Bankruptcy is not a place you want to be, but sometimes people are so far into debts for one reason or another that it is unavoidable. At least they THINK it is unavoidable. The truth is that there are several options to filing for bankruptcy, and since bankruptcy is such a huge and drastic step, it should only be considered as your last option, AFTER you have thoroughly investigated and exhausted all other options as not being applicable or feasible.
But if bankruptcy is indeed your only or best option, it is not something you should do alone or by yourself, whether personal bankruptcy or business bankruptcy. The laws differ from state to state, and you really need the advice and counsel of a good bankruptcy lawyer. This bankruptcy attorney should be local to you, should be familiar with bankruptcy in your state, and can advise you as to what your real options are, as well as helping and advising with the mountain of paperwork and forms that will be required.
There are some common misconceptions about bankruptcy. It is totally different than declaring bankruptcy in the game of Monopoly, but some of the things that people assume about bankruptcy are totally false, and we will take a look at some of those things here.
Untruth #1: I will lose everything
There are different types of bankruptcy, and again, a qualified attorney can talk with you about this. But there is no guarantee or mandate that you will lose everything, or in fact, ANYTHING. You may be in a position to actually retain the things you have, and to be conscious to get caught up on overdue payments as well as making timely payments to your creditors in the future.
Untruth #2: Everybody will know about it
Basically, this is up to you and who you tell. Yes, bankruptcy is a matter of public record, but who will go into public records to search for it? Do you regularly go to the public records database to see if any of your friends or neighbors have declared bankruptcy? Only your creditors will know, and they are prohibited from making it public knowledge.
Untruth #3: I’ll never get credit again
Some people think that after declaring bankruptcy that they will never be able to buy anything again, even with cash. Nothing could be further from the truth. While it is a fact that filing bankruptcy will put a notable red mark on your credit report for the next 7 to 10 years, you will get credit again. In fact, you may even be inundated with offers for a secured credit card, which is not a bad idea to get your credit score built back up. Make sure you have learned something from your bankruptcy experience though, since these credit offers will probably come to you at exorbitant interest rates.
Untruth #4: It is difficult or impossible to file for bankruptcy
Bankruptcy laws have changed in recent years, and it is certainly not as easy as it once was. In fact, it is still a tedious and difficult process, and one that you would be well advised to work on with a bankruptcy lawyer to make sure you get all the forms right. But it is far from impossible.
Like anything else, you know to know the facts about something, and with bankruptcy, you need to know the law and your rights. Knowledge is power, and the more knowledge you have, the more options you have to exercise.
Visit our site for a free Bankruptcy Evaluation from a qualified bankruptcy attorney who is local to you and can provide advice and options. Our site is at http://www.bankruptcy-data.com and contains great tips and information about bankruptcy.
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
Saturday, November 10, 2007
Bankruptcy Alternative - There Are Ways to Pay off Your Credit Card Debts
One of the major reasons why people fall into a situation where they are left with no other option but to file for bankruptcy is the misuse of the credit cards. However, the good news is that if you are a bit careful in your actions associated with the use of credit cards and use some bankruptcy alternatives, you can easily avoid being declared as bankrupt by the court. For a common person, being declared as bankrupt may sound like an easy way to get rid of the huge piles of debts that they owe to the various creditors.
However, this is not true. In fact, if a debtor is declared as bankrupt, his or her financial life will be in a very dilapidated situation for the next ten years, at least. In America, for a common person, most of the things run on credit, but the bankruptcy will badly affect your credit score and credit capabilities. There are many other financial and social impacts. That is the reason; why prudent people always try to use some bankruptcy alternatives rather than directly going ahead and complete the bankruptcy filing process.
Keep a Constant Watch on the Outstanding Balances
Credit cards have emerged as a very convenient means of money transaction. However, if you mismanage its use, it may put you in a deep financial trouble in the end. Therefore, it is always a great idea to use credit cards as per your necessity. Some people try to show off by having multiple credit cards from various credit card companies. They never look at the rapidly increasing outstanding balances. They awake only when it is time to repay the amount and they start getting calls from the collection agency. Therefore, in order to avoid such unpleasant circumstances, you must use a bankruptcy alternative and make sure that you are not exceeding the outstanding balances from a set level, as per your financial capabilities.
