The Pros and Cons of Corporate Bank Loans

Author: William Lee

The first thing that comes into a prospective business owner’s mind when sourcing for money to start up their business is to go to the bank. It’s convenient, safe and regulated, why would you go anywhere else?

But people must keep in mind that for most things in life, there are its pros and cons. Before you jump on the corporate banking business loan bandwagon, take a while to consider your options and make an informed decision.

The Advantages

Convenience and multiple loan options – Besides a standard business loan, banks can provide a selection of loan choices for you to consider. Even non-commercial loans that are able to be used for business purposes including personal and home-equity. What’s more is that there’s probably a commercial bank no more than 10 minutes from your house.

The bank has little to no control over how you spend the money – If the bank reviews your business plan and approves the loan to you, the money is essentially yours to do with as you wish. Since you are already in agreement with the bank on the interest rate for them to earn from you, they have little to no say what you do with the money. If you decide to use it all to travel the world instead of starting a business, well that’s your choice (although not a very good one).

This is a non profit sharing arrangement – Unlike business partners, venture capitalist funds or any other sources of capital, the bank is not entitled to any of your profits. Besides repayment of the loan plus interest, you do not need to split your profits between any other investors.

Interest rates may be low – The interest rates the bank can offer may be lower than other sources of financing such as credit cards and finance companies. Although not as low as borrowing from friends and family of course.

Commercial loans payments are often tax-deductible – You will need to check with your local tax department, but you may be able to get tax deductions related to the interest payments you are making on your business loan.

The Disadvantages

It may be hard to get a loan – Banks will probably require you to show them your business plan and convince them that your business has a chance of making a profit. If they don’t believe in your product/ service they could easily refuse you the loan. This is to ensure that when they loan out money, they are sure to get it back. Also, standard business loans are often limited to pre-existing businesses that have a financial history of success.

Application for a loan can be lengthy – Bank loans may require more information and a longer review process compared to other types of sources.

Collateral is usually required - A commercial institute usually requires collateral on the business loan, although this would probably not be required from other types of lenders. This may be quite risky if the collateral that you have to put up is your house or other family possessions.

You may not get all you ask for – Unlike a housing loan, which barely needs any persuasion to qualify for, you may not be able to get 80-100% funding for your business. The return on housing loans is so much better for banks that for a business loan, unless it’s quite small, you may only receive 75% of what you ask for. This varies from bank to bank.

So weigh your options before taking a corporate loan from a financial institution such as a bank, it may actually be better for you to find other sources of funding. Friends and family are always a good place to start. Just consider the pros and cons as laid out above and it will help you to come to an informed decision.

Article Source: http://www.articlesbase.com/small-business-articles/the-pros-and-cons-of-corporate-bank-loans-527519.html

About the Author

William Lee gives business advice and tips to those who wish to know how to start a business, but just never knew where to look.

From his blog you can follow the link to The Business Suit, an online forum for like minded business people to share their business experiences and advice on a range of topics.

This article is copyrighted, all rights reserved, and it may be used only if kept entirely intact with the author's name and URL. http://xanydude.blogspot.com

The New Bankruptcy Law: Information You Require To Know Before You File

Author: Dominick Barker

The new bankruptcy law is in effect, and the climate has drastically changed for people who are considering bankruptcy. In this article we will touch on some of the details of the new law, and explain exactly how these new changes will affect you.

First, let's touch on the new counseling requirements. According to the new law, you must complete credit counseling with an agency approved by the United States Trustee's office before you can file for bankruptcy under either Chapter 13 or Chapter 7. Because this counseling is to decide whether you need to file for bankruptcy, or if an informal payment plan would be a better alternative for your situation. The counseling is mandatory for everyone, even for people who know for certain that a repayment plan is not what they want.

However, you are required only to join in the counseling; you do not have to go with any repayment plans the agency recommends.

