Filing for bankruptcy can be a long and tedious procedure, with mountains of paperwork to overcome and a lot of hassles to face. Once you've decided that bankruptcy is your only option to financial freedom, what can you expect?
Credit Counseling:
Under the Bankruptcy Abuse Prevention and Consumer Protection Act ("BAPCPA") of 2005, every person filing bankruptcy in the United States must first undergo extensive credit counseling with a court-approved counseling service.
A Big Decision:
You may have thought that deciding to file for bankruptcy was the biggest decision you'd have to make. Wrong! Next, you must decide which type of bankruptcy to file: Chapter 7 (which is a straight or liquidation bankruptcy that clears you of all your debt), or Chapter 13 (which is a repayment plan). Those wishing to file Chapter 7, must prove to the courts that they make under the average income in their state and can not repay their debt, regardless of any repayment plans devised by the courts.
Hiring a Lawyer:
It may seem stupid to pay high legal fees at a time when you're trying to get rid of your debt, not take on even more, but most financial experts agree that a good bankruptcy lawyer can save you even more in time and money. They know the laws in your state better than anyone and may be able to advise you to things you would have never known about otherwise. Besides, once you retain a lawyer, all creditors must go through his office. They are no longer permitted by law to contact you regarding unpaid debt.
A Meeting with Your Creditors:
Once your lawyer submits your bankruptcy petition to the courts, you will be notified of your date for a meeting of creditors (or a "341 meeting," named after the section of the Bankruptcy Code requiring it). This meeting is a way for you to prove to your creditors that you have answered honestly to all of their inquiries and that you completely understand the entire bankruptcy procedure and how it may affect you in the future. Your lawyer will ask you to list all of your assets for your creditors to review.
The Inability to Use Your Credit Cards:
If you are thinking about filing a bankruptcy case, stop using your credits cards immediately! If you continue to charge items even though you intend to file for bankruptcy, a creditor can challenge the discharge of the debt owed or even your right to discharge any debt.
Liquidating Assets:
In a chapter 7 case, the trustee will determine whether or not there are assets that can be liquidated and used to repay your creditors. If you're filing Chapter 13 bankruptcy you may be allowed to retain ownership of your assets, as long as you can devise a 3 to 5 year repayment plan to repay your debt.
Waiting For Your Creditors to Respond:
Your creditors have 60 days after your meeting to challenge the discharge of a particular debt or your entire discharge. If no such lawsuits are filed, shortly after that 60th day you will receive notification of a discharge of debt if you filed chapter 7. If you filed chapter 13 bankruptcy, discharge notice will be given about two months after you make your final payment.
Remember, not all debt is excused under either form of bankruptcy including student loans and certain taxes, so you may not be completely relieved of the obligation to repay all debt. So be certain that filing bankruptcy truly is the right decision.
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Thursday, November 1, 2007
Free Bankruptcy Forms - A Relief For The Debtors
There are several misconceptions among people regarding the free bankruptcy forms. This article will try to explore some myths and realities in this regard.
The Free Bankruptcy Forms Are Not Accepted By All Courts
The forms that you need to fill out while filing court petition for bankruptcy are large in numbers and it costs you a lot of money in purchasing the same. On the other hand, using the free bankruptcy forms can save you that money. However, the reason why still many people prefer to purchase the form is that they have the misconception that the free forms are not accepted in all the courts, which is not true. Many people do not use these free forms in fear of rejection from the bankruptcy court. However, the truth is that all the courts in United States of America accept the free forms, just like they accept the purchased forms.
Free Forms Are More Complicated To Fill Out
Many people also have the misconception that the free bankruptcy forms are much different from the usual forms that you need to purchase, which is also not true. They think that using the free forms requires you to deal with lots of formalities, which will in turn make things much more complicated. The truth is that the free forms are exactly same as are the other forms on paper that you purchase. There are no added formalities that you need to fulfill. There are no additional complications. In fact, things are much easier with using the free forms, as you just have to download these forms from Internet, get that printed on paper, fill it, and submit the same.
Free Bankruptcy Forms Do Not Cover All Areas
Another major misconception regarding the free bankruptcy forms is that the free forms do not cover all areas. It means the free forms are not available for all types of bankruptcy cases. They are limited in number and types. This is also not true. No matter whether you are filing for chapter 7 bankruptcy, chapter 13 or any other type of bankruptcy, the free forms are available for all types of cases.
