Financial Health?
Unpaid bills are a symptom, and a disease at once, and they speak volumes about your financial health. But you are not the only one suffering from this disease that is spreading its wings across the length and breadth of the country. Commonly seen amongst middle income families, and the worst thing would be to let the problem (the debt) grow. The consequences of financial health are unprecedented.
End of the Road?
No, almost never. There are solutions to cure your financial ill-health and many of the other pages of this website will guide you through ways of tackling it. Everything from improving relationships with your creditors, to reducing your debts, and helping you manage your money—the whole range of problems sorted out for you, right here. These are solutions that will make your today comfortable, and your tomorrow even better.
How Do I Know if I am Affected?
Your account books are a good place to start checking. Unpaid bills, repeated calls from bill collectors; signs that you are probably in some sort of a financial trouble. If you're having difficulty stretching your paycheck to pay monthly bills, you need to act Now!
Action Plan
Review your situation in detail. Check if all the pending amounts against your name valid and there are no disputes on any of the debts. Contact your creditors and inform them about your situation. Explain the reasons because of which you are unable to make timely payments. If your creditor understands your situation it puts you in a relatively comfortable situation even though you still need to be very careful. Keep in mind that there are laws in place to protect you from any sort of harassment on the part of the creditor.
Self help: First of all, stop all the excess unnecessary spending and budget your expenses. Itemize your expenses as necessary and optional. Create a spending plan which will at least ensure that you don’t accumulate any more debt. Start using your savings to pay back your debts, and also looking for any additional resources that you can think of. Additional sources can be Governmental assistance such as unemployment compensation, food stamps, Medicaid, and others.
Credit Counseling: As for the new Bankruptcy law Credit counseling is a must. Also called Consumer Credit Counseling Service, these agencies employ professionals who will provide you with the required guidance to develop an action plan to end your financial crisis. Credit counseling agencies can also get into talks with your creditors, if need be in trying to achieve some sort of a settlement, or an understanding.
Personal Bankruptcy: The decision to file for bankruptcy must be taken after much thought and serious consideration. You should take the plunge into this complex world of forms, rules and regulations if you are certain of it, and have been advised to do so. Two types of Bankruptcy options available are Chapter 13 and Chapter 7. With the new stricter law in place, there are certain criterions that one needs to fulfill in order to file for bankruptcy. Once you’ve met these criterions, the next difficult step is to choose an attorney. Attorneys at BankruptcyHome.com bring with them years of expertise in this field enough to assess the solution that meets your specific need.
Prevention Better Than Cure
It is of course never to late to stop. You need to put an immediate end to spending that exceeds your earning, regular credit purchases especially if you are able to make only the minimum payment on the monthly credit card debt. Think of it this way; will you be able to pay your next month's bills if you didn't have your job?
If your answer is no, then try our free online evaluation tool which will tell you whether you need to file for bankruptcy or not. From thereon, our attorneys will ensure that your interests are secured, your ill-health a story of the past, and you are ready to start afresh.
http://www.bankruptcyhome.com/regainfinancialhealth.htm
Tuesday, May 22, 2007
Life after Bankruptcy
Is There Life After Bankruptcy?
Yes, of course there is. As much as it may seem that it is an impossibility, it is very much possible to rebuild you financial life—start from scratch. But the answer to this question doesn’t end with a simple ‘yes’.
Bankruptcyhome.com
BankruptcyHome.com is the answer to that first question! Our role is not just as an advisor or a guide but also as someone who will provide you with a practical solution customized to your specific situation. Our objective goes beyond just explaining regulations, filling out forms, and shutting out creditors and credit.
A leading provider of bankruptcy related services and solutions, BankruptcyHome.com has become a trusted name with people who are determined to end an existing or impending financial crisis. Our determined efforts will ensure that you are freed of debt, and the harassment that you may have suffered because of it. Furthermore, we will see to it that not only does the crisis come to an end, but that you have a fresh start.
Our competitive services are geared towards benefiting you the most.
