CREDITOR CLAIMS DURING BANKRUPTCY TO BE TAKEN SERIOUSLY

Author: Judy Dixon

Proof of Claims:

Filing bankruptcy does not mean that the court is going to listen to the debtor only. The court gives a chance to the lenders as well to submit their claims. These claims are called “proof of claims”

Approving Proof of Claims:

If in the midst of the process of filing bankruptcy, the creditor submits the proof of claims, the court asks the debtor whether he/she objects to the proof of claims. Now, if the bankruptcy applicant does not respond to this query of the court, according to the personal bankruptcy rules, it is taken for granted that the bankruptcy applicant does not have any objection to the proof of claims. This means that the applicant approves the proof of claims and applicant has to pay if possible what is owed to the creditor or lender during the process of bankruptcy. The priority of the bankruptcy will be affected by this. This is also going to have a big effect on the secured and non-dischargeable debt.

Consequences of Approving Proof of Claims:

Suppose during the process of bankruptcy, a claim for child support is made. This claim could enormously inflate the amount that you owe. Now if you do not challenge it during bankruptcy, you will not get a second chance to take objection to it. Since you have not taken any objection it will be considered allowed by you and you have to pay this if possible during bankruptcy. This situation could be repeated in case of taxes, student loans or other secured debt. Because of this, one could be servicing the claim even after filing bankruptcy.

Challenging the Proof of Claims:

To avoid this sort of troubles one should thoroughly check the claims of the creditors during bankruptcy. If you find any inaccuracy, you should immediately take objection to it forth the bankruptcy court. You should take help of bankruptcy attorneys or bankruptcy lawyer to represent your case.

Article Source: http://www.articlesbase.com/personal-finance-articles/creditor-claims-during-bankruptcy-to-be-taken-seriously-1449218.html

About the Author

BankruptcyOnly is a nationwide network of bankruptcy attorneys and Internet professionals who are ready to assist you immediately.

Understand your Lack of Options With Bankruptcy Law

Author: Jon Arnold

Contemplating filing for bankruptcy is a decision that no one looks forward to making. If there was another way, you would take it, but sometimes filing for bankruptcy is the only option. It is not an easy decision, nor is it one that should be taken lightly. You have talked to attorneys and found out their fees. You are already struggling financially; you are debating about filing for bankruptcy on your own, and save your self the attorney fees.

The new laws have made it much more difficult to file for bankruptcy without an attorney. There are new requirements and qualifications for filing the different chapters of bankruptcy. For example, every person that wants to file for bankruptcy must pass a means test. A means test is a test based on all of your expenses and all of your income and this helps you know whether you qualify to file a Chapter 7 or if you must file a Chapter 13.

If your income is greater than what the state’s median is set at, then as far as the government is concerned, you are capable of paying some of your unsecured debt. The court can also say that you have to file a Chapter 13 if they believe that you are abusing the system by filing for a Chapter 7. In essence, you must be approved to file for bankruptcy, especially a Chapter 7. In other words, just because you file bankruptcy does not mean that you will be able to file bankruptcy, because it may not be approved, which is another reason to have a bankruptcy lawyer involved and not attempt it on your own.

This alone is reason enough to sit and talk your case over with an attorney to make sure that you are filing for the correct bankruptcy. Have your attorney go over your income and expenses with you to make sure that you are disclosing everything. You are asking for trouble if you don’t. The government is fine with you filing your bankruptcy yourself, but the U.S. Trustee still holds you to the same guidelines it holds the attorneys to. You must know the law and what it requires, and if you do not deal with bankruptcy law as a vocation 40 hours a week like a lawyer does, you may be asking for even more trouble.

Retaining an attorney to help you go through the bankruptcy process also insures that you go to court with all the proper paperwork, and that your documentation is in order and correct. Having an attorney also helps to answer questions as you receive the various letters from the court and creditors after your “Meeting of the Creditors” court hearing.

Additionally you will not be able to file bankruptcy until your have gone through credit counseling. The credit counseling has to be done by a state approved agency, and it must be done before filing as well as after you have filed. These are two different classes and an attorney can help you make sure you are taking the right class at the right time. Often bankruptcy attorneys have computer access to those mandated classes and you can take them in their office.