But if you are given a plan, you will have to present the plan to the court with a certificate showing that you attended the counseling before you can file for bankruptcy. Once your bankruptcy case is over, you will have to attend another counseling session focused on learning personal financial management skills to complete your bankruptcy and erase your debts.

Another major change that comes with the new law effects many people who want to file chapter 7 bankruptcy. Under the old law, most people filing could choose between Chapter 7 and Chapter 13, and most people chose Chapter 7. Because of the new law, many filers with higher incomes will be prohibited from using Chapter 7.

The first step in determining whether or not you can file for Chapter 7 is to compare your current monthly income to the median income for a family of your size in the state you live in. In the context of the new law, your current monthly income is not your income at the time you file, but your average income over the last six months before you file.

Once you have determined your income, measure it against the median income in your state. If your income is equal to or less than the median, you can file for Chapter 7. If it is more than the median, you must pass a requirement of the new law called the means test. The means test requires you to determine your amount of "disposable income" by subtracting different variables from your current monthly income.

If your current monthly income after subtracting these amounts is under 0, you pass the means test, and will be able to file for Chapter 7. If you income is more than 6.66, you will be prohibited from using Chapter 7. Those in the middle of these incomes will be able to file for chapter 7, but will be required to still pay a percentage of their debt.

Yet another important change caused by the new law is that lawyers may be harder to find, and possibly more expensive. The new law has added many complex requirements to the process of filing for bankruptcy that will make it more time consuming for lawyers to represent their clients in bankruptcy cases. The end result being that attorney fees for representation will increase. Also, the amount of time that lawyers must put into the new regulations has increased and it is likely that it may be harder to find a lawyer that solely specialized in bankruptcy in the future. Many experts are predicting that the stress of these new requirements may drive some bankruptcy lawyers out of the field completely.

Now that you know many of the changes the new bankruptcy laws hold for your situation, be aware and file with care.

Article Source: http://www.articlesbase.com/finance-articles/the-new-bankruptcy-law-information-you-require-to-know-before-you-file-1945737.html

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Getting a Tax Id Number for a Business Entity

Author: SD Lawyer

Hey, we all remember the jury that awarded three million dollars to the women who said her McDonalds coffee was to hot. If that doesn’t scare you, nothing will.

Fortunately, the law also gives you some ammunition to fight back against potential lawsuits. The ammunition comes in the form of business entities that protect you from personal liability for the debts of the business. These debts include lawsuit judgments.

The two most common business entities used for this purpose are the corporation and limited liability company. Although each is unique, they create a shield between your personal assets and the business. This occurs because the entities are treated as though they are a unique person. If they get into trouble, you are not liable. For example, buying shares in Google, a publicly traded corporation, does not mean you are on the hook if Google loses a lawsuit.

Obviously, the liability protection of a business entity is a good thing. That being said, you have to treat it as a separate individual to keep the shield in place. In this case, we are talking about getting a tax identification number for it. Of course, the IRS doesn’t call it that. Instead, it is called an Employee Identification Number or EIN. So, how do you get one?

The first thing to do is download the SS-4 form off the IRS website. Fill it out so you have all the information necessary. You can mail it in, but it takes forever to get a response. Assuming you want things to move quicker, the easier step is to call the IRS at 800-829-4933. They will ask you for information off the form and give you the EIN there and then. Alternatively, you can go to their site and do the application online. Just search for “EIN” and then fill out the form. Importantly, write down the EIN when it appears as the IRS does not send you a confirming email.

Getting an EIN for a business entity is fairly simple. Just make sure you need one. Single owner LLCs often do not. If you have any doubts, hire an accountant to do it. It will cost a couple of bucks, but is worth getting it right.

