts will distribute debts into two categories: non-dischargeable and dischargeable debt.
Non-dischargeable debts also fall into two categories: non-dischargeable due to wrongful conduct on the debtor and non-dischargeable due to public policy. Wrongful misconduct by the debtor could mean theft or laundering money while public policy could include child support payment or court related judgments.
Keep in mind that in either type of bankruptcy, an individual is almost always required to still pay for taxes, student loans, alimony, child support or court related fees. This is the place where many bankrupt parties are misled in the Chapter 7 bankruptcy, as it is often referred to as "a fresh start". While the court can set up payment plans to help the debtor repay public policy debts, even Chapter 7 debtors will still be required to make payments.
Another major point regarding bankruptcy law is that a bankruptcy will stay on a credit report for approximately ten years. This will make it extremely difficult to become eligible for any type of credit, even a credit card, but especially for a car loan or a house mortgage. While some creditors will still offer limited credit to bankrupt individuals, the interest rates and finance charges are usually through the roof. This makes it even more difficult for debtors to get back on their feet.
Last but not least, keep in mind that bankruptcy law will require any co-signers to be responsible for debt payments. If mom or dad signed for a car loan when you were young and you still owe on that car, they are liable for payments. These friends or family members who were once doing you a favor may be brought into the bankruptcy law court proceedings, which can put a strain on friendships and family relations.
For specific bankruptcy law questions it is best to contact a bankruptcy attorney or legal aide in your county or state. Bankruptcy laws and proceedings may vary slightly from state to state, so be sure to make contacts in the state where you plan to file for bankruptcy.
http://www.articleson.com/Article/Bankruptcy-Law--Some-Important-Facts/8564
The New Bankruptcy Means Test Explained in Plain English
With the new bankruptcy law in effect since October 17, 2005, there is a lot of confusion with regard to the new "means test" requirement. The means test will be used by the courts to determine eligibility for Chapter 7 or Chapter 13 bankruptcy. The purpose of this article is to explain in plain language how the means test works, so that consumers can get a better idea of how they will be affected under the new rules.
When most people think of bankruptcy, they think in terms of Chapter 7, where unsecured debts are normally discharged in full. Bankruptcy of any variety is a difficult ordeal at best, but at least with Chapter 7, a debtor was able to wipe out their debts in full and get a fresh start. Chapter 13, however, is another story, since the debtor must pay back a significant portion of the debt over a 3-5 year period, with 5 years being the standard under the new law.
Prior to the advent of the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005," the most common reason for someone to file under Chapter 13 was to avoid the loss of equity in their home or other property. And while equity protection will continue to be a big reason for people to choose Chapter 13 over Chapter 7, the new rules will force many people to file under Chapter 13 even if they have NO equity. That's because the means test will take into account the debtor's income level.
To apply the means test, the courts will look at the debtor's average income for the 6 months prior to filing and compare it to the median income for that state. For example, the median annual income for a single wage-earner in California is $42,012. If the income is below the median, then Chapter 7 remains open as an option. If the income exceeds the median, the remaining parts of the means test will be applied.
This is where it gets a little bit trickier. The next step in the calculation takes income less living expenses (excluding payments on the debts included in the bankruptcy), and multiplies that figure times 60. This represents the amount of income available over a 5-year period for repayment of the debt obligations.
If the income available for debt repayment over that 5-year period is $10,000 or more, then Chapter 13 will be required. In other words, anyone earning above the state median, and with at least $166.67 per month of available income, will automatically be denied Chapter 7. So for example, if the court determines that you have $200 per month income above living expenses, $200 times 60 is $12,000. Since $12,000 is above $10,000, you're stuck with Chapter 13.
What happens if you are above the median income but do NOT have at least $166.67 per month to pay toward your debts? Then the final part of the means test is applied. If the available income is less than $100 per month, then Chapter 7 again becomes an option. If the available income is between $100 and $166.66, then it is measured against the debt as a percentage, with 25% being the benchmark.
In other words, let's say your income is above the median, your debt is $50,000, and you only have $125 of available monthly income. We take $125 times 60 months (5 years), which equals $7,500 total. Since $7,500 is less than 25% of your $50,000 debt, Chapter 7 is still a possible option for you. If your debt was only $25,000, then your $7,500 of available income would exceed 25% of your debt and you would be required to file under Chapter 13.
To sum up, first figure out whether you are above or below the median income for your state - median income figures are available at http://www.new-bankruptcy-law-info.com. Be sure to account for your spouse's income if you are a two-income family. Next, deduct your average monthly living expenses from your monthly income and multiply by 60. If the result is above $10,000, you're stuck with Chapter 13. If the result is below $6,000, you may still be able to file Chapter 7. If the result is between $6,000 and $10,000, compare it to 25% of your debt. Above 25%, you're looking at Chapter 13 for sure.
Now, in these examples, I have ignored a very important aspect of the new bankruptcy law. As stated above, the amount of monthly income available toward debt repayment is determined by subtracting living expenses from income. However, the figures used by the court for living expenses are NOT your actual documented living expenses, but rather the schedules used by the IRS in the collection of taxes.
A big problem here for most consumers is that their household budgets will not reflect the harsh reality of the IRS approved numbers. So even if you think you are "safe," and will be able to file Chapter 7 because you don't have $100 per month to spare, the court may rule otherwise and still force you into Chapter 13. Some of your actual expenses may be disallowed.
What remains to be seen is how the courts will handle cases where the cost of mortgages or home rentals are inflated well above the government schedules. Will debtors be expected to move into cheaper housing to meet the court's required schedule for living expenses? No one has any answers to these questions yet. It will be up to the courts to interpret the new law in practice as cases proceed through the system.
http://www.articleson.com/Article/The-New-Bankruptcy-Means-Test-Explained-in-Plain-English/9157
When most people think of bankruptcy, they think in terms of Chapter 7, where unsecured debts are normally discharged in full. Bankruptcy of any variety is a difficult ordeal at best, but at least with Chapter 7, a debtor was able to wipe out their debts in full and get a fresh start. Chapter 13, however, is another story, since the debtor must pay back a significant portion of the debt over a 3-5 year period, with 5 years being the standard under the new law.
Prior to the advent of the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005," the most common reason for someone to file under Chapter 13 was to avoid the loss of equity in their home or other property. And while equity protection will continue to be a big reason for people to choose Chapter 13 over Chapter 7, the new rules will force many people to file under Chapter 13 even if they have NO equity. That's because the means test will take into account the debtor's income level.
