Federal bankruptcy laws are only for companies and firms that wish to file for bankruptcy, individuals cannot go for these options. Chapter 11 and Chapter 7 are the two main categories of federal bankruptcy laws that businesses can choose from.
Chapter 11 provides the company or firm with an opportunity to rebuild the business in spite of crippling debts. The federal court plays an active part in such cases, as it has to give the approval for all the business decisions made once the case is filed. Chapter 11 is preferred to Chapter 7 because the company will not be closed to liquidate its assets in this instance. Also, unlike in Chapter 7, the company does not become a security asset for lien and can still be run as usual.
Like a trustee in Chapter 7 and Chapter 13 cases, the SEC plays an important role in Chapter 11. The SEC has to determine if the case is fraudulent and if the company or firm really needs to file the case instead of just pretension for the benefit of the shareholders and investors. If the company is involved in trading after it has filed for bankruptcy, then the details relating to such must be registered with the SEC.
The money will be repaid to the creditors as decided by the law. Bondholders and investors with secured collateral are usually paid first. Stockholders will be paid only if the company is able to stand back on its feet and able to make some profits in spite of filing the bankruptcy case. However, they may continue to trade with their existing stock in the local stock market unless the company liquidates these shares. Owners will be paid last after all the debt is returned to all the above-mentioned people involved with the company.
During bankruptcy, the company might not be able to provide the bondholders with principle and the stockholders with dividendsPsychology Articles, but they might try to make up for this by providing then with new stock that they put on the market for regaining their stand. The stockholders might not even receive this if the company has more liabilities than assets. A re-organization plan is prepared by a committee of creditors and stockholders of that company and of those appointed by the trustee to enable the company to buy more time while trying to get on to its feet. This plan is reviewed by the SEC and then has to be approved by the court before being put into action.
http://www.articlesfactory.com/articles/finance/federal-bankruptcy-laws.html
Saturday, October 13, 2007
Business Bankruptcy Laws
Businesses, companies, and firms can file for bankruptcy if they are on the verge of failing all their creditors and losing their position in the market. The laws that deal with such cases are federal bankruptcy laws or Chapter 11 and Chapter 13 laws.
One advantage of filing under federal bankruptcy law instead of under Chapter 7 is that this does not require the liquidating of the company. Instead, the company will be run along with the debt being paid as decided, which will give the firm or company a chance to try to make profits again. However, all the decisions made by the management after the case is files must be approved by the federal court.
In case the company files for bankruptcy under Chapter 11, all the assets remain with the company. The company may liquidate stocks and such to pay off some part of the credit but this can be solely at the company\'s discretion. However, regular reports must be sent to the court as to any decision being made in the company.
Cases filed under this law are usually very expensive and take a long time to resolve since they deal with a number of people involved in the company instead of with just one individual as in other cases. Even the filing fee for such cases is very expensive. The management must be in a position to incur all such costs when filing the case. AlsoBusiness Management Articles, a lot of planning must be done before filing the case to avoid too many delays later in the case.
The company can form a committee of creditors to come up with a plan to repay their debts. This involves simultaneously running the company and incurring new expenses and following a court-approved plan to pay off the debt. It is suggested to have attorneys in the committee to avoid litigations in the future relating to this plan.
http://www.articlesfactory.com/articles/finance/business-bankruptcy-laws.html
One advantage of filing under federal bankruptcy law instead of under Chapter 7 is that this does not require the liquidating of the company. Instead, the company will be run along with the debt being paid as decided, which will give the firm or company a chance to try to make profits again. However, all the decisions made by the management after the case is files must be approved by the federal court.
In case the company files for bankruptcy under Chapter 11, all the assets remain with the company. The company may liquidate stocks and such to pay off some part of the credit but this can be solely at the company\'s discretion. However, regular reports must be sent to the court as to any decision being made in the company.
Cases filed under this law are usually very expensive and take a long time to resolve since they deal with a number of people involved in the company instead of with just one individual as in other cases. Even the filing fee for such cases is very expensive. The management must be in a position to incur all such costs when filing the case. AlsoBusiness Management Articles, a lot of planning must be done before filing the case to avoid too many delays later in the case.
The company can form a committee of creditors to come up with a plan to repay their debts. This involves simultaneously running the company and incurring new expenses and following a court-approved plan to pay off the debt. It is suggested to have attorneys in the committee to avoid litigations in the future relating to this plan.
http://www.articlesfactory.com/articles/finance/business-bankruptcy-laws.html
Atlanta Bankruptcy Lawyers
Bankruptcy derives its meaning from the Italian word \"banca rotta\", which means broken bench. Broken bench represents the ancient Italian custom of breaking a businessman\'s trading bench if he did not pay his debts. Over the centuries, the law has been framed to protect the interests of both creditors as well as debtors as a decent way to manage the debtor\'s financial crisis. The US bankruptcy law is a court process for managing bankruptcy that may hit both consumers as well as businesses. A bankruptcy lawyer would help to eliminate and repay debts as per the bankruptcy court\'s protection system.
Bankruptcy is of two kinds: liquidation and reorganization. Liquidation bankruptcy, covered under Chapter 7, involves the wiping out of the debts by selling nonexempt property and using the credits to pay the creditors. On the other hand, in a reorganization bankruptcy, which is covered under Chapters 11, 12 and 13, the debtor makes a plan to repay either a part of the debt or the entire debt. The pay off period under reorganized bankruptcy is usually around 3 to 5 years.