Article Source: http://www.articlesbase.com/law-articles/getting-a-tax-id-number-for-a-business-entity-242248.html

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The Atlanta, Georgia Law Offices Of Attorney Britt

Author: Britt Gary

There are a lot of lawyers that are providing their services today and almost all of them seem like a good choice.  However, I can assure you that not all the things that look good are really good, and this goes for many Atlanta, Georgia lawyers-attorneys.  When you are searching for a lawyer or attorney, make sure that you check their experience, expertise, and professional qualifications.  That is the best way to see if the lawyer is suitable to get the job done for you.  At the Atlanta, Georgia law firm of AttorneyBritt we include the complete resume, work history, and qualifications of our lawyers-attorneys on our web site.  For example, at the Atlanta, Georgia law firm of AttorneyBritt we provide the complete resume and work history for our founder, Gary L. Britt, CPA, J.D.

• Before he started his legal career, Mr. Britt worked as a certified public accountant between 1974 and 1985 for several of the largest and most prestigious public accounting and holding companies in the USA.

• Between 1985 and 1995, Mr. Britt was partner in Douglas and Britt, Houston Texas. There he became an expert in all types of business contract and litigation matters, as well as financial and estate planning for business owners and high wealth individuals.

• During the period between 1995 and 2001, Mr. Britt was vice president and general counsel in The Clawson Group, Atlanta, Georgia.  There he was responsible for all the legal aspects of this privately owned conglomerate, as well as all banking and treasury relationships and contracts.

• Between 2002 and 2004, Mr. Britt was general counsel of Stafford Development Company, Tifton, Georgia.  There he was in charge of all legal matters for this multifaceted and diverse conglomerate of companies.

• During the period between 2004 and 2008, Mr. Britt was general counsel for General Counsel Group, Atlanta, Georgia.  During that period, Mr. Britt functioned as General Counsel for two principal groups of companies in Atlanta and Savannah, Georgia.

• In 2008, Mr. Britt founded his own Atlanta, Georgia law firm, AttorneyBritt.  AttorneyBritt - Lawyer Attorney CPA - Professional solutions for litigation, estate planning, business law, asset protection, wills, trusts, probate, contracts and agreements.

Let the Atlanta, Georgia law firm of AttorneyBritt help you, and concentrate your time on the more important aspects of your business and LIFE.  The Atlanta, Georgia law firm of AttorneyBritt will help you make your business grow while protecting your assets and peace of mind.  When you choose a lawyer-attorney in Atlanta, Georgia, you owe it to yourself to contact the law firm of AttorneyBritt, Gary L. Britt, CPA, J.D.

Article Source: http://www.articlesbase.com/law-articles/the-atlanta-georgia-law-offices-of-attorney-britt-2193424.html

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AttorneyBritt – Gary L. Britt, CPA, J.D. – Attorney At Law - Professional solutions for litigation, estate planning, business law, asset protection, wills, trusts, probate, contracts and agreements.AttorneyBritt

Should You Declare Bankruptcy?

Author: Raul Levine

Personal bankruptcy generally is considered the debt management option of last resort because the results are long-lasting and far-reaching. A bankruptcy stays on your credit report for 10 years, and can make it difficult to obtain credit, buy a home, get life insurance, or sometimes get a job. Still, it is a legal procedure that offers a fresh start for people who can't satisfy their debts. People who follow the bankruptcy rules receive a discharge - a court order that says they don't have to repay certain debts.

The consequences of bankruptcy are significant and require careful consideration. Other factors to think about: Effective October 2005, Congress made sweeping changes to the bankruptcy laws. The net effect of these changes is to give consumers more incentive to seek bankruptcy relief under Chapter 13 rather than Chapter 7. Chapter 13 allows you, if you have a steady income, to keep property, such as a mortgaged house or car, that you might otherwise lose. In Chapter 13, the court approves a repayment plan that allows you to use your future income to pay off your debts during a three-to-five-year period, rather than surrender any property. After you have made all the payments under the plan, you receive a discharge of your debts.