To apply the means test, the courts will look at the debtor's average income for the 6 months prior to filing and compare it to the median income for that state. For example, the median annual income for a single wage-earner in California is $42,012. If the income is below the median, then Chapter 7 remains open as an option. If the income exceeds the median, the remaining parts of the means test will be applied.
This is where it gets a little bit trickier. The next step in the calculation takes income less living expenses (excluding payments on the debts included in the bankruptcy), and multiplies that figure times 60. This represents the amount of income available over a 5-year period for repayment of the debt obligations.
If the income available for debt repayment over that 5-year period is $10,000 or more, then Chapter 13 will be required. In other words, anyone earning above the state median, and with at least $166.67 per month of available income, will automatically be denied Chapter 7. So for example, if the court determines that you have $200 per month income above living expenses, $200 times 60 is $12,000. Since $12,000 is above $10,000, you're stuck with Chapter 13.
What happens if you are above the median income but do NOT have at least $166.67 per month to pay toward your debts? Then the final part of the means test is applied. If the available income is less than $100 per month, then Chapter 7 again becomes an option. If the available income is between $100 and $166.66, then it is measured against the debt as a percentage, with 25% being the benchmark.
In other words, let's say your income is above the median, your debt is $50,000, and you only have $125 of available monthly income. We take $125 times 60 months (5 years), which equals $7,500 total. Since $7,500 is less than 25% of your $50,000 debt, Chapter 7 is still a possible option for you. If your debt was only $25,000, then your $7,500 of available income would exceed 25% of your debt and you would be required to file under Chapter 13.
To sum up, first figure out whether you are above or below the median income for your state - median income figures are available at http://www.new-bankruptcy-law-info.com. Be sure to account for your spouse's income if you are a two-income family. Next, deduct your average monthly living expenses from your monthly income and multiply by 60. If the result is above $10,000, you're stuck with Chapter 13. If the result is below $6,000, you may still be able to file Chapter 7. If the result is between $6,000 and $10,000, compare it to 25% of your debt. Above 25%, you're looking at Chapter 13 for sure.
Now, in these examples, I have ignored a very important aspect of the new bankruptcy law. As stated above, the amount of monthly income available toward debt repayment is determined by subtracting living expenses from income. However, the figures used by the court for living expenses are NOT your actual documented living expenses, but rather the schedules used by the IRS in the collection of taxes.
A big problem here for most consumers is that their household budgets will not reflect the harsh reality of the IRS approved numbers. So even if you think you are "safe," and will be able to file Chapter 7 because you don't have $100 per month to spare, the court may rule otherwise and still force you into Chapter 13. Some of your actual expenses may be disallowed.
What remains to be seen is how the courts will handle cases where the cost of mortgages or home rentals are inflated well above the government schedules. Will debtors be expected to move into cheaper housing to meet the court's required schedule for living expenses? No one has any answers to these questions yet. It will be up to the courts to interpret the new law in practice as cases proceed through the system.
http://www.articleson.com/Article/The-New-Bankruptcy-Means-Test-Explained-in-Plain-English/9157
Bankruptcy Lawyer: When to Hire One
If you are having difficulties with finances and are considering debt consolidation or bankruptcy, you may also be considering hiring a bankruptcy lawyer. Of course for those who are in a financial rut or on the verge of financial ruin, coming up with extra funds to pay a bankruptcy lawyer can be downright impossible. Despite the shortage of money, it is often best to still consider at least consulting with a bankruptcy lawyer before you begin the process.
The main purpose of a bankruptcy lawyer is to help an individual or business go through the legal procedures for filing bankruptcy. Lawyers are meant to help deal with creditors, meet with the court systems to set up payment plans or repayment programs, gather together and liquidate assets, and fill out and file necessary paperwork. Just as a realtor would be the knowledgeable party in the selling or buying of a home, a bankruptcy lawyer will be that knowledgeable source during a bankruptcy proceeding.
In most state and county legal systems, you are not required to have a bankruptcy lawyer for the legal proceedings. This does not always mean it is wise to do without a bankruptcy lawyer, though, as most specialize in just financial law. Unless the court case would be easily cut and dry or you already know a great deal about the legal system in this case, a bankruptcy lawyer can help from becoming overwhelmed with the legalities of the system.
From the start, a good bankruptcy lawyer should help you to determine which chapter of bankruptcy to file and will offer sound reasons why. If you don’t know anything about the different chapters, this is an excellent reason to begin consulting a lawyer. Many lawyers will even offer a free consultation where you can simply claim the advice and move on to take care of the remainder of the case yourself. Often, though, lawyers will charge by visit or by activity, such as appearing at the courthouse or filing paperwork.
Keep in mind that not all bankruptcy lawyers specialize in the same type of cases, so it is important to find a lawyer who can help you with the type of financial difficulties you are having. Some bankruptcy lawyers work specifically with businesses, while others work solely with individuals. Having a good experience with your lawyer will undoubtedly include finding someone knowledgeable in the areas you need expertise.
Another excellent reason to consider hiring a bankruptcy lawyer is simply to have someone knowledgeable who can help guide you through the paperwork process. In bankruptcy cases the paperwork is the most overwhelming aspect and more often than not, bankruptcy lawyers will actually fill out and file all of the paperwork for you. This takes away the burden of dealing with paperwork in the middle of a financially and emotionally straining time.
If you decide that hiring a bankruptcy lawyer is right for you, ask the local court house for names of lawyers in the area. You may also want to consider asking trusted friends or family advice for finding bankruptcy lawyers. If all else fails, take advantage of technology and research cases in your area to see which bankruptcy lawyers most often represent individuals or businesses. This is a great way to determine who the best lawyers are for your financial needs.
http://www.articleson.com/Article/Bankruptcy-Lawyer--When-to-Hire-One/9185
The main purpose of a bankruptcy lawyer is to help an individual or business go through the legal procedures for filing bankruptcy. Lawyers are meant to help deal with creditors, meet with the court systems to set up payment plans or repayment programs, gather together and liquidate assets, and fill out and file necessary paperwork. Just as a realtor would be the knowledgeable party in the selling or buying of a home, a bankruptcy lawyer will be that knowledgeable source during a bankruptcy proceeding.
In most state and county legal systems, you are not required to have a bankruptcy lawyer for the legal proceedings. This does not always mean it is wise to do without a bankruptcy lawyer, though, as most specialize in just financial law. Unless the court case would be easily cut and dry or you already know a great deal about the legal system in this case, a bankruptcy lawyer can help from becoming overwhelmed with the legalities of the system.