Hiring a lawyer in a bankruptcy case would prove to be very useful at all stages of the bankruptcy process. Bankruptcy lawyers would help in settling unsecured accounts like credit cards, personal loans, utility bills etc for less than the debt amount, thus providing an alternative to bankruptcy. Bankruptcy lawyers would also help to evaluate the options as to the kind of bankruptcy that has to be filed. They also help to settle assets in order and handle the files if the debts are too large and involve considerable assets.
Bankruptcy forms in Georgia are also similar to those in other states, though some additional forms may be required as per local rules. Atlanta bankruptcy lawyers are bound by the fee guidelines given by the Atlanta bankruptcy court. These fees are similar to those paid to bankruptcy lawyers in other major metropolitan area in the US. While choosing a bankruptcy lawyer in Atlanta, care should be taken to select one who has experience in handling bankruptcy cases and who has a proven track record of handling such cases successfully.
Information about Atlanta bankruptcy lawyers is available in yellow pages, via search engines like Google and Yahoo, and through advertisements of law firms. There are also attorney directories available on the internet which would provide comprehensive information about Atlanta bankruptcy lawyers. Information about Atlanta bankruptcy lawyers is also available through the county bar association and the state Bar AssociationFind Article, which is a part of the American Bar Association. Friends and family members may also provide useful referrals for good bankruptcy lawyers.
http://www.articlesfactory.com/articles/law/atlanta-bankruptcy-lawyers.html
Bankruptcy is of two kinds: liquidation and reorganization. Liquidation bankruptcy, covered under Chapter 7, involves the wiping out of the debts by selling nonexempt property and using the credits to pay the creditors. On the other hand, in a reorganization bankruptcy, which is covered under Chapters 11, 12 and 13, the debtor makes a plan to repay either a part of the debt or the entire debt. The pay off period under reorganized bankruptcy is usually around 3 to 5 years.
Hiring a lawyer in a bankruptcy case would prove to be very useful at all stages of the bankruptcy process. Bankruptcy lawyers would help in settling unsecured accounts like credit cards, personal loans, utility bills etc for less than the debt amount, thus providing an alternative to bankruptcy. Bankruptcy lawyers would also help to evaluate the options as to the kind of bankruptcy that has to be filed. They also help to settle assets in order and handle the files if the debts are too large and involve considerable assets.
Bankruptcy forms in Georgia are also similar to those in other states, though some additional forms may be required as per local rules. Atlanta bankruptcy lawyers are bound by the fee guidelines given by the Atlanta bankruptcy court. These fees are similar to those paid to bankruptcy lawyers in other major metropolitan area in the US. While choosing a bankruptcy lawyer in Atlanta, care should be taken to select one who has experience in handling bankruptcy cases and who has a proven track record of handling such cases successfully.
Information about Atlanta bankruptcy lawyers is available in yellow pages, via search engines like Google and Yahoo, and through advertisements of law firms. There are also attorney directories available on the internet which would provide comprehensive information about Atlanta bankruptcy lawyers. Information about Atlanta bankruptcy lawyers is also available through the county bar association and the state Bar AssociationFind Article, which is a part of the American Bar Association. Friends and family members may also provide useful referrals for good bankruptcy lawyers.
http://www.articlesfactory.com/articles/law/atlanta-bankruptcy-lawyers.html
Second Mortgage Loans After Bankruptcy
The purpose of bankruptcy is to give the debtor a new start in his life by repaying creditors in a systematic way. Thus, bankruptcy does not prevent anybody from taking a loan. Today, the lending rules are becoming much more relaxed, and you should not worry that you have lost your dream to buy a home or acquire a property even after you have gone bankrupt.
A second mortgage after bankruptcy requires at least two years waiting on part of the borrower. He should also pay all the bills on time during this period and save for the down payment amount, if possible. One fact that you have to keep in mind is that you may not qualify for the best interest rates, but your determined efforts to re-establish your credit could convince the creditor. A large down payment might impress the lender, and he may offer a lower interest rate. PMI is the other factor that would be involved, due to the poor credit history. Avoid mortgages with two to three years of prepayment penalties. Remember, the rates on mortgage after insolvency may be up to 12 times higher than that of the regular mortgage.
If you plan to get a mortgage within two years of bankruptcy discharge, you have to provide evidence for the flawless on-time payments you have made since your bankruptcy. But after the two-year waiting period, it is easy to get a mortgage with a small down payment, and you may even qualify for a 100% mortgage.
http://www.articlesfactory.com/articles/finance/second-mortgage-loans-after-bankruptcy.html
A second mortgage after bankruptcy requires at least two years waiting on part of the borrower. He should also pay all the bills on time during this period and save for the down payment amount, if possible. One fact that you have to keep in mind is that you may not qualify for the best interest rates, but your determined efforts to re-establish your credit could convince the creditor. A large down payment might impress the lender, and he may offer a lower interest rate. PMI is the other factor that would be involved, due to the poor credit history. Avoid mortgages with two to three years of prepayment penalties. Remember, the rates on mortgage after insolvency may be up to 12 times higher than that of the regular mortgage.
If you plan to get a mortgage within two years of bankruptcy discharge, you have to provide evidence for the flawless on-time payments you have made since your bankruptcy. But after the two-year waiting period, it is easy to get a mortgage with a small down payment, and you may even qualify for a 100% mortgage.
http://www.articlesfactory.com/articles/finance/second-mortgage-loans-after-bankruptcy.html
A Little Advice for Those Considering Chapter 7 Bankruptcy
If you are in a tough financial situation, you may be considering Chapter 7 Bankruptcy. Before you move forward, consider several alternatives first. If your financial pressures are due to Credit Card or other debt, consider debt consolidation or working with a financial counselor. You may have already taken those steps and find no other options than bankruptcy.
