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February 14, 2010 By admin Leave a Comment


Bankruptcy can be a dirty word, and an even dirtier experience.  If you are facing a dangerous financial situation where bankruptcy seems like an option, you could be dealing with quite a bit of fear.  Part of what leads people to make bad decisions is thinking they are the first and only people to go through difficult financial situations.   However, when it comes to bankruptcy, many people have faced these unfortunate circumstances.  Loan modification attorneys work with people everyday who are considering bankruptcy as an option, thinking that bankruptcy will help them keep their homes.

Most recently, former pro bowl quarterback of the Cleveland Browns Bernie Kosar declared bankruptcy.  After donating millions to charity, lending tens of millions of dollars to friends and family and going through a messy divorce, Kosar finally had to succumb to the financial pressures.  Kosar has been a successful businessman, a skilled athlete and more.  Yet, in the midst of his success, financial troubles haunted him.  Many people make a great deal of money over their lives, yet they still face difficult financial situations.  Kosar still has to watch over his daughter, try to keep a roof over their heads and figure out the next steps in his life.  Declaring bankruptcy can impact someone in ways they never though of, and Kosar is going through those challenges.  Getting a loan is difficult, getting a reasonable interest rate is impossible, and it can even impact your career.

If you are facing foreclosure, you may think that a bankruptcy is the way you should go.  Bankruptcy professionals tout the benefits of declaring bankruptcy; however, bankruptcy has various negative impacts on your credit history, your finances and your life.  Declaring bankruptcy will stay on your credit report for years, up to a decade in fact.  That means that every loan, credit card and line of credit you ever get will be impacted by your bankruptcy.

Bankruptcy is also sold as an option to avoid foreclosure.  However, there are much better options to not only stave off foreclosure, but keep your credit in a much better place.  A California loan modification could be an alternative to bankruptcy that keeps your credit rating from falling through the floor and your interest rates from going through the roof.

California loan modification attorneys work hard to discover what your options are.  Rather than living in a home you think you can

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Declaring Personal Bankruptcy – Dispelling Common Myths

February 14, 2010 By admin Leave a Comment


Credit card companies are hot on their marketing and have often been accused of offering credit irresponsibly. For example, they offer cards on college campuses to those who are only just legally old enough to even have credit and thus have no experience or knowledge of credit cards of their associated costs.

But credit cards have transition somewhat from emergency cash substitutes to much more of the normal thing and as a result, there are more people than ever living outside their means. Credit means that people are able to buy something that they cannot really afford.

It is little wonder then that so many people are declaring personal bankruptcy. What starts off a small credit card purchase can spiral out of control with high interest rates and costs that consumers never considered.

With this type of irresponsible lending, an increase in those declaring personal bankruptcy is almost to be expected. But can we just blame the creditors? At some point, people have to account for their own actions and take some responsibility for their own spending. After all, nobody forces you to take a credit card. But aggressive advertising of credit services does contribute to the number declaring bankruptcy, that is for sure.

Contrary to what seems like a popular opinion, it is not all deadbeats and wasters who are declaring personal bankruptcy. In fact, such people are unlikely even to be approved. They are often just people whose finances have spiralled out of control and who can no longer keep up their payments. And while credit card companies and banks should shoulder some of the blame, we really do, as a society, have to take responsibility for our own actions and our own spending as well. Otherwise this cycle will not end.

Get the right information on Declaring Personal Bankruptcy before you make that important decision. To get the facts on bankruptcy, simply Click Here

Find out more about declaring personal bankruptcy and what are the considerations you should take note of.

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Common Misconceptions About Bankruptcy

February 13, 2010 By admin Leave a Comment

Bankruptcy is not a place you want to be, but sometimes people are so far into debts for one reason or another that it is unavoidable. At least they THINK it is unavoidable. The truth is that there are several options to filing for bankruptcy, and since bankruptcy is such a huge and drastic step, it should only be considered as your last option, AFTER you have thoroughly investigated and exhausted all other options as not being applicable or feasible.

But if bankruptcy is indeed your only or best option, it is not something you should do alone or by yourself, whether personal bankruptcy or business bankruptcy. The laws differ from state to state, and you really need the advice and counsel of a good bankruptcy lawyer. This bankruptcy attorney should be local to you, should be familiar with bankruptcy in your state, and can advise you as to what your real options are, as well as helping and advising with the mountain of paperwork and forms that will be required.

There are some common misconceptions about bankruptcy. It is totally different than declaring bankruptcy in the game of Monopoly, but some of the things that people assume about bankruptcy are totally false, and we will take a look at some of those things here.

Untruth #1: I will lose everything

There are different types of bankruptcy, and again, a qualified attorney can talk with you about this. But there is no guarantee or mandate that you will lose everything, or in fact, ANYTHING. You may be in a position to actually retain the things you have, and to be conscious to get caught up on overdue payments as well as making timely payments to your creditors in the future.

Untruth #2: Everybody will know about it

Basically, this is up to you and who you tell. Yes, bankruptcy is a matter of public record, but who will go into public records to search for it? Do you regularly go to the public records database to see if any of your friends or neighbors have declared bankruptcy? Only your creditors will know, and they are prohibited from making it public knowledge.

Untruth #3: I

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Common Bankruptcy Myths Debunked

February 11, 2010 By admin Leave a Comment

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Most Common Reasons For Filing Bankruptcy

February 10, 2010 By admin Leave a Comment

One of the most debilitating things someone can go through is filing for bankruptcy. No one thinks this possible could happen to them until reality sets in and bankruptcy is the last resort. This usually happens when someone is unable to keep up with their financial obligations such as car loans or credit card payments. Not only is it rough on the debtor (or the person who owes the money) but it is hard on the creditor as well (the person, business or municipality to which the money is owed).

While it is usually the debtor who files for bankruptcy, there are the rare occasions when the creditor might do so. This is called involuntary bankruptcy and generally occurs when the creditor is owed a very large sum of money. Creditors have little comfort when trying to collect debts, and therefore are somewhat relieved when someone files for bankruptcy because, no matter how long it might take, they will get their money back.

When someone files for Chapter 7 bankruptcy, their assets are combined and then doled out to the creditors. This form of "instant gratification" is most favored by creditors since they get their money up front. However, when the debtor files for Chapter 13, the creditors are receiving money on a fixed payment schedule. It may take longer to collect what is owed, but they will get the money. In these cases, bankruptcy creditors are almost like loan sharks; they are always trying to get their money. On the other hand, bankruptcy is frowned down upon by creditors because they are afraid they will never get paid.

The Chapter 7 bankruptcy process is the easiest of all such processes. It's often referred to as straight bankruptcy. Chapter 7 is a total liquidation process. The debtor will turn over all non-exempt property to the trustee who then will convert it to cash for distribution to the creditors. The debtor will receive a discharge on all debts usually within 4 months. In the vast majority of these cases the debtor has no assets that he would lose so Chapter 7 will give that person a relatively new fresh start at life again.

The following reasons are the most common for filing bankruptcy:

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