Every person can begin acquiring loans and credit cards at the age of 18, thus making it very simple to find yourself in debt if you haven't got any financial discipline. The simple act of repaying debts becomes enormous and very complicated. Filing for one of the bankruptcy chapter as a last resort is the only option left to them. Bankruptcy is not as simple as deciding not to pay a debt. It is a legal process proceeded over by the United States Department of Justice.
There is a distinguishing difference in bankruptcy chapter 7, 11, and 13. Every bankruptcy chapter is under the regulation of The United States Bankruptcy Courts and is governed by federal laws determining the rules and guidelines for each bankruptcy chapter. Bankruptcy laws have also changed within recent years so it is especially important to know which changes in law are the most applicable to the given situation. Within its legal proceedings, regardless the chapter filed, a bankruptcy trustee is appointed for the case.
It is important, when dealing with a bankruptcy trustee, to maintain complete honesty. Issuing a false statement in court or to a court appointed representative is perjury and can result in stiff fines and imprisonment. With the advent of wide spread technology and information systems, knowledge are quickly passed from party to party.
Chapter 7 bankruptcy is where the individual person is unable to pay anything to his creditors. A list of all debts owed will be compiled by the judge and lawyer and the individual will be audited whether or not he will be able to pay back the money that is owed. If the person is not able to repay the debts then the assets not covered under exemption will be sold or returned and any extra monies paid to the creditors.
Chapter 11 bankruptcy and chapter 13 bankruptcy are where the debtor and his lawyer makes arrangements through the court system to pay back the debts in monthly installments that will not overburden the individual. Some assets, like 401k or retirement saving plans, cannot be touched by the creditors.
The need to declare corporate or personal bankruptcy may have never been your end goal. A trip to bankruptcy court can definitely not solve all of your problems but it can help you get a fresh start if you are overwhelmed by debt. The bankruptcy trustee appointed to your case will review your information and financial records before making a decision. Abide by the decision and you will be on your way to a different life where your debt is gone and you can start again.
Alan Lester van der Reinje is a former broker and runs the Investment Blog InvestorToday.net. He has more valuable advice about Chapter 7 Bankruptcy on a dedicated information site.
Article Source: http://EzineArticles.com/?expert=Alan_Lester_Van_Der_Reinje
Thursday, November 8, 2007
Quick Tips On Bankruptcy Proceedings
More and more people in this day and ge are finding themselves in bankruptcy court due to the flatening economy in the U.S. If you are one of these people then there are few simple rules that you should follow to make sure that you get through the process intact.
You will need to hire a competent bankruptcy lawyer to represent you during the process and if you have never had dealings with a lawyer then there are a few things that you should know. There will be a billing process that your lawyer will present to you and he or she will want it it be an open ended process, where by they can basically add up the charges and send them to you.
They will charge you an hourly rate but it is up to them to keep track of the hours and then bill you for them so there is plenty of room to get screwed and you will if you aren't on guard. Lawyers are well trianed to come on to you like a friend and an ally so beware of this.
There are honest lawyers out there but they are by far the minority in the profesión, so you have to scout around and if you have cash to pay then take your time and don't by shy about being a jerk and walking out of a lawyers office, because most of them are con artists and they themselves know this fact.
It is best if you hire a lawyer from the state that you are going through your bankruptcy in, because they will be familiar with the laws of that state. Your lawyer should be happy to present you with regular bills with some type of notation as to what the hours you are being charged for were spent doing. Even a sentence or two world be fine as long as it explains briefly what you are being charged for.
Don't let your lawyer build up one big bill that he or she is going to present you with in the end or you you will get the screwing of your life.
Written by Anthony Millman. Find the latest information on bankruptcy as well as Debt Advice
Article Source: http://EzineArticles.com/?expert=Anthony_Millman
You will need to hire a competent bankruptcy lawyer to represent you during the process and if you have never had dealings with a lawyer then there are a few things that you should know. There will be a billing process that your lawyer will present to you and he or she will want it it be an open ended process, where by they can basically add up the charges and send them to you.
