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August 24, 2010 By admin Leave a Comment

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Bankruptcy Confirmation: Chapter 13 Bankruptcy Information

Author: Simon Volkov

Bankruptcy confirmation is required under the United States Bankruptcy Code for all debtors filing Chapter 13 protection. Commonly referred to as "reorganization bankruptcy", debtors must submit proposed repayment plans at the time of filing or within 15 days of petitioning the court.

The purpose of bankruptcy confirmation hearings is to ensure debt repayment plans adhere to new bankruptcy laws. Chapter 13 payment plans must include payment amounts to each creditor along with payment dates.

Once bankruptcy refinance plans are approved, debtors submit payments to the court Trustee. Chapter 13 payments are generally paid on a bi-monthly or monthly schedule. Trustees distribute payments to creditors until debts are repaid.

Shortly after bankruptcy petitions are filed, notification to creditors is sent out to inform them of the bankruptcy filing and scheduled date of the 341 creditors meeting. 341 meetings give debtors the opportunity to meet face-to-face with creditors and explain their financial situation and ability to repay debts. Creditors can agree to accept a reduced payoff, lower interest rates, or remove late fees and penalties.

Information obtained at creditor meetings is given under oath. Debtors who provide false information are subject to criminal charges and their petition of bankruptcy will be denied.

In 2005, Congress enacted new bankruptcy laws which have made filing bankruptcy protection more difficult. The Bankruptcy Abuse Prevention and Consumer Protection Act require debtors to repay a portion of their debt and undergo credit counseling.

Few people can abide by BAPCPA regulations without legal counsel. Unfortunately, locating bankruptcy attorneys has become more challenging and expensive because the new laws hold lawyers accountable for information provided by their clients.

Several bankruptcy lawyers changed to other legal fields; leaving a deficiency of lawyers willing to assist with petition filings. Those who have remained in this field of law charge higher fees to cover increased business insurance premiums and potential litigation fees.

Debtors filing for Chapter 13 bankruptcy are required to undergo the means test to determine the amount of debt to be repaid. The means test compares debtors' income to that of their states' median income level.

When income is equal to or greater than median levels, debtors must file Chapter 13 and develop a confirmed debt reorganization plan. If income falls below median income, debtors might qualify for Chapter 7 which discharges all outstanding debts.

Bankruptcy repayment plans typically extend between three and five years. Debtors are prohibited from incurring new debt during the repayment period without court authorization. Chapter 13 payments are in addition to normal household expenses. One unexpected expense could cause debtors to fail out of bankruptcy.

If debtors are unable to adhere to bankruptcy repayment plans, creditors can petition the court seeking dismissal. If approved, debtors lose protection from the court and creditors are allowed to proceed with collection actions.

Bankruptcy confirmation can help debtors overcome financial hardships. However, individuals should become informed about the advantages and disadvantages of this action. Research bankruptcy alternatives including: debt consolidation, debt settlement, credit counseling or budgeting, to determine if similar results can be achieved.

Article Source: http://www.articlesbase.com/bankruptcy-articles/bankruptcy-confirmation-chapter-13-bankruptcy-information-1901742.html

About the Author

Simon Volkov is an author and real estate investor who specializes in buying houses to help homeowners avoid foreclosure and bankruptcy. He has published numerous articles about personal bankruptcy, bankruptcy confirmation, tips for hiring bankruptcy lawyers, failing out of bankruptcy and bankruptcy alternatives via his website at www.SimonVolkov.com

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Personal Bankruptcy Statistics U S

July 23, 2010 By admin 8 Comments
Mortgage Lending Wheres the ...

Chapter 13 Payments and Personal Bankruptcy

Author: Simon Volkov

Chapter 13 payments are used when debt is restructured through bankruptcy. Debtors must abide by the repayment plan for two to five years. During the restructured debt period, debtors are prohibited from incurring new debt unless approved through the court.

Chapter 13 payments are usually paid to a bankruptcy Trustee and dispersed to creditors on a monthly basis. Occasionally, chapter 13 payment plans are setup through payroll deduction. Automatic payroll payments are usually reserved for debtors who have been employed with the same company for three or more years. Should the debtor quit or be terminated by the employer, bankruptcy payments will be revised through the court.

Many people turn to chapter 13 bankruptcy to avoid foreclosure. While filing personal bankruptcy can temporarily stop lenders from commencing with foreclosure action, if debtors do not adhere to their chapter 13 payments repayment plan, they will eventually lose their house.

One thing homeowners often fail to understand is they must be financially able to pay regular monthly home loan payments in addition to chapter 13 payments. Individuals struggling to make ends meet find that bankruptcy repayment plans create a heavier debt load which can cause them to fail out of bankruptcy.

