Information On Bankruptcy Articles and News

Will You Have to Pay Back the Debt Anyway?

2007-11-16T03:57:00.000-08:00

The most widely held misconception about bankruptcy is that it’s the debtor’s version of the “get out of jail free” card in Monopoly. While most people know that bankruptcy affects your credit for 7 to 10 years, very few people know that it’s possible that you’ll have to pay back the debt anyway, even if you file a Chapter 7 “straight” bankruptcy. The formal definition of bankruptcy is “a proceeding in federal court in which an insolvent debtor’s assets are liquidated and the debtor is relieved of further liability.” On the other hand, the commonplace definition of bankruptcy is probably “the process of completely wiping out your debts for free.” In the majority of cases, the latter definition may be appropriate, but in some scenarios, it’s likely that even with bankruptcy, you’ll still have to pay back at least a portion of the debt.
So when is it likely that you’ll have to pay back your debts? Here are the most common scenarios when you’ll get all the negatives of filing bankruptcy (severe credit impact for 7 to 10 years), but none of the benefits (you’ll still have to pay back at least part of the debt):
1) You make more than the average person in your state. If this is the case, then it’s likely that you’ll be forced into a Chapter 13 bankruptcy plan. In a Chapter 13 bankruptcy, the court orders that you pay all your disposable income to a court appointed trustee, who in turn disburses payments to your creditors. Keep in mind that the court determines your disposable income by national and county statistics on average necessary expenses, not what you’re paying. So just because you’re paying a lot for a car doesn’t mean the court will approve it. There are numerous cases when a judge ordered families to stop sending their children to private schools so they can have more money to pay back their creditors. In Illinois, here are the latest statistics on the Illinois median income by size of household:
Illinois Estimate
1-person families 41,650
2-person families 52,891
3-person families 62,176
4-person families 72,368
2) You have assets. If you own a home or car, then it’s possible that the bankruptcy court will force you to sell them to generate sufficient cash to pay back your creditors. Chances are if have a good chunk of change invested (unless it’s in a tax-exempt account like an IRA) then you’ll also be forced to liquidate it. If you have a second home or another vehicle (assuming you own both completely), then you’re really out of luck. Fortunately, there are some safeguards to protect consumers from bankruptcy hell. In Illinois, every resident is entitled to at least $7,500 of the value of their home, $1200 of the value of their vehicle, and $2,000 for anything that they want (known as the wildcard exemption). Also, these values double if you’re married (assuming the property is in both of your names).
What does this actually mean? Consider the following example.

Let’s say you have a house that’s worth $250,000, and it’s in both yours and your wife’s name. You still owe about $200,000 on your mortgage, and you decided to file Chapter 7 bankruptcy. In this example, you would be forced to sell your home, and with the proceeds you would pay back the mortgage company what you owe on the outstanding balance of the loan ($200,000), you’d pay yourself the Illinois real estate exemption ($15,000), and then you’d pay back your other creditors whatever was left ($250K-200K-15K=$35,000).
Let say your house was only worth $215,000, but everything else in the above example remained the same. In this case, you wouldn’t be forced to sell your home because the proceeds from the sale wouldn’t amount to anything after you paid back the mortgage company and then paid back yourself the Illinois real estate exemption.
3) The creditors can prove that you were fraudulent and never had any intention of paying them back.
For the majority of us it means that unless a) you don’t have a lot of equity in any of your property, b) you don’t have any investments like stocks, real estate, ect., c) you don’t care about having to sell anything mentioned in points a and b, or d) you don’t care about having to give up your disposable for 5 years in a Chapter 13, then bankruptcy may not be your best option.

http://www.articlefrenzy.com/Article/Will-You-Have-to-Pay-Back-the-Debt-Anyway-/62103

New Bankruptcy Law

2007-11-16T03:56:00.000-08:00

New Bankruptcy Law Did Not Slow Down Filings
Make sure that you understand the news bankruptcy law before you file for bankruptcy as the new bankruptcy law is more favorable for the people you owe money to. Make sure that your bankruptcy lawyer explains to you the difference in the new bankruptcy law.
After listening to financial institutions and lender complain about the amount of money their companies and shareholders were losing to bankruptcy, the government tightened the requirements for bankruptcy in 2005. Under the new bankruptcy law, filing a Chapter 7 bankruptcy is not as easy as in the past and many hoping to see their debts wiped clean in a hurry found themselves restricted to Chapter 13 bankruptcy, which is a court-ordered repayment plan to pay off debt.

Under the new bankruptcy law, persons looking to file must complete a debt counseling program during which it is determined if the person has the ability to pay their loans under a court-ordered plan. Once the bankruptcy goes through the court, before the debts are discharged, they have to attend a second session on debt management and money management. The new bankruptcy law does not stipulate they follow anything they learn in the sessions, only that they have to attend before their slate can be wiped clean.

Additional changes allows for some assets that used to be exempt to be confiscated and sold by the bankruptcy trustee to satisfy a portion of the debt. State exemptions for certain properties also play a role in the new bankruptcy law. For example, a person living in Nevada, having met the residency requirement and passed the bankruptcy income test, can claim a $15,000 exemption on a motor vehicle. In California the exemption is $2,300 under the new bankruptcy law.

Passing Means Test Is First Important Step

To determine if a person can file under the new bankruptcy law, a means test is completed. If the current monthly income is below the average income in the state in which they reside, they can file for Chapter 7 bankruptcy. It should be noted that the current monthly income is calculated as an average for a six-month period prior to filing and not the income for the past month. If a person lost their job and wants to file for bankruptcy, any employment during the previous six months will be considered during application of the means test.

If their current monthly income exceeds the state average income they will need to file for Chapter 13 bankruptcy. Additionally, an income level as low as $166 a month over the

average will push them towards Chapter 13, under the new bankruptcy law, regardless of actual living expenses. All expenses are governed by the Internal Revenue Service’s expense guidelines, even if the area in which they live has a higher cost of living.

http://www.articlefrenzy.com/Article/New-Bankruptcy-Law/120805

Pay Your Bills on Time Maintain Your Credit Ratings

2007-11-16T03:55:00.000-08:00

It is often said that the most important possession a person is their reputation and good name. Your credit rating is attached to your name and follows you wherever you go in North America – be it New York, Chicago, Edmonton Alberta or Vancouver Canada. A credit rating is like a mirror- wonderful to look at when clear, but not very helpful of useful is damaged or sullied.

How can you maintain a good credit rating? It all comes down to consistency of paying your bills onetime and not running up debts that you cannot pay off or miss payments.

Many people will say- its only one small payment what does Visa, the car dealership where you financed your new auto or SUV care? After all they have more money than they ever need. Maybe you will get by with one excuse of a forgotten check. But do this a second time and the system will red flag your account, name, address etc. Then you might say – well Christmas is coming up – MasterCard, the bank or the finance company won’t really notice. Wrong again. The system will flag you again. This time as more severe. Amazingly the whole credit system seems to have tentacles that share information – especially about bad creditors and debtors who owe money and are remiss on payments.

You may not think this is all a big deal – especially if you normally pay you bills on time. However now the system has picked up the consistency of your late payment and credit schedule. It’s as if you have a thousand nosy neighbors watching your home and front door for that girlfriend sneaking out late in the evening. Your poor payment history will be spread across the system to who knows where and to how many countless credit and credit reporting agencies.

The humor is that you may never know what is on the other side of the ledger so to speak. If your application for a loan or finance for a second auto is denied seldom will you receive any other notification or information than the denied claim? Information is supposed to be readily available – at least according to industry information – some say propaganda. If the information is that readily available – and readable to any layman what would be the value that companies would pay for ready access to it. You may say that the credit companies say that everyone is entitled to see their file. True – but are you going to tell your boss you need some time off to view your credit history since you are having trouble with your personal finances and having loan requests refused. Talk about a lose lose situation of a loss of your image of personal honor, integrity and .trustfulness on the job site and with your employer. In life most everything comes down to actual logistics. Then again you can request your credit history on the internet through thousands of firms who will provide these services online – for a fee. First of all is the information on your credit history – valid, up to date and accurate. For fun try a couple of free test probes at some of these sites. You are what you are and you ain’t what you aint. Many of these services have a worse reputation than you do so to speak.
No matter what information and credit information you place fill out online the same answers or answer will emerge. In order to receive accurate and relevant personal credit information most reputable sites will request identification and payment by credit card.
As they say lots of luck. Banks, finance and credit card companies will loan to people who need it the least – those with lots of money and excellent credit. If you had no credit problems why would you be searching out the reasons for your credit and finance applications denials? On top of that your credit card, finances and overdraft at the bank or savings and loan is most likely tapped out and overextended already.

In this day and age of computers and rapid communications a couple simple financial mistakes can lead to a real quagmire. It’s best to follow the simple advice of your grandmother - stay within your means. Don’t buy what you cannot afford. It is always best to pay cash.

http://www.articlefrenzy.com/Article/Pay-Your-Bills-on-Time--Maintain-Your-Credit-Ratings/128822

Euro Impact on the East European Countries and Banks

2007-11-16T03:54:00.000-08:00

The German central bank (the Bundesbank) estimates that more than one out of every three German marks circulates outside of Germany -- signifying billions of marks. The banks says the majority of them are in Eastern Europe and the territory of the former Soviet Union.
Because of the mark's stability, and Germany's role as a place of employment for Eastern European workers who send their money home, the mark has evolved into a de facto second currency in the lands to the south and east of Germany's borders.
Montenegro and Kosovo have even adopted the mark as legal tender. Other countries have pegged their currencies to the mark through currency boards. Bosnia uses a unit of exchange called the "convertible mark," which trades on a one-to-one basis with the German mark.
But the mark -- along with the other currencies of the European Union's 12-nation euro-zone -- is about to disappear.
On 1 January 2002, more than 250 million people in Western Europe will begin exchanging their national currencies for the euro. Older currencies and euros will circulate together until the end of February. After that, the national currencies will no longer be used.
That does not mean the currencies will be worthless. Central banks will continue to exchange them for euros for several years to come. But for all intents and purposes, Western Europe's national currencies -- including the mark -- will cease to exist.
Hans-Werner Sinn of Germany's Ifo economic research institute has looked into all aspects of the coming changeover. He says Eastern Europeans, like their counterparts in Western Europe, will eventually have to exchange their marks for euros.
"Clearly, these Deutschemarks [German marks] will no longer be useful in the long run. So people will have to bring the Deutschemarks in to their respective banks and exchange them into euros. That will have to happen in the spring of next year [by the end of the February deadline]."
Antti Heinonen, the director of banknotes at the European Central Bank, or ECB -- the institution that is coordinating the switchover to euros -- says that the change should not cause many problems for most Eastern Europeans.

But the currency's first challenge -- in Eastern Europe at least -- will be to replace the mark in people's minds and mattresses.

http://www.articlefrenzy.com/Article/Euro-Impact-on-the-East-European-Countries-and-Banks/130466

Filing Corporate Bankruptcy

2007-11-15T03:32:00.001-08:00

There are many questions raised when a company files for corporate bankruptcy. As an investor, people would like to what happens to the company, who would look into the interests of investors, and above all, if the old securities have any value left, or is the stock is turned into paste paper until the company is reorganized.

Companies that go out of business or try to recover from crippling debt are governed by federal bankruptcy laws. A bankrupt company, the "debtor," can use either Chapter 11 or chapter 7 of the Bankruptcy Code.

Under Chapter 11, the company is allowed to "reorganize" its business and attempt to develop into a profitable corporation. The company still functions on a day-to-day basis other than the fact that all important business decisions have to be agreed upon by a bankruptcy court.

Where as under Chapter 7, the company will stops all it operations and completely shut all its functions. The court assigns a trustee to "liquidate" (sell) the company's assets. The money so collect is then used to pay off the debt, which would take account both the debts to creditors and investors.

During a payment, the investors are paid first, due to their risk involvement. Bondholders have an advantage over stockholders since bonds stand for the debt of the company and the company has agreed to pay bondholders interest and to return their principal. Where as stockholders own the company, and therefore take on greater risk. On a good day, it is the stockholder who would make more money, but at the same time, as the company goes bankrupt, the stockholders bear to lose, as owners are last in line to be repaid if the company fails. Also remember that under Chapter 11, stockholders are still able to trade the stock, but under Chapter 7 the stock is worthless.

The other creditors are usually secured creditors that have low risk factors since the credit that they extend is usually backed by collateral. Collateral can be the mortgage or other assets of the company. They also stand to be paid first as the company files for corporate bankruptcy.

Filing Bankruptcy provides detailed information about filing bankruptcy, filing bankruptcy online, filing chapter 11 bankruptcy, and more. Filing Bankruptcy is affiliated with Free FICO Score.

Article Source: http://EzineArticles.com/?expert=Josh_Riverside

Florida Bankruptcy - Walk Away From Debt

2007-11-15T03:30:00.000-08:00

Florida bankruptcy laws try to provide relief to borrowers with a new lease of life provided they try to learn from their past mistakes and in future manage their finances effectively and more efficiently. In fact, it is a legal way to get rid of debts.

It is always better to seek counseling from lawyers when you in case unfortunately fall into a financial trap and are unable to repay your loan liabilities. Under the there are many ways you can avail to get protection and relief. In certain case if you don't have regular income due to unemployment or serious sickness or in some other similar situation, Florida bankruptcy laws do have provision to deal with such genuine cases with protection and can allow a person to be absolved from paying part or full debt liability. In Florida, most of the people file bankruptcy under chapter 7 and of bankruptcy code. However, majority file under chapter 7.But on has to furnish documentary proof that he has no assets to repay.

Moreover, filing under chapter 7 cannot seek relief in future under chapter 7 again for next six years. In fact filing bankruptcy under any chapter is not a panacea from falling into debts in future unless you reform and learn from your past follies and manage your finances viz-a-viz your income more efficiently and carefully.

Otherwise, there is always a chance you may fall into a more serious debt trap with no point of return. So be careful and cautious while filing bankruptcy and after it is a comfortable situation, you loose credibility with debtors and your credit rating as well. So always, take wise decision after fully realizing what is good for you. If you have any other option to fulfill your debt commitment that should be pursued first and this option should be availed last of all when there is no other way out. Always keep in mind while filing bankruptcy that you have through very complex court procedures full of hassles seriously damaging your social standing and reputation as an honorable citizen.

California bankruptcy, Michigan bankruptcy laws are somewhat similar to Florida bankruptcy laws with minor variations in exemptions limit depending upon the average income of people, their spending habits, economic level, percentage of cases filed under different chapters of bankruptcy code by people residing in these cities, otherwise by and large the laws are same as governed by federal court.

Debtips is a resourceful channel to make you finance literate and manage your personal finances. Bankruptcy is an unfortunate situation and can happen even to seasoned businessman or to a new entrepreneur. In US Bankruptcy is dealt under uniform federal laws and fall under chapter 7, 9, 11, 12, 13 of bankruptcy code. Florida Bankruptcy cases are generally dealt by courts under chapter 7 and 13.

Article Source: http://EzineArticles.com/?expert=James_Arther

Personal Bankruptcy Laws

2007-11-15T03:29:00.001-08:00

Individuals can file for personal bankruptcy as a last ditch effort when their credit reaches the limit. This helps them clear out a few debts by selling their assets and starting a whole new life without creditors beating at their door. The gives them an opportunity to start afresh without credit worries since creditors have no more right to press collection charges.

Presently, individuals can file for bankruptcy under Chapter 7 or Chapter 13. Chapter 7 involves liquidating all the assets to pay off the creditors. Chapter 13 involves registering a plan to pay of the creditors from the monthly wages of the debtor within a specified amount of time. However, new laws passed by the President in 2005 might make the options for filing the case under Chapter 7 a bit more narrow and might force most individuals to file a bankruptcy case under Chapter 13 instead.

Chapter 13 requires the individuals to provide proof of income, as the whole law is based on the individual’s steady income. If the debtor fails to pay the monthly credit amount, the case might be dismissed from the court and will require the individual to file for bankruptcy all over again.

When an individual files for bankruptcy, it does provide him with a fresh start, but the credit bureaus keep records of the bankruptcy details and this might affect the debtor's credit rating for the next 10 years. However, some banks currently offer a new kind of credit card that requires some initial security payment that will help build up the credit rating so that things are almost normal by two to three years.

The new law also requires the individual to take up credit counseling at least six months before filing for bankruptcy, which means the individual has to go through a licensed lawyer to file the case.

Bankruptcy provides detailed information about bankruptcy, bankruptcy attorneys, bankruptcy faqs, and more. Bankruptcy is affiliated with New Bankruptcy Laws.

Article Source: http://EzineArticles.com/?expert=Eddie_Tobey

Valid Reasons To Consider Filing Bankruptcy

2007-11-15T03:28:00.001-08:00

Nobody wants or plans to file bankruptcy, especially with the recent drastic changes in the bankruptcy law which makes it more difficult or even impossible for people in certain situations to even consider it. Bankruptcy is a personal thing and is also often a very emotional thing, so it is not something to enter into without a very thorough examination of your bankruptcy options and alternatives.

Consumers who find themselves in the undesirable situation of having a mountain of debt may be considering filing bankruptcy. This is not something that is a personal reflection on the person, since more often than not, this is not a sign of any type of financial mismanagement, but is more typically found to be something that was completely out of the control of the consumer, such as a job layoff when it was not expected, unexpected high medical or hospitalization bills that were not covered by one's health insurance, a hotly contested divorce situation, or many more reasons too numerous to list here.

Although many times consumers feel that bankruptcy is a sign of weakness or a sign of defeat, many times it is the most viable option available under the circumstances. Thousands of people file every year, even though the bankruptcy laws have changed in recent years, making it much more difficult to file than it used to be. Bankruptcy can also be personally embarrassing, although it should not be.

It is interesting to note that approximately 30% of consumers filing for bankruptcy are doing so because of a divorce situation. Especially for women, even though more women work outside the home these days than ever before, many women after a divorce find themselves with more bills to pay off than their income allows. In a divorce situation, the marital debt is equally divided between the spouses. Most of the time, that debt is on credit cards that carry a high interest rate, and missing only a few payments on that, combined with the late fees assessed, can create a mountain of overdue debt that seems insurmountable.

In the case of some type of major or catastrophic event such as a major surgery or hospitalization, especially when such medical costs are not covered or have exceeded the limits of one's health insurance, this can leave one with huge bills and no real hope of ever getting them paid off. For a major medical procedure, the costs can exceed $100,000 before you know it as well as much higher, and even at low or no interest assessed, this is something that will cause many people to consider bankruptcy to resolve.

Another common reason for filing bankruptcy is young people who get in over their financial heads with credit cards and student loans while they are in college. This is borne out by the fact that about 10% of people filing are under age 25. In this situation, it is important to note that while bankruptcy could provide relief for the credit card debt, federal student loans are exempt from being discharged by bankruptcy, so often this does not help these people.

You want to make sure you understand bankruptcy law as good and thoroughly as possible. The laws have changed drastically and filing is no longer a "do it yourself" project. The money you spend on a qualified lawyer can pay you back in spades by not making the bankruptcy more painful than it needs to be, as well as offering advice as to alternatives that you may not have considered that would be far less painful.

Article Source: http://EzineArticles.com/?expert=Jon_Arnold

Stopping Foreclosure NOW - Chapter 13 Bankruptcy

2007-11-15T03:26:00.000-08:00

Foreclosure proceedings can be stopped instantly by filing for Chapter 13 bankruptcy, the home saver, but there are the following dangers, including losing your home to con artists as well as to your creditors.

The nightmare of foreclosure is the dark side of the American Dream. The recent past provided people who had long been shut out of home ownership the opportunity to fulfill that dream. It was done through a combination of rising home prices, low mortgage rates and fancy financing know as subprime. Everyone wanted to be invited to the party and the subprime lenders made sure that as many as possible were included.

In my previous article, To Avoid Foreclosure, I discussed all of the standard ways recommended by HUD, mortgage lenders and financial advisors, on how to stop or avoid foreclosure. This article explores stopping foreclosure by filing for Chapter 13 bankruptcy.

Bankruptcy - BEWARE - Possible Hazards Ahead

This sure-fire method of stopping foreclosure dead in its tracks is being touted far and wide as the way people near or over the edge of foreclosure can stop foreclosure quickly. The stopping foreclosure part quickly is true. What is not being told to people in this desperate situation is that stopping foreclosure by declaring bankruptcy may save only a fraction of the equity in their homes or worse.

The worse is that scam artists are using the come on of stopping foreclosure by filing for bankruptcy to steal the equity.

Here is how they do it:

These scammers convince homeowners who are in trouble to file for Chapter 13 bankruptcy. They tell the homeowner that this filing is only for stopping the foreclosure proceeding. This is the nugget of truth in the mine that has been salted with false hope.

Then the scammers convince the homeowner to sign over the home to them and rent it back, "until they can get back on their feet."

This is the danger zone, because if the homeowner has not been able to make their payments to the mortgage lender, how are they going to be able to make the rent payments to the scammer?

"Magically" the house ends up being owned by the scammer and the homeowner, who thought he was in trouble before, now has been thrown into a deeper hole.

Stopping foreclosure by declaring bankruptcy can be legitimate. Chapter 13, really called the wage earner's plan is nicknamed "the home saver," because filing for it stops foreclosure proceedings and allows the homeowner to stay in her or his home.

Here is how Chapter 13 works to stop foreclosure:

A working person who has unsecured debts of less than $307,675 and secured debts less than $922,975, is eligible to file for relief.

The filing, in the Bankruptcy Court where the filer resides, has to include information about income and expenditures as well as assets and debts. This information has to be detailed and supported with tax returns. The filer also has to file a certificate showing he or she has received credit counseling. There are fees totaling $274.00 for filing which can be paid in four installments.

As soon as the petition is filed, the foreclosure proceeding is automatically stayed. This is not stopping foreclosure forever. It only stays the foreclosure, allowing a "reasonable" time for the homeowner to bring his or her past-due payments current.

Then there are meetings in court and the filer has to provide a payment plan. This plan must provide for full repayment of the debts over a period of three or five years. (If the filer's income is below his/her state median, the period is three years. If it is above the state median income, then the five year period applies.)

Stopping foreclosure by filing for Chapter 13 bankruptcy can save your home if you are working and can make all of your payments according to the "plan." If you fall behind, however, the foreclosure will probably be restarted.

Article Source: http://EzineArticles.com/?expert=Steven_Shanin

Bankruptcy Credit Report - You Questions Answered

2007-11-15T03:24:00.000-08:00

Bankruptcy Credit Report - You want to avoid bankruptcy at all costs - not only will you be left high and dry financially it will also take a devastating toll on your Credit Report, translating in a 7 to 10 year time period to get back on your feet. Exactly what damage will my Credit Report take and what are my options?

How long will it take to really get back to a secure financial position? Well that depends on quite a few factors so lets go through each one and try and match your situation. Firstly, when you file for bankruptcy (chapter 7 and NOT 13) all you debts get eradicated and you money owed to creditors get taken to zero. It's important to no that not ALL your debts will be completely erased - only those debts to Creditors. You will still have to pay money for things such as: student loans; criminal fines and penalties, forfeitures, taxes, debts arising out of willful misconduct and or malicious misconduct by the debtor, even spousal and child support, liability for injury or death from driving intoxicated, and non-dischargeable debts from a prior bankruptcy. You also need to note that when assets are being sold that there are certain assets that are non-exempt. This includes property such as: A second home - like a holiday home, Family heirlooms, a second car or truck, expensive musical instruments, collections such as stamps and coins, all investments such as cash, stocks, bonds, and bank accounts.

It's interesting to note that you might be able to get a loan shortly after you file for bankruptcy, because of the simple reason that now you've filed for bankruptcy then all your debts are returned to zero. So when you approach creditors they will have a look at your Bankruptcy Credit Report and note that now you have a very low debt. But it's not quite as simple as that you still need to show a solid and steady income stream and you need to have opened a few accounts, maybe some credit cards account and have built up a repayment history - showing that you can pay back creditors and debts. It's quite logical to see that if you start building up multiply bankruptcies then you will find it extremely difficult to get future loans - so don't get into a habit of filing for bankruptcy.