Overall, we can see that with the rapid growth and innovation in the field of Internet, things have become much easier now. The online free bankruptcy forms are a gift of Internet. You can get the forms right in your computer system on just a click. You just have to click the corresponding download button on the website and you will get the forms free. This way, by using these forms, you do not only save a great deal of money, but you also take much pain out of the proceedings of filing bankruptcy.
When it comes to filing bankruptcy in a bankruptcy court, one of the most important aspects that you need to look into is the overall filing cost. The filing fee has risen substantially in the last few years. Therefore, if you want to save some money, do not forget to take benefit of the free bankruptcy forms. To get more about bankruptcy related issues log on to Bankruptcy.
Article Source: http://EzineArticles.com/?expert=Asheesh_Mani
The Free Bankruptcy Forms Are Not Accepted By All Courts
The forms that you need to fill out while filing court petition for bankruptcy are large in numbers and it costs you a lot of money in purchasing the same. On the other hand, using the free bankruptcy forms can save you that money. However, the reason why still many people prefer to purchase the form is that they have the misconception that the free forms are not accepted in all the courts, which is not true. Many people do not use these free forms in fear of rejection from the bankruptcy court. However, the truth is that all the courts in United States of America accept the free forms, just like they accept the purchased forms.
Free Forms Are More Complicated To Fill Out
Many people also have the misconception that the free bankruptcy forms are much different from the usual forms that you need to purchase, which is also not true. They think that using the free forms requires you to deal with lots of formalities, which will in turn make things much more complicated. The truth is that the free forms are exactly same as are the other forms on paper that you purchase. There are no added formalities that you need to fulfill. There are no additional complications. In fact, things are much easier with using the free forms, as you just have to download these forms from Internet, get that printed on paper, fill it, and submit the same.
Free Bankruptcy Forms Do Not Cover All Areas
Another major misconception regarding the free bankruptcy forms is that the free forms do not cover all areas. It means the free forms are not available for all types of bankruptcy cases. They are limited in number and types. This is also not true. No matter whether you are filing for chapter 7 bankruptcy, chapter 13 or any other type of bankruptcy, the free forms are available for all types of cases.
Overall, we can see that with the rapid growth and innovation in the field of Internet, things have become much easier now. The online free bankruptcy forms are a gift of Internet. You can get the forms right in your computer system on just a click. You just have to click the corresponding download button on the website and you will get the forms free. This way, by using these forms, you do not only save a great deal of money, but you also take much pain out of the proceedings of filing bankruptcy.
When it comes to filing bankruptcy in a bankruptcy court, one of the most important aspects that you need to look into is the overall filing cost. The filing fee has risen substantially in the last few years. Therefore, if you want to save some money, do not forget to take benefit of the free bankruptcy forms. To get more about bankruptcy related issues log on to Bankruptcy.
Article Source: http://EzineArticles.com/?expert=Asheesh_Mani
Personal Bankruptcy - Are You Headed Toward Too Much Debt?
Not everyone who files for bankruptcy is a deadbeat. Sometimes simple bad luck or poor choices is the overriding factor in piling on more debt than you can handle. A lost job; a severe illness; and yes, overspending can all lead you on the long road of too much debt that can ultimately leave you struggling to survive and a need to file bankruptcy in order to make a fresh start.
Think you may be headed toward bankruptcy? Look for these warning signs to get control over your finances before it's too late:
Warning Sign #1: Too Much Credit Card Debt.
Credit cards debt is the biggest financial disease striking American households today. With the average credit card debt now toppling $10,000 or more, it's no wonder that today's consumer is feeling the pinch. No one should ever charge more than 40% of their current credit limit on any charge card, and if you're only able to make the minimum payment on your current income, it's time to put those credit cards away!
Warning Sign #2: Overusing Home Equity Lines of Credit.
It can be awfully tempting to use your home equity line of credit to finance that new furniture or a better car. Avoid the temptation. Remember, your house is at stake! Any type of credit that uses your home as collateral is dangerous. Use it only in severe emergencies or to cover unexpected maintenance costs and the occasional remodeling project. Something many people forget: those payments are linked to the current interest rate. If rates go up, so do your payments! Be sure that you can handle any increases that may come your way.