Chapter 7, known as straight bankruptcy, involves the sale of all assets that are not exempt. Exempt property may include cars, work-related tools, and basic household furnishings. Some of your property may be sold by a court-appointed official - a trustee - or turned over to your creditors. The new bankruptcy laws have changed the time period during which you can receive a discharge through Chapter 7. You now must wait eight years after receiving a discharge in Chapter 7 before you can file again under that chapter. The Chapter 13 waiting period is much shorter and can be as little as two years between filings.

Both types of bankruptcy may get rid of unsecured debts and stop foreclosures, repossessions, garnishments and utility shut-offs, and debt collection activities. Both also provide exemptions that allow you to keep certain assets, although exemption amounts vary by state. Personal bankruptcy usually does not erase child support, alimony, fines, taxes, and some student loan obligations. Also, unless you have an acceptable plan to catch up on your debt under Chapter 13, bankruptcy usually does not allow you to keep property when your creditor has an unpaid mortgage or security lien on it.

Another major change to the bankruptcy laws involves certain hurdles that you must clear before even filing for bankruptcy, no matter what the chapter. You must get credit counseling from a government-approved organization within six months before you file for any bankruptcy relief. You can find a state-by-state list of government-approved organizations at the U.S. Trustee Program, the organization within the U.S. Department of Justice that supervises bankruptcy cases and trustees. Also, before you file a Chapter 7 bankruptcy case, you must satisfy a "means test." This test requires you to confirm that your income does not exceed a certain amount. The amount varies by state and is publicized by the U.S. Trustee Program.

Article Source: http://www.articlesbase.com/finance-articles/should-you-declare-bankruptcy-1430389.html

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Information on lynx as pets, pet lynx , lynx cats can be found at the Interesting Animals site.

Credit Counseling Clients Hurt by Latest Bankruptcy Requirements

Author: Cary Olson

The Bankruptcy Abuse and Consumer Protection Act was passed in early 2005 with the overwhelming support of the President, both houses of Congress and the major credit card companies.  The law, which created sweeping changes in American bankruptcy law, was passed in order to reduce the possibility that consumers with heavy debts might avoid choose to avoid paying them by seeking debt relief through the courts.  The Act has many provisions, but the one that may hurt consumers the most was the one provision that was intended to help - the requirement that debtors undergo mandatory credit counseling before filing for bankruptcy.

On the surface, the requirement seems to be laudable.  Few people ever receive any sort of formal money management training, so a bit of counseling, even as bankruptcy approaches, might help debtors avoid further financial trouble in the future.  The law was passed with the intention that, once educated, consumers would stay out of bankruptcy court in the years to come.

It hasn't worked out that way, and the bankruptcy law is largely to blame.  The law did not set a fee for this required credit counseling, but a fee of was suggested and consumers who cannot afford to pay the fee may ask to have it waived.  Only certain nonprofit counseling agencies would be approved for pre-bankruptcy counseling.  These requirements have resulted in a mess in the counseling industry that benefits virtually no one.  Relatively few agencies have been approved; the ones that have are very busy.  The suggested fee of , when paid at all, is not enough to cover the costs of keeping the agencies' offices open.   Consumers are ending up getting their "counseling" via the Internet, or a conference call, or in a large group meeting.  This sort of thing may satisfy the requirements of the law, but it isn't helping the people it was intended to help.

Credit counseling is certainly a worthwhile endeavor, but only if done properly.  The counselor and the client should have sufficient time to become acquainted, discuss an overview of the counseling process and to have an in-depth discussion of the client's specific financial situation.  After all, if the client cannot receive information that he or she can apply directly to his or her own finances, the entire point of providing the service becomes rather moot.

Instead, we have a situation where the clients are being poorly served and the counseling agencies are barely scraping by financially.  It seems unlikely that this is what Congress had in mind when they passed the bill.  Anyone who has a problem with debt would certainly benefit from counseling and is encouraged to seek it out.  Those who do would be advised to select a counseling agency that has the time and resources to provide the in-depth sort of help from which a client can actually benefit.  Otherwise, the result is a waste of time for all involved.

