Personal Bankruptcy - Not Something To Be Anxious About

Author: Thomas Jhon

Several thousands of Americans file personal bankruptcy even when they have better options available to them. A bankruptcy can stay with you for your life. Bankruptcy lawyers and counselors tell you that bankruptcy gives honest debtors a fresh start. Keep in mind, the fresh start is a costly restart of your financial life. Avoid it if you can. If it is inevitable, you need to know your rights, limitations, and future possibilities.

Chapter 7 and Chapter 13 are the two personal bankruptcy choices available to individuals. Chapter 7 is about liquidation of assets. It gives immediate relief of debts. The trustee liquidates the assets and repays the creditors. The property for which the debtor has a right is not liquidated. There is little or no nonexempt property under Chapter 7 bankruptcy cases.

Another option is Chapter 13 bankruptcy. There is no immediate discharge of debts in this type of bankruptcy. This is filed by persons who have a regular income. The debtor promises to repay the debts over three to five years. The debtor can keep his or her properties. In both cases, the creditors are not allowed to initiate any action against the debtor. Although no immediate discharges are available, this plan covers more debts than Chapter 7 personal bankruptcy does. At the end of the three to five year repayment plan period, the remaining unsecured debts are discharged.

The payments are made through the trustee. However, creditors can challenge the bankruptcy filing at court.

Before Filing Personal Bankruptcy

There are several provisions in effect prevent abuse of bankruptcy laws. People planning to file bankruptcy suits must first get credit counseling. Only government approved organizations can offer such counseling.

The pre-bankruptcy counseling involves appraisal of individual financial situation, exploration of alternatives to bankruptcy, and preparation of a practical personal budget plan. The organization is legally required to provide free counseling, if the individual can't pay for the services. The fee is around $50. You will also receive a certificate of completion of counseling.

There is also a debtor education session, which lasts for about two hours. Your bankruptcy plea won't be accepted unless you furnish the certificates.

About The Credit Counselor

Certificates from government approved counselors are needed for filing personal bankruptcy suits. You must take into consideration the kind of services on offer. The services, fees, fee-waiver, if needed, the qualifications of the counselors, etc. are important matters to discuss. Do your research on the counselors before you sign up for their services.

A credit counselor can also tell you if personal bankruptcy is the best choice you have. If bankruptcy is inevitable, they can also tell you whether to go for Chapter 7 or Chapter 13.

Except in minority of cases, bankruptcies are due to the sloppy behavior of individuals. If you plan to make a fresh start with a personal bankruptcy, make sure your personal finance decisions are always wise.

Article Source: http://www.sooperarticles.com/law-articles/copyright-law-articles/personal-bankruptcy-not-something-anxious-about-28339.html

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The individuals facing multiple debts can file a petition under chapter 7 or chapter 13 of the bankruptcy law. These chapters deal with personal bankruptcy and to explore the available legal options, it becomes important to consult a personal bankruptcy attorney.

Bankruptcy And Divorce

Author: Natalia Kobseva

Bankruptcy and Divorce

It is one of those unpleasant topics to discuss. But in reality - it happens. Two people come together with love and optimism to start a new life together and then it all falls to pieces. Such is life.

Divorce can be amicable or it can be a real war of the roses. And things can get extremely messy and ugly when it comes to the division of assets and liabilities. One party might unwisely or even worse - spitefully consider to file for bankruptcy if they feel they might be ordered to make financial payments to the other party as part of a divorce settlement. Or in some cases, the effects of the divorce itself might leave one party in an unenviable financial position in which they might (again, unwisely) consider to file for bankruptcy.

What I want to stress in this article is not so much the reasons for filing bankruptcy when it comes to divorce. Because while bankruptcy attorneys are quick to take your money and give you the false impression that bankruptcy is a walk in the park - the fact is that bankruptcy is in nowhere near as simple, cut and dry, and beneficial at all when it comes to sorting out the finances of a party involved in a divorce. In fact, there a great many Negative consequences - Highly negative consequences to filing for bankruptcy, whether a divorce is involved or not.

