While in these difficult times , individual bankruptcy remains a viable , and at times indispensable , solution for many people . And it may well be just the solution you’re hunting for too . Personal bankruptcy often is key to stopping collection agencies , prevent foreclosures , not to mention halting wage garnishments and bank-account levies .
You might also be curious about this — http://bankruptcy.about.com/
Bankruptcy cases may become traumatic and confusing , nevertheless there are tricks you possibly can make to render the experience les distressing . In many cases these steps just require a bit of planning and activity on your part . And even while none of these tips will get rid of the impact that a bankruptcy proceeding will have on you , they could bring down the strain of the process noticeably .
Maybe you have fallen on tough times money-wise ? Are you looking for assistance to get back on your feet ? We can help ! Chapter 7 individual bankruptcy eliminates nearly all debts , helps stop the harassment and garnishments of creditors , and shelters your assets from creditors . Get comfort today .
Are you concerned with financial debt ? You’re not the only one . Many hardworking individuals across the nation are struggling to make ends meet . Chapter 7 and chapter 13 individual bankruptcy are a reputable and accepted option to manage your financial future as well as get the relief your family and you need .
Further reading — http://en.wikipedia.org/wiki/Bankruptcy_in_the_United_States
The 2005 federal bankruptcy reform legislation known as “BAPCPA,” which stands for “Bankruptcy Abuse Prevention and Consumer Protection Act,” mandates that prospective debtors contemplating a bankruptcy filing must obtain and complete credit counseling within the 180 day window prior to filing their bankruptcy petition. The provider of credit counseling services must be approved by the United States Trustee Program, which is part of the Department of Justice. Only those companies authorized and approved by the trustee program can advertise and present themselves as credit counseling services for debtors in the federal bankruptcy system. Further, only authorized and approved credit counseling providers can issue the certificates of completion of counseling to debtors that must be filed prior to a bankruptcy petition in order for a debtor to even be eligible for bankruptcy relief after BAPCPA’s passage.
(In North Carolina and Alabama, a bankruptcy administrator system is used instead of the United States Trustee Program. In those two jurisdictions, the approving party or entity for the credit counseling service is the bankruptcy administrator in lieu of the trustee program. Otherwise, the process and procedures are identical in the various U.S. states.)
The credit counseling can take place by phone, online, or in person. It usually lasts an hour to an hour and a half. The typical credit counseling program covers a variety of topics and usually encompasses at least an evaluation of the debtor’s financial situation, alternatives to filing for bankruptcy relief, and a personalized budget for the debtor. Predictably, the longer the session, the more topics that can be addressed.
Often, there is a fee associated with the credit counseling service of up to $50. The fee for the counseling must be disclosed upfront to the participant, according to legislative requirements. The more detailed programs usually carry the higher price tags in terms of session fees, as well. However, because funds are often severely limited in bankruptcy situations, fee waivers are available in limited circumstances. Paperwork is required to obtain a fee waiver, and the credit counseling services are even required to offer their courses free of charge to those who genuinely qualify for such relief due to their warranting circumstances.
The certificates that are issued upon completion of the counseling program are numbered and registered to safeguard against fraud and counterfeiting. The certificates are issued from a centralized authority to further assist in achieving those aims. Finally, debtors are also required to complete a debtor education course in order to have their debts discharged in bankruptcy, once they actually file for bankruptcy protection. That debtor education course must occur separate and apart from the credit counseling that must occur pre-filing.
Source: http://www.attorneys.com/bankruptcy/bankruptcys-credit-counseling-filing-requirement/
When global financial times get harder , it could get easier for anyone to tumble further into indebtedness . Filing bankruptcy then starts to become becomes a realistic solution as a method to obtain relief . Bankruptcy is usually an unpleasant and tricky process , particularly as most recent changes to bankruptcy laws render the process all the more complicated . Knowing how to choose an expert individual bankruptcy attorney is likely to make the over-all process a lot less distressing .