When debtors fail out of bankruptcy, creditors are legally entitled to petition the court seeking bankruptcy dismissal. Depending on the circumstances, bankruptcy judges can elect to allow borrowers to file for Chapter 7 or dismiss the case.

Chapter 7 is referred to as 'liquidation bankruptcy' because debtors must liquidate assets to repay creditor debts. Debtors are not allowed to remain in their home and must sell the property or give the house back to the bank using deed in lieu of foreclosure.

Bankruptcy is a debt reduction option available to all U.S. citizens. However, certain eligibility requirements must be met. Chapter 13 eligibility requirements state debtors cannot owe more than 7,675 in unsecured debts or 2,975 in unsecured debts.

Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act in 2005. BAPCPA requires debtors to obtain credit counseling through a U.S. Trustee Program approved agency within 180 days of submitting bankruptcy petitions.

To determine the amount of debt to be repaid through chapter 13 payments, debtors must undergo the 'means' test; a financial tool that measures debtor's income against their states' median income. If debtor's earn as much or greater than median income, they are required to file chapter 13 bankruptcy. When debtors earn less, they might be allowed to file chapter 7.

Once bankruptcy petitions are filed, debtors are required to provide a credit counseling certificate, chapter 13 repayment plan, proof of income, detailed financial statement, and recent years' tax returns.

Chapter 13 provides debtors with the opportunity to restructure debt and regain control over finances. However, personal bankruptcy stays on credit reports for ten years; making it difficult to obtain credit of any kind.

Before making a final decision to obtain bankruptcy protection, take time to investigate bankruptcy alternatives such as budgeting, credit counseling, debt settlement or debt consolidation. Oftentimes, these debt reduction options help debtors achieve the same result without incurring substantial credit damage.

Article Source: http://www.articlesbase.com/personal-finance-articles/chapter-13-payments-and-personal-bankruptcy-1646615.html

About the Author

Simon Volkov is a real estate investor residing in southern California. He specializes in buying real estate from individuals facing foreclosure or bankruptcy. He has published hundreds of articles on topics such as personal money management, bankruptcy and chapter 13 payments via his website at www.SimonVolkov.com.


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Bankruptcy Debt Counseling Online

July 14, 2010 By admin 6 Comments
Bad Credit Settlement Plans ...

Debt Settlement Vs Bankruptcy: Which Is The Better Alternative?

Author: Simon Volkov

Debt settlement is quickly becoming a popular alternative to bankruptcy. However, both of these debt relief strategies carry long-term financial consequences. All debt options should be considered before making a final decision.

Both debt settlement and bankruptcy adversely affect FICO credit scores. Debt settlement can remain on credit history for seven years, while bankruptcy remains for ten years. Debt settlement generally requires the assistance of a professional debt settlement company, while bankruptcy requires the assistance of a bankruptcy attorney.

The primary goal of debt settlement is to reduce outstanding debts. Most debt settlement companies are well-connected within the credit industry and adept at negotiating. Some debt settlement companies can reduce outstanding debt by as much as 60-percent, or more.

Individuals enter into a contract with the debt settlement company. Generally, an upfront fee must be paid, along with monthly maintenance payments. The debtor provides the settlement company with a monthly payment to cover individual creditor payments and the maintenance fee until debts are paid in full. Once the agreed balance is paid in full, the negotiated balance is written-off.

Debt settlement strategies can be used when negotiating to pay off credit cards, unsecured loans, student loans, medical bills, accounts in collection and repossessions.

Debt settlement strategies cannot be used to negotiate mortgage debt, secured loans, tax liens or delinquent child support.

It is important to realize when working with debt settlement companies, you will not realize the full discount of debt. A percentage is paid to the debt organization negotiating on your behalf.

Let's say you owe ,000 in debts. The debt settlement fee is be based on the full amount. For ease of calculation, let's say the debt settlement company charges a 20-percent startup fee. This amounts to ,000.

In addition to the startup fee, there is a monthly maintenance fee. Again, for ease of calculation, let's say that amount is 5-percent. This brings the total amount payable to the debt settlement company to ,500.

If the debt settlement company is able to reduce debts by 60-percent, the total payable debt amount would be ,000. Add in the above amounts and the total is ,500. This yields a savings of ,500.

Another consideration of debt settlement is the fact the Internal Revenue Service might impose capital gains tax on the negotiated amount. Experts suggest consulting with a tax professional prior to entering into agreement with a debt settlement company.

