What is all of the talk about bankruptcy these days? What a Los Angeles Bankruptcy attorney thinks

Author: State Bar Approved Lawyer Referrals

What is all of the talk about bankruptcy these days? Quite simply, it is the section of the federal law that will allow a person who is in an extreme amount of debt to get a "fresh start". It will reduce the amount of debt that is required to be paid back as well as extend the time period in which the debt must be repaid. Will you need a bankruptcy attorney to help you sort through all of this? The answer is a resounding YES and let me explain why.

The bankruptcy laws are often referred to by their chapter number in the Bankruptcy Code. Debtors may file under five different chapters; three of them are for individuals: Chapter 7, which refers to Liquidation, Chapter 11, which refers to Reorganization, and Chapter 13, which refers to Reorganization.

The laws have really changed in recent years as far as bankruptcy goes, and you are now required to sit through a course before you will even know if bankruptcy is the way you should and even can proceed. That's right, it is no longer YOUR choice about declaring bankruptcy; the judge must approve it. This will help to determine whether you can have your debts erased through Chapter 7 of the bankruptcy laws or whether you have to enter a type of repayment plan through Chapter 13. It is better to acquire the services of a bankruptcy attorney before deciding to blindly strike off on your own. When consulting with your bankruptcy attorney, he or she will make sure that you file all of the necessary forms to discharge the debt.

That is just one of the reasons you want a good and qualified bankruptcy attorney because if you make a mistake on those forms, your case may get thrown out and you are right back to where you started. Or you may mistakenly present yourself on the forms so that you only get approved for Reorganization instead of Liquidation, which means you still have all your debts.

There are a numerous ways that the new bankruptcy laws will have their effects on debtors:

* A strict financial means test must be taken that will not allow many debtors to file under Chapter 7.

* Debtors have to receive a briefing from a credit counseling agency that has been approved for this. The debtor must do this at least 6 months before filing a bankruptcy case.

* Debtors must also take a class that has been approved on debt management techniques before receiving their bankruptcy discharge. Yes, these two steps are mandatory, even though the majority of people who file do not do so because of financial mismanagement.

* It is now easier for a court to be able to dismiss a bankruptcy case altogether or convert a Chapter 7 case to a Chapter 13 case

* It is now permitted for a court to impose sanctions on lawyers or on debtors for filing a Chapter 7 case that either had been dismissed or was converted to a Chapter 13 case.

How can a Bankruptcy Attorney Solve Credit Problems?

Bankruptcy attorneys are lawyers that specialize in bankruptcy law. They provide legal means for an individual or a business to either wipe out debts or resolve them.

Bankruptcy attorneys explain to their clients the primary purposes and applications as to how the bankruptcy laws now specifically apply to them in their unique situation. They may give such pertinent information to their clients as to under what chapter they may file, what bills are allowed to be eliminated, the length of time that payments can be extended, the possessions that are allowed to be kept, and all of the other details concerning bankruptcy.

A bankruptcy attorney will properly present your case for Chapter 7, which involves liquidation and debtor rehabilitation, or Chapter 13 which is reorganization, which is probably not what you had in mind when you decided to file. This involves a court-approved plan of reorganization as well as payment of the debt over a certain time period using future earnings.

If you are on the fence as to whether you should hire a bankruptcy attorney, you are strongly advised to you do so. There are many stories, including a couple who had the misfortune of having to apply for bankruptcy and they thought they could file online. It turns out that they filled in the paperwork in the wrong way and consequently the debts that the wife had were left intact as they only filed singly and not jointly. Don't make that same mistake. You will be out attorney fees in the short run, but you will more than make it up when your debts are discharged.

To find a Pre-Screened Lawyer in your area, please call our 24Hr Unbiased Lawyer Referral Hotline at 661-310-7999.

Article Source: http://www.articlesbase.com/bankruptcy-articles/what-is-all-of-the-talk-about-bankruptcy-these-days-what-a-los-angeles-bankruptcy-attorney-thinks-1057854.html

About the Author

To find pre-screened attorneys in the Los Angeles area call 661-310-7999.

Certified by the California Bar Association (Certification # 0128), 1000Attorneys.com is a single point of contact to find pre-screened attorneys in Los Angeles, California. The lawyer referral program complies with rules and regulations set forth by the Bar and the Supreme Court to provide unbiased lawyer referrals to Los Angeles residents

All you need to know about filing bankruptcy in Los Angeles California - Learn the insights of bankruptcy by a lawyer

Author: State Bar Approved Lawyer Referrals

Ever consider bankruptcy as the answer to all of your financial woes? After reading this article, hopefully you will have a more balanced opinion on the advantages and disadvantages of declaring bankruptcy.