Article Source: http://www.articlesbase.com/finance-articles/credit-counseling-clients-hurt-by-latest-bankruptcy-requirements-2463838.html

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Corporate Secretarial Services in the Kingdom of Thailand

Author: Wolfgang Jaegel

In today's dynamic business world, the success of corporate governance largely depends on fulfilling a multitude of secretarial works, legal necessities, and constitutional compliances. No matter it is a small business set up or a large business corporation, corporate secretarial services are essential for the success and existence of a business.

Corporate secretarial services are simply services undertaken in order to comply with the regulatory requirements put forward by a company's registered jurisdictions. These services are usually carried out by reputable law firms.

In the Kingdom of Thailand, corporate secretarial services are primarily offered in connection with the formation and registration of new company, Thai limited partnership, and procedures for filing in order to qualify for protection under the Treaty of Amity and Economic Relations between the United States and the Kingdom of Thailand.

However, in most cases, these services are categorized into: basic services, services in connection with attending of meetings on behalf of clients, and complex projects. Basic secretarial services consist of maintenance of statutory books, filing of returns, and provision of company secretary. Among the complex corporate secretarial projects are procedures in connections with the purchase of shares, restructuring of company, modeling of financial statements, implementation of management systems and control, and registering and reregistering of companies.

Depending upon the unique requirements of corporate clients, services offered in connection with corporate secretarial vary from firms to firms. As mentioned earlier, corporate services consists of establishment of business structure in Thailand, providing advice on foreign investment rules, providing advice on exchange control, maintenance of statutory records and company filings, processing and monitoring trade documentation, and providing advice on international trade as well as trade finance. In some instances, corporate secretarial services in the Kingdom of Thailand include:

- Providing facilities in order to keep and maintain company books and company seals
- Arrangement for the provision of nominee directors
- Proper maintenance and revision of company statutory registers and minute books
- Organizing as well as attending of meetings of directors
- Preparation of resolutions for the purpose of meetings of directors and shareholders
- Preparation of minutes for annual general meetings and extraordinary general meetings

Some legal firms provide such services as:

- Local advertising
- Establishing as well as maintaining directors', shareholders', and officers' registers
- Arrangement for banking relationships and maintenance of bank accounts
- Filing statutory records with the government authorities of the Kingdom of Thailand
- Liaising with auditors, brokers, legal advisors, accountants, custodians, and shareholders
- Filing of annual returns
- Ensuring efficiency of corporate firms through maintenance of separate fax, telephone, and other electronic services for the company

Different types of corporate secretarial services also cover providing guidance as well as practical support to directors, communicating with shareholders in order to ensure that due regard is paid to their interest, providing assistance and advice for establishing corporate actions such as bonus issues and script issues, and ensuring that all of the company's activities including holding of shareholders' meetings, issuance of notice, maintenance of statutory records, dividend payments and corporate governance, are carried out in accordance with the requirements of Companies Act and Regulatory authorities. Above all, corporate secretarial services also consist of preparation of share certificates and registers and company searches.

Corporate secretarial services rendered by reputable law firms provide a host of benefits to corporate clients. One of the key benefits is that it allows you to focus on your core business activities. Another advantage is that these services undertaken by good service providers ensure that all the activities with regard to company is carried out and maintained in good standing.

Thailand has a plethora of law firms to render the best in corporate secretarial services. But, it is important that you should make a thorough investigation with regard to the professionalism as well as the way they render the corporate secretarial services, prior to approaching a law firm in Thailand. It must also be checked whether the attorneys are licensed by the Law Society of Thailand.

Many of the reputable law firms assist and guide their clients through the business and legal environment. Some of them even address prospective issues that a new investor may encounter. There are also some reputable law firms in Thailand that render a range of management functions to its corporate clients, such as, accounting, banking, and invoicing services, apart from corporate secretarial services.