Filing Bankruptcy
You may think you don’t need it, but you can never know when those unpaid bills grow so long that within your limited resources you are unable to settle them. Don’t know whether you should or not? BankruptcyHome.com will answer even that fundamental question, with the help of the online evaluation tool.
Life After Bankruptcy
A lot more that just your money and yours assets are at stake when you are in a financial crisis. You need to find a solution that doesn’t cause any more damage to your self-respect, your honor than bankruptcy has already caused. Remember, a bankruptcy will stay on your credit record from the time of filing until the roll over period of the credit reporting agency. BankruptcyHome.com has for you all the information you will need about filing for bankruptcy, and the life after it.
Be confident that the solutions provided by our attorneys are farsighted and tailor-made. No two situations are comparable, and even though the type of bankruptcy applied may be the same there may be a difference in approach. As has been said before, the process of filing for bankruptcy is not as simplistic as it seems. And BankruptcyHome.com excels in the nuances involved.
We work within your budget to create a program that will solve your crisis, by reducing the debt amount you owe, and the years that you would otherwise have to spend paying it back. This is your opportunity to regain faith in yourself, and with the help of a professional financial coach plan every step you take until you reach the goal – that day when your debt is totally wiped out.
Our team of professional experts with extensive knowledge and experience in the fields of law, accounting, financial planning, insurance, debt and budget management, and psychology. We will make sure the most severe situation.
Contrary to the popular myth, a negative history on your credit report is not the end of the road. Having filed for bankruptcy does not leave a permanent black mark on your credit report. It is not going to be difficult to remove the blot from your own mind, but you need to do that. Be sure that your learning from this experience is positive and helps you in the long run. We are fully aware of the fact that the first two or three years after bankruptcy are going to be difficult times. Yet, these are not going to be impossible times and the advice offered by the attorneys is the best way forward.
Our attorneys will provide you all the moral and legal support you need, help you get out of your financial crisis and ensure a better tomorrow.
http://www.bankruptcyhome.com/lifeafterbankruptcy.htm
Yes, of course there is. As much as it may seem that it is an impossibility, it is very much possible to rebuild you financial life—start from scratch. But the answer to this question doesn’t end with a simple ‘yes’.
Bankruptcyhome.com
BankruptcyHome.com is the answer to that first question! Our role is not just as an advisor or a guide but also as someone who will provide you with a practical solution customized to your specific situation. Our objective goes beyond just explaining regulations, filling out forms, and shutting out creditors and credit.
A leading provider of bankruptcy related services and solutions, BankruptcyHome.com has become a trusted name with people who are determined to end an existing or impending financial crisis. Our determined efforts will ensure that you are freed of debt, and the harassment that you may have suffered because of it. Furthermore, we will see to it that not only does the crisis come to an end, but that you have a fresh start.
Our competitive services are geared towards benefiting you the most.
Filing Bankruptcy
You may think you don’t need it, but you can never know when those unpaid bills grow so long that within your limited resources you are unable to settle them. Don’t know whether you should or not? BankruptcyHome.com will answer even that fundamental question, with the help of the online evaluation tool.
Life After Bankruptcy
A lot more that just your money and yours assets are at stake when you are in a financial crisis. You need to find a solution that doesn’t cause any more damage to your self-respect, your honor than bankruptcy has already caused. Remember, a bankruptcy will stay on your credit record from the time of filing until the roll over period of the credit reporting agency. BankruptcyHome.com has for you all the information you will need about filing for bankruptcy, and the life after it.
Be confident that the solutions provided by our attorneys are farsighted and tailor-made. No two situations are comparable, and even though the type of bankruptcy applied may be the same there may be a difference in approach. As has been said before, the process of filing for bankruptcy is not as simplistic as it seems. And BankruptcyHome.com excels in the nuances involved.
We work within your budget to create a program that will solve your crisis, by reducing the debt amount you owe, and the years that you would otherwise have to spend paying it back. This is your opportunity to regain faith in yourself, and with the help of a professional financial coach plan every step you take until you reach the goal – that day when your debt is totally wiped out.
