New York Bankruptcy Lawyers: Chapter 7

Author: marryzalaa

Bankruptcy is a legally declared inability or impairment of ability of an individual or organizations to pay their creditors. Bankruptcy law provides for the development of a plan that allows a debtor to resolve his debts through the division of his assets among his creditors. This supervised division also allows the interests of all creditors to be treated with some measure of equality. Few bankruptcy law proceedings allow a debtor to stay in business and use revenue generated to resolve his or her debts.

Customer advocate site designed to tell you, the people what you need to know about this new law with words you can understand. Many people turn to a bankruptcy attorney for help. Bankruptcy Lawyers can help explain bankruptcy law and ensure that the bankruptcy process goes as smoothly as possible. When most people think of bankruptcy, they think in terms of Chapter 7, where the unsecured debts are normally discharged in full. Bankruptcy of any variety is a difficult or deal at best, but at least with Chapter 7, a debtor was able to wipe out their debts in full and get a fresh start. Chapter 13, however, is another story, since the debtor must pay back a significant portion of the debt over a 3-5 year period, with 5 years being the standard under the new law. Prior to the advent of the “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005,” the most common reason for someone to file under Chapter 13 was to avoid the loss of equity in their home or other property. And while equity protection will continue to be a big reason for people to choose Chapter 13 over Chapter 7, the new rules will force many people to file under Chapter 13 even if they have NO equity. That’s because the means test will take into account the debtor’s income level.

Filing Bankruptcy is a difficult decision to make. In 2008 over 1 million Americans filed personal bankruptcy in order to improve their financial situation. Bankruptcy can help you prevent foreclosure of your home, stop debt collector harassment and get a fresh financial start.

However, the figures used by the court for living expenses are NOT your actual documented living expenses, but rather the schedules used by the IRS in the collection of taxes. A big problem here for most consumers is that their household budgets will not reflect the harsh reality of the IRS approved numbers.  So even if you think you are “safe,” and will be able to file Chapter 7 because you don’t have $100 per month to spare, the court may rule otherwise and still force you into Chapter 13. Some of your actual expenses may be disallowed. What remains to be seen is how the courts will handle cases where the cost of mortgages or home rentals are inflated well above the government schedules. Will debtors be expected to move into cheaper housing to meet the court’s required schedule for living expenses? No one has any answers to these questions yet.

It will be up to the courts to interpret the new law in practice as cases proceed through the system. The two most common consumer bankruptcies are Chapter 7 and Chapter 13 bankruptcy. Sponsoring bankruptcy lawyers handle these types of bankruptcies exclusively so you can be sure you are getting accurate legal advice when you file bankruptcy. Bankruptcy attorneys will fight to protect your rights and your property. Bankruptcy attorneys fight the aggressive and annoying creditors for you. They can help you keep your home, vehicles and other property. A bankruptcy lawyer will be committed to getting you debt relief and providing you with valuable information, services and advice to get you a better financial future. There are many convenient locations to make filing bankruptcy or learning about the alternatives we offer, even easier.,

Article Source: http://www.articlesbase.com/bankruptcy-articles/new-york-bankruptcy-lawyers-chapter-7-1545458.html

About the Author

Storobin & Spodek LLP is a NY Chapter 7 law firm. If you are looking to speak to a Bankruptcy Lawyer New York, please call (800) 391-8392

The Advantages Of Chapter 11 Bankruptcy

Author: Joseph Seagle

Chapter 11 bankruptcy was originally designed for businesses but individuals may also file under this chapter. Those individuals who exceed the debt limits of chapter 13 bankruptcy are required to file under chapter 11. The current debt limits for chapter 13 is $1,010,650 for secured debts and $336,900 for unsecured debts. The debt limits appear to be low for those individuals who own more than one property whose values have dropped significantly.

There are many advantages of being in chapter 11 as opposed to chapter 13. When individuals file for chapter 7 or chapter 13 bankruptcy, they are subjected to a means test. Those debtors who are above the median income limit for their household size cannot file under chapter 7 and if they file under chapter 13, they are required to make payments in a five year plan. However, the means test does not apply to the individual debtors in chapter 11 cases so they may propose repayment plans that are less than five years and therefore, they will end up paying less of their disposable income to unsecured creditors.

In chapter 11, the debtors can modify their secured debts such as car loans and mortgages. There is a time restriction in chapter 13 cases where the debtor must have financed the vehicle more than two and half years ago before the loan can be reduced to the value of the car. However, in chapter 11 cases there is no time restriction so if you purchased a vehicle a year ago and if the loan is more than the value of the car, you are only required to pay back what the car is worth and not the original balance. In both chapter 11 and 13 cases, the debtors can modify the mortgages on their rental properties. For example, if the value of the property has dropped below the outstanding mortgage, you are only required to pay back the amount based on the current value of the property. The only caveat is that individual debtors are not allowed to modify their primary residence.