From the start, a good bankruptcy lawyer should help you to determine which chapter of bankruptcy to file and will offer sound reasons why. If you don’t know anything about the different chapters, this is an excellent reason to begin consulting a lawyer. Many lawyers will even offer a free consultation where you can simply claim the advice and move on to take care of the remainder of the case yourself. Often, though, lawyers will charge by visit or by activity, such as appearing at the courthouse or filing paperwork.
Keep in mind that not all bankruptcy lawyers specialize in the same type of cases, so it is important to find a lawyer who can help you with the type of financial difficulties you are having. Some bankruptcy lawyers work specifically with businesses, while others work solely with individuals. Having a good experience with your lawyer will undoubtedly include finding someone knowledgeable in the areas you need expertise.
Another excellent reason to consider hiring a bankruptcy lawyer is simply to have someone knowledgeable who can help guide you through the paperwork process. In bankruptcy cases the paperwork is the most overwhelming aspect and more often than not, bankruptcy lawyers will actually fill out and file all of the paperwork for you. This takes away the burden of dealing with paperwork in the middle of a financially and emotionally straining time.
If you decide that hiring a bankruptcy lawyer is right for you, ask the local court house for names of lawyers in the area. You may also want to consider asking trusted friends or family advice for finding bankruptcy lawyers. If all else fails, take advantage of technology and research cases in your area to see which bankruptcy lawyers most often represent individuals or businesses. This is a great way to determine who the best lawyers are for your financial needs.
http://www.articleson.com/Article/Bankruptcy-Lawyer--When-to-Hire-One/9185
Some Important Bankruptcy Information
It seems as if a lot of people are going bankrupt, if you think about it. A lot of famous people, as well as regular citizens. It is not the end of the world, and you can always earn back the money. As long as you have substantial bankruptcy information, you can get quality advice on how to get back on your feet, in case anything happens. This kind of bankruptcy information makes us confident about ourselves. You know that a lot of people have come upon the same difficulties that you are experiencing. This can be comforting.
There are a lot of self-help books, which help us deal with money problems. If you use one, you will discover that so many others used to have the same trouble that you have now. Especially the do-it-yourself bankruptcies are long, and heavily detailed. They comprise a lot of vital legal bankruptcy information. They are different for each state, because of the judicial practices in the case of bankruptcy. It tends to differ in different countries, as well as in different states. They give you information about everything: the petitioner reports (in a series of forms), assets, liabilities, and offers, as well as full disclosure of information on all creditors—names, addresses, phone numbers, amounts owed, etc..
Bankruptcy information can be given to anyone. You need to know important things about debtors, credits, financial support, interest rates and so on. A lot of bankruptcy information is dedicated to debt taking. You need to be careful when you take debts: consider such things as interests, period of re-pay, bank information and so on. Pick up from where you want to take debts, and make sure your debtors have put strict conditions about the whole debt-taking thing. When you have these pieces of information in mind, you may be sure that you will never go in the red. Bankruptcy can be avoided as long as you plan every single financial step you take in advance.
http://www.articleson.com/Article/Some-Important-Bankruptcy-Information/17689
There are a lot of self-help books, which help us deal with money problems. If you use one, you will discover that so many others used to have the same trouble that you have now. Especially the do-it-yourself bankruptcies are long, and heavily detailed. They comprise a lot of vital legal bankruptcy information. They are different for each state, because of the judicial practices in the case of bankruptcy. It tends to differ in different countries, as well as in different states. They give you information about everything: the petitioner reports (in a series of forms), assets, liabilities, and offers, as well as full disclosure of information on all creditors—names, addresses, phone numbers, amounts owed, etc..
Bankruptcy information can be given to anyone. You need to know important things about debtors, credits, financial support, interest rates and so on. A lot of bankruptcy information is dedicated to debt taking. You need to be careful when you take debts: consider such things as interests, period of re-pay, bank information and so on. Pick up from where you want to take debts, and make sure your debtors have put strict conditions about the whole debt-taking thing. When you have these pieces of information in mind, you may be sure that you will never go in the red. Bankruptcy can be avoided as long as you plan every single financial step you take in advance.
http://www.articleson.com/Article/Some-Important-Bankruptcy-Information/17689
How Do You Rebuild Your Credit After Bankruptcy So You Can Get Your Finances Back Together Again? -
There's no need to be worried about rebuilding credit after bankruptcy. In this article, I will give you some general advice about how to find your way back to the top.
What filing bankruptcy is all about
Bankruptcy is a legal procedure whereby a person in debt can crawl out from under it and start again. The idea behind the personal bankruptcy law is to help out those who are in dire financial straits, and are in debt over their heads. The result is that you do not have to pay back most of your debts. When you file bankruptcy, you are debt free and can move on. The drawback is that it leaves a nasty stain on your credit report and this will remain for the next ten years. This makes it harder but not impossible to reestablish yourself and recover.
Do I really have to wait another ten years before I can get a loan again?
No. As a matter of fact it is possible to get credit again. However, it will be a bit more difficult. One possibility is to get a protected or pre-paid credit card which can be used by depositing money into it, like a bank debit card. This can help you rebuild your credit again, and establish yourself. After a while it can help you start to get loans and credit again before the ten years is up.
What about my debts?
One of the best things about filing is that it gets rid of the creditors once and for all. You won't be bothered with them anymore. As soon as all the paperwork is in and processed, it is illegal for them to keep harassing you, which means you have the law on your side!
Will everybody know that I filed?
No. Very few will actually know about it. However, since the file is accessible to the public it will be visible on your credit rating, and will be kept on file for ten years.
What are the changes I've been hearing about?
The original laws were passed in 1978, and were revised in 2005. The general idea of the new legislation is to make people
who CAN pay some of their debts pay. The laws were being abused by those who could have paid. Here are the major changes that went into effect last year:
-You have to meet certain requirements in order to be able to file. This means that you will be checked out and they will see if your family has an income over the state average. They also want secure that your family is able to make the regular payments.
-You must submit your last year's tax return, in addition to all the other paperwork.
-You must have lived in the state in which you file for at least two years. The reason is that some states have more or less lenient laws.