Our team of professional experts with extensive knowledge and experience in the fields of law, accounting, financial planning, insurance, debt and budget management, and psychology. We will make sure the most severe situation.
Contrary to the popular myth, a negative history on your credit report is not the end of the road. Having filed for bankruptcy does not leave a permanent black mark on your credit report. It is not going to be difficult to remove the blot from your own mind, but you need to do that. Be sure that your learning from this experience is positive and helps you in the long run. We are fully aware of the fact that the first two or three years after bankruptcy are going to be difficult times. Yet, these are not going to be impossible times and the advice offered by the attorneys is the best way forward.
Our attorneys will provide you all the moral and legal support you need, help you get out of your financial crisis and ensure a better tomorrow.
http://www.bankruptcyhome.com/lifeafterbankruptcy.htm
Monday, May 21, 2007
Choosing a Bankruptcy Attorney
When faced with such a serious financial problem that you have to file for bankruptcy, perhaps the smartest and safest thing to do would be to let the professionals guide you through the rough waters. But once you have taken the decision to consult a bankruptcy attorney, you might find yourself lost about where to find a qualified one.
* Free Bankruptcy Evaluation
* Bankruptcy Myths Busted
* Chapter 13 basics
Looking up an Attorney in The Yellow Pages
The Yellow Pages is a helpful source with a vast amount of information. Attorneys are usually categorized by their field of specialization. Looking under the sub-heading of ‘Bankruptcy Attorneys’ should give you a list of attorneys who could help you out. Even so, it would be a good idea to use the Yellow Pages just as a starting point to familiarize yourself with the attorneys near you.
Recommendations by Other Attorneys
Another way to go about finding yourself a qualified bankruptcy attorney is by referral from those who are more familiar with the field. If there are other attorneys you know, they might be able to make some helpful recommendations.
Ask Your Family and Friends
Unfortunately, because of duty of confidentiality lawyers cannot share the information about their current or past clients unless they have permission to do so. It would have been ideal to be able to talk to clients to find out the competence of a lawyer, but since that is not always possible you can try talking to close and trusted family and friends who might guide you in the right direction. These recommendations from experiences family members and friends will give you an insight into the lawyer’s competence and also the relationship he or she shares with their clients.
Contacting one of our attorneys and make it about our attorneys…they all offer free consultations, all are experienced, need to fill out our evaluation etc.
Contacting one of Our Attorneys
Do not be hasty in your choice of an attorney. Consider if the attorney makes you comfortable and is considerate about your problem. Try to see if the attorney/staff are organized, punctual and work well together. Last but not the least, you should also ensure that matters about fees and payment are settled.
The first consultation with our bankruptcy attorney is free. At this time the client should honestly explain his or her situation to the attorney and try to gauge if they are comfortable with the attorney and their staff. At the same time our attorney will give you feedback on your situation and the options thereon.
When conversing with our attorney, find out how long he or she has been in practice, what the specifics of their specialization are, approximately how many cases they have handled and what your expectations should be from the attorney in terms of representation. Also find out if the attorney will be personally attending to your case and that it will not be passed on to a junior lawyer or staff. Ask as many questions as you need and make sure you are comfortable with the fact that you are appointing them as your bankruptcy attorney.
Though the fee of an attorney is an important consideration, do not make that the only factor when making a choice. The bottom-line is your level of comfort and the confidence you feel toward the attorney. Give us an opportunity, and be rest assured that your case is in safe hands.
http://www.bankruptcyhome.com/choosinganattorney.htm
* Free Bankruptcy Evaluation
* Bankruptcy Myths Busted
* Chapter 13 basics
Looking up an Attorney in The Yellow Pages
The Yellow Pages is a helpful source with a vast amount of information. Attorneys are usually categorized by their field of specialization. Looking under the sub-heading of ‘Bankruptcy Attorneys’ should give you a list of attorneys who could help you out. Even so, it would be a good idea to use the Yellow Pages just as a starting point to familiarize yourself with the attorneys near you.