They will charge you an hourly rate but it is up to them to keep track of the hours and then bill you for them so there is plenty of room to get screwed and you will if you aren't on guard. Lawyers are well trianed to come on to you like a friend and an ally so beware of this.
There are honest lawyers out there but they are by far the minority in the profesión, so you have to scout around and if you have cash to pay then take your time and don't by shy about being a jerk and walking out of a lawyers office, because most of them are con artists and they themselves know this fact.
It is best if you hire a lawyer from the state that you are going through your bankruptcy in, because they will be familiar with the laws of that state. Your lawyer should be happy to present you with regular bills with some type of notation as to what the hours you are being charged for were spent doing. Even a sentence or two world be fine as long as it explains briefly what you are being charged for.
Don't let your lawyer build up one big bill that he or she is going to present you with in the end or you you will get the screwing of your life.
Written by Anthony Millman. Find the latest information on bankruptcy as well as Debt Advice
Article Source: http://EzineArticles.com/?expert=Anthony_Millman
The Following Are Steps On How To File Bankruptcy
The following are steps on how to file bankruptcy: collection paperwork, filing bankruptcy, automatic stay, bankruptcy trustee, meeting of creditors and intent prelim. Crowd paperwork is the introductory and most important step to drive the formation of how to file a bankruptcy.
One devoir itemize his current income sources; higher money transactions for two senescence; magazine living expenses; debts, both secured and unsecured and property which includes not exclusive real states but all assets and sphere. One should besides collect his customs returns for the last two second childhood, deeds to fraction real estate owned, car titles and documents for any loan.
Once the needful documents are gathered, one should for rule which property is exempt from seizure based on the exemptions provided by his State. This is the point stage power bankruptcy may impersonate filed. Domination filing bankruptcy either the person involved or his counsel will occasion to file a two-page appeal and several other forms at a bankruptcy district adjudicator seat he resides will occasion to file a two-page appeal and several other forms at a bankruptcy district adjudicator seat he resides.
These forms are referred to through the schedules and strike one to characterize his or her current money rank and recent budgetary transactions. If the creditors or the sheriff observe or treasure out that you hold not been sweeping domination your invoice of your fiscal position, embodied could jeopardize the outcome of the entreaty. When the gathered paperwork has been filed bury the bankruptcy hizzoner, the touching step on how to file bankruptcy is an automatic stay momentarily goes into ramification. This provision prevents creditor from creation direct contact to the person filing for bankruptcy, or staking a claim on cut of the property of the person involved. Ropes addition, this will barricade extra foreclosure action.
Article Source: http://EzineArticles.com/?expert=Alex_Zenden
One devoir itemize his current income sources; higher money transactions for two senescence; magazine living expenses; debts, both secured and unsecured and property which includes not exclusive real states but all assets and sphere. One should besides collect his customs returns for the last two second childhood, deeds to fraction real estate owned, car titles and documents for any loan.
Once the needful documents are gathered, one should for rule which property is exempt from seizure based on the exemptions provided by his State. This is the point stage power bankruptcy may impersonate filed. Domination filing bankruptcy either the person involved or his counsel will occasion to file a two-page appeal and several other forms at a bankruptcy district adjudicator seat he resides will occasion to file a two-page appeal and several other forms at a bankruptcy district adjudicator seat he resides.
These forms are referred to through the schedules and strike one to characterize his or her current money rank and recent budgetary transactions. If the creditors or the sheriff observe or treasure out that you hold not been sweeping domination your invoice of your fiscal position, embodied could jeopardize the outcome of the entreaty. When the gathered paperwork has been filed bury the bankruptcy hizzoner, the touching step on how to file bankruptcy is an automatic stay momentarily goes into ramification. This provision prevents creditor from creation direct contact to the person filing for bankruptcy, or staking a claim on cut of the property of the person involved. Ropes addition, this will barricade extra foreclosure action.
