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What bankruptcy option do you have?

February 12, 2010 By admin Leave a Comment

***To find a Pre-Screened Attorney in your area, please call our 24Hr Unbiased Law Firm Referral Hotline approved by the California Bar Association at 661-310-7999.***

In today's very tough economic times, the process of filing bankruptcy may have crossed your mind. This is not a decision to be made lightly and should be considered only as a last resort because bankruptcy is going to have multiple long term negative effects on you, not the least of which is that it will be prominently shown on your credit report for the next 7 to 10 years.

So where do you go to get your bankruptcy questions answered? Obviously you are doing research on the Internet which is a great place to start. But there are many facets to bankruptcy that you need to understand before you can make an intelligent decision as to whether to pursue filing or not. With the recent sweeping changes in bankruptcy law, it is no longer something you can or should do on a whim or if you are simply tired of paying your bills every month.

First of all, what bankruptcy alternatives to you have? You probably have more than you realize, many of which are listed at our web site. Have you considered debt consolidation? Not a debt consolidation LOAN because another loan is just about the last thing you need right now, but using a debt consolidation service. You may also have options for debt settlement which has allowed many consumers to avoid bankruptcy.

You need to realize that with the new bankruptcy laws, one of the things that will be done is to prepare a very detailed financial statement on where you are financially at this point in time. This will be presented to the federal bankruptcy judge, who will examine it and make a determination as to whether or not you will even be allowed to file. Yes that's right, you may not even be approved to file if this financial information is not presented in the right format or in the right light.

This aspect is where you should consider using a qualified bankruptcy lawyer to help you with this process. They can analyze your situation since they are very familiar with the laws and especially how those laws apply in your state. They can recommend options and alternatives, and if bankruptcy is indeed your best option, they know how to present your financial information in the right light so that it can be approved to file. You should not be concerned about the lawyer's fees, since the vast majority of people have found that using a lawyer saves them much more in time, money, and assets that more than offset those fees. Contrary to the way it worked in the past, bankruptcy is no longer a do-it-yourself process.

Have you analyzed your outstanding debt to determine what types of debt are there? If not, you should, because there are certain types of debt that cannot be discharged by any chapter of bankruptcy. So if your debt is composed of a large percentage of this type of debt, filing bankruptcy is not going to do you any good whatsoever.

At this point in time, you undoubtedly have a number of bankruptcy questions that need and deserve answers. You need to know what your options are and the best way to proceed because doing nothing is absolutely the worst possible action.

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

To find pre-screened bankruptcy 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

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Is Bankruptcy a Better Option Than Debt Settlement? – Find the Truth and Avoid Nasty Surprises

February 11, 2010 By admin Leave a Comment

We have all seen the ads on TV of companies promising a better life without credit card debt and without having to deal with constant harassing from creditors at all hours of the day. Companies promising that if you have $10,000 in credit card debt, they can help you eliminate up to 60 per cent of that debt in a matter of years. They also induce fear by telling you that if you file for bankruptcy your life and credit will be ruined forever. All of this conflicting information leaves wondering "is bankruptcy a better option than debt settlement or vice versa?".

Let me put this as plain and simple as possible. No matter how you look at it, a credit card settlement and a bankruptcy they both are going to do some damage to your credit report. It is naive to expect to keep your credit score intact after not repaying your debt in full. The main difference is that debt settlement has been glorified lately by TV commercials and it is being portrayed as the responsible and smart thing to do. That is a lie!

There is nothing smart or responsible about hiring these companies. If you are facing desperate times and your finances are in ruins, it is best to seek the protection afforded by law and seek a bankruptcy discharge. That way you are fully protected from lawsuits, wage garnishments and other legal action from all of your creditors. Your debts will be wiped clean and you will be granted a clean slate and a fresh start.

While on the outside a debt settlement program may seem like a more responsible thing to do, it is not. These types of programs will not offer you any protection if you get sued by your creditors and you are not protected by any laws. They never tell you that if after they try to settle on your behalf, the creditor refuses, you still owe that money in full and you are obligated to repay it.

If you are barely able to make ends meet, find the help of a bankruptcy lawyer. Most firms will offer you a free consultation where you can learn more bankruptcy information and make an informed decision.

If you are in credit card debt hell and you have any Bankruptcy Questions then Click Here Now and find a free consultation with a Bankruptcy Lawyer in your area.

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Do not be mislead – Bankruptcy is still an option even if you earn above your state’s median income

February 9, 2010 By admin Leave a Comment

According to Los Angeles Bankruptcy Lawyer Michael H. Raichelson, even if you think you earn too much to file a Chapter 7 bankruptcy, you may be mistaken. Just because you earn above your state

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Bankruptcy is not the only option for Los Angeles Residents

February 9, 2010 By admin Leave a Comment

If you, like thousands of other North Americans, find yourself swimming in debt month after month with no end in sight, you are probably weighing your alternatives. Bankruptcy may be one of the options you've been looking at, but it should certainly be the last one you consider. A bankruptcy will stay on your record for a minimum of 6 years. This means you may be required to sell some of your assets, and it will be extremely difficult to get credit cards or loans for at least the next 6 years after you file for bankruptcy.