Recommendations by Other Attorneys
Another way to go about finding yourself a qualified bankruptcy attorney is by referral from those who are more familiar with the field. If there are other attorneys you know, they might be able to make some helpful recommendations.
Ask Your Family and Friends
Unfortunately, because of duty of confidentiality lawyers cannot share the information about their current or past clients unless they have permission to do so. It would have been ideal to be able to talk to clients to find out the competence of a lawyer, but since that is not always possible you can try talking to close and trusted family and friends who might guide you in the right direction. These recommendations from experiences family members and friends will give you an insight into the lawyer’s competence and also the relationship he or she shares with their clients.
Contacting one of our attorneys and make it about our attorneys…they all offer free consultations, all are experienced, need to fill out our evaluation etc.
Contacting one of Our Attorneys
Do not be hasty in your choice of an attorney. Consider if the attorney makes you comfortable and is considerate about your problem. Try to see if the attorney/staff are organized, punctual and work well together. Last but not the least, you should also ensure that matters about fees and payment are settled.
The first consultation with our bankruptcy attorney is free. At this time the client should honestly explain his or her situation to the attorney and try to gauge if they are comfortable with the attorney and their staff. At the same time our attorney will give you feedback on your situation and the options thereon.
When conversing with our attorney, find out how long he or she has been in practice, what the specifics of their specialization are, approximately how many cases they have handled and what your expectations should be from the attorney in terms of representation. Also find out if the attorney will be personally attending to your case and that it will not be passed on to a junior lawyer or staff. Ask as many questions as you need and make sure you are comfortable with the fact that you are appointing them as your bankruptcy attorney.
Though the fee of an attorney is an important consideration, do not make that the only factor when making a choice. The bottom-line is your level of comfort and the confidence you feel toward the attorney. Give us an opportunity, and be rest assured that your case is in safe hands.
http://www.bankruptcyhome.com/choosinganattorney.htm
Saturday, May 19, 2007
Bankruptcy Reform
Bankruptcy Reform
On May 14th 2004 the new Bankruptcy Legislation Amendment (anti-avoidance and other measures) Bill was introduced. The purpose of this bill was to curtail the unfair way in which some high income earners were using bankruptcy laws as a way of avoiding their tax payments. Even though the number of affluent people who try to use bankruptcy as an excuse is small, their share still amounts up to a significant sum. These people have the ability to pay their taxes but by filing for bankruptcy they are able to avoid their tax obligations.
Despite the good intensions with which this bill has been introduced, some people are worried that though this bill was initiated to curb tax avoidance by those who can afford it but it might also adversely influence other people who actually need the advantages of filing for bankruptcy to solve their serious financial problems.
The bill came into effect quickly after it was introduced in May 2004. On May 21st 2004 the Chairman of the House of Representatives Standing Committee on Legal and Constitutional Affairs, Bronwyn Bishop made it known to the media that the committee is examining changes to bankruptcy laws. On the 18th of June, 2004 the ICAA expressed its support for the legislation, however they also voiced their concern about the effect that this new law would have on the individuals who genuinely were in financial trouble and were not using bankruptcy as a technique of tax evasion. By the 7th of December 2005 the Bankruptcy Legislation Amendment (Anti-Avoidance) Bill 2005 was introduced into parliament.
The bill has been effective from October 17, 2005 and with this bill it would be more difficult for people to make a fresh start with their finances by filing for bankruptcy. Since the law has come into effect, filing for Chapter 7 bankruptcy will be considerably changed. Unlike earlier, a means test will be conducted in order to evaluate if you quality for Chapter 7 or not. In addition to that you will also have to attend, and pay for, debt counseling which is mandatory and will be considered as part of the criterion for determining your qualification. At the same time, if it so happens that you do not qualify for Chapter 7 bankruptcy, then you can still file for bankruptcy under Chapter 13, even though it is a much more complicated process.