Article Source: http://EzineArticles.com/?expert=Alex_Zenden
Debt Alternative to Bankruptcy
If you have serious debts and are unable to pay your bills, one of your options is to go bankrupt. It's only advisable to file for bankruptcy debt relief if you have a substantial amount of debt, or debt that will take you an unreasonable amount of time to pay off. For example if your debts are £20,000 or higher. If you've tried debt relief programs and counseling services, and they all say that there's no hope for you, then you can go the route of bankruptcy debt relief. When you file for bankruptcy debt relief, and you have that bankruptcy on your credit, it can take seven years for it to come off. However, before making a decision you should also be aware of other potential debt relief options.
Debt Consolidation
Debt consolidation is an effective strategy to paying down debts especially if you have a few high interest revolving credit card accounts. Debt consolidation is also the most popular sought after debt service before filing for bankruptcy. Debt consolidators can provide debt help in the form of debt settlement, a debt consolidation loan or a structured settlement. Debt negotiation is a means to avoid bankruptcy while still repaying a portion of your debts. Debt Elimination - A well-advertised method where you essentially do not pay your creditors. However, be aware that debt consolidation can be dangerous because you treat only the symptom.
IVA (Individual Voluntary Arrangement)
An IVA is another possible option if your debts are over £15,000. With this option you can clear up to 75% of your debts over a 5-year period. You also know precisely what your payment obligations will be for the five year life of the IVA. If an IVA or other debt help can help you avoid bankruptcy then it's probably a better debt solution. An insolvency practitioner will be appointed if an IVA is found to be more suitable and they will help stop all the creditors knocking on your door.
Creditors
Bankruptcy is a powerful procedure with serious repercussions that allows a debtor the benefit of relief from his or her creditors and the possibility of a fresh start. Remember, that bankruptcy lawyers will probably be representing your creditors to enforce their rights against you. Usually when a person becomes overwhelmed by bills, they must deal with their creditors aggressively attempting to get money from them. Your creditors only care about collecting money from you and do not care about what is best for your situation. Once you are declared bankrupt you no longer have to pay those creditors back.
Article Source: http://EzineArticles.com/?expert=Paul_Hockney
Debt Consolidation
Debt consolidation is an effective strategy to paying down debts especially if you have a few high interest revolving credit card accounts. Debt consolidation is also the most popular sought after debt service before filing for bankruptcy. Debt consolidators can provide debt help in the form of debt settlement, a debt consolidation loan or a structured settlement. Debt negotiation is a means to avoid bankruptcy while still repaying a portion of your debts. Debt Elimination - A well-advertised method where you essentially do not pay your creditors. However, be aware that debt consolidation can be dangerous because you treat only the symptom.
IVA (Individual Voluntary Arrangement)
An IVA is another possible option if your debts are over £15,000. With this option you can clear up to 75% of your debts over a 5-year period. You also know precisely what your payment obligations will be for the five year life of the IVA. If an IVA or other debt help can help you avoid bankruptcy then it's probably a better debt solution. An insolvency practitioner will be appointed if an IVA is found to be more suitable and they will help stop all the creditors knocking on your door.
Creditors
Bankruptcy is a powerful procedure with serious repercussions that allows a debtor the benefit of relief from his or her creditors and the possibility of a fresh start. Remember, that bankruptcy lawyers will probably be representing your creditors to enforce their rights against you. Usually when a person becomes overwhelmed by bills, they must deal with their creditors aggressively attempting to get money from them. Your creditors only care about collecting money from you and do not care about what is best for your situation. Once you are declared bankrupt you no longer have to pay those creditors back.
Article Source: http://EzineArticles.com/?expert=Paul_Hockney
Personal Bankruptcy - Leads to Loosing Future Credits
Personal bankruptcy as the term implies relates to cases being filed by individual who are self employed or salaried individuals under various chapters of US federal laws applicable uniformly to all the states. Bankruptcy, falls under chapter 7, 9,11,12,13 of bankruptcy code. The bankruptcy law covers chapters on all related issues and how to deal and decide cases effectively. Chapter 7 applies to debtor with no assets to repay, chapter9 applies to govt. municipalities, chapter11 applies to owner or shareholders of companies, chapter12 to farmers and fishermen, chapter13 to persons with regular and stable income or more commonly termed as wage earner bankruptcy, to self employed and salaried individuals or family.
