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Bankruptcy Assistance

September 30, 2010 By admin Leave a Comment

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Professional Debt Assistance - Prevent Cash Flow Problems From Leading To Bankruptcy

Author: Matt Couch

Bankruptcy is suitable only for those who are unemployed, right? Any person who is earning lots of money in a month should not have any reason or excuse to declare bankruptcy, right? This is how most of us think when we get our first real job. We do not bother about the terms and conditions of credit cards and personal loans because we know that we will be earning lots of money in a month.

We are confident that our college education will help us earn high salary and the booming economy will take care of our investments as well. We have a very fixed financial plan in our mind and clear that we will become a millionaire before we turn 30. Do you know that there are many such persons who began in the manner described above but are contemplating bankruptcy despite earning a sizable amount per month?

All it takes is for a single credit card issuer to reduce the grace period by half without informing you in advance. Once that happens, defaulting on your credit card debt is inevitable. Once that happens, each and every service provider will start putting pressure and will start treating you like a defaulter. You may not have read about it but your credit card agreement speaks of universal default rule. This may not be fair but you have no choice but to accept it because your signature is present on the agreement.

You find it difficult to manage the collection calls from different lenders. You're worried that your credit score will be affected. You start juggling debts. Rather than diverting your income, you start incurring more debt to repay debt. You wait for that one good month where you will be disciplined with the finances and overcome all your financial problems. However, something or the other keeps on coming up. Either it is a fancy gift for your girl or a vacation for your parents or a party for your friends to maintain your status - excuses for financial indiscipline are many.

What should you do? If you have racked up a dozen credit cards and if you are struggling to make regular repayments on each one, you should employ the services of a debt consolidation company. Get a consolidation loan by using your high credit score. Make sure it is a low interest loan. Repay all your existing debts and convert multiple debt situations into a single debt issue. Once that is done, pay your repayments promptly. You will find your debts coming down and will have more motivation and justification to be financially disciplined.

If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called "Free Debt Relief Networks" that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below:

Free Debt Advice

Article Source: http://www.articlesbase.com/finance-articles/professional-debt-assistance-prevent-cash-flow-problems-from-leading-to-bankruptcy-1901042.html

About the Author

freedebtsettlementadvice.com is a matchmaker in the debt settlement industry. They have paired up thousands of consumers up with debt settlement companies who are most likely to get consumers the best deal.


http://www.freedebtsettlementadvice.com

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Bankruptcy Exemptions

September 29, 2010 By admin Leave a Comment

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Chapter 7 Bankruptcy Exemptions

Author: David Romito

Federal and state bankruptcy laws reflect the public policy value that no one should be deprived of all of their property.  The federal bankruptcy laws, as well as the state laws where you reside, therefore, both allow for certain "exemptions."  Federal exemptions are the same for all bankruptcy filers nationwide, while state exemption limits vary from state to state. The debtor may choose whether to use the federal or state exemptions; in general it’s best to use the federal exemptions because they are more ‘generous’ (that is to say, higher).

How your assets will be treated with respect to these exemptions depends on how much ‘equity’ you have in the property. Equity for all property that is not collateralized (that is, there are no liens against it) is simply the fair market value of the property.  Equity for property that does have a lien against it (the most common examples being a house or a vehicle) is calculated simply by subtracting from the fair market value of the property any amounts you owe on loans secured by that property.  For example, let’s say your house has a fair market value of $200,000, and that you have a first mortgage outstanding balance of $150,000, and a second mortgage (or home equity loan) balance owed of $30,000.  Your equity would be calculated as:

            Fair market value:                                                         $200,00TEMPLATE

            First mortgage balance:                                                $150,00TEMPLATE

            Second mortgage balance:                                            $30,00TEMPLATE

            Total debt secured by home:                                         $180,00TEMPLATE

            Equity in home:                                                            $20,000        

Bankruptcy exemptions set a certain dollar limit on the amount of equity that you can have in a specific type of asset. If you have more equity than what the prescribed exemption allows, the bankruptcy trustee may seek permission from the court to ‘administer’ the property, that is, to sell it in order to distribute the proceeds among your creditors. 

