Bankruptcy Attorney | Chapter 7 Bankruptcy | Bankruptcy Law

May 12, 2010

How to Claim Bankruptcy – Consider This

Filed under: bankruptcy — Tags: , , , , , , , — Bob Tremerituus @ 1:45 pm

Where an individual or legal entity can no longer afford to service or repay their debts, a state of bankruptcy exists. In light of the recent economic downturn many people are looking to find out how to claim bankruptcy. Here are a few of the advantages and disadvantages of filing.

It is not always the individual themself who files for bankruptcy. In some situations a creditor can file what is called a bankruptcy order against the individual who owes money. This will proceed whether the individual likes it or not.

The process itself is fairly straightforward, but bankruptcy should only be entered into as a very last resort, as it’s effects are far reaching and life changing.

What are the advantages and disadvantages of bankruptcy?

The most popular chapter to file bankruptcy under is chapter 7, where an individual has all debt taken away. Not all debt can be written off however, and if the main contributor to the bankruptcy is debt that has to be repaid, a chapter 13 bankruptcy is the more appropriate chapter.

There are a couple of disadvantages with this however.

The main disadvantage is that the majority of your possessions are liquidated to pay your creditors.

Also, those with whom you have dealt with financially in the past will be unlikely to want to deal with you again. For example, a bank account will be difficult to obtain.

All the above relates to chapter 7 bankruptcy laws.

Anyone filing for bankruptcy now has to complete a financial means test.

There is also an examination of your income over the past 6 months, and if it is found to be above the median income for a family of the same size as yours in the same state, and you fail the means test, you are in elligible for chapter 7 bankruptcy. In this case one would normally file chapter 13 bankruptcy.

Chapter 13 bankruptcy rules make an individual repay all debt according to an agreed repayment plan over 3-5 years. No assets are sold.

The means test used to define an individuals allowances and income is complex and quite harsh. The means test can also make your income look better than it is, resulting in a repayment plan that leaves an individual with very little disposable income.

As far as an individual’s credit score is concerned, chapter 13 stays on record for 7 years and chapter 7 for 10 years.

Should you require more free inShould you requiremation on how to claim bankruptcy and the various chapters and how they work, go to www.howtoclaimbankruptcy.net Grab a totally unique version of this article from the Uber Article Directory

April 29, 2010

Why Chapter 7 Bankruptcy

Filed under: bankruptcy — Tags: , , , , , , , , — Luke Jeffers @ 12:54 pm

Ever wondered what Chapter 7 bankruptcy is? Well if you are, I think this article will help. Well, Chapter 7 bankruptcy is a type of bankruptcy that is available for people to file under the Bankruptcy Code. However, this type of bankruptcy is not available to everyone. Want to know more? Read on.

Eligibility For Chapter 7 Bankruptcy

Wondering who can file for Chapter 7 Bankruptcy? Well, it is only available to individuals and some businesses. Assets need to be limited to those that can be claimed as exempt in order to file for Chapter 7 bankruptcy.

In some cases, though, Chapter 7 may be best even if someone has more assets. The court, though, may rule that a person can not file a Chapter 7 if their assets are high enough to clear their debt.

Process of a Chapter 7 Bankruptcy

The process of filing for a Chapter 7 may be long as you are required to collect all the information about your debts and your financial situation. Other than that, you’re also required to meet with a counselor and attend counseling.

After going thought this first phase, you will then be able to start filing out the proper forms and filing them with the court. After this, you are required to attend court to plead your case. This will be done over the next few months.

As you can infer, the whole process will take some time but as long as you are going through this process, you are protected from debt collection by creditors.

Any Risks Involved?

Thinking of an easy way out to settle your debts? Count filing for Chapter 7 out. This should be your last resort as recent changes in the bankruptcy laws have made bankruptcy almost impossible.