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You might also be interested in this… http://en.wikipedia.org/wiki/Bankruptcy
Filing for bankruptcy is a different legal process than if you were to commit a crime or file a lawsuit against someone. For one thing, all bankruptcy cases go through bankruptcy court, a special federal court established specifically to hear bankruptcy claims.
Your experience in bankruptcy court will depend on a number of factors, including what type of bankruptcy you wish to file for. Before you file for bankruptcy, you should set up a consultation with a knowledgeable bankruptcy attorney, who can help prepare you for what to expect in court.
The decision to file for bankruptcy is not an easy one. However, if you are unable to pay more than the minimum amount on your bills or don’t foresee yourself getting out of debt within the next five years, it may be the best option for you.
You will have to decide what type of bankruptcy to file. This will depend on your specific circumstances as well as something called the means test.
One type of bankruptcy for individuals is called Chapter 7 bankruptcy. Chapter 7 is a type of bankruptcy where a person’s assets are sold and the money is used to pay off most of an individual’s debt. Some or all of the debt that remains is then forgiven.
The other common type of bankruptcy for individuals is called Chapter 13 bankruptcy. Chapter 13 allows the debtor to establish a repayment plan to pay back creditors, who are the people or entities owed money. Once the debtor fulfills the payment plan, a bankruptcy court will make sure any remaining debts are discharged. Bankruptcy discharge means you are no longer liable for your debts.
If you have a steady income and some disposable income, you will want to file for Chapter 13, which will allow you to hold on to your belongings while making regular payments. Although Chapter 7 does not require you to make payments, many of your assets will be taken from you and sold.
Chapter 11 bankruptcy is another form of bankruptcy also available to individuals. Chapter 11 is similar to Chapter 13 in that it allows individuals to reorganize their debts and come up with a repayment plan. It is usually used by people whose debt amounts exceeds Chapter 13’s statutory limitations.
In 2005, Congress enacted a new law called the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). This act, in part, established a means test to determine whether an individual can file for Chapter 7.
This test uses a formula to see if you can pay at least 25 percent of your non-priority unsecured debt, which includes credit card debt. If you can pay 25 percent you will not be able to file for Chapter 7 bankruptcy.
In addition, your income will be compared to your state’s median income. If your family’s combined gross income is greater than the median family income in your state, then you may also be barred from filing Chapter 7 and instead be required to file for Chapter 13 or Chapter 11 bankruptcy.
In addition, the BAPCPA requires that you receive credit counseling six months prior to filing for bankruptcy. The session with the credit counselor must last for 90 minutes.
To file for bankruptcy, you will have to file a petition with the proper bankruptcy court. In addition, you will need to pay the associated filing fee.
You will also need to fill out a form called the Statement of Financial Affairs. This form will require you to list in detail information about your assets, debts, expenses, and income, as well as the names and addresses of your creditors.
Once you file for bankruptcy, the bankruptcy court will issue an automatic stay on all your debts. An automatic stay means that creditors are barred from making collection attempts on your accounts without the permission of a bankruptcy judge.
The court will also appoint a trustee at this time. The trustee’s duties will depend on what type of bankruptcy you have filed.
If you have filed for Chapter 7, the trustee will seize your non-exempt assets, which may include cars and houses, and sell them in order to pay off your creditors. If you are filing for Chapter 13, the trustee will review your debt repayment plan before handing it off to your creditors for their review.
If filing for Chapter 7, you will also have to attend what is known as a 341 hearing. The 341 hearing is also referred to as the meeting of creditors. This is when the debtor appears in bankruptcy court under oath, and the creditors, along with the trustee, have the opportunity to ask the debtor questions about his or her assets, debts, income, and expenses.
You may also be required to bring certain documentation to the 341 hearing, including proof of your income, bank statements, and proof of expenses.
Once you have either completed the Chapter 7 or Chapter 13 process, a bankruptcy court will discharge your debts. However, some debts cannot be discharged by bankruptcy, including student loans, alimony, and child support.
Source: http://www.attorneys.com/bankruptcy/what-to-expect-when-you-get-to-bankruptcy-court/
Is Bankruptcy a Good Idea for You?
There are many factors that should be taken into account when considering filing for bankruptcy.
1. Figure out what bankruptcy options you have. There are types of bankruptcy most commonly used by individual filers in the United States:
2. Consider your alternatives. Bankruptcy is not for everyone. Indeed, many unnecessary bankruptcies are filed each year. You should sit down with your financial documents and consider your situation carefully before making a decision. You may find that you do not need to file bankruptcy because you are judgment proof, or that you can fix your financial woes with a few simple changes.
3. Ensure that you are eligible to file for the type of bankruptcy you want to file. There are certain requirements that you must meet in order to file for certain types of bankruptcies. For example, you may not be able to file for Chapter 7 bankruptcy if your income is high enough to pay off your debts through Chapter 13. Also, if your income is too low, or your debts too high, you may not be able to file for Chapter 13 bankruptcy because you cannot show that you are able to meet your repayment plan.
4. Find out what debts will and won’t be forgiven. There are certain types of debts, such as child support, alimony and tax debts, that cannot be wiped out through a bankruptcy proceeding, no matter whether you file Chapter 7 or Chapter 13. Be sure that the debts that you have are types that can be addressed in bankruptcy before you file. It won’t do you any good to file only to find out that bankruptcy will afford you no protection.
5. Figure out what will happen to your home if you file for bankruptcy. Before filing for bankruptcy, you should always sit down and try to figure out what will happen to your home if you do file. If you are already having problems making your mortgage payments, perhaps they will become easier if some of your other debts are forgiven. However, if you have a lot of equity already invested in your home, you may lose your home if you file for Chapter 7 bankruptcy. On the other hand, if your income is high enough, you may be able to file for Chapter 13 bankruptcy and include your mortgage payments on your repayment plan.
6. Figure out what will happen to your other property, like your car. What happens to your other property during a bankruptcy proceeding will depend upon what you have done with your property, as well as the property exemption laws that are available to you. If, for example, you put up your boat or your car as collateral on a loan, this makes that loan secured and the creditor may still be able to take your property even if you are in bankruptcy. Also, only certain types of property are protected by exemption laws in Chapter 7 bankruptcies. Before filing, study the exemption laws carefully and make sure you will keep what you need to survive.
7. Find out if your credit card debts will be wiped out. Bankruptcy has become an effective tool for wiping out credit card debt. You should figure out if your credit card debt will be wiped out by a bankruptcy proceeding before you file. If you lied on a credit card application or spent well beyond your means, bankruptcy may not be able to forgive your credit card debt.
8. Ensure that your pension plans are safe. Most pension plans and life insurance policies are protected by state laws in a bankruptcy proceeding. Before filing for bankruptcy, it would still be a good idea to find out whether your pension plan (401(k), IRA) and/or life insurance policies will continue to be protected.
9. Make sure that any co-signers are not stuck with your debt. You should go back through all of your debt agreements to make sure that no one that co-signed for any of your loans will be stuck making payments on your debt. It does no good to go through an entire bankruptcy proceeding only to find out that your brother or parents are stuck making the payments that you are unable to make. Generally, Chapter 13 bankruptcy will protect any co-signers to your debts, but Chapter 7 will not.
10. Your personal life will be invaded. Bankruptcies are notoriously intrusive into personal lives. In order for bankruptcy to work, you will have to show the bankruptcy court every aspect of your financial life. In addition, other people may find out about your bankruptcy. In Chapter 7 bankruptcy, it is likely that some of your personal property will be taken and sold in order to pay off your debts. Also, in a Chapter 13 bankruptcy, you will probably have to ask permission to spend your own money for the next three to five years.
These are some of the starting points for you to think about when asking yourself, “is bankruptcy a good idea for me?”
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Bankruptcy is not something that anybody would want to face by choice; however, for a lot of people, bankruptcy appears to be the only choice when faced with financial problems. There is a stigma attached to bankruptcy that has a tendency to put fear into the hearts and minds of those people faced with it. However, for all the disadvantages of filing for bankruptcy, there are also a number of benefits as well.
Her is Why Bankruptcy Consultation is The Answer
In spite of the perceived stigma attached to bankruptcy, it is still a method that allows someone in financial difficulties to start afresh, and to be able to move forward with their lives. A straightforward and completely free bankruptcy consultation will be able to give you all the information that you need in order to make a claim for bankruptcy.
Bankruptcy consultation does not mean that you have committed yourself to going ahead with an application to file for bankruptcy merely that you are thinking about the pros and cons. A free consultation for bankruptcy is just an informal meeting that will furnish you with all of the information that you need in order to make an informed decision. Plus the consumer will be able to give details about their financial plight, and receive a more detailed analysis of what effects bankruptcy will have on their life in the future.
Understanding Bankruptcy
Making sure that you get a bankruptcy consultation is important because bankruptcy itself can be a bit of a mine field, as there is more than one kind of bankruptcy. Making sure that you file for the correct kind of bankruptcy is important, and it can be quite confusing for the uninitiated. Plus, a bankruptcy consultation will allow the consumer to acquire the answers to the questions that they may have.
Of course, the main advantage to getting a bankruptcy consultation is that it is completely free of charge. When someone is giving serious thought to beginning the bankruptcy process, they are already in financial difficulties, and they are not going to want to spend more money on finding out what to do next. That is why, a bankruptcy consultation is the perfect solution to the problems associated with filing for bankruptcy, getting questions answered, and finding out the impact on their future, and all this, without having to pay for the privilege in the first place.
If you’re looking for a qualified attorney in San Diego that can provide excellent bankruptcy consultation and related legal help, I urge you to contact the lawyers at Paul Staley.
Article Source: http://EzineArticles.com/?expert=Nelly_Bee
Many people are struggling to make ends meet for their family, only to be further burdened by overwhelming debt obligations. Dealing with debt during a financial hardship can send even the most money savvy person down a slippery slope. Although there are several options for finding debt relief, only bankruptcy can offer some unique benefits for those looking for help.
A Timeout
When you file for bankruptcy protection a court issues an automatic stay order. This order is sent to all of your creditors notifying them of your filing and requesting a halt in all collection actions. What this means for you is that your creditors cannot make collection attempts, repossess or liquidate your assets. The automatic stay order is only found in the bankruptcy process and gives you 100 percent protection against further garnished wages, the threat of foreclosure or repossession.
Further, the automatic stay order can become permanent for any debts that are discharged as a part of your case. This means that any debts that are eliminated in the bankruptcy process are not collectible in the future. Creditors won’t be able to come after you for payment once the account has been considered resolved as part of your case. However, it is important to note that the non-collectible aspect of your debt applies only to you, or the filing party. If you were to file for bankruptcy on a jointly held debt apart from your spouse, it could your non-filing spouse that is held liable for the debt. therefore, it is always wise to seek the counsel of an attorney to assist in your case.
A Clean Slate
Another perk of bankruptcy is that it can give you a fresh start by eliminating negative payment histories from your credit report. Unlike other forms of debt relief, bankruptcy does not leave behind the trial of delinquencies. While it is true that a bankruptcy will be indicated on your credit report, that notation does not damage your credit score. In fact, most people find an improved credit score after completing their bankruptcy case. With resolved debts and a fresh credit history in hand, repairing your credit is much easier after a bankruptcy than other methods of debt relief.
The fresh start offered also provides you with a chance to make positive changes in your financial habits. Securing new credit is important, but only after you have put smart money management strategies to work. The information provided in the debtor’s education course of the credit counseling requirement can help put you on solid financial footing by helping you to develop and stick to a budget, start a better savings account and plan out your credit purchases.
When founding the Pew Law Center, Mr. Pew’s vision is of a premier, client oriented law firm that is designed to consistently exceed client expectations and achieve stellar legal representation. As a leading Mesa bankruptcy lawyer, he has worked tirelessly in order to clients resolve their debts, stop foreclosures and repossessions, while getting back on track to a bright financial future. His diverse background and experience allows his to provide real world answers and practical solutions to complicated problems.
Article Source: http://EzineArticles.com/?expert=Lawrence_D_Pew
According to Chapter 13 bankruptcy rules, it is necessary for a debtor to attend credit counseling prior to filing for bankruptcy. After the completion of counseling, the debtor must pay $274 and provide the bankruptcy court with information about income, debt, expenses, and creditor holdings of secured and unsecured debt. Once the court receives the appropriate paperwork, a trustee will review the case. The trustee will request information from the debtor, communicate with creditors, and hold a creditors meeting. The debtor is also responsible for filing a repayment plan with the court. Once the bankruptcy court approves the repayment plan, Chapter 13 bankruptcy is complete.
Chapter 13 bankruptcy rules state that a creditor may no longer pursue collection activities when a debtor files for bankruptcy. As soon as debtor files the appropriate paperwork and pays the filing fee, an automatic stay takes effect. An automatic stay prohibits creditors from further attempts to collect a debt. This means that any lawsuit proceedings must cease, a creditor may not report the debt to credit reporting agencies, and the debtor’s property and income are safe from seizure. Collection activities may continue for spousal and child support, tax debt, and pension loans, however.
To qualify for Chapter 13 bankruptcy, a debtor must repay all secured creditors and priority debts in full and must repay a portion of the amount owed to unsecured creditors. “Secured debt” is a debt obligation backed by collateral such as a car or real property; “priority debt” includes child support payments and back taxes; and “unsecured debt” are those obligations that are not backed by collateral. Unsecured debt includes money owed on a credit card.
A Chapter 13 bankruptcy places a filer’s debt into a repayment plan. A bankruptcy court will not approve a plan unless the arrangement requires that the debtor repay all priority and secured debt in full. The repayment plan must also require the debtor to repay unsecured creditors in an amount equal in value to the filer’s nonexempt property. Nonexempt property includes any interest held in real property, business assets, and artwork. Once a Chapter 13 repayment plan begins, a trustee will disburse the monthly payment made by the debtor to the creditors each month.
In most circumstances, a bankruptcy court will require repayment of student loan debt. Chapter 13 bankruptcy rules treat student loan debt similar to priority debt–it is payable in full like back taxes and child support payments. Prior to 2005, student loan debt was only dischargeable when funded by a private lender. With the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act, however, privately funded student loans are now treated the same as student loans guaranteed or issued by the federal government. This means that all student loan debt is only dischargeable upon a showing of undue hardship.
Typically, it is difficult to convince a bankruptcy court to discharge student loan debt. A bankruptcy court will consider such factors as poverty, the inability to pay the loan due to a permanent disability, and a debtor’s good-faith effort to repay the loan for a long period. To have a student loan debt dismissed, a debtor must file a separate action in bankruptcy court called a Complaint to Determine Dischargeability of a Debt.
If a debtor misses a scheduled payment, Chapter 13 bankruptcy rules allow the trustee to institute an action for dismissal with the bankruptcy court. Because the debtor agreed to repay creditors according to a court-approved Chapter 13 repayment plan, a trustee may request the dismissal of the case once those creditors are no longer receiving payments. A debtor may be able to prevent the dismissal of a case by establishing their ability to repay the debt under the current plan or by requesting that the court approve a new plan.
If the bankruptcy court dismisses the case, a creditor may reinstitute collection activities against the debtor. Bankruptcy laws that prohibit collection attempts no longer protect the debtor at this point. Consequently, creditors may collect the current amount owed on the debt and any interest on the debt that accrued while the debtor was in bankruptcy.
– See more at: http://bankruptcy.findlaw.com/chapter-13/chapter-13-bankruptcy-rules-faq.html#sthash.nSHjRxCq.dpuf
Bankruptcy Lawyers in Chicago 