As per Personal bankruptcy law, an individual while filing relief under chapter 7 is allowed certain exemptions which may include home where he is presently living, personal effects, retirement dues, pension, insurance policies etc. limited to the tune of as fixed by the court, This exemption limit doubles in case of a married couple. Filing of case requires furnishing of full details of outstanding debts and assets and you can not sell non exempt assts till the case is decided by the court, which may be used for repayment of debts. Immediately on filing case trustee is appointed by the court to take under his control all the assets for liquidation. However, in certain instances the lender may allow exemption of some property from liquidation by the trustee. However, this exemption limit varies from sate to state. Once the case is filed for bankruptcy in court, there is an automatic stay on both the parties whether debtor or lender to act otherwise, the case being subjudice i.e. your lender cannot collect debt from you directly.
In healthy way of thinking, you can say that, bankruptcy is a legal way for individuals or business firms to clear off their debts under chapter 13 or write off their liabilities under chapter 7.
Personal bankruptcy laws are in no different from Michigan bankruptcy, laws only there is slight variations in exemptions granted under chapter 7. To deal with such cases there are various legal firms/attorneys who provide proper counseling on all aspects relating to bankruptcy laws and can help you in dealing with the situation Corporate Bankruptcy laws allows a corporation/company, or partnership firm to file under chapter 7 or 11.If you file under chapter 7, the court immediately assigns trustee to sell all assets of the bankruptcy firm and then arrange payment to lenders.
Debtips is the most comprehensive resource on Debt Consolidation Loan, Bankruptcy, Mortgage and Credit. It is just the right channel to make you finance literate and also helps in managing your personal finances. Visit Debtips and find all the information on
# Debt Consolidation
# Credit Report
# Online Mortgage
# Bad Credit
Bankruptcy is an unfortunate situation and can happen even to seasoned businessman or to a new entrepreneur. Avoiding Bankruptcy is the best strategic plan one can adopt. In case you are suffering from one go ahead to know how to deal with Personal Bankruptcy.
Article Source: http://EzineArticles.com/?expert=James_Arther
As per Personal bankruptcy law, an individual while filing relief under chapter 7 is allowed certain exemptions which may include home where he is presently living, personal effects, retirement dues, pension, insurance policies etc. limited to the tune of as fixed by the court, This exemption limit doubles in case of a married couple. Filing of case requires furnishing of full details of outstanding debts and assets and you can not sell non exempt assts till the case is decided by the court, which may be used for repayment of debts. Immediately on filing case trustee is appointed by the court to take under his control all the assets for liquidation. However, in certain instances the lender may allow exemption of some property from liquidation by the trustee. However, this exemption limit varies from sate to state. Once the case is filed for bankruptcy in court, there is an automatic stay on both the parties whether debtor or lender to act otherwise, the case being subjudice i.e. your lender cannot collect debt from you directly.
In healthy way of thinking, you can say that, bankruptcy is a legal way for individuals or business firms to clear off their debts under chapter 13 or write off their liabilities under chapter 7.
Personal bankruptcy laws are in no different from Michigan bankruptcy, laws only there is slight variations in exemptions granted under chapter 7. To deal with such cases there are various legal firms/attorneys who provide proper counseling on all aspects relating to bankruptcy laws and can help you in dealing with the situation Corporate Bankruptcy laws allows a corporation/company, or partnership firm to file under chapter 7 or 11.If you file under chapter 7, the court immediately assigns trustee to sell all assets of the bankruptcy firm and then arrange payment to lenders.
Debtips is the most comprehensive resource on Debt Consolidation Loan, Bankruptcy, Mortgage and Credit. It is just the right channel to make you finance literate and also helps in managing your personal finances. Visit Debtips and find all the information on
# Debt Consolidation
# Credit Report
# Online Mortgage
# Bad Credit
Bankruptcy is an unfortunate situation and can happen even to seasoned businessman or to a new entrepreneur. Avoiding Bankruptcy is the best strategic plan one can adopt. In case you are suffering from one go ahead to know how to deal with Personal Bankruptcy.
Article Source: http://EzineArticles.com/?expert=James_Arther
Should I Feel Guilty If I File Bankruptcy in Canada?