If you file for Chapter 7, you will be at risk of losing your assets. Well the bad news doesn’t stop there. You are also going to end up with a damaged credit record. This is one of the worst things that can happen to you as it may not be easy for you to get loans and other forms of credit in the future.

It is a good thing there is Chapter 13. You can file a Chapter 13 instead of a Chapter 7 if your income is deemed to be more than the set amount. So how do you pay back the amount? Well, the court can decide a repayment plan for you!

Bankruptcy should not be looked at as a way to get out of your financial obligations because you will end up paying in the end in some way. Additionally, not every debt can be cleared through bankruptcy. If you take the process seriously then you should end up with the result you desire.

Get to know more about Chapter 7 Bankruptcy and how it will affect you and your family. Read and find out more about bankruptcy by visiting this website: http://www.outofbankruptcy.info

April 28, 2010

Declaring Yourself Bankrupt – Some Thoughts

Filed under: bankruptcy — Tags: , , , , , , , — Bob Tremerituus @ 8:52 am

Not so long ago, banks and financial institutions were falling over themselves to lend money. Now the situation has changed radically, making credit much harder to obtain and making life very difficult for many as they struggle to manage high levels of debt accrued in the good times.

During the boom years, many people, myself included, used our credit cards as an extension of our salary, and spent as if it was “free credit”. Of course, we are all learning that recession also brings a reality check, and for many the reality has been that the interest payments are beyond our means.

Of course, one can buy some time by transferring some credit card debt to a card with a lower interest rate, but this does not solve the problem.

Declaring yourself bankrupt should only be considered when all other options have been examined in detail. The appeal of bankruptcy is the lure of starting one’s financial life again, with all debt taken away, a fresh start.

You also need to be wary of the plethora of companies that have appeared in recent months to “assist” with bankruptcy.

The most sensible thing to do, regardless of cost, is to hire a specialist bankruptcy lawyer. Be aware that they should have experience of the bankruptcy laws as they appear in your actual state. A specialist lawyer will be able to advise the best course for you to follow.

Before declaring yourself bankrupt, you need to check that you are eligible. You are ineligible if:

If you have voluntarily dismissed a bankruptcy case of your own in the last 180 days.

If you have previously declared yourself bankrupt and received the discharge within the last seven years you are ineligible.

You are ineligible to file bankruptcy if in the last 180 days you have had a petition dismissed because you failed to follow the Bankruptcy Code.

If none of these points apply to you, declaring yourself bankrupt is open to you.

You need to file under one of the bankruptcy “chapters”. Your lawyer will advise which is appropriate for you and will probably choose either chapter 13 or Chapter 7.

Chapter 7 bankruptcy is often regarded as the “chapter of choice” as you are no longer responsible for any outstanding debt (there are some exceptions), after your assets have been sold and the proceeds distributed amongst your creditors, giving you a completerly fresh start. Chapter 13 bankruptcy laws allow you to keep your assets and pay off your creditors over 3 – 5 years.

For additional helpful information about declaring yourself bankrupt, including tips on things to consider before filing and tips on lawyers, visit www.declaringyourselfbankrupt.net. Get a totally unique version of this article from our article submission service

File Bankruptcy Without a Lawyer – Should You Do it?

Filed under: bankruptcy — Tags: , , , , , , — Bob Tremerituus @ 7:30 am

Many people are still reeling from the economic downturn and are wondering whether to file bankruptcy, and whether to file bankruptcy without a lawyer, seeing this as yet more expense.

It’s true that lawyers are not cheap. However, bankruptcy is one of the single most important steps one can take, and with the complications and pitfalls, declaring yourself bankrupt without the support and guidance of a lawyer is unthinkable.

A lawyer will help guide you through the process and make sure you get the best deal possible.

You will probably either lose all your worldly goods, but have all debt written off (chapter 7), or live a tough life for 3-5 years as you work through repayment plan (chaptern 13).

However, the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) changed the law to include a means test. This was to ensure that those who could repay in full (and the conditions can be quite harsh), did so.

