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July 13, 2010 By admin 10 Comments

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What is the Cost of Declaring Bankruptcy and Are There Any Other Options?

Author: Joseph Kenny

A lot of people are running into financial difficulty these days - especially with a lot of major corporations going through layoffs and buyouts. What this means is that a lot of people find themselves suddenly unemployed and it may take some time to get another good paying job. When financial difficulties come, and they stay around for awhile, the thought of declaring bankruptcy will come into some people's minds - especially when the debt starts getting out of hand, with no light at the end of the tunnel. Here are some thoughts about bankruptcy that will help you to make that important decision of "Should I, or shouldn't I?"

What Declaring Bankruptcy Means

Declaring bankruptcy is basically an indication that you are not able to pay the debts that you have legally incurred. For this reason, and the legal examination of your bills and the way you handle your finances, as well as the humiliation involved, makes it a rather stressful process. It means that you will have to seek credit counseling, too.

Because so many people are attempting to get out of their debts, for one reason or another, Congress has passed an Act, which was signed by President Bush in 2005, to place certain limitations on declaring bankruptcy and who can do it. This Act, called the "Bankruptcy Abuse and Consumer Protection Act," seeks to make it more difficult to declare bankruptcy and to help the creditor to receive a higher degree of compensation. This Act called for higher bankruptcy filing fees, credit counseling, and making it more difficult to file under Chapter 7, making it necessary for more people to file under Chapter 13 bankruptcy. Many other details are also covered in the Act that place further limitations on bankruptcy.

Two Types of Bankruptcy

Filing under a Chapter 13 bankruptcy means that there is a "reorganization" of your finances, and it does mean that you do repay much of your existing debt. You are required to make a plan that enables you to pay back a lot of your existing debt in the next three to five years. This means the sale of some of your properties (or all of them) in order to satisfy the debt. It is the bankruptcy Trustee who will make the decision as to what needs to be sold - not you.

Filing under a Chapter 7 bankruptcy means, once again, that the various assets that you do currently possess will need to be listed, by requiring you to take a "means test," and then a decision will be made as to what you can keep and what you cannot. Everything will fall under an "exempt" or a "non-exempt clause." You keep the "exempt" items, and lose the rest. The "non-exempt" items will either be sold, or you will be required to pay them back. Some things that are not exempt are child support and education costs.

The cost for declaring bankruptcy can run up to about ,500 for personal bankruptcy. This includes the filing charges, and the lawyer's fees. The fees, however, are dependent upon how much of an income you have, and it will vary from one state to another. The process of obtaining a legal declaration of bankruptcy, assuming everything is in order, can take up to six months.

After The Declaration Of Bankruptcy

Once you have obtained a legal declaration of bankruptcy, all of your creditors know where they stand. For some, the debts are discharged, and others have received what will be paid to them, or they know what will soon be coming to them. However, it also means that your credit rates have been destroyed, and it will take years to fully repair it. The bankruptcy is placed on your credit rating and will remain there for the next ten years.

What Other Options Are There?

If you are now in a position where you need to consider bankruptcy, then there are some other options that may yet be available to you.

1. Get Credit Counseling

By this, it means work through a debt negotiation company who will take your case to the various creditors in an attempt to work out some kind of a deal. This could be a good step in the right direction because creditors know that if you declare bankruptcy, then they may not get anything. Oftentimes, they will work with you.

2. Renegotiate Your Loans

Once again, by talking with your creditors, you may be able to renegotiate for better loan terms. This could give you a greater leeway financially that could provide just enough of an edge to enable you to get through it with having to declare bankruptcy.