Although debt settlement will adversely affect your credit rating, it is not as detrimental as bankruptcy. The impact debt settlement has on your credit depends on your current credit status. If you have relatively good credit, debt settlement will impact your credit more than if you have lousy credit.

Numerous debt settlement companies exist across the U.S. offerings services in nearly every metropolitan city. It is important to conduct research to ensure you are working with a reputable firm. Check with the Better Business Bureau and conduct research online. Also, request referrals from the debt settlement company and contact each individual.

Prior to making a final decision, take time to review other debt relief options. These might include debt consolidation, credit counseling or budgeting.

Article Source: http://www.articlesbase.com/personal-finance-articles/debt-settlement-vs-bankruptcy-which-is-the-better-alternative-1799124.html

About the Author

Simon Volkov is a private investor who specializes in helping individuals liquidate assets and offers solutions to those in need of cash. Simon's website offers a comprehensive library focused on debt settlement, how to pay off credit cards, bankruptcy, money management and investing. Learn more by visiting www.SimonVolkov.com.



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Personal Bankruptcy Information

June 20, 2010 By admin Leave a Comment

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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.

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Bankruptcy Chapter 13 Information

April 20, 2010 By admin Leave a Comment

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Bankruptcy Confirmation: Chapter 13 Bankruptcy Information

Author: Simon Volkov

Bankruptcy confirmation is required under the United States Bankruptcy Code for all debtors filing Chapter 13 protection. Commonly referred to as "reorganization bankruptcy", debtors must submit proposed repayment plans at the time of filing or within 15 days of petitioning the court.

The purpose of bankruptcy confirmation hearings is to ensure debt repayment plans adhere to new bankruptcy laws. Chapter 13 payment plans must include payment amounts to each creditor along with payment dates.

Once bankruptcy refinance plans are approved, debtors submit payments to the court Trustee. Chapter 13 payments are generally paid on a bi-monthly or monthly schedule. Trustees distribute payments to creditors until debts are repaid.

Shortly after bankruptcy petitions are filed, notification to creditors is sent out to inform them of the bankruptcy filing and scheduled date of the 341 creditors meeting. 341 meetings give debtors the opportunity to meet face-to-face with creditors and explain their financial situation and ability to repay debts. Creditors can agree to accept a reduced payoff, lower interest rates, or remove late fees and penalties.

Information obtained at creditor meetings is given under oath. Debtors who provide false information are subject to criminal charges and their petition of bankruptcy will be denied.

In 2005, Congress enacted new bankruptcy laws which have made filing bankruptcy protection more difficult. The Bankruptcy Abuse Prevention and Consumer Protection Act require debtors to repay a portion of their debt and undergo credit counseling.

Few people can abide by BAPCPA regulations without legal counsel. Unfortunately, locating bankruptcy attorneys has become more challenging and expensive because the new laws hold lawyers accountable for information provided by their clients.

Several bankruptcy lawyers changed to other legal fields; leaving a deficiency of lawyers willing to assist with petition filings. Those who have remained in this field of law charge higher fees to cover increased business insurance premiums and potential litigation fees.

Debtors filing for Chapter 13 bankruptcy are required to undergo the means test to determine the amount of debt to be repaid. The means test compares debtors' income to that of their states' median income level.

When income is equal to or greater than median levels, debtors must file Chapter 13 and develop a confirmed debt reorganization plan. If income falls below median income, debtors might qualify for Chapter 7 which discharges all outstanding debts.

Bankruptcy repayment plans typically extend between three and five years. Debtors are prohibited from incurring new debt during the repayment period without court authorization. Chapter 13 payments are in addition to normal household expenses. One unexpected expense could cause debtors to fail out of bankruptcy.

If debtors are unable to adhere to bankruptcy repayment plans, creditors can petition the court seeking dismissal. If approved, debtors lose protection from the court and creditors are allowed to proceed with collection actions.

Bankruptcy confirmation can help debtors overcome financial hardships. However, individuals should become informed about the advantages and disadvantages of this action. Research bankruptcy alternatives including: debt consolidation, debt settlement, credit counseling or budgeting, to determine if similar results can be achieved.

Article Source: http://www.articlesbase.com/bankruptcy-articles/bankruptcy-confirmation-chapter-13-bankruptcy-information-1901742.html

About the Author

Simon Volkov is an author and real estate investor who specializes in buying houses to help homeowners avoid foreclosure and bankruptcy. He has published numerous articles about personal bankruptcy, bankruptcy confirmation, tips for hiring bankruptcy lawyers, failing out of bankruptcy and bankruptcy alternatives via his website at www.SimonVolkov.com

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