You are here: Home / Archives for fail out of bankruptcy

Bankruptcy Info

August 24, 2010 By admin Leave a Comment

Bankruptcy Info by Mooty Web Design

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

.

Filed Under: Bankruptcy information Tagged With: , , , , , , , , ,

Bankruptcy Credit Counseling Nevada

August 7, 2010 By admin 2 Comments
... credit counseling contact

Chapter 13 Bankruptcy: Reorganization of Debt and New Bankruptcy Laws

Author: Simon Volkov

Chapter 13 bankruptcy is often referred to as 'reorganization bankruptcy'. Unlike chapter 7 bankruptcy which requires debtors to sell assets to pay outstanding debts, Chapter 13 lets petitioners keep assets as long as they adhere to a court approved repayment plan.

Chapter 13 bankruptcy extends payment terms with creditors and allows debtors to repay debts over a period of three to five years. Debtors are required to submit chapter 13 payments to a bankruptcy Trustee who distributes monthly payments to creditors.

If debtors are unable to abide by reorganized debt payments, creditors can petition the court and request the bankruptcy petition be dismissed. When debtors fail out of bankruptcy, the judge can either allow them to file Chapter 7 or dismiss the petition.

If Chapter 13 petitions are dismissed, debtors lose protection from the court and creditors can initiate collection actions, including foreclosure. This can be particularly harmful to debtors who file bankruptcy to stop foreclosure.

Once debtors fail out of bankruptcy, lenders commence with foreclosure proceedings at the point where they left off prior to the debtor filing for chapter 13. In many cases, foreclosure can commence within a matter of days.

Debtors can file for personal bankruptcy without legal assistance, but this is not advised. New bankruptcy laws established in 2005 require debtors to follow specific protocol outlined in the Bankruptcy Abuse Prevention and Consumer Protection Act. BAPCPA is exceptionally complicated and few people can adhere to the policies without assistance from bankruptcy attorneys.

When possible it is best to consult with three or more lawyers prior to filing Chapter 13. Organize financial records including pay stubs, bank statements, investment statements, alimony, child support, and expenses prior to meeting with attorneys.

Bankruptcy lawyers prepare and present petitions to the court. Shortly thereafter, a 341 creditors meeting is scheduled. Debtors are given the opportunity to explain their circumstances to creditors and present their proposed repayment plan during the 341 meeting. Creditors who want to be included in the repayment plan must submit claims within ninety days of the meeting.

BAPCPA requires all debtors to repay a portion of their debts when possible. The amount to be repaid under chapter 13 is determined by the means test; a financial tool that compares debtors income to their states' median income level.

Individuals who earn equal to or greater than median income levels are required to file chapter 13 bankruptcy. Individuals who earn less might be eligible for chapter 7.

It is important for debtors to realize a large percentage of disposable income must be contributed toward repayment of debt. Additionally, debtors cannot incur new debt during the repayment period unless approved by the bankruptcy Trustee.

Before deciding to file for chapter 13 bankruptcy it is strongly recommended to conduct research via the Internet or by consulting with a bankruptcy attorney. Bankruptcy has far-reaching effects that can haunt debtors for ten years and cause serious harm to their credit. Consider bankruptcy alternatives such as debt consolidation, debt settlement, credit counseling and budgeting before petitioning the court for debt relief.

Article Source: http://www.articlesbase.com/personal-finance-articles/chapter-13-bankruptcy-reorganization-of-debt-and-new-bankruptcy-laws-1623138.html

About the Author

Simon Volkov is a California real estate investor who specializes in buying houses from individuals facing chapter 13 bankruptcy and foreclosure. Simon is particularly interested in houses located in Orange County and southern California, Nevada, Arizona and Washington. If you are facing foreclosure or bankruptcy and need to sell your house fast, submit property information via the "we buy houses" form at www.SimonVolkov.com.


Filed Under: Bankruptcy information Tagged With: , , , , , ,

Bankruptcy Counseling Certificate

July 28, 2010 By admin 10 Comments
minnesota bankruptcy lawyers ...

Fail Out of Bankruptcy: What Happens When Debtors Cannot Repay Debts?

Author: Simon Volkov

Fail out of bankruptcy refers to people who have filed for Chapter 13, but are unable to adhere to their repayment plan. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 mandates debtors must repay a portion of debts unless their income level is less than their states' median income. Under BAPCPA requirements, debtors must contribute a large percentage of disposable income toward debt repayment.

When individuals fail out of bankruptcy, creditors can file a petition through the court requesting the bankruptcy be dismissed. When Chapter 13 bankruptcies are dismissed, debtors lose all protection from the court and creditors can commence with collection action, including foreclosure.

Oftentimes homeowners will file for Chapter 13 bankruptcy to avoid foreclosure. If borrowers are able to maintain their regular mortgage payment and adhere to their bankruptcy repayment plan, Chapter 13 can be a saving grace.