These include: the virtual destruction of the filer's credit record, the bankruptcy remaining on the filer's credit record for up to a full 10 years, the near impossibility of obtaining future credit during the time period, the inability rent an apartment, being required to pay deposits for future home utilities such as gas, electricity, water, internet, cable TV, etc. and the very real possibility of being passed over for a job, as more and more employers these days are performing credit checks as part of their routine job applicant screening process.

Chapter 7 Bankruptcy Alternatives

What you need to take with you today from this reading is the fact that bankruptcy is not the way to go. When it comes to being in a financially unstable position, there are in fact much better solutions to help one reduce and eliminate debt - without the need to even consider filing for bankruptcy. Chief among these programs is Debt Settlement. This programs involves a debt settlement firm negotiating on your behalf with your creditors to come to an agreement or settlement for a vastly reduced amount. This debt reduction is typically in the range of 50% and can be as high as 75% to 80%. Literally pennies on the dollar.

To learn more about debt settlement and other bankruptcy alternatives, please visit Debt Relief.bz

Article Source: http://www.articlesbase.com/personal-finance-articles/bankruptcy-and-divorce-1267384.html

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Noted Financial Author

The Difference Between Chapter 7 and Chapter 13 of the Bankruptcy Code

Author: Law Office Of Goldstein

Individuals who have amassed large debts have many options. However, if an individual finds that non-bankruptcy alternatives are not feasible, a decision then must be then made between filing a Chapter 7 liquidation proceeding or a debt adjustment proceeding under Chapter 13.

A Chapter 7 bankruptcy filing is best described as obtaining a discharge from debts (with some exceptions) while retaining some assets such as a home, household goods and an automobile as long as they do not exceed certain values determined by the U.S. Bankruptcy Code. Chapter 7 is consider a "liquidation" decision however if filed correctly and using the Bankruptcy Code to the best of your ability some assets can be retained while crushing debt is removed.

To be eligible to file a Chapter 7 bankruptcy the filer has to reside or be domiciled in the United States. In addition, they can not have been a debtor in a bankruptcy case in the 180 day period prior to filing the current bankruptcy case; they must receive counseling from an approved nonprofit budget and credit counseling agency prior to the filing and pass the "median family income" test. In order to receive a discharge in a Chapter 7 an individual may not have received a Chapter 7 bankruptcy discharge in the previous eight years or a Chapter 13 discharge in the previous six years.

The element which will fully determine if you can file a Chapter 7, is the "median family income" level. The individual or couple must review income made within the previous six months and average it out. If when the average income is measured against the "median family income" as stated in 11 U.S.C. § 707(b)(7) and it falls below, then a Chapter 7 filing is appropriate. If the household income exceeds the "median family income", then the individual or couple will be subject to the means testing. The means testing calculation takes the average amount of the income received during the six-month period prior to the bankruptcy filing and subtracts it from the average monthly expenses. This determines the margin of excess income. Using this figure you determine if the excess income exceeds the margin allowed by 11 U.S.C. § 707(2)(A)(i) and if you are eligible to file a Chapter 7 bankruptcy.

If you are unable to file for Chapter 7 due to the "median family income" level being too high and failing the means testing, then your other option is filing a Chapter 13. A Chapter 13 bankruptcy filing allows a person to seek protection of their property and develop a plan of paying creditors by making monthly payments to a Trustee under Court supervision. The plan can be for as little as 24 months or for as long as 60 months.

To be eligible to file a Chapter 13 bankruptcy the filer must reside in the United States, have a regular income, have unsecured debt less hand $336,900 and secured debt less than $1,010,650 and receive counseling from an approved non profit budge and credit counseling agency. In order to obtain a discharge in a Chapter 13 an individual must not have been granted a discharge in a Chapter 7 bankruptcy in the previous 4 years or been granted a Chapter 13 discharge in the last 2 years.