Bankruptcy is not easy for anyone. Having to file is often a very emotional time for those that file. Having an uninvolved person to help make sure that you are meeting all the requirements and addressing the court and creditor issues can make it easier to get through. With the new bankruptcy laws, having an attorney to help you is really a must.

Article Source: http://www.articlesbase.com/finance-articles/understand-your-lack-of-options-with-bankruptcy-law-233815.html

About the Author

For more insights and additional information about Bankruptcy Law as well as getting a free bankruptcy evaluation from a qualified bankruptcy lawyer who is local to you, please visit our web site at http://www.bankruptcy-data.com

Recovering From Bankruptcy

Author: L Edge

Recovering from a bankruptcy takes some time and some work on your part but is easier than you might imagine. After a bankruptcy, you probably think it will be almost impossible to obtain anything on credit or qualify for a loan ever again. The fact is that with on-time payments you can qualify for a credit card or a loan with a reasonable interest rate in as little as 12 months.

Filing a bankruptcy provides you with a fresh start so that you can put your financial problems behind you and start to establish good credit. This fresh start doesn't happen by itself. To get the best results, you need to be pro-active with your finances.

Here's how:

1. Once you receive the Bankruptcy Discharge Order from the Court, send a copy of this Order, along with a copy of your bankruptcy petition and the list of creditors to each of the three credit reporting bureaus. The credit reporting bureaus have 30 days to make any corrections once they have received the information from you.
2. About 60 days after you have mailed your bankruptcy papers to the credit reporting bureaus, obtain a free copy of each of your corrected credit reports by visiting www.annualcreditreport.com. Federal law allows you to obtain a free copy of your credit report from each of the three credit reporting bureaus on an annual basis. 
3.  Pay your bills on time. If possible, pay them early so there is no risk of paying a bill late.
4. Open up a checking and saving account. See if you qualify for an account at a credit union as the terms from a credit union are usually friendlier to consumers. 
5. Never take a payday loan or an auto title loan. The fees and interest are too high. It is very easy to get sucked in and again get into financial trouble. Once you have a payday or auto title loan, it is very difficult to repay it.
6. Avoid loans from finance companies. Credit from a finance company is not good for your credit score. Not only is it very expensive, having finance companies appear on your credit report lowers your FICO credit scores (which makes everything else more expensive)
7. Obtain a secured credit card. A secured credit card is where you deposit cash in an account and make purchases on the credit card up to the amount of the deposit. Each timely monthly repayment on the credit card will be reflected as a positive mark on your credit report.
8. Be wary of "credit repair" scams. There is no way that any company can "wipe out" the negative information on your credit report – this includes the bankruptcy itself. These companies charge a lot and the negative information is still on your record.
9. Create and actively use a good financial budget. It is one of the most important steps towards living within your means and bouncing back after bankruptcy. Boleman Law has created a Financial Management Guide that can assist you with creating a budget you can live with. To get your free copy e-mail ajscott@bolemanlaw.com and a copy will be e-mailed to you.

Article Source: http://www.articlesbase.com/bankruptcy-articles/recovering-from-bankruptcy-2475286.html

About the Author

Boleman Law has 16 lawyers and offices in Richmond, Virginia Beach and Hampton. Our lawyers and highly trained professional staff are experts in bankruptcy.  We only practice consumer bankruptcy law. Our lawyers are asked to present at local, regional and national legal meetings to share their bankruptcy knowledge and expertise with other attorneys. With a steadfast commitment to professional excellence and never straying from the simple founding idea of "all people deserve to be treated with respect" Boleman Law continues to grow.

The Increase In Bankruptcies And The Need For Bankruptcy Lawyers In Texas

Author: E. Ronchetti

Bankruptcies inevitably increase in a bad economy. What is bankruptcy? Bankruptcy is a federal court process to protect an individual or business, allowing the elimination and/or repayment of debts. Most bankruptcies are filed under Chapter 7 or Chapter 13 of the Federal Bankruptcy Code. Chapter 7 aids in the liquidation of debt, while Chapter 13 reorganizes debt and repays all or some, while an individual keeps their homes. Many consumers do not have the savings to see them through tough times, and they need legal advice to guide them through the bankruptcy course of action.