This is one major reason not to file bankruptcy without a lawyer as the means test is complicated, and the result is far reaching.

It is also important that you have contact directly with your lawyer. If you deal with a large law firm you will often deal with a paralegal, not the lawyer. It’s important to use a firm where you will deal with the lawyer direct. You need to build a relationship and they should be asking and answering all your questions.

Some lawyers tailor their rate to the amount you owe, others will charge a flat fee, which is the best way to go. A lawyer cannot be a creditor in a chapter 7 case, so the amount must be paid up front, as opposed to a chapter 13 case, where it can be included in your repayment plan.

You will be very grateful for a lawyer’s assistance when it comes to the “Meeting of Creditors”.

Before the meeting you will need to draw up a list of creditors with details of how much is owed. You must also produce documented evidence of all your assets and their value, and any income you receive.

Here again a lawyer is vital as he will guide you through then process and be with you at the meeting. The purpose of the meeting is to establish your legal position (you are asked questions under oath), and then decide which chapter you are entitles to file under.

Lawyers will also offer advice on a plethora of other details, many of which if got wrong can lead to severe penalties, which are not immediately obvious, and of which you are likely to fall foul without expert guidance.

I cannot emphasise the importance of a lawyer if you intend to be declaring yourself bankrupt at any time.

This is onlyone aspect of declaring yourself bankrupt. For further free information on various aspects of bankruptcy, go to www.decalringyourselfbankrupt.org. Don’t reprint this exact article. Instead, reprint a free unique content version of this same article.

April 27, 2010

Your Credit Rating After Bankruptcy And Can It Be Upgraded?

Filed under: bankruptcy — Tags: , , , , , , , , , — Bill Daily @ 12:17 pm

You could be thinking about how it will be possible to mend your credit after a bankruptcy proceeding, right? Well, truly bankruptcy whenever possible shouldn’t be declared by anyone else because this is a very unfortunate condition for the one which is in debt plus the creditors.

What is sad about it is the fact that, you’ll find people who find this as the last course of action and they are left with no other choice. While others realize its a bit difficult but they are nevertheless in a position to deal with the circumstances, could actually discover additional methods to reconstruct their credit score following personal bankruptcy. The question now is, what are the odds?

Well, undoubtedly there is, it only takes time for you to construct a life again. Should you declare bankruptcy you treasured account record would not matter anymore. Anything that could be announced after personal bankruptcy can be a means of beginning all over. It may be difficult however it remains achievable to build up credit after a bankruptcy proceeding.

You are fortunate enough if you are able to find financial businesses that could lend to you after declaring personal bankruptcy. However this is a case to case basis, it will essentially be based upon how financial firms could see your credit profile to be deserving of their trust.

Let’s say that you’ll be able to rebuild credit after personal bankruptcy, then you definitely are extremely fortuitous. Do not loose the chance of showing these creditors that you are in for a change. Developing a good history of credit with the organization would be a good start too.

Everybody should have an opportunity to continue life after declaring personal bankruptcy. If everything went wrong before, then they can build up a new standard of living and live by that. You can find all the help you need from economic advisers.

Having the ability to find out more about your options is a plus. This is probably not as fast as you might like but what’s vital is the fact that it’s possible. All you’ve got to do is to do your own research to help you make the most from the time waiting.

I really like writing articles on financial subjects like this, but there are other subjects that I enjoy writing about as well. One of these topics is fix your credit report. If you want to find out more about this subject then you can definitely at http://creditfixrepairreport.com/

April 26, 2010

The Bankruptcy Chapter 7 Exemptions

Filed under: bankruptcy — Tags: , , , , , — Mark Lewis @ 11:46 am

Today, many people see their debts mounting, without being able to keep up with monthly dues and without being able to pay them off. In this case, bankruptcy can be a good alternative, since it can allow them to sell a part of their assets so as to pay off their existing debts. However, there are the bankruptcy chapter 7 exemptions, which allow them to keep some of their personal items and assets.