Chapter 7 bankruptcy may help you in eliminated most kinds of unsecured debt. Examples of these debts are credit cards; personal loans, judgments, and medical bills.
Most of the time, you can keep your property. You must be current on your car and mortgage payment. In addition, the courts will assess the amount of equity you have in your current property. If you have significant equity, you may be asked to leverage your equity to pay your debts first. The goal with Chapter 7 is to eliminate your debt while keeping your personal belongings.
There are some key facts that you need to know before you commit to Chapter 7 bankruptcy.
Here are a few answers to common questions for those filing for Chapter 7. Please read further.
Will creditors continue to harass me?
You will want to retain a Chapter 7 Attorney immediately. By working with a specialized attorney, they will immediately give you record number. When the creditors call, you can give them your record number and refer them to your attorney.
Will I lost everything if I file for Chapter 7?
Typically, you will retain all your personal belongings, including your house. A good Chapter 7 lawyer will insure that your personal effects are safe. Most often your car will be safe as well. Your attorney will leverage state bankruptcy exemptions to protect these items.
More often than not you will be more at risk in losing your personal property if you do not file for Chapter 7 to protect them. Make sure you file before you get so far behind that you cannot do anything and get out of the rut you find yourself in.
Will everyone know I have filed for bankruptcy?
The short answer is no. The only parties that will know are the IRS, creditors, and the bankruptcy court. Your employer will not be notified when you file for bankruptcy either unless they are also a creditor of yours. Your bankruptcy is public record but no notifications will be made.
How do I know if I should file for Bankruptcy?
If you are currently facing the repossession of your car or home, you will be better off considering Chapter 7. This will be a better alternative and you should move now before it is too late.
How do I choose a good Chapter 7 Attorney?
If you are considering Chapter 7, you must find a specialized Chapter 7 attorney that understands the laws and is current on any changes that my impact your situation.
When you call a bankruptcy attorney ask them how many bankruptcies they have handled in your state. Make sure you educate yourself on all your alternatives. You can easily do a quick search on the internet and do some quick research before you hire and commit to an attorney.
Most legitimate bankruptcy attorney’s will be able to give you a fair assessment over the phone. Make sure you share the facts with your situation. Many times people are embarrassed of their situation and they hide the facts. This will only prevent an attorney from helping you fast and getting the process underway.
We cannot stress enough the need to get several assessments of your situation. This is key in not only getting the right advice, but also to make sure you get an attorney that is sincerely in the business of helping you.
Will I ever get credit again?
Bankruptcy will be reported on your credit report for up to 10 years. That said you can start right away in establishing your credit. Lenders typically consider your debt to income ratio as well your credit history.
Filing for Chapter 7 helps you eliminate your debts, but also helps in reducing your debt to income ratio as well. This does help in establishing good credit for you in the future. Creditors are in the business to make money by lending you money. Remember this and you will be able to find a lender that will sell you money in your situation.
There are lenders in the business of helping people in your exact situation. You may not get the best interest rate, but you have to start somewhere.
Remember, you can only file for bankruptcy every six (6) years. Don’t find yourself in the same situation again! If you need financial counseling, don’t be embarrassed. Learn how to manage your incomeArticle Submission, and your debt after your bankruptcy and you will be on your way to a clean financial bill of health.
ABOUT THE AUTHOR
Matt D Murren owns and operates http://www.chapter7-bankruptcy-advisor.com Chapter 7 Bankruptcy
Chapter 7 bankruptcy may help you in eliminated most kinds of unsecured debt. Examples of these debts are credit cards; personal loans, judgments, and medical bills.
Most of the time, you can keep your property. You must be current on your car and mortgage payment. In addition, the courts will assess the amount of equity you have in your current property. If you have significant equity, you may be asked to leverage your equity to pay your debts first. The goal with Chapter 7 is to eliminate your debt while keeping your personal belongings.
There are some key facts that you need to know before you commit to Chapter 7 bankruptcy.
Here are a few answers to common questions for those filing for Chapter 7. Please read further.
Will creditors continue to harass me?
You will want to retain a Chapter 7 Attorney immediately. By working with a specialized attorney, they will immediately give you record number. When the creditors call, you can give them your record number and refer them to your attorney.
Will I lost everything if I file for Chapter 7?
Typically, you will retain all your personal belongings, including your house. A good Chapter 7 lawyer will insure that your personal effects are safe. Most often your car will be safe as well. Your attorney will leverage state bankruptcy exemptions to protect these items.
More often than not you will be more at risk in losing your personal property if you do not file for Chapter 7 to protect them. Make sure you file before you get so far behind that you cannot do anything and get out of the rut you find yourself in.
Will everyone know I have filed for bankruptcy?
The short answer is no. The only parties that will know are the IRS, creditors, and the bankruptcy court. Your employer will not be notified when you file for bankruptcy either unless they are also a creditor of yours. Your bankruptcy is public record but no notifications will be made.
How do I know if I should file for Bankruptcy?
If you are currently facing the repossession of your car or home, you will be better off considering Chapter 7. This will be a better alternative and you should move now before it is too late.
How do I choose a good Chapter 7 Attorney?