* free bankruptcy evaluation by a lawyer
http://www.bankruptcyhome.com/bankruptcyreform.htm
On May 14th 2004 the new Bankruptcy Legislation Amendment (anti-avoidance and other measures) Bill was introduced. The purpose of this bill was to curtail the unfair way in which some high income earners were using bankruptcy laws as a way of avoiding their tax payments. Even though the number of affluent people who try to use bankruptcy as an excuse is small, their share still amounts up to a significant sum. These people have the ability to pay their taxes but by filing for bankruptcy they are able to avoid their tax obligations.
Despite the good intensions with which this bill has been introduced, some people are worried that though this bill was initiated to curb tax avoidance by those who can afford it but it might also adversely influence other people who actually need the advantages of filing for bankruptcy to solve their serious financial problems.
The bill came into effect quickly after it was introduced in May 2004. On May 21st 2004 the Chairman of the House of Representatives Standing Committee on Legal and Constitutional Affairs, Bronwyn Bishop made it known to the media that the committee is examining changes to bankruptcy laws. On the 18th of June, 2004 the ICAA expressed its support for the legislation, however they also voiced their concern about the effect that this new law would have on the individuals who genuinely were in financial trouble and were not using bankruptcy as a technique of tax evasion. By the 7th of December 2005 the Bankruptcy Legislation Amendment (Anti-Avoidance) Bill 2005 was introduced into parliament.
The bill has been effective from October 17, 2005 and with this bill it would be more difficult for people to make a fresh start with their finances by filing for bankruptcy. Since the law has come into effect, filing for Chapter 7 bankruptcy will be considerably changed. Unlike earlier, a means test will be conducted in order to evaluate if you quality for Chapter 7 or not. In addition to that you will also have to attend, and pay for, debt counseling which is mandatory and will be considered as part of the criterion for determining your qualification. At the same time, if it so happens that you do not qualify for Chapter 7 bankruptcy, then you can still file for bankruptcy under Chapter 13, even though it is a much more complicated process.
* free bankruptcy evaluation by a lawyer
http://www.bankruptcyhome.com/bankruptcyreform.htm
Bankruptcy and Jobs
Bankruptcy and Co-signers
Before filing for bankruptcy you need to make sure which type is appropriate for your situation. At this time it is important to ask if your co-signer would be asked to pay your debt if your file for bankruptcy. The answer to this question would depend on the type of bankruptcy that you file for and the particulars of your bankruptcy plan.
Essentially, only a Chapter 13 bankruptcy will protect your co-signer. With a Chapter 7 bankruptcy, only the debtor is protected and the co-signer will still be liable for the debt. That is to say, with Chapter 7 bankruptcy, the creditors will still have the right to demand that your co-signer pay off the outstanding payments. On the other hand, Chapter 13 bankruptcy is able to give the co-signer increased protection under the right conditions. Under chapter 13 bankruptcy, as long as the bankruptcy plan is active the co-signers will receive a stay. All the same, when the plan closes, the co-signer is once again liable to pay any outstanding payments. The following aspects should stay constant while your file for bankruptcy and in the later processes also. If any one of the following factors is not satisfied at the point of bankruptcy filing or later, then your co-signer will be responsible to pay off your debts. The factors are:
* you file for Chapter 13 bankruptcy. Chapter 7 will not protect your co-signers
* the debt of the co-signer has to be a consumer debt, which is to say, a personal debt and not a business one.
* the co-signer is not the recipient of any benefits from the debt proceeds.
* the accurate bankruptcy plan payments are made in accordance with your bankruptcy.
When filing for bankruptcy, one needs to keep in mind that the conditions mentioned above are legal ones and have to be dealt with in the appropriate manner. It would be advisable to contact a bankruptcy attorney to ensure the protection of your co-signer.
http://www.bankruptcyhome.com/bankruptcyandjobs.htm
Before filing for bankruptcy you need to make sure which type is appropriate for your situation. At this time it is important to ask if your co-signer would be asked to pay your debt if your file for bankruptcy. The answer to this question would depend on the type of bankruptcy that you file for and the particulars of your bankruptcy plan.