Both in chapter 7 and 13 referring to bankruptcy, people can lose quite many of their possessions. This is absolutely expected, especially since the assets of the debtor are used to pay off some of his debts. Bankruptcy exemptions refer to the items that someone can keep, even if not all debts are eliminated. It is important for someone who intends to declare bankruptcy to check out his options, because the exemptions of chapter seven could prove to be a great solution.

Bankruptcy exemptions vary, depending on the state, and they are susceptible to changes, especially since the new legislation takes bankruptcy issues under serious consideration. In any case though, there are many terms and guidelines that are basic and strictly followed according to the federal laws.

According to the chapter 7 exemptions, there is a full list of property that the debtor can keep – it is usually provided by the Federal Bankruptcy Code. The assets of the debtor are divided in two categories: the exempt and the non exempt ones. The laws concerning the exemptions can be very different between states, although the basic law and federal terms are supposed to be valid everywhere.

Secure debts are the ones to be taken care of with the non exempt items, while the non secured creditors might not get the full payment back. Although the exemptions vary from state to state, the federal laws recognise particular items as exemptions, allowing people to keep them.

The debtor should file the bankruptcy chapter 7 exemptions in the state where he resides for two years to the date. If he has moved recently, he is supposed to file for bankruptcy in the state where he previously resided, in the case that he lived there for more than 180 days. In any case, the laws that will be taken under consideration are the laws of the state where he/she files for bankruptcy.

Pensions are completely excluded, while the 75% of wages is usually protected by law in almost all states. According to the deferral exemptions, some of the benefits for disability, death and retirement also qualify for exemptions.

In some cases cars might be excluded, depending on their condition and value. If the debtor files for bankruptcy with his/her spouse, he can probably raise the limit of the items’ value, something that will allow him to keep more of them. This depends on the state though, thus, the professional advice of a bankruptcy lawyer is more than necessary.

Chapter 7 Exemptions is all about identifying what are the things to keep and what are the things that can be sold to pay off the debts. A debtor gets to keep some properties so that they can start their life again. You should also understand a little more on Chapter 7 Bankruptcy today to protect yourself.

April 25, 2010

Credit Cards After Bankruptcy – Some Ideas

Filed under: bankruptcy — Tags: , , , , , , , — Bob Tremerituus @ 3:31 pm

In these difficult economic times, many people have been unable to cope financially and have gone through all the emotional pain and heartache that is bankruptcy. Having come out the other side they are thinking about how to build their credit rating, and also whether or not credit cards after bankruptcy are a good idea.

The easy credit available through a credit card has been one of the main reasons for people getting into financial difficulty.

As credit builds up even the minimum payments become impossible, and as the balance increases, exactly the opposite happens to the individual’s credit rating.

Credit cards after bankruptcy are often shunned by individuals who do not want to risk getting back into debt, which is entirely understandable – but is it really a good idea?

Contrary to what many may think, a credit card can be key to restoring your credit record.

The way to restore your credit rating is not to avoid credit. It is, in fact, to show you can repay credit. By taking on a small amount of debt, maintaining the payments and paying it off is the best way to restore your credit score.

Perhaps surprisingly, it is possible to obtain credit cards after bankruptcy if you are prepared to do some legwork. It will be at a much higher interest rate though.

Also, beware of cowboy operators who will give you a card at extortionate rates, but not register with the credit bureau. If the card is not registered you will not benefit at all!

For a virtually risk free approach, get a secured credit card. You give the provider a sum of money, say $400, and then you can use your card up to that amount. That way, you cannot run up debt you can’t afford to repay, as you’ve effectively paid in advance.

What’s the point – why not just spend the money?

The reason why you should make purchases with a secured card instead of cash is simply that using your card and paying off the balance (not a problem because you’ve deposited the cash in advance), improves your financial rating, which is the whole point of getting a credit card!