-Alimony and child support are the debts that have to be paid first.
http://www.articleson.com/Article/How-Do-You-Rebuild-Your--Credit-After-Bankruptcy-So-You-Can-Get-Your-Finances-Back-Together-Again-/21988
What filing bankruptcy is all about
Bankruptcy is a legal procedure whereby a person in debt can crawl out from under it and start again. The idea behind the personal bankruptcy law is to help out those who are in dire financial straits, and are in debt over their heads. The result is that you do not have to pay back most of your debts. When you file bankruptcy, you are debt free and can move on. The drawback is that it leaves a nasty stain on your credit report and this will remain for the next ten years. This makes it harder but not impossible to reestablish yourself and recover.
Do I really have to wait another ten years before I can get a loan again?
No. As a matter of fact it is possible to get credit again. However, it will be a bit more difficult. One possibility is to get a protected or pre-paid credit card which can be used by depositing money into it, like a bank debit card. This can help you rebuild your credit again, and establish yourself. After a while it can help you start to get loans and credit again before the ten years is up.
What about my debts?
One of the best things about filing is that it gets rid of the creditors once and for all. You won't be bothered with them anymore. As soon as all the paperwork is in and processed, it is illegal for them to keep harassing you, which means you have the law on your side!
Will everybody know that I filed?
No. Very few will actually know about it. However, since the file is accessible to the public it will be visible on your credit rating, and will be kept on file for ten years.
What are the changes I've been hearing about?
The original laws were passed in 1978, and were revised in 2005. The general idea of the new legislation is to make people
who CAN pay some of their debts pay. The laws were being abused by those who could have paid. Here are the major changes that went into effect last year:
-You have to meet certain requirements in order to be able to file. This means that you will be checked out and they will see if your family has an income over the state average. They also want secure that your family is able to make the regular payments.
-You must submit your last year's tax return, in addition to all the other paperwork.
-You must have lived in the state in which you file for at least two years. The reason is that some states have more or less lenient laws.
-Alimony and child support are the debts that have to be paid first.
http://www.articleson.com/Article/How-Do-You-Rebuild-Your--Credit-After-Bankruptcy-So-You-Can-Get-Your-Finances-Back-Together-Again-/21988
The Growing Wave of Bankruptcies
Are you fond of using credit cards? If you are then I know you are aware that you have to be careful when using them. I’m a big spender and I often use credit cards to buy any item that catches my fancy. The problem is that I was getting so carried away with my shopping that I did not realize that I accumulated close to $20,000 in debts. As a result of my spending habits, I was having a hard time keeping up with paying my monthly bills. I was so worried with my predicament that when that new laws for bankruptcies were being passed, I was tempted to file.
Since the deadline for filing bankruptcies before the implementation of the new laws was approaching and I have yet to make a decision about filing, I decided to talk it over with my husband. After a long discussion I decided that I would not do it. I realized that I have to take responsibility for being careless with using credit cards. My conscience just couldn’t bear taking the easy way out. I was disgusted when I heard that a friend chose to file despite only having a few thousand in debts. They even have the nerve to purchase a brand new car and to go on a cruise on some tropical island before they filed. Since they charged the car and the cruise, they were able to enjoy them for free.
News about the passing of the new laws caused a 30% increase in the number of bankruptcies filed in 2005. More than two million people filed for personal bankruptcies, making it the highest number ever filed in a one year period. Those statistics means that millions of people found themselves in deep financial trouble last year. A number of reasons have been given for having severe debts including job loss, credit cards, and medical bills. Among them high medical bills seems to be the most frequent cause of huge debts. It just goes to show how important it is to have adequate health care. A major accident or illness can quickly put you into insurmountable debts.
Hopefully the new laws will be able to discourage people from taking advantage of filing bankruptcies. They should encourage people to be more responsible with their money. Filing will not bail them out from spending money on unnecessary furniture or luxury cruises. On the other hand the laws can also make it tougher for people who acquire uncontrollable debts from unexpected mishaps. Be more responsible with using credit cards and make sure that you keep an eye on your financial situation to avoid the complications of filing for bankruptcies.
http://www.articleson.com/Article/The-Growing-Wave-of-Bankruptcies/24508
Since the deadline for filing bankruptcies before the implementation of the new laws was approaching and I have yet to make a decision about filing, I decided to talk it over with my husband. After a long discussion I decided that I would not do it. I realized that I have to take responsibility for being careless with using credit cards. My conscience just couldn’t bear taking the easy way out. I was disgusted when I heard that a friend chose to file despite only having a few thousand in debts. They even have the nerve to purchase a brand new car and to go on a cruise on some tropical island before they filed. Since they charged the car and the cruise, they were able to enjoy them for free.
News about the passing of the new laws caused a 30% increase in the number of bankruptcies filed in 2005. More than two million people filed for personal bankruptcies, making it the highest number ever filed in a one year period. Those statistics means that millions of people found themselves in deep financial trouble last year. A number of reasons have been given for having severe debts including job loss, credit cards, and medical bills. Among them high medical bills seems to be the most frequent cause of huge debts. It just goes to show how important it is to have adequate health care. A major accident or illness can quickly put you into insurmountable debts.
Hopefully the new laws will be able to discourage people from taking advantage of filing bankruptcies. They should encourage people to be more responsible with their money. Filing will not bail them out from spending money on unnecessary furniture or luxury cruises. On the other hand the laws can also make it tougher for people who acquire uncontrollable debts from unexpected mishaps. Be more responsible with using credit cards and make sure that you keep an eye on your financial situation to avoid the complications of filing for bankruptcies.
http://www.articleson.com/Article/The-Growing-Wave-of-Bankruptcies/24508
Credit Can Be Repaired - Use The Three Bandages for Life after Bankruptcy
Millions of Americans are forced to declare bankruptcy every year, but even if you're one of those people, you can begin immediately to rebuild your damaged credit by taking a few relatively easy steps. Here are some ideas to help you get on with your life after bankruptcy:
1. Pay all of your bills on time from now on. Make a pact with yourself never to be late with a payment again. It may require some stricter discipline than you have been used to, but it will go a long way toward reestablishing your creditworthiness in the eyes of potential creditors like banks and credit card companies.
2. Monitor credit applications. Although it will be tempting to do because you'll be eager to get another credit card, resist the temptation to apply for a lot of new credit. Making a bunch of credit applications all at once actually can lower your credit score and make it harder to secure new lines of credit.
3. Get a Secured credit card. Whether you love them or hate them, credit cards are a necessity in today’s world, even if you don't actually plan to use them. There are many things you simply can't do if you don't have a Visa card or other major credit card, such as rent a car, since rental companies will require you to show them a credit card even if you're paying cash. Since that's the reality of the modern world, look into getting a secured credit card.