What are the alternatives to filing for bankruptcy? First make sure you visit experts that will look at ways to get out of having to file for bankruptcy - these include Consumer Credit Counselor (CCC), if you prove to your creditors that you are seeking help form these professional they will in most cases stop debt collection actions giving you a temporary reprieve form the pressure of having to make payments that you see no way of making. Look at your debt and work out what expenses you can live without - remember that your accommodation and transport are the most essential items so try and cut other expenses first.

To find out more about Credit Reports be sure to check out www.credit-reporter.net

Article Source: http://EzineArticles.com/?expert=Justin_Fox

Is Bankruptcy Right for Me

2007-11-14T03:04:00.001-08:00

There are many ways in which bankruptcy can be right for you, and many issues that can lead you on this path. Bankruptcy can wipe your slate clean, either through straight bankruptcy or a reorganization of your debts.

If your home is risking foreclosure, bankruptcy can stop this from happening and put a payment structure in place for you to pay off your arrears. Bankruptcy can get your car or other property returned to you if it has been repossessed by a creditor. Large medical bills, either on their own or combined with a loss of employment, can create a nearly impossible situation to climb out of. Bankruptcy can help you out of this and possibly reduce or wipe away your medical bills.

Bankruptcy can stop creditors from harassing you, especially if they are pushing the boundaries of decent behavior. It can prevent your utilities from being shut off or restore them if they are already off. Although your student loans will not be eliminated, bankruptcy can help consolidate these debts and allow you to pay them off in a reasonable manner. It will end wage garnishment, allowing you to purchase life’s necessities, and help you challenge fraudulent creditors who are trying to take more than you owe.

Many of these issues can overlap in your particular situation and bankruptcy may be the right way to re-start your financial life with a clean slate.

http://www.refresharticles.com/articles/bankruptcy/Is%20bankruptcy%20right%20for%20me.txt

Getting Loans after Bankruptcy

2007-11-14T03:02:00.000-08:00

There are many things that are challenging to succeed at in this world, and finding approval for loans after bankruptcy can be one of the hardest. Bankruptcy is something that is going to stay on your credit report for as long as ten years, which makes it a very difficult stain on your credit rating to dig out from underneath. However, there are some steps that you can take to increase your odds of applying for and being accepted for loans after bankruptcy.

Important Factors to Remember when Applying for Loans

Remember that when it comes to loans after bankruptcy, you are going to be dealing with bankers one on one. A lot of the bigger banks have mathematical equations that they use to decide whether or not you are going to be able to get loans after bankruptcy, but some of the smaller banks are still willing to sit down and talk to you. If you have gone through bankruptcy in the past, but are ready to put your credit history back on sound footing, your best chance to get loans after bankruptcy is to sit down with the people who make the decisions and talk to them.

You should be prepared to discuss your bankruptcy and the reasons behind it openly and honestly, and what steps are in place to ensure that it won’t happen to you again. If you are able to convince the bank manager that you can be trusted, and you have the right documentation to show him that will support your statements, there is a good chance that you are going to be able to get loans after bankruptcy.

An important part of getting loans after bankruptcy includes having collateral in your name that you can put up against a loan. If you have just gone through bankruptcy, there is going to be a chance that your assets have shrunk considerably. If this is the case, the first step to reestablishing credit will be to regain some of those assets in your own name. This process may take some time and patience on your part, and you might be surprised at how hard you have to work hard to rebuild your credit, but rest assured that it is something that can be done quite. Building back your positive credit rating and your asset base is a great way to become eligible for loans after bankruptcy. If you are successful in finding someone to give you loans after bankruptcy, you will be on the road to a positive credit rating and a sound financial picture once again.

http://www.refresharticles.com/articles/bankruptcy/loans%20after%20bankruptcy.TXT

The Difficulty in Medical Bankruptcy

2007-11-14T03:01:00.001-08:00

As the world becomes more and more unhealthy, medical bankruptcy becomes more likely as people fight to cure various diseases and ailments associated with their lifestyle. Unforeseen medical bills can also wreak havoc on individuals that are unable to work while they are seriously ill. This may also be the case for individuals who have health insurance. Medical bankruptcy may be treated with a bit more sympathy by some courts, depending on the situation of the individual.

Examples of Groups Filing for Medical Bankruptcy

People who are 65 and over are more likely to suffer from medical bankruptcy than younger and healthier age groups. It goes without saying that the body becomes more prone to illness the older that we get. This makes it inevitable that as we get older and can longer work to pay the bills, we may be faced with medical bankruptcy in the case of a serious illness, if we have not taken preventative measures prior to the diagnosis.

Another group which is likely to file for medical bankruptcy is that of young single mothers. If their spouses have abandoned them and their children, and do not pay any child support, the mother will be left to pay these high expenses by herself. It is a difficult situation for any parent who has a sick child to care for, and if it is the parent who is sick herself then there will be no one to earn the money to pay the bills.

Low wage earners are another group that may find themselves filing for medical bankruptcy. At times it may be difficult to find jobs that can support all of a family’s needs, so finding the money for unexpected medical bills can be a nearly impossible task for this group. Poor education and lack of practical skills can be attributing factors to this problem, and will require further investigation when the time arises.

Some people will file for medical bankruptcy simply because the medical systems are not willing to work out any payment schedules for them to repay their debts. Cases such as these have risen steadily over the years, and are now quite a common occurrence in bankruptcy courts around the country. Since many folks do not have large amounts of money readily available to pay mounting hospital costs, the only choice for some is to declare medical bankruptcy.

If you fall into any of these categories, you may find the claiming medical bankruptcy is the best choice for you to get out from under the weight of your bills. This bankruptcy is normally seen in a more sympathetic light than others by the courts and lenders, since the circumstances are generally unforeseen and unavoidable.

http://www.refresharticles.com/articles/bankruptcy/medical_bankruptcy.TXT

Mortgages and Bankruptcy: A Few Simple Steps

2007-11-14T03:00:00.000-08:00

Most often a person will only file bankruptcy after having exhausted all other options. However, there are certain key reasons that will affect individuals and cause them to file for bankruptcy, which include high debts as well as long non-payment history. Keep in mind that it is a lot harder to get a loan after bankruptcy has been filed, which can affect your ability to purchase a much needed house or car during the ten years after the filing, when the bankruptcy can appear on your credit history.

Stay Positive and do not get Rattled

Mortgages and bankruptcy need not be an insurmountable problem, because there are methods for working through these obstacles. Making an appointment with a credit counselor that provides assistance in getting a mortgage after bankruptcy is a good option. Getting a mortgage after bankruptcy is possible if the person has a positive outlook, and plenty of persistence and patience.

Mortgages and bankruptcy are not conditions that mutually exclude one another, since a bankruptcy on the credit history can affect your ability to get a mortgage loan. One way around this is to provide your prospective lender with a letter of explanation regarding the circumstances of your bankruptcy. Even though the interest rates are higher, lenders do take the initiative in making it easier to obtain a mortgage after bankruptcy. They may consider the debtor’s repayment history, or the circumstances regarding the bankruptcy. For example, a sudden and severe health issue that contributed to the financial problems might make it easier to get a mortgage after bankruptcy. Getting expert advice from an attorney regarding mortgage and bankruptcy is recommended, as well as selecting the right mortgage provider that will be willing to work with your individual situation.

With online communications and electronic commerce, it has become much simpler to research and find available financial options regarding mortgage and bankruptcy. With e-mails and toll-free numbers, a debtor can get the facts pertaining to mortgage and bankruptcy, and customer care executives will always have the latest information. Most credit counselors will enjoy good relations with mortgage providers and will be of help under such circumstances.

In the final analysis, bankruptcy is no doubt devastating to personal finances; however, one can still get back on track since bankruptcy does not last forever and rebuilding credit should go a long way in getting a mortgage even after bankruptcy. The debtor should work to rebuild his credit rating, prepare the mortgage application and comparison shop for the best mortgage loan. Mortgage and bankruptcy can easily be overcome with these simple steps.

http://www.refresharticles.com/articles/bankruptcy/mortgages_and_bankruptcy.TXT

Understanding New Bankruptcy Laws

2007-11-14T02:55:00.000-08:00

New bankruptcy laws are always being proposed in order to protect both people and creditors. Most proposals usually die in committee before ever being voted on by the full congress. Recently however, there have been some new laws that have sided with the creditors.

Understanding new bankruptcy laws is something that the average person might not be able to do. For the best and most accurate information available, a bankruptcy attorney should be sought out. They have the most accurate knowledge of current laws and a great understanding of laws being considered.

Most people cannot even begin to understand all of the new bankruptcy laws because they are extremely complicated. It’s really amazing that the attorneys can keep up with all of it. As the laws change, they become more and more complicated. Part of the problem is that many who make the laws are attorneys themselves.

They try to enact new laws without any loopholes. The new laws become so confusing because of the verbiage used to prevent individuals from taking advantage of bankruptcy laws. There are many sources available to people on the internet that try to make the law easier to understand. The only problem with this is that the information provided on the internet might not be completely correct.

New Bankruptcy Laws and The Public

Lately there have been new bankruptcy laws that have been passed to protect creditors from being taken advantage of. There is now more of a burden being placed on the people who are filing bankruptcy. No longer can people file bankruptcy as a convenient way out of not paying ones bills.

The new bankruptcy laws make it more difficult to cheat the system. There will always be people who need the coverage that bankruptcy delivers. When bankruptcy is needed for people in trouble, nothing has changed to make it harder. With that being said, people must show the need for bankruptcy by opening up for review the people’s finances.

If people are in real need of bankruptcy protection then there is nothing to worry about. What this does is slow down or stop others who might otherwise try to take advantage of their situation. Lastly, if people begin to think that they are heading towards bankruptcy, they should contact there attorney to see what can be done without filing. The attorney can determine if the people can avert bankruptcy or not.

http://www.refresharticles.com/articles/bankruptcy/new_bankruptcy_laws.TXT

Decision to Use a Bankruptcy Lawyer

2007-11-13T03:14:00.001-08:00

Filing bankruptcy may be the most stressful and difficult decision you will make in your life. There are many financial stressors right now, and you may find that looking for a lawyer will only put more pressure on your pocket book. While it is true that legal fees tend to be high, the decision to use a bankruptcy lawyer is a good one, since in the long run it will probably be less expensive than not using a bankruptcy lawyer. There are many reasons why one should make the decision to use a bankruptcy lawyer than deciding to go it alone in court.

First, the recent bankruptcy laws have changed and deadlines are now stricter. If you fail to submit the correct paperwork on time, your case could be dismissed. The legalese involved in submitting documents may be difficult for the average person to understand, particularly if you are under significant stress. Making the decision to use a bankruptcy lawyer may prevent your case from being thrown out because of an error.

The decision to use a bankruptcy lawyer may not be as costly as you imagine. Obviously, bankruptcy lawyers are used to dealing with people who are suffering from financial difficulties, and it isn’t hard to find a reasonably priced bankruptcy lawyer. However, this doesn’t mean that you should find the cheapest one. Investing in a good attorney who specializes in bankruptcy cases is part of making the important decision to use a bankruptcy lawyer.

http://www.refresharticles.com/articles/bankruptcy/credit_cards_after_bankruptcy.TXT

How to Manage Credit Cards After Bankruptcy

2007-11-13T03:13:00.001-08:00

When people get credit cards, many think that they can purchase anything they want practically for free, that they can just “charge it on the credit card” and worry about paying it later. However, these same people often spend their paychecks recklessly on everyday items and are not able to pay their regular bills, so they now have to think of how to manage their credit cards after bankruptcy.

Monetary Caution is Needed with Credit Cards After Bankruptcy

The first thing that people should do with their credit cards after bankruptcy is evaluate how many they really should have in the first place. While some people carry many credit cards, it is a good idea not to have more than two. Thus, aside from two, people should get rid of their lesser important credit cards after bankruptcy.

Of course, before getting rid of the credit cards after bankruptcy, there is the issue of being able to actually pay them off beforehand. It all has to do with the credit that the person has at the time. For example, if the person has good credit, then the credit card company might set up some sort of a payment plan to help the person pay off their debt.

However, if the person has horrible credit (after getting a credit card, since a person needs to be pre-approved to get one in the first place) then the credit card company might treat the bankruptcy situation differently. In this case, you will need to call the customer service of each credit card company and enquire about their payment options.

When it comes to consolidating your credit cards after bankruptcy, the best way to do that is to take the credit cards that have the most money on them and pay them off little by little until there is not debt on them. Next, take the credit cards that were not used at all (if applicable) and pay them off right away. It is best to focus on the higher-debt credit cards.

Making sure that your credit cards are still usable after your bankruptcy is something that you will have to find out, as it is determined by each person’s unique situation. It is important to realize that you might need a financial planner to help get you out of debt. With the proper planning, you are sure to figure out the right ways to spend your money.

http://www.refresharticles.com/articles/bankruptcy/credit_cards_after_bankruptcy.TXT

Bankruptcy: The Implications

2007-11-13T03:12:00.001-08:00

Those with debt problems too often subscribe to groundless myths and hearsay without ever understanding the law, and therefore the implications, of bankruptcy. Therefore, those with unmanageable debt should be aware of a few key facts before filing for bankruptcy. After all, how else will they know what life will be like after declaring themselves bankrupt? Let us look briefly at a few implications of liquidation.

Despite common belief, bankruptcy will not necessarily prevent you from getting credit. In today’s competitive lending market there are many lenders who are willing to take a risk in offering credit. Of course, the limit will be lower than usual, and the interest rates may be higher than before, but applying for credit after bankruptcy need not be the wild goose chase it’s made out to be.

What about home ownership? Is it possible to get a loan or mortgage after bankruptcy? Well, many lenders have been known to approve a mortgage to bankruptcy debtors in as little as 18 months after their liquidation. Again, there are lenders who are willing to take the risk, and many are willing to look at bankruptcy as a sign of your past problems with money, not as a warning about your future.

Finally, what about your pension savings? How will they be affected by your bankruptcy? Hopefully, not at all. Most pensions and savings plans are exempt from your estate upon bankruptcy, so they can’t be liquidated to repay your debts. However, there are exceptions to this rule. Outstanding tax liens are not generally forgiven after bankruptcy, so any taxes owed may be attached to your 401K, IRA, or other savings plan. You should bear this in mind before considering bankruptcy.

In any case, the best advice is always to seek professional counsel. A dedicated financial advisor can let you know all the facts about bankruptcy, as well as its implications. Only then can you make the right decision for you.

http://www.refresharticles.com/articles/bankruptcy/Bankruptcy%20-%20The%20Implications.txt

Trauma of Bankruptcy

2007-11-13T03:11:00.000-08:00

Nobody likes to admit defeat. For some people, filing bankruptcy means just that. It means that they have failed at repaying the debts that seem to be mounting daily. The whole idea of filing bankruptcy is an ominous one that often has a negative stigma attached to it. Every year, many Americans face the trauma of bankruptcy.

The trauma of bankruptcy has many facets. First, it affects people financially. Many times, it means having to give up a vehicle or even a home that you can no longer afford. It may mean you’ll no longer be able to secure loans easily since the trauma of bankruptcy can follow you for years to come.

Along with the financial trauma of bankruptcy comes the emotional trauma of bankruptcy. For many people, bankruptcy was something they tried to avoid at all costs. They fought diligently to pay off the bills in order to avoid filing bankruptcy, and in the end were unsuccessful. The feeling of failure is something that affects a person profoundly.

If you are facing the trauma of bankruptcy, be comforted by the fact that filing bankruptcy doesn’t have to be a negative experience. For some people, it has been just the opposite. It has been a burden lifted from their shoulders as they are able to regain control of their financial obligations with a fresh new start. It means facing the future with a clean slate and no previous financial obligations. For many people, it can be a wonderful new beginning.

http://www.refresharticles.com/articles/bankruptcy/The%20Trauma%20of%20Bankruptcy.txt

Using a Bankruptcy Lawyer

2007-11-13T03:10:00.001-08:00

Many people think they can represent themselves in court when they file for bankruptcy, rather than hiring a bankruptcy lawyer. This is a mistake many make, and it can have far-reaching consequences. A bankruptcy lawyer has specialized information that the average person lacks, and knows the details of bankruptcy law, which has changed in recent years. A small error in paperwork, for instance could lead to one’s case being dismissed. This is less likely to happen if one is using a bankruptcy lawyer than going it alone.

Some believe that they can get around problems with paperwork by hiring a paralegal rather than using a bankruptcy lawyer. This is a misconception, because paralegals charge exorbitant fees just to prepare documents, and unlike bankruptcy lawyers, they will not represent you in court. It is much better to invest the money in using a bankruptcy lawyer than hiring a paralegal who will not guide you through the process of filing bankruptcy.

When you have realized that using a bankruptcy lawyer is by far the best option when filing bankruptcy, you will have to do some research to find out which bankruptcy lawyer is for you. It is perhaps worthwhile to visit a bankruptcy court during a trial to see which lawyers you want to work with. You will want to hire a bankruptcy lawyer whose specialty is bankruptcy, since the changes to bankruptcy law are complicated. Finally, you will want someone with experience and yet, is not too busy to pay attention to your case and to take care of your needs.

http://www.refresharticles.com/articles/bankruptcy/Using%20a%20Bankruptcy%20Lawyer.txt

Reality Check Regarding Student Loan Bankruptcy

2007-11-12T03:16:00.001-08:00

Up until 2005, there were many more options for students who decided to declare bankruptcy in order to avoid repayment of their student debt. However, borrower's bankruptcy options on student loans have been cut to very few. Changes in the Bankruptcy Code in late 1998 made most student loans non-dischargeable, which means that even if a student filed for bankruptcy, he/she would retain the loan and have to repay. This is regardless of the age of the loan unless the borrower can prove "substantial hardship".

Hardship means that repayment will create undue hardship the repayment of the loan will create an undue hardship on the debtor/borrower and his family. This is defined as the debtor cannot maintain a minimally adequate standard of living and repay the loan with proof being the conditions are such that repayment and living at the minimum standard are impossible and that this situation is unlikely to improve substantially over time. Many undue hardship cases are compared to the 1987 case argued before the U.S. Supreme of Marie BRUNNER, Appellant, v. the New York State Higher Education Services Corp., Appellee.

There are less drastic methods besides student loan bankruptcy when you run into problems financially. Aside from bankruptcy, a defaulted student loan can be rehabilitated, consolidated, stretched out or discharged if the default is because of disability. If it is not defaulted, then ask for a forbearance or deferment.

If the borrower does reach the "wage garnishment" stage, some small comfort can be taken in the fact that federal regulations limit the amount of the student/borrowers garnishment to 10% of the total amount borrowed. Before reaching that stage, other options are available including contacting various agencies who can offer information on workouts and student loan consolidation programs for loans in trouble, including a program of repayment based on income. Nolo Press and EdFund have information on student loans. Carreon & Associates provides information defaulted loans and Consumer reports provides facts on graduated payments.

While there are many reasons why student loan bankruptcy might seem a viable option, in today's world, it should be the last and not the first resort. In point of fact, the only thing that it will affect in terms of debt reduction and the student loan is that it will reduce the borrowers other debts making it easier to repay the student loan. As a result, unless there is no other option available, student loan bankruptcy is not a good way to go unless all other bills and creditors involved need to be held off. If the sole purpose of filing bankruptcy is to avoid repayment of student loan debt, it is not the correct course of action.

Article Source: http://EzineArticles.com/?expert=Rob_Hickey

7 Scams To Avoid When Recovering From Bankruptcy

2007-11-12T03:15:00.000-08:00

Any bankruptcy lawyer worth his fee and weight in gold, knowledgeable and experienced in the field, application, specialty sector of the market, will tell you that the intricacies and complexities of the personal bankruptcy filing process, business bankruptcy or chapter 7 or 13 bankruptcy procedures, are nothing to tangle with lightly. It is not a welcoming, inviting world for newbies and novices, or those who are going the journey and challenges alone. Not only that, it is made more perilous by criminal elements taking advantage of fraud, scams and crime, to exploit, steal, lie and get what is not rightfully their to ask or take, by some scam or scheme.

Bankruptcy law requires a fair amount of scrutiny, scruples and wise discernment, especially during the recovery phases, when there are many unscrupulous elements and exploiters out to make a quick buck, off the misfortunes, desperation and angst of those who have faltered, fallen and could not successfully stave off or avoid bankruptcy. To them any straw or glimmer of hope seems worth embracing, even if it means taking a risk, against all odds, believing in something so ludicrous that someone in different circumstances might just see right through it, without any difficulty, but they do, can not or do not want to, do not care or have no choice and are taken advantage of, lied to, stolen from and left devastated with and by yet another setback.

Utilizing the specialty services on offer in the realms and arena of the big league bankruptcy attorney California talent-pool or bankruptcy Los Angeles specialist practitioners, might cost you some disbursements and fees down the line, when assets are liquidated, bills settled for quality and comprehensive bankruptcy services rendered and delivered. However, it will be totally worth it to protect you against some of the scams, fraudulent practices and outright misleading out there.

Do not be merely one more or another statistic, be taken advantage of, sign anything until you know and verify whom you are dealing with, what is at stake, check them with the better business bureau. If you have to and retain a qualified, licensed and experienced attorney bankruptcy law expert and insider, to handle all aspects of your filing, case and recovery, do so. You will not regret it.

Home equity loan bankruptcy candidates and prospects are especially vulnerable, as they are hooked into signing away their most prized possession and asset, their home!

Many online, fly-by-night, fronts and criminal rings tap into this ‘hidden’ market to take advantage of exploiting those desperate for a bankruptcy loan, look for financing for cars, homes and other ventures, in the post-filing bankruptcy phases and stages. (These can typically last up to 7-10 years on a credit report, affecting access and credit ratings, scores negatively. They then step in, looking like the ‘heroes that save the day, at exorbitant rates and terms, getting people to sign away their life savings, pensions, equity rights and assets, from a position of powerless, hopeless, despair and desperation, turning out to be the would-be thieves, loan-sharks and criminal wolves in sheep’s-clothing that they really are, just out to make a quick buck and take what does not legally belong to them.

One of the most common bankruptcy form offenses and misleading out there, is the purchase of a falsified, fraudulent, inaccurate, or false credit score. This is actually breaking the law and a crime that you can be prosecuted for, so avoid this practice in its entirety.

If you are an unfortunate candidate for filing bankruptcy, or you have gone through the process, protect your interests and well-being, not falling victim to identity thieves, loan sharks and unscrupulous opportunistic lenders, who want to exploit your circumstances and unfortunate fate, turn of events and slow, painstaking recovery.

In the current realty markets, with all the foreclosures, some markets are especially vulnerable, think of the seniors in Florida bankruptcy processes, at risk to lose their homes and life savings. Those after hurricane season, natural disaster left with nothing but bad debt and no options, or those with simply too much credit card debt, who opt to get representation in the sunny state from a reputable Florida bankruptcy lawyer, to handle all aspects of it, only to find that they have been sold down the river, by someone posing to be what they are not.

There are lots of money to be made in the cadres and halls of after bankruptcy recovery type markets, especially now in this downturn type economy that we are facing.

#1: There are bankruptcy car loan schemes, after bankruptcy car loan financing at exorbitant rates, that promises the world, for an arm and a leg and then some, making the real market for car loan after bankruptcy more complex than it has to be, for those recovering from bankruptcy themselves, making debt relief seem even more unrealistic than ever.