Never Pay One Credit Card Debt with another Credit Card
Some people try to be over smart by trying to pay one credit card debt with another credit card. Here, you must note that the credit cards charge a very high rate of interest and paying one credit bill with another credit card will only put you in a much deeper financial crisis. In the end, you will find that instead of reducing the credit card debt, such action has in fact increased the overall debt substantially. Therefore, as a bankruptcy alternative, you should never do the mistake of paying one credit card debts with another credit card. It is not very prudent if you do so.
There is no separate chapter in the bankruptcy laws that deal with the bankruptcy caused by huge credit card debts.
Credit cards were introduced as convenient means of money transaction, but people started misusing the same and it resulted in forcing people towards filing bankruptcy. Therefore, if you want to avoid such bankruptcy, make sure that you look into the various bankruptcy alternatives as per the laws. Bankruptcy provides more information on this issue and guides you on the need and role of a competent bankruptcy attorney.
Article Source: http://EzineArticles.com/?expert=Asheesh_Mani
However, this is not true. In fact, if a debtor is declared as bankrupt, his or her financial life will be in a very dilapidated situation for the next ten years, at least. In America, for a common person, most of the things run on credit, but the bankruptcy will badly affect your credit score and credit capabilities. There are many other financial and social impacts. That is the reason; why prudent people always try to use some bankruptcy alternatives rather than directly going ahead and complete the bankruptcy filing process.
Keep a Constant Watch on the Outstanding Balances
Credit cards have emerged as a very convenient means of money transaction. However, if you mismanage its use, it may put you in a deep financial trouble in the end. Therefore, it is always a great idea to use credit cards as per your necessity. Some people try to show off by having multiple credit cards from various credit card companies. They never look at the rapidly increasing outstanding balances. They awake only when it is time to repay the amount and they start getting calls from the collection agency. Therefore, in order to avoid such unpleasant circumstances, you must use a bankruptcy alternative and make sure that you are not exceeding the outstanding balances from a set level, as per your financial capabilities.
Never Pay One Credit Card Debt with another Credit Card
Some people try to be over smart by trying to pay one credit card debt with another credit card. Here, you must note that the credit cards charge a very high rate of interest and paying one credit bill with another credit card will only put you in a much deeper financial crisis. In the end, you will find that instead of reducing the credit card debt, such action has in fact increased the overall debt substantially. Therefore, as a bankruptcy alternative, you should never do the mistake of paying one credit card debts with another credit card. It is not very prudent if you do so.
There is no separate chapter in the bankruptcy laws that deal with the bankruptcy caused by huge credit card debts.
Credit cards were introduced as convenient means of money transaction, but people started misusing the same and it resulted in forcing people towards filing bankruptcy. Therefore, if you want to avoid such bankruptcy, make sure that you look into the various bankruptcy alternatives as per the laws. Bankruptcy provides more information on this issue and guides you on the need and role of a competent bankruptcy attorney.
Article Source: http://EzineArticles.com/?expert=Asheesh_Mani
Filing Bankruptcy Online - Simple and Convenient
The innovative growth and advancements in Internet has now made filing bankruptcy online, a possibility. You can easily find hundreds of bankruptcy forms processing services online. These are many agencies that will not only provide you bankruptcy forms online, but will also assist you in filing bankruptcy thoroughly. The great thing about filing bankruptcy online is that it is both time and money saving. In most cases, the bankruptcy forms are provided to you free of cost. What is more, if you are aware of the basic facts associated with the various bankruptcy laws, you will not even need a bankruptcy attorney to help you with filing bankruptcy. However, you do need them, when it is about defending your bankruptcy claim.
What are the various ways to file a court petition for bankruptcy?
There are three ways to file a petition for bankruptcy in a bankruptcy court. You can hire a bankruptcy attorney to help you with the filing bankruptcy procedure. You can do it yourself or you can avail the valuable services provided by the various bankruptcy forms processing services, available on Internet. The last option can be a great way to take the pain out of the proceedings, as filing bankruptcy online can be done right from the comfort of your home.
How does filing bankruptcy online works?
When you choose to go for the online procedure of filing bankruptcy, the first thing you will need to do is to download the bankruptcy forms you require. Most of the online bankruptcy forms processing services, offer these forms in PDF format and the download is 100% free. Once you have the forms, you can email the forms to the website. Expert professionals review the forms submitted by you and if there is any problem, you are informed regarding the same. For example, you might have missed certain information. Once you submit the missing information or the suggested corrections, the online bankruptcy forms processing company will send you the final version of the court petition, and once you approve the same, they will file the court petition on your behalf.