Essentially, only a Chapter 13 bankruptcy will protect your co-signer. With a Chapter 7 bankruptcy, only the debtor is protected and the co-signer will still be liable for the debt. That is to say, with Chapter 7 bankruptcy, the creditors will still have the right to demand that your co-signer pay off the outstanding payments. On the other hand, Chapter 13 bankruptcy is able to give the co-signer increased protection under the right conditions. Under chapter 13 bankruptcy, as long as the bankruptcy plan is active the co-signers will receive a stay. All the same, when the plan closes, the co-signer is once again liable to pay any outstanding payments. The following aspects should stay constant while your file for bankruptcy and in the later processes also. If any one of the following factors is not satisfied at the point of bankruptcy filing or later, then your co-signer will be responsible to pay off your debts. The factors are:
* you file for Chapter 13 bankruptcy. Chapter 7 will not protect your co-signers
* the debt of the co-signer has to be a consumer debt, which is to say, a personal debt and not a business one.
* the co-signer is not the recipient of any benefits from the debt proceeds.
* the accurate bankruptcy plan payments are made in accordance with your bankruptcy.
When filing for bankruptcy, one needs to keep in mind that the conditions mentioned above are legal ones and have to be dealt with in the appropriate manner. It would be advisable to contact a bankruptcy attorney to ensure the protection of your co-signer.
http://www.bankruptcyhome.com/bankruptcyandjobs.htm
Bankruptcy and Cosigners
Bankruptcy and Co-signers
Before filing for bankruptcy you need to make sure which type is appropriate for your situation. At this time it is important to ask if your co-signer would be asked to pay your debt if your file for bankruptcy. The answer to this question would depend on the type of bankruptcy that you file for and the particulars of your bankruptcy plan.
Essentially, only a Chapter 13 bankruptcy will protect your co-signer. With a Chapter 7 bankruptcy, only the debtor is protected and the co-signer will still be liable for the debt. That is to say, with Chapter 7 bankruptcy, the creditors will still have the right to demand that your co-signer pay off the outstanding payments. On the other hand, Chapter 13 bankruptcy is able to give the co-signer increased protection under the right conditions. Under chapter 13 bankruptcy, as long as the bankruptcy plan is active the co-signers will receive a stay. All the same, when the plan closes, the co-signer is once again liable to pay any outstanding payments. The following aspects should stay constant while your file for bankruptcy and in the later processes also. If any one of the following factors is not satisfied at the point of bankruptcy filing or later, then your co-signer will be responsible to pay off your debts. The factors are:
* you file for Chapter 13 bankruptcy. Chapter 7 will not protect your co-signers
* the debt of the co-signer has to be a consumer debt, which is to say, a personal debt and not a business one.
* the co-signer is not the recipient of any benefits from the debt proceeds.
* the accurate bankruptcy plan payments are made in accordance with your bankruptcy.
When filing for bankruptcy, one needs to keep in mind that the conditions mentioned above are legal ones and have to be dealt with in the appropriate manner. It would be advisable to contact a bankruptcy attorney to ensure the protection of your co-signer.
http://www.bankruptcyhome.com/cosigners.htm
Before filing for bankruptcy you need to make sure which type is appropriate for your situation. At this time it is important to ask if your co-signer would be asked to pay your debt if your file for bankruptcy. The answer to this question would depend on the type of bankruptcy that you file for and the particulars of your bankruptcy plan.
