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Bankruptcy Question

August 27, 2010 By Leave a Comment

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General Bankruptcy Questions Answered

Author: Tony Mandarich

Filing for bankruptcy is a way to start over with a clean slate. It relieves the tension and anxiety that comes with creditors calling, debt building and provides a solution to a financial mess. It is important to realize bankruptcy has many intricacies and sometimes it is hard to distinguish where to start. Here are some common concerns to consider before proceeding forth.

Does Bankruptcy Take a Toll on My Credit?
Your credit will take a hit with any filing for bankruptcy. However, your personal financial recovery plan should include gradually developing credit after the bankruptcy is completed. The timing of when this occurs depends on what type of bankruptcy you are filing. With Chapter 7, bankruptcy remains on your credit history record for 10 years. With Chapter 13, bankruptcy stays on your credit history record for 7 years. You need to check with a professional bankruptcy attorney to determine which one is more suitable to your situation and needs.

Will I Lose My Job?
No, you shall not lose your job after filing Bankruptcy. It is illegal for employers to discriminate against you for filing bankruptcy. Furthermore, unless an employer specifically searches for bankruptcy filings, then your employer (or potential employer) shall not find out. This is an instant relief for some who wish to keep the negative financial situation private.

What Happens to Student Loans?
In most cases, student loan debt is not dischargeable in bankruptcy court meaning you will have to repay them. There is an exception to this statute. For you are able to discharge the student loan if by paying, it you would be considered an “undue hardship” on the borrower. Nevertheless, do not get your hopes up. It is extremely challenging to prove and bankruptcy courts are the ones who have the final say.

Will I Lose My Car?
Depending on what state you live in, there may be an automobile exemption rule allowing you to keep the vehicle. On average, the ability to keep or lose a car is determined by how much the car is worth in comparison to how much you owe on it. You need to ask a professional. For a Chapter 7 filing may cause the court appointed bankruptcy trustee to liquidate it.

What about My House?
Under bankruptcy, law, your house has a separate set of rules. For under Chapter 13 bankruptcy, your house will be preserved and the courts shall let you live in it throughout the entire process. It is vital to check with a professional before filing for any bankruptcy ensuring you have a greater understanding of what is possible under what type of filing, and which filing you shall benefit from the most.

Bankruptcy is a tricky situation. There are many stipulations that are standard across the nation, but it is essential to note that there are also legal rules varied by state. Find someone in your own area who is able to answer your questions accurately. Ask for references. Hire an experienced professional who has ample knowledge about bankruptcy proceedings and is able to guide you throughout the entire procedure is completed.

Article Source: http://www.articlesbase.com/law-articles/general-bankruptcy-questions-answered-1767348.html

About the Author
To find out more about Arizona bankruptcy law reach an Arizona bankruptcy attorney, Scottsdale bankruptcy attorney or a Phoenix bankruptcy attorney today.

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Medical Bankruptcy

August 20, 2010 By Leave a Comment

Medical Bankruptcies by L33tminion

Bankruptcy Statistics

Author: Mercy Maranga

During these harsh economic times more and more people are filing for bankruptcy. Once frowned upon, it is now a common option for individuals with unmanageable debt. This is despite the fact that the laws have made it more difficult to file for bankruptcy. Plus let’s not forget the implications and the cost of filing for bankruptcy. Bankruptcy statistics clearly show there is an increase in large proportions of individuals filing for bankruptcy.

These statistics are normally complied by the administrative office of the U.S. courts. They are done quarterly with each quarter ending December, March, June and September. According to bankruptcy statistics released earlier this year, chapter 7 filings have increased 43%. Also on the increase are non business bankruptcies which have risen 31%.  On the other hand business bankruptcies have risen 54%. This increase is blamed on the fact that we are a society that is hooked on material things even when we have the inability to cater for them. If by some misfortune we are caught by an emergency that needs financial resources, we get into debt while trying to come up with the money.

This digs us into a hole that is very difficult to get out of. Most families that usually file for bankruptcy do so for a number of reasons. The leading cause are jobbing loss, medical problems and credit card debt. According to bankruptcy statistics, credit card debt can be avoided if people just have discipline and learn how to use cash when making purchases. It is a very easy trap to get into because you do not actually see how much you are spending at any given time and you end up spending more than you earn.

According to the demographics the average age of people filing for bankruptcy is 38 years. According to The Fragile Middle Class: Americans in Debt by Elizabeth Warren, 44% of filers are couples, 30 % are women filing alone while 26% are men filing on their own. In addition, two out of three people who have filed have suffered a job loss. The states with the highest bankruptcy rates are Alabama, Georgia, Tennessee, and Utah.

Article Source: http://www.articlesbase.com/finance-articles/bankruptcy-statistics-1170442.html

About the Author

Mercy Maranga writes content on Finance and Debt Management. Visit her site here for more information on Finance and how to effectively Manage your debts. Bankruptcy

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Bankruptcy Claim

August 19, 2010 By 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

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BankruptcyOnly is a nationwide network of bankruptcy attorneys and Internet professionals who are ready to assist you immediately.