If you are considering Chapter 7, you must find a specialized Chapter 7 attorney that understands the laws and is current on any changes that my impact your situation.
When you call a bankruptcy attorney ask them how many bankruptcies they have handled in your state. Make sure you educate yourself on all your alternatives. You can easily do a quick search on the internet and do some quick research before you hire and commit to an attorney.
Most legitimate bankruptcy attorney’s will be able to give you a fair assessment over the phone. Make sure you share the facts with your situation. Many times people are embarrassed of their situation and they hide the facts. This will only prevent an attorney from helping you fast and getting the process underway.
We cannot stress enough the need to get several assessments of your situation. This is key in not only getting the right advice, but also to make sure you get an attorney that is sincerely in the business of helping you.
Will I ever get credit again?
Bankruptcy will be reported on your credit report for up to 10 years. That said you can start right away in establishing your credit. Lenders typically consider your debt to income ratio as well your credit history.
Filing for Chapter 7 helps you eliminate your debts, but also helps in reducing your debt to income ratio as well. This does help in establishing good credit for you in the future. Creditors are in the business to make money by lending you money. Remember this and you will be able to find a lender that will sell you money in your situation.
There are lenders in the business of helping people in your exact situation. You may not get the best interest rate, but you have to start somewhere.
Remember, you can only file for bankruptcy every six (6) years. Don’t find yourself in the same situation again! If you need financial counseling, don’t be embarrassed. Learn how to manage your incomeArticle Submission, and your debt after your bankruptcy and you will be on your way to a clean financial bill of health.
ABOUT THE AUTHOR
Matt D Murren owns and operates http://www.chapter7-bankruptcy-advisor.com Chapter 7 Bankruptcy
What Happens to Property in a Chapter 7 Bankruptcy Case?
Chapter 7 bankruptcy is a fresh start bankruptcy. A person lists all of his debts in a bankruptcy petition which is filed with the U.S. Bankruptcy Clerk. A typical Chapter 7 debtor receives a fresh start in that many of the debts in a Chapter 7 bankruptcy case are eliminated. There are exceptions to this general scenario which I will explain in greater detail later. Chapter 7 is basically for a person who does not have significant assets and who is strapped with an overburdening amount of unsecured debts. Unsecured debts are debts that are not secured by some form of property. These commonly include debts from credit cards, medical bills, personal loans, utilities, auto deficiencies as a result of a repossessed auto and rental deficiencies among others. Since there is no property or security attached to those debts, the debt is easily eliminated in a Chapter 7 bankruptcy case. Debts that are secured by property such as houses and cars are treated differently in a Chapter 7 bankruptcy case. Those debts must continue to be paid if the debtor wishes to keep the properties.
Options with regard to secured property:
The debtor can simply continue to make the contracted payment, on time, just as he did before he filed for bankruptcy relief. This act of continuing to pay on a debt is known as reaffirming a debt. By reaffirming on a debt, the debtor re-obligates himself on the loan. Another option would be to surrender the property and eliminate the underlying debt. The third option would be to redeem the property secured by the creditor. The act of redemption involves making a lump sum payment for the market value of the property. Since a debtor rarely has the ability to make such a payment, the redemption option is really not invoked all that often. The final option with regard to secured debt is to continue to make voluntary payments on the property. This is sometimes known as the fourth option; however, this option only exists in certain states. This option does not exist with regard to purchase money security interests. A typical purchase money security interest would be a furniture purchase, jewelry purchase or household appliance purchase. The voluntary payment option does exist with regard to real estate property in those states that permit the fourth option.
Property that can be kept in a Chapter 7 bankruptcy
If a person has significant assets, he will not likely decide to file a Chapter 7 bankruptcy. This is because there are limits on the amount of value that one can keep free and clear while at the same time being able to eliminate miscellaneous debt. Each state has exemption amounts that can be readily utilized by a debtor to protect property while he is in a bankruptcy. There are Federal exemptions and individual state exemptions. Some states utilize the Federal exemptions, other utilize the state exemptions, while other states can elect between the two. Obviously, if a debtor resides in a state in which an election can be made, the debtor will choose the exemption that best protects his property. The exemption limits differ so it is extremely important to discuss your rights and options with a qualified attorney who concentrates in bankruptcy law. If property is not protected properly by miss-applying the proper exemption and the proper amount of the exemption, property can be taken in exchange for the fresh start.
How is equity determined?
Some people struggle with the concept of equity in property. They don't know whether it is the market value, the amount owed, both or neither. Here is a simple way to calculate the equity in property. First of all, think of equity as ownership. The amount of equity in property is the amount of ownership that you have in the property. For example, let's say that you have a home with a market value of $250,000.00. Let's further say that you have a mortgage on the property with an outstanding balance of $200,000.00. When you take the market value of the property and subtract the mortgage debt associated with the property, you are left with the equity. In the above example, the equity or ownership in the property would equal $50,000.00. This same concept would apply to vehicles, boats, jewelry, furniture and any other property that is secured by a lien.
How is fair market value calculated?