Article Source: http://www.articlesbase.com/law-articles/corporate-secretarial-services-in-the-kingdom-of-thailand-252578.html

About the Author

For nearly 30 years, Bamrung Suvicha Apisakdi Law Associates (BSA Law) has focused on providing reliable legal advice and services to the Thai and foreign business community in Thailand. We provide international standards of legal services while retaining the customs of the Thai business culture.

Things to Consider Before You Declare Bankruptcy

Author: Haywood Dickerson

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 launched a new era: With limited exceptions, people who plan to file for bankruptcy protection must get credit counseling from a government-approved organization within 180 days before they file. They also must complete a debtor education course to have their debts discharged.

The Department of Justice's U.S. Trustee Program approves organizations to provide the mandatory credit counseling and debtor education. Only the counselors and educators that appear on the U.S. Trustee Program's lists can advertise that they are, indeed, approved to provide the required counseling and debtor education. By law, the U.S. Trustee Program does not operate in Alabama and North Carolina; in these states, court officials called Bankruptcy Administrators approve pre-bankruptcy credit counseling organizations and pre-discharge debtor education course providers.

Counseling and Education Requirements

As a rule, pre-bankruptcy credit counseling and pre-discharge debtor education may not be provided at the same time. Credit counseling must take place before you file for bankruptcy; debtor education must take place after you file.

In general, you must file a certificate of credit counseling completion when you file for bankruptcy and evidence of completion of debtor education after you file for bankruptcy - but before your debts are discharged. Only credit counseling organizations and debtor education course providers that have been approved by the U.S. Trustee Program may issue these certificates. To protect against fraud, the certificates are produced through a central automated system and are numbered.

Pre-bankruptcy Counseling

A pre-bankruptcy counseling session with an approved credit counseling organization should include an evaluation of your personal financial situation, a discussion of alternatives to bankruptcy, and a personal budget plan. A typical counseling session should last about 60 to 90 minutes, and can take place in person, on the phone, or online.

The counseling organization is required to provide the counseling free of charge for those consumers who cannot afford to pay. If you cannot afford to pay a fee for credit counseling, you should request a fee waiver from the counseling organization before the session begins. Otherwise, you may be charged a fee for the counseling, which will generally be about , depending on where you live, the types of services you receive, and other factors. The counseling organization is required to discuss any fees with you before starting the counseling session.

Once you have completed the required counseling, you must get a certificate as proof. Check the U.S. Trustee's website to be sure that you receive the certificate from a counseling organization that is approved in the judicial district where you are filing bankruptcy. Credit counseling organizations may not charge an extra fee for the certificate.

Article Source: http://www.articlesbase.com/finance-articles/things-to-consider-before-you-declare-bankruptcy-2207095.html

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The Difference Between Chapter 7 and Chapter 13

Author: Dillon Norris

The main purpose of bankruptcy laws is to give people hopelessly overburdened with debt a financial fresh start. Bankruptcy filings are public records. However, under normal circumstances, no one will know about the bankruptcy. Credit Bureaus will maintain a record of the bankruptcy and it will remain on the credit record for 10 years.

The most common reasons for bankruptcy filings are unemployment, large medical expenses; seriously overextended credit; marital problems, and other large unexpected expenses.

There are two ways a debtor can go bankrupt. The first and most common way is for an individual to file a voluntary petition asking the Court to allow bankruptcy. The second, and rarely used way, is for creditors to ask the Court to make an Order that a person is bankrupt. In this way, a creditor can gain payment, at least in part, for debts a debtor is refusing to pay. In both these cases a Bankruptcy Trustee is required to administer the bankruptcy.

There are two different types of legal bankruptcy proceedings.