And that raises the very important question, what are the exemption limits for the various types of property?  To help answer that question, below are listed the federal exemption dollar limits for the most common asset types.  Bear in mind, these figures are for a single debtor.  To calculate the figures for a married couple (that is, for joint debtors), simply double the dollar amounts indicated:

Real property                                                         $ 20,20TEMPLATE

Vehicle                                                                  $   3,225

Household goods (clothes, appliances, etc.)             $ 10,775

Jewelry                                                                 $   1,35TEMPLATE

Retirement accounts (401K, 403B etc.)                     unlimited

“Wildcard”                                                              $   1,075*

* There is actually a second, and much larger, “wildcard” exemption available, but it’s a function of what amounts the debtor has used in other categories and is therefore a little more complicated to calculate – you’d be well advised to talk to an attorney about this one.

In sum, then, the above should give you at least a rough idea of whether you are within the limits – as far as assets are concerned – for qualifying for a Chapter 7 bankruptcy.  If you’re not, don’t despair – this might just mean that you’ll need to consider filing under Chapter 13 instead.

Article Source: http://www.articlesbase.com/bankruptcy-articles/chapter-7-bankruptcy-exemptions-730505.html

About the Author

David Romito is a Bankruptcy Attorney handling matters in Pittsburgh and the Western District of Pennsylvania. For more answers to your bankruptcy questions, please visit his website at Pittsburgh Bankruptcy Attorney .

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Bankruptcy Faqs

September 28, 2010 By admin Leave a Comment

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The Four Bankruptcy FAQs That You've Got to Know

Author: Jim Brown

After spending 15 years as a Missouri and Illinois Bankruptcy attorney and helping 30,000 families, I've learned that people often have the same concerns when it comes to their Chapter 7 or Chapter 13 bankruptcy. So, I've put together a list of my most frequently asked questions about bankruptcy.

Q: If I file for bankruptcy, won't it cause more family troubles and even lead to divorce?

A: The opposite it usually true. Filing bankruptcy is not the problem. The problem is not being able to pay your bills and not being able to provide for your family. This is what causes the stress and anxiety to build and build.

All good, honest, hard-working people feel a strong need to pay their bills, and not being able to do so causes them to feel tremendous stress. Unless you do something to relieve this stress, it can quickly build to the breaking point...divorce.

Bankruptcy is designed to get you out from under the burden of debt, to protect your property, to lower your stress level and to let you, once again, sleep at night. If your experience is like that of other couples, you will find that filing bankruptcy (and lowering the stress level) can be a crucial first step in bringing the love and caring, not to mention hope, back into your relationship.

Q: Will I lose everything I own if I file bankruptcy?

A: Most of our clients don't lose anything. While laws are different in every state, each state still has exemptions available to protect certain property. Using Missouri as an example, there are exemptions to protect such things as your house, your car, your truck, household goods and furnishings, IRAs, retirement plans, the cash value in life insurance, wages, and workers compensation claims. There is even a "wildcard" exemption per person that can be applied wherever you want it. In those rare situations where you have more property than can be protected by available exemptions, there is Chapter 13. In Chapter 13, you can even keep this property by paying back more to your unsecured creditors.

At the same time, filing bankruptcy does not generally wipe out or get rid of mortgages or liens against your property. Therefore, if you want to keep a car, truck, home or business equipment that serves as collateral for a loan, you need to keep paying on the debt. If you make these payments and have exemptions to cover any value above what is owed, you can rest assured you will be able to keep these items.

Q: Will filing bankruptcy hurt my credit for 10 years?

A: You are getting 2 completely different concepts confused with each other. You are getting the fact that bankruptcy is on your credit report for up to 10 years mixed up with the effect that report will have on your credit. Just because something is reported on your credit report does NOT necessarily mean it will have a negative effect on your credit standing.