What is the the cost of filing bankruptcy online
The bankruptcy forms processing services available online are not the free services. There is a certain amount that you need top pay, in order to avail these valuable services. However, this amount for filing bankruptcy is not a substantial one. In fact, the amount is much less than what you need to pay to your bankruptcy attorney, to do the job for you.
Overall, filing bankruptcy online is a great way that saves both money and time for you.
Filing bankruptcy online has emerged as one of the easiest way to file for bankruptcy. By using this method, you can easily cut down the bankruptcy cost and save substantial time for you. You do not even need to buy the bankruptcy forms because you can download them free, from such websites. To know more about filing bankruptcy process, role of bankruptcy attorney and other issues related to bankruptcy visit filing bankruptcy.
Article Source: http://EzineArticles.com/?expert=Asheesh_Mani
What are the various ways to file a court petition for bankruptcy?
There are three ways to file a petition for bankruptcy in a bankruptcy court. You can hire a bankruptcy attorney to help you with the filing bankruptcy procedure. You can do it yourself or you can avail the valuable services provided by the various bankruptcy forms processing services, available on Internet. The last option can be a great way to take the pain out of the proceedings, as filing bankruptcy online can be done right from the comfort of your home.
How does filing bankruptcy online works?
When you choose to go for the online procedure of filing bankruptcy, the first thing you will need to do is to download the bankruptcy forms you require. Most of the online bankruptcy forms processing services, offer these forms in PDF format and the download is 100% free. Once you have the forms, you can email the forms to the website. Expert professionals review the forms submitted by you and if there is any problem, you are informed regarding the same. For example, you might have missed certain information. Once you submit the missing information or the suggested corrections, the online bankruptcy forms processing company will send you the final version of the court petition, and once you approve the same, they will file the court petition on your behalf.
What is the the cost of filing bankruptcy online
The bankruptcy forms processing services available online are not the free services. There is a certain amount that you need top pay, in order to avail these valuable services. However, this amount for filing bankruptcy is not a substantial one. In fact, the amount is much less than what you need to pay to your bankruptcy attorney, to do the job for you.
Overall, filing bankruptcy online is a great way that saves both money and time for you.
Filing bankruptcy online has emerged as one of the easiest way to file for bankruptcy. By using this method, you can easily cut down the bankruptcy cost and save substantial time for you. You do not even need to buy the bankruptcy forms because you can download them free, from such websites. To know more about filing bankruptcy process, role of bankruptcy attorney and other issues related to bankruptcy visit filing bankruptcy.
Article Source: http://EzineArticles.com/?expert=Asheesh_Mani
Corporate Bankruptcy - Reorganize Debts, Avoid Bankruptcy
Federal Corporate bankruptcy laws mainly guide when companies go out of business due to varied reasons can improve their financial credibility by clearing their debt liability. In the fitness of things, the company should recover from debts and improve their business by filing case under chapter 11 corporate bankruptcy laws. Mainly it is reorganization of their business activities in order to make their business proposition profitable. Once you file a case, though management may continue to run day-to-day business activities but all new business reorganization schemes should be approved by court. If you file a case under chapter 7, under corporate bankruptcy laws, the company has to stop all business activities and declare completely out of business. In that case, the court assigns the job of liquidating all the assets to a trustee, who in turn sells off all the assets to pay off to lenders and investors.
Investors are paid first followed by secured lenders who arrange credit for the company against mortgage or other assets of the firm. In fact, they are sure to get their finances back if the company declares insolvency. If the company has floated bonds, the bondholders are sure to get their money back under such a situation as against shareholders. Shareholders are those who actually own the company and therefore are at a greater risk. The bondholders during bankruptcy will not get interest and principal payments and whereas the shareholders will no more get dividends. In case the company's liabilities are more compared to assets the shareholders may not get anything as per court directive. Normally the Company filing case under chapter 7 of corporate bankruptcy laws is worthless and therefore the bondholders or shareholders are sure to loose their money. However if you bondholder you may receive some amount but as shareholder you have lost your money. There is always a possibility that company's securities may continue to trade even after filing bankruptcy under chapter 11, as there is no law, which prohibits trading after filing the case.