Warning Sign #3: Living Paycheck to Paycheck.
While it may not be possible to stop living form paycheck to paycheck, keep in mind that any bump in your financial road could send you crashing. The average American household has less than $1,000 in savings, leaving them open to financial ruin in the event of a sudden layoff, illness, or other major catastrophe. Do your best to live under your means in order to save for those unexpected emergencies that can devastate your finances.
Warning Sign #4: Foreclosures & Repossessions.
Let's face it, if the bank is ready to foreclose on your house, and the repo man is about to which your car away, you're already in serious financial trouble, and bankruptcy may be just around the corner. Now's the time to get some help from a credit service to gain better control of your financial life and avoid more serious consequences.
Warning Sign #5: Co-Signing on a Loan.
It's sad but true; bankruptcy often follows good intent. Be extremely careful when trying to help out someone else by co-signing on any type of loan. Be sure that you can handle those payments if your friend or relative fails to pay. It isn't uncommon for co-signers for other's mortgages and car loans to lose their own home when they are unable to repay a defaulted loan. Bankruptcy is nasty business. Be sure if it happens it's because of your own mistakes and not someone else's.
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Article Source: http://EzineArticles.com/?expert=Matt_Hick
Think you may be headed toward bankruptcy? Look for these warning signs to get control over your finances before it's too late:
Warning Sign #1: Too Much Credit Card Debt.
Credit cards debt is the biggest financial disease striking American households today. With the average credit card debt now toppling $10,000 or more, it's no wonder that today's consumer is feeling the pinch. No one should ever charge more than 40% of their current credit limit on any charge card, and if you're only able to make the minimum payment on your current income, it's time to put those credit cards away!
Warning Sign #2: Overusing Home Equity Lines of Credit.
It can be awfully tempting to use your home equity line of credit to finance that new furniture or a better car. Avoid the temptation. Remember, your house is at stake! Any type of credit that uses your home as collateral is dangerous. Use it only in severe emergencies or to cover unexpected maintenance costs and the occasional remodeling project. Something many people forget: those payments are linked to the current interest rate. If rates go up, so do your payments! Be sure that you can handle any increases that may come your way.
Warning Sign #3: Living Paycheck to Paycheck.
While it may not be possible to stop living form paycheck to paycheck, keep in mind that any bump in your financial road could send you crashing. The average American household has less than $1,000 in savings, leaving them open to financial ruin in the event of a sudden layoff, illness, or other major catastrophe. Do your best to live under your means in order to save for those unexpected emergencies that can devastate your finances.
Warning Sign #4: Foreclosures & Repossessions.
Let's face it, if the bank is ready to foreclose on your house, and the repo man is about to which your car away, you're already in serious financial trouble, and bankruptcy may be just around the corner. Now's the time to get some help from a credit service to gain better control of your financial life and avoid more serious consequences.
Warning Sign #5: Co-Signing on a Loan.
It's sad but true; bankruptcy often follows good intent. Be extremely careful when trying to help out someone else by co-signing on any type of loan. Be sure that you can handle those payments if your friend or relative fails to pay. It isn't uncommon for co-signers for other's mortgages and car loans to lose their own home when they are unable to repay a defaulted loan. Bankruptcy is nasty business. Be sure if it happens it's because of your own mistakes and not someone else's.
Sick and Tired of Not Profiting From Your Websites? Start Your Own Money Making Websites Network TODAY with eWebCreator.com. Get Our FREE Website Secrets e-Course Here.
Article Source: http://EzineArticles.com/?expert=Matt_Hick
How to Asses the Filing Bankruptcy Cost
Assessing the filing bankruptcy cost is an important step if you are on the way to file a court petition for bankruptcy. Since you are filing for bankruptcy, it is a clear indication that you are in a deep financial trouble and the debts that you owe to various creditors are much more than what you can pay using the current sources of all your income.
Therefore, it is understandable that you would not be in a position to pay a substantial amount to defend your claim in the bankruptcy court. You will be happy to know that now there are many options available to you, using which you can file for bankruptcy without spending a fortune. All you need to do is just to keep in mind the following factors.