First, let's get one thing out in the open. By the time you need to make an appointment to see a bankruptcy attorney, your credit is already messed up or maxed out, or both, or at least strongly headed in that direction. Think about it. If your credit is already messed up or maxed out, you, more than likely, have no credit for bankruptcy to hurt.

Furthermore, in my experience if you have not re-established good credit in 2 to 4 years after you file bankruptcy, it most likely has nothing to do with the fact that you filed bankruptcy. And it certainly has absolutely nothing to do with the fact that your credit history still shows an old bankruptcy filing.

Q: Doesn't filing bankruptcy mean you're a bad person?

A: Quite the contrary. Filing bankruptcy means you're a good person, acting responsibly. Everyone wants to pay their bills. Everyone. And everyone wants to take care of their family and provide their family with all the things they need. But, if you can't do both, which is more important? Your family, of course.

Filing bankruptcy gets rid of certain debts. Getting rid of certain debts frees up money to better take care of your family. Freeing up money to better take care of your family lets you put things back in their proper order: Family first. Putting your family first is good and honorable and noble and doing so means you're a good person.

There are good reasons why almost 1,000,000 families file bankruptcy every year, and it's not because they're bad people. Lots of good, honest, hard-working people fall on hard times. Job losses, medical difficulties, family emergencies, bad decisions, failed businesses, etc., are just a fact of life. Let's be honest, life is not fair and sometimes the money's just not there. The bankruptcy laws were created with this in mind, to make sure that...if you need it...you and your family have a way to escape from the crushing burden of debt, to make sure that your family does come first, and so that you and your family can have a second chance at a "fresh start".

Article Source: http://www.articlesbase.com/law-articles/the-four-bankruptcy-faqs-that-youve-got-to-know-1616642.html

About the Author

Missouri Bankruptcy attorney James Brown has been working to relieve the debt of hard-working American families for over 15 years. He has dedicated his career to educating consumers about options for debt relief and has released 5 publications, including, "Get Out of Debt: Secrets Your Creditors Don't Want You to Know." You can request a free copy by visiting his website at http://www.CastleLaw.net .

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Bankruptsy Information

September 26, 2010 By admin Leave a Comment

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Real Bankruptcy information - How to file bankruptcy

Author: Alexander Travis

If you are thinking about filing bankruptcy, you must know how to declare bankruptcy.  Before you can file either Chapter 7 or 13, you must be able to pass under what is called a "means test". The means test identifies which people have the financial capacity to continue to pay a significant portion of their bills to creditors. The means test involves comparing the persons's income to the average income of the state or county in which the debtor resides. If the debtor's gross income is above the average, another set of calculations (based on ratios of debt to income) will identify whether he or she can file a Chapter 7 liquidation or Chapter 13 repayment case.

It does not matter where you are located, in order to file bankruptcy, there is a lot of paperwork to file. The bankruptcy process begins with the filing of a petition and many forms with the local bankruptcy court. These forms consist of itemized lists of all your assets, debts, income, expenses, as well as other very important personal background and financial information. In addition, you must file a certificate of credit counseling, tax returns (or transcripts) for the recent tax year; all tax returns that were filed with the IRS while your bankruptcy case is pending; copies of pay stubs or other proof of income received 60 days prior to filing; statement of currently monthly income and any reasonably anticipated changes in income or expenses after filing.

While in a Chapter 7 (liquidation) case, the bankruptcy court will appoint a trustee to represent the interests of your creditors. After a month or so from the date of the filing, you have to be present at a “meeting of creditors” in which the trustee will answer all questions regarding your assets, debts, and other financial information. Despite the name, banks and creditors hardly ever are at these meetings. Once finished with the meeting, the trustee liquidates the property that may be taken from you.  He or she will then take the cash and split it amongst the creditors. Once liquidation is done, the court will schedule one last hearing and discharge all debts. At this point, you no longer legally owe your creditors and they are forbidden from trying to collect anything from you.