In years past, it was typically average income individuals filing for bankruptcy, but with the continued uncertainty of the economy, higher income families are filing. In fact, because of foreclosures and job losses, personal bankruptcy rose by over 10% across Texas, and about 30% nationally in 2009. Collectors are becoming more aggressive in the bleak economy, so debtors need to be protected by bankruptcy status in order to avoid foreclosures on their homes.

Bankruptcy lawyers in Texas, and in all states, have seen an increase in filings. It was thought that the peak of the recession hit last year, but the signs of an economic recovery are still weak. Consumer confidence has not rebounded, and there is a high unemployment rate. Individuals have high debt and low savings, so with job losses and cutbacks in hours, they can run into trouble very quickly. Falling real estate prices and the high inventory of homes also is a factor. More and more individuals are seeking bankruptcy lawyers in Texas for assistance with the process.

Is it necessary to seek the guidance of a bankruptcy lawyer in Texas? Professional and competent advice is needed to file for bankruptcy, and the stress of filing will be alleviated with their help. It is a complicated, technical process. Laws also change frequently, so a bankruptcy lawyer in Texas is up to date with current laws and modifications. They assist in documentation and paperwork, assuring accurate and timely filing. In addition to the paperwork, they help individuals manage creditors, and give guidance on how to reestablish credit. Fairness of fees is assured by bankruptcy court, so the individual filing knows that they are paying an appropriate fee. As the number of bankruptcies continue to increase with the financial trend, the need for the counsel of bankruptcy lawyers increases.

Article Source: http://www.articlesbase.com/law-articles/the-increase-in-bankruptcies-and-the-need-for-bankruptcy-lawyers-in-texas-1964466.html

About the Author

Erica Ronchetti is a freelance writer for Elbert Law Offices, a source for professional, experienced Fort Worth Bankruptcy attorneys. Let us help you through our Chapter 7 attorney or Chapter 13 bankruptcy attorneys in the Fort Worth area to get a fresh financial start.

Don’t Lose Your Home! Contact a Bankruptcy Attorney Today!

Author: Tom Moss

The decision to file bankruptcy is a serious decision but it is a decision that can give you a fresh start if there is no other way out. Bankruptcy is a legal way to discharge unsecured debt that can provide an overwhelmed debtor with a new beginning. It may be possible to keep your present home and your car after filing bankruptcy. A law firm such as the Malaise Law Firm, with attorneys skilled in San Antonio bankruptcy law can help you decide if bankruptcy is the correct decision for your particular situation. If the decision is made to file bankruptcy, they will explain to you the pros and cons of the two types of bankruptcy available to individuals, Chapter 7 and Chapter 13.

Chapter 7 is what most people usually think of as bankruptcy. In Chapter 7 bankruptcy, a debtor’s non-exempt assets are liquidated or sold with the proceeds used to pay toward unsecured debts such as credit cards, loans, and medical bills. In the majority of bankruptcy cases people do not lose any property and the unsecured creditors get nothing. Several months after filing bankruptcy the unsecured debts are discharged and the creditors can never collect on the debt. A secured creditor may still enforce a lien to recover property secured by the lien.

Chapter 13 is a debt reorganization or consolidation bankruptcy. If a debtor has regular monthly income, their debts including mortgage arrears, car payments, credit card bills, medical bills, loans, student loans, etc. are combined into one low monthly payment. Since the debtor is paying back their creditors through a repayment plan, the debtor does not risk losing their assets as they may under Chapter 7 bankruptcy laws. During the repayment plan creditors are prevented from contacting the debtor without first going through the debtor’s bankruptcy attorney and the court.

Millions of people declared bankruptcy in 2007 to get the fresh start they needed. Contrary to popular belief, your credit is not permanently damaged and it is still possible to get credit after filing bankruptcy. At the Malaise Law Firm, our San Antonio bankruptcy attorneys have over 40 years experience helping people file bankruptcy, with two board certified attorneys. We put our emphasis on helping our clients do what is in their best interest and our clients needs always come first.