#2: There are emails and spam that enter your mailbox, (spammers), enticing you to consolidate your bills into one monthly payment without borrowing; stopping all credit harassment, foreclosures, repossessions, tax levies and garnishments; or wipe out your debts. These are then offered through the means of declaring bankruptcy, without the candidate or prospect being told that’s what it is. It is a last resort, not a quick fix strategy for everyone. Take care and be cautioned to pay special attention to all the long-term negative impact on your creditworthiness of these types of steps, filings and processes. There might also even be attorney fees that you will end up being responsible for and footing the bill. Read the fine print before signing anything and know whom you are dealing with.

# 3: Home equity, home collateral type loans are also being exploited right now in the uncertain, downturn, foreclosure, over-extended mortgage market we are in. This leads to making some extremely gullible, desperate and an open target to be taken advantage of, by criminals that approach them with ‘creative’ short-term financing, that only digs the hole of debt deeper. This results in owners losing the equity or deeds to their homes, being taken advantage, especially true and sad of those facing the challenges and obstacles so common surrounding this financial situation. No real solutions, just more heartache, debt and ruined credit, stolen identity and worse.

#4: Then there are the companies offering bankruptcy credit repair services under the guise to get your information, financial details, to ruin your credit, steal, conduct crime and leave you to sort out the mess and aftermath. There are no quick and easy ways to clean or wipe out a bad credit report; delete your bankruptcy record or create a new identity using a TIN or business tax number for example. These are all fraudulent practices. Remember, if an offer sounds too good to be true, in all likelihood it is or will prove to be down the line.

#5: Offering solutions that are downright criminal, but does not sound that bad. Getting a fake identity, effectively concealing any/your bankruptcy is against the law. It is a crime for which you can be prosecuted. Getting an Employer Identification Number (EIN) that you will use in your credit application instead of your social security number actually proposes fraudulent intent, which the dress up as a great way to get your life and finances, debt, credit rating back on par – they forget to mention that you might go to jail in the process (as this is a crime)

#6: Bankruptcy foreclosure fraud scams, taking advantage of yet another loophole in the system identified as many as five different kinds and rings of bankruptcy fore-closer type scams, in the L.A. area. This is but one and a recent example of how opportunistic these types of practices can be. There are trends in the market to file for bankruptcy to delay or defraud creditors, home lenders, without the clear intention and purpose to actually see it through and adhere to the requirements for obtaining a bankruptcy discharge or completing a repayment plan.

#7: Other scams to look out for are ways others get you to part with the little that you do have, pay off creditors that do not matter (taking the money, never paying your bills). NEVER pay anyone upfront money, or funds in advance. Do not give out any personal or financial information with which you do not feel 100% confident and comfortable.

There are exploiters and abusers of the processes too, both debtors and creditors trying to obtain more than they are entitled to under the Bankruptcy Code. Do not get roped into this by so-called professionals professing and advocating maximizing the retention of assets in bankruptcy, conceal earlier crimes, maximize profit, while leaving town with your riches and precious little recourse that you had left, taking with them means, opportunity, reputation and hope.

Article Source: http://EzineArticles.com/?expert=Alexander_Wennstrom

How To Avoid Bankruptcy

2007-11-12T03:12:00.000-08:00

In many cases, bankruptcy can be avoided if the habits that lead to one filing bankruptcy are curbed early on in life. It is never too soon for individuals to learn how to avoid bankruptcy.

People in the United States tend to live on credit quite a bit. Many individuals feel pressured to keep up with neighbors, friends and family and end up overextending themselves on their credit cards. Unfortunately, credit card lenders are pretty indiscriminate as to who they issue credit. There are hundreds of thousands of credit card companies in the United States today. And once someone gets one credit card, chances are they will begin to see many offers coming through the mail for more credit.

This can be tempting, especially for younger people. A good percentage of people who file bankruptcy in the United States each year are young people recently graduated from college. In addition to student loans, college students often use credit cards for everything from pizza to books, with the intent to pay off the debt once they graduate and get a job. Hard reality sets in when they realize how long it will take to pay off the debt mounted on their credit cards, especially as it continues to accumulate interest at a high rate. Still, college students are a prime target of credit card lenders. And many of these young people are handling credit for the first time in their lives. It is very easy to let it get out of hand.

How to avoid bankruptcy? Individuals must learn, early on, to live within their means. This is especially true for young people. Parents should teach children early on how to use credit in a responsible way. College students should limit themselves to one credit card with a low balance, to be used just for emergencies.

Another way how to avoid bankruptcy is to use debit cards instead of credit cards. Debit cards are usually offered by banks and the money is taken directly from your checking account. Because most debit cards usually have a VISA or MASTERCARD logo, they can usually be used in the same places as a credit card. Only the funds are available in the account, not owed.

Individuals who want to learn how to avoid bankruptcy can also take seminars and classes on financial management. Here they can learn which items are wise to buy on credit (real estate) and which items to avoid buying on credit (vacations) as well as investment strategies.

Living within your means and only buying things you can afford is one way how to avoid bankruptcy.

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Article Source: http://EzineArticles.com/?expert=George_Wood

Common Misconceptions About Bankruptcy

2007-11-10T03:23:00.001-08:00

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

Bankruptcy Alternative - There Are Ways to Pay off Your Credit Card Debts

2007-11-10T03:22:00.001-08:00

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

Filing Bankruptcy Online - Simple and Convenient

2007-11-10T03:21:00.000-08:00

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.

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Corporate Bankruptcy - Reorganize Debts, Avoid Bankruptcy

2007-11-10T03:20:00.000-08:00

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
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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.

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Anticipated Changes To The Federal Bankruptcy Laws Maybe Pending

2007-11-10T03:19:00.000-08:00

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/

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Alabama Bankruptcy - 3 Facts You Must Know

2007-11-10T03:18:00.000-08:00

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.

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Bankruptcy Chapter Differences

2007-11-08T03:49:00.000-08:00

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.

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Quick Tips On Bankruptcy Proceedings

2007-11-08T03:47:00.000-08:00

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

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The Following Are Steps On How To File Bankruptcy

2007-11-08T03:44:00.000-08:00

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.

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Debt Alternative to Bankruptcy

2007-11-08T03:43:00.000-08:00

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.

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Personal Bankruptcy - Leads to Loosing Future Credits

2007-11-08T03:42:00.002-08:00

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

Should I Feel Guilty If I File Bankruptcy in Canada?

2007-11-08T03:42:00.001-08:00

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

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Bankruptcy - Is It True You Can't Discharge Taxes In Bankruptcy?

2007-11-08T03:41:00.001-08:00

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

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Bankruptcy Laws

2007-11-07T04:30:00.002-08:00

U.S. bankruptcy laws fall under federal statutory law provided by Title 11 of the United States Code. They have been periodically revised and amended to provide full and fair cover for genuine cases and to eliminate the potential for their unlawful abuse. Since this is federal jurisdiction, individual states cannot pass legislation governing and regulating bankruptcy. US bankruptcy laws have been standardized so as to have universal application. However, state governments can lay out parameters for the definition of personal insolvency and indebtedness.

The Supreme Court formulated US bankruptcy laws in consultation with Congress, and all supervision and administration of bankruptcy proceedings fall under its jurisdiction. The two fundamental kinds of bankruptcy in the United States are Chapter 7 and Chapter 13 bankruptcy, which have been explained in some detail earlier.

In filing for either Chapter 7 or Chapter 13 bankruptcy, a debtor’s obligations may vary to some degree depending on the circumstances. In Chapter 7 bankruptcy, the filing party is required to make a full disclosure of assets and liabilities, including secured and unsecured property. Within 30 days of making an application, the applicant must declare whether he/she intends to retain or surrender such assets. These intentions must be executed within 45 days of filing.

The applicant must further provide a complete list of creditors, after which the bankruptcy court arranges for a meeting of the applicant with all mentioned creditor. During this meeting, all their doubts can be raised and must be addressed to their satisfaction.

Chapter 13 bankruptcy can be initiated by either the debtor or his/her creditors. After filing, a trustee is appointed to supervise the debtor’s assets. Effectively, these are then immovable asset which can neither be sold nor transferred.

US bankruptcy laws basically benefit the applicant debtor, and since recently enforced amendments, the interests of creditors are given equal priority.

Bankruptcy provides detailed information about bankruptcy, bankruptcy attorneys, bankruptcy faqs, and more. Bankruptcy is affiliated with New Bankruptcy Laws.

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New Bankruptcy Law - Effects on Natural Disaster Victims

2007-11-07T04:30:00.001-08:00

You’ve heard of the new bankruptcy law, whether you plan to file for bankruptcy or not. The law referred to as "The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005", took effect on October 17, 2005. The law imposes restrictions on who can file for bankruptcy under chapter 7.

Following Hurricanes Katrina and Rita, the United States Trustee’s office announced special guidelines intended to lessen the impact of the new law on victims of natural disaster. Many victims of the hurricane not only lost their homes but have no way of meeting the stringent load of paperwork required to file for bankruptcy.

Some of the exemptions made for victims of natural disaster include the following:

Mandatory Credit Counseling – The requirement to undergo compulsory credit counseling is waived.

Paperwork Load – Filers who cannot provide the paperwork needed to file for bankruptcy will not be penalized.

Passing the “Means Test” – Filers have a lot more leeway, when it comes to passing the means test because lost income and other negative financial effects of the disaster are considered as “special circumstances” that may allow a debtor, who otherwise wouldn’t pass the “means test” to file for bankruptcy under chapter 7.

Access the summary list of changes per the new bankruptcy law and how potential filers will be affected.

Visit http://www.poorcreditgenie.com for in-depth information about the new bankruptcy law and other bankruptcy articles.

The website offers free debt management credit counseling advice and information. Learn the secrets to getting a free government credit report and improving your FICO score.

The website is a consumer’s best friend for all things money.

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Chapter 7 Bankruptcy Lawyer – Why You Need One

2007-11-07T04:28:00.000-08:00

Filing for Chapter 7 bankruptcy is a complex legal process that takes time. Yes, you can file bankruptcy on your own. But with all the legal technicalities involved and with a new law in place, it is better if you hire a Chapter 7 bankruptcy lawyer. Your creditors can fight you on Chapter 7; therefore it is best to have a legal expert by your side. Chapter 7 bankruptcy is basically a liquidation of your non-exempt property to disburse your debts.

An experienced Chapter 7 bankruptcy lawyer will look after your interests aggressively. He or she will give you expert advice on how to manage your debt and will help you in your efforts towards a financially secured future. If you are not sure whether Chapter 7 is right for you, he/she can offer you other alternatives and will inform you about the exemptions available to you in the state where you reside.

Filing for Chapter 7

Your Chapter 7 bankruptcy lawyer will tell you if you are eligible to file for Chapter 7. With the new law in place, you might have to first go through credit counselling before you become eligible.

If you are eligible for Chapter 7, the next thing that you need to do is to make a list of all the debts that you owe. You can pull your credit report for each credit-reporting agency to get an accurate picture of your debts. You will need to go through lot of paperwork. You would need to sign on the dotted line before the papers are filed.

Once the papers are filed it would take around three to four months for the court to decide whether you are really eligible to file. If you are found eligible you will receive official confirmation. The whole Chapter 7 process can take around a year.

The decision to file bankruptcy is often a difficult one to make. When you choose to do so, you want to make sure that you have the right lawyer to assist you with the piles of paperwork you will have to undoubtedly fill out and file. If you are serious about cleaning up your debts, Chapter 7 is right for you. He or she will be aware of the process and will save your time and money in the long run that might otherwise be wasted on unnecessary errors.

Click here to find chapter 7 bankruptcy lawyers online. You can research bankruptcy lawyers online to find one that suits you. Also learn why you need a lawyer to help you file bankruptcy.

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When And How To Check The Bankruptcy Record

2007-11-06T03:12:00.001-08:00

Bankruptcy record plays a very important role when it comes to knowing about the financial capabilities of an individual or business. As the name suggests, this term stores valuable information regarding a debtor, whether or not he or she have ever been declared as bankrupt. Of course, bankruptcy record is something that is more important for the creditors. The creditors want to make sure that they are lending money to the right person and their money will come back after the set tenure of the loan. If you are a creditor and you want to check the bankruptcy record of a person, the following information is going to be a great help for you.

How To Study The Record To Get Accurate Information

It is very important for you to understand that bankruptcy record is something that cannot be examined by just anybody. You have to be very careful while studying these records. For example, the first thing that you have to make sure is that you are examining the bankruptcy information regarding the correct person. It is obvious that there can be more than one person with the same name. Therefore, be very careful while confirming the identity of the debtor.

How Can the Bankruptcy Be Beneficial?

Studying the bankruptcy record can be beneficial in several senses. For example, you can easily find out if the person you are going to lend money to has ever been declared as bankrupt. If so, you can also find out when the bankruptcy did took place. If the debtor was declared as bankrupt some five years ago and he or she is now in a good financial state, it simply means that the debtor has recovered from the adverse effects of bankruptcy in a smart way and he or she is now more responsible towards the financial matters. You can easily trust such a person and lend money to him. Your money will be in safe hands. The study of the record in a careful manner will also let you know the reasons that led the debtor towards filing bankruptcy. A careful study will help you learn about the specific details. For example, you may get to know that that the person was declared as bankrupt, because he or she was unable to repay the students loan or it might be because he or she mismanaged the finances of their business in a worse manner. Your decision to grant the loan must be based on those reasons.

Overall, we can see that the main objective of examining the bankruptcy record is to make sure that the person your lending money is capable to return your money in the present state.

If you are a creditor or run a financial company that offer loans to debtors, you may sometimes need to check the bankruptcy record of the applicant. A close analysis of the bankruptcy information regarding the various debtors will help you understand regarding their repayment capabilities. You may want to look into the reasons that forced the debtor for filing bankruptcy. To know more about bankruptcy issues visit Bankruptcy

Article Source: http://EzineArticles.com/?expert=Asheesh_Mani

Bankruptcy Services - Overview and How They Can Help

2007-11-06T03:11:00.000-08:00

If you're even considering bankruptcy as a way to free yourself of overburdening debt, then it's probably a good idea to what types of bankruptcy services are available and what they can offer.

Credit Counseling Services:
Credit counseling services are designed to help you take a long had look at your financial situation and decide what's best for you and your future. Most will guide you through your finances and see if it's a t all-possible to pay back your debt to avoid filing for bankruptcy in the first place. The nice thing about using this type of service is that it allows you to learn how to better manage your finances, while allowing them to handle your creditors to set up payment plans and even have some of your debt forgiven.

There are two types of credit counseling services: the pay for and the non-profit service. Both services are virtually the same, except that one is typically free, or very low-cost and one is not. Be very careful when choosing a service t be sure that they are qualified to handle your specific situation and can actually help you get out of this important financial bind.

Bankruptcy Lawyers:
Once you and your credit counselor determine that bankruptcy is your best option, it's time to find a good lawyer who specializes in bankruptcy in your state. Although they can be a bit pricey, especially for someone who is already in debt, their services are vital to ensure that the process goes smoothly and is handled properly. Bankruptcy laws can be very different from state to state with mounds of legal paperwork t complete, so be sure that the lawyer you choose is an expert in this field. Remember, attorney fees cannot be included in your bankruptcy debt, so you'll need to pay these fees upfront.

Pre-Filing Services:
Maybe the most important bankruptcy service you'll need is a pre-filing service that is capable of stopping any home foreclosures ad repossessions during the bankruptcy process.

Whatever bankruptcy service you choose to help you through this tedious and often confusing process, make sure the are qualified to help you determine which type of bankruptcy you qualify for and move the process along as quickly as possible.

It's important to have all of your paperwork filed out correctly before filing with the court. That's what your bankruptcy service is for. What else should your service or lawyer do?

Here's a sample of what to expect:

* The service you choose should help you work out an affordable repayment plan.
* They should help you work out an after bankruptcy plan in order to maintain your payments.
* They should help you determine what assets you can legally retain and which must be sold.

Article Source: http://EzineArticles.com/?expert=Matt_Hick

Bankruptcy Vs Bankruptcy Alternatives

2007-11-06T03:10:00.000-08:00

Bankruptcy alternatives or file for bankruptcy? When you're beginning to find it difficult to pay off your debts you might consider filing for bankruptcy as your ultimate debt solution. But have you considered other options before you finally declare personal bankruptcy?

If you're in deep debt you will need to either work out a plan to repay the debt over time or completely eliminate most of the bills. Most people like to find shortcuts to completely eliminate their debts. While this approach works for certain situations you'll be better off if you first completely understand your financial situation in order to find the best solution.

Should You File For Bankruptcy?

Filing for bankruptcy is one of the best actions that a person could choose to take when it is really necessary. It isn't an easy way out but it is actually the best on certain situations. However, in some instances it could be devastating both economically and emotionally because of extensive damages to credits and other negative long term effects caused by the decision.

When you legally declare bankruptcy you can eliminate all, or a portion, of your debts by extending the time to pay off your debts under the protection and supervision of a court and trustee. If you receive a discharge, you're no longer obligated on those discharged or erased debts -- this won't include all secured-debts.

If you think it looks easy, it's not. The new bankruptcy law has made it harder for some to file. For this reason it makes sense then that debtors want to seek a bankruptcy alternative.

Different Bankruptcy Alternatives

Since there are a lot of things that bankruptcy can and cannot do you still need to find some other way to manage your increasing debt. The following alternatives will help you to save yourself from further devastation:

1. Personal Money Management: Debt comes from spending more than your income. Saving money from reduced monthly spending and then use it to pay off unwanted debts is the most obvious solution. You could save some money by creating a personal budget and analyze your monthly expenses.

2. Negotiation with Creditors: Unsecured loan lenders realize that are at risk losing all of their money if you declare bankruptcy. They are willing to reduce or even eliminate any interest, late fees and other charges in order to get back a portion of their money. You can get some real deals here. However, you should expect that your credit will be immediately terminated by the creditors.

3. Debts Consolidation: Making one monthly payment to a lender that offers a low interest rate loan to replace many payments to different creditors is another option. This is especially useful for simplifying your monthly spending budget if you have to repay a number of higher interest credit card debts.

4. Debt Settlement Service: Working with a professional debt negotiator is another alternative. On you behalf, an experience debt negotiator will be able to negotiate with your creditors to reduce your debts before they pay the agreed amount in a lump sum to your creditors.

Paul Sarwana offers information about personal bankruptcy alternatives to help debtors build confidence in improving their financial situation. He runs an informational website that provides tips on choosing a good bankruptcy lawyer. Please visit http://www.debtfirms.com/ to get more quality bankruptcy alternatives information.

Article Source: http://EzineArticles.com/?expert=Paul_Sarwana

Some Thoughts on Bankruptcy

2007-11-06T03:09:00.000-08:00

If you have found yourself overburdened by debt and your income at the present time is not enough to cover your bills than you may want to consider bankruptcy as one of your options. If this is the case then there are a few things that you will want to take into consideration. You certainly don't want to let your creditors know that you are considering bankruptcy, or they make the preemptive move of seeking a default judgment against you.

If you are going to try to negotiate with your creditors then you should seek out the help of a credit counselor who can assist you in this area. If you have made the decision file for bankruptcy then you will definitely need the help of a qualified bankruptcy attorney. After your attorney files the papers at the court clerks office your creditors will then be notified that you intend to have your bills discharged.

This will be the beginning of your creditors trying to negotiate with you seriously. Your attorney can advise you on these matters, because one of the things that they will try to get you to do is to reaffirm your loans which will make them exempt from bankruptcy proceedings. Depending on what they are offering you you may choose to do this and this is quite often the case.

You have to bear in mind that a bankruptcy will damage your credit for years to come and it will be very difficult to get credit with a bankruptcy on your record. There are many things that a good credit councilor can do for you such as arranging a low interest personal loan that you can use to pay off any burdensome high interest debt that you may have. It is important to bear in mind that bankruptcy should always be your last resort.

Written by Hillary Millman. Find the latest information on Bankruptcy Advice as well as Debt Advice

Article Source: http://EzineArticles.com/?expert=Hillary_Millman

The Usefulness Of A Bankruptcy Mailing List

2007-11-06T03:07:00.000-08:00

How compiling a Bankruptcy Mailing List can make you money in troubled times.

Sad to say, but the times and with it the face of business is changing in the United States. It appears that a cut down in consumer spending is upon us, apparently spurred on by the sub prime mortgage crisis. The consumer spending boom has gone on for the last ten years or more, confounding economic gurus for the last two or three years. It now appears that a lot of the euphoria surrounding this boom has burst, and we are now facing a period of economic instability, accompanied by foreclosures and bankruptcy on a very large scale. Business people who can react quickly to this changing situation can actually benefit from it. The sad fact is there is money to be made from other people's economic chaos, and if you are in the position to cash in and don't, then someone else will. There are already people who have established thriving businesses preparing and selling bankruptcy mailing lists.

Preparing a bankruptcy mailing list as an e-mail newsletter.

It takes very little time and money to set up such a list. All you need to be is pedantic and thorough. You need to discover accurate sources of bankruptcy auctions and liquidation sales. You need to know where and when the sales are taking place, in which region, what they are selling, its condition, and general price range. Once you have established your format then the next stage is to establish a client data base. You may approach this in different ways. If you are aiming for a mass market, there is no doubt that the internet is a great source. You can even establish a regular monthly, weekly or daily newsletter which can be by minimal subscription. By brokering this list, you have the potential of earning a lot of money, even unlimited.

Preparing a client specific bankruptcy mailing list for high volume clients.

The secret of buying successfully at auctions is to be alert. The buyer needs to know what to buy. They need to know how to asses an items value in a fluctuating market, as well as all aspects of handling the merchandise or machinery. This means removal from the auction site, storage and distribution.

The buyer needs to be capable of establishing a price that they are prepared to pay for the item, no more and preferably less, so that they can turn a profit at the end of the day. The last thing that a buyer attending an auction needs is a group of rivals appearing to bid for the same items and push the price up.

These volume buyers are prepared to pay a lot of money for exclusive bankruptcy mailing lists on specific sales. The value of exclusivity is very important to them, as well as very specific information on the goods to be auctioned at the sale, especially their specific condition.

No matter which section you aim for, there are opportunities abounding in preparing and marketing a bankruptcy mailing list, if you do your homework first.

Emma White is the creator of http://www.officialbankruptcy.com which is dedicated to bankruptcy, credit problems, and other debt related issues. Find out more here http://www.officialbankruptcy.com now... Free bankruptcy eBook for all visitors

Article Source: http://EzineArticles.com/?expert=Emma_White

New Bankruptcy Law - Effects on Natural Disaster Victims

2007-11-05T04:06:00.000-08:00

Bankruptcy Defined

2007-11-03T00:28:00.000-07:00

Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their creditors. A declared state of bankruptcy can be requested by creditors in an effort to recoup a portion of what they are owed; however, in the overwhelming majority of cases, the bankruptcy is initiated by the bankrupt individual or organization.

Bankruptcy occurs when a business cannot meet its debt obligations and petitions a federal court either for reorganization of its debts or liquidation of its assets (although this action has a negative impact on a credit rating).

It also refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may be released from or "discharged" from their debts perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings. The person with the debt is called the debtor and the people or companies to whom the debtor owes money are called creditors.

When you are unable to pay your debts, you submit yourself to the protection of the state. A person or business may voluntarily declare bankruptcy or may be petitioned into bankruptcy by his creditors. Once in bankruptcy, the person surrenders his assets to a trustee in bankruptcy who sells the assets for the benefit of the bankrupt's creditors, first the secured creditors then the unsecured creditors. Once a person is discharged from bankruptcy, none of his former creditors may pursue him for his former debts.

The primary purposes of the laws of bankruptcy are: (1) to give an honest debtor a "fresh start" in life by relieving the debtor of most debts, and (2) to repay creditors in an orderly manner to the extent that the debtor has the means available for payment.

There are two types of bankruptcy: Involuntary Bankruptcy, where creditors or lenders file a petition against the debtor (person in debt), and Voluntary Bankruptcy, where the debtor files a petition claiming inability to meet creditors' requirements.