A Chapter 13 (wage earner) bankruptcy case begins by filing the same papers as under a Chapter 7. In addition, you must file a workable plan for repaying your debts with the bankruptcy court, which will approve the plan. You start sending payments directly to the chapter 13 trustee shortly after filing. The trustee then pays your creditors according to the terms of the court-approved plan. When you have repaid your creditors according to the plan, a court hearing will be held and you will be discharged. The debtor is protected from lawsuits, garnishments, and other creditor actions while the plan is in effect.

Chapter 13 is often preferable to chapter 7 debt relief because it enables the debtor to keep a valuable asset, such as a house, and because it allows the debtor to propose a "plan" to repay creditors over time – usually three to five years. Chapter 13 is also used by consumer debtors who do not qualify for chapter 7  under the means test.

Article Source: http://www.articlesbase.com/debt-consolidation-articles/real-bankruptcy-information-how-to-file-bankruptcy-1744366.html

About the Author

Find more information on how to file bankruptcy at http://www.realbankruptcyinfo.com If you are interested in debt relief visit http://www.relieve-debt.com

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Bancruptcy Information

September 25, 2010 By admin Leave a Comment

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Real Bankruptcy information - How to file bankruptcy

Author: Alexander Travis

If you are thinking about filing bankruptcy, you must know how to declare bankruptcy.  Before you can file either Chapter 7 or 13, you must be able to pass under what is called a "means test". The means test identifies which people have the financial capacity to continue to pay a significant portion of their bills to creditors. The means test involves comparing the persons's income to the average income of the state or county in which the debtor resides. If the debtor's gross income is above the average, another set of calculations (based on ratios of debt to income) will identify whether he or she can file a Chapter 7 liquidation or Chapter 13 repayment case.

It does not matter where you are located, in order to file bankruptcy, there is a lot of paperwork to file. The bankruptcy process begins with the filing of a petition and many forms with the local bankruptcy court. These forms consist of itemized lists of all your assets, debts, income, expenses, as well as other very important personal background and financial information. In addition, you must file a certificate of credit counseling, tax returns (or transcripts) for the recent tax year; all tax returns that were filed with the IRS while your bankruptcy case is pending; copies of pay stubs or other proof of income received 60 days prior to filing; statement of currently monthly income and any reasonably anticipated changes in income or expenses after filing.

While in a Chapter 7 (liquidation) case, the bankruptcy court will appoint a trustee to represent the interests of your creditors. After a month or so from the date of the filing, you have to be present at a “meeting of creditors” in which the trustee will answer all questions regarding your assets, debts, and other financial information. Despite the name, banks and creditors hardly ever are at these meetings. Once finished with the meeting, the trustee liquidates the property that may be taken from you.  He or she will then take the cash and split it amongst the creditors. Once liquidation is done, the court will schedule one last hearing and discharge all debts. At this point, you no longer legally owe your creditors and they are forbidden from trying to collect anything from you.

A Chapter 13 (wage earner) bankruptcy case begins by filing the same papers as under a Chapter 7. In addition, you must file a workable plan for repaying your debts with the bankruptcy court, which will approve the plan. You start sending payments directly to the chapter 13 trustee shortly after filing. The trustee then pays your creditors according to the terms of the court-approved plan. When you have repaid your creditors according to the plan, a court hearing will be held and you will be discharged. The debtor is protected from lawsuits, garnishments, and other creditor actions while the plan is in effect.

Chapter 13 is often preferable to chapter 7 debt relief because it enables the debtor to keep a valuable asset, such as a house, and because it allows the debtor to propose a "plan" to repay creditors over time – usually three to five years. Chapter 13 is also used by consumer debtors who do not qualify for chapter 7  under the means test.

Article Source: http://www.articlesbase.com/debt-consolidation-articles/real-bankruptcy-information-how-to-file-bankruptcy-1744366.html

About the Author

Find more information on how to file bankruptcy at http://www.realbankruptcyinfo.com If you are interested in debt relief visit http://www.relieve-debt.com

Filed Under: Bankruptcy information Tagged With: , , , , , , , ,
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