Another issue arises when calculating the fair market value of property. Fair market value of property is not what you think it is worth. Rather, it is what the property would sell for if placed on the market for a reasonable period of time. When it comes to real estate property, market value can be determined by obtaining an appraisal. Since appraisals can be costly, another option is to get a free, market evaluation from a licensed realtor. Any dedicated realtor would be happy to provide a listing of comparable homes that are currently listed in your area or that have recently sold in your area. When requesting your free market analysis, advise the realtor that you are looking for an accurate evaluation. You don't want one that is elevated or unrealistic. You want one that will accurately list the likely price that the home would sell for if place on the open market. You can check general home values at http://www.realtor.com or http://www.housevalues.com. With regard to autos, you can check the value with Kelly Blue Book or N.A.D.A. (www.kbb.com) You can also have the vehicle evaluated by an auto dealership. They will put in writing what you car is worth as a trade-in. Of courseHealth Fitness Articles, don't rely on only one person or entity to provide a market value for your property. Check with a few sources so that you know that the values being provided are accurate.
http://www.articlesfactory.com/articles/law/what-happens-to-property-in-a-chapter-7-bankruptcy-case.html
Options with regard to secured property:
The debtor can simply continue to make the contracted payment, on time, just as he did before he filed for bankruptcy relief. This act of continuing to pay on a debt is known as reaffirming a debt. By reaffirming on a debt, the debtor re-obligates himself on the loan. Another option would be to surrender the property and eliminate the underlying debt. The third option would be to redeem the property secured by the creditor. The act of redemption involves making a lump sum payment for the market value of the property. Since a debtor rarely has the ability to make such a payment, the redemption option is really not invoked all that often. The final option with regard to secured debt is to continue to make voluntary payments on the property. This is sometimes known as the fourth option; however, this option only exists in certain states. This option does not exist with regard to purchase money security interests. A typical purchase money security interest would be a furniture purchase, jewelry purchase or household appliance purchase. The voluntary payment option does exist with regard to real estate property in those states that permit the fourth option.
Property that can be kept in a Chapter 7 bankruptcy
If a person has significant assets, he will not likely decide to file a Chapter 7 bankruptcy. This is because there are limits on the amount of value that one can keep free and clear while at the same time being able to eliminate miscellaneous debt. Each state has exemption amounts that can be readily utilized by a debtor to protect property while he is in a bankruptcy. There are Federal exemptions and individual state exemptions. Some states utilize the Federal exemptions, other utilize the state exemptions, while other states can elect between the two. Obviously, if a debtor resides in a state in which an election can be made, the debtor will choose the exemption that best protects his property. The exemption limits differ so it is extremely important to discuss your rights and options with a qualified attorney who concentrates in bankruptcy law. If property is not protected properly by miss-applying the proper exemption and the proper amount of the exemption, property can be taken in exchange for the fresh start.
How is equity determined?
Some people struggle with the concept of equity in property. They don't know whether it is the market value, the amount owed, both or neither. Here is a simple way to calculate the equity in property. First of all, think of equity as ownership. The amount of equity in property is the amount of ownership that you have in the property. For example, let's say that you have a home with a market value of $250,000.00. Let's further say that you have a mortgage on the property with an outstanding balance of $200,000.00. When you take the market value of the property and subtract the mortgage debt associated with the property, you are left with the equity. In the above example, the equity or ownership in the property would equal $50,000.00. This same concept would apply to vehicles, boats, jewelry, furniture and any other property that is secured by a lien.
How is fair market value calculated?
Another issue arises when calculating the fair market value of property. Fair market value of property is not what you think it is worth. Rather, it is what the property would sell for if placed on the market for a reasonable period of time. When it comes to real estate property, market value can be determined by obtaining an appraisal. Since appraisals can be costly, another option is to get a free, market evaluation from a licensed realtor. Any dedicated realtor would be happy to provide a listing of comparable homes that are currently listed in your area or that have recently sold in your area. When requesting your free market analysis, advise the realtor that you are looking for an accurate evaluation. You don't want one that is elevated or unrealistic. You want one that will accurately list the likely price that the home would sell for if place on the open market. You can check general home values at http://www.realtor.com or http://www.housevalues.com. With regard to autos, you can check the value with Kelly Blue Book or N.A.D.A. (www.kbb.com) You can also have the vehicle evaluated by an auto dealership. They will put in writing what you car is worth as a trade-in. Of courseHealth Fitness Articles, don't rely on only one person or entity to provide a market value for your property. Check with a few sources so that you know that the values being provided are accurate.
http://www.articlesfactory.com/articles/law/what-happens-to-property-in-a-chapter-7-bankruptcy-case.html
Greatest Bankruptcy Weapon: The Automatic Stay
Illustrates the power of the automatic stay in bankruptcy proceedings.
The Debtor's Greatest Weapon, The Automatic Stay
Immediately when your bankruptcy case is filed, an automatic stay is created. An automatic stay is the equivalent of a restraining order that prevents creditors from taking certain collection actions against you. These collection actions include: Telephoning you at home, at work or on your cell phone; Filing lawsuits against you or continuing with lawsuits that are already in progress; Repossession attempts; Foreclosure proceedings; Wage or bank garnishments; Recording any liens or judgments; Anything that attempts to collect a debt or improve a creditor's position as it relates to you and your underlying debt.
The Automatic Stay Is Not Absolute
There are exceptions to the automatic stay, especially in the case of re-filings. Creditor actions are not stayed in the following circumstances: Criminal actions. Filing a bankruptcy case will not prevent Federal, State or local authorities from pursuing their criminal action against you. Lawsuits involving child support or spousal support are not stayed and can be pursued despite your bankruptcy filing. Actions by governmental units to enforce a police power are not stayed.