As such on account of hassles involved in filing a case it is therefore always advisable to Avoid bankruptcy. However, to people it seems easy and most convenient way to get out of financial privations; but in fact, they cannot foresee the troubles ahead. In fact, it is not a wise solution as it leads to business bankruptcy and reckoning your business completely. Therefore, it is highly suggested to always consider other viable option before filing the case.
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. Go ahead to know intricacies of Corporate Bankruptcy and the ways to deal with it.
Article Source: http://EzineArticles.com/?expert=James_Arther
Investors are paid first followed by secured lenders who arrange credit for the company against mortgage or other assets of the firm. In fact, they are sure to get their finances back if the company declares insolvency. If the company has floated bonds, the bondholders are sure to get their money back under such a situation as against shareholders. Shareholders are those who actually own the company and therefore are at a greater risk. The bondholders during bankruptcy will not get interest and principal payments and whereas the shareholders will no more get dividends. In case the company's liabilities are more compared to assets the shareholders may not get anything as per court directive. Normally the Company filing case under chapter 7 of corporate bankruptcy laws is worthless and therefore the bondholders or shareholders are sure to loose their money. However if you bondholder you may receive some amount but as shareholder you have lost your money. There is always a possibility that company's securities may continue to trade even after filing bankruptcy under chapter 11, as there is no law, which prohibits trading after filing the case.
As such on account of hassles involved in filing a case it is therefore always advisable to Avoid bankruptcy. However, to people it seems easy and most convenient way to get out of financial privations; but in fact, they cannot foresee the troubles ahead. In fact, it is not a wise solution as it leads to business bankruptcy and reckoning your business completely. Therefore, it is highly suggested to always consider other viable option before filing the case.
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. Go ahead to know intricacies of Corporate Bankruptcy and the ways to deal with it.
Article Source: http://EzineArticles.com/?expert=James_Arther
Anticipated Changes To The Federal Bankruptcy Laws Maybe Pending
House Democratic members from North Carolina and California, respectively, recently propose legislation that would repeal the mortgage exception in the federal bankruptcy code.
This legislation would allow a judge to change the priority value of primary residence mortgages or alter interest rates on the property. In the current economic climate, industry insiders are predicting over half a million foreclosures in the next 24 months, prompting serious discussions around this issue.
What is Bankruptcy?
There are two main types of Bankruptcy options for the consumer. Chapter 7 Bankruptcy is often referred to as a "liquidation bankruptcy." In Chapter 7, all of the debtor's assets, other than those specifically exempt from liquidation, are turned over to a bankruptcy trustee for sale.
Chapter 7 Bankruptcy is used to eliminate, or discharge primarily unsecured debts such as credit cards or medical bills. Chapter 7 does not eliminate secured debts, such as vehicles. Chapter 7 will not save houses from foreclosure or a car from repossession if payments are delinquent.
Chapter 13 Bankruptcy, most commonly used to halt a foreclosure, results in a plan to repay all or part of a debt. Many times a debtor is allowed to pay credit cards and medical bills at pennies on the dollar. Chapter 13 is used most often to save a house from a foreclosure sale or vehicle from repossession. Chapter 13 is also useful to eliminate some IRS debt and to establish an affordable plan to pay IRS debt that cannot be eliminated. Chapter 13 Bankruptcy is available to debtors with regular income.
The bill before the house, entitled the Emergency Home Ownership and Mortgage Equity Protection Act, would give a bankruptcy judge the option of restructuring the amount an in debt person owes on the mortgage on a primary residence so that only the portion of the loan principal that doesn't exceed the market value of the property would receive high priority.
In other words, "the portion of the mortgage principal that exceeds the market value of the home would be treated as an unsecured liability, as in Chapter 7, and not given preferential treatment, meaning that the amount could be discharged in a bankruptcy proceeding. Traditionally mortgage payments on primary residences, like tax liabilities, have been sacred untouchable territory in bankruptcy negotiations, not allowed to be tampered with by the courts.
Jeff Kaller, visionary, educator and real estate developer has the pioneered the most preeminent pre-foreclosure system in United States. Specializing in a well kept industry niche, Jeff teaches the real estate secrets of purchasing pre-foreclosure properties while executing real estate theory to actual practice. A record of $7 million dollars in properties and a dedicated following of over 9,000 students in less than four years stands testament to his winning strategies.