The Malaise Law Firm serves the residents of San Antonio, Houston, Dallas, Fort Worth, Corpus Christi, Harlingen, Brownsville, and McAllen, Texas with all of their legal needs including bankruptcy. If you would like to see what we can do to help you please contact The Malaise Law firm today at www.malaiselawfirm.com/contactus or call 1-800-BANKRUPT for immediate assistance.

Article Source: http://www.articlesbase.com/personal-injury-articles/dont-lose-your-home-contact-a-bankruptcy-attorney-today-409605.html

About the Author

Tom Moss writes about Bankruptcy San Antonio laws.

How to File Bankruptcy the Right Way

Author: Jon Arnold

Like almost anything else, there is a right way and a wrong way to file bankruptcy, just as there is a good reason and a bad reason to file bankruptcy. Your success with your filing will depend heavily on what caused you to get into the position of thinking you need to file for bankruptcy, as well as the status of your personal assets.

The most common reasons for filing for bankruptcy are unemployment, huge unexpected medical expenses, marital problems, or largely overextended credit card bills. But filing for bankruptcy may not be the easy way out that many people think it is, and as it actually may have been a few short years ago when the bankruptcy laws were easier and more sympathetic to a person’s circumstances. But the laws today are tougher, and it is very difficult to successfully file bankruptcy without a good case and good reasons to back it up. Also, many people do not consider bankruptcy alternatives, where you need to realize that bankruptcy should be your LAST consideration, not your first one.

First you need to consider your current situation. If you are unemployed, living on welfare or some sort of public assistance program, you have little or no money in any bank accounts, you do not own a car or truck, and/or you rent your home or are living with others, there is very little that bankruptcy can do to resolve or improve your financial situation.

If however you feel that filing bankruptcy is your only option, and I hope you have thoroughly explored all of your options and alternatives before reaching that conclusion, you should definitely discuss this with a good bankruptcy lawyer or bankruptcy attorney. In many cases, your first consultation will be at minimal or even no charge, and the lawyer can advise you as to what course to pursue, or if bankruptcy declaration is going to help, or perhaps make matters very much worse overall. There is a form at my web site which is free and can put you in touch with a local bankruptcy attorney who can look at your unique situation and would be aware and well versed in how bankruptcies are handled in your state and your particular part of the country.

A bankruptcy lawyer can help you determine factors like if it can be proven or demonstrated that you have abused your credit privileges, then you may even be disqualified from filing for bankruptcy. This is known as a “means test”. Of course, there are always unique factors which got you to this situation, such as divorce, medical bills, unexpected and unavoidable large expenses, etc, all of which can play a factor as to whether you can file bankruptcy, and if you can, if it will help you at all.

For most people, the biggest disadvantage to filing personal bankruptcy is the fact that the bankruptcy will appear on your credit report for six years or more after you are discharged from bankruptcy. This is a huge red flag on your credit report, and obtaining new credit after filing for bankruptcy is going to be difficult if not impossible from most traditional lenders and credit card issuers.

With bankruptcy, like anything else, going about it the right way and knowing what you are getting into is the best way to approach it so that you do not end up doing more damage than the situation you are already in.

Article Source: http://www.articlesbase.com/finance-articles/how-to-file-bankruptcy-the-right-way-108133.html

About the Author

Jon is a computer engineer who maintains web sites on a variety of topics based on his knowledge and experience. You can read more about Bankruptcy Advice and fill out a free Bankruptcy Evaluation at his web site at Bankruptcy Advice.

What Is A Bankruptcy Lawyer?

Author: Sammi Jonesman

In today's economy, more people than ever are filing for bankruptcy.  What does this entail, and who should file for bankruptcy?  Do you need a bankruptcy lawyer, and what are their responsibilities?  This article will help you get started.

Bankruptcy is a legal declaration that is made when an individual or an organization cannot pay its debts to a creditor.  Bankruptcy law is the branch of civil law that deals with this Federal process.  A bankruptcy lawyer advises his or her clients on how to proceed with this process.

During bankruptcy proceedings, a federal court will administer the property or other assets of the individual or the firm who owes money to the person (called the debtor) or the organization that is owed the money (called the creditor).  A bankruptcy filing may be voluntary, such as is the case when a business is trying to resolve a financial situation, or involuntary, which is more rare.