The primary advantage of a Chapter 13 filing over a Chapter 7 filing is that a debtor by paying a portion of his or her pre-bankruptcy debts over the life of the Chapter 13 plan can obtain a discharge of the unpaid balances while retaining all of their asset, avoid foreclosure of a home and more debts are deemed dischargeable in a Chapter 13 verses a Chapter 7.

The disadvantages to a Chapter 13 verses a Chapter 7 is that the filer will have to pay something to unsecured creditors, a reduced amount against entire debt. However in a Chapter 7 filing it could result in a discharge from most or all pre-bankruptcy obligations without any payments. Another disadvantage to a Chapter 13 is that a discharge will not be received until all payments required by the plan are done whereas a Chapter 7 debtor will usually receive a discharge in three to five months from filing.

It is essential that when trying to figure out if bankruptcy is the right option to contract an attorney to discuss the entire matter, review your current financial situation, determine what is most important to keep and let go and decide which is the best plan for their situation.

Article Source: http://www.articlesbase.com/finance-articles/the-difference-between-chapter-7-and-chapter-13-of-the-bankruptcy-code-624712.html

About the Author
The forgoing article about bankruptcy choices was drafted by The law office of Goldstein and Clegg, LLC, a debt relief agency. More information can be found on their blog, http://www.goldsteinandclegglaw.com/bankruptcy_blog

What Chapter 11 Bankruptcy Law Entails

Author: Peter Gitundu

Chapter 11 bankruptcy law is also known as the reorganization code applicable to partnerships and corporations. It allows for businesses to make a plan on how to pay off their debts without having to sell their property. This comes as an opportunity for businesses to keep on operating even when they are in a financial crisis. Partnerships and corporations are eligible to file under this chapter in court. It may be voluntary, meaning that the debtor will file the petition, or involuntary where creditors who meet some standard file the petition.

To have the court accept the bankruptcy petition, he should also attach financial documents of the previous years operations. They must have gone through credit counseling on how to manage the debt. A fee is paid to the court clerk to cover filing charges and to pay the trustee. These can be paid in installments for not more than one eighty days after filling the petition. Once a voluntary or involuntary petition has been filed, he assumes the position of a “debtor in possession” meaning that he is still in control of the property.

For the bankruptcy petition to be accepted in court, he should also file a reorganization plan and a disclosure statement which includes information on the assets, liabilities and the business affairs. This enables the creditor to have an informed perspective on the reorganization plan filed.

Chapter 11 identifies the debtor under a corporation or a partnership as a separate entity from the business and as such personal property is not at risk. However, for a sole proprietor, he is part and parcel of the business and therefore personal property may be at risk.

Article Source: http://www.articlesbase.com/personal-finance-articles/what-chapter-11-bankruptcy-law-entails-892126.html

About the Author

Peter Gitundu Researches and Reports on Bankruptcy. For More Information On Chapter 11 Bankruptcy, Read More Of His Articles Here CHAPTER 11 BANKRUPTCYYou Can Also Add Your Views About Chapter 11 Bankruptcy On His Blog Here CHAPTER 11 BANKRUPTCY

Bankruptcy Information: Know The Facts Before Filing Bankruptcy

Author: Simon Volkov

Obtaining accurate bankruptcy information is crucial in order to determine if filing personal or business bankruptcy is the best option. In 2005, significant changes were made to the United States Bankruptcy Code through the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act. In order to comply with BAPCPA regulations, petitioners should retain the service of a qualified bankruptcy lawyer.

An important piece of bankruptcy information is that BAPCPA requires all petitioners to undergo the 'means' test. This financial tool compares debtor's income with their state's median income level. Using mathematical calculations, the means test determines how much debt must be repaid.

In most cases, debtors are required to file Chapter 13 bankruptcy and establish a repayment plan. In the past, many debtors petitioned the court seeking Chapter 7 bankruptcy protection. Chapter 7 requires debtors to liquidate assets to repay debts. Any outstanding balances are dismissed and the debtor has the opportunity to make a fresh financial start.