P.S. If you haven't signed up for my Free Short Sale Course yet, then you are really missing out, go here: http://www.freeshortsalecourse.com/
Article Source: http://EzineArticles.com/?expert=Jeff_Kaller
This legislation would allow a judge to change the priority value of primary residence mortgages or alter interest rates on the property. In the current economic climate, industry insiders are predicting over half a million foreclosures in the next 24 months, prompting serious discussions around this issue.
What is Bankruptcy?
There are two main types of Bankruptcy options for the consumer. Chapter 7 Bankruptcy is often referred to as a "liquidation bankruptcy." In Chapter 7, all of the debtor's assets, other than those specifically exempt from liquidation, are turned over to a bankruptcy trustee for sale.
Chapter 7 Bankruptcy is used to eliminate, or discharge primarily unsecured debts such as credit cards or medical bills. Chapter 7 does not eliminate secured debts, such as vehicles. Chapter 7 will not save houses from foreclosure or a car from repossession if payments are delinquent.
Chapter 13 Bankruptcy, most commonly used to halt a foreclosure, results in a plan to repay all or part of a debt. Many times a debtor is allowed to pay credit cards and medical bills at pennies on the dollar. Chapter 13 is used most often to save a house from a foreclosure sale or vehicle from repossession. Chapter 13 is also useful to eliminate some IRS debt and to establish an affordable plan to pay IRS debt that cannot be eliminated. Chapter 13 Bankruptcy is available to debtors with regular income.
The bill before the house, entitled the Emergency Home Ownership and Mortgage Equity Protection Act, would give a bankruptcy judge the option of restructuring the amount an in debt person owes on the mortgage on a primary residence so that only the portion of the loan principal that doesn't exceed the market value of the property would receive high priority.
In other words, "the portion of the mortgage principal that exceeds the market value of the home would be treated as an unsecured liability, as in Chapter 7, and not given preferential treatment, meaning that the amount could be discharged in a bankruptcy proceeding. Traditionally mortgage payments on primary residences, like tax liabilities, have been sacred untouchable territory in bankruptcy negotiations, not allowed to be tampered with by the courts.
Jeff Kaller, visionary, educator and real estate developer has the pioneered the most preeminent pre-foreclosure system in United States. Specializing in a well kept industry niche, Jeff teaches the real estate secrets of purchasing pre-foreclosure properties while executing real estate theory to actual practice. A record of $7 million dollars in properties and a dedicated following of over 9,000 students in less than four years stands testament to his winning strategies.
P.S. If you haven't signed up for my Free Short Sale Course yet, then you are really missing out, go here: http://www.freeshortsalecourse.com/
Article Source: http://EzineArticles.com/?expert=Jeff_Kaller
Alabama Bankruptcy - 3 Facts You Must Know
For anyone thinking of filing personal bankruptcy in the "heart of Dixie", as Alabama is affectionately nicknamed by its residents, this information is for you.
In Alabama (as well as the other 49 states), the two types of bankruptcy commonly filed by individuals are Chapter 7 and Chapter 13. In a Chapter 7 bankruptcy proceeding, a court-appointed bankruptcy administrator takes possession of any nonexempt assets, sells them, and then uses the proceeds to pay creditors. The discharge is generally entered a few months after the petition is filed.
In a Chapter 13 bankruptcy proceeding, the individual filing bankruptcy proposes a plan to repay debts over a three to five year period. This plan must be approved by the Court, and plan payments are paid to the bankruptcy administrator, who then disburses the payments to creditors based on the terms of the approved plan. The discharge is not granted until the conclusion of the repayment plan.
If given a choice between Chapter 7 and Chapter 13, most people will pick Chapter 7 because it requires no repayment of debts and is over much quicker. However, bankruptcy laws enacted in 2005 place conditions on who can actually file a Chapter 7 bankruptcy petition, which brings us to...
Alabama Bankruptcy Fact #1
The bankruptcy laws enacted in 2005 impose a means test to determine if a person can file Chapter 7 bankruptcy. There are two ways to pass this means test.
The first way is to compare the household income of the person filing to the state median income. The annual income, calculated using the average gross income for the six-month period prior to filing, must be below the state median. Currently, the median income for a family of four in Alabama is $55,424.
If household income exceeds the median, a person can still file Chapter 7, based on the results of a means test calculation. Bankruptcy Form 22A is used for this calculation.
Additional information regarding the bankruptcy means test can be found on the U.S. Trustee Program's Website at http://www.usdoj.gov/ust.