Secured credit cards require you to put a certain amount of money into an account (typically between $300 and $500), which is then considered as collateral for your purchases using the card. You're then allowed to charge any amount of money on your card, up to the amount you have in your account, and repay it in monthly installments.
The nice thing about secured cards is that they look no different from any other card, so you can use them as ID or to make purchases (as long as you don't go over your limit) and they allow you to begin reestablishing your credit by showing that you can make payments in a timely fashion, regardless of your previous history. As you begin to prove your creditworthiness, you may be rewarded with an increase in the amount you can charge that’s above what you have in your account.
A good place to begin your search for your first secured credit card is through your local credit union. They're often more flexible than banks, and a number of them will actually waive the annual fee that most secured cards charge. If you aren't a member of a credit union, shop hard for your secured card, because there are wide variations in the terms, fees, interest rates, and requirements. Some companies will even charge you a fee just to apply for a card!
You can begin rebuilding your credit almost immediately following a bankruptcy, but it will take time and a commitment to handle your finances more carefully in the future. It just takes self-control and discipline.
http://www.articleson.com/Article/Credit-Can-Be-Repaired---Use-The-Three-Bandages-for-Life-after-Bankruptcy/28568
1. Pay all of your bills on time from now on. Make a pact with yourself never to be late with a payment again. It may require some stricter discipline than you have been used to, but it will go a long way toward reestablishing your creditworthiness in the eyes of potential creditors like banks and credit card companies.
2. Monitor credit applications. Although it will be tempting to do because you'll be eager to get another credit card, resist the temptation to apply for a lot of new credit. Making a bunch of credit applications all at once actually can lower your credit score and make it harder to secure new lines of credit.
3. Get a Secured credit card. Whether you love them or hate them, credit cards are a necessity in today’s world, even if you don't actually plan to use them. There are many things you simply can't do if you don't have a Visa card or other major credit card, such as rent a car, since rental companies will require you to show them a credit card even if you're paying cash. Since that's the reality of the modern world, look into getting a secured credit card.
Secured credit cards require you to put a certain amount of money into an account (typically between $300 and $500), which is then considered as collateral for your purchases using the card. You're then allowed to charge any amount of money on your card, up to the amount you have in your account, and repay it in monthly installments.
The nice thing about secured cards is that they look no different from any other card, so you can use them as ID or to make purchases (as long as you don't go over your limit) and they allow you to begin reestablishing your credit by showing that you can make payments in a timely fashion, regardless of your previous history. As you begin to prove your creditworthiness, you may be rewarded with an increase in the amount you can charge that’s above what you have in your account.
A good place to begin your search for your first secured credit card is through your local credit union. They're often more flexible than banks, and a number of them will actually waive the annual fee that most secured cards charge. If you aren't a member of a credit union, shop hard for your secured card, because there are wide variations in the terms, fees, interest rates, and requirements. Some companies will even charge you a fee just to apply for a card!
You can begin rebuilding your credit almost immediately following a bankruptcy, but it will take time and a commitment to handle your finances more carefully in the future. It just takes self-control and discipline.
http://www.articleson.com/Article/Credit-Can-Be-Repaired---Use-The-Three-Bandages-for-Life-after-Bankruptcy/28568
Bankruptcy Not As a Debt Solution
When people are flooded with debts, and they see no way out of their situation, they start thinking bankruptcy could be the only possible solution towards a debt free life. Almost all debtors are not aware of two main points about bankruptcy:
- Bankruptcy is not a wise method for debt solution
- Bankruptcy brings noxious consequences, affecting financial and social status
Here is a list of the aforementioned noxious consequences:
1. A bankruptcy filing remains on a Credit Report for as long as 10 years, and it also stays on Court Records for as long as 20 years. Thanks to this, your chances of getting a loan and even a job again, will be minimal.
2. You can also lose valuable assets when filing for bankruptcy, or you have to pay the equivalent in money.
3. As we said before, your financial and social status will be deeply affected. People tend to loose faith upon someone who has filed for bankruptcy.
4. If a business owner files for bankruptcy, he will suffer the same consequences as any other person who has filed for bankruptcy. He will not qualify again for a business loan.
5. After declaring bankruptcy, your bank accounts will be closed, credit cards, and everything that has been bought on hired purchase, such as a car or a house will be returned to the owner.
People really need to understand how the bankruptcy process works in order to use it as a last resort, and not as an easy way out.
Not true about Bankruptcy
- Bankruptcy will not get rid of all of your debts. There are some debts that cannot be canceled, such as tax claims, alimony, child support, among others.
- Although bankruptcy relieves the pressure of debt, it still leaves so many consequences that it does not feel like a fresh start. Because of this, bankruptcy is considered a temporary relief.
- Bankruptcy laws are rigorous about including all your accounts. You will not be given the chance to hide any account from the bankruptcy process.
- Bankruptcy turns you into a debt free person at the cost of your assets, either by liquidating them or by putting you into a new payment plan.
http://www.articleson.com/Article/Bankruptcy-Not-As-a-Debt-Solution/29077
- Bankruptcy is not a wise method for debt solution
- Bankruptcy brings noxious consequences, affecting financial and social status
Here is a list of the aforementioned noxious consequences:
1. A bankruptcy filing remains on a Credit Report for as long as 10 years, and it also stays on Court Records for as long as 20 years. Thanks to this, your chances of getting a loan and even a job again, will be minimal.
2. You can also lose valuable assets when filing for bankruptcy, or you have to pay the equivalent in money.
3. As we said before, your financial and social status will be deeply affected. People tend to loose faith upon someone who has filed for bankruptcy.
4. If a business owner files for bankruptcy, he will suffer the same consequences as any other person who has filed for bankruptcy. He will not qualify again for a business loan.
5. After declaring bankruptcy, your bank accounts will be closed, credit cards, and everything that has been bought on hired purchase, such as a car or a house will be returned to the owner.
People really need to understand how the bankruptcy process works in order to use it as a last resort, and not as an easy way out.
Not true about Bankruptcy
- Bankruptcy will not get rid of all of your debts. There are some debts that cannot be canceled, such as tax claims, alimony, child support, among others.
- Although bankruptcy relieves the pressure of debt, it still leaves so many consequences that it does not feel like a fresh start. Because of this, bankruptcy is considered a temporary relief.
- Bankruptcy laws are rigorous about including all your accounts. You will not be given the chance to hide any account from the bankruptcy process.