Filing Fee
The filing fee for bankruptcy has increased substantially in the last few years. You can imagine the substantial rise in the fee with the very fact in the last four years; the filing bankruptcy cost has risen to four times. Some four years ago, you would need to pay only few dollars in order to file for bankruptcy, but now, you need to pay somewhere between two hundred dollars to one thousand of dollars, depending upon your specific case and the type of bankruptcy you are filing for.
Also, do not forget, that in order to file for bankruptcy, first you need to purchase many forms, which contribute a major portion of the overall filing fee.
How To Save Money on Filing Bankruptcy
You can use the online forms processing services to reduce the filing bankruptcy cost. These services are available for anybody, no matter which part of the United State of America you live in. The great thing about the online bankruptcy forms processing services is that they offer you all types of forms free of cost, irrespective of which type of bankruptcy you are filing your court petition for. You can simply download these forms, fill out, and submit the same to the court.
What is more, if you want to save more, you may also ask the online processing agency to check out if you have filled the forms in a correct way and every thing is in line with the corresponding bankruptcy laws. The online agency will do the review for you at a very economical rate, which is much less than what you need to pay to the bankruptcy attorney for the same job. This way, you can also cut off the substantial amount in the attorney fee. However, you should note that it only reduces your filing bankruptcy cost; it does not cut off the role and importance of a good attorney.
The filing bankruptcy cost can be a substantial amount. Therefore, it is very important for you to assess the same beforehand and make a specific budget for you. While you file court petition for bankruptcy in a bankruptcy court, you should also pay much attention towards the fee that the bankruptcy attorney may charge. To get more information visit Bankruptcy.
Article Source: http://EzineArticles.com/?expert=Apurva_Shree
Therefore, it is understandable that you would not be in a position to pay a substantial amount to defend your claim in the bankruptcy court. You will be happy to know that now there are many options available to you, using which you can file for bankruptcy without spending a fortune. All you need to do is just to keep in mind the following factors.
Filing Fee
The filing fee for bankruptcy has increased substantially in the last few years. You can imagine the substantial rise in the fee with the very fact in the last four years; the filing bankruptcy cost has risen to four times. Some four years ago, you would need to pay only few dollars in order to file for bankruptcy, but now, you need to pay somewhere between two hundred dollars to one thousand of dollars, depending upon your specific case and the type of bankruptcy you are filing for.
Also, do not forget, that in order to file for bankruptcy, first you need to purchase many forms, which contribute a major portion of the overall filing fee.
How To Save Money on Filing Bankruptcy
You can use the online forms processing services to reduce the filing bankruptcy cost. These services are available for anybody, no matter which part of the United State of America you live in. The great thing about the online bankruptcy forms processing services is that they offer you all types of forms free of cost, irrespective of which type of bankruptcy you are filing your court petition for. You can simply download these forms, fill out, and submit the same to the court.
What is more, if you want to save more, you may also ask the online processing agency to check out if you have filled the forms in a correct way and every thing is in line with the corresponding bankruptcy laws. The online agency will do the review for you at a very economical rate, which is much less than what you need to pay to the bankruptcy attorney for the same job. This way, you can also cut off the substantial amount in the attorney fee. However, you should note that it only reduces your filing bankruptcy cost; it does not cut off the role and importance of a good attorney.
The filing bankruptcy cost can be a substantial amount. Therefore, it is very important for you to assess the same beforehand and make a specific budget for you. While you file court petition for bankruptcy in a bankruptcy court, you should also pay much attention towards the fee that the bankruptcy attorney may charge. To get more information visit Bankruptcy.
Article Source: http://EzineArticles.com/?expert=Apurva_Shree
Bankruptcy Law - What You Need To Know
Until just a few years ago, filing for bankruptcy was fairly easy. Not anymore. When Congress changed the nation's bankruptcy laws in 2005, many debtors found the new "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005," to be more hindrance than help in overcoming past mistakes and starting anew.
The new law is stricter, featuring more requirements than ever before. It is important for anyone considering filing bankruptcy to understand the following:
Credit Counseling:
It doesn't matter whether you file for Chapter 7 bankruptcy that discharges your debt or Chapter 13 bankruptcy which enters you into a repayment plan with creditors, anyone filing bankruptcy is required by law to attend credit counseling by a court-approved counseling service.