Once the values on the secured properties have been established, the debtor will then propose a plan of repayment of the secured and unsecured debts. The plan duration can be controlled by the debtor such as a three year or longer plan. The debtor must submit the plan to the creditors for a vote and if the case is to proceed forward, the debtor must receive at least one vote from the creditors. The remaining creditors that object to the plan can be forced to accept the plan by the court which is called a

Article Source: http://www.articlesbase.com/law-articles/the-advantages-of-chapter-11-bankruptcy-1917867.html

About the Author

Joseph Seagle, Bankruptcy Attorneys Orlando, Florida

Steps to Take Before Filing Chapter 7, Chapter 13, or Chapter 11 Bankruptcy in Tucson

Author: Jeffrey Judge

Steps to Take Before Filing Chapter 7, Chapter 13, or Chapter 11 Bankruptcy in Tucson

Bankruptcy is a legal proceeding in which a person who cannot pay his or bills can get a fresh financial start.  The first step is to stop using credit in any form.  You can still use your debit cards normally but no new charges on credit cards or new personal loans.  Any recent debts may considered fraudulent or an abuse.  The second step to consult with an experienced bankruptcy lawyer who will guide you through this complex area of law. 

Bankruptcy is a very complicated and confusing area of law.  It is critical that you consult with an attorney experienced in bankruptcy before you make any mistakes that may delay and prevent your filing.  Third, you need to complete a Credit Counseling Class.  Within 180 days before you file chapter 13 bankruptcy in Tucson, you must receive budget and credit counseling from an approved credit counseling agency.  The agency will review possible options available to you and will assist you in reviewing your budget.

Some of these agencies offered debt management plans (DMP), which is a plan to repay some or all of your debts.  They organize and offer a repayment plan to your creditors.  If your creditors agree, you start sending the DMP one monthly payment and they distribute payments to your creditors as agreed.  If you are able to complete the program, you will have paid off all of your credit card debts.

Is a Debt Management Program a good idea?  A DMP can be a good idea for some.  However, counseling agencies have been known to force individuals into a DMP when bankruptcy may actually be a better option for them.

When speaking to a debt counselor you should keep the following in mind:

• Bankruptcy is not necessarily to be avoided at all costs.  In many case, bankruptcy may actually be the best choice for you. 

• If you agree to a debt management plan that you can’t afford, you may actually end up in bankruptcy anyway.

• Entering a DMP will be reported to credit bureaus and will also negatively affect your credit score.

• Debt management programs generally only work with credit card companies.  Banks, car lenders, payday loans stores generally refuse to work with DMPs.  If you have more than credit card debt then a DMP probably won’t provide much help.

It is important to note that just because an agency is “approved” for bankruptcy counseling, does not guarantee that the agency is good.  Even the good agencies may not be able to help if you are already facing deep financial trouble.

Beware of any debt management program that promises that you can pay off your debts at a fraction of what you owe.  Many of these programs are scams with only the intent to your money.  I meet people every week who have been the victim of this type of scam.  My experience is that most creditors will not consider settling for less than the total owed without a lot of pounding your head against the wall and a ton of documentation regarding your finances.  Even then, they generally will deny any reduction. 

For debt relief and bankruptcy help in Tucson, it is a good idea to contact an experienced bankruptcy attorney first.  Unlike a credit counseling agency, a bankruptcy attorney is qualified to give you legal advice to assist you with your financial situation.   They can also refer you to a legitimate debt management program if you want to explore that option.

Article Source: http://www.articlesbase.com/bankruptcy-articles/steps-to-take-before-filing-chapter-7-chapter-13-or-chapter-11-bankruptcy-in-tucson-1756772.html

About the Author

Brought to you by Jeffrey Judge, an attorney that heads one of the bankruptcy law firms in Tucson. Judge Law Firm, 1647 N. Alvernon Way, Suite 1; Tucson AZ 85712; 1-866-958-4389.

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

Why Do You Need Bankruptcy Attorneys?

Author: Judy Dixon

It is abysmal and often very difficult to take see yourselfbeing insulted for debt, to see your property repossession and face foreclosure or simply not being able to see yourself on the other side of all your debts. If you also find yourself in such a case of mounting debts and torturing creditors then perhaps you should take the first appointment you get with a bankruptcy attorney. For bankruptcy lawyers it is their business and they know about everything that goes around in it so they will be able to sketch out a viable alternative for you which you might not even think can be worked out. So give in an expert and let them help you.

Along with repaying your debts and the bankruptcy attorney can also guide you to sell off your property in order to repay the creditors. And if selling off your property is not exactly your idea of getting rid of all your debts the bankruptcy lawyers can also assist you in making an arrangement with your creditors approved by the court to repay them in a pre-determined frame of time. Again, if you hire a bankruptcy attorney they are updated with every last bit of information regarding the United States Bankruptcy code. Bankruptcy is not an easily gliding procedure it can really confuse nonprofessional so a bankruptcy lawyer really can make things easy and facilitate them for you. The most common procedures in bankruptcy proceedings are Chapter 7 wherein you follow the debt liquidation or reorganization. The other one is arranging for repaying the indebted money under the Chapter 9, 11, 12, or 13 bankruptcies.

If you are thinking of filing for bankruptcy, a bankruptcy attorney is recommended. The rules of bankruptcy have changed and new norms have been introduced which a nonprofessional cannot be expected to know about. Again, the new rules have made it only difficult to file for bankruptcies all the more reason you will need bankruptcy lawyers to make your experience more pleasant after everything that you are already going through. They will be able to suggest you ways to get rid of your debt mountains, deal with your property and assets in a way that will benefit you and give you more time at hand.

Article Source: http://www.articlesbase.com/banking-articles/why-do-you-need-bankruptcy-attorneys-1634939.html

About the Author

Bankruptcy Attorneys also work with the creditors and give them the assurance that their funds will also get recovered back. So a bankruptcy attorney is obviously a person you are going to thank once you see the benefits of hiring them.