- Bankruptcy turns you into a debt free person at the cost of your assets, either by liquidating them or by putting you into a new payment plan.
http://www.articleson.com/Article/Bankruptcy-Not-As-a-Debt-Solution/29077
5 Easy Steps to Rebuild Your Credit after Bankruptcy
Bankruptcy often is the last ultimate solution for many debtors who have unbearable debts. With filing a bankruptcy, you will get rid of your debts instantly and relief you from the harassing call of your creditors.
Although bankruptcy has many undesirable consequences such as your bad credit record will remain on your credit report for 7-10 years, but with a little work, you can improve your credit even before these negative records expire. Here are five easy steps you can take to rebuild your credit.
Step 1: Get to know your current credit status
The first step to rebuilding your credit is to look at exactly where you stand. Order all your three credit reports from those three national credit bureaus: TransUnion, Equifax, and Experian. You can order these reports online, it easy and secure.
Print each report and review it closely. Try to understand the information listed in your credit reports and highlight any negative records or inaccuracies that are damaging your credit score.
Step 2: Check the expiration dates
By law, your bad credit record will remain in your credit report for 7 to 10 years, but the exact expiry date might be different among these 3 reports. Your bad record will still remain at your credit report although you have pay off your old debts and discharge from bankruptcy.
Look up the exact date of each of bad records including judgments, liens, charge-offs, late payments, bankruptcy filings, and collection records. You will likely see a major improvement in your credit score when these records expire.
Step 3: Request For Correct On Any Inaccurate Records
If you find inaccurate records, fraudulent accounts, or records that should have expired on you credit reports, you have the right to send a separate dispute letter to each of the credit bureaus to correct your Equifax, Experian, and TransUnion records. The bureaus will initial a 30 days investigation to see whether your requests are valid and if so, they will correct the inaccuracy in your credit report.
Just one note, don't try to dispute any of the positive information listed in your credit reports and it is a waste of time to attempt to dispute these records. Disputing positive information may actually harm your credit scores.
Step 4: Start to create good credits
Since there is no way to remove your bad record from your credit report, the best way to improve your credit score is to add good credits and building up your credit from there. You can easy do this by open up a new credit card from banks like Orchard Bank (Orchard bank has credit card plan designed specially to help people rebuild their credit after bankruptcy).
Use this new credit card responsibly and make the monthly payment timely; with this you are building new history of good credit behavior on your credit report. Over time, you may want to open additional credit card accounts or obtain a loan to boost your credit score even higher.
Step 5: Monitor your progress
Subscribe to a credit card monitoring service or get a credit card monitoring software and use it to track your credit score progress closely. Your credit score should improve steadily as you continue to use credit responsibly and add new positive information to your credit reports.
http://www.articleson.com/Article/5-Easy-Steps-to-Rebuild-Your-Credit-after-Bankruptcy/30000
Although bankruptcy has many undesirable consequences such as your bad credit record will remain on your credit report for 7-10 years, but with a little work, you can improve your credit even before these negative records expire. Here are five easy steps you can take to rebuild your credit.
Step 1: Get to know your current credit status
The first step to rebuilding your credit is to look at exactly where you stand. Order all your three credit reports from those three national credit bureaus: TransUnion, Equifax, and Experian. You can order these reports online, it easy and secure.
Print each report and review it closely. Try to understand the information listed in your credit reports and highlight any negative records or inaccuracies that are damaging your credit score.
Step 2: Check the expiration dates
By law, your bad credit record will remain in your credit report for 7 to 10 years, but the exact expiry date might be different among these 3 reports. Your bad record will still remain at your credit report although you have pay off your old debts and discharge from bankruptcy.
Look up the exact date of each of bad records including judgments, liens, charge-offs, late payments, bankruptcy filings, and collection records. You will likely see a major improvement in your credit score when these records expire.
Step 3: Request For Correct On Any Inaccurate Records
If you find inaccurate records, fraudulent accounts, or records that should have expired on you credit reports, you have the right to send a separate dispute letter to each of the credit bureaus to correct your Equifax, Experian, and TransUnion records. The bureaus will initial a 30 days investigation to see whether your requests are valid and if so, they will correct the inaccuracy in your credit report.
Just one note, don't try to dispute any of the positive information listed in your credit reports and it is a waste of time to attempt to dispute these records. Disputing positive information may actually harm your credit scores.
Step 4: Start to create good credits
Since there is no way to remove your bad record from your credit report, the best way to improve your credit score is to add good credits and building up your credit from there. You can easy do this by open up a new credit card from banks like Orchard Bank (Orchard bank has credit card plan designed specially to help people rebuild their credit after bankruptcy).
Use this new credit card responsibly and make the monthly payment timely; with this you are building new history of good credit behavior on your credit report. Over time, you may want to open additional credit card accounts or obtain a loan to boost your credit score even higher.
Step 5: Monitor your progress
Subscribe to a credit card monitoring service or get a credit card monitoring software and use it to track your credit score progress closely. Your credit score should improve steadily as you continue to use credit responsibly and add new positive information to your credit reports.
http://www.articleson.com/Article/5-Easy-Steps-to-Rebuild-Your-Credit-after-Bankruptcy/30000
Simple Check to Test Your Eligibility for Filling Chapter 7 Bankruptcy
Most people who file for bankruptcy choose Chapter 7 instead of Chapter 13 because it's fast, effective, easy to file, and doesn't require payments over time. Chapter 7 bankruptcy usually takes the least time to complete. The process is over in about 4 to 6 months, commonly requiring only one trip to the courthouse by the person filing for bankruptcy to emerge debt-free.
However not every persons who are seeking of getting debt free by filling bankruptcy will be eligible to file under chapter 7. If you remaining income after subtracting what you will spend on certain allowed expenses and monthly payments for child support, tax debts, secured debts such as a mortgage or car loan, and a few other types of debts is sufficient to support the payment under chapter 13 repayment plan, then, you will not allow to file bankruptcy under chapter 7.
Check Your Eligibility Criteria
The first step to check your eligibility of filling chapter 7 bankruptcy is to measure your average income for past six months against the median income for a family of your size in your state.
Once you have calculated your income, compare it to the median income for your state (You can find the median income by state information from www .usdoj.gov/ust; click the Mean Testing Information). If your calculated average income is less than or equal to the median income of your state, you can file under chapter 7 bankruptcy, else you need to go through another eligibility test, called "Mean Test".
The "Mean Test" based on the outcome from calculated disposable income. To get your disposable income, calculate your average monthly income as describe in above paragraph. From that amount, you subtract both of the following:
* Certain allowed expenses such as clothing, transportation, food and so on; in amounts set by the IRS (Note that this amount may be lower than your actual spending).
* Monthly payments you will have to make on secured and priority debts. Secured debts such as mortgage and/or car loan; priority debts include child support, alimony, tax debts, and wages owed to employees.
If your total monthly disposable income after subtracting these amounts is less than $100, you pass the means test, and will be allowed to file for Chapter 7. If your total disposable income is more than $166.66 then your will automatically force to Chapter 13 unless your have a solid reason with proven facts that you are facing a special circumstances that aren't reflected in the calculations above. You may be allowed to file under chapter 7, but this is a case by case basic.
What if you disposable income fall in between $100 and $166.66? If your disposable income is in this range, you must figure out whether what you have left over is enough to pay more than 25% of your unsecured, non priority debts such as credit cards, student loans and medical bills. If not, you pass the means test, and Chapter 7 remains an option else you have flunked the means test, and will be prohibited from using Chapter 7.
http://www.articleson.com/Article/Simple-Check-to-Test-Your-Eligibility-for-Filling-Chapter-7-Bankruptcy/31210
However not every persons who are seeking of getting debt free by filling bankruptcy will be eligible to file under chapter 7. If you remaining income after subtracting what you will spend on certain allowed expenses and monthly payments for child support, tax debts, secured debts such as a mortgage or car loan, and a few other types of debts is sufficient to support the payment under chapter 13 repayment plan, then, you will not allow to file bankruptcy under chapter 7.
Check Your Eligibility Criteria
The first step to check your eligibility of filling chapter 7 bankruptcy is to measure your average income for past six months against the median income for a family of your size in your state.
Once you have calculated your income, compare it to the median income for your state (You can find the median income by state information from www .usdoj.gov/ust; click the Mean Testing Information). If your calculated average income is less than or equal to the median income of your state, you can file under chapter 7 bankruptcy, else you need to go through another eligibility test, called "Mean Test".
The "Mean Test" based on the outcome from calculated disposable income. To get your disposable income, calculate your average monthly income as describe in above paragraph. From that amount, you subtract both of the following:
* Certain allowed expenses such as clothing, transportation, food and so on; in amounts set by the IRS (Note that this amount may be lower than your actual spending).
* Monthly payments you will have to make on secured and priority debts. Secured debts such as mortgage and/or car loan; priority debts include child support, alimony, tax debts, and wages owed to employees.
If your total monthly disposable income after subtracting these amounts is less than $100, you pass the means test, and will be allowed to file for Chapter 7. If your total disposable income is more than $166.66 then your will automatically force to Chapter 13 unless your have a solid reason with proven facts that you are facing a special circumstances that aren't reflected in the calculations above. You may be allowed to file under chapter 7, but this is a case by case basic.
What if you disposable income fall in between $100 and $166.66? If your disposable income is in this range, you must figure out whether what you have left over is enough to pay more than 25% of your unsecured, non priority debts such as credit cards, student loans and medical bills. If not, you pass the means test, and Chapter 7 remains an option else you have flunked the means test, and will be prohibited from using Chapter 7.
http://www.articleson.com/Article/Simple-Check-to-Test-Your-Eligibility-for-Filling-Chapter-7-Bankruptcy/31210
What are your alternatives for filing bankruptcy?
The term ‘bankruptcy’ conjures up an image of someone publicly disgraced and broke. When in deep debts, one might feel that bankruptcy is their only hope. But bankruptcy alternative can help you eliminate debt without encountering any negative publicity.
Why should you consider bankruptcy alternative?
Bankruptcy has many undesirable consequences that will trail your life for long. It will remain on your credit report for nearly 10 years due to which no reputed lender will consider you as a borrower. There is a lot of negative publicity involved with a bankruptcy as well.
The advent of technology has made available information and help for a debtor who is considering bankruptcy alternative with a simple click. The debtors must research before they choose a bankruptcy alternative to ensure that it does not have much worse consequences.
Bankruptcy Alternatives:
• Consolidation loans: You can consolidate all your debts into one affordable and easy to manage monthly payment with consolidation loans. These loans speed up paying time and reduce your monthly bills to a great extent. Consolidation loans will also help get harassing creditors off your back and help you avoid bankruptcy.
• Out-of-Court Settlement: The debtor can also opt to settle his/her unsecured debt at a reduced amount through an out-of-court settlement. Independent advisors who work with various companies will help negotiate an out-of-court settlement with your creditor.
• Individual Voluntary Agreement (IVA): IVA stands for Individual Voluntary Agreement. It was introduced as a part of the Insolvency Act of 1986 and is a legally approved debt solution. When you opt for an IVA as a debt solution, you enter in to an agreement with your creditors. An Insolvency Practitioner helps to formulate your IVA. It will help freeze your high interest debts and ensure that you are debt free in five years or less without any negative publicity.
• Credit Counseling: Credit counseling agencies will deal with your creditors. They will negotiate lower interest rates and comfortable repayment options to suit your pocket. Credit counseling will offer all the information and help you need to deal with your debts.
Whatever you choose as an alternative to bankruptcy, act fast! There are a number of online services which can help you with your queries. They will be able to achieve the results that you were unable to achieve on your own. Apart from avoiding bankruptcy right now, it is important to understand how you can avoid the pitfalls of debt in the future.
http://www.articleson.com/Article/What-are-your-alternatives-for-filing-bankruptcy-/31546
Why should you consider bankruptcy alternative?
Bankruptcy has many undesirable consequences that will trail your life for long. It will remain on your credit report for nearly 10 years due to which no reputed lender will consider you as a borrower. There is a lot of negative publicity involved with a bankruptcy as well.
The advent of technology has made available information and help for a debtor who is considering bankruptcy alternative with a simple click. The debtors must research before they choose a bankruptcy alternative to ensure that it does not have much worse consequences.
Bankruptcy Alternatives:
• Consolidation loans: You can consolidate all your debts into one affordable and easy to manage monthly payment with consolidation loans. These loans speed up paying time and reduce your monthly bills to a great extent. Consolidation loans will also help get harassing creditors off your back and help you avoid bankruptcy.
• Out-of-Court Settlement: The debtor can also opt to settle his/her unsecured debt at a reduced amount through an out-of-court settlement. Independent advisors who work with various companies will help negotiate an out-of-court settlement with your creditor.