Unfortunately, most homeowners fail to understand that in addition to maintaining monthly mortgage payments, they must also repay mortgage arrearages. Homeowners who are already struggling to make ends meet are seldom able to pay additional funds to prevent foreclosure.

When homeowners fail out of bankruptcy mortgage lenders can initiate foreclosure proceedings at the point where they were suspended when the bankruptcy petition was filed. For instance, if foreclosure would have occurred within 30 days, the bank can foreclose on the home within 30 days of the borrower missing a Chapter 13 payment.

When debtors are unable to adhere to their chapter 13 repayment plan they should immediately contact their bankruptcy attorney. If the debtor has encountered a temporary financial setback, the attorney can usually convince the bankruptcy Trustee to work with the debtor to get back on track and avoid failing out of bankruptcy.

Filing for bankruptcy protection can help debtors reorganize their debts and get back on track with finances. The new bankruptcy laws require debtors to undergo credit counseling through an approved agency either prior to or during bankruptcy proceedings. Debtors must present a credit counseling certificate and proposed repayment plan to the bankruptcy judge.

Before filing for bankruptcy, debtors should investigate debt reduction alternatives. These might include debt consolidation, debt settlement, credit counseling and budgeting.

Bankruptcy filings remain on credit reports for ten years. Debtors who fail out of bankruptcy are rarely able to obtain any type of credit. Those who do are certain to pay high interest rates and have exceptionally low credit limits.

Personal bankruptcy can adversely affect other areas of life. Individuals with poor credit and bankruptcy filings typically have to pay more when renting a home or apartment. Landlords oftentimes require high-risk renters to pay first and last month rent, along with a security deposit.

Utility companies will charge security deposits which can be held for two or more years. Debtors are often forced to purchase automobiles through "Buy Here Pay Here" lots and end up paying much more for the vehicle than it is worth. Many banks will not allow consumers with bankruptcy filings to open checking or savings accounts. Insurance companies can charge higher premiums for automobile and home insurance.

Take time to become educated about the process of bankruptcy and the ramifications of failing out of bankruptcy. While it can be tempting to file bankruptcy to stop creditor harassment, the long term affect can be devastating.

Article Source: http://www.articlesbase.com/personal-finance-articles/fail-out-of-bankruptcy-what-happens-when-debtors-cannot-repay-debts-1224763.html

About the Author

Simon Volkov is a California real estate investor who specializes in offering solutions to individuals who fail out of bankruptcy and those facing foreclosure. If you can no longer adhere to your Chapter 13 repayment plan or in fear of losing your home, submit your property information via the "we buy houses" form at www.SimonVolkov.com today.


Filed Under: Bankruptcy information Tagged With: , , , , , , ,

Bankruptcy Counseling Nevada

July 27, 2010 By admin 2 Comments
Reno Bankruptcy Attorney ...

Mortgage Bankruptcy: Tips to Save Your Home from Foreclosure

Author: Simon Volkov

Mortgage bankruptcy filings are on the rise as homeowners continue to struggle financially. The American Bankruptcy Institute states bankruptcy filings rose 35-percent during 2009 and millions more are anticipated during 2010.

Mortgage bankruptcy is also referred to as the Conyers Bill; a controversial bill enacted by legislation in 2007. The Conyers Bill modified terms of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) passed by Congress in 2005.

Controversy stems from the fact the Conyers Bill grants bankruptcy courts authorization to alter existing mortgage terms to benefit borrowers. Mortgage terms that can be changed include: reduction of principal mortgage balance to reflect appraised property value; reduced interest rates; and elimination of excessive fees.

Altering mortgage terms provides homeowners the opportunity to regain control over finances. As long as borrowers adhere to modified loan terms, mortgage lenders can recover financial losses and avoid foreclosure.

Under Conyers Bill, borrowers are required to provide evidence they are financially insolvent and unable to cure mortgage arrears. The bill provides relief to eligible homeowners who want to keep their home in the event of bankruptcy.

The mortgage bankruptcy bill offers protection to homeowners who obtained subprime or non-conventional mortgage loans after January 1, 2000 and later filed for chapter 13 bankruptcy. Borrowers are required to provide sufficient evidence proving they lack the financial ability to stay current on their mortgage note.

When debtors petition the court for bankruptcy protection their main objective is to save their home from foreclosure. Since Chapter 13 provides financial relief by restructuring debt and extending payment terms, bankruptcy courts can control payment terms to ensure creditors and debtors are protected.

Debtors are required to submit chapter 13 payments directly to the bankruptcy Trustee, who in turn distributes payments to creditors. If debtors do not adhere to their repayment plan, creditors can petition the court and seek dismissal of the bankruptcy petition.

A judge will take the petition under advisement and review events which caused debtors to fail out of bankruptcy. The judge can either allow debtors to file Chapter 7 or dismiss the case. Chapter 7 requires debtors to liquidate assets and use proceeds to pay debts. Outstanding balances are discharged and debtors are no longer responsible for repayment.