Recent Changes
There are many changes that have occurred in the area of automatic stays since bankruptcy reform generally went into effect October 17, 2005. The major changes have to do with repetitive bankruptcy filings. If you file a second bankruptcy case within one year of a prior filing, the automatic stay will only go into effect for thirty days, unless you can prove to the court that the second filing was filed in good faith. You must file a motion and have it heard before the Judge, prior to the expiration of the thirty day period. The motion can be brought against one particular creditor, or more likely, against all creditors. After notice and a hearing, the court will rule one way or another. You have the burden of proving that the second case was filed in good faith. This can be accomplished by showing a positive change in your circumstances such as higher, more stable income. Another example would be if you recovered from a serious medical condition which had previously prevented you from gainful employment. If you file a third bankruptcy case within one year of two prior filings, the automatic stay will not go into effect at all. You can attempt to invoke the automatic stay by bringing a motion, similar to the one mentioned above, showing that the third filing was made in good faith. Although not impossible, it would require a very compelling reason to convince the court to allow the stay to be imposed on a third filing within one year. In eviction cases, if the landlord has already obtained a judgment for possession prior to the bankruptcy case filingComputer Technology Articles, then there is no automatic stay. You should file your bankruptcy case prior to the landlord obtaining a judgment so that the stay can go into effect. There is also no stay if the eviction is based upon endangerment of the rental property or an illegal use of controlled substances is occurring on the premises and the eviction started prior to the bankruptcy case being filed.
http://www.articlesfactory.com/articles/law/greatest-bankruptcy-weapon-the-automatic-stay.html
The Debtor's Greatest Weapon, The Automatic Stay
Immediately when your bankruptcy case is filed, an automatic stay is created. An automatic stay is the equivalent of a restraining order that prevents creditors from taking certain collection actions against you. These collection actions include: Telephoning you at home, at work or on your cell phone; Filing lawsuits against you or continuing with lawsuits that are already in progress; Repossession attempts; Foreclosure proceedings; Wage or bank garnishments; Recording any liens or judgments; Anything that attempts to collect a debt or improve a creditor's position as it relates to you and your underlying debt.
The Automatic Stay Is Not Absolute
There are exceptions to the automatic stay, especially in the case of re-filings. Creditor actions are not stayed in the following circumstances: Criminal actions. Filing a bankruptcy case will not prevent Federal, State or local authorities from pursuing their criminal action against you. Lawsuits involving child support or spousal support are not stayed and can be pursued despite your bankruptcy filing. Actions by governmental units to enforce a police power are not stayed.
Recent Changes
There are many changes that have occurred in the area of automatic stays since bankruptcy reform generally went into effect October 17, 2005. The major changes have to do with repetitive bankruptcy filings. If you file a second bankruptcy case within one year of a prior filing, the automatic stay will only go into effect for thirty days, unless you can prove to the court that the second filing was filed in good faith. You must file a motion and have it heard before the Judge, prior to the expiration of the thirty day period. The motion can be brought against one particular creditor, or more likely, against all creditors. After notice and a hearing, the court will rule one way or another. You have the burden of proving that the second case was filed in good faith. This can be accomplished by showing a positive change in your circumstances such as higher, more stable income. Another example would be if you recovered from a serious medical condition which had previously prevented you from gainful employment. If you file a third bankruptcy case within one year of two prior filings, the automatic stay will not go into effect at all. You can attempt to invoke the automatic stay by bringing a motion, similar to the one mentioned above, showing that the third filing was made in good faith. Although not impossible, it would require a very compelling reason to convince the court to allow the stay to be imposed on a third filing within one year. In eviction cases, if the landlord has already obtained a judgment for possession prior to the bankruptcy case filingComputer Technology Articles, then there is no automatic stay. You should file your bankruptcy case prior to the landlord obtaining a judgment so that the stay can go into effect. There is also no stay if the eviction is based upon endangerment of the rental property or an illegal use of controlled substances is occurring on the premises and the eviction started prior to the bankruptcy case being filed.
http://www.articlesfactory.com/articles/law/greatest-bankruptcy-weapon-the-automatic-stay.html
Get Your Credit File Back In Order After Bankruptcy!
Credit score can be severely affected by your bankruptcy. Find out what you can do, in a few simple steps, to improve your credit file...
Having a good credit score is vital to your financial future. These are the words of my local bank manager, when rejecting my credit card application, just a week after coming out of bankruptcy.
Well, it was hardly any consolation that he approved a debit card linked to my check account, I had with them for as long as my online business was active, even during me filling for the Chapter 11. His warning still rings in my ears today. So, the question arises: how to protect your credit score from bad entries that can harm your good standing with financial institutions?
Firstly, prevention is better than cure. Try to anything, in order to avoid bankruptcy. If you can get your debtors to agree on a partial repayment, go for it, and honor your obligations. Many lenders, whom you owe money, will agree to either reduce, or defray repayments of the loan, if you show that you’re genuinely interested in staving off the bankruptcy proceedings, that would result in heavy losses to them, anyway.
It’s a well known saying in the banking industry: “Always keep the communication lines open.” This will show that you’ve enough of the good will, determination and maturity, to pay back your commitments.
But, what do you do, if you had to declare personal bankruptcy, and your credit rating is seriously damaged? The answer is, you have to work to rebuild your standing, and put a few of good things on your credit file. How do you do it, if nobody wants to lend you money? Yes, it’s true; immediately after you’re released from bankruptcy, no serious loan provider will accept your loan application. This is even worse, if you remain an undischarged bankrupt. But, you can initiate small steps that will demonstrate to your prospective lenders your willingness to repair your bad credit history.
Here are some tips that should deliver a meaningful improvement in your financial position:
- Ask for a free credit report, and get to know your bad and good records.
-Start saving regularly, by depositing small amounts of money on your bank account, thus demonstrating to them, your sound financial management practices.
-Repay any outstanding loans, leases and hire agreements that you have.
-Pay all bills on time, without being prompted by default notices.
-Apply for a small loan outside of the mainstream lenders. This could be a payday loan, or a store credit.
-Try applying to your bank, for a prepaid credit card.
- Put some money in a term deposit, and keep them there as a security, for any future commitments.
If you implement more than a few of these steps, your post-bankruptcy finances will be given a chance to recover. There’s simply no other way, for anyone functioning in the contemporary American society, to do it effectively without a good credit score. Consequently, the sooner you put some serious effort into ameliorating your earlier bankruptcy-related problems, the sooner you’ll enjoy a full access to the invaluable source of money: a low interest rate credit. And when your bankruptcy fades into a distant past, you’ll be sufficiently prepared to take care of your financial affairsFree Web Content, by the way of regular savings and controlling expenses wisely.
ABOUT THE AUTHOR
After his recent bankruptcy, with his credit score badly damaged, Sam Ness has embarked on a road to better finances. Credit Issues and Americans.
Having a good credit score is vital to your financial future. These are the words of my local bank manager, when rejecting my credit card application, just a week after coming out of bankruptcy.
Well, it was hardly any consolation that he approved a debit card linked to my check account, I had with them for as long as my online business was active, even during me filling for the Chapter 11. His warning still rings in my ears today. So, the question arises: how to protect your credit score from bad entries that can harm your good standing with financial institutions?
Firstly, prevention is better than cure. Try to anything, in order to avoid bankruptcy. If you can get your debtors to agree on a partial repayment, go for it, and honor your obligations. Many lenders, whom you owe money, will agree to either reduce, or defray repayments of the loan, if you show that you’re genuinely interested in staving off the bankruptcy proceedings, that would result in heavy losses to them, anyway.
It’s a well known saying in the banking industry: “Always keep the communication lines open.” This will show that you’ve enough of the good will, determination and maturity, to pay back your commitments.
But, what do you do, if you had to declare personal bankruptcy, and your credit rating is seriously damaged? The answer is, you have to work to rebuild your standing, and put a few of good things on your credit file. How do you do it, if nobody wants to lend you money? Yes, it’s true; immediately after you’re released from bankruptcy, no serious loan provider will accept your loan application. This is even worse, if you remain an undischarged bankrupt. But, you can initiate small steps that will demonstrate to your prospective lenders your willingness to repair your bad credit history.
Here are some tips that should deliver a meaningful improvement in your financial position:
- Ask for a free credit report, and get to know your bad and good records.
-Start saving regularly, by depositing small amounts of money on your bank account, thus demonstrating to them, your sound financial management practices.
-Repay any outstanding loans, leases and hire agreements that you have.
-Pay all bills on time, without being prompted by default notices.
-Apply for a small loan outside of the mainstream lenders. This could be a payday loan, or a store credit.
-Try applying to your bank, for a prepaid credit card.
- Put some money in a term deposit, and keep them there as a security, for any future commitments.
If you implement more than a few of these steps, your post-bankruptcy finances will be given a chance to recover. There’s simply no other way, for anyone functioning in the contemporary American society, to do it effectively without a good credit score. Consequently, the sooner you put some serious effort into ameliorating your earlier bankruptcy-related problems, the sooner you’ll enjoy a full access to the invaluable source of money: a low interest rate credit. And when your bankruptcy fades into a distant past, you’ll be sufficiently prepared to take care of your financial affairsFree Web Content, by the way of regular savings and controlling expenses wisely.
ABOUT THE AUTHOR
After his recent bankruptcy, with his credit score badly damaged, Sam Ness has embarked on a road to better finances. Credit Issues and Americans.
Credit Card Bankruptcy
Information on Credit Card Bankruptcy that may be of interest to you, tips, ideas, recommendations for your knowledge...
This bankruptcy claim can be disputed by the name card issuing agency if they feel that you have obtained the credit card by fraudulent means. If the name card company feels that you are Using the card in an outlaw fashion they can refuse to discharge your debt.
When the credit card company challenges this debt it becomes a non-discharge ability action. In the non-discharge ability activity the credit card issuer will declare that you have obtained your credit card by submitting a fraudulent credit card application. They can also hold that you have received a credit card without any intent to pay any off the debts that you are incurring.
There are many reasons why credit card bankruptcy claims will be challenged. These reasons will include an increased use of your credit card before you register for bankruptcyFree Reprint Articles, or if you have just been issued a new credit card after the credit card company approved your application for the card.
Or perhaps large advancements of cash were made just before you filed for credit card bankruptcy. As these reasons can indicate to your creditors that you are not intending to pay off your debts they will be able to prove to the courts that you are planning on defrauding them.
So if you are intending to file for credit card bankruptcy it is best if you don’t use your credit cards for at least Six months before you file for credit card bankruptcy. The less use that can be found with your credit cards will validate your claims that you are in fiscal difficulties.
Before you do file for credit card bankruptcy it is best if you talk the situation over with your lawyer. You can inform your attorney about your integral financial problems and see the assorted courses that you have open.
You must realise that once you have filed for credit card bankruptcy your public record will state that you have undergone bankruptcy for bad credit. This substance that you will need to uprise to various businesses that you are conformable to pay the higher credit rates that you can be charged.
While this course of activity may seem difficult to reflect sometimes it is the only way that you can find a Breathing space to reorganize your financial affairs. Once you have proven that you are in financial difficulties your credit card bankruptcy filing will let you negotiate with your lawyer and creditors the best way to pay their loans back.
I’am glad you have found this article I hope you found the data useful.
ABOUT THE AUTHOR
Michael Malega presents several credit card bankruptcy articles for your information. You can visit Michael's web site here Credit Card Bankruptcy
This bankruptcy claim can be disputed by the name card issuing agency if they feel that you have obtained the credit card by fraudulent means. If the name card company feels that you are Using the card in an outlaw fashion they can refuse to discharge your debt.
When the credit card company challenges this debt it becomes a non-discharge ability action. In the non-discharge ability activity the credit card issuer will declare that you have obtained your credit card by submitting a fraudulent credit card application. They can also hold that you have received a credit card without any intent to pay any off the debts that you are incurring.
There are many reasons why credit card bankruptcy claims will be challenged. These reasons will include an increased use of your credit card before you register for bankruptcyFree Reprint Articles, or if you have just been issued a new credit card after the credit card company approved your application for the card.
Or perhaps large advancements of cash were made just before you filed for credit card bankruptcy. As these reasons can indicate to your creditors that you are not intending to pay off your debts they will be able to prove to the courts that you are planning on defrauding them.
So if you are intending to file for credit card bankruptcy it is best if you don’t use your credit cards for at least Six months before you file for credit card bankruptcy. The less use that can be found with your credit cards will validate your claims that you are in fiscal difficulties.
Before you do file for credit card bankruptcy it is best if you talk the situation over with your lawyer. You can inform your attorney about your integral financial problems and see the assorted courses that you have open.
You must realise that once you have filed for credit card bankruptcy your public record will state that you have undergone bankruptcy for bad credit. This substance that you will need to uprise to various businesses that you are conformable to pay the higher credit rates that you can be charged.
While this course of activity may seem difficult to reflect sometimes it is the only way that you can find a Breathing space to reorganize your financial affairs. Once you have proven that you are in financial difficulties your credit card bankruptcy filing will let you negotiate with your lawyer and creditors the best way to pay their loans back.
I’am glad you have found this article I hope you found the data useful.
ABOUT THE AUTHOR
Michael Malega presents several credit card bankruptcy articles for your information. You can visit Michael's web site here Credit Card Bankruptcy
New Bankruptcy Laws
This article provides useful, detailed information about New Bankruptcy Laws.
The U.S. Government recently approved a bill that brought about some major changes in the bankruptcy laws on April 20, 2005. The bill is called the \"The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005\". As per this bill, about 25 changes have been made in the existing bankruptcy laws. However, since it takes at least 6 months from the time the bill is passed for it to be put into action, only some parts of the law have become effective. Hence, all the rest of the new laws are yet to be put into effect.
It\'s a common expert opinion that these new laws will definitely narrow the possibilities of filing a bankruptcy using Chapter 7. The court will decide on whether the debtor can file under chapter 7 or has the only option of filing under Chapter 13. In this case the debtor will have to compulsorily opt for Chapter 13 law, which has also undergone some changes such that the debtor has to pay the debt from the monthly wages within 5 years, from the time the bankruptcy case is filed.
The rule dictates that debtors wishing to file for bankruptcy will need to get a compulsory expert opinion only from an approved attorney or the agency, at least six months from the date of filing. Within 18 months of filing such a case, all such debtors must enroll in some financial-education course classes without fail. The attorney needs to provide documentation proof for such credit counseling provided.
The new law makes the options narrower for the debtor since certain kinds of debts will not be considered for filing bankruptcy. This will make it really hard for people who are in over their heads and still cannot file for bankruptcy. Even though this might not affect the firms and companies who wish to file for bankruptcyBusiness Management Articles, this might have a good deal of impact on individual debtors who wish to do so.
http://www.articlesfactory.com/articles/finance/new-bankruptcy-laws.html
The U.S. Government recently approved a bill that brought about some major changes in the bankruptcy laws on April 20, 2005. The bill is called the \"The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005\". As per this bill, about 25 changes have been made in the existing bankruptcy laws. However, since it takes at least 6 months from the time the bill is passed for it to be put into action, only some parts of the law have become effective. Hence, all the rest of the new laws are yet to be put into effect.
It\'s a common expert opinion that these new laws will definitely narrow the possibilities of filing a bankruptcy using Chapter 7. The court will decide on whether the debtor can file under chapter 7 or has the only option of filing under Chapter 13. In this case the debtor will have to compulsorily opt for Chapter 13 law, which has also undergone some changes such that the debtor has to pay the debt from the monthly wages within 5 years, from the time the bankruptcy case is filed.
The rule dictates that debtors wishing to file for bankruptcy will need to get a compulsory expert opinion only from an approved attorney or the agency, at least six months from the date of filing. Within 18 months of filing such a case, all such debtors must enroll in some financial-education course classes without fail. The attorney needs to provide documentation proof for such credit counseling provided.
The new law makes the options narrower for the debtor since certain kinds of debts will not be considered for filing bankruptcy. This will make it really hard for people who are in over their heads and still cannot file for bankruptcy. Even though this might not affect the firms and companies who wish to file for bankruptcyBusiness Management Articles, this might have a good deal of impact on individual debtors who wish to do so.
http://www.articlesfactory.com/articles/finance/new-bankruptcy-laws.html
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