Article Source: http://www.simplysearch4it.com/author-articles/3566/1.html

Bankruptcy Information: A helping hand in trying times

2007-11-03T00:26:00.000-07:00

Bankruptcy is a phrase heard and used by many. Individuals tend to have pre-conceived notions about bankrupts that they are individuals who are totally broke. But bankruptcy information can be a real eye opener for debtors who are contemplating bankruptcy and individuals who are seeking information about bankruptcy. It helps debunk all the myths attached to bankruptcy.

1) What is bankruptcy?

Bankruptcy is a legal term to formally identify an individual as bankrupt. It refers to the inability of any debtor or organization to pay their creditors. In majority of the cases, bankruptcy is initiated by debtors or organization themselves. The main purpose of bankruptcy law is to provide any honest debtor a chance to start afresh and to help a debtor repay his/her creditor/s in an orderly manner to the best extent possible by the debtor. Debtors are discharged of most of their financial obligations after their non-exempt assets have been distributed. Creditors can no longer harass debtors or continue any lawsuits once the debtor has opted for bankruptcy.

2) Implications of bankruptcy:

Filing bankruptcy is one of the hardest financial decisions. Debtors must carefully examine the implications of bankruptcy and choose it as a last resort to deal with financial troubles. Following are the implications of bankruptcy:

• Lose control over your assets (except items/equipment required for work/household purposes)
• Cannot act as director of a company/practice as a lawyer/chartered accountant
• Negative publicity as a bankruptcy is advertised in 'London Gazette' and a local newspaper
• Bankruptcy remains on record with credit agencies, land registry and other organizations

3) Common terms to understand bankruptcy

• Bankruptcy petition: Individuals who opt for bankruptcy need to formally request protection of the federal bankruptcy laws. It involves filling of two important forms-The petition (Insolvency Rules 1986 form 6.27) and the statement of affairs (Insolvency Rules 1986 form 6.28).
• Chapter 7 bankruptcy: This chapter of the bankruptcy code provides for 'liquidation'. The debtor's non-exempt property will be sold and the proceeds will be distributed among his/her creditors.
• Chapter 13 bankruptcy: This chapter of bankruptcy provides a reorganization plan for individuals with regular income. It allows a debtor to retain his/her property and pay back his/her debt within 3-5 years.

Debtors could also consider various alternatives to bankruptcy before filing for bankruptcy. IVA, debt consolidation loan, debt management etc are proven alternatives to bankruptcy which the debtor can consider before he/she files for bankruptcy.

For comprehensive bankruptcy information log on to www.bankruptcy-information.www-bankruptcy.co.uk.

Article Source: http://www.simplysearch4it.com/author-articles/10039/1.html

Warning: Debt Agreements could send you Bankrupt Anyway!

2007-11-03T00:24:00.000-07:00

If you are in financial trouble right now and struggling thanks to bad credit, chances are you may have heard of a debt agreement and thought, "It's the answer to all of my problems." It's always best to talk to a professional before you make any decisions regarding what to do when you are in a bad credit situation, however in this article we'll take a look at debt agreements and examine how they can actually end up sending you bankrupt. That's right – they could end up driving you to that one place you don't want to go – bankrupt!

What is a Debt Agreement?
A debt agreement is a simple, legally binding agreement with your credit providers or lenders. It is considered to be an act of bankruptcy, however, you can still secure finance – including a mortgage – if you have a debt agreement. Legally, these are referred to as Part IX (Nine) and Part X (Ten) agreements and upon approval of your creditors (at least 75% or more of the dollar value of your debt) such arrangements can enable you to:

• Make a payment of less than the full amount of all or any of your debts, freeing up extra cash each month;
• Put a stop on the payment of your debts or a stop on the interest that accrues on your debts, allowing you to get some money together to make the payments; or
• Make a transfer of property from you to one or more of your creditors in lieu of full or part payment of the money you owe to them.

How Can a Debt Agreement send me Bankrupt?
As you can well imagine, or as you may know from personal experience, when you are struggling with bad credit, there are people out there who will exploit your vulnerability – even though it's not your fault! For instance, in setting up debt agreements, insolvency specialists and trustees may charge you exorbitant fees that you cannot afford, or they may set up a debt agreement that you cannot afford, which results in you not being able to meet the terms of your debt agreement. In other words, people can end up going bankrupt if they are bound by a poorly-suited debt agreement that they cannot afford.

Avoiding Bankruptcy Compliments of a Debt Agreement
To avoid bankruptcy caused by a debt agreement, the advice is quite plain and simple:

• Find a reputable trustee: A reputable trustee will work with your creditors, on your behalf to negotiate the debt down, which results in a debt agreement you can afford which will help you clear your debt.
• Avoid a debt agreement altogether: This can be done by finding a bad credit expert who will work with you to re-finance. This will result in re-payments that are easier to handle, which will ultimately help you reduce your debt.
• Honour the conditions of the debt agreement: Look at the debt agreement as an opportunity – not a punishment – to help you get out of debt. A good debt agreement will be affordable for you, so that over time, you will clear your debt and be financially secure.

For Further Information
Debt agreements and re-financing may sound to you like great ways to avoid bankruptcy, and this may well be the case for you. To determine for sure though, you need to consult with a bad credit specialist who will assess your situation and provide you with the guidance you need to own your own home and secure a financially independent future.

Call our team today and take the first step towards financial success!

Article Source: http://www.simplysearch4it.com/author-articles/10183/1.html

Do Bankruptcy Alternatives Work?

2007-11-03T00:23:00.000-07:00

Bankruptcy should always be a last resort to debt relief and many people could avoid this with a few bankruptcy alternatives. Before you make the tough decision to declare personal bankruptcy, you may first want to think about a few bankruptcy alternatives.

Avoiding bankruptcy will not only save your credit rating but it allows you to recover from a bad credit history much quicker. Here are a few bankruptcy alternatives that provide financial relief that can get you out of your financial bind.

Get On A Budget

The first thing you should do before making any major decision is take a hard look at your financial situation. Write out a budget and include details on monthly household income versus monthly household expenses.

Understanding how you are spending your money may help you get a handle on your finances and avoid bankruptcy. You'll be able to see areas where you can decrease your spending, such as eliminating the premium channels from your cable TV or taking your lunches to work from home.

Negotiating With Creditors

What ever you do, don't hide from your creditors because it becomes worse. Most often your creditors can help you if you call them and explain that you're having trouble with your finances. If you explain that you are thinking about bankruptcy, they may be willing to give you an alternative payment plan to help you avoid bankruptcy.

If you already have a credit card with a low interest rate, you might consider transferring the balance from a high rate credit card to the lower rate one. You may also be able to negotiate a lower interest rate with credit card companies. Call your credit card company and ask them.

Some will probably say no but others may say yes and this can be a huge monthly savings for you. It's worth a call because even if a few say yes, it's a big help to your monthly budget. Small gains like this can add up to more than what you think and may even balance your monthly expenses.

Get a Debt Consolidation Loan

Other good bankruptcy alternatives might involve getting a debt consolidation loan to pay off your high interest credit cards. A debt consolidation loan lowers your monthly payments and this could be a great way to avoid bankruptcy.

Borrow Money From Savings

Depending on your situation, it may be an option for you to borrow against your IRA or 401k to pay off credit cards or debts that have a higher interest rate. Before borrowing against or using your savings, you should consider any penalties carefully so you'll know if this is a smart option for you.

Credit Assistance

Credit assistance programs may also be bankruptcy alternatives that may work to help you. Credit assistance organizations manage your unsecured debt through a debt management program to help you avoid bankruptcy.

Working through debt management programs, creditors may offer benefits that can help you with your unsecured debts, by lowering your monthly payments, reducing interest rates and eliminating late fees. Depending on your past credit history, creditors may even re-age your account and show it in a current status.

Make sure you look into bankruptcy alternatives before you make the decision to change your financial life forever. Look at these bankruptcy alternatives to consider if they may be a better choice for you.

Article Source: http://www.simplysearch4it.com/author-articles/10894/1.html

Are You Allow To Keep Your Credit Cards In A Bankruptcy?

2007-11-03T00:22:00.000-07:00

Many bankruptcy filers are wondering whether they are entitled to keep one or several credit cards for emergencies backup. In general, you may not because your credit cards will be cancelled regardless, since you file the bankruptcy. The credit card issuers tend to punish their card holders for filling any kind of bankruptcy; in most cases, the credit cards of bankruptcy filers will be terminated once they file for a bankruptcy. But there are some exemptions where terms and conditions will be applied to enable the bankruptcy filers to continue holding their credit cards.

There are some exceptions applicable only to chapter 7 bankruptcy filers. Some credit card's issuers will allow you to keep your credit card but with a sized down credit limit, and in return you need to repay them for some of your debts. In fact, some companies will automatically send you or your attorney a proposed reaffirmation agreement, a contract between you and your creditor that you will pay all or a portion of the money owed, despite the bankruptcy filing, in exchange for a minimal amount of new credit.

Beside the sized down credit limit, a chapter 7 bankruptcy filers may allow to keep their credit cards by some of their card issuers but the interest rate will be revised to a higher than the normal interest rate. But, if you can always pay your credit balance in full each month, you will never incur a finance charge, and the high interest rate won't hurt you.

Other than chapter 7 bankruptcy filers, all credit cards must be given up at the filling of bankruptcy. However, there are credit card holders who have maintained their credit cards at zero balance for a long period of time do not report their credit cards during the filing. This action can be considered illegal since in effect your preference on one creditor (your credit card issuer) over other creditors, because repayment ordination is a trustee job.

If you are not eligible to file under chapter 7 or even you are filling under chapter 7 but you didn't manage to get approval from your credit card issuers to keep your credit cards, the best thing is report all your credit cards and give them up. In most cases, your need to wait until the bankruptcy filing has cleared and then work with a debt management consultant to rebuilt your credit step by step. Of course, in the months and years after the bankruptcy filling, you may not be eligible for top-tier or even middle-tier credit cards.

But with some efforts and fiscal strategy such pay your monthly credit balance in full and on schedule will help you to rebuilt your good credit record and you can begin to erase the stigma of the bankruptcy; and eventually put you back in the realm of good to high credit score.

About the Author

Cornie Herring is the Author from http://www.StudyKiosk.com. "StudyKiosk-Credit Basics" is an informational website on credit basics, debt consolidation and bankruptcy. To see recommended bankruptcy attorneys, visit: Recommended Bankruptcy Attorneys.

Personal insolvencies are at record levels across the UK: Which way for the debtor?

2007-11-02T00:34:00.001-07:00

In the UK, when a debtor owes a sum of money in excess of £750 to a creditor, he can be made bankrupt by the creditor applying to the court for a bankruptcy order to be granted against him. This sum can comprise of debts that are due to a number of creditors who may petition the court as a group for a bankruptcy order, not necessarily a single creditor.

Bankruptcy is an option that can be considered when a debtor cannot pay their debts as they become due and their financial affairs become untenable. Although bankruptcy has a bad stigma and is publicly advertised, it should always be considered, even as a last resort and a debtor can apply for a bankruptcy order on his own behalf, even if creditors are not willing to do so. Debtors who are made bankrupt will usually remain bankrupt for one year, after which any debts relating to the bankruptcy are removed.

Many debtors now enter into 'Individual Voluntary Agreements' (or IVAs) as an alternative to bankruptcy. If a debtor's financial difficulties are temporary and he is likely in the future to be in receipt of funds which may pay all or most of his debts, he can talk to an insolvency practitioner with a view to obtaining such an agreement.

Through an IVA, proposals of repayment of debts are put forward to creditors, which can include banks, building societies, credit card companies and debt collection agencies, such as the CapQuest Group. Mostly these proposals involve either a lower monthly repayment or in some cases, a reduced final settlement amount. In order to succeed, however, the arrangement must be supported by at least 75% of all creditors affected by the IVA.

Despite the 'softening' of bankruptcy laws by the Enterprise Act 2002, the popularity of IVAs has grown in recent years. The Enterprise Act 2002 effected changes in bankruptcy law which many experts thought would see the end of IVAs, as it was generally regarded that bankruptcy would be seen as an easy way out for many debtors. However, even after a debtor is discharged from bankruptcy, many banks and other financial institutions will be aware of the debtor's financial history and this may affect any borrowing capabilities in the future.

Personal insolvencies are at record levels across the UK, with just over 26000 bankruptcies and IVAs in the period April to June 2006. These figures represent an increase of 10% on the first quarter of 2006, and 66% over the same quarter in 2005.

However, before any decision is made as to which route to follow, it is vitally important that a debtor seeks advice from a solicitor, insolvency practitioner or local Citizens Advice Bureau. There are also many specialised companies to be found the internet that are available to the debtor who can help to arrange an IVA or provide advice on how best to proceed in dealing with their financial situation.

Article Source: http://www.simplysearch4it.com/author-articles/10629/1.html

What Are The Consequences of Filing For Bankruptcy?

2007-11-02T00:33:00.001-07:00

Bankruptcy may be your quickest way of getting relief from your unbearable debt, but it is also the most damaging action to your credit ratings. Let us review the consequences of filling for a bankruptcy before your make up you decision to go for it.

1. Hard to Obtain Credit

Bankruptcy restrictions apply from the moment the bankruptcy order is made and it is a criminal offence to break them. These restrictions will make it difficult, if not impossible, to obtain credit. If you wish to buy a house in the future, there will be a two-year waiting period after the Chapter 7 case is discharged before you will be deemed eligible for a home loan. When a Chapter 13 bankruptcy case is involved, the waiting period is twenty-four months after the debts are paid off in full. During that two-year period, you will need to have been employed steadily, have no negative entries in your credit file, and kept debt under control.

2. Negative Impacts If You Are In Business

You will not be able to be a director of a company or hold certain offices. You will also have to inform any people you do business with the name in which you were made bankrupt; this may has negative impact on your company's reputation and may discourage your potential customers to do business with you.

3. Lose Your Assets

You may lose your assets which include your home and anything of value. And some percentage of your income will be paid to creditors for 3 years. A poor credit rating due to bankruptcy will follow you for 7 to 10 years. The bad credit stated in your credit report will cause you hard to obtain a mortgage.

4. Family Relationship Impacts

Financial strain alone is enough to break a relationship. The majority of couples failed in their marriage due to money. Bankruptcy may cause negative impacts to your family relationship if your spouse can't accept the fact of bankruptcy.

5. Health Impacts

You may blame yourself on bankruptcy incident and regret on your action. This may affect both your mental and physical conditions. It may cause you to have financial phobia and fear to manage your finances in the futures.

6. Higher Loan's Interest Rate

Bankruptcy filling has the most damage on your credit record if compare to other debt solutions. Your bad credit record will remain on your credit report for 7-10 years and if you are getting any loan after your bankruptcy discharged, your loan's interest rate will be higher than normal.

In Summary

Not all are apparent when considering bankruptcy and not all will apply to you. It is certainly worth familiarizing yourself so that you can make an informed decision when choosing whether or not to go for bankruptcy filling. And it is worth to get consultancies and advices from finance experts to see whether the bankruptcy is your only option; who know, you may find alternatives to this option and bankruptcy can be avoided.

About the Author

Cornie Herring is the Author from http://www.StudyKiosk.com. "StudyKiosk-Credit Basics" is an informational website on credit basics, debt consolidation and bankruptcy.

Get To Know The Bankruptcy Filling Process If This Is Your Option

2007-11-02T00:32:00.000-07:00

Filing for bankruptcy is a very personal decision. Heavy debtors may choose to file a bankruptcy if they see no other way out from their heavy debts. By declaring bankruptcy and filing a petition with U.S. Bankruptcy Court, the bankruptcy filer will be protected and relief from debts under the Bankruptcy Code.

Bankruptcy filing should be you last option if there are no better options available, because the consequences of filing a bankruptcy will follow you for 7 to 10 years. If bankruptcy is your only option, then by understanding the process of filing bankruptcy will get you more prepare to face it. Bankruptcy procedure and exemptions may vary from one state to another state. This article will walk through with you the general process of filing a bankruptcy.

The first part of the bankruptcy filing process is collecting your personal financial information. This includes your existing secured and unsecured debts and tax returns for past two years. Prepare all your deed documents which include real estate you own, car title, land title and other loan documents. You may want to order your credit report, it will provides you some helpful information on your past records.

Then, you either assign a bankruptcy attorney or you can choose to file the bankruptcy yourself. If you choose to file the bankruptcy yourself, you need to get the bankruptcy forms (you can get these forms online) and get them fill up. You have to fill in your current financial status and recent financial transactions (within last 2 years) into the bankruptcy forms. At the mean time, you need to decide to file under what type of bankruptcy; there two commons types which are Chapter 7 and Chapter 13, chapter 7 bankruptcy is the preferred one, but not all are eligible to file under chapter 7. If you choose to file under chapter 13, you need to enclose your proposed repayment plan with your petition. Once the bankruptcy petition is completed you will need to file the petition with your local United States bankruptcy court. If you have assigned a bankruptcy attorney to handle your bankruptcy case, the attorney will help you and guide you through the above process.

Once you have submitted your petition to the bankruptcy court, you will be immediately protected under the bankruptcy code. Your creditors are not allowed to make direct contact with you or making a claim to any of your property from the date of filing. About 1 month later, the trustee will call a first meeting with all your creditors and your creditors' lawyer. Objections are typically resolved by negotiation between you as the debtor and your creditors. If there is no challenge raises in the meeting, you should receive a notice from court after 4 to 6 months stated that your bankruptcy has been discharged; otherwise, if compromise can be reached by all parties, a judge will intervene.

In Summary

Bankruptcy filling is a long process, it may takes up 6 months to a few years if a court case involve. You must be prepared to face it and if you have no confidence to get through yourself, it's better to assign an attorney to handle the bankruptcy process.

About the Author

Cornie Herring is the Author from http://www.StudyKiosk.com/creditbasics. "StudyKiosk-Credit Basics" is an informational website on credit basics, debt consolidation and bankruptcy.

Five Ways How A Credit Monitoring Service Can Help Post-Bankruptcy Individuals Rebuild Their Credit

2007-11-02T00:31:00.000-07:00

If you are bankrupt and rebuilding credit, it will be helpful to monitor your progress as you add more positive information to your credit report. And one way to monitor your progress is by using a credit monitoring service.

When you declared bankrupt, you know how hard it is to raise your credit score again. At this point you know that you should take extra care and precaution in keeping your credit score safe from, or else you might become the next victim of identity theft. Bankrupt or not, you don't want it to happen. But now that you are bankrupt, nothing will undermine your efforts in rebuilding your credit faster than having your identity stolen.

While you can do the monitoring yourself, using a credit monitoring service can be advantageous in helping you recover from bankruptcy and rebuild your credit.
Here are the following reasons.

1. Credit monitoring services usually monitor any inquiry made on your credit report and why. This helps you detect if there are any unauthorized activities being done under your name.

2. Credit monitoring services also monitor if there are any new accounts being opened in your name. One of the ways identity thieves use your information and leave you with debt is by getting a hold of your name, address and Social Security Number for them to open new accounts using your name, run up charges in that account and leave you with more debt. This delinquency will be reported on your credit report, which will hurt your credit score more. But by monitoring closely your credit file, you can protect yourself from the further damages of ID theft if you know once when someone has opened a new account in your name.

3. Credit monitoring services monitor if your mailing address on your credit card account has been changed. Identity thieves can change your mailing address, and have your statement sent to the new address so they can get more of your financial information like your credit card numbers, and run up charges on your account. And because those statements are sent to the new address, it will take long before you become aware of it. Through a credit monitoring service, you will monitor of there were changes to your mailing address.

4. Credit monitoring services monitor if there has been an increase on your credit card limit. Identity thieves can also request for an increase on your credit card and run up charges on your account. This can in turn leave you with large debt and a worse credit score if you cannot pay it on time.

5. Credit monitoring services are very convenient because you are just a mouse click away from accessing your credit report, instead of monitoring your progress yourself. This makes it a time saver as well, especially if you choose to have their email alerts delivered to your inbox on a daily basis whenever a change happens to your credit report. This will make it easier for you to see if there are any inaccurate information being added so you can correct them as soon as possible, which can help improve your credit score.

So you see, using a credit monitoring service offer many benefits to you if you are bankrupt and are rebuilding your credit. Just study what they offer and choose one that suits your needs best.

About the Author

For a comprehensive guide on bankruptcy and rebuilding your credit after bankruptcy, visit http://bankruptcy.onlinemoneytips.info .

Filing Bankruptcy - The Process and What To Expect

2007-11-01T00:54:00.002-07:00

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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Free Bankruptcy Forms - A Relief For The Debtors

2007-11-01T00:54:00.001-07:00

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

Personal Bankruptcy - Are You Headed Toward Too Much Debt?

2007-11-01T00:53:00.001-07:00

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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How to Asses the Filing Bankruptcy Cost

2007-11-01T00:52:00.000-07:00

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

Bankruptcy Law - What You Need To Know

2007-11-01T00:51:00.000-07:00

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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Top Ten Tricks of the Lending Trade

2007-10-30T01:09:00.001-07:00

The tricks of the trade are limited only by the imagination of the lender – certainly not by federal regulations. And they’re all conceived with one end in mind -- big profits, not helping you. Fairness to the borrower just isn’t part of the equation.

1. YOUR CREDIT’S BAD.

So you have to take this lousy deal.

A blemished credit record is no reason to accept credit at 25%, 50%, or even several hundred percent annual interest. Or “low-interest” credit scams that tack on big fees for pre-payment, late payment, documents or credit reports. Even folks with tarnished credit can get loans and credit cards that don’t charge an arm and a leg to borrow. Shop around!

2. YOUR CREDIT’S GOOD.

So we’re offering you all these ‘pre-approved’ credit cards.

Sometimes the same debt pushers who tell you one day that your credit’s no good will stuff your mailbox the next day with “pre-approved” credit cards, home equity loans and other high-cost money. Debt pushers throw loans and credit cards at unemployed college students, people fresh out of bankruptcy and others who can’t afford them. So don’t be flattered when someone offers you credit. Credit is the business of making money off your debt – off you. Make sure it’s both necessary and fair before accepting any loan.

3. LOW MONTHLY PAYMENTS!

Forever.

Paying $100 a month for 24 months costs a lot more than paying $150 a month for 12 months. And minimum monthly payments on credit card bills and such can have you paying interest on a take-out pizza for decades! So don’t base your borrowing decisions on low-monthly-payments alone. Low monthly payments are great – for the debt pushers. They’re practically pure interest and they can stretch your payments out endlessly.

4. ACTUAL COSTS MAY VARY.

By hundreds or thousands of dollars.

If it looks too good to be true, it probably is. 0% interest to start. Bounced check “protection.” Buy now – pay later! Low initial costs and extra “protection” are often just smoke screens. The question to ask is: “What will this cost me overall?” Because fees and penalties are among the sneakiest credit-pusher games. Some “low interest” credit cards permanently rocket up to 30 or 40 percent after a single late payment. Or if you spend just $1 over your credit limit. Or if you missed or paid late on another bill from another lender! Credit-pusher traps are horrific and, worse, they’re often perfectly legal.

5. THESE ARE THE RULES.

For now. We can change them whenever we want.

Standard contract law just doesn’t apply. Loans and credit cards can simply send you a notice with the monthly statement that they’re changing the rate, the due date, the fees and penalties, or the amount of time you have to pay off the loan. Simple as that. Missing this small single notice locks borrowers into terms they never agreed to.

6. WE NEED THESE PAPERS BACK TODAY.

Sorry. No time to take them to your lawyer.

A rush job is a sure sign of trouble. If you can’t take a loan contract home or to an attorney, walk away. There’s something there they don’t want you to see.

7. YOU’RE ONE OF US.

We’re just like you. Trust us.

Seniors to seniors. Military to military. African-American to African-American. Christian to Christian. Credit pushers are as conniving in their recruitment as they are in their sales. It’s called affinity marketing. But just because the salesperson looks like you doesn’t mean they have your interests in mind. Affinity marketers are another way to distract borrowers from the price and terms of a bad deal.