With bankruptcy chapter 13, debtors are required to repay a portion of their debts over an extended period of time. Generally, Chapter 13 payments extend for three to five years and can cause serious financial hardship; particularly if job loss or unexpected emergencies arise.

During the repayment period, debtors must pay a large amount of disposable income toward repayment of debts. If debtors miss a payment, creditors can petition the court and seek dismissal.

In certain situations, the bankruptcy Trustee can negotiate with creditors if extenuating circumstances occurred causing the debtor to fail out of bankruptcy. If the problem is temporary, creditors generally give debtors a second chance. However, debtors who become repeat offenders don’t receive much sympathy.

When debtors fail out of bankruptcy they lose all protection from the court. Creditors can move forward with collection actions, including foreclosure. It is important to note that if a person files bankruptcy to save their home from foreclosure and later fails out of bankruptcy, foreclosure proceedings will commence where they left off. In some cases, foreclosure can occur within as little as three days.

During Chapter 13 repayment, debtors must do whatever it takes to stay on track. Otherwise, they will lose court protection, and will likely lose their home and all money invested in it. For this reason alone, all bankruptcy alternatives should be explored before making a final decision.

Alternatives to bankruptcy include debt settlement, debt consolidation, budgeting and credit counseling. It is important to research all available options and understand the pros and cons of each.

One of the most accurate sources of bankruptcy information is the Department of Justice, U.S. Trustee Program website. The DOJ presents thorough information on both personal and business bankruptcy, and includes an entire section on BAPCPA rules and regulations. A list of approved credit counseling agencies is also available at the U.S. Trustee website.

Article Source: http://www.articlesbase.com/personal-finance-articles/bankruptcy-information-know-the-facts-before-filing-bankruptcy-1880654.html

About the Author

Simon Volkov is a private real estate investor who specializes in buying and selling foreclosure, bankruptcy and probate real estate. Simon has published numerous bankruptcy information articles via his website and throughout the online community. If you are facing bankruptcy or foreclosure and need to sell your home quickly, visit www.SimonVolkov.com today.

Do It Yourself Bankruptcy Filing Procedure

Author: Peter Gitundu

Filing for bankruptcy is not a smooth sailing process. It calls for the services of an experienced attorney. However, this calls for an additional cost, which may not be readily available, considering that you are already broke. For this reason, there has to be an easier way out and that is where do it yourself filing comes in.

Note, however, that you are highly advised to first look for other alternatives before deciding to file for insolvency. If you look more closely, you will find that you can try writing to your creditors, explaining how you plan to settle the debts. If your bankruptcy is as a result of overspending, then you can start working on a budget that you will be committed to.

If the budget is well balanced, you might be surprised that you could be able to save just a little bit more of your money to start sorting out your creditors. If all this fails and you decide it is time to go public and file for insolvency, then you could cut on the costs of hiring a lawyer and do it yourself. How? First go for expert advice on what you are required to know, which includes knowledge about the chapters under which you are supposed to file.

Once you are sure you can be able to represent yourself even to your creditors, you  can go ahead and file for insolvency. What then follows is that you have to notify all your creditors that you have filed for bankruptcy so that they will quit harassing you as they seek compensation.

Article Source: http://www.articlesbase.com/personal-finance-articles/do-it-yourself-bankruptcy-filing-procedure-891842.html

About the Author

Peter Gitundu Researches and Reports on Bankruptcy. For More Information On DIY Bankruptcy, Read More Of His Articles Here DIY BANKRUPTCYYou Can Also Add Your Views About DIY Bankruptcy On His Blog Here DIY BANKRUPTCY

How To File Bankruptcy And Save On Legal Expenses -- 3 Ways Of Filing Personal Bankruptcy

Author: Roilee Mandeville

How can you begin with your bankruptcy? If you want to declare yourself bankrupt you have to start the process by filing the official bankruptcy forms. You must know the several methods on how to file for bankruptcy. Your objective is to get the most inexpensive bankruptcy solution and save huge money on legal expenses. This article will give you an overview of the different process of filing for bankruptcy. This article is not a substitute for legal advice, and it is not intended to give you specific legal advice on your financial situation.

