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Personal Bankruptcy Filing Process

February 10, 2010 By Leave a Comment

Most people today are going to court to seek protection from the harassment of creditors once they have been unable to pay their debts. There are mainly two chapters under which bankrupt people can file a petition. The liquidation chapter has some of the debtors property sold in order to pay off outstanding debts. There are several facts that the debtor must equip himself with when such a situation occurs.

In Personal bankruptcy filing, one can protect their personal property from being taken over by the creditors. One risks being sued by the creditors and loosing all they have if they do not file a financial distress petition in court. This move will protect the consumer property especially if the property cannot cover the debt once sold. The court must evaluate property such as an automobile and house, if they will not be worth the net debt then the debtor will be allowed to retain such property.

Many people live in fear that once they file a personal insolvency petition, creditors may continue to harass them. The truth is that immediately the court has received the petition, it stops the creditors from any collective action against the debtor. The court appoints an attorney who is to answer to any creditors. There will be no more communication between the creditor and the debtor once the petition has been filed.

Debtors should be advised that personal bankruptcy could be the only option left when all has been done to no avail. It is important for anyone willing to go this way to get advice from the appropriate persons to allow them make informed decisions.

Peter Gitundu Creates Interesting And Thought Provoking Content on Finance. For More Information On How To Deal With Bankruptcy, Read More Of His Articles Here DEALING WITH BANKRUPTCY If You Enjoyed This Article, Make Sure You SUBSCRIBE TO MY RSS FEED!

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Your Bankruptcy Attorney – Guiding You through the Process

February 6, 2010 By Leave a Comment

If you are in deep financial trouble and are thinking about filing for bankruptcy, then you should hire a knowledgeable bankruptcy attorney that can guide you through the entire process.


Here is what your bankruptcy attorney will do once you have contacted them.


Your Attorney Will Ask For All the Relevant Papers


You will first need to go for mandatory credit counseling six months prior to filing for bankruptcy.


The proof of that counseling, along with other financial papers (such as a list of all your debts, expenses, income and assets), will have to be provided to your bankruptcy attorney before they can proceed.


They will study your documentation and then advise you on the best way out of your financial predicament.


Your Bankruptcy Attorney Will Then Decide On the Relevant Chapter


Based on your financial records, your bankruptcy attorney will come to a conclusion as to which chapter is more suitable for your situation.


If you have exhausted your sources of income, then you might be advised to file for bankruptcy under chapter 7. If you have a reduced source of income and would also like to save most of your assets, then your attorney might advise you to file under chapter 13.


If you own a business and you want to continue running it, then you could file for bankruptcy under chapter 11.


Your Attorney Can Help You with the ‘Means Test’


If you are filing for chapter 7 bankruptcy, then your bankruptcy attorney can help you calculate your gross and net income for the previous six months. That income will be compared to the average median income of a similar-sized family in your town.


If you do qualify to file under Chapter 7 bankruptcy, then your attorney will coordinate with a trustee appointed by the bankruptcy court in disposing your assets in order to pay off your creditors.


If your income exceeds “means test” guidelines for qualifying filing a Chapter 7, then your attorney will now have to shift their attention to filing for bankruptcy under chapter 13, which requires a new repayment schedule.


This schedule will help you clear your old debts over a period of 3 to 5 years.


Your Bankruptcy Attorney Can Draw Up a New Schedule for the Court


If you need to file for bankruptcy under chapter 13, then your attorney can draw up a new repayment schedule and get it approved by the court after arranging a meeting with your creditors.


Once the repayment plan is approved, then you will need to start your payments according to that schedule.


Your Attorney Can Help You Avoid the Pitfalls


Filing for bankruptcy can be a complicated affair – and you will probably be too worried to be thinking straight.


An efficient bankruptcy attorney can calm you down and point out the pitfalls and advantages of filing for bankruptcy under different chapters after analyzing your case.


Hiring an attorney can save you a lot of time and effort. They will do the legwork involved to close your case at the earliest possible time.


An experienced, knowledgeable bankruptcy attorney is a vital asset to have on your side when you are facing financial difficulties and thinking of filing for bankruptcy.

Bankruptcy lawyers in Fort Worth who specialize in consumer bankruptcy and offer bankruptcy services that help good people through one of the toughest times in their life. We have experienced bankruptcy attorneys who can help you work toward a better future. For more information please visit us at http://www.allmandandlee.com/

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A Look Into The Process of Filing Chapter 7 And 13 Bankruptcy

February 5, 2010 By Leave a Comment

For every person, whether or not you file Chapter 7 is up to you to determine. Although there are a number of different times when it is a very good idea, there are many that file that does not need to do so. For this reason, new laws have been put in place to determine just if you qualify to file in the first place. Your attorney will walk you through understanding if Chapter 7 is right for you, if Chapter 13 is a better choice or if you do not qualify for either.


First of all, you should know what you owe, who you owe it to and have a budget that cuts out every possible extra expense so that you can work to pay down your debt. Finding ways to actually cut through your bills can help you to really pay off those credit cards and bills, without having to file Chapter 7. The more drastic you are in doing this, the more successful you can be to avoid this problem.


Another thing that you should do is to consider using only cash for purchases. You may want to consider going to only cash in a set allowance, too. This will help you to really cut into the amount of money that you owe because you will not be adding to it each month. Give yourself a set amount of money to spend per month and does not go over.


You can also look for small ways to add dollars into your pocket. Selling off a few assets that you have and does not really need can help you to actually find benefits in the long term. If you have an extra car sitting in the garage, it may look nice, but it could be something to help you avoid filing Chapter 7. You should try to sell little things too, such as through garage sales and even by selling them in your local newspaper.


