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Bankruptcy Fees

September 19, 2010 By admin Leave a Comment

Mary Mukami Gachonde

Bankruptcy Filing Fees

Author: Peter Gitundu

Filing for bankruptcy comes with some additional expenses. This is because, if you have to hire an attorney, you have to put into consideration the amount of money you will require. The attorney fees aside, you will also have to pay related expenses to the court clerk. These include the filing charges and other handling charges that in most cases are not less than $300.

The charges however will depend on which chapter you choose to file your petition under. In chapter 7, the petition is not accepted until you have accompanied it with a bankruptcy filing fee of $299. In chapter 13 on the other hand, the petition costs you $274 to file. These fees are subject to change every now and then, putting in mind that there are now new insolvency laws.

As for the attorneys fee, be prepared to part with anything between $1000 and $2000. One good thing about the lawyers fee is that you can negotiate with him to have it settled in installments not exceeding 3 years if you are filing under chapter 13.  To add to the good news, you can file for an application to have the filing fees waived or subsidized. At the end of the day, you may find yourself paying nothing for the petition other than the lawyers fee only.

If a debtor has filed for voluntary bankruptcy and wishes to have the filing fees waived, a few considerations have to be made. They are based on the poverty index of the social class to which the individual belongs. If the income of the debtor falls below 150% of the income levels of that class, then he will be considered for the waiver.

Article Source: http://www.articlesbase.com/personal-finance-articles/bankruptcy-filing-fees-910437.html

About the Author

Peter Gitundu Creates Interesting And Thought Provoking Content on Finance. For More Information On How To Deal With Bankruptcy, Read More Of His Articles Here DEALING WITH BANKRUPTCYYou Can Also Add Your Views About How To Deal With Bankruptcy On His Blog Here DEALING WITH BANKRUPTCY

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Bankruptcy Rights

September 16, 2010 By admin Leave a Comment

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Bankruptcy Rights

Author: Peter Gitundu

Financial distress happens due to many reasons, among them medical bills for uninsured illnesses and job loss, among other reasons. In most cases these are out of the debtors control. It is important that both the debtor and the creditor realize that once the petition has been filed, they have bankruptcy rights entitled to them and this should not be violated by anyone involved in the insolvency case.

Among the bankruptcy rights, the creditor is entitled to have a share of the insolvency estate according to their claim. In this case, the secured creditors are given the first priority while the unsecured creditors are only paid after the secured creditors have got a part of their claim. Depending on the amount of the estate available, the unsecured creditors may end up getting nothing at all.

In chapters 11, 12 and 13, the creditors will be entitled to be heard by the court in case they have anything on what the debtor may be planning to do as the case proceeds. They should be heard out on matters concerning the debtors liquidation assets and also on payments received from the bankruptcy estate. Before the court can begin the case, the trustee handling the matter will normally brief the parties on the insolvency rights that both sides are entitled to in order to clear any doubts.

As the case proceeds, the law allows the creditor to challenge any discharge that the debtor would be proposing. He can oppose his debt being discharged by the court. This will then be left for the court to decide whether or not to discharge the debt depending on the reasons forwarded.

Article Source: http://www.articlesbase.com/personal-finance-articles/bankruptcy-rights-920635.html

About the Author

Peter Gitundu Creates Interesting And Thought Provoking Content on Finance. For More Information On How To Deal With Bankruptcy, Read More Of His Articles Here DEALING WITH BANKRUPTCY If You Enjoyed This Article, Make Sure You SUBSCRIBE TO MY RSS FEED!

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Declaring Bankruptcy

September 5, 2010 By admin Leave a Comment

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Chapter 13 Bankruptcy Rules - Declaring Bankruptcy

Author: Alexander Travis

There are many chapter 13 bankruptcy rules that you will need to know about if you are considering filing.  Of course the first piece of bankruptcy information you need to know is which chapter to file.

Chapter 7 (liquidation) bankruptcy is a full "pardon" of all debts and is considered the grandaddy of all bankruptcies.  In Chapter 7, 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 the full 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.

Chapter 13, on the other hand is a restructuring bankruptcy in which not all of the debts are resolved, because the debtor still has the ability to pay some of the bills.  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.

Of course, if you have been having financial difficulties and are considering declaring chapter 7 bankruptcy or chapter 13 bankruptcy, you should always first consult a bankruptcy attorney.  He or she can go through the many  chapter 13 bankruptcy rules and can assist you in any type of filing or debt consolidation or debt settlement.

Article Source: http://www.articlesbase.com/debt-consolidation-articles/chapter-13-bankruptcy-rules-declaring-bankruptcy-1750475.html

About the Author

For more bankruptcy information and Chapter 13 bankruptcy rules, visit http://www.relieve-debt.com

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Bankruptcy Info

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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Bankruptcy Claim

August 19, 2010 By admin Leave a Comment

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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.

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