Chapter 7 Filings:
Under the new law, it is no longer your right to be allowed to file Chapter 7 bankruptcy. If, after proving your income the court determines that you make more than the medium income within your state, you may be required to file Chapter 13 bankruptcy instead and enter into a repayment schedule to pay back all (or most) of your creditors.
Chapter 13:
It is not uncommon to find your repayment schedule a bit more than you can financially handle under a Chapter 13 filing. The amounts you must repay each month are calculated according to specialized guidelines that take into account your income in the last year (not what you make now), and your assets.
Residency:
While everyone must obey federal bankruptcy laws, some states offer their own, more lenient exemptions. The new federal law, however, requires residents to live in a specific state for a specified amount of time (usually at least two years) in order to qualify for any state-exemptions.
Allowable Expenses:
In the past, those filing bankruptcy could virtually erase their debt and start new in seven years, while continuing to live the lifestyle they'd grown accustomed to. That's no longer the case.
Under new federal bankruptcy laws, the IRS determines your monthly budget, and what you should be able to repay. Most are forbidden from having cell phone expenses as well as cable TV, high-speed Internet access, movies, meals out with the family, and anything else beyond the minimum allowable expenses as determined by the IRS and the courts.
Bankruptcy isn't what it used to be, thanks to millions of Americans who abused the system in the past. Once reserved for people in dire financial situations to help them free themselves from excess debt and start fresh, today's bankruptcy laws are designed t punish those who have been financially irresponsible and force them to pay back most or all of the debt they've accumulated. While filing for bankruptcy may have once seemed like a good way out of a bad situation, many consumers are now opting to try and fix their financial woes themselves in lieu of letting the government fix it for them.
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Article Source: http://EzineArticles.com/?expert=Matt_Hick
The new law is stricter, featuring more requirements than ever before. It is important for anyone considering filing bankruptcy to understand the following:
Credit Counseling:
It doesn't matter whether you file for Chapter 7 bankruptcy that discharges your debt or Chapter 13 bankruptcy which enters you into a repayment plan with creditors, anyone filing bankruptcy is required by law to attend credit counseling by a court-approved counseling service.
Chapter 7 Filings:
Under the new law, it is no longer your right to be allowed to file Chapter 7 bankruptcy. If, after proving your income the court determines that you make more than the medium income within your state, you may be required to file Chapter 13 bankruptcy instead and enter into a repayment schedule to pay back all (or most) of your creditors.
Chapter 13:
It is not uncommon to find your repayment schedule a bit more than you can financially handle under a Chapter 13 filing. The amounts you must repay each month are calculated according to specialized guidelines that take into account your income in the last year (not what you make now), and your assets.
Residency:
While everyone must obey federal bankruptcy laws, some states offer their own, more lenient exemptions. The new federal law, however, requires residents to live in a specific state for a specified amount of time (usually at least two years) in order to qualify for any state-exemptions.
Allowable Expenses:
In the past, those filing bankruptcy could virtually erase their debt and start new in seven years, while continuing to live the lifestyle they'd grown accustomed to. That's no longer the case.
Under new federal bankruptcy laws, the IRS determines your monthly budget, and what you should be able to repay. Most are forbidden from having cell phone expenses as well as cable TV, high-speed Internet access, movies, meals out with the family, and anything else beyond the minimum allowable expenses as determined by the IRS and the courts.
Bankruptcy isn't what it used to be, thanks to millions of Americans who abused the system in the past. Once reserved for people in dire financial situations to help them free themselves from excess debt and start fresh, today's bankruptcy laws are designed t punish those who have been financially irresponsible and force them to pay back most or all of the debt they've accumulated. While filing for bankruptcy may have once seemed like a good way out of a bad situation, many consumers are now opting to try and fix their financial woes themselves in lieu of letting the government fix it for them.
Sick and Tired of Not Profiting From Your Websites? Start Your Own Custom Adsense Websites Network TODAY with eWebCreator.com. Get Our FREE Website Secrets e-Course Here.
Article Source: http://EzineArticles.com/?expert=Matt_Hick
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