Essentially, only a Chapter 13 bankruptcy will protect your co-signer. With a Chapter 7 bankruptcy, only the debtor is protected and the co-signer will still be liable for the debt. That is to say, with Chapter 7 bankruptcy, the creditors will still have the right to demand that your co-signer pay off the outstanding payments. On the other hand, Chapter 13 bankruptcy is able to give the co-signer increased protection under the right conditions. Under chapter 13 bankruptcy, as long as the bankruptcy plan is active the co-signers will receive a stay. All the same, when the plan closes, the co-signer is once again liable to pay any outstanding payments. The following aspects should stay constant while your file for bankruptcy and in the later processes also. If any one of the following factors is not satisfied at the point of bankruptcy filing or later, then your co-signer will be responsible to pay off your debts. The factors are:
* you file for Chapter 13 bankruptcy. Chapter 7 will not protect your co-signers
* the debt of the co-signer has to be a consumer debt, which is to say, a personal debt and not a business one.
* the co-signer is not the recipient of any benefits from the debt proceeds.
* the accurate bankruptcy plan payments are made in accordance with your bankruptcy.
When filing for bankruptcy, one needs to keep in mind that the conditions mentioned above are legal ones and have to be dealt with in the appropriate manner. It would be advisable to contact a bankruptcy attorney to ensure the protection of your co-signer.
http://www.bankruptcyhome.com/cosigners.htm
Friday, May 18, 2007
New Bankruptcy Legislation Requirements
The law, which took effect on October 17, 2005, has taken up the onus of making the process of filing for bankruptcy a more laborious task, for attorneys and debtors. Of course, that's one side of the coin and the shift is undoubtedly geared towards benefiting the end customer; the debtor.
The documentation that is required when filing for bankruptcy has increased. For example, the debtor must provide additional information that details all income and expenses. In cases where the expenses exceed the IRS allowance, a special circumstances document must be submitted which reasons the necessity of the extra expense incurred. A statement of accuracy must also be submitted, along with these special circumstance documents.
The attorney’s job is further diversified, and a lot of responsibility for ensuring checks is put on the attorney. A signature of the attorney certifies that the petition has been reasonably inspected, and the proceeding is not an abuse of the bankruptcy process. The attorney also certifies that the proceeding is acceptable under current law or that it is a good faith argument for the extension/modification of current law. In case of a violation, the fees of the attorney and the debtor cost can be assessed and made payable to the trustee. This will possibly work as an incentive for trustees to file more motions, perhaps resulting in the need for additional insurance or an unknown increase in current rates.
In a bid to decrease the number of people filing bankruptcy, the new law requires that debtors receive counseling from an approved credit counseling agency within six months prior to filing the bankruptcy petition. This counseling would orient clients of other options that are available to them. Such a counseling session will ensure that people don’t take an uninformed decision to file for bankruptcy.
Here again, it will be the responsibility of the attorney to ensure that the client has attended a certified counseling program. But this is just as simple as a “have you” or “have you not” verification. In Senate hearings the credit counseling industry has been described as "a network of not-for-profit companies linked to for-profit conglomerates. … plagued with consumer complaints about excessive fees, pressure tactics, nonexistent counseling and education, promised results that never come about, ruined credit ratings, poor service, in many cases being left in worse debt than before they initiated their debt management plan.” The debtors’ job is not getting any easier, with counseling required even in such cases where repayment is impossible, or where a debtor faces an unfair debt.
Further more, while in the old law in consultation with attorneys debtors chose the type of bankruptcy that they felt suited them the most, in the new law that is not to be the case. The new law will also reduce the number of people who file for Chapter 7 bankruptcy by allowing only people who fall under the median state income, adjusted for family size and inflation, and people who meet the rigorous standards under the means test to file for it. A series of complex mathematical formulas have been put in place to evaluate the rest of people who don’t make this mark. These formulas won’t be fixed, and will be revised on an annual basis when the new median incomes are released. The new law utilizes income and expense standards devised by the IRS that vary by county. There are numerous exceptions and special circumstances to the standards that must be considered for each client.
Clients who do not qualify for the aforesaid means test will be required to file for Chapter 13 bankruptcy. Also, the new law has extended the term for Chapter 13 bankruptcy from the range of three to five years, to a mandatory five-year term. Chapter 13 Bankruptcy clients will now require supervision and representation for at least five years before they receive their discharge.