Another step in the right direction is to work with your creditors. You will find that there are non profit consumer credit counseling programs available that will work as the middle man. They will help you to find the right balance with your credit about your situation and even try to get your rates lowered.


While you can file bankruptcy on your own, it is much more efficient and economic to hire an attorney that specializes in bankruptcy. He or she will work with you to find the best possible solution for your needs. They will also work with you to meet with your creditors, to come to an agreement, and to file all of the legal work that must be filed in order for this to happen, without a problem.


Understanding what that actually means and entails is something different, though. Most people know what bankruptcy is but does not know the difference in Chapter 7 and Chapter 13. They does not know how to do it nor do they realize that it is harder than ever to have their debts discharged. Nevertheless, it is something you have to plan for. Here are some things that should be known.


Chapter 7: In this type of bankruptcy filing, your debts are discharged. All debts that are filed under this and are approved for discharge will be debts you are no longer responsible for. This type of bankruptcy filing is best for those that do not have assets or have assets that are not valuable enough for the creditors to file against.


Chapter 13: This type of filing is much different. Here, your debts are adjusted. This provides a temporary halt to the foreclosures and collections that are happening to you, in order for you to spend the next three to five years trying to pay down the debt that you owe. It will allow you to restructure the debt into easier to manage terms. In addition, it will change the interest rate on your loans to make them more affordable.


As of 2005, new bankruptcy laws went into place to keep those that have been filing Chapter 7 abusively from doing so. This law, called the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 is one that is quite comprehensive.


It provides several restrictions that will require those that are considering filing bankruptcy to follow before being able to have their bankruptcy discharged. The fact is that it is now harder than ever to file Chapter 7.


There are several things that are now taken into effect in regards to filing Chapter 7 under this new law. Here are some points that are important to know about.


– A variety of new deadlines is included. If these new deadlines are missed, your bankruptcy will not go through. Penalties for refilling will be higher and harder to work through.


– A test is provided by your attorney that will determine if you even are allowed to file bankruptcy. This will decide if you can file Chapter 7 or Chapter 13 and is called a means test. More people will be required to file under Chapter 13 which will require you to have your debts restructured so that you still have to pay them back, just at a lower rate.


– Your assets are likely to be valued higher than before and this includes furniture, cars, and other assets you have.


– There are also laws in place that require residency requirements as some individuals were seeking to use the laws of one area over another if they were more favorable to them.


– There are penalties and fees for trying to re-file. Although it was easy to do this in prior years, it is now going to be seriously challenging to do so.


– The judges are allows to provide for up to 20% in reduction to the debt is the creditors will not work with consumer credit counseling companies to help you to relieve your debt.


– There are also protections in the new law that allows for your college savings plans and your retirement funds to remain untouched by the filing of Chapter 7.


Filing Chapter 7 is almost a necessity to many. Those that have had to deal with expensive medical bills or those that were careless with credit cards often find themselves caught, under a rock and there is no way out. It is very hard to pull out of a situation like this, especially when there is no simple solution. For many, Chapter 7 really means a new beginning and the hope of a new future without debt.


Depending on how you decide to handle your financial trouble you should investigate all your options. There are many companies out there that specialize in debt consolidation and bankruptcy. Bankruptcy is not always the answer and can actually hurt you more than it will benefit you in the long run.

Dennis J. Cole is founder of DJ & H Unlimited a family owned business formed to provide a network of helpful and interesting web sites like DJ & H Articles Unlimited our article directory located at http://articles.djhunlimited.com.

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Filing Bankruptcy Online : For A Smoother Bankruptcy Process

February 5, 2010 By Leave a Comment

Now days, with the wide availability of bankruptcy form processing services on Internet, filing bankruptcy online has now become easier and the good part of the story is that the process is very easy and time saving. If you understand the legal requirements associated with filing bankruptcy and you know what are the forms that you need to fill and submit in this regard, you do not even require hiring a bankruptcy attorney to help you with the procedure of filing bankruptcy.


Ways To File Bankruptcy


In fact, there are plenty of ways you can use to file court petition for bankruptcy. For example, if you can hire bankruptcy lawyers to do the job for you or you can avail the various online bankruptcy services available on Internet, or if you are a legal expert and you know the ins and outs of the various bankruptcy laws, you may choose to go for personal filing.


How Much Does Filing Bankruptcy Online Cost?


Depending upon the type of filing process you have chosen, the costs will vary. For example, filing bankruptcy online for chapter 7 bankruptcy and chapter 13 may cost you somewhere around two hundred dollars or less, depending upon the type of bankruptcy you are filing for. If your bankruptcy case is a bit complicated and you know that you are not capable enough to defend your bankruptcy claims yourself successfully, it is always recommended to avail the valuable services of an expert bankruptcy attorney. They will never let you down. These days, even the bankruptcy lawyers choose to go for filing bankruptcy online, as it makes the process much easier and most importantly, it saves a lot of time both for the debtor and the bankruptcy attorney, but of course, it costs a little more.


Advantages Of Filing Bankruptcy Online


If you do not want to hire a bankruptcy attorney, it will be wiser for you to take advantage of the various online bankruptcy services. They are known as online bankruptcy form processors. They will help you in several ways. For example, when you submit your specific bankruptcy case to them along with all the relevant information, they will suggest you the right type of bankruptcy that you should claim for and they will provide you the right bankruptcy forms to fill. Once you submit those forms, they will review all the information you provided with the forms. If some information is missing, the online bankruptcy forms processor will inform you regarding the same and will ask you to submit the missing information.


Once they approve everything, on your request, they will even file a court petition for bankruptcy for you. This way, we can see that filing bankruptcy online will take away the pain out of the complicated proceedings.

Filing bankruptcy online is a good option to speed up the bankruptcy process. When you file bankruptcy online, you need not pay a heavy fee to the bankruptcy attorney.

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