Remember, repaying credit improves your credit score – living with cash only is risk free, but will not improve your rating.

This is just one of your credit score. credit cards after bankruptcy are one weapon in the arsenal of credit repair. For more free information about this and bankruptcy in general visit www.howtoclaimbankruptcy.net You are welcome to reprint this article – but get your own unique content version here.

April 23, 2010

Prepare Yourself And Know How To File Chapter 7 Bankruptcy

Filed under: bankruptcy — Tags: , , , , , , , , — Mark Lucas @ 4:34 am

Bankruptcy is one situation that none of us want to experience. However, when we are left with no choice then it is good to know how to file Chapter 7 Bankruptcy. After new bankruptcy laws has been enforced from October 2005 only people that have a lower or the same income than the average income of families with the same size as your own, in your actual state, are allowed to file for Chapter 7 bankruptcy.

To file Chapter 7 bankruptcy appears to be very complex, but if you know the basics relative to it, the whole process are much less daunting. Do not be mistaken, although it may not be too complicated, the seriousness can not be stated enough and therefore is it important to meet all the requirements and obligations that are expected of you in particular, after which your application will be processed soon.

With a Chapter 7 bankruptcy, you permit without saying the system to auction all your assets, except for those that qualify for exemption, and dispense the income between the claims of your creditors.

While you want considering Chapter 7 bankruptcy, you need to be absolutely sure that there are no other resorts left to make use of in order to salvage your finances.

If you are not knowledgeable on law proceedings it would suit the purpose to obtain the help of a bankruptcy attorney. To ensure the best outcome, you would want to make use of an attorney who is accustomed and talented on the subject of chapter 7 procedures. He will most likely advise you before filing a chapter 7 bankruptcy to attend credit counseling as a prerequisite of the new Bankruptcy Law. When due, the attorney will file for a petition on your behalf to avoid any further court action against you. It is important to note that you need to react prompt to requests to complete all documentation in the applicable manner. Thereafter a mandatory petition meeting that involves your creditors, will be scheduled within 20 to 40 days. During this meeting, your creditors will have the opportunity to question you with regard to your assets and financial position. You need to answer all their questions honestly.

Apart from the petition meeting, with respect to revised bankruptcy laws, attendance of a debtor financial management educational course are compulsory as well. These courses are held by credit counseling agencies.

On completion and conforming of the above requirements, the relieve from your crushing debt will be soon outdated.

Bankruptcy, no one likes to be declared bankrupt. If you need to declare bankruptcy, consider Chapter 7 Bankruptcy as you can get a chance to keep your assets. Learn How to file Chapter 7 Bankruptcy now by going to our main website: http://www.outofbankruptcy.info/How_to_File_Chapter_7_Bankruptcy.html

April 22, 2010

What is Chapter 9 Bankruptcy?

Filed under: bankruptcy — Tags: , , , , , , — Joseph Then @ 5:33 am

I don’t know a thing about you but I’ll bet that you may want to know more about bankruptcy. So, what is bankruptcy? To start you off, let me tell you that bankruptcy is a formal proceeding that allows an individual or business to get their financial debts under control. It is a way to help debtors as well as creditors. However, let me tell you that it is not an easy way but it helps you get your finances back on track.

I am sure you may have heard of a few types of bankruptcies. Confused? Well. Let me tell you this; the type of bankruptcy depends on the situation you’re. Chapter 9 bankruptcy is the type of bankruptcy that is reserved for municipalities.

Basics

The purpose of having Chapter 9 is to help municipalities who are financially in trouble. Usually, this happens because the budget is not controlled and therefore, it leads to one owing a lot of money. However, if a municipality faces financial difficulties, will be given a way out.

This is a protection of the public as much as a protection for the creditors. If a municipality goes under the people living there are going to suffer as well. Chapter 9 seeks to keep everyone from disaster.

Why Chapter 9 Is the Right Choice

What happens if a municipality is in trouble? Well, you guessed it right. The whole town will be in trouble and it will affect everyone living there. Therefore, one has to be responsible and do the right thing.

By filing for Chapter 9, it allows a municipality to bounce back from its financial difficulties with minimal effect on the people. This is because the court allows debts to be paid in installments.

Therefore, by filing for Chapter 9, uncertain future and the possible collapse of a town can be avoided.

Reasons to File Bankruptcy

People expect a lot from a municipality. One of the many responsibilities is to keep their budget under control. However at times, things may get out of hand and the only way to get things back on track is to file for bankruptcy.

Chapter 9 allows the municipality to be responsible about repaying debts and get help from the court to protect the town. It allows creditors to be repaid while also protecting the citizens from collection actions against their town.

Now that you are armed with this information, I am sure you know what Chapter 9 is about. One advice; even though Chapter 9 can help a failing municipality get back on its feet and start a better future course, it should be a last resort.

Understanding the various laws of bankruptcy can help you or your love ones when situation calls for it. Read more about Chapter 9 Bankruptcy today

April 21, 2010

Declaring Yourself Bankrupt – What Happens

Filed under: bankruptcy — Tags: , , , , , , — Bob Tremerituus @ 12:03 am

Believe it or not, the bankruptcy laws are there for your protection. The old days of companies, particularly credit card companies, rewarding people for loyalty have long gone and in the current economic climate financial institutions generally have only one interest – their bottom line. Declaring yourself bankrupt offers a way out.

Under the 2005 Bankruptcy Abuse Prevention anhd Consumer Protection Act, it is law that anyone filing for bankruptcy must attend consumer credit councelling within 180 days of filing. This is to make every individual considering bankruptcy aware of the alternatives, so that bankruptcy is filed only as a last resort.

Having attended councelling, if bankruptcy is considered to be the only option, the following steps have to be taken:

Firstly, you have to decide which type of bankruptcy you are going to file under, the two most common being chapter 7 and chapter 13. Chapter 7 is often seen as the preferred option, but under the new BAPCPA rules, all applicants for bankruptcy have to undergo a means test, the result of which often forces individuals into chapter 13.

The second thing to consider is legal representation. Ironically, declaring yourself bankrupt is not an area where you want to save money. Lawyers are not cheap, but it is highly recommended that you hire one, and make sure they are aware of the laws in your state.

The third thing is most important. Don’t under any circumstances use your credit cards once you have filed for bankruptcy. If the company finds out ( and they will) that you used your card knowing you were unable to repay, your petition for bankruptcy can be thrown out.

“Automatic stay” is triggered when your lawyer files your bankruptcy case. Creditors then have to approach your lawyer direct regarding any debt, thus taking the pressure off yourself.

In order to check that you are being truthful regarding your financial position, you will be required to attend a meeting of creditors shortly after filing for bankruptcy. At this meeting you will be questioned under oath, so that both the court and creditors can be satisfied as to the veracity of your claimed financial situation.

In a chapter 7 filing, the trustee will determine which assets are to be sold and the proceeds used to pay your creditors. Any outstanding debt remaining after liquidation will be written off and you will no longer owe anyone anything. Shortly after the 60th day following filing, a notice of discharge will be received by the individual.

Chapter 13 works differently to 7 in that no assets are sold. A repayment plan is drawn up, the terms of which are determined by means test and can be harsh, to repay all your creditors over a 3 – 5 year period. The bankruptcy is discharged when the repayment plan is complete and 30 – 60 days have passed since the final payment.

For further free informatiregarding regarding bankruptcy go to www.declaringyourselfbankrupt.org where you will find a host of useful informatiregarding and tips regarding declaring yourself bankrupt. This and other unique content ‘bankruptcy’ articles are available with free reprint rights.

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