Monthly Archives: July 2013

Bankruptcy Law: Some Important Facts

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As applying for loans, credit cards and other forms of credit are easier to come by, so are the bankruptcy rates in the United States. In a ten year period, between 1994 and 2004, bankruptcy rates in the United States nearly doubled. The government’s reaction was to take a closer look at reasons parties were filing for bankruptcy, new laws were instated to ensure that individuals and businesses had valid reasons for applying for bankruptcy.

One of the primary laws regarding bankruptcy that was passed in the United States in 2004 is the Bankruptcy Abuse Prevention and Consumer Protection Act. This law just went into effect in October 2005, but has already caused quite a stir in the financial and bankruptcy law arenas.  Besides making it more difficult to qualify for Chapter 7 bankruptcy, or complete bankruptcy, the law imposes stricter rules and budgets on Chapter 13 debtors.

A major change the law makes throughout the United States is the need for debtors to have filed tax returns for four years in a row before qualifying for bankruptcy.  As well, dischargeable debts, or those debts where personal liability is taken away by the court system, is more difficult to come by. The Act requires that debtors prove good reason for dischargeable debt and is even requiring more debtors to take responsibility with non-dischargeable debt budgets.
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Bankruptcy Information

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Bankruptcy is a situation in which someone who owes money will seek relief from their debts by going to court. Though bankruptcy can be good in some situations, it may not always be necessary. Just because you are in a financial strain does not mean you should immediately file for bankruptcy. There are some things you will want to take into consideration first.

Will I or Won’t I?

There is no easy answer to whether or not you should file for bankruptcy. Before making a decision you should first consult an attorney or credit counselor. They will be able to look at all the factors involved with filing bankruptcy, including the advantages and cost. The amount of debt you have is one of the most important factors for whether or not you should file for bankruptcy. It is important to remember that there are many alternative solutions. One solution is to hire a financial manager.

The Financial Manager
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Bankruptcy Help – 5 Things You Can Do After Bankrupcy

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One of the issues that people considering bankruptcy often worry about is that they will never get credit after filing a Chapter 7 or Chapter 13. That, or the fact that the bankruptcy will stay in their credit report for 10 years from the filing, which fact would serve as warning to future creditors that you might turn out to be a bad risk. But neither is true, however. While a bankruptcy will indeed stay in your credit report for ten years, it does not necessarily mean that you can no longer get new credit.

Furthermore, only a Chapter 7 bankruptcy will stay in your credit report within 10 years. If you filed under Chapter 13, the period is shorter – about five to seven years. Worst case scenario: You can get a new loan but with high interest rates or fees. Now, that’s not so bad, is it? Especially after considering that even people with good credit can get bad loan deals. The fact remains that no matter how bad or good your credit line, it is not a guarantee that you are going to get approved for a loan or get low interest rates. In other words, a bankruptcy may damage your credit but only to an extent. It does not necessarily mean that you will never qualify for a new credit. What damage there is, you can always rebuild. And that is what you should be focusing on, instead of wallowing in the pits of Credit Doom.

#1 CAN DO: Keep a Credit Card out of the Bankruptcy

When filing for bankruptcy, the rule is that you have to make a schedule. A schedule is a list of all assets and liabilities that you are required under the law to disclose before a bankruptcy case could commence. If you owe money on a credit card at the time you file for bankruptcy, you have to include that in the schedule. Otherwise, you may be sued for perjury and penalized under federal law. What’s worse, if you fail to disclose unpaid credits like this, you may be denied discharge of all your debts.
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Bankruptcy Fundamentals

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Bankruptcies can be called “reorganizations” or ‘liquidations”, depending on which type of bankruptcy you decide to do.  Both a “Chapter 7” and a “Chapter 13” bankruptcy are federal court processes that are meant to assist businesses or consumers to get rid of their debt or to repay the debt with protection provided by the bankruptcy court.

A Chapter 7 bankruptcy is considered a “liquidation”.  If you own property, it is sold (liquidated) and the profit is used to pay off as much of your debts as possible and leaving you with enough to start over.

A Chapter 13 bankruptcy is a “reorganization” and is by far the most common type of consumer bankruptcy.  Consumers who file a Chapter 13 typically repay their debts over a period of three to five years under the protection of the bankruptcy court.

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Bankruptcy Forms: Having The Right Ones

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Filling out bankruptcy forms can be one of the most difficult parts about filing for bankruptcy, although these forms are a necessary evil to complete the legal process. Unfortunately these legalities can add major emotional stress to an already difficult situation. Especially if you have decided to go about filing on your own, without the help of a lawyer or financial service company, you may find yourself overwhelmed with trying to understand which bankruptcy forms are right for which chapter.

If you are an individual who is filing for bankruptcy, most likely you will be filling out bankruptcy forms specifically dealing with either Chapter 7 or Chapter 13. Even as a business you may be filing for Chapter 7 or Chapter 13, although you may be filing for Chapter 11 as well. In any case, there are separate forms that need to be filled out with each particular chapter stating the intention to file bankruptcy under that chapter.

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Michigan Bankruptcy Explained

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Whether or not we want it to or mean it to, often times our debt can become out of hand, to the point that we can no longer control it. It does not occur because we expect it, it occurs because we live in an age where credit is everything. In fact, many people do not even accept cash for a variety of things, for example, online shopping. All online shopping opportunities takes credit cards only. We will use credit for so many different items, that before we know it we begin to become overwhelmed and have the inability to pay the credit when the time comes.
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Bankruptcy Debt Relief – The Last Resort?

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Are you buried neck-deep in debt? Do you owe a total of more than a hundred thousand dollars? Have you been repeatedly turned down by debt relief services? If so, don’t lose hope because there is still one last resort for you and that is to file for bankruptcy.

Bankruptcy debt relief has been the way out for thousands of people who have no idea of how to escape the financial hole they have inadvertently trapped themselves in. There are even individuals who have filed for bankruptcy more than once in their life.

However, before you join their ranks and go for bankruptcy debt relief yourself, you have to make sure first that there is really no other option for you.
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Bankruptcy Credit Card: How To Choose One

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There are many credit card issuers out there promoting what some people refer to as “bankruptcy credit cards” – that is, credit cards for people who have a bankruptcy on their credit report.

Of course, these credit card issuers target individuals with poor credit in general, not just those with bankruptcies – but for the purpose of this article, we will use the term “bankruptcy credit card”.

Most of the bankruptcy credit cards you see advertised are secured credit cards. If you are not familiar with a secured credit card, it’s “secured” by a special savings account you establish with the issuing bank which acts as collateral for the line of credit you receive with the bankruptcy credit card.

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Bankruptcy Attorney: Questions To Ask Firebaugh and Andrews Westland Michigan Bankrtupcy Attorney’s

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If you have tried every way imaginable to avoid bankruptcy but find that you have no other way out of the situation, the first step you should take before filing is to consult with a bankruptcy attorney. A bankruptcy attorney can be hired or appointed by the court systems to help you through the court proceedings. If you decide to select your own attorney, make sure to select someone with previous experience in bankruptcy law, preferably someone who works specifically with bankruptcy.

No matter which bankruptcy attorney you select, you should always be prepared to ask the attorney questions regarding your own case. Here is a list of questions you should always ask your attorney to make yourself more aware of your bankruptcy proceedings:

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Bankruptcy and Useful Tips for Avoiding It

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The new bankruptcy law makes filing for debt relief through the courts much more difficult. It’ is definitely better to avoid bankruptcy if possible.  Here are some tips that might help.
The Bankruptcy Abuse and Consumer Protection Act was passed in early 2005 with the intention of reforming American bankruptcy law as we know it.  The existing laws, according to Congress and the credit card companies, allowed too many debtors who might be capable of repaying at least some of their debts to have them wiped away by the courts.  The new law was intended, rightly or wrongly, to eliminate the “bankruptcy of convenience” that allowed many consumers to run up huge debts without repaying them.  Under the new law, filing is much more difficult, time consuming and expensive; so much so that it has discouraged many would-be filers from seeking debt relief through the courts.

Given that debt relief through the bankruptcy courts is now so much more difficult, it makes sense that consumers with mounting bills might want to seek alternatives.  In order to do that, debtors need to find some other way to manage their increasing debt.  Below are a few tips that might help consumers avoid filing for bankruptcy.

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