Alternatives To Bankruptcy

Author: Natalia Kobseva

As anyone who has seriously examined Chapter 7 bankruptcy protection knows all too well, filing bankruptcy may be the absolute worst thing that borrowers can do to improve their financial position. For desperate folk suddenly realizing that there is little they can do on their own to achieve debt relief, bankruptcy might seem like an attractive possibility. After all, from our earliest memories, Americans are taught to respect bankruptcy as the (for whatever reason) dignified end to debt crises. Whether playing board games or watching cartoons, we’re taught that bankruptcy is just what is supposed to happen once any borrower has debts that they can no longer responsibly manage. In our culture, bankruptcy is simply expected to be the final debt solutions to personal economic strife. Even as the nature of consumer debt changes from hospital bills and department store accounts to the burdens of credit cards too easily granted and too quickly filled to their limits, bankruptcy maintains a mythic allure as an all-inclusive cleanser for financial woes.

Much as the debt protection of bankruptcy may have seemed a godsend for the generations that came before, there are now any number of new bankruptcy alternatives available for those debtors who have faced financial misfortune. More to the point, once a consumer takes time to fully analyze the Chapter 7 bankruptcy program, they may very reasonably wonder whether or not bankruptcy would be the correct choice for any debtor regardless of their own situation. Successfully filed and discharged, bankruptcy protection could indeed offer consumers new beginnings. In the best scenario, the fortunate borrowers could even start their financial lives over from ground zero, but that is only after they have suffered a harrowing ordeal that risks the utter ruination of their credit rating as well as the potential loss and seizure of any even vaguely valuable possessions.

The relief that people may feel when entering the bankruptcy program is understandable, really. Given that most borrowers seriously considering bankruptcy have already had to deal with (the sometimes hourly) harassment from bill collection agencies and watch their mailbox fill to bursting with past due notices from credit card companies, it is not that surprising that the average consumer – struggling to pay their credit cards and other debts – would jump at the chance to have a specialist take over their affairs. The very idea that debtors would no longer be held responsible for their actions alone comes as a sort of salvation that impels otherwise cautious heads of household to essentially hand over the reins of their economic futures. Certainly, the bankruptcy lawyers charging more and more outrageous fees are not going to argue against what may as well be thought of as their own product. Despite the amount of time the lawyers may spend with their clients (they are paid by the hour, as you probably know), very few attorneys will spend even five minutes counseling borrowers about exactly what they are getting themselves into. Eliminating unsecured debts (credit cards, primarily, as these things tend to go) should be a priority, but wise debtors must recognize the limitations of bankruptcy protection under the current statutes. Above all else, they should know not to trust their attorneys for advice beyond their specialty.

To learn more about Federal Debt Relief Program and how to get started, please visit DebtRelief.bz

Article Source: http://www.articlesbase.com/advertising-articles/alternatives-to-bankruptcy-723421.html

About the Author

Noted Financial Author

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.

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

.

Chapter 7 Bankruptcy Vs Chapter 13 Bankruptcy

Author: James Kertley

If you simply cannot fulfill your obligations to your creditors, then you have the option to file for either chapter 13 bankruptcy or chapter 7 bankruptcy.

There is a voluntary bankruptcy, which is when you file for bankruptcy yourself, and there is an involuntary bankruptcy that is when your creditors are the ones that initiate the process of filing bankruptcy.

When it comes to voluntary bankruptcy there are two options. You can file for chapter 13 bankruptcy or you can file for chapter 7 bankruptcy. These are your options so you should know what you are doing before you file for bankruptcy.

When you file for Chapter 13 Bankruptcy , the court approves a repayment plan that allows you to use your future income to pay off a default during a three-to-five-year period, rather than surrender any property. You will have to satisfy some of the secured loans and the other debts before they will be discharged. After you have made all the payments under the plan, you receive a discharge of your debts. When you file for Chapter 7 Bankruptcy .

and it is granted to you, then you will have to surrender your properties, or at least the ones that were not exempted by the law. These will be surrendered to the trustee who will liquidate them and use the money to help pay off your creditors. It does not matter if you own enough property to pay off the debts in full, they will still take the property and use as much as they can to help pay your creditors. After this process the debts will be discharged and you will not have to pay on them again. You can receive a discharge of your debts through Chapter 7 only once every six years.

Depending on your situation and your debts will depend on whether you file for chapter 13 bankruptcy or for chapter 7 bankruptcy. Either one can be very helpful when you are so far in debt that any other option will not help.

Article Source: http://www.articlesbase.com/loans-articles/chapter-7-bankruptcy-vs-chapter-13-bankruptcy-677655.html

About the Author

Discovering the truth about Chapter 13 Bankruptcy . And Get the answer her: Chapter 7 Bankruptcy

Much of the debt owed by Americans today involves credit cards, personal loans, and even payday loans. These offer an easy way to get whatever they may choose to buy on the spur of the moment, but when that interest starts adding up, many are sorry they let themselves get so deeply in debt. This way of spending becomes a habitual problem, and habits are hard to break. Learning WHY WE SPEND like we do can be very beneficial. There is help for many in need and it comes in the form of education regarding debt management and self control.

Learning how to get out of debt, and break those bad habits, is necessary for those who have overextended their credit and are awash in debt. A few of the things debtors will learn about their spending habits that the credit card companies do not want us to know are: