Do-It-Yourself Personal bankruptcy
Author: Debbie Joneta
Personal bankruptcy is a dead-clearing route that a lot of people we. To cut the cost would require finding the bankruptcy yourself without paying any fees to a Johnny. The current charges for filing bankruptcy under Chapter 7 are 9 and the same under Chapter 13 4. Generally, a thorny fees ranges from somewhere around 0 to a maximum of 00. This means substantial savings are actually possible by choosing to file bankruptcy by yourself.
Types and Requirements
Chapter 7 of bankruptcy laws means that you can get total discharge of the maximum part of your debt. Chapter 13 involves repayment of debt but the period of repayment is increased and it becomes easier for debtor to get rid of his debts. The threshold is dependent on a number of factors which includes the state in which you live, your cost of living, the median income and household members.
Credit Counseling
For filing bankruptcy, it is important that you go through the credit counseling course and successfully complete it. You must make sure that the service that you are using for the course is accepted by United States Bankruptcy Courts. Although, these courses may cost somewhere around hundred dollars but paying this price is much better than fighting the get yourself.
Forms
You require a number of forms before you can file the bankruptcy yourself. You will need to include a bankruptcy petition, statement of intention, credit counseling verification, creditor matrix, fee payment installments, financial affairs, Social Security information, and financial certificate. It is up to the bankruptcy court to deny any petition without providing notice in case any form is missing or incomplete.
Expense and Debt Notification
in many states, you need to provide a list of your debts — both unsecured and secured. These debts may include car loans, credit card loans, mortgages etc. You may obtain a credit report instead of all these. You also need to show your monthly expenses such as insurance, food and utilities and you must also declare your average expenses for the entire household.
Income and Assets
You must also make a list of your assets such as cars, homes, boats or anything that you own. After you have completed the form you can move to the court house and file personal bankruptcy.
Article Source: http://www.articlesbase.com/banking-articles/do-it-yourself-personal-bankruptcy-2763286.html
About the Author
Debbie Joneta also writes about Bankruptcy and Credit issues including File Personal Bankruptcy and Filing Bankruptcy Online.
Mortgage loan not reaffirmed in bankruptcy by lawyer error. This makes our credit rating even worse-now what?
We filed BK-7 in Kansas b4 the new laws took effect. Our attorney knew we wanted 2 reaffirm our home loan and we signed the Stmt of Intent form and it is noted in the creditor matrix. After we rcv’d a discharge we assumed our home loan was reaffirmed. WRONG! The ball got dropped by our attny and/or Wells Fargo so the loan got DISCHARGED in error. We’ve made our payments on this loan faithfully b4 and after our bankruptcy because we knew we wanted it reaffirmed and we thought it was reaffirmed for the last 2 years! Now Wells Fargo just shows our loan as DISCHARGED IN BK-7. We have filed 3 credit report disputes trying 2 get them 2 show that we’ve paid our pmts on time 2 help boost our credit rating and they keep side stepping our request. We are in the process of trying 2 sell this house and it is sitting on the not-so-good RE market. WHAT HAPPENS CREDIT WISE IF WE TELL WELLS FARGO THAT THEY CAN HAVE THEIR HOUSE BACK AND SELL IT THEMSELVES? Can our attny be held liable for this?!
The form that we signed is called a Statement of Intent form that showed our complete intention to reaffirm that debt. The lawyer basically admitted that they normally send a separate mailing regarding reaffirmation requests, and they did NOT do that in our case. And as far as us making sure that debt was reaffirmed before the discharge– we thought our lawyer took care of that for us. That is what we paid them to do. We put too much trust in them, obviously. It was indeed an error of judgement to trust them completely. You wouldn’t think you’d need to babysit your lawyer for crying out loud!
Will any sort of notes about a foreclosure be added to our credit reports if we were to walk away from our home loan, or would it just stay as “Discharged in BK-7″? We even hate to walk away from our home loan because we R trying 2 build our credit back up, but Wells Fargo refuses 2 work with us and show on our credit report that we’ve faithfully made our pmts on time b4 and after the BK!
Economics question help please!!!?
Jon owes $15,000 to each of two creditors, but he only has $25,000. If he defaults on the debt (doesn’t pay), he will lose all $25,000. The legal cost of defaulting, filing bankruptcy, and liquidating his assets will be $15,000, so each of his debtors will collect only $5,000. Jon has his lawyer draw up the following letter, which he sends to each of the creditors: “I hereby offer you $5,001 if both you and my other creditor agree to cancel my debt. If either or both of you decline this offer, I will be legally in default and you will receive $5,000.” So, what happens?
Form a payoff matrix for the two creditors. They have two strategies: “Accept” or “Reject” Jon’s offer.
Is there a Nash Equilibrium? What is the outcome?
Two things,
First, yes you lawyer can be held responsible for this slip up as long as you have copies of the reaffirmation agreement.
Second, since Wells Fargo shows the home as included in your bankruptcy, you can walk away from the home and there is nothing they can do to you.
Something to think about.
Why did you not make sure this agreement was in your bankruptcy before it was discharged?
The matrix would be as follows: where the first value corresponds to creditor 1, and the second value is for creditor 2.
(accept,accept) = (5,001, 5,001)
(accept,reject) = (5,000, 5,000)
reject, accept) = (5,000, 5,000)
reject, reject) = (5,000, 5,000)
A Nash equilibrium is where both players act in their best interest given the actions of the other player.
Suppose you are one of the creditors, if the other creditor accepts, it is in your best interest to accept (since you’ll make 1$ more). So (accept, accept) is a NE.
If the other player rejects, you’ll make 5,000 either way, so it doesn’t matter what you do. So (reject,reject) is also a NE.
There is no way to determine the outcome since there are multiple Nash Equilibria.