Chapter 7, also called a straight bankruptcy, is a liquidation proceeding. The debtor gives all non-exempt property to a bankruptcy trustee who then converts it to cash for distribution to creditors. The debtor is freed from all dischargeable debts, usually within 4 months. Chapter 7 is filed in cases where the debtor has few assets to lose, so this option gives a relatively quick release from debts. A debtor can file Chapter 7 again if more than 8 years have passed since discharge of a previous Chapter 7 bankruptcy.

Chapter 13 bankruptcy is also called a reorganization bankruptcy. It is filed by individuals who wish to pay off their debts in 3 to 5 years. This type of proceeding is suited for individuals with non-exempt property they wish to keep. It is only an option for individuals who have predictable income and whose income is sufficient to pay their reasonable expenses with some amount left over to pay off their debts.

Under the new Bankruptcy Law which took effect on October 17, 2005, individuals who can afford to make some repayment of their debts must file Chapter 13. Only debtors who meet strict financial requirements are allowed to erase their debts completely through Chapter 7. Debtors must take an approved Financial Counseling Course within 6 months of filing. Then, their income is assessed according to the formula (monthly income-expenses) X 60. If the result is ,000 or less, and unsecured debts are less than 25%, Chapter 7 is allowed. If income is greater than ,000 or unsecured debts are greater than 25%, the debtor must file Chapter 13.

Once bankruptcy is filed, creditors are forbidden from harassing the debtor. By law, creditors cannot initiate or continue any lawsuits, wage garnishees, or even make telephone calls demanding payments. Secured creditors such as banks holding, for example, a lien on a car, will get the stay lifted if the debtor cannot make payments.

Spouses are legally unaffected by a debtor's bankruptcy if they are not responsible (did not sign an agreement or contract) for any of the debt. If they have a supplemental credit card they are probably responsible for that debt. However, in community property states, either spouse can contract for a debt without the other spouse's signature on anything, and the spouse will still be obligated to pay. There are some exceptions to this rule, such as the purchase or sale of real estate; those few exceptions do require the signature of both spouses on the contract for both to be liable. But mundane purchases, such as credit cards, do not require both spouses to have signed. Community property states are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

Declaring bankruptcy does not mean that an individual's subsequent access to credit is cut off. Whether a debtor is allowed to keep credit cards after filing bankruptcy is up to the credit card company. If the bankruptcy involves discharging a credit card, the card company will cancel the card unless the debtor reaffirms the debt. Even if the card has a zero balance the credit card company might still cancel the card.

A number of banks now offer "secured"credit cards, for which the debtor puts up a certain amount of money (as little as 0) in an account at the bank to guarantee payment. Initially the credit limit is equal to the security given and is increased as the debtor demonstrates ability to pay the debt.

Two years after a bankruptcy discharge, debtors are eligible for mortgage loans on par with applicants of the same financial profile who have not filed bankruptcy. Income stability and the size of the down payment are seen as more relevant than a past bankruptcy filing. Though bankruptcy stays on a credit report for 10 years, it becomes less significant as time passes. People who have filed for bankruptcy are often better credit risks than people who have not, and are struggling to pay multiple accumulated debts.
Debtors filing for bankruptcy are allowed to keep certain assets. The exemption for a homestead is limited to 5,000 if the property was acquired within the previous 1215 days (3.3 years). The cap is not applicable to any interest transferred from a debtor's previous principal residence which was acquired prior to the beginning of the 1215-day period. The value of the state homestead exemption is reduced by any addition to the value brought about on account of a sale of nonexempt property made by the debtor with the intent to evade or defraud creditors during the 10 years before the bankruptcy filing.

An absolute 5,000 homestead cap applies if either the court determines that the debtor has been convicted of a felony demonstrating that the filing of the case was an abuse of the provisions of the Bankruptcy Code, or the debtor owes money due to criminal acts. This limitation is not applied if the homestead property is "reasonably necessary for the support of the debtor and any dependent of the debtor."