If you have committed an elaborate fraud, got caught, and find yourself unable to pay your debts because you spent time in jail for committing fraud, then yes, you do bear responsibility for your actions, and the results.
If you intentionally racked up your credit cards buying stereos, televisions and other luxury items, knowing that you had no hope of every repaying them, then yes, you should feel some guilt.
However, based on my many years of experience, most people who file for personal bankruptcy in Canada due so because they got into financial trouble after losing their job, going through a divorce, or having medical problems that prevented them from paying their debts. No-one wants to go bankrupt, and so even when circumstances are beyond your control, many people face a moral dilemma: Should I feel guilty if I go bankrupt?
I believe that if you have explored all other options, and still need to go bankrupt, you should not spend a lot of time feeling bad about your decision.
Start by attempting to repay your debts on your own. Cut your monthly expenses, and try to increase your income to repay your debts. Perhaps getting a debt consolidation loan is another way to make your payments each month more manageable. Talk to a non-profit credit counsellor about filing a Debt Management Plan. Talk to a licensed Canadian trustee about filing a consumer proposal.
If none of these options are possible for you, and if you face the threat of bank account seizures or wage garnishment, a personal bankruptcy in Canada may be your only logical option. You should not feel guilty about dealing with your debts so you can get on with your life.
But don't stop there. Make a promise to yourself: "I promise I will never get into too much debt again." Resolve to watch your money carefully, and only buy things when you can pay cash. Avoid credit unless absolutely necessary, such as getting a mortgage on a house. By using personal bankruptcy in Canada as a fresh start, you can avoid feeling guilty, and truly receive a fresh start.
J. Douglas Hoyes is a chartered accountant, licensed trustee in bankruptcy, and co-founder of Hoyes, Michalos & Associates Inc., one of Canada's largest personal insolvency firms providing personal bankruptcy services. Douglas is a contributing editor of http://www.bankruptcy-canada.ca, Canada's largest free personal bankruptcy information web site. More information on bankruptcy in Canada and guilt can be found at http://www.bankruptcy-canada.ca/bankruptcy/feeling-guilty-after-going-bankrupt.htm
Article Source: http://EzineArticles.com/?expert=J._Douglas_Hoyes
If you intentionally racked up your credit cards buying stereos, televisions and other luxury items, knowing that you had no hope of every repaying them, then yes, you should feel some guilt.
However, based on my many years of experience, most people who file for personal bankruptcy in Canada due so because they got into financial trouble after losing their job, going through a divorce, or having medical problems that prevented them from paying their debts. No-one wants to go bankrupt, and so even when circumstances are beyond your control, many people face a moral dilemma: Should I feel guilty if I go bankrupt?
I believe that if you have explored all other options, and still need to go bankrupt, you should not spend a lot of time feeling bad about your decision.
Start by attempting to repay your debts on your own. Cut your monthly expenses, and try to increase your income to repay your debts. Perhaps getting a debt consolidation loan is another way to make your payments each month more manageable. Talk to a non-profit credit counsellor about filing a Debt Management Plan. Talk to a licensed Canadian trustee about filing a consumer proposal.
If none of these options are possible for you, and if you face the threat of bank account seizures or wage garnishment, a personal bankruptcy in Canada may be your only logical option. You should not feel guilty about dealing with your debts so you can get on with your life.
But don't stop there. Make a promise to yourself: "I promise I will never get into too much debt again." Resolve to watch your money carefully, and only buy things when you can pay cash. Avoid credit unless absolutely necessary, such as getting a mortgage on a house. By using personal bankruptcy in Canada as a fresh start, you can avoid feeling guilty, and truly receive a fresh start.
J. Douglas Hoyes is a chartered accountant, licensed trustee in bankruptcy, and co-founder of Hoyes, Michalos & Associates Inc., one of Canada's largest personal insolvency firms providing personal bankruptcy services. Douglas is a contributing editor of http://www.bankruptcy-canada.ca, Canada's largest free personal bankruptcy information web site. More information on bankruptcy in Canada and guilt can be found at http://www.bankruptcy-canada.ca/bankruptcy/feeling-guilty-after-going-bankrupt.htm
Article Source: http://EzineArticles.com/?expert=J._Douglas_Hoyes
Bankruptcy - Is It True You Can't Discharge Taxes In Bankruptcy?