When mortgage bankruptcy petitions are dismissed, debtors lose all protection from the court. Creditors can move forward with collection action at the point where they left off prior to the debtor's bankruptcy filing. In some cases, foreclosure can begin within 72 hours of failing out of bankruptcy.

Homeowners considering mortgage bankruptcy should obtain legal counsel from a qualified bankruptcy attorney. Personal bankruptcy has serious financial consequences which remain on credit reports for ten years.

When possible utilize bankruptcy alternatives such as debt consolidation, debt settlement, or credit counseling. For borrowers with no other options, mortgage bankruptcy might be a solution to saving their home as long as they can adhere to the repayment plan.

Article Source: http://www.articlesbase.com/mortgage-articles/mortgage-bankruptcy-tips-to-save-your-home-from-foreclosure-1636482.html

About the Author

Simon Volkov is a California real estate investor who provides solutions to individuals facing mortgage bankruptcy and foreclosure. His website provides resources and articles on topics such as debt management, bankruptcy alternatives, credit counseling and personal investing. Simon is currently buying pre foreclosure homes in Orange County and southern California, Nevada, Arizona and Washington. If you need to sell your home fast, submit property information via the "we buy houses" form at www.SimonVolkov.com.


Filed Under: Bankruptcy information Tagged With: , , , , , , , , , ,

Bankruptcy Creditor Committee

July 17, 2010 By admin 8 Comments
, Collections, Creditor ...

Chapter 11 Bankruptcy: Tips for Restructuring Business Debt

Author: Simon Volkov

Chapter 11 bankruptcy provides protection to businesses and individuals that carry high levels of debt. Also known as "reorganization bankruptcy", Chapter 11 provides debtors with the option to restructure debt and become financially revitalized.

Using chapter 11 bankruptcy protection, debtors are allowed to hold onto personal and business assets such as real estate, commercial buildings, automobiles and equipment. During the bankruptcy process debtors must obtain credit counseling, submit a debt repayment plan, and obtain bankruptcy confirmation through the U.S. Trustee creditor committee.

Chapter 11 petitions are more costly and time consuming than any other bankruptcy chapter. Strict guidelines are imposed and stringent repayment requirements often cause many debtors to fail out of bankruptcy; losing all protection from the court. Bankruptcy experts claim only about 10-percent of chapter 11 reorganization bankruptcies end in success.

The low rate of success primarily stems from the fact that Chapter 11 bankruptcy is utilized by the mega-wealthy and large corporations. Recent chapter 11 filings include Reader's Digest, Washington Mutual bank and Lehman Brothers.

Chapter 11 bankruptcy petitions must be confirmed through the U.S. Trustee creditors committee. Committee members vote to deny or approve submitted repayment plans. Debtors must file a disclosure statement outlining financial information regarding assets, liabilities, and finances.

The disclosure statement is essential for obtaining bankruptcy confirmation. Information provided in the statement allows the Trustee's committee to make informed decisions regarding debtors' financial ability to reorganize and repay debts.

Once chapter 11 bankruptcy is confirmed, the court oversees finances until outstanding debts are fully paid. Corporations are required to repay creditor debts before making financial distributions to shareholders.

Although Chapter 11 is exceptionally complex, it offers more flexibility than other bankruptcy chapters. Multi-dimensional options add layers of flexibility not found in personal bankruptcy options. The flexible options of Chapter 11 provide debtors with multiple options to restructure debt.

A qualified bankruptcy lawyer is necessary when filing for Chapter 11 bankruptcy. Attempting to file Chapter 11 without an attorney would be committing financial suicide. Congress enacted new bankruptcy laws in 2005 that impose strict rules and regulations. One improper form or missed deadline could result in dismissal of the bankruptcy petition.

Two credible sources for obtaining information and resources regarding Chapter 11 bankruptcy include Cornell University Law School and the U.S. Trustee Program; a division of the United States Department of Justice.

Individuals and business owners should understand the risks and rewards of filing Chapter 11 bankruptcy. Consult with bankruptcy attorneys and conduct research at the above mentioned websites.

Deciding to file bankruptcy is never an easy decision. However, the more you know, the better prepared you will be to end up in the 10-percent of successful transactions, instead of the 90-percent that fail.

Article Source: http://www.articlesbase.com/business-articles/chapter-11-bankruptcy-tips-for-restructuring-business-debt-1234606.html

About the Author

Real estate investor and published author, Simon Volkov, provides a comprehensive bankruptcy article library via his real estate investing website. A wealth of information is provided on a wide range of topics including chapter 11 bankruptcy, how to avoid bankruptcy, personal money management, foreclosure, probate, inheritance and more. Discover valuable resources at www.SimonVolkov.com.



Filed Under: Bankruptcy information Tagged With: , , , , , ,
« Older Posts