8. THE FINE PRINT SAYS IT ALL.

We win. You lose.

The fine print in almost every consumer agreement – from phone and internet to college loans and employment contracts -- says that if you get into a dispute with the vendor or lender you have to settle it their way, through binding mandatory arbitration (BMA). But the BMA game is rigged. The other side often picks who does the arbitrating – and it may cost you lots of money to even get the case heard. There are so many arbitration clauses out there that it’s hard to avoid them. But if you see one you should take your business elsewhere.

9. GET YOUR CASH NOW!

And don’t pay attention to what it costs.

Fast-cash places like “payday lenders” and automobile “title pawn” shops give fast loans – so fast that the borrower never sees what are often the worst deals that even credit pushers have to offer. Even a hundred-dollar loan from these vultures can put a person on a treadmill that can ruin a family’s finances for years. And watch out at income tax time for “Rapid Refunds” or “Refund Anticipation Loans”– that’s just borrowing your own tax-refund money at ridiculously high rates!

10. LIVE LIFE THE WAY YOU WANT.

And spend years paying for it.

Take that vacation! Buy those fancy wheels! If someone’s willing to lend you the money then surely you can afford it, yes? Well, maybe not… Don’t let those who will profit from your payments talk you into deals by making it look like you’ve got the power.

http://www.newjerseybankruptcy.com/bankruptcy-articles/top-ten.htm

What you need to know about medical debt and your health insurance

2007-10-30T01:05:00.000-07:00

MEDICAL DEBTS - MY INSURANCE WAS SUPPOSED TO PAY THAT

A large portion of my debt collection practice is made up of the collection of past due medical bills. Unfortunately, the vast majority of the people I end up suing for past due medical bills are not the large numbers of uninsured about which congress is constantly concerned. They are people who actually have health care insurance, but their insurance has denied the claim or failed to pay. Despite any number of modern myths, this is the bottom line everywhere in the United States when you go to the doctor's office, you will be asked to sign a Patient Financial Responsibility document, which in layman's terms says you are responsible for your own bill whether you have insurance or not.

When you go to the doctor, the doctor provides you services and you areresponsible for paying for those services. You may have a contract of insurance, but that is a contract between you, as the insured, and the insurance company. It is not a contractual relationship between the doctor and the insurance company. The doctor's office files your insurance claim as a courtesy to you. Even your policy of medical insurance will state that you, and not your doctor's office, are responsible for filing the claim. So the first great truth that every patient must understand in today's modern world is that they are first and foremost responsible for payment of the doctor and hospital bills, even if they have insurance.

The second myth widely held by the public today is that unless you receive a bill from a doctor's office, you don't owe them anything. I cannot tell you the number of times I hear during the day "well, they never sent me a bill." A bill or a dunning letter is not a pre-requisite to establishing or enforcing a contractual debt. The instant the service is performed, the debt is incurred and is owed. The mere fact that you don't have to pay the full bill when you leave the doctor's office or are discharged from hospital is a courtesy to you. That is not a courtesy that you can take advantage of by not paying. This leads me to the second great truth of the modern world of medical bills and insurance. It is entirely the patient's responsibility to keep track of whether or not their insurance company has paid a claim or not. This is a difficult truth for many busy self-absorbed, distracted Americans to take to heart. What it essentially boils down to is that if you go to the doctor and you do not receive an EOB (Explanation of Benefits) from your insurance company showing where they have paid that doctor, you need to pick up the telephone and call your insurance company and find out why they have not. Likewise, if you receive an EOB showing that your insurance company has denied a claim, you need to file a dispute in writing with your insurance company and do everything necessary to appeal that decision and have the claim paid. If you do not, more than likely, you will not receive a bill from the physician's office, but rather you will receive a collection letter from a collection agency stating that your bad debt has been turned over for collection. The doctor's office will not fight with your insurance company to make them pay your bill for you.

The third hard truth of the modern world of medical billing and medical insurance is that if you drop the ball, you have to pay. The reason for this is what is known in legal and insurance circles as "timely filing." All insurance companies have in their policies a requirement that a claim be timely filed, and that phrase is defined in each individual policy as a specific period of time. The standard is ninety (90) days; however, there may be variations. What this means is that if you have services at a physician's office or hospital, and no claim is filed within that 90 days, the insurance company is relieved of their contractual obligation to pay your medical bill. This is a horrible trap for the unaware consumer. If you go to the doctor and the doctor's office fails to file your insurance claim through their own negligence or oversight and 90 days passes, and you receive a letter from a collection agency saying you owe a doctor's bill, then you owe a doctor's bill. I reference you to cold hard truth number 2; it is your responsibility to make sure your insurance company pays your medical bills. If you go to the doctor and you don't receive an EOB within 90 days, you must contact the doctor's office and find out if they have filed the claim and your insurance company and find out why they have not processed the claim. If you fail to do so, then you will be contractually responsible for full payment of that bill, even if you had valid insurance at the time of the treatment.

Now, I know as you read this you are saying to yourself, "that's not fair." Well, I hope by now you have learned as an adult that life simply is not fair and if you intend to stand before a judge in opposition to a suit I filed and plead the "it ain't fair" defense, then be prepared for the Judge to agree with you and summarily rule against you.

The fourth truth of the modern world of medical insurance and medical bills is that your wife's bills are your bills; your children's bills are your bills, regardless of whether you knew about them or authorized them. In most states, a spouse in a marriage is responsible for his or her spouse's medical bills. This normally comes up where the service or treatment was provided before a divorce and the now ex-spouse is being sued for his hated former companion's medical bills. Regardless of divorce, in most states, a mother or father is responsible for the medical bills and debts of their minor children, regardless of the circumstances. This most frequently arises where the ex-wife takes the child to the doctor without telling her ex-husband and runs up a large medical bill and does not pay. Then the ex-husband, who never knew anything about the bill, that has the better job, is sued. I realize this once again falls under the heading of life is not fair. However, it is perfectly legal and if you have a good divorce lawyer when you are divorced, your Marital Dissolution Agreement should allow you to recover those funds or at least one half of those funds from your ex-spouse. Your Marital Dissolution Agreement should also have a provision that requires both parties to notify the other party of any medical treatment and to provide medical bills and records within a certain period of time. Failure to do so may get a former spouse cited for contempt in Divorce Court. All of that, though, has no effect on the collection of the medical bill.

Now having painted a very dismal picture for the common patient, I will provide the one sword the patient can pick up and fight with. In today's modern medical insurance world, the vast majority of insurance policies are in fact not insurance policies, but Preferred Providers Organizations or Health Maintenance Organizations or some other alphabetic variation of a PPO or HMO. In order to be a member of the "network," the healthcare provider (i.e., your doctor) must sign a contract with the insurance company agreeing to provide his or her services at a certain rate for network members. This usually represents a discount from what the man on the street would receive. More importantly, these agreements often contain contractual requirements that the medical services provider submit the claim to the PPO and not take action against the member (i.e. you). If a doctor's office drops the ball and does not file a claim and then files suit against you, that PPO or HMO agreement may be used in your defense.

In conclusion, when and if a medical debt collection attorney sues you, do not expect to pick up the telephone and call his office and tell him "but I had insurance" and have everything be made alright.

http://www.newjerseybankruptcy.com/bankruptcy-articles/medical-debt.htm

Bankruptcy and Debt Consolidation

2007-10-29T00:56:00.001-07:00

Filing for bankruptcy in the United States is not as easy as it once was for the individual. People file for bankruptcy for many reasons, but the main reason is that a member of the family has become chronically ill, and the family has gone into great debt due to medical expenses, and can no longer keep up with the balance due.

Although there are six types of bankruptcy, most families file for one of two types: Chapter 7 or Chapter 13. Chapter 7 bankruptcy covers individuals or businesses, and the debtor sells off his or her non-exempt property, the proceeds of which go to pay off the creditors. Often these debt leads have no non-exempt property, so due to this circumstance they are not required to sell off anything. In return, the debtor's debt is canceled, except for certain kinds, such as some taxes and support for a spouse. Chapter 13 bankruptcy helps the individual debtor who still has some type of income. It garnishes the future wages of the individual debtor for three to five years, in return for which the debtor gets to keep all of his or her property. In 2005, consumer lenders convinced Congress and the President to turn into law the Bankruptcy Abuse Prevention and Consumer Protection Act. Debtors must now pass a Means Test to qualify for bankruptcy under Chapter 7, and must take credit counseling, no matter what the cause for the bankruptcy.

All things considered, it might be a better option for many to look into debt consolidation over bankruptcy. Many people are seeking this type of help, and if you are a mortgage broker, then you have the products that they are looking for to help them avoid bankruptcy and begin to dig out from under their debt. These people are eager to learn about your loan products; all you need to do is find out who they are. One easy way to achieve this goal is to get qualified mortgage consolidation leads.

As you compare lead origination companies, you will discover the keys to recognizing quality loan debt consolidation leads. You will want leads that are not enticed to give their contact information because they will receive a prize for doing so. Instead, you want mortgage leads that want you to contact them with vital information to help them solve their debt nightmare. Another factor to consider is that reputable lead generation companies will also guarantee the accuracy of the contact information of the leads, and that the leads should have a high amount of unsecured debt they wish to extinguish. That, along with exclusive rights to each lead, will ensure a high closing rate for you, and bankruptcy relief for your new clients.

Wayne Hemrick is a business professional who specializes in real estate markets. Mr Hemrick has worked extensively with debt leads. Further, he publishes articles on a wide variety of subjects, including how-to articles for mortgage lending professionals, in this case how a professional might boost business with Debt leads.

Article Source: http://EzineArticles.com/?expert=Wayne_Hemrick

Ways To Quickly Recover From Bankruptcy

2007-10-29T00:55:00.000-07:00

Filing for bankruptcy is usually the last resort for those who are struggling to cope with their ever increasing debt. It is a move considered to be one of the worst that you could possibly make and it is one which most people avoid if they can.

The Main reason for this is because bankruptcy usually stays on your file for up to ten years. This means that it is harder to gain credit in the future and opening bank accounts and getting a mortgage can seem to be almost impossible during that time. However, there are ways in which you can successfully recover from bankruptcy. You can even do it in half the time.

If you are looking to recover from bankruptcy, there are a number of things you can do to speed up the process.

The first is to not fall for any scams or loans. There are so many lenders out there who focus specifically on people who have just been made bankrupt. They see them as easy targets because if you are just getting through bankruptcy then you automatically assume that you will not be able to get any credit.

So if a company tells you that you can have credit, it is likely that you will get excited by the idea. Beware however as these companies are usually giving you the loan for a ridiculous interest rate. This means that you are likely to get into trouble again and you will be back where you started.

There are even companies out there who will offer to help you to get over bankruptcy. However, once again, you need to be careful. Most companies who offer this service are individuals looking to make money for crime purposes. So they will take your personal details, steal money from you and you will be left with the mess that is left. You really do have to be careful of who you trust; otherwise you could end up in a worse position than where you are now.

The only way you can really recover from bankruptcy as quickly as possible is to live a simple life. Do not spend what you cannot afford. Do not borrow any more credit, even if it is offered to you at what seems to be a fantastic rate. Be aware of what you are doing and start saving some of the money that you earn. Open a savings account and put money into it regularly. Show creditors that you are responsible now and that way if you ever do need help in the future, you may just get it.

Overall, there are ways in which you can speed up the bankruptcy recovery process, but you just have to be careful of whom you trust.

Paul Sarwana offers information about how to recover from bankruptcy to help debtors build confidence in improving their financial situation. He runs an informational website that provides tips on finding a good bankruptcy lawyer. Please visit http://www.debtfirms.com/ to get more quality recover from bankruptcy information.

Article Source: http://EzineArticles.com/?expert=Paul_Sarwana

Searching for a Waterbury Bankruptcy Attorney?

2007-10-29T00:54:00.000-07:00

If you live in Waterbury, CT, and are considering filing for bankruptcy, then you should seek the services of a specialized attorney. A lawyer can be the best ally you have when you are faced with the tough decisions that lie ahead. They will be familiar with the rules and regulations for your state.

A Waterbury bankruptcy attorney is essential to counsel and advise you on the steps you need to take to gain financial recovery. They are a wise judge as to which type of bankruptcy you may need to file in the state of Connecticut. They will know if it is best to file with a chapter 13 or a chapter 11 or even a chapter 7. They will guide you through the murky waters of Connecticut bankruptcy law and they understand and can help you to put an end to your financial stress. They will help you to face the storm of financial disaster you are experiencing and find peace again.

A Waterbury bankruptcy attorney understands that that sometimes during times of economic instability, many businesses and hardworking individuals will experience times of financial difficulty. An attorney can walk you through the process of getting your life back and make those times less painful for you. It is necessary to use the services of a professional in order to understand the new laws. They have spent the countless hours necessary to learn these laws and you will be safe. They can advise you of your legal rights and financial options as they are stated.

A Waterbury bankruptcy attorney will know how to compile and itemize the information that you will give to them. They will know the absolute best way to present your case to the bankruptcy judge. A specialized lawyer is essential in the state of Connecticut in helping you to understand all of the legal jargon and they will help you to start over with the least amount of pain possible.

It is important that you choose a Waterbury attorney with experience in bankruptcy law. You will want a professional that can instruct you and guide you in the most advantageous manner available to you. They will know that no matter how much financial trouble you may be in at the time, there are various legal avenues to help you achieve a healthier financial future. Choosing the proper bankruptcy attorney to represent you in your time of financial hardship is truly in your best interest. They will help place you back onto the road of success, enabling you to get your life back and find harmony. There are paths to choose that do not involve a professional, but why take a chance with your future?

All things Bankruptcy including Bankrutpcy Marketing and Personal Bankrutpcy Issues

Article Source: http://EzineArticles.com/?expert=Tom_Houser

The New Bankruptcy Law: Information You Need To Know Before You File

2007-10-27T05:46:00.000-07:00

The new bankruptcy law is in effect, and the climate has drastically changed for people who are considering bankruptcy. In this article we will touch on some of the details of the new law, and explain exactly how these new changes will affect you.

First, let's touch on the new counseling requirements. According to the new law, you must complete credit counseling with an agency approved by the United States Trustee's office before you can file for bankruptcy under either Chapter 13 or Chapter 7. Because this counseling is to decide whether you need to file for bankruptcy, or if an informal payment plan would be a better alternative for your situation. The counseling is mandatory for everyone, even for people who know for certain that a repayment plan is not what they want.

However, you are required only to join in the counseling; you do not have to go with any repayment plans the agency recommends.

But if you are given a plan, you will have to present the plan to the court with a certificate showing that you attended the counseling before you can file for bankruptcy. Once your bankruptcy case is over, you will have to attend another counseling session focused on learning personal financial management skills to complete your bankruptcy and erase your debts.

Another major change that comes with the new law effects many people who want to file chapter 7 bankruptcy. Under the old law, most people filing could choose between Chapter 7 and Chapter 13, and most people chose Chapter 7. Because of the new law, many filers with higher incomes will be prohibited from using Chapter 7.

The first step in determining whether or not you can file for Chapter 7 is to compare your current monthly income to the median income for a family of your size in the state you live in. In the context of the new law, your current monthly income is not your income at the time you file, but your average income over the last six months before you file.

Once you have determined your income, measure it against the median income in your state. If your income is equal to or less than the median, you can file for Chapter 7. If it is more than the median, you must pass a requirement of the new law called the means test. The means test requires you to determine your amount of "disposable income" by subtracting different variables from your current monthly income.

If your current monthly income after subtracting these amounts is under $100, you pass the means test, and will be able to file for Chapter 7. If you income is more than $166.66, you will be prohibited from using Chapter 7. Those in the middle of these incomes will be able to file for chapter 7, but will be required to still pay a percentage of their debt.

Yet another important change caused by the new law is that lawyers may be harder to find, and possibly more expensive. The new law has added many complex requirements to the process of filing for bankruptcy that will make it more time consuming for lawyers to represent their clients in bankruptcy cases. The end result being that attorney fees for representation will increase. Also, the amount of time that lawyers must put into the new regulations has increased and it is likely that it may be harder to find a lawyer that solely specialized in bankruptcy in the future. Many experts are predicting that the stress of these new requirements may drive some bankruptcy lawyers out of the field completely.

Now that you know many of the changes the new bankruptcy laws hold for your situation, be aware and file with care.

http://www.articlebliss.com/Article/The-New-Bankruptcy-Law--Information-You-Need-To-Know-Before-You-File/43917

Avoiding Bankruptcy - How To Avoid a Financial Problem

2007-10-26T05:18:00.000-07:00

Bankruptcy may seem like a quick and relatively easy fix to a big problem, but it isn't. First, it can haunt your financial life for a decade or more, keeping you from owning a home, buying a new car, or even living the life you really want.

Maybe you're debt is beginning to weight you down. It's not to late t change some bad habits and reverse your financial woes. How can you avoid bankruptcy? Here's a good place to start:

Get Control of Your Spending:
Less than 43% of Americans today have more than $1,000 saved for a rainy day. Living paycheck to paycheck is a dangerous, considering that emergencies happen every day. Cars break down; people get hurt and miss work; unexpected pregnancies force women out of the workforce, and more. If you're struggling to pay your bills now, imagine the chaos an unexpected layoff would cause.

Sure, not everyone has the ability t save a large chunk of their salary, but almost everyone can put $5, $10 or even $15 a week away in a savings account. The key to living under your means, and avoiding bankruptcy, is creating a workable spending plan (ok, a budget), and stick to eat. First figure out the things that are essential; place to live, food to eat, a way to get to work, etc. Now, this doesn't mean that you need to live in an $1800 a month condo if you make $23,000 a year. It means finding an apartment or home that you can afford; a reasonably priced car (or take the bus), and regular old jeans, not the designer kind.

Remember, the point here is to spend less than you make, and that will mean sacrifice of some type. How much sacrifice depends on how far over your income your spending has become. Once you've figured out your necessity spending, then you can take a good hard look at your non-essential spending habits and limit that to what you can reasonably afford and still be able to have enough left to pay down your current debt and save for an emergency.

So, how much should you be spending? Most experts agree that a sound-spending plan should consist of the following ratio:

* 35% of your net pay for housing costs (rent, utilities)
* 15% for transportation ( car payments, gas, maintenance, insurance)
* 15% for debt (credit card payments, student loans, personal loans, etc)
* 10% toward savings
* 25% for everything else (clothes, food, fun)

Following this ratio should allow you to live a comfortably debt-free life, freeing you of he worry of bankruptcy in the future.

Debt Consolidation:
Ok, so maybe it's too late to prevent financial trouble - you already have it. How can you stave off bankruptcy in order to get your financial house in order? If you own your home, and you're able to handle the payments, causing your home equity to consolidate your entire debt into one long-term loan may be the answer. Be careful though. Until you break the spending cycle that got you into trouble in the first place, this is only a temporary solution that can ultimately mean the loss of your home if you continue to wrack up debt after the consolidation is complete. If, however, you're prepared to pare back your expenses and attack your debt head on, then this may be a great way to buy a little time and keep creditors in check.

Debt Settlement:
Sometimes, even the equity in your home is gone and the well is simply dry. Creditors hate bankruptcy since they either never reclaim any of what you owe them, or get pennies on the dollar through payment options. So, once bankruptcy has become an option, contact your creditors and see if there's a possibility you can settle some of your debt in order to help you avoid bankruptcy altogether. Many are more than happy to forgive up to 60% of your current debt if they are guaranteed they'll get the last 40% in a timely manner. Be prepared, however, to prove your case. Face it, you haven't been very responsible thus far with your spending, or your bills, so they'll need a little convincing that things have changed and that you are indeed working hard to make things right.

Credit Counseling:
Oftentimes, people get into financial trouble simply because they don't know any better. Credit counseling can be a wonderful resource to help you get your spending under control, learn to live on a budget and handle debt settlement and consolidation for you. Just be sure that you choose a reputable service that has a proven track record.

While bankruptcy may seem like the best solution when creditors are calling every hour of the day or night, but, bankruptcy can often be avoided with a little ingenuity and some hard work.

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Article Source: http://EzineArticles.com/?expert=Matt_Hick

Do You Need Bad Credit Help

2007-10-25T05:31:00.000-07:00

? Are you one of thousands with no credit and no collateral to help secure approval, or you just
have extremely bad credit and no one wants to help you, and all you hear is stories and more stories?

Bad credit is a term used to describe a poor credit rating.Common practices that can damage a credit rating include making late payments, skipping payments, exceeding card limits ordeclaring bankruptcy. Bad Credit can result in being denied credit.

Bad credit can result in a negative rating from the credit reporting agencies. Many factors can contribute to someone getting a "bad credit" rating, among these are non-payment of an
account or late payments over an extended length of time.Whether non-payment of an account is willful or due to financial hardship, the result can be the same, a negative rating which
will result in a low credit score. However, lenders are more willing to work with individuals if the person contacts the lender to let them know they are having problems meeting their
commitment to pay. 100% Online Debt Relief! No Phone Calls! You must have at least $2,500 of total debt over two or more accounts to qualify for our Help. Name, email, and Zip Code are
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A credit score is defined as a statistical method of assessing an applicant's credit worthiness. An applicant's credit card history; amount of outstanding debt; the type of credit used;negative information such as bankruptcies or late payments;collection accounts and judgments; too little credit history,and too many credit lines with the maximum amount borrowed are all included in credit-scoring models to determine the credit score.

Raising your credit score is possible. It's a well known fact that lenders will give people with higher credit scores lower interest rates on mortgages, car loans and credit cards. If your
credit score falls under 620 just getting loans and credit cards
with reasonable terms is difficult.

Here are five things that you can use to raise credit score.

1. Correct obvious mistakes.

Your credit score is what shows up in your credit report. Review your reports from all three credit bureaus for accuracy once a year as well as several months before applying for a loan.
Changing a mistake on your report can take 30 days to three months, or more. Get Your credit report from the three major bureaus: Experian, Trans Union and Equifax.

2. Pay Your Bills On Time

Your payment history makes up 35% of your total credit score.Your recent payment history will carry much more weight than what happened five years ago.

Missing just one payment on anything can knock 50 to 100 points off of your credit score.

Paying your bills on time is the best way to get started rebuilding your credit rating and raising your credit score.

3. Reduce your credit card balances.

A heavily weighted factor in your FICO score is how much money you owe on your credit cards relative to your total credit limit. Generally, it's good to keep your balances at or below 25
percent of your credit card limit, said Jeanne Kelly, founder of The Kelly Group in Brookfield, Conn., which helps clients improve their credit scores.

4. Don’t Close Old Accounts

In the past people were told to close old accounts they weren’t using. But with today's current scoring methods that could actually hurt your credit score.

Closing old or paid off credit accounts lowers the total credit available to you and makes any balances you have appear larger in credit score calculations. Closing your oldest accounts can
actually shorten the length of your credit history and to a lender it makes you less credit worthy.

If you are trying to minimize identity theft and it's worth the peace of mind for you to close your old or paid off accounts,the good news is it will only lower you score a minimal amount.But just by keeping those old accounts open you can raise credit score for you.

5. Avoid Bankruptcy

Bankruptcy is the single worst thing you can do to your credit score. Bankruptcy will lower your credit score by 200 points or more and is very difficult to come back from.

Once your credit score falls below 620, any loan you get will be far more expensive. A bankruptcy on your credit record is reported for up to 10 years.

The reality of a bankruptcy is it will limit you to high-interest lenders that will squeeze out high interest rate payments from you for years.

It is better to get credit counseling to help you with your bills and avoid bankruptcy at all costs. By getting credit counseling instead of declaring bankruptcy you can raise credit
score over a much shorter period of time.

http://bk.shamrockbusiness.com/do-you-need-bad-credit-help.html

How Bankruptcy Works

2007-10-25T05:28:00.000-07:00

Bankruptcy… a frightening word with serious connotations. In recent years governments have been cracking down, making penalties for bankruptcy more severe in an attempt to make them more difficult to attain so that only those in serious need can apply for them.

Despite the negative image that is associated with bankruptcy and the various problems that come along with declaring a bankruptcy, it doesn't have to be frightening; after all, bankruptcy was designed as a way for those individuals and businesses who find that their finances are out of control to get the help that they need to organize their finances and pay off their debts.

Once you take the time to understand what bankruptcy is and how it works, you won't find it as scary as you did at first.

Defining Bankruptcy

Bankruptcy is a legal term, meaning that an individual cannot within reason pay off their various debts and have allowed the court system to take over their finances for this purpose.

When filing for bankruptcy, the court will appoint someone to work out the payments to your creditors and to determine how much of your income must go to repay these debts. The court will either allow you to make payments, or more likely will deduct a portion of your paycheck toward this goal.

During this time, your credit will be limited… both by legal action and by the reluctance of creditors to issue credit lines to individuals who have declared bankruptcy.

Once the total amount set by the court has been repaid, the bankruptcy will be discharged and you will be able to start rebuilding your credit from the ground up.

Different Types of Bankruptcy

Several different types of bankruptcy exist, defined by legal codes for certain purposes. The exact types of bankruptcy available differ from one country to the next… in the United Kingdom bankruptcy can only legally be applied to individuals and partnerships, whereas in other countries such as the United States or Canada they can be applied to businesses as well.

Regardless of the limitations or allowances set by the government on who is allowed to declare bankruptcy, the general purpose of bankruptcy remains the same.

Lasting Effects of Bankruptcy

While you are working towards discharging a bankruptcy, your options for credit will be exceedingly limited. Even after you've had your bankruptcy filing discharged, though, you'll still find that you won't have many options for a while… many creditors will still be hesitant to work with you from between six months to two years depending upon the creditor and the service that you're applying for.

You should also take care with any offers that you do receive, because they will likely come with high interest rates and additional fees attached.

Life After Bankruptcy

Bankruptcy isn't the end of the world… it's actually a chance for a new beginning. As time goes by, the bankruptcy on your credit report will begin to matter less and less as you eventually start to establish new positive credit lines and build up your credit again.

Just like negative reports, your bankruptcy will eventually expire from your credit history; the process may take up to seven years, and until it expires there will still be those who are hesitant to deal with you.

Once it expires, however, the negative reports that preceded it will also be long gone… and you'll find that your newer reports are all that remain.

http://bk.shamrockbusiness.com/

Fair Debt Collection

2007-10-24T04:27:00.000-07:00

If you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a "debtor." If you fall behind in repaying your creditors, or an error is made on your accounts, you may be contacted by a "debt collector."

You should know that in either situation, the Fair Debt Collection Practices Act requires that debt collectors treat you fairly and prohibits certain methods of debt collection. Of course, the law does not erase any legitimate debt you owe.

This brochure answers commonly asked questions about your rights under the Fair Debt Collection Practices Act.

What debts are covered?

Personal, family, and household debts are covered under the Act. This includes money owed for the purchase of an automobile, for medical care, or for charge accounts.

Who is a debt collector?

A debt collector is any person who regularly collects debts owed to others. This includes attorneys who collect debts on a regular basis.

How may a debt collector contact you?

A collector may contact you in person, by mail, telephone, telegram, or fax. However, a debt collector may not contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if the collector knows that your employer disapproves of such contacts.

Can you stop a debt collector from contacting you?

You can stop a debt collector from contacting you by writing a letter to the collector telling them to stop. Once the collector receives your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or the creditor intends to take some specific action. Please note, however, that sending such a letter to a collector does not make the debt go away if you actually owe it. You could still be sued by the debt collector or your original creditor.

May a debt collector contact anyone else about your debt?

If you have an attorney, the debt collector must contact the attorney, rather than you. If you do not have an attorney, a collector may contact other people, but only to find out where you live, what your phone number is, and where you work. Collectors usually are prohibited from contacting such third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money.

What must the debt collector tell you about the debt?

Within five days after you are first contacted, the collector must send you a written notice telling you the amount of money you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.

May a debt collector continue to contact you if you believe you do not owe money?

A collector may not contact you if, within 30 days after you receive the written notice, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.

What types of debt collection practices are prohibited?

Harassment. Debt collectors may not harass, oppress, or abuse you or any third parties they contact.

For example, debt collectors may not:

use threats of violence or harm;
publish a list of consumers who refuse to pay their debts (except to a credit bureau);
use obscene or profane language; or repeatedly use the telephone to annoy someone.

False statements. Debt collectors may not use any false or misleading statements when collecting a debt. For example, debt collectors may not:

falsely imply that they are attorneys or government representatives;
falsely imply that you have committed a crime;
falsely represent that they operate or work for a credit bureau;
misrepresent the amount of your debt;
indicate that papers being sent to you are legal forms when they are not; or
indicate that papers being sent to you are not legal forms when they are.

Debt collectors also may not state that:

you will be arrested if you do not pay your debt;
they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so, and it is legal to do so; or
actions, such as a lawsuit, will be taken against you, when such action legally may not be taken, or when they do not intend to take such action.

Debt collectors may not:

give false credit information about you to anyone, including a credit bureau;
send you anything that looks like an official document from a court or government agency when it is not; or
use a false name.

Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, collectors may not:

collect any amount greater than your debt, unless your state law permits such a charge;
deposit a post-dated check prematurely;
use deception to make you accept collect calls or pay for telegrams;
take or threaten to take your property unless this can be done legally; or
contact you by postcard.

What control do you have over payment of debts?

If you owe more than one debt, any payment you make must be applied to the debt you indicate. A debt collector may not apply a payment to any debt you believe you do not owe.

What can you do if you believe a debt collector violated the law?

You have the right to sue a collector in a state or federal court within one year from the date the law was violated. If you win, you may recover money for the damages you suffered plus an additional amount up to $1,000. Court costs and attorney' s fees also can be recovered. A group of people also may sue a debt collector and recover money for damages up to $500,000, or one percent of the collector' s net worth, whichever is less.

Where can you report a debt collector for an alleged violation?

Report any problems you have with a debt collector to your state Attorney General' s office and the Federal Trade Commission. Many states have their own debt collection laws, and your Attorney General' s office can help you determine your rights.

http://www.justia.com/bankruptcy/docs/fair-debt-collection.html

For People on Debt Management Plans: A Must-Do List

2007-10-24T04:25:00.000-07:00

Reputable credit counseling organizations employ counselors who are certified and trained in consumer credit, money and debt management, and budgeting. Those organizations that are nonprofit have a legal obligation to provide education and counseling.

But not all credit counseling organizations provide these services. Some charge high fees, not all of which are disclosed, or urge you to make "voluntary" contributions that can cause you to fall deeper into debt. Many claim that a debt management plan is your only option before they spend time reviewing your financial situation, and offer little or no consumer education and counseling. Others misrepresent their nonprofit status or fraudulently obtained nonprofit status by misrepresenting their business practices to regulators.

The Federal Trade Commission (FTC), the nation's consumer protection agency, and some state Attorneys General have sued several companies that called themselves credit counseling organizations. The FTC and the states said these companies deceived consumers about the cost, nature, and benefits of the services they offered; some companies even lied about their nonprofit status. Several of these companies are now going out of business. Similar companies also may be shutting their doors, even though they haven't been sued by the FTC or the states. That could be of special concern if you have a debt management plan with one of these companies.
Must-Dos for Anyone With A DMP

Organizations that advertise credit counseling often arrange for consumers to pay debts through a debt management plan (DMP). In a DMP, you deposit money each month with a credit counseling organization. The organization uses these deposits to pay your credit card bills, student loans, medical bills, or other unsecured debts according to a payment schedule they've worked out with you and your creditors. Creditors may agree to lower interest rates or waive certain fees if you are repaying through a DMP.

The FTC has found that some organizations that offer DMPs have deceived and defrauded consumers, and recommends that consumers check their bills to make sure that the organization fulfills its promises. If you are paying through a DMP, contact your creditors and confirm that they have accepted the proposed plan before you send any payments to the organization handling your DMP. Once the creditors have accepted the DMP, it is important to:

* make regular, timely payments.
* always read your monthly statements promptly to make sure your creditors are getting paid according to your plan.
* contact the organization responsible for your DMP if you will be unable to make a scheduled payment, or if you discover that creditors are not being paid.

You need to be aware that if payments to your DMP and creditors are not made on time, you could lose the progress you've made on paying down your debt, or the benefits of being in a DMP, including lower interest rates and fee waivers. Although creditors may have forgiven late payments that you made before you began the DMP, the creditors may be unwilling or unable to do so if payments are late after you have enrolled in a DMP. If you fall behind on your payments, you may not be able to have your accounts "re-aged" again (reported as current), even if you start a new DMP with a new counselor. That means your credit report will have "late" marks and you will rack up late fees, which, in turn, will lead to more debt that could take longer to pay off.
If Your Credit Counselor Has Gone Out of Business

What happens to your DMP if the credit counseling company that managed your debts shuts down? A counseling agency that is going out of business may send you a notice telling you that your DMP is being transferred to another company. Or it may tell you that you need to take some action to keep your financial recovery on track. If a government agency has filed an action against your credit counseling company, you may get a notice from a third party. If you discover that the organization handling your DMP is going out of business you need to:

* contact your bank to stop payment if you are making your DMP payments through automatic withdrawal.
* start paying your bills directly to your creditors.
* notify your creditors that the organization handling your DMP is going out of business. Consider working out a payment plan with your creditors yourself. Ask if they will give you a reduction on your interest rate without a DMP.
* order a copy of your credit report. Check for late payments — or missed DMP payments — that may result from the company going out of business. If you see "late" notations you don't expect, call the creditor immediately and ask that the notation be removed. Understand that they have no obligation to do it.

If payments are late because the organization handling your DMP has failed to make scheduled payments, the consequences can be just as devastating as if you failed to make payments to the DMP. If you do not act quickly to make arrangements with your creditors, you could incur late charges that increase your debt, lose the lower interest rates associated with the DMP, and have "late" marks on your credit report.
Important Questions to Ask When Choosing a Credit Counselor

If the organization you were working with shuts down, you may be able to work a payment plan on your own directly with your creditors. But if you decide that you need additional credit advice and assistance, or if you are considering working with a credit counselor for the first time, asking questions like these can help you find the best counselor for you.

1. What services do you offer? Look for an organization that offers a range of services, including budget counseling, savings and debt management classes, and counselors who are trained and certified in consumer credit, money and debt management, and budgeting. Counselors should discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems now and avoid others in the future. An initial counseling session typically lasts an hour, with an offer of follow-up sessions. Avoid organizations that push a debt management plan as your only option before they spend a significant amount of time analyzing your financial situation. DMPs are not for everyone. You should sign up for a DMP only after a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money.

If you were on a DMP with an organization that closed down, ask any credit counselor that you are considering what they can do to help you retain the benefits of your DMP.
2. Are you licensed to offer your services in my state? Many states require that an organization register or obtain a license before offering credit counseling, debt management plans, and similar services. Do not hire an organization that has not fulfilled the requirements for your state.
3. Do you offer free information? Avoid organizations that charge for information about the nature of their services.
4. Will I have a formal written agreement or contract with you? Don't commit to participate in a DMP over the telephone. Get all verbal promises in writing. Read all documents carefully before you sign them. If you are told you need to act immediately, consider finding another organization.
5. What are the qualifications of your counselors? Are they accredited or certified by an outside organization? If so, which one? If not, how are they trained? Try to use an organization whose counselors are trained by an outside organization that is not affiliated with creditors.
6. Have other consumers been satisfied with the service that they received? Once you've identified credit counseling organizations that suit your needs, check them out with your state Attorney General, local consumer protection agency, and Better Business Bureau. These organizations can tell you if consumers have filed complaints about them. The absence of complaints doesn't guarantee legitimacy, but complaints from other consumers may alert you to problems.
7. What are your fees? Are there set-up and/or monthly fees? Get a detailed price quote in writing, and specifically ask whether all the fees are covered in the quote. If you're concerned that you cannot afford to pay your fees, ask if the organization waives or reduces fees when providing counseling to consumers in your circumstances. If an organization won't help you because you can't afford to pay, look elsewhere for help.
8. How are your employees paid? Are the employees or the organization paid more if I sign up for certain services, pay a fee, or make a contribution to your organization? Employees who are counseling you to purchase certain services may receive a commission if you choose to sign up for those services. Many credit counseling organizations receive additional compensation from creditors if you enroll in a DMP. If the organization will not disclose what compensation it receives from creditors, or how employees are compensated, go elsewhere for help.
9. What do you do to keep personal information about your clients (for example, name, address, phone number, and financial information) confidential and secure? Credit counseling organizations handle your most sensitive financial information. The organization should have safeguards in place to protect the privacy of this information and prevent misuse.

http://www.justia.com/bankruptcy/docs/debt-management-plan-must-do-list.html

Make bankruptcy your last option by learning all you can about how to keep creditors off your back and eliminate your debt in the shortest amount of t

2007-10-19T05:46:00.000-07:00

Are you currently experiencing severe financial difficulties and/or considering bankruptcy? Maybe you have arrived at this site because you realize that high credit card interest charges are only driving you further into debt, or you are looking for information about how to stop persistent creditors and debt collectors from calling you at all hours of the day and evening, or youare simply searching for credit counseling information that will help you create a debt rudction plan and start getting out of nightmarish and overwhelming debt.

If you're struggling with debt, you're not alone. Millions of people live under the daily stress and pressures of being in debt. Recent research on the personal debt situation in America reveals that over half of all Americans use credit cards as a short term loan, and have at least one credit card that they do not pay off in full each month. This research also reveals that the average debt as a percentage of household income is around 8.0%, although for people earning less than $40,000 a year, this percentage is in the double digits. Other facts worth noting, are that the average interest rate charged by credit cards is 14.71% and the average household has more than $8,000 in credit card debt. An $8,000 debt at a rate of 18% interest will take more than 25 years to repay and cost more than $24,000 to service. The most recent Federal Reserve study showed that 43% of U.S. families spent more than they earned and that on average, Americans spend $1.22 for each dollar they earn. This leads over 1.5 million people to seek credit counseling or guidance for their financial situation each year.

Here you will find articles, tips and information about dealing with bankruptcy, credit counseling, debt consolidation loans, the consequences of filing for bankruptcy, ways to start taking back control of your financial situation, how to eliminate debt without going bankrupt, steps you can take to keep creditors and bill collectors off your back, what to say when you contact creditors, how to negotiate with creditors, how to avoid costly mistakes when using credit counseling services, bankruptcy law, your rights as an individual, and so much more.

If you can't find the information you are looking for here, please bookmark this site and visit us again soon, as we plan to keep adding new content on a regular basis.

http://www.credit-wz.com/bankruptcy/more-bankruptcy-articles.html

How to Start a Business Chapter 7 Bankruptcy

2007-10-18T05:41:00.000-07:00

In that your company is filing for bankruptcy protection make sure to answer all the questions as though you are the company, not yourself. Make notes if you have any questions.

IMPORTANT NOTE: Make certain that you have the proper authority to file bankruptcy for your company and to sign the necessary documentation. We will need a copy of the corporate resolution, or partnership agreement granting that authority.

Please follow the directions below. The General Review of Financial Status form helps us guide you through the complex documents which must be completed before a bankruptcy can be filed. All information is provided so that we can better assist you. Please note that this firm does not represent you until you have actually paid a retainer fee and signed a retainer agreement. So do not give out our name to your creditors until you have made the necessary arrangements with our office. If you have an emergency please call our office to discuss special arrangements. PLEASE NOTE: If you have any problems with any of the links please call our office.

In a very few cases bankruptcy is not the best option at the time. We will help you determine what other options might be available. But, in the great majority of cases, bankruptcy is the only option left. It is our job to help you throughout the entire process and to make sure you understand your rights and the complex legal issues involved with bankruptcy. Please review some comments that our clients have shared with us about our services.

You will be expected to pay one-half of your retainer at the time of this initial 2-hour meeting. Once you have paid a portion of the retainer you may refer all creditors and collection companies to our office.

http://www.dianedrain.com/Bankruptcy/BankruptcyQuestionnaires/BKQuestionnaireCo.htm

Get Personal Loan, Home Loan, Car Loan after Bankruptcy at Low Rate of Interest!

2007-10-17T05:32:00.000-07:00

Apart from what it was that you had in mind about the hot potato which is home loan refinance in the past, this feature you are about to read is certain to astound you. 30-year fixed loan payments came to a 30-year low point last June when they plummeted below 5 %. It`s understandable why many property owners had excited notions as they rushed out to refinancing online their recent loans, hoping to put a little more money in their wallets. Although interest rates have since risen again, hovering around 6.25 %, they`re still improved from five years ago when rates were more than 7 percent.

Many professionals concur that interest rate decrease is the primary motive for most equity refinance decisions. Even little variations in interest rates can warrant a significant difference. Expecting a 2 or 3 % drop before remortgage is an old rule of thumb that no longer applies but these days a one-quarter up to 3/4 % rate decrease deserves consideration on condition that a proprietor intends to live in the house long enough to recover the costs.

Nevertheless, second mortgage may not be a wise route for each homeowner. Apart from lower interest, an important point ought to be the price of refinancing, including closing expenses, the mortgage amount, in addition to the duration of the mortgage. For example, a person that is a decade into their 30-year home loan might not desire to mortgages refinance for a new 30-year mortgage, leaving them forty years to pay their mortgage.

What if your credit is worse than when you first bought the home? In case you have made delayed payments for your loan, credit cards, or car loans from the time you purchased your house, your credit status has possibly dropped and you may not qualify for the lowest interest. refinancing in that case might in fact raise your payments and/or interest rather than lower them.

Conversely, there are people that choose to refinance home in order to get money from the closing in order to pay larger interest rate credit cards or other debts (at 6 % vs. 17 percent), or those who want to convert their mortgages from 30-year fixed terms to fifteen year terms in order to develop ownership quickly and slash their interest bill. In addition, proprietors who have private mortgage coverage (PMI) because they made an initial payment of below 20 % might refinancing home loan in order to rid themselves of mortgage coverage if they have built up equity on their houses. In any of these cases, mortgage refinance makes sense.

mortgage financing your property can benefit in the event that you find yourself excessively far in debt and you want a way out. refinancing home can give you the cash you need in order to minimize these debts as well as provide you with the opportunity to pay them. This also improves your credit score since once you refunding, you`re left with a solitary monthly installment that you could easily manage. Just ensure you aren`t charged any hidden charges when you`re changing the loan.

For relevant details, simply proceed to...

1. Lowest Home Loan Refinance`s informative summary

2. VA Home Loan Refinance Program overall briefing

3. Compare Rate Home Loan Refinance: Home Loan Refinance Compare`s complete summary

4. Basic Home Loan Refinance Time facts
Do you feel your chances of getting approved for a loan after filing bankruptcy is bleak. Wait for a while, bankruptcy loan can help you even after filing for bankruptcy, getting approved for funds after a bankruptcy is not that daunting as you think.

RE-establishing your credits is quite important. You can avail of personal loan, home loan, car loan after bankruptcy at low rate of interest and simultaneously work towards replenishing your credit scores. Provided, you make some good down payments on your bankruptcy loan you don’t get low interest rate, as a home loan after bankruptcy lender will foresee risk in lending loans to a bankrupt. A good size down payment will give him an assurance that his loan payments will be made on time.

Get Personal Loan, Home Loan, Car Loan after Bankruptcy at low interest rate!

Save some extra cash for a Down Payment:

Save money for a down payment. Your down payments ease down the risk and reduce the total amount financed. If a bankruptcy loan is rated high, a down payment will affect the monthly payments and get you better loan deal.

Personal loan, car loan or home loan after six months:

After six months of bankruptcy discharge, as it is unwise to apply for a loan immediately after discharge. Wait for some period of time and then, apply for a loan after bankruptcy. When possible, hold off on financing home. Give a break of six months. During this time, apply for a secured credit card and make timely payment. This will improve your credit score, and qualify you for better rates. Tough competition among uk lending companies in the market compels these lenders to offer special home loan, personal loan and car loan packages for those who have been through bankruptcy. As far as you have been discharged of your debts, you can go right ahead and submit that personal loan application.

Fix your credit problems:

If you’re having difficulties finding a co-borrower, and are still hunting for lower interest rate, fix your credit scores. Apply, for a new line of credit which would range from secured credit card, store card and others, make your repayments on time and keep very little or no balances on your account, so this way you would have unknowingly worked on repairing your credit scores as well.

Follow the above tips, then, there’s no stopping you from availing Personal loan, Home loan, Car loan after bankruptcy. Go get it! Reach out to online professionals who can help you with your credit repair and simultaneously fund your needs.

Kirthy Shetty expert author: Free advice on filing bankruptcy Filing Personal Bankruptcy

Filing Personal Bankruptcy
While reading the composition which concludes here about the subject of home loan refinance you saw for a fact how very simple plus uncomplicated it really can be.

Article Source: http://EzineArticles.com/?expert=Kirthy_S

Bankruptcy Law Passes House

2007-10-16T05:30:00.000-07:00

Bankruptcy change legislation passed Congress last week in a 302 to 126 vote and was signed into law 4/20/05 by President Bush (Whitehouse Press Release). The changes introduced by this bill are tough on consumers and good for banks. Banks are having their cake and eating it too, as the hackneyed-cliché goes.

This bill has been in the works for eight years. President Clinton vetoed the measure back in 2000 and the banks have been fighting ever since then to get it back on the table. Success for them is at hand, unfortunately for us.

The idea behind amending the bankruptcy law is to stop people from taking advantage of the system. Stop those who would abuse the law by hiding their assets in states where exemptions allow this protection and then claiming bankruptcy, thereby shedding their debt but still holding on to equity.

The reality is that the vast majority of those people seeking bankruptcy protection are not defrauding the system. These are legitimate claims of people who need a fresh start which is what bankruptcy law should be about.

Harvard Law School professor Elizabeth Warren, in her bankruptcy study found that the 90% or more of bankruptcies are still filed by people who get sick, get laid off, or get divorced, not by abusers. Even the industry can only show that 3% of those that go bankrupt might be abusing the system, still, this new law would harm all debtors.

Here are a few highlights of how bankruptcy law is affected:

Chapter 7 means test
Those seeking Chapter 7 must comply with income requirements. That means that they must make less that their state's annual household median income and have less than $100 per month available to repay their debts otherwise they will be forced to do a Chapter 13 bankruptcy. In Chapter 13, debtors restructure their debt and pay much of it back thereby losing that fresh start.

Increased cost of going bankrupt
|Bankruptcy lawyers will be charging more fees because there will be more paperwork and time in court. Also, the attorneys must protect themselves because the new law has reforms that could possibly hold them liable if their clients commit fraud.

Cost of living
The IRS (Internal Revenue Service) guidelines will determine allowed monthly spending for food, housing, clothing, etc. After taking these into account, the amount remaining must be used for debt repayment.

Forced credit counseling
Bankruptcy filers must seek credit counseling. This will also increase costs since they must pay counselors. However, I believe this requirement, and other aspects of the law, will crush the credit counseling industry. For one, people will simply want to fulfill this requirement so they can go bankrupt, and two, banks will reduce the "fair share" to counselors. Fair share is the percentage of the debt paid to counselors for helping to get consumers to pay. That's why I sometimes refer to credit counselors as voluntary debt collection agencies since they're paid by creditors. Banks will reduce this amount further because they know that people won't be able to avoid paying the debt back so why show they pay more to have it collected.

http://www.debtsmart.com/pages/article_law_passes.html

Attorneys Blog Provides Plain Talk About Bankruptcy

2007-10-15T06:01:00.000-07:00

People looking for straight answers about bankruptcy, including the new laws going into effect this fall, can find them online at http://www.legalhelpers.com/blog/.