Article Source: http://www.articlesbase.com/finance-articles/what-is-the-cost-of-declaring-bankruptcy-and-are-there-any-other-options-68910.html

About the Author

Joe Kenny writes for SelectLoans.co.uk, a UK personal loans comparison site, visit us today for information on all loan topics including secured loans UK and links to leading UK providers.
Our Site: http://www.selectloans.co.uk/


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An Augusta Bankruptcy Attorney Can Get Your Finances in Order

March 5, 2010 By admin Leave a Comment


An Augusta Bankruptcy Attorney Can Get Your Finances in Order

Any August bankruptcy attorney can explain to you precisely what bankruptcy could do for your financial situation. And the fact of the matter is most people could use a lesson in what exactly bankruptcy is and what it can do to help. Today

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Save Your Finances With the Bankruptcy Automatic Stay

February 14, 2010 By admin Leave a Comment


Are you struggling with high interest credit card debt or unpaid medical bills and simply have no idea how you're going to catch up to all of your monthly payments? If you've been thinking about bankruptcy as a solution to your financial problems, you should know about the bankruptcy automatic stay provision. While you should not take bankruptcy lightly, it may be the solution that you've been looking for.

When you file for bankruptcy, the automatic stay kicks in and prevents your creditors from foreclosing on your house or repossessing any of your assets. In fact, bill collectors are not even supposed to bother you, at least until your case has been settled. If you are contacted despite the automatic stay, the offending party will have to answer to a federal bankruptcy judge.

Of course, this provision is only temporary, and the outcome of your bankruptcy case will determine what exactly happens to all of the debts that you were unable to pay off previously. Even so, the bankruptcy automatic stay provision can give you some real relief when you figure out what to do.

If your Chapter 7 bankruptcy case is successful, you may be able to discharge much or all of your debt. If you decide to file Chapter 13 bankruptcy instead, you will be given a chance to make monthly payments through a restructuring program. Either way, you should find it much easier to deal with repayments.

It's important to realize that there have been some changes in recent years, so you should discuss your options thoroughly with a bankruptcy lawyer and possibly a financial adviser. You don't want to make any assumptions when it comes to such a big decision that could have long-term ramifications for your financial future. Make sure to get all the facts and learn as much as possible before making your final decision.

Don't let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn the answers to common bankruptcy automatic stay visit us at http://personalbankruptcyquestions.org

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Personal Bankruptcy Lawyer: Be Responsible About Your Finances

February 10, 2010 By admin Leave a Comment

Before you begin your quest to find a suitable personal bankruptcy lawyer it is first of all necessary that you get to understand exactly what personal bankruptcy is and what the ramifications of it are. It is only after you have become well educated about what personal bankruptcy is can you expect to identify the right personal bankruptcy lawyer. Also, you must remember not to act in haste and hire a personal bankruptcy lawyer thinking that this is all that it takes to solve all your financial woes.

State Regulations

Filing for personal bankruptcy actually only tells the world at large that you have done everything possible to recover from a financially disastrous situation and have so far failed in being able to recover your financial health. It also means that you are so mired in debt that all hope of sustaining your finances has been lost. What's more, the state in which you are currently a resident of will have its own personal bankruptcy regulations that will affect your case.

This in turn means that you will need to ensure that you hire a personal bankruptcy lawyer from this state. An ideal personal bankruptcy lawyer is someone that is able to handle you and your financial troubles in an easy and friendly manner. They should be trustworthy and have proven competence to handle your personal bankruptcy and it is also important that you are able to communicate effectively with one another.

For your part you must never withhold any information related to your finances. By withholding important information from your personal bankruptcy lawyer you will give rise to new problems that will put you into even deeper trouble than you already are in. In fact, a personal bankruptcy lawyer will only be of use to you if you let them know the complete facts related to your personal bankruptcy and your future too will depend on complete transparency and honesty in providing every available fact.

Before hiring a personal bankruptcy lawyer you should of course have a few probable candidates in mind who will need to be personally interviewed by you and who in turn must demonstrate their ability to solve your problems to your entire satisfaction. It is therefore a good idea for you to look at only those candidates that have extensive prior experience in handling personal bankruptcy cases and who come with good references.

In a similar vein when filing for corporate bankruptcy you will do well to look for a suitable corporate bankruptcy lawyer that will show you how to navigate through the complicated corporate bankruptcy laws. At the time of meeting with your personal bankruptcy lawyer makes sure to have a list of all of your creditors on hand including those who have given you personal loans. Only by providing them with complete facts and information can you expect to stand the best chance of being recommended the best course of action and this in turn ensures getting maximum advantage.

If you love this article, you will also love another article written by this article's author on metal file cabinet and oak filing cabinet.

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