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Bankruptcy Attorney Fees Michigan

August 17, 2010 By 6 Comments
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Understand your Lack of Options With Bankruptcy Law

Author: Jon Arnold

Contemplating filing for bankruptcy is a decision that no one looks forward to making. If there was another way, you would take it, but sometimes filing for bankruptcy is the only option. It is not an easy decision, nor is it one that should be taken lightly. You have talked to attorneys and found out their fees. You are already struggling financially; you are debating about filing for bankruptcy on your own, and save your self the attorney fees.

The new laws have made it much more difficult to file for bankruptcy without an attorney. There are new requirements and qualifications for filing the different chapters of bankruptcy. For example, every person that wants to file for bankruptcy must pass a means test. A means test is a test based on all of your expenses and all of your income and this helps you know whether you qualify to file a Chapter 7 or if you must file a Chapter 13.

If your income is greater than what the state’s median is set at, then as far as the government is concerned, you are capable of paying some of your unsecured debt. The court can also say that you have to file a Chapter 13 if they believe that you are abusing the system by filing for a Chapter 7. In essence, you must be approved to file for bankruptcy, especially a Chapter 7. In other words, just because you file bankruptcy does not mean that you will be able to file bankruptcy, because it may not be approved, which is another reason to have a bankruptcy lawyer involved and not attempt it on your own.

This alone is reason enough to sit and talk your case over with an attorney to make sure that you are filing for the correct bankruptcy. Have your attorney go over your income and expenses with you to make sure that you are disclosing everything. You are asking for trouble if you don’t. The government is fine with you filing your bankruptcy yourself, but the U.S. Trustee still holds you to the same guidelines it holds the attorneys to. You must know the law and what it requires, and if you do not deal with bankruptcy law as a vocation 40 hours a week like a lawyer does, you may be asking for even more trouble.

Retaining an attorney to help you go through the bankruptcy process also insures that you go to court with all the proper paperwork, and that your documentation is in order and correct. Having an attorney also helps to answer questions as you receive the various letters from the court and creditors after your “Meeting of the Creditors” court hearing.

Additionally you will not be able to file bankruptcy until your have gone through credit counseling. The credit counseling has to be done by a state approved agency, and it must be done before filing as well as after you have filed. These are two different classes and an attorney can help you make sure you are taking the right class at the right time. Often bankruptcy attorneys have computer access to those mandated classes and you can take them in their office.

Bankruptcy is not easy for anyone. Having to file is often a very emotional time for those that file. Having an uninvolved person to help make sure that you are meeting all the requirements and addressing the court and creditor issues can make it easier to get through. With the new bankruptcy laws, having an attorney to help you is really a must.

Article Source: http://www.articlesbase.com/finance-articles/understand-your-lack-of-options-with-bankruptcy-law-233815.html

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For more insights and additional information about Bankruptcy Law as well as getting a free bankruptcy evaluation from a qualified bankruptcy lawyer who is local to you, please visit our web site at http://www.bankruptcy-data.com



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Filing Bankruptcy

August 17, 2010 By 10 Comments
Challenging Times by optikal ...

Filing Bankruptcy – Should I Declare Bankruptcy?

Author: Mike Singh

Sometimes people consider bankruptcy to be an easy option to free themselves from the burden of mounting debt. In fact, rather than addressing the root of the problem this the first option that comes to their mind. The truth is that this may eliminate the burden but its not an easy thing to do. Furthermore, bankruptcy should always be your last option.

At first glance it may seem that the filing process for bankruptcy is very easy. But, its not that trivial. The justification for your filing will begin with showing your financial history to a judge and it will also be open to any objections that your creditors might have. More than likely, your creditors will fight tooth and nail to get their money back rather than willing to settle.

In the event that you actually are able to file bankruptcy successfully, you should consider the effects of this action on your future.

Credit cards with any balances outstanding will be lost while some other creditors will close your accounts. Getting a large credit line or a home loan at an affordable interest rate will be near impossible.

You will still owe debts such as taxes owed from the past 3 years, student loans, and any others which are exempt from bankruptcy protection.

How long will this last you ask? Ten years! During these ten years, you will have to maintain a spotless credit history to get a level where creditors can trust you to a certain degree. On your credit history, the bankruptcy will stand out as the most negative criterion. This is much worse than a low FICO score.

These are the effects of your credit. Besides these, you could have to give up any other assets depending on when you got them. You will not lose your house and your car in most states. However, if you have additional vehicles or real estate these might not be protected.

Don’t forget that this procedure of filing bankruptcy is not free. There will be costs associated with the courts and of course your attorney is also going to charge you. These costs will only compound your financial misery.

All is not lost. You will be able to obtain some breathing room to start the recovery process of your financial situation. Your debt collectors will stop bothering you. If they don’t notify them of your filing. Any actions of foreclosing your house will stop. If you are contemplating filing bankruptcy, you will be better off by filing sooner than if its too late. The sooner you file, the sooner you will be on your way to rebuilding your credit history (perhaps better than the one you built last time around).

Now that you won’t have credit cards this might be a blessing in disguise. You will have another opportunity to change your spending habits.

Do your due diligence before you take the big step. Good luck!

Article Source: http://www.articlesbase.com/non-fiction-articles/filing-bankruptcy-should-i-declare-bankruptcy-125602.html

About the Author

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