Bankruptcy is a legal procedure that may help you eliminate your tax debt. This does not mean that it will solve all your IRS Problems and you should think about the effects it will have on you and your family before filing. Even though this process should probably be considered as your last resort for solving your IRS Problems, we can certainly explore the possibilities.
There are two basic types of bankruptcy: Chapter 7 (straight bankruptcy) and Chapter 11, 12, or 13 (repayment plans). Chapter 7 bankruptcy allows you to liquidate your debts. Chapter 11, 12 or 13 bankruptcy lets you have a payment plan so you can repay some debts and eliminate the remainder. So, what about tax debts?
There are five criteria that have to be met for your tax debts to be discharged. These criteria are:
• Filing due date for tax return is at least 3 years prior to filing for bankruptcy
• Tax return was filed at least 2 years prior to filing for bankruptcy
• Tax assessment is at least 240 days prior to filing for bankruptcy
• Tax return was not fraudulent
• Taxpayer was not guilty of tax evasion
It is also important to note that not all tax debts are eligible to be discharged. Taxes that result from unfilled tax returns obviously cannot be discharged.
One aspect of bankruptcy is that you must have filed your last 4 years tax returns before your case can go before the creditors' meeting. You will be required to provide a copy of your most recent tax return to the bankruptcy court and your creditors have the right to ask for a copy of it too.
You also need to know that bankruptcy will affect you and your family for some time. It will remain on your credit report for up to 10 years. This could hinder your ability to obtain loans, establish new lines of credit, rent an apartment, or even change jobs in some cases.
Darrin T. Mish is a Nationally recognized Attorney whose practice focuses on representing clients across the United States with IRS Problems. He is AV rated by Martindale-Hubbel and is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. He has been honored by a listing in Martindale-Hubbel's Bar Register of Preeminent Lawyers. His passion is providing IRS help to taxpayers with both individual and payroll tax problems. He teaches attorneys, CPAs and Enrolled Agents in the finer aspects of IRS representation all around the United States. He can be reached at his website at http://www.getIRShelp.com
Article Source: http://EzineArticles.com/?expert=Darrin_Mish
There are two basic types of bankruptcy: Chapter 7 (straight bankruptcy) and Chapter 11, 12, or 13 (repayment plans). Chapter 7 bankruptcy allows you to liquidate your debts. Chapter 11, 12 or 13 bankruptcy lets you have a payment plan so you can repay some debts and eliminate the remainder. So, what about tax debts?
There are five criteria that have to be met for your tax debts to be discharged. These criteria are:
• Filing due date for tax return is at least 3 years prior to filing for bankruptcy
• Tax return was filed at least 2 years prior to filing for bankruptcy
• Tax assessment is at least 240 days prior to filing for bankruptcy
• Tax return was not fraudulent
• Taxpayer was not guilty of tax evasion
It is also important to note that not all tax debts are eligible to be discharged. Taxes that result from unfilled tax returns obviously cannot be discharged.
One aspect of bankruptcy is that you must have filed your last 4 years tax returns before your case can go before the creditors' meeting. You will be required to provide a copy of your most recent tax return to the bankruptcy court and your creditors have the right to ask for a copy of it too.
You also need to know that bankruptcy will affect you and your family for some time. It will remain on your credit report for up to 10 years. This could hinder your ability to obtain loans, establish new lines of credit, rent an apartment, or even change jobs in some cases.
Darrin T. Mish is a Nationally recognized Attorney whose practice focuses on representing clients across the United States with IRS Problems. He is AV rated by Martindale-Hubbel and is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. He has been honored by a listing in Martindale-Hubbel's Bar Register of Preeminent Lawyers. His passion is providing IRS help to taxpayers with both individual and payroll tax problems. He teaches attorneys, CPAs and Enrolled Agents in the finer aspects of IRS representation all around the United States. He can be reached at his website at http://www.getIRShelp.com
Article Source: http://EzineArticles.com/?expert=Darrin_Mish
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