Bankruptcy happens involuntarily or voluntarily; either a creditor (owed ,000 or more) takes a court order against you or you sign up and declare yourself bankrupt with the Insolvency Trustees Services Australia (ITSA) or a registered trustee. Bankruptcy is an option for protection from creditors for someone who cannot pay outstanding debts and cannot reach an agreement with creditors to repay through a flexible repayment plan or be discharged from all debt obligations. Usually those considering bankruptcy lack the resources to pay off creditors while meeting basic living expenses and have no sellable assets to repay creditors.

One can opt for bankruptcy voluntarily by lodging the following documentation: a debtor's petition, a Statement of Affairs, and an acknowledgment that basically says that one is aware of the circumstances, effects, and consequences of bankruptcy.

However, opting for bankruptcy is a major financial decision that should not be taken lightly. Other options may be more suitable than bankruptcy and it is crucial that one considers all of the alternatives to bankruptcy before binding oneself to its lifetime ramifications. There may be other ways to get protection from creditors.

Declaring bankruptcy does not protect the bankrupt from being hassled by secured creditors such as banks, although it does protect the bankrupt from unsecured creditors such as major credit cards. For example, the credit card lender cannot legally ask for repayment while a secured creditor can simply take away assets that were covered by their security. Case in point, a bank can repossess a bankrupt's home if the bankrupt misses a mortgage payment.

Alongside having to repay secured creditors, other creditors and payments which have to be paid despite declaring bankruptcy are: court fines and penalties , child support, fees relating to fraudulent proceedings, and HECS/HELP obligations.

Bankruptcy also negatively impacts one's employment opportunities, ownership, earnings, and credit file. Certain industries are off limits for a bankrupt. A bankrupt employed in a restricted industry will have to look for another job in another industry and perhaps acquire a new set of vocational skills and certifications. Also, a bankrupt cannot be a company director without court approval.

A bankrupt is forced to live on a smaller income because of mandatory payments to a Bankruptcy Trustee if earnings are over a certain amount, which is determined by the government.

A bankrupt cannot own whatever he or she wants. A bankrupt can only own "necessary" household property and clothes, money or property bought with compensation payments, tools that meet a predetermined value, and a vehicle that meets a predetermined value. Check the ITSA website for current thresholds, restrictions, and updates at www.itsa.gov.au.

While a bankrupt can apply for and obtain credit, the credit line available for borrowing is limited to a predetermined value. One also has to ask for permission in order to borrow more than that predetermined value.

For seven years, a bankrupt's name and personal information will be all over various credit reference agencies' databases. After seven years, that information will be removed. Conversely, a bankrupt's name and personal information will stay recorded on the National Personal Insolvency Index, a public record which is accessible by any person or organization that is willing to pay a fee. Having name and personal information in a permanent record makes it harder to obtain financing options.

For all of the aforementioned reasons, it is important to consider one's circumstances and investigate all the options, weighing them against the benefits and consequences of bankruptcy.

New changes in the law also give more power to the government or the Bankruptcy Trustees to repossess assets that have been transferred before bankruptcy, depending on the deemed intention of the bankrupt to avoid creditors.

Normally, assets can be protected by giving assets to others (gifting assets) and placing assets in superannuation. Yet as of May 31, 2006, the Bankruptcy Act was amended to the effect that a trustee can take back property previously owned by the bankrupt and presently owned by a spouse or a family trust. Assets that were transferred to a party where common sense would say that the bankrupt made the transfer in order to evade paying creditors, and in addition, consideration for a property that was transferred from a bankrupt to a third-party, will most likely be taken back into the possession of a trustee.

Superannuation contributions that were made by a bankrupt before he or she became bankrupt can be taken back by a trustee if the intentions of making superannuation contributions were to avoid repaying creditors. This became effective from July 27, 2007 in response to a case in 1990, Cook v Benson, where a bankrupt had made superannuation contributions to numerous funds and still managed to enjoy an outrageously comfortable amount of benefits despite being bankrupt. Now the government and the court can take back superannuation contributions where they believe that the intention of those contributions was to avoid creditors, and an investigation of the bankrupt's past history of superannuation contributions can be launched in order to determine if the intention of those contributions was to avoid creditors.

The main point is that bankruptcy is not a laughing matter, and it is harder for the wily to avoid being caught for trying to plan a comfortable bankruptcy situation.

To find a Pre-Screened Attorney in your area, please call our 24Hr Unbiased Attorney Referral Hotline at 661-310-7999.

Article Source: http://www.articlesbase.com/bankruptcy-articles/all-you-need-to-know-about-filing-bankruptcy-in-los-angeles-california-learn-the-insights-of-bankruptcy-by-a-lawyer-1057824.html

About the Author

To find pre-screened attorneys in the Los Angeles area call 661-310-7999.

Certified by the California Bar Association (Certification # 0128), 1000Attorneys.com is a single point of contact to find pre-screened attorneys in Los Angeles, California. The lawyer referral program complies with rules and regulations set forth by the Bar and the Supreme Court to provide unbiased lawyer referrals to Los Angeles residents