A consumer bankruptcy lawyer deals with personal bankruptcy proceedings.  They are familiar with all types of bankruptcy laws involving both individuals and organizations. In contrast, a commercial bankruptcy lawyer deals primarily with Chapter 7 and Chapter 11 bankruptcy proceedings.  Chapter 7 bankruptcy is the most common form of bankruptcy and involves the liquidation of the debtor's assets.  Chapter 11 bankruptcy refers to a reorganization of a business.  Most commercial bankruptcy lawyers work with organizations and businesses rather than with individual clients.

Because bankruptcy laws can be very difficult to interpret, it is best to seek out a knowledgeable bankruptcy lawyer if you are planning on filing for bankruptcy or even if you are just considering whether or not to file for bankruptcy.  The process can be tedious and complex.  Moreover, there are both short- and long-term legal ramifications to filing for bankruptcy, particularly involving personal credit, that individuals must understand before deciding whether to undergo the process.  For these reasons, seek a local bankruptcy lawyer in your area to help you make the right decision.

Article Source: http://www.articlesbase.com/bankruptcy-articles/what-is-a-bankruptcy-lawyer-2145695.html

About the Author

Along with writing articles, Sammi enjoys gardening. Garden Harvest Supply is one of her favorite gardening websites where you can order garden plants online, including tomatoe plants.

Author: Judy Dixon

Proof of Claims:

Filing bankruptcy does not mean that the court is going to listen to the debtor only. The court gives a chance to the lenders as well to submit their claims. These claims are called “proof of claims”

Approving Proof of Claims:

If in the midst of the process of filing bankruptcy, the creditor submits the proof of claims, the court asks the debtor whether he/she objects to the proof of claims. Now, if the bankruptcy applicant does not respond to this query of the court, according to the personal bankruptcy rules, it is taken for granted that the bankruptcy applicant does not have any objection to the proof of claims. This means that the applicant approves the proof of claims and applicant has to pay if possible what is owed to the creditor or lender during the process of bankruptcy. The priority of the bankruptcy will be affected by this. This is also going to have a big effect on the secured and non-dischargeable debt.

Consequences of Approving Proof of Claims:

Suppose during the process of bankruptcy, a claim for child support is made. This claim could enormously inflate the amount that you owe. Now if you do not challenge it during bankruptcy, you will not get a second chance to take objection to it. Since you have not taken any objection it will be considered allowed by you and you have to pay this if possible during bankruptcy. This situation could be repeated in case of taxes, student loans or other secured debt. Because of this, one could be servicing the claim even after filing bankruptcy.

Challenging the Proof of Claims:

To avoid this sort of troubles one should thoroughly check the claims of the creditors during bankruptcy. If you find any inaccuracy, you should immediately take objection to it forth the bankruptcy court. You should take help of bankruptcy attorneys or bankruptcy lawyer to represent your case.

Article Source: http://www.articlesbase.com/personal-finance-articles/creditor-claims-during-bankruptcy-to-be-taken-seriously-1449218.html

About the Author

BankruptcyOnly is a nationwide network of bankruptcy attorneys and Internet professionals who are ready to assist you immediately.

Knowing When You Need A Bankruptcy Attorney

Author: Jon Arnold

A bankruptcy attorney may be necessary if you have a great deal of debt, assets and other complicated issues in your life. For example, because there is a great deal of documentation required that could be confusing for anyone, a bankruptcy attorney can help you in this area. They will have extensive knowledge in all the laws, rules, regulations, options and rights that pertain to your specific case.

Bankruptcy is not a simple procedure. It is extremely complicated and having an attorney on your side can help to make everything run smoothly and efficiently.

What Steps Will a Bankruptcy Attorney Take?

First: The bankruptcy attorney will talk to you about your situation, finances, assets and debts. This is to determine whether bankruptcy truly is the right option for you. This is also done to establish what the bankruptcy attorney needs to do in order to help your bankruptcy case.

Second: He or she will determine which of your debts might or might not be discharged. If you have any property that cannot be protected by going through some pre-bankruptcy planning such as protection of certain assets, listing items you may have tried to "hide" or filing a homestead exemption.

Third: They will prepare and file the bankruptcy petition along with any needed documentation along with it.

Fourth: They will attend the meeting of creditors with you to ensure that the creditors are practicing legal and fair negotiations.