If you are beyond debt consolidation, but you have a regular income and are able to pay a portion of your bills every month, then you have an alternative of which many financially strapped individuals are not aware: a consumer proposal. A consumer proposal is basically a debt negotiation with your creditors. You propose paying a lesser amount instead of filing for bankruptcy.

Often when people can't make payments on their loans, they think their only option is to file for bankruptcy. What they don't know, or don't consider is that many creditors would negotiate a lower payment if it would avoid the customer filing for bankruptcy. If a customer does file for bankruptcy, very often the creditors end up with little or nothing to show, so they will usually be quite willing to negotiate a settlement."

Some of the benefits of a consumer proposal are:

Less damage to your credit rating. Interest stops accruing at the time of filing. You only pay a portion of the total amount you owe (sometimes as little as 20%). You won't lose your assets. Wage garnishment and any other collection activities are stopped at the time of filing.

If you have decided that a consumer proposal is the best course of action for you, your next steps should be to seek the help of a licensed trustee, who will prepare your proposal and send it out to your creditors. Your creditors will then vote on whether or not to accept your proposal. If 75% or more of your creditors vote in favour of your proposal, it will be approved, if not, the trustee will call a meeting of creditors to negotiate new terms.

Bankruptcy should certainly be a very last resort, especially when this option is available and has so many benefits. A consumer proposal is not only better than bankruptcy for you, it is also better for your creditors.

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

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

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Business Bankruptcy – Business Bankruptcy; is the Best Option Chapter 11 or Chapter 13

February 9, 2010 By admin Leave a Comment

When your business begins to experience serious business debt problems and the overall debt is accumulating far faster than the business assets, you may want to consider the protection afforded by filing for bankruptcy. The United States bankruptcy statutes and court filings are designed to aid persons who want to pay their accumulated business debt, but are not able to do so. Before you file a bankruptcy petition is it important that you enlist the advice of a business debt management consultant to determine whether a different form of business debt program may not be a better choice. A businesses debt consolidation or a debt settlement may provide the relief that the business needs with out formally petitioning for bankruptcy.

At any rate, meeting with a business debt management consultant is a requirement of filing for chapter 11 business debt protection. If, in the course of this counselling, a business management plan is developed, a copy of it must be filed alongside the chapter 11 bankruptcy protection.

It is important to understand the difference in the protection the bankruptcy court provides. Chapter 13 is aimed to protect individuals who have an ensured wage from their creditors' attempts to collect their debts for three years. It is designed to give debtors the designated 3 year time period to make scheduled repayment to the creditors without being bothered by creditor attempts at collection and with out penalty or further accrued interest. Chapter 13 has a debt limit of $175,000 of debt and it may be extended to individuals who operate a business.

However the primary bankruptcy tool that has been designed to afford relief to those with significant business debt is the chapter 11 business bankruptcy plan. In order to file a chapter 11 business bankruptcy petition the individual must provide proof that a debt management professional has been consulted. If a debt management plan has resulted from that meeting, it will be filed with the petition. There is a $1000 basic filing fee for a chapter 11 business bankruptcy, plus additional small fees that must be paid at the time of filing. When the plan outlined in the chapter 11 business bankruptcy is approved by the court, the assets of the business will be placed in receivership or under the guidance of a court appointed conservator who will supervise the manner in which the business assts will be utilized to repay the debts of the business. A debt repayment plan will be formulated by the conservator and will have to be strictly adhered to. A business bankruptcy that is given chapter 11 protection is not an erasure of the business' debts; it is a strict schedule that is worked out whereby the business operator repays the debts of the business within his or her capacity.

The decision to try to seek protection from business debts by filing a business bankruptcy is best made with the advice of a business debt management consultant. A business bankruptcy may not offer the business debt protection that the business really requires. It may be that other options available to resolve business debt are better choices to alleviate those pressures from creditors without placing the business in an inoperable position. Speak with a qualified and experienced business debt management consultant about the other options available to address business debt. It may be that a business debt consolidation or a business debt resolution may be a better overall choice.

Additionally, there are many types of small business loan plans that are available to that may be enough to take a business over the rough patches and continue to stay in operation, thus providing the owner with an income and the community with a useful service.

A chapter 11 or 13 business bankruptcy should be a measure of last resolve that is used only after all other options have been explored and eliminated.

Check these links to learn more:

http://www.curadebt.com/about.asp

http://www.curadebt.com/settlement/business-debt-negotiation/business-debt-settlement-negotiation.asp

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Debbie White is a contributing writer to http://www.curadebt.com/and is currently writing some special articles to guide businesses on how to manage debt and avoid bankruptcy. For Business Debt Information and Debt Help Consultation, call toll-free 1-877-850-3328.

Filed Under: Chapter 11 Bankruptcy Tagged With: , , , ,
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