• Individual Voluntary Agreement (IVA): IVA stands for Individual Voluntary Agreement. It was introduced as a part of the Insolvency Act of 1986 and is a legally approved debt solution. When you opt for an IVA as a debt solution, you enter in to an agreement with your creditors. An Insolvency Practitioner helps to formulate your IVA. It will help freeze your high interest debts and ensure that you are debt free in five years or less without any negative publicity.
• Credit Counseling: Credit counseling agencies will deal with your creditors. They will negotiate lower interest rates and comfortable repayment options to suit your pocket. Credit counseling will offer all the information and help you need to deal with your debts.
Whatever you choose as an alternative to bankruptcy, act fast! There are a number of online services which can help you with your queries. They will be able to achieve the results that you were unable to achieve on your own. Apart from avoiding bankruptcy right now, it is important to understand how you can avoid the pitfalls of debt in the future.
http://www.articleson.com/Article/What-are-your-alternatives-for-filing-bankruptcy-/31546
Can You Choose the Type Of Bankruptcy Filling?
In general, you can choose the type of bankruptcy for filling, under certain circumstances you may only eligible for certain type of bankruptcy filling. In most cases, debtors will choose chapter 7 for filling because it's fast, effective, easy to file, and doesn't require payments over time. Chapter 7 bankruptcy usually takes the least time to complete. Other common types of bankruptcy filling include chapter 12 and chapter 13.
Yes, you can choose the type of bankrupt filling but you may not eligible for it. Let see the criteria of filling for a few common bankruptcy types.
Bankruptcy - Chapter 12
If you are a farmer or a fisherman, for instance, you may consider chapter 12 filing. Chapter 12 bankruptcy filling is tailored for "family farmers" or "family fishermen" with "regular annual income". It is more streamlined, less complicated, and less expensive than chapter 11 (bankruptcy filling for large corporate reorganization).
Chapter 12 has allowance for situations in which family farmers or fishermen have income that is seasonal in nature. Thus, debtors with seasonal income will find it to be advantageous to file their bankruptcy under chapter 12. In additional, Relief under chapter 12 is voluntary, and only the debtor may file a petition under the chapter.
Bankruptcy - Chapter 7
Beside the farmer and fishermen, most ordinary debtors will choose chapter 7 as their bankruptcy filling type. The key factors of the popularity of this bankruptcy type are it does not need payments over time, easy to file and less expensive. However not every persons who are seeking of getting debt free by filling bankruptcy will be eligible to file under chapter 7. To be eligible for chapter 7 bankruptcy filling, you must meet the below criteria:
* You must pass the median income test:
You calculated average income must not more than the median income for your state (You can find the median income by state information from www .usdoj.gov/ust; click the Mean Testing Information).
* If you failed the median income test, you second chance for chapter 7 filling is on mean test:
Mean test is calculated based on your disposable income. To get your disposable income, calculate your average monthly income as describe in above paragraph. From that amount, subtract your allowed expenses (stated in IRS) and monthly payments you will have to make on secured and priority debts. If your monthly disposable income after subtracting these amounts is less than $100, you pass the means test, and will be allowed to file for Chapter 7.
Bankruptcy - Chapter 13
You will be forced to file your bankruptcy under chapter 13 if you are not eligible for chapter 7. Or if you have file bankruptcy before under chapter 7, then you need to go for chapter 13 for second bankruptcy filling.
Chapter 13, which has also been known as a wage earner's plan, is an interest-free repayment plan where a debtor repays at least some of his or her unsecured debts with regular payments over five years.
In chapter 7 filling, debtors need to liquidate their assets to pay to their creditors (creditors will share the amount from the liquidation); whereas, the debtor generally can continue to live in his or her home so long as the debtor complies with the terms of the Chapter 13 arrangement. This is one of the advantages of chapter 13 over chapter 7 bankruptcy filling.
http://www.articleson.com/Article/Can-You-Choose-the-Type-Of-Bankruptcy-Filling-/32419
Yes, you can choose the type of bankrupt filling but you may not eligible for it. Let see the criteria of filling for a few common bankruptcy types.
Bankruptcy - Chapter 12
If you are a farmer or a fisherman, for instance, you may consider chapter 12 filing. Chapter 12 bankruptcy filling is tailored for "family farmers" or "family fishermen" with "regular annual income". It is more streamlined, less complicated, and less expensive than chapter 11 (bankruptcy filling for large corporate reorganization).
Chapter 12 has allowance for situations in which family farmers or fishermen have income that is seasonal in nature. Thus, debtors with seasonal income will find it to be advantageous to file their bankruptcy under chapter 12. In additional, Relief under chapter 12 is voluntary, and only the debtor may file a petition under the chapter.
Bankruptcy - Chapter 7
Beside the farmer and fishermen, most ordinary debtors will choose chapter 7 as their bankruptcy filling type. The key factors of the popularity of this bankruptcy type are it does not need payments over time, easy to file and less expensive. However not every persons who are seeking of getting debt free by filling bankruptcy will be eligible to file under chapter 7. To be eligible for chapter 7 bankruptcy filling, you must meet the below criteria:
* You must pass the median income test:
You calculated average income must not more than the median income for your state (You can find the median income by state information from www .usdoj.gov/ust; click the Mean Testing Information).
* If you failed the median income test, you second chance for chapter 7 filling is on mean test:
Mean test is calculated based on your disposable income. To get your disposable income, calculate your average monthly income as describe in above paragraph. From that amount, subtract your allowed expenses (stated in IRS) and monthly payments you will have to make on secured and priority debts. If your monthly disposable income after subtracting these amounts is less than $100, you pass the means test, and will be allowed to file for Chapter 7.
Bankruptcy - Chapter 13
You will be forced to file your bankruptcy under chapter 13 if you are not eligible for chapter 7. Or if you have file bankruptcy before under chapter 7, then you need to go for chapter 13 for second bankruptcy filling.
Chapter 13, which has also been known as a wage earner's plan, is an interest-free repayment plan where a debtor repays at least some of his or her unsecured debts with regular payments over five years.
In chapter 7 filling, debtors need to liquidate their assets to pay to their creditors (creditors will share the amount from the liquidation); whereas, the debtor generally can continue to live in his or her home so long as the debtor complies with the terms of the Chapter 13 arrangement. This is one of the advantages of chapter 13 over chapter 7 bankruptcy filling.
http://www.articleson.com/Article/Can-You-Choose-the-Type-Of-Bankruptcy-Filling-/32419
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