The Safest Method

This is the easiest and safest way to file personal bankruptcy -- retain a bankruptcy lawyer full-time. The attorney will guide you through the whole bankruptcy process. It is the lawyer's job to evaluate, prepare and file your case. During the creditors meeting your attorney will handle all the tough issues that may arise. The only negative in using this method is that it costs more. You must find a way on how to filter attorneys the right way for you to get the best workable deal if you want to use this method.

The Hybrid Method

This method is the most followed technique in filing for bankruptcy. The hybrid method normally works best in filing Chapter 7. The key component here is to hire the services of a lawyer or law firm to prepare your forms. You need to pay the service provider with a fixed fee. Once they file your documents you're on your own. You can save large amount on legal fees because half of the solution is a do-it-yourself work. You should look for a bankruptcy preparation service that will also give you a mini seminar on how to manage the do-it-yourself portion as part of the package.

The Cheapest Method

This method is a full do-it-yourself (DIY) solution or "pro-se" filing. You need to educate yourself with the complexity of the bankruptcy laws. You can download the official bankruptcy forms free but it is usually easier to do this method if you buy an up-to-date bankruptcy book or a bankruptcy kit. If you try to ask instructions from your local court clerks they will say they can't help you. They will not give you advice on how to fill up the forms because that would be "practicing the law" -- a task reserved only for licensed bankruptcy lawyers.

What To Do Next?

Now that you know the different ways of filing personal bankruptcy, which method are you going to select? The new bankruptcy law does not require you to have an attorney, but it is in your best interest to seek the advice of an seasoned bankruptcy attorney. If you choose to file bankruptcy without the help of a lawyer, you will need to have to exhibit a lot of patience and diligence. Keep in mind and remember that when it comes to personal bankruptcy, you either liquidate your assets or you protect them.

Article Source: http://www.articlesbase.com/finance-articles/how-to-file-bankruptcy-and-save-on-legal-expenses-3-ways-of-filing-personal-bankruptcy-782498.html

About the Author
Do you want to know where you can get inexpensive bankruptcy filing services? Find out how to file personal bankruptcy with easy, fast, and inexpensive bankruptcy solutions. Go to http://www.bankruptcylawyersandattorneys.com/how-to-file-bankruptcy.html and get a free e-book when you visit today!

Not many things can be as hard as having to declare yourself bankrupt, whether in a personal capacity or a business capacity. The Los Angeles bankruptcy system offers several ways of improving your situation after surviving bank.

As a person or a business, filing bankruptcy is a big step in your financial life, in either circumstance it seems to demonstrate that you have no control over your financial state and by extension over your life. This is however something that is becoming a fact of life for a far greater number of people than most people would ever guess or even care to admit. The causes vary greatly from case to case, but the end result is always the same.

- According to The Los Angeles Bankruptcy system, what to do after filing bankruptcy -

Thanks to the Los Angeles bankruptcy system, refinancing is possible, although can seem like an especially difficult challenge, but it does not have to be like that. Six months after your bankruptcy has been finalized, you can find lenders willing to refinance your mortgage. As a matter of fact, refinancing your mortgage can help rebuild your credit to good standing in more or less two year

JC Law Group specializes in helping individuals and families in the Bay Area with filing for Bankruptcy and debt relief. Their areas of practice focus on Chapter 7 and Chapter 13 bankruptcy. If you are burdened by debt and want to explore filing bankruptcy as an option for relief, they can help you very well.

Filing for bankruptcy is not a reflection on you as a person. Perhaps you owe more on your home than what it is worth and you are struggling to make the payments, you are going through a life changing experience such as a serious illness, loss of employment, divorce or death in the family. You do not have to go on living with the constant calls from the creditors or mounting debts. Bankruptcy laws allow people who are overwhelmed by debt to get a fresh start easily.