Some laws relating to bankruptcy vary from state to state. Legal residency is determined by which state the debtor lived in the 730 days (2 years) before filing; or if the debtor did not live in a single state in the previous 2 years, the state of residence where the debtor spent the majority of the 180 period preceding the 2 years. If this leaves the debtor ineligible for any exemptions then the debtor is allowed use federal exemption laws.

In some cases of Chapter 7 bankruptcy, tax debts are also wiped out, but only if stringent conditions are met: the IRS does not have a tax lien against the debtor's property; no fraudulent tax returns have been filed; tax liability is due for a tax return filed at least 2 years before the bankruptcy filing; the tax return was due at least 3 years ago, and the taxes were assessed at least 8 months before filing for bankruptcy.

Student loans from government and private organizations are usually not wiped out, unless repayment would cause undue hardship to the debtor.

All non-exempt property, such as real estate, cars and motorcycles will then be liquidated by the trustee.

There is no legal requirement to use a lawyer to file for bankruptcy, and debtors can do so themselves for about 0; however, it is strongly advised the use the services of a specialized bankruptcy lawyer as bankruptcy law is complex. A bankruptcy lawyer is well worth the cost, which is usually only ,600 to ,000. Debtors will recoup the legal fees many times over through peace of mind and avoidance of stress in addition to actual money saved by following the bankruptcy attorney's advice.

Article Source: http://www.articlesbase.com/finance-articles/the-difference-between-chapter-7-and-chapter-13-1425259.html

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What to Ask Your Attorney Before Filing for Bankruptcy

Author: Hunter Gallagher

If you think that being bankrupt is the worst thing that could happen to you than think again! Yes you are right...Worst is yet to come, but of course you can control and eliminate that worst scenario by simply making correct decisions! Hiring a wrong attorney for filing your bankruptcy can be like a nightmare coming true!

So it is better that before hiring you do some research and make sure that you find an attorney who could really show you way attorney who could really show you way out from the bankruptcy mess!

Facts about selecting the Attorneys:

As most of the attorneys are usually overworked, they aren't able to give ear to full details of your case. You may feel that your attorney isn't pursuing your case the way you want him to pursue and ultimately you will feel irritated.

Many of the attorneys aren't qualified enough to lead your bankruptcy case. So such attorneys don't fulfill your expectations. Certificates are important indicators to judge whether the attorney is qualified enough or not.

Asking from friends won't take you to any good lawyer, unless your friend has gone through filing for bankruptcy but it may be useful to take advice from legal professionals.

You can even go to a bankruptcy court and observe the attorneys there. Maybe during your observation, you will find some attorneys who are good enough for you.
Once you find the attorney, you can satisfy yourself completely by asking him the right questions. A short conversation can tell you a lot about the attorney you have chosen. You can ask him about his expertise and his working and consultation hours. After conversation, you can evaluate the attorney to see if that attorney is really right for you or not!

Once you select the attorney, you must discuss with him what type of bankruptcy should you file? There are eight different types for filing bankruptcy. You attorney can best point out which type suits you for filing bankruptcy.

Secondly, you need to ask him how you can file for bankruptcy. You have to file for your bankruptcy in the state where you are living. The Attorney can prepare the necessary paperwork that would be needed to present to the courts.

Thirdly, you must know the fees that are involved in the filing for bankruptcy. The total fees will comprise of the attorney's fees plus the court fees that you need to submit to file for your bankruptcy.

Fourth, you must know where you should file your bankruptcy claim. You need to consult your attorney on how to get there and what documentation is required.
Finally you must know the after effects of filing for bankruptcy. As soon as you file for bankruptcy, creditors will receive notification from the courts and will not be allowed to contact debtor for payments. A hearing in court will be set. The case will proceed depending on type of bankruptcy filed.

Remember that this is your fight, so you have to be really involved in it and follow the case. You just cannot leave everything on the attorney!

Article Source: http://www.articlesbase.com/finance-articles/what-to-ask-your-attorney-before-filing-for-bankruptcy-2596299.html

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