Alabama Bankruptcy Fact #2
As stated earlier, the bankruptcy administrator in a Chapter 7 proceeding will take possession of nonexempt assets and liquidate them in order to pay creditors. The next obvious question - what exactly is exempt in Alabama?
Unfortunately, the answer is "not much". As of this writing, Alabama allows a $5,000 homestead exemption and a $3,000 personal property exemption. If the homestead is jointly owned by a husband and wife, each may separately claim the homestead exemption. There are other exemptions, and the laws may change at any time, so make sure you consult an attorney before you file bankruptcy, which brings us to...
Alabama Bankruptcy Fact #3
Many people who file bankruptcy without counsel do so because of the belief that they cannot afford an attorney. Truth is, bankruptcy is a complicated legal matter and you can't afford not to have an attorney. In addition, for those who really can't afford a lawyer, there are sources of free help. It's just a matter of tracking it down.
Start by calling your local bar association. They will be able to refer you to local attorneys and organizations that may be able to help you. If your local bar is unable to help, contact the Alabama Bar. Their contact information is available at http://www.alabar.org.
Dawn Hall is a freelance writer who worked as an assistant to a Chapter 7 bankruptcy trustee. She is currently developing a free online Chapter 7 bankruptcy resource guide. Visit her website for more information regarding Alabama bankruptcy.
Article Source: http://EzineArticles.com/?expert=Dawn_Hall
In Alabama (as well as the other 49 states), the two types of bankruptcy commonly filed by individuals are Chapter 7 and Chapter 13. In a Chapter 7 bankruptcy proceeding, a court-appointed bankruptcy administrator takes possession of any nonexempt assets, sells them, and then uses the proceeds to pay creditors. The discharge is generally entered a few months after the petition is filed.
In a Chapter 13 bankruptcy proceeding, the individual filing bankruptcy proposes a plan to repay debts over a three to five year period. This plan must be approved by the Court, and plan payments are paid to the bankruptcy administrator, who then disburses the payments to creditors based on the terms of the approved plan. The discharge is not granted until the conclusion of the repayment plan.
If given a choice between Chapter 7 and Chapter 13, most people will pick Chapter 7 because it requires no repayment of debts and is over much quicker. However, bankruptcy laws enacted in 2005 place conditions on who can actually file a Chapter 7 bankruptcy petition, which brings us to...
Alabama Bankruptcy Fact #1
The bankruptcy laws enacted in 2005 impose a means test to determine if a person can file Chapter 7 bankruptcy. There are two ways to pass this means test.
The first way is to compare the household income of the person filing to the state median income. The annual income, calculated using the average gross income for the six-month period prior to filing, must be below the state median. Currently, the median income for a family of four in Alabama is $55,424.
If household income exceeds the median, a person can still file Chapter 7, based on the results of a means test calculation. Bankruptcy Form 22A is used for this calculation.
Additional information regarding the bankruptcy means test can be found on the U.S. Trustee Program's Website at http://www.usdoj.gov/ust.
Alabama Bankruptcy Fact #2
As stated earlier, the bankruptcy administrator in a Chapter 7 proceeding will take possession of nonexempt assets and liquidate them in order to pay creditors. The next obvious question - what exactly is exempt in Alabama?
Unfortunately, the answer is "not much". As of this writing, Alabama allows a $5,000 homestead exemption and a $3,000 personal property exemption. If the homestead is jointly owned by a husband and wife, each may separately claim the homestead exemption. There are other exemptions, and the laws may change at any time, so make sure you consult an attorney before you file bankruptcy, which brings us to...
Alabama Bankruptcy Fact #3
Many people who file bankruptcy without counsel do so because of the belief that they cannot afford an attorney. Truth is, bankruptcy is a complicated legal matter and you can't afford not to have an attorney. In addition, for those who really can't afford a lawyer, there are sources of free help. It's just a matter of tracking it down.
Start by calling your local bar association. They will be able to refer you to local attorneys and organizations that may be able to help you. If your local bar is unable to help, contact the Alabama Bar. Their contact information is available at http://www.alabar.org.
Dawn Hall is a freelance writer who worked as an assistant to a Chapter 7 bankruptcy trustee. She is currently developing a free online Chapter 7 bankruptcy resource guide. Visit her website for more information regarding Alabama bankruptcy.
Article Source: http://EzineArticles.com/?expert=Dawn_Hall
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