Richard K. Gustafson II, www.legalhelpers.com/legal_helpers/profile_r_gustafson.html, a partner with Legal Helpers, P.C., began writing a semi-daily blog on the firms personal bankruptcy information and assistance site, www.LegalHelpers.com.

In his blog, Gustafson writes in an informal style that will simplify bankruptcy and the law in plain language, he said. Besides drawing on his experiences from more than 11 years as a bankruptcy attorney, the blog will also explain parts of the new bankruptcy laws that go into effect Oct. 17, 2005.

I'll be blogging about personal bankruptcy; how it works, the impact it has on people's lives, and Ill touch on many of the human factors involved in bankruptcy, such as the emotional impact of how it affects people and their families, he explained in his first entry.

His writing will also reflect his deep-rooted sense of ethics, coupled with an uncompromising commitment to aggressive representation of his clients, he said.

Gustafson has advised and represented thousands of consumer bankruptcy clients during his 11-1/2 years as a bankruptcy attorney and is a manager of the bankruptcy practice group at Macey & Aleman.

Gustafson grew up in Wichita Falls, Tx. graduating from the University of the South in Sewanee, Tn., in 1990 with a B.A. in Political Science and Economics and earned his J.D. from Chicagos DePaul University College of Law in 1993.

Gustafson joined Macey & Aleman in 2000, being named a partner at the end of 2003, after working as an associate attorney in the Law Office of Peter F. Geraci. He became a member of the Illinois Bar in 1993, of the California Bar in 1997 and of the Indiana Bar in 2001. He currently lives in Evanston with his wife and two children.

http://www.mad4money.com/Attorneys_Blog_Provides_Plain_Talk_About_Bankruptcy.html

Federal Bankruptcy Laws

2007-10-13T01:29:00.000-07:00

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

Business Bankruptcy Laws

2007-10-13T01:27:00.000-07:00

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

Atlanta Bankruptcy Lawyers

2007-10-13T01:21:00.001-07:00

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

Second Mortgage Loans After Bankruptcy

2007-10-13T01:19:00.000-07:00

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 Little Advice for Those Considering Chapter 7 Bankruptcy

2007-10-13T01:18:00.001-07:00

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

What Happens to Property in a Chapter 7 Bankruptcy Case?

2007-10-13T01:16:00.000-07:00

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

Greatest Bankruptcy Weapon: The Automatic Stay

2007-10-13T01:15:00.000-07:00

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

Get Your Credit File Back In Order After Bankruptcy!

2007-10-13T01:14:00.000-07:00

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.

Credit Card Bankruptcy

2007-10-13T01:12:00.000-07:00

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

New Bankruptcy Laws

2007-10-13T01:11:00.000-07:00

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

Bankruptcy Red Flag Filings

2007-10-12T04:37:00.001-07:00

In many ways, bankruptcy laws are designed for lawyers. One leading creditor’s attorney claimed that some type of fraud in bankruptcy filings occurs in almost 100% of all cases! Changes in bankruptcy laws often favor creditors, and it seems that the idea is to make filing for bankruptcy more difficult. Ordinary citizens will need more information and better tools to prepare for possible missteps in bankruptcy, while some lawyers will see big benefits.

There are many “red flags” that wave in front of creditors and trustees, causing suspicion of fraud in bankruptcy filings.

A debtor never should try to lie his or her way into a bankruptcy court. The costs and risks are too high, no matter what pressure or stress you may feel. With creditors becoming increasingly suspicious and maybe even vicious, you should be aware of the arguments creditors will use to accuse you of fraud, even if you did not purposefully do so. Such debtors look especially for two big red flags:

* Delaying tactics. Trustees are impatient with both debtors and creditors who seem to be trying to delay proceedings. Creditors simply may be attempting to annoy, while debtors may be trying to hold on to property or slowly distribute assets.
* Transfers of assets within one year of filing, especially to friends or family, often for little or no value.

Specific evidence creditors may use to oppose discharge of a debt include:

* Repeated bankruptcy (“frequent filers”)
* Lack of usual records and accounts
* Blank spaces or repeated incomplete answers on schedules and filing forms
* Many cash dealings rather than credit
* Amendments to items such as prior year tax forms
* Very high debts with no stated income to match
* Odd bank actions, such as bounced checks
* An attorney known to be unscrupulous in bankruptcy (ask about any bar complaints and double-check)
* Run-up debts on credit cards before filing
* False social security numbers
* Incorrect credit references
* Owning a small business that shows low inventory and high debts
* Use of limited partnerships or other business forms to protect assets
* Use of mortgages and equity in several rental properties, with no apparent attempt to pay the mortgages
* Payment of high expenses, leases or at-home salary
* Many creditors contacting the Trustee about the filing
* Transfers of property interests through quit claims
* Claims of large gambling losses
* Large insurance policy claims or absence of property having been insured
* Tax returns, prior bankruptcies, lawsuits not listed as being filed by or against the debtor
* Savings, annuities or IRAs suddenly used up with no explanation
* The same attorney representing the debtor and anyone receiving assets from the debtor
* Complicated business dealings with the same people, in several business forms (corporations, partnerships, and sole proprietorships).

While these actions may be popular “evidence” for creditors, such measures do not necessarily indicate fraud. People do have the right to manage their debt to avoid maximum liability. The assumption now seems to be, unfortunately, that a debtor in bankruptcy is just trying to get away with something.
It more important than ever to plan a bankruptcy filing carefully, so that you can offer as much evidence as possible that you are honest, efficient and accurate in your finances.

http://www.debthelp.com/kc/99-bankruptcy-red-flag-filings.html

Bankruptcy for Military Service Personnel

2007-10-12T04:36:00.001-07:00

The Servicemembers’ Civil Relief Act (SCRA) was passed to thwart attempts to sue or to file liens against members of the military in the United States.

The protection that SCRA grants to military personnel also benefits many individuals who are associated with servicemen and -women. This makes a great deal of sense for a military that relies on young members, whose families may be helping with the financial sacrifices that go along with military service. Anyone who is a co-signer, or who shares debt with a military member, will have some protection from suits and judgments, as well.

SCRA accomplishes three things that result in making bankruptcy filing unnecessary or unattractive for military personnel:

1. It prevents the filing of a default judgment by a creditor.
2. It requires that notice be given to a military member about his or her accounts.
3. It can wipe out judgments and garnishments against service members. These very broad powers even can stop evictions.

The SCRA protections apply to all active duty military personnel, as well as many reservists and Guard members. Of course, the law is only good if a military member actually uses it. Fortunately, a serviceperson can enjoy the benefits of SCRA simply through the submission of a sworn affidavit to any court considering a lawsuit against him or her.

While SCRA goes to great lengths to protect those in uniform, it does eventually run out. At the longest, it can be in affect for up to 60 days after a military member’s discharge.

SCRA protection highlights:

Mortgages Not only can foreclosure on one’s home be halted, but a new payment plan also may be ordered by a court.

Rent Servicemen and –women and their dependents are protected against eviction, as long as rent is not more than $1200 per month.

Interest Rates Service members may be protected against interest rates over six percent, and may request that rates not exceed that amount.

Insurance If the premium on insurance has not been paid for a certain period of time and cancellation normally would be imminent, SCRA will help to prevent such action.

Credit Report Creditors’ rights to report negative items if a service member is unable to pay is limited, based on difficult conditions related to his or her service.

The backbone of SCRA is the right to stop actions against military personnel. Simply by writing to a court and providing some proof of one’s inability to attend a hearing, case, lawsuit or deposition, he or she cannot be punished or lose any credit and debt rights. The court almost certainly will order that any action to collect a debt be stopped until the service member is available.

One common problem addressed by courts is whether or not to allow a service member to keep residency in a particular state while he or she is posted elsewhere. Under SCRA, residency often is upheld. This can affect rights of homestead or even bankruptcy rights that are unavailable to non-military personnel.

In so many ways, protection under SCRA is better than filing for bankruptcy. In addition to the above considerations, many military personnel are concerned about possible damage to their careers due to bankruptcy.

There is one basic qualification that must be met by personnel to qualify for SCRA protections; their service must “materially affect” their ability to pay. In short, a well-paid general usually cannot take advantage of the act. Instead, the SCRA is there for those who serve and sacrifice in every aspect of their lives, including succumbing to financial hardship.

http://www.debthelp.com/kc/95-bankruptcy-military-service-personnel.html

Bankruptcy, Your Spouse, and Divorce

2007-10-12T04:35:00.001-07:00

Bankruptcy outcomes usually depend on state law. When there are issues concerning spousal support, alimony, or property settlement involved, however, bankruptcy courts are relying increasingly on federal law instead.

Rather than just a simple bankruptcy filing, these cases may require several visits to lawyers specializing in different areas of the law, or even lawyers in more than one state depending on the location of spouses and property. In such cases the court may not only overlook state law, in fact, but may even overlook personal agreements made between the former spouses, as well.

* Alimony While most states west of the Mississippi allow alimony, many states to the east also have spousal support that is called ‘temporary alimony’. Neither of these debts can be discharged in bankruptcy, because promises between spouses take precedence over financial hardship and bankruptcy, according to Congress.

* Community Property Community property laws exist in nine states: Arizona, California, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. All other states adhere to what is called “equitable distribution”. In those states with community property laws, a spouse who does not file for bankruptcy still can face creditors’ claims if the other spouse files. In such a case, the non-community property of the filing spouse is utilized first to pay the debts, but if this is insufficient, community property can be used. The rules for exemption of property do still apply, however, and they may protect community property.

* Separate Property Even in states with community property laws, some separate property (such as property acquired individually, especially before marriage) cannot be taken by creditors when only one spouse files.

* Credit Reports Credit reports quickly can turn into a battle of forms. “Co-signing” for a spouse who has filed bankruptcy previously sometimes can result in a note on the innocent spouse’s credit report, especially if the filing spouse listed his or her share of a joint debt. Even if one spouse does not file, it is crucial that both spouses carefully monitor their credit reports. They both should argue for complete accuracy – there is no reason why bankruptcy necessarily should poison both reports.

Many states now have laws that protect spouses, especially after divorce, from discrimination in credit reporting due to the other spouse’s actions. By contacting your state’s Attorney General’s Consumer Affairs office, you can file a written complaint and may find relief.

* Mortgages One of the largest problems concerning bankruptcy and divorce is when one spouse gets the house, and subsequently lists the mortgage in bankruptcy. If both spouses took out the loan together, then it is likely that both spouses (even if they split up during the bankruptcy) remain liable on the loan.

In bankruptcy cases involving couples, financial strain can lead to emotional strain, so protect your assets as well as possible. Communicate openly about your finances, and consider seeking separate legal advice to protect your separate assets.

http://www.debthelp.com/kc/91-bankruptcy-your-spouse-and-divorce.html

Being Pushed to Bankruptcy?

2007-10-12T04:33:00.000-07:00

Sometimes financial hardships become so difficult that filing bankruptcy seems to be the only alternative, but there probably also are nagging doubts that come with such an important decision. Unfortunately, these doubts should be taken seriously, because nowadays there are many people who will try to sell you prematurely on the idea of bankruptcy. Remember this: every time a bankruptcy is filed, someone is making money.

General problems that can lead to bankruptcy include personal crises, employment changes, family pressures, health concerns, and especially financial uncertainty. This uncertainty is that terrible feeling of doubt: Is the light at the end of the tunnel really the end of the tunnel? Could the light actually be an oncoming train?

Instead of being pushed into bankruptcy by a professional, you need to be brought to it inevitably by your problem. You should not file just because a friend, family member or respected leader says that it is ok. Do not blindly agree to file without knowing what you are doing.

The two most common types of personal bankruptcy filings are Chapter 7 and Chapter 13. Chapter 7 is used to end the cycle of debt, often having been caused by a personal or medical crisis, while Chapter 13 is used to save a home and to repay debts.

Listed below are five common reasons that cause individuals to file for bankruptcy. For each, we will consider whether or not there are alternate solutions to the problem.

1. “Enough!”

Creditors are quite good at making day-to-day life unbearable, and non-stop calls border on harassment. Option: You have a right to end creditor phone calls! Consult an attorney for more information.

2. “They’re threatening my wages!”

Option: State and federal law gives you a right to maintain a minimum amount of money to pay your bills based on low-income standards. Speak with an attorney to determine what can - and what cannot be - garnished. Never sign an agreement to garnish wages without talking to a lawyer or legal aid clinic.

3. “I am going to lose my car!”

Option: Most lenders do not actually want to repossess a car. Contact a credit counseling company to work out a payment plan. Furthermore, even if your car was repossessed, this would be much less damaging to your credit than would be a bankruptcy!

4. “I don’t have medical insurance!”

The single largest financial cause of bankruptcy is medical expenses, and this is reason for concern. Even with insurance, hospital costs have been going up almost 20% every year. Option: Before filing to discharge medical debts, consider state insurance for low-income individuals. If this will not work, every hospital should have a case worker who generally knows alternative funding sources, and usually is very willing to negotiate debt and payments. Additionally, hospitals are required under law to provide a certain percentage of their gross revenue every year to those who cannot afford to pay.

5. “My company is downsizing, and I am going to be unemployed!”

Option: In the event of a job loss, you immediately should seek professional help to plan your budget for at least the next three months. There are programs you may be interested in that will provide you with training in a new skill, and some even offer compensation. Additionally, you can visit a vocational counselor to inquire about state jobs, and potentially could become employed (insist on benefits!) within one week!

Filing bankruptcy always should be a last resort. While filing as a reaction to life’s curveballs might be understandable, it may not be in your best interest to do so. Do not allow yourself to become convinced to file before you explore other options to reduce existing debt.

http://www.debthelp.com/kc/83-being-pushed-bankruptcy.html

Creditor Strategies to Collect After Bankruptcy

2007-10-12T04:32:00.000-07:00

Even if you are just about to file bankruptcy, or even if your debt already has been discharged, there still are creditors who will pursue claims as far as possible. No matter what, always make your finances a matter of protecting your family, interests, and conscience.
Many large companies actually have in-house collections, because they do no want to pay the fees associated with traditional collections. Such companies tend to be fairly responsive to bankruptcy warnings and even may offer a quick negotiation to eliminate your debt.

If your account has been listed with an external collector, on the other hand, it is likely that your debt has been increased dramatically by the costs and fees of collection. The collection agents want their money, period. If you file for bankruptcy, it usually will take one full week for your creditors to be notified, and then they must stop harassing you.

When told that someone will be filing bankruptcy, most collection agencies will act as though they do not care, but they do. Most collection agencies work off a script, and some even may lie to collect their money. You might hear that your debt is not dischargeable or that they have an attorney who will fight the listing of the debt. For the most part, this simply is a game of nerves.

Just because you receive a letter from a lawyer regarding a particular debt does not mean that the lawyer is involved personally. Usually, such letters come from a paralegal or secretary who works for the attorney, and unless it is a very large debt, most lawyers do not actually go to court. If a law office does secure judgment on your debt, that judgment is just as dischargeable after bankruptcy as it was before the judgment. Because so many people actually file bankruptcy for fear of being sued, this topic is addressed in another debthelp.com article.

http://www.debthelp.com/kc/89-creditor-strategies-collect-after-bankruptcy.html

DebtHelp Guide to Bankruptcy

2007-10-12T04:31:00.000-07:00

Bankrupty is an option for consumers and businesses in desperate need of financial relief. It is a process by which a court either eliminates one’s debts or approves a repayment plan under the discretion of the court. The four most common types of bankruptcy filings are Chapter 7, Chapter 11, Chapter 12, and Chapter 13.

Some bankrupcies are considered “liquidations”, in which property is seized and sold in exchance for an elimination of debt. Other bankrupcies are “reorganizations”, in which some debt still must be repaid in accordance with court supervision after the bankruptcy.

Chapter 7

Chapter 7 bankruptcy is liquidation bankruptcy. It can be filed both by consumers and businesses, with a main of goal of discharging debt. The filer’s property is taken and sold to pay off as much unsecured debt as possible, and most or all of what remains generally is discharged.

Not all of your property will be liquidated, however. The court will leave you with enough property to utilize in order to re-start your finances, and some assets automatically are exempt. In addition, if you have very little property to begin with, the court may deem you a “no asset” case, and all of your property will be exempt. In such circumstances, creditors may not receive any payment at all, and you may enjoy a clean financial slate.

Some types of secure debt also can be discharged, although this is much more rare. As a filer, you have a choice to handle your secure debt either by allowing your creditor to repossess your propety, continue payments as part of a plan with the agreement of your creditor, or to pay your creditor the amount equal to your secured property.

Chapter 7 is one of the most popular forms of bankruptcy filing, and most people choose this form if they are able to do so. If your income is considered too high, you may not be able to file Chapter 7. The entire process usually takes between three and six months.Chapter 13

Chapter 13 is the other most popular form of bankruptcy filing. Unlike Chapter 7, 13 is reorganization bankruptcy and is for use only by consumers. In Chapter 13, you agree to a repayment plan on your unsecured debt under the discretion of the bankruptcy court. Some of your creditors may end up being paid in full, some may not be paid at all, and some may receive partial payment. The amounts that you will be required to pay are determined by the court through a number of different factors including income and amount of the debt.

For debt that is secured, the filer may be able to pay missed payments in lieu of repossesion.

Chapter 13 often is not preferred in comparison to Chapter 7, because it requires you to pay your debt instead of discharging it. However, many consumers are not eligible for Chapter 7, so 13 is their best bet. In addition to too high of an income, you might not be eligible for Chapter 7 because of past bankruptcy filing. In order to be eligible for Chapter 13 you must have sufficient income to pay off some of your debts. Your secured debt must be less than $922,975, and your unsecured debt must be less than $307,675. Thousands of people file for Chapter 13 bankruptcy every year.

Chapter 11

Like Chapter 13, Chapter 11 also is reorganization bankruptcy. While it is available both to consumers and to businesses, it is utilized almost entirely by businesses because it is expensive and complicated. It is a good option for individuals with debts more than that of the Chapter 13 limits, or who have many assets.

Chapter 12

Chapter 12 is reorganization bankruptcy, as well. It is like Chapter 13, but designed specifically for farmers and fisherman whose debt is made up of at least 80% occupational costs. Chapter 12 offers the power to eliminate liens, as well.

Is bankruptcy right for me?

No matter which form of bankruptcy you are considering or for which you may be eligible, there are careful considerations that you should make before embarking on the road to filing. While bankruptcy can be a very useful way to rid oneself of, or to manange, suffocating debt, it always should be considered a last resort for anyone in need of a financial solution. You should explore every other available option before filing bankruptcy. It is not a “quick fix”, but is instead a very serious blemish on your credit history and financial livelihood.

On the other hand, it can discharge your debt, or grant you the ability to pay only what your situation allows. With the “automatic stay” policy in effect upon filing, creditors will be prohibited from harrassing and further trying to collect for you.

You should consider the types of debts that you owe to determine whether or not bankruptcy is worthwhile for you. Some forms of debt very rarely (or never) are dischargable, such as tax debt, student loans, and child or spousal support. If your debt is made up of such types, look for another solution. Individuals consumed with credit card debt, on the other hand, often have much luck with discharge through bankruptcy.

Bankruptcy can do wonders for consumers and businesses in difficult financial decisions, but filing is not a decision to take in stride. Consider your options, and if bankruptcy is the only viable alternative, then work with an attorney who can help you to choose the liquidation or reorganization filing that is best for you.

http://www.debthelp.com/kc/131-debthelp-guide-bankruptcy.html

Differences in State Bankruptcy Laws

2007-10-12T04:30:00.000-07:00

Some creditors have offices all across America, and this makes a debt as mobile as computerized data. Recently a Florida resident, for example, deposited money in a bank that happened to have offices in California. Unfortunately, there was a judgment against this man in California, and the California bank allowed a seizure against the Florida bank account.

As our technologies and financial systems become ever more entwined, it is getting difficult to make any one state’s laws work for you, even when they should. For anyone who has the freedom to plan far enough ahead, choosing a tax-friendly, consumer-oriented, best-for-bankruptcy state could be a great advantage.

One little known fact about bankruptcy is that eligibility to file is not based on United States citizenship. In fact, the bankruptcy code allows not only citizens but also anyone who is domiciled, doing business, residing in, or owns property in the U.S. to file for bankruptcy. This is in part because filing takes place in federal court, not state court.

So why does it matter in which state you reside? Because bankruptcy courts apply much of the state’s own property laws in making judgments. While this currently is changing, there still is reason to search for an attorney or counselor who is knowledge about your state’s bankruptcy laws.

Sometimes even being on the right side of a state line still is no protection for managing a debt through bankruptcy. There are so many conflicting laws between states that it may be more expensive to fight a debt than to give in, in some cases. However, this should not be the case, and there are ways to protect your assets from mega-businesses. As a first step, you can avoid banking with interstate banks, especially when the bank is headquartered in a location where court judgments can create liens against your accounts.

When it comes to understanding bankruptcy laws, you must use the knowledge of applicable state laws to get the best results. Many paralegal programs and bankruptcy programs available over the internet just do not provide all the necessary information. Search out an experienced, competent attorney or counselor in your local area.

The location of your property has much to do with where you should file for bankruptcy. If you own homes in more than one state, it is possible to pick the state in which you will file. In there is a move in progress, you may have to file in the state from which you are moving. Legal advice is essential to anyone thinking of changing their residence if bankruptcy is involved. Allegations of escaping creditors can cause very serious problems.

A new federal bankruptcy law has tried to stop people from moving to states where they get more benefits from filing bankruptcy. The new rule sets a two-year residency standard to file in a state. Besides, even if you were to file in State A while your real estate is located in State B, most bankruptcy courts probably would use the laws of State B, anyway.

Finally, it is worthwhile to look at the state-by-state rates of bankruptcy. The results for the ten most common (creditor friendly) and the ten least common (debtor friendly) filings indicate the need for bankruptcy in many states. For example, states that are debtor friendly have lower rates, while those that are creditor friendly have higher rates. States that allow more shielding of assets from creditors do not have to use bankruptcy as often.

http://www.debthelp.com/kc/93-differences-state-bankruptcy-laws.html

Negotiated Debt Agreements and Discharge

2007-10-12T04:29:00.000-07:00

Some people follow all of the right advice for managing debt and still end up in over their heads. Because bankruptcy - at least in theory - leaves no stone unturned, agreements negotiated right before filing have the ability to be really harmful to a debtor.

People need to consider realistically how likely bankruptcy is in their future. As other debthelp.com articles discuss, this ability to plan for bankruptcy unfortunately is complicated by some people who try to make money off of others’ financial hardships.

While this means that you must be very careful in negotiating agreements before succumbing to bankruptcy, this is not meant to take away options. In fact, debt negotiation done correctly either can eliminate the need for bankruptcy completely, or can make a Chapter 13 filing work better for you. Chapter 7 comes with the biggest risk for separately negotiated agreements -- it keeps a debt alive that could have been discharged.

A good lawyer will do your paperwork properly. A great lawyer also will provide you with financial planning advice about your debt both during and after bankruptcy. Try to go with the latter. In particular, avoid bankruptcy “mills” – companies with hundreds of clients that all are treated indiscriminately.

Non-Discharged Debts

Non-discharged debts are debts that still are owed after the bankruptcy court discharges a case, and may include taxes, child support, student loans or hidden assets. Such items should be considered individually through separate agreements, so as to be sure that all possibilities of discharging them have been explored (for example, student loans may be discharged if “undue hardship” can be proven), and that a Chapter 13 plan includes a realistic budget of all debts. Since Chapter 13 can take up to five years to be complete, it is essential that these non-dischargeable, big-ticket items are dealt with appropriately. Save yourself years of headaches by having everything in writing.

Securing Debt Agreements

Some negotiated agreements actually provide a security interest in property. These agreements, especially property settlements in particular, may assume a non-dischargeable nature in court. In the event of financial duress, seek out a lawyer’s advice regarding property and debt agreements, and possibly bankruptcy in the future.