The effects of the new law are such that it would require attorneys to specialize in bankruptcy. These are complex rules, and a new level of commitment towards the protection of bankruptcy clients is mandated by it.
Yes, it would seem from hereon lawyers would be harder to find, because of the kind of complications that have been introduced under the new law. The commitment of Bankruptcyhome.com is undeterred! After all, the basic tenet of bankruptcy filing remains unchanged. A change in the law does not imply a change in the basic principles that we work on. We specialize in bankruptcy litigation will continue to assist clients, even in the face of new bankruptcy legislation.
http://www.bankruptcyhome.com/bankruptcy-certification.htm
The documentation that is required when filing for bankruptcy has increased. For example, the debtor must provide additional information that details all income and expenses. In cases where the expenses exceed the IRS allowance, a special circumstances document must be submitted which reasons the necessity of the extra expense incurred. A statement of accuracy must also be submitted, along with these special circumstance documents.
The attorney’s job is further diversified, and a lot of responsibility for ensuring checks is put on the attorney. A signature of the attorney certifies that the petition has been reasonably inspected, and the proceeding is not an abuse of the bankruptcy process. The attorney also certifies that the proceeding is acceptable under current law or that it is a good faith argument for the extension/modification of current law. In case of a violation, the fees of the attorney and the debtor cost can be assessed and made payable to the trustee. This will possibly work as an incentive for trustees to file more motions, perhaps resulting in the need for additional insurance or an unknown increase in current rates.
In a bid to decrease the number of people filing bankruptcy, the new law requires that debtors receive counseling from an approved credit counseling agency within six months prior to filing the bankruptcy petition. This counseling would orient clients of other options that are available to them. Such a counseling session will ensure that people don’t take an uninformed decision to file for bankruptcy.
Here again, it will be the responsibility of the attorney to ensure that the client has attended a certified counseling program. But this is just as simple as a “have you” or “have you not” verification. In Senate hearings the credit counseling industry has been described as "a network of not-for-profit companies linked to for-profit conglomerates. … plagued with consumer complaints about excessive fees, pressure tactics, nonexistent counseling and education, promised results that never come about, ruined credit ratings, poor service, in many cases being left in worse debt than before they initiated their debt management plan.” The debtors’ job is not getting any easier, with counseling required even in such cases where repayment is impossible, or where a debtor faces an unfair debt.
Further more, while in the old law in consultation with attorneys debtors chose the type of bankruptcy that they felt suited them the most, in the new law that is not to be the case. The new law will also reduce the number of people who file for Chapter 7 bankruptcy by allowing only people who fall under the median state income, adjusted for family size and inflation, and people who meet the rigorous standards under the means test to file for it. A series of complex mathematical formulas have been put in place to evaluate the rest of people who don’t make this mark. These formulas won’t be fixed, and will be revised on an annual basis when the new median incomes are released. The new law utilizes income and expense standards devised by the IRS that vary by county. There are numerous exceptions and special circumstances to the standards that must be considered for each client.
Clients who do not qualify for the aforesaid means test will be required to file for Chapter 13 bankruptcy. Also, the new law has extended the term for Chapter 13 bankruptcy from the range of three to five years, to a mandatory five-year term. Chapter 13 Bankruptcy clients will now require supervision and representation for at least five years before they receive their discharge.
The effects of the new law are such that it would require attorneys to specialize in bankruptcy. These are complex rules, and a new level of commitment towards the protection of bankruptcy clients is mandated by it.
Yes, it would seem from hereon lawyers would be harder to find, because of the kind of complications that have been introduced under the new law. The commitment of Bankruptcyhome.com is undeterred! After all, the basic tenet of bankruptcy filing remains unchanged. A change in the law does not imply a change in the basic principles that we work on. We specialize in bankruptcy litigation will continue to assist clients, even in the face of new bankruptcy legislation.
http://www.bankruptcyhome.com/bankruptcy-certification.htm
Subscribe to:
Posts (Atom)