Fifth: They will take care of any necessary matters that are needed to protect you fully and legally prior to the final discharge. This may include any liens that are on your home, any claims of fraud by a creditor or amending any schedules due to omissions or errors.

How Much Will a Bankruptcy Attorney Charge?

The fee for your bankruptcy attorney will vary depending upon how complicated your particular case is and what it involves. Across the United States, the fee for filing bankruptcy with the courts is generally around 0 for a chapter 7 filing and 0 for a chapter 13. One thing you should know is that a judge in bankruptcy court must approve any attorney fee. The typical costs of attorney fees start at around 0 and up.

How Can I Find a Good Bankruptcy Attorney?

It is important that you find a bankruptcy attorney that is both experienced and reputable. There are some things you should look for to determine if the attorney has both qualities listed above. First consider how to find the bankruptcy attorney. You could look them up in the yellow pages, ask other attorneys or friends and family members for recommendations.

Another important suggestion is to talk to many different attorneys. Do not simply pick the first one you interview. Make appointments with several and ask questions such as:

• How long they have been practicing
• If bankruptcy is their specialty
• Testimonies or References from other clients (if this is a possibility)
• If they will be the one you deal with or if they have paralegals or other aides you will have deal with
• How much they charge
• When they will bill you

The most important thing is to find a bankruptcy attorney that clicks well with your own personality. You will also want an attorney that is hands on and deals with you directly. Furthermore, get everything in writing, when you do finally decide on a bankruptcy attorney.

Article Source: http://www.articlesbase.com/finance-articles/knowing-when-you-need-a-bankruptcy-attorney-47340.html

About the Author
Jon Arnold is an author and computer engineer who maintains various web sites to provide tips and information on a variety of topics. More info on this topic can be found at his Bankruptcy site at http://bankruptcy-data.com

Bankruptcy Chapter 7 VS Bankruptcy Chapter 13

Author: JD Kamat

There are many different types of Bankruptcy under Bankruptcy Law that are designed and structured to assist an individual or corporation that is financially burdened by debts in different ways. The most common types of bankruptcy are a Bankruptcy Chapter 7 and a Bankruptcy Chapter 13.

A Bankruptcy Chapter 7 can be filed by either an individual or a corporation. The essential gist of filing bankruptcy under this chapter is a means to discharge or eliminate debt. Most debt can be eliminated by filing for bankruptcy in a bankruptcy chapter 7, however child support, certain taxes, secured loans and student loans may not be discharged.

The benefit to file for bankruptcy under this chapter is the debtor receives a “fresh start”. The disadvantage of a Bankruptcy Chapter 7 is some of the debtors assets may be taken by the court and liquidated to pay off the debtors creditors. Depending upon the state where you are filing bankruptcy, under this chapter there are dollar amounts and certain specifically defined property you can retain. It is essential to consult a bankruptcy lawyer that practices in the state in which you are intending to file for bankruptcy to inquire about the allowable exemptions in that state.

A Bankruptcy Chapter 13 is sometimes referred to as a reorganization plan. Filing for bankruptcy by way of a Bankruptcy Chapter 13 entitles the debtor, who has income, to pay off some or all of their debt over time. Usually a bankruptcy payment plan for a period of three to five years is agreed upon. Generally payments are made to a trustee that in turn distributes the funds as per the reorganization plan agreed upon through the bankruptcy.  The benefits of a Bankruptcy Chapter 13 is the debtor is usually able to keep their assets. The disadvantage is the debtor does not get a “fresh start” as in filing bankruptcy under chapter 7.

It should be noted that these are just the basic principles to file bankruptcy under these two chapters. To truly understand how to file bankruptcy under the appropriate chapter, the services of a professional bankruptcy attorney are invaluable. Only bankruptcy attorneys can guide you through the perils of filing for bankruptcy under the current US bankruptcy law.

Article Source: http://www.articlesbase.com/law-articles/bankruptcy-chapter-7-vs-bankruptcy-chapter-13-1367251.html

About the Author

Jay King is a owner of BankruptcyIntro.com. We've all heard of large companies filing for bankruptcy or "going bankrupt" and most of us would think that particular company must be in trouble.