Reaffirmation Agreements

People often file bankruptcy to gain control over their debts and personal affairs. Surprising, many of these people are interested in repaying old debts after they have been discharged, even if they do not have to do so. An agreement of this nature is called a “reaffirmation agreement”, and it may require bankruptcy court approval even if entered into as a matter of conscience. Without approval, there is a chance that the whole bankruptcy process can become a sophisticated “cherry-picking” of creditors: good creditor, bad creditor….

Be aware that after discharging your debts in bankruptcy some creditor(s) may attempt to revive a debt by offering you some type of “deal”. While repaying old debts can be a great way to repair your credit, remember that these discharged debts no longer are considered “debts” at all. Therefore, beware of reaffirmation agreements that have been proposed by creditors. For more information on this topic, see “Creditor Strategies to Collect.”

http://www.debthelp.com/kc/87-negotiated-debt-agreements-and-discharge.html

Refinancing After Bankruptcy

2007-10-12T04:28:00.000-07:00

If you have filed for bankruptcy, you might be amazed at how quickly you are able to buy a new home or refinance an existing mortgage thereafter. In other debthelp.com articles, we discuss the different types and benefits of bankruptcies. Just as it is important to select the best form of bankruptcy and a great bankruptcy attorney, it also is important to have a plan for after the bankruptcy is discharged (a final order comes from the court).

Believe it or not, there is no law against refinancing almost immediately after filing, or in many instances, right after discharge from a bankruptcy. In determining the best plan of action for managing finances, one must consider the power of the Trustee to protect creditors, and also acknowledge that bankruptcy never should be used to keep available resources hidden. Anyone who plans on filing for bankruptcy to protect a home and to refinance the current mortgage needs to work with the best legal advisor he or she can afford.

About one year after a bankruptcy filing, you should begin to see more attractive borrowing rates. By refinancing relatively quickly, there is a likely possibility that you will improve your credit score within two years, and consequently will reduce your interest rate further. Home equity should increase within the same timeframe.

How much will the bankruptcy cost you in terms of refinancing? A bankruptcy filer almost certainly will be classified as a sub-prime borrower for approximately two years after filing. Many lenders do not lend within that period, and those who do usually demand at least 3% above prime for the average low credit score and modest equity.

There are certain loan programs that have built-in time limits for refinancing or taking out a new mortgage. An FHA mortgage is one of the most popular federal loan programs, and it allows refinancing one year after filing Chapter 13 (not discharge) if trustee and mortgage payments have been made on schedule. Fannie Mae requires a two year wait.

Generally, limits on how soon a refinancing can occur favors Chapter 13. Since Chapter 7 seeks to wipe out debt while Chapter 13 is for repaying debts, it is sometimes even possible to refinance before a discharge in Chapter 13 is granted.

The ability to refinance immediately after filing usually depends on the credit score and the equity in a home (generally 30% or more).

Replacing an old mortgage with one that is new is in many ways a fresh start. If you are about to file bankruptcy, work with an attorney or financial counselor in order to plan for life after the bankruptcy.

http://www.debthelp.com/kc/81-refinancing-after-bankruptcy.html

Understanding the New Bankruptcy Rules

2007-10-12T04:24:00.000-07:00

Changes to our national bankruptcy laws in 2005 have made it easier than ever to cast doubt on transfers of valuable property that have occurred within a year of a filing for bankruptcy. The Trustee, or a creditor, can allege within one year of filing that you attempted to avoid bankruptcy through fraudulent means, which may make your situation even worse. Always keep in mind: the Trustee is there for the bankruptcy court and for the creditors. This is why anyone making large transfers before filing needs expert advice and representation.
Fraudulent transfers, or “fraudulent conveyances”, can be charged even if there never was any real intent to cheat anyone on the part of the debtor. Many people who face credit crises simply give away some of their assets, often to family members and others who have tried to help them. However nearly every transfer made “under the table” is subject to examination, so it is much better to transfer openly.

Before filing for Chapter 7 or Chapter 13 bankruptcy, debtors are required to list all valuable transfers for the previous year. Failure to list a transfer is a violation of the law, and also can cause suspicion about the legality of the transfer. If a fraudulent transfer is discovered after discharge, the bankruptcy even can be vacated

There are two types of fraudulent transfers: constructive fraud, and actual fraud. Constructive fraud is fraud that was meant to relieve oneself of more hardship but not to cheat creditors outright. It can be evidenced if the debtor already was out of money when the property was disposed or if the transfer appears to be a gift, and if the transfer is unfair to a creditor to whom money is owed. Actual fraud is just that – fraud. Both types of transfers result either in a return of property, or a payment of the value of the property. Actual fraud also can result in jail time.

The bankruptcy court can be very unforgiving with fraudulent transfers. Often a home is a debtor’s largest asset, and if a trustee finds fraud, he or she may go after home equity. In other words, bankruptcy may tragically end up consuming the asset for which you sought protection through filing in the first place.

Luckily, there is a strong defense against constructive fraud. It must be proven that there has been a “reasonably equivalent” transfer in value, and sometimes this just is not the case. This is where bankruptcy lawyers often earn their weight in gold.

Finally, keep in mind that most states also have the power to examine your prior year transfers to search for fraud. Be sure that you are ready to pass the test. If you are transferring property and are considering bankruptcy, or if you have transferred property that is now uncovered and in question, a good lawyer will work to protect your transfer, and perhaps even the recipient of your “innocent” favor.

http://www.debthelp.com/kc/85-understanding-new-bankruptcy-rules.html

Security Interests - The Basics

2007-10-11T02:08:00.000-07:00

As a condition to getting a loan, a business is usually required to offer up assets as "security" (or "collateral"). The borrower signs a security agreement giving the lender the power to foreclose on the assets if the business defaults on the loan.

Examples of business assets in which lenders will take a security interest include:

* Personal property:
o Equipment
o Vehicles
o Office furnishings
o Inventory and proceeds from sales
o Accounts receivable
o Stocks
o Crops
o Patents, copyrights, trademarks and other intellectual property rights
o "Choses in action" ( potential rights that have not yet matured, such as a claim in a lawsuit)
* Real property:
o Commercial real estate
o Interests in leases
o Options to purchase
* Fixtures (improvements such as built-in cabinets that started out as personal property before becoming a part of real property)

Depending on the type of asset, there are different requirements for creating a security interest. With personal property, for example, the security agreement itself may be enough to create a security interest in collateral that is described in the agreement. Rules vary greatly from state to state.

In a business setting, a lender will want its security interest to have priority over other creditors.

With personal property, the lender files what"s called a "UCC-1 form" with the Secretary of State in the state where the collateral is located (and sometimes with local counties or townships, as well). This public record puts other creditors on notice that there is a lien on the assets that will have priority over any other security interests given on the same collateral.

With real property, lenders will insist on a mortgage or a deed of trust. The lender records this document in the county or township where the real property is located. In most cases, the first document to be recorded has priority over documents that are recorded later.

http://debtor-creditor.lawyers.com/creditors-rights/Security-Interests---The-Basics.html

Small Business Bankruptcy Relief

2007-10-11T02:07:00.000-07:00

Your business is in financial trouble. How do you figure out whether bankruptcy is necessary or helpful for your situation? Ask yourself the following questions:
Is the business a corporation, partnership or proprietorship?

Corporations and partnerships are legal entities separate from their shareholders or partners, and can file Chapter 7 or Chapter 11 bankruptcy in their own right.

But be aware that in a partnerships Chapter 7 bankruptcy, the trustee can sue the general partners of the partnership if the partnerships assets are insufficient to pay partnership debts. As a result, partners may be facing a suit by a well-funded trustee suing for the benefit of all creditors of the partnership.

Get good advice before contemplating a partnership bankruptcy.

Proprietorships are just an extension of the owner and cant file bankruptcy alone. The proprietor must file the bankruptcy, as the property and debts of the business are really just one form of assets owned by the proprietor. The individual owner may file a Chapter 7, Chapter 11 or Chapter 13 bankruptcy (if the debt limits are met).
Should the business be reorganized or liquidated?

To answer this question, you have to know what has caused the problems the business now faces and the prospects for change.

Reorganization cant create a market, increase gross revenue or make up for a poor fit between the skills that are available and the skills that are required to run the business. But reorganization can:

* Free up cash from paying old debt to finance current operations
* Make it easier to reject leases or contracts that are no longer advantageous (like an expensive facility lease or unfortunate equipment purchase)
* Prevent the loss of vital assets or cash to creditor collection actions.

In between Chapter 7 liquidation and reorganization, a Chapter 13 or Chapter 11 bankruptcy could provide breathing space for you to sell the business as a going concern or jettison assets in something other than a fire sale. The resulting profit (called proceeds) could pay taxes or unpaid salaries. Selling the business could mean ongoing jobs for your work force under new ownership. The bankruptcy could then be converted to a Chapter 7 bankruptcy, or dismissed if bankruptcy protection is no longer needed. The court will probably make you pay creditors from sale profits in order to get the bankruptcy case dismissed.
How much of the business debt is secured?

The division of debt between secured and unsecured guides what reorganization can do for your business. Secured debt is a creditors claim that is secured by a lien of some type in your property, either by your agreement or involuntarily, such as with a court judgment or taxes.

Purchase money security interests (a security interest the seller of goods takes at the time the goods are purchased) can be avoided or stripped down to the current value of the purchased goods in Chapter 11 and 13 bankruptcies. Creditors with purchase money security interests in goods with lower value almost never file a lawsuit to enforce their interest in the goods.

In bankruptcy planning, its important to know if judgment liens have been perfected (recorded with the right governmental agency), as secured debts are totaled separately from unsecured debts in calculating your eligibility for Chapter 13 bankruptcy. With a Chapter 13 proceeding, these debts can be stripped down to the value of the assets to which the lien attaches.

Recording a tax lien gives a creditor a lien on all of the taxpayers real estate and personal property. It can be eliminated in Chapter 13 bankruptcy if there isnt any equity in the property. But tax liens can even reach retirement savings and 401(k) plans that are beyond the grasp of other creditors.

In most secured bank or SBA loans, the borrower gives the lender a security interest in all the borrowers personal property. This is called a blanket security interest because the lien blankets all the borrowers assets. (Personal here means everything but real estate, not personal as opposed to business assets.) Even things like accounts receivable and intellectual property can be covered by a blanket security interest. The agreement may also give the creditor a lien in assets purchased after the security agreement is signed.

In Chapter 11 or Chapter 13 bankruptcies, the lien may be stripped down to the value of the property at the time the bankruptcy is filed. Since a lender has rights in the items themselves and in any profit from their sale, you may not be free to sell the asset and pocket the profits, or even use the profits to pay other business debts. Spending the profits without the lenders permission may be a form of fraud, creating a debt you cant rid yourself of in bankruptcy.
Does management have the resources and desire to engage in the reorganization process?

Bankruptcy reorganization in Chapter 11 requires a significant time commitment on the part of owners and managers. The bankruptcy bargain is that, in exchange for stopping collection of debts and other bankruptcy protections, you provide full disclosure of your companys financial condition to creditors and the court, both at the beginning of the case and on a monthly basis thereafter.

While the bankruptcy is ongoing, you owe whats called a fiduciary duty to your creditors, which means you must keep them highly informed and be very honest and protective of their interests before your own interests.

A reorganization can drain an already stressed business, because management personnel must take time to participate in bankruptcy proceedings. And the legal expenses are significant.

Most reorganizations fail, usually for lack of a real plan to solve the underlying business problems.
Is the business one that you could start up again after a liquidation of the current business?

Businesses that require little capital, have few assets, or are really just extensions of the owners skills and personality are ones that it may not pay to reorganize. The owners may be better off liquidating the business, in or out of bankruptcy, and starting over in a fresh business entity. This can be a complex task and requires good professional advice to do correctly.

A Chapter 7 may be the best choice when:

* The business has no future
* There are no substantial assets or qualities that cannot be reproduced, or
* The debts are so overwhelming that restructuring them isnt feasible.

A Chapter 7 bankruptcy can provide a corporation with an orderly liquidation under the direction of the trustee and at no expense to shareholders. Creditors are assured that they will be paid to the extent of the available assets and the priority of their claim.

As former management, youre assured that the assets that are available go (after the expenses of the bankruptcy) to pay taxes for which you may be individually liable.

Deciding whether bankruptcy is appropriate for your business may be one of the most difficult decisions youll ever make. But having information about what could happen to you and your business in the bankruptcy process can help.

http://bankruptcy.lawyers.com/Small-Business-Bankruptcy-Relief.html

Salvaging a Troubled Business

2007-10-11T02:06:00.000-07:00

Businesses in financial crisis are often swirling in chaos. Managers get consumed with putting out fires. But when you're moving from one emergency to another, it's easy to lose track of the road ahead.

Many managers make common mistakes, from letting go of the wrong people to misleading employees and creditors to not carefully watching their money.

Managers frequently focus on cutting costs, but deciding that the accounting folks are expendable is a frequent error. Tracking financial data is crucial when you're trying to save a business. If the accounting personnel contributed to the financial crisis, it's better to hire replacements instead of sweeping out all the financial folks. Of course, where there's employee fraud, complete incompetence, intentional misreporting or other grievous woes, they've got to go.

New accounting personnel, no matter how competent, need current employees to explain the existing systems, location of records, types of reports and any idiosyncrasies of the bookkeeping system. Without time to transition from old to new, the new number crunchers may have to do more forensic accounting - trying to reconstruct what has happened in the past - than regular financial reporting. Without good accounting folks, a business can easily lose the ability to get timely, accurate financial information.

Whether a restructuring takes place out of court or through a reorganization plan in bankruptcy, keeping on good terms with company creditors is not only wise but could be the glue that makes a bad financial situation better. Even unfavorable news is better than no news at all: if no one's returning your creditors' calls, they will likely assume there's something more dastardly going on than them simply not getting paid.
Don't Lie

What's worse than not returning calls, however, is giving misleading information. The person who wants to stay in business usually thinks that any admission of financial distress is a bad idea, and that it's better to either say nothing or pass along inaccurate information in the hope that credit won't dry up. The theory seems to be that lack of information merely leads to nothing worse than speculation. But misleading information can be infinitely damaging, leading to distrust when the truth is eventually discovered.

Giving accurate financial information is crucial to keeping a good relationship with creditors, and increases the odds of a successful reorganization.

Employees should be treated with no less respect than creditors. Rumors of financial distress within an organization are sure to trigger a mass mailing of resumes.

Management in a financially challenged business should examine each segment of the company to see what can be changed or eliminated in order to better the odds of surviving.

Those parts of the business that drain more from the bottom line than they contribute can be labeled "bleeders." Not staunching that negative cash flow - cutting costs and positions - could lead to the company's demise.
Spend Wisely

Managers should also turn a careful eye to overhead, which includes things like travel, insurance, rent and utilities. Are there any sacred cow expenditures that could be sacrificed? For example, prestige alone may not be a good enough reason to remain in a high-rent district.

With financial woes, expect creditors to want cash for any deliveries.

A struggling business also needs to stash some cash to cover potential bankruptcy costs, such as trustee and appraiser fees and deposits to keep utilities going.

There are a few ways to come up with the cash - borrowing, selling securities, liquidating property that isn't essential, keeping proceeds of accounts that would otherwise be turned over to a secured lender, and so on. But beware that some of these cash-producing methods are subject to the claims of third parties, and others may involve fraud or securities violations.
Don't Be Dumb

While raising cash is crucial, avoid doing anything that gives rise to graver problems than just being broke.

Since companies pay government agencies from payroll withholdings, the temptation in financially troubled times is to treat such agencies as involuntary lenders. But those responsible face liability, and the unpaid taxes can later trip up a Chapter 11 bankruptcy reorganization plan.

The pressures of debt can cause you to make decisions that may appear smart in the short term, but later turn out to be unwise. Think ahead.

By avoiding common mistakes, debtors have a fighting chance of avoiding bankruptcy. But even if you do end up in a Chapter 11 bankruptcy, your odds of recovery are better.

http://bankruptcy.lawyers.com/Salvaging-a-Troubled-Business.html

Commercial Mortgage Foreclosure

2007-10-11T02:04:00.000-07:00

If youÂ?re behind on your commercial building payments, your lender can declare a default and foreclose on your property.

When you took out your building loan, you gave your lender a mortgage (called a deed of trust in some states). This created a security interest in your property that gives the lender the right to start foreclosure proceedings to force a sale of your property if you fail to pay your loan according to terms.

The good news is that lenders donÂ?t like foreclosures because they're costly and difficult. The bad news is that lenders wonÂ?t hesitate to foreclose on past due loans if they arenÂ?t given better options.
What To Do First

The chances are that your commercial building loan is only a part of bigger financial problems. DonÂ?t stick your head in the sand and wait for more bad news. Develop a game plan to deal with the situation immediately. Your options include:

* Reorganizing, consolidating or even eliminating debts through proceedings that may include bankruptcy
* Trying to work out a compromise with your lender
* Selling your building

Talk to a bankruptcy lawyer or someone who professionally counsels people with credit problems. You shouldnÂ?t have any trouble in setting up a free consultation.

A lawyer should explain available options to you at your first meeting. The lawyer should also explain how he or she would expect to be paid. Lawyers who specialize in these matters have ways to work out payment arrangements that their clients can afford.
Negotiating With Your Lender

Talk to your lender about a compromise, such as:

* Different payment terms (lower payments over a longer period of time)
* Forgiving some late payments now in exchange for a longer period of payment
* Lower payments in exchange for a higher interest rate over a longer payment period
* Refinancing at a lower interest rate (to make payments lower)

Lenders are not always willing to compromise. The best chance you may have to strike a compromise is to have a lawyer representing you in the negotiations.
Deeds In Lieu of Foreclosure

If you canÂ?t reach a compromise, consider offering to convey the property back to the lender voluntarily by a Â?deed in lieu of foreclosureÂ? (sometimes called Â?deed in lieu of forfeitureÂ?).

A lender may be hesitant to accept a Â?deed in lieuÂ? if state law provides a borrower with a right to redeem property for a certain period of time (e.g., up to a year later).

YouÂ?ll definitely want a lawyer involved in negotiating the details with your lender.

A deed in lieu of foreclosure will still show up on your credit report, which could make it difficult to buy property in the future.
The Foreclosure Process

State laws vary greatly, but the foreclosure process generally involves:

* The lender giving you a written notice of default, which will likely come by certified mail
* Your being given a period of time after proper notice pay the lender the amount required to cure the default and to reinstate your loan
* The lender electing to proceed with foreclosure under available remedies, which may include:
o Pursuing a judicial foreclosure by filing a lawsuit to obtain a court order to sell the property
o Pursuing a non-judicial foreclosure by following procedures spelled out in your mortgage (or deed of trust) that allow a trustee to foreclose on and sell your property without a court order
* After the required time has elapsed, your being given a notice of foreclosure sale
* A public sale being held by auction where the highest bidder can buy your property
* If no one bids enough, the lender itself buying the property by submitting a credit bid based on the amount you own on your mortgage
* If the lender ends up with the property, it being sold by private sale at a later date
* If you have not vacated the property by the time of the foreclosure sale, an unlawful detainer lawsuit being filed to evict you

At any point during these proceedings, you are usually in the position to keep your property if you pay off the loan and pay for foreclosure costs.

You may have defenses that you can assert. You can also stop a foreclosure temporarily by filing bankruptcy, which imposes an automatic stay that prevents a lender from proceeding forward without permission from the bankruptcy court. However, you have to be realistic in assessing your options since the laws in all states give lenders many rights when it comes to protecting their security interests.

http://real-estate.lawyers.com/commercial-real-estate/Commercial-Mortgage-Foreclosure.html

Dealing with Your Customer's Bankruptcy

2007-10-11T02:03:00.002-07:00

Every business that extends credit has had to deal with customers filing bankruptcy. If you happen to be a newly established small business owner who has just received a notice that one of your has filed or is going to file bankruptcy, you are probably so mad you cant see straight.

The debtor has the benefit of an automatic stay immediately upon filing a bankruptcy petition. That stops you from taking any further action to try to collect the debt unless or until the bankruptcy court decides to the contrary.

What can you do in this situation?
File a Proof of Claim

You should at least take steps to file a timely file a Proof of Claim in the bankruptcy.

In the usual case, creditors will receive a notice of the bankruptcy that will have a form for the proof of claim on the backside of the notice. The notice should provide you with instructions on how to fill out the form and give you a deadline by when it must be filed. By filing a Proof of Claim, youll be included with the list of creditors who may eventually end up being paid a slice of the remaining pie of the debtors assets.
Is There Someone Else You Can Go After?

If you were lucky enough to have someone personally guarantee your account, making a demand on that person would naturally be the next step.

Are there any co-debtors? The most common example may be spouses who are jointly and severally liable on the same debt (meaning that you can go after one or both of them for the whole amount owed). Even if the spouses happen to be divorced and only one of them ran up the debt obligation, its possible that they may both be held liable for the debt if they were married at the time either of them signed the paperwork.

Are there any possible remedies against the management or owners of any business that owes you money? This is something you should explore with legal counsel.
Are There Other Alternatives?

There are many different options you can pursue as a creditor in a bankruptcy. They include:

* Petitioning the bankruptcy court for relief from the automatic stay. This may encourage the debtor to make arrangements for paying you in an amount at least equal to the value of your collateral.
* Request permission from the bankruptcy court to continue with any lawsuit youd already started at the time the bankruptcy was filed. A judgment creditor (someone who has a judgment against the debtor) may be repaid sooner than a general unsecured creditor.
* Petition to have the bankruptcy dismissed, if the debtor isnt complying with the bankruptcy rules or the orders of the bankruptcy court
* Petition the bankruptcy court to create or be a part of a creditors committee to oversee the operations of the bankruptcy debtor
* Petition to have a bankruptcy trustee appointed if the debtor filed a Chapter 11 proceeding that generally doesnt require that a trustee be appointed
* Sue other creditors to try to force them to give money back to the bankruptcy proceeding if they were paid in preference to other creditors. A preference is a preferential payment that a debtor makes on old debt within three months of filing bankruptcy (or within a year if the payment is made to a family member or some other insider who has a special relationship with the debtor).
* Petition the bankruptcy court to deny a discharge of the debt in whole or in part, if you think the debtor has acted fraudulently.

When Should a Creditor Pursue One of These Remedies?

In deciding if you want to pursue the matter further, consider:

* How much money is involved? If this is but one of your accounts out of hundreds, it may not be worthwhile pursuing beyond filing a proof of claim unless substantial dollars are involved.
* Is there enough money involved to hire a lawyer to represent you in bankruptcy court? The bankruptcy laws are so complicated that most lawyers steer completely clear of bankruptcy court. The average businessman will be a fish out of water in bankruptcy court. If your business is organized as a separate legal entity like a corporation, you may also have to hire a lawyer to represent your company in court.
* Are you a secured or unsecured creditor? If you are an unsecured creditor (meaning you dont have any collateral you can take if the debt isnt paid) and the debtors liabilities greatly exceed the assets, you may be pursuing a worthless cause. If you have a security interest in collateral that still has some value, it may be worth going the next step.
* How much time can you afford to spend on the matter? Even if you hire an attorney, pursuing a debtor in bankruptcy is going to require a lot of your time. You may have to attend hearings and possibly even participate on a creditors committee.
* What kind of bankruptcy is involved? The likelihood of a creditor getting paid is going to depend on whether or not the debtor is simply giving up the ghost and trying to obtain a discharge of all his or her debts (for example, with a Chapter 7 bankruptcy) or is trying to restructure or reorganize debts and eventually pay them off (for example, a Chapter 11 or Chapter 13 bankruptcy).

http://bankruptcy.lawyers.com/commercial-bankruptcy/Dealing-with-Your-Customers-Bankruptcy.html