According to the American Bankruptcy Institute "household debt is at a record high relative to disposable income." The Administrative Office of the U.S. Courts reported that the number of filings for the year ended March 31, 2003 "exceeded 1.6 million for the first time in any 12 month period," a 15.1 percent increase from the previous year.

There are two types of personal bankruptcy: Chapter 7 and Chapter 13. Chapter 7 Bankruptcy and Chapter 13 are legal proceedings that are available to a person to cope with the financial crisis. Personal bankruptcy must be filed in a federal bankruptcy court. You will have to pay about $160.00 in court fees. Attorney fees will be additional.

Chapter 7 of bankruptcy involves the liquidation of all your assets that are not exempt from the bankruptcy settlement. Exempt property can include automobiles, some household furnishings, and property needed for work-related use; for example if you were a mechanic the tools you use to perform your work would be exempt from the bankruptcy settlement. Exemption amounts vary from state to state.

A Chapter 13 bankruptcy allows you to keep property, like a mortgaged house or car, as long as you have a steady income. Chapter 13 bankruptcy is a court-ordered and approved repayment plan to your creditors. This allows you to use your future income to pay back your debts over a 3-to-5 year period without surrendering any property. Once you complete the payments under the plan, your debts are discharged by the court.

Both types of bankruptcy may get rid of unsecured debts and stop foreclosures, repossessions, utility shut-offs, and debt collection activities. Both provide exemptions that allow people to keep certain assets, although exemption amounts vary.

The sweeping changes to the laws in 2005 made filing bankruptcy more complex, and often inaccessible to most people, particularly those with low incomes. Attorney

Exemption laws are crucial to any personal bankruptcy filing. Indeed, the availability of exemptions is usually key to the determination of whether to file bankruptcy in the first place. If the debtor has significant amounts of property that could potentially be lost in a chapter 7 liquidation, chapter 13 may be the answer. Even in a chapter 13 setting, the value of nonexempt property may determine the minimum that must be paid to unsecured creditors. All bankruptcy lawyers can agree about the fundamental importance of the exemption laws, however, sometimes it can be tricky figuring out which state's exemption laws apply.

When states have opted out of federal exemption standards and created their own, choice of exemption law is decided by domicile. The state exemption law that applies to a debtor is determined by the state in which the debtor's domicile has been located for the 730 days (two years) immediately preceeding the filing. What if the debtor has lived in two different places in the past two years? For example, North Carolina has experienced rapid growth in population by people drawn to its pleasant climate and strong economy. For the new North Carolina resident formerly of Florida whose exemption laws apply?

If the debtor's domicile has changed in the last two years, the determining factor for exemption law purposes will be where the debtor resided for the 180 day period preceding the two year period. In other words, we look back two years plus 180 days. Wherever the debtor spent the majority of the 180 day period will be his or her exemption state. The plot thickens when the debtor's exemption state requires that a debtor be a resident to take advantage of its laws. Some states such as Goergia limit their exemption laws to domiciliaries (defined as someone who lived in Goergia longer than anywhere else in the 180 day period preceeding the bankruptcy filing).

So what becomes of the debtor who lived in Goergia for 10 years but moved to North Carolina 1 year ago? Let's run through the analysis. Since the debtor has not lived in North Carolina for the last two years, North Carolina exemption law is not applicable. We turn to the Goergia bankruptcy exemptions. But wait! Goergia law mandates residency in Goergia in order to claim its exemptions. Have we created the Yasir Arafat of bankruptcy debtors? No protection from any bankruptcy exemption laws. Thankfully, No. If the effect of this complicated residency scheme is to render the debtor ineligible to claim any exemptions, the debtor may elect to exempt property under the federal exemptions, even if the state of the debtor's domicile is an opt out state.

Charlotte bankruptcy lawyer John O'Connor contributing. With offices serving Winston-Salem, High Point, Greensboro and Charlotte, North Carolina, The O'Connor Law Firm specializes in consumer bankruptcy as well as real estate finance issues.*