rse, it is not just happening in Texas. Men and women in households around this country are facing difficult financial decisions in light of our current economy. The questions being raised around the dinner table can range from how to scale back the summer vacation plans and who is going to be responsible for clipping coupons this week to which bills can go unpaid until next month and how to let your youngest child know that the plans to attend her dream college needs to be put on hold. What are the options available to an individual or a family that needs to see some improvement in their financial standing or else face dire consequences? In an effort to avoid a home foreclosure, many people try to sell their homes and look for a new place to live with a lower rent or mortgage payment. But, with today’s housing market, properties can have “For Sale” signs planted in their front yards for months before an interested buyer is found. More and more debtors are turning to debt consolidation services, which promise on those daytime and late-night television ads to lower your monthly payments into one manageable fee. However, what if your situation is so desperate that these options will not be enough to ease your burden? As Texan debtors and others throughout the United States are deciding, filing for bankruptcy protection may be the best option in these troubling economic times.
The recent numbers concerning bankruptcy in our state show what is increasingly becoming a harsh reality for our fellow Texans, particularly in Austin, Houston and San Antonio. Just in the first few months of 2009, court records indicate that approximately 2,672 bankruptcy cases have been filed in Houston. This number shows a 6.2% increase over the 2,515 cases that were filed during the same time period last year. The jump in filings in some of our other major cities is even more startling. In San Antonio, the bankruptcy filings for the first three months of 2009 totaled 1,127, which is a 22.5% increase from the 920 such filings, which occurred between January and March of 2008. And, the numbers indicate that those living in our state capitol in Austin are also trying to relieve themselves of some of their overwhelming financial burdens. Bankruptcy filings of all types in the Austin area totaled just over 800 in the first quarter of 2009, which is up 25% from the same period last year. Despite data that shows more Texans are struggling to maintain their personal financial standing, our state is still faring better that most others in the country. Last year, Texas ranked forty-sixth in the nation in bankruptcies, even better than our 2007 ranking which placed us at number thirty-nine. Of course, this relatively good news does nothing to lessen the pain of each individual who is facing bankruptcy.
For those who are considering the option of declaring bankruptcy, you should be aware of the state and federal laws that affect such filings in Texas. There are two options available to individuals—Chapter 7 or Chapter 13 bankruptcy.
Chapter 7, the most common approach, is considered straightforward liquidation bankruptcy in which your non-exempt assets are handed over to a trustee appointed by the court and then converted into cash to pay your creditors. In reality, most people who file Ch. 7 have no non-exempt assets to sell and the Ch 7 bankruptcy filing essentially becomes a fresh start for their finances. The federal bankruptcy laws in Texas have deemed it so you can determine if you want to use the federal exemption statutes or the Texas statutes when cataloging the assets that creditors are not allowed to touch. With Texas having the most generous list in the country concerning what debtors may keep, most bankruptcy filers choose to follow the Texas guidelines. You are eligible for Ch 7 bankruptcy if your income is below that of the median family income in Texas, as determined by U.S. Census Bureau statistics. If your income is higher than this determined amount, the court can look at your income over the past six months as well as your current expenses to decide if you qualify.
If the bankruptcy court determines that your financial standing makes you ineligible for a Ch 7 filing, then Ch 13 may be the most appropriate action for you. Under this system, known as debt reorganization bankruptcy, debtors develop a payment plan that will repay creditors over a period of three to five years. If you have some non-exempt assets that you wish to retain even after declaring bankruptcy, you may prefer to file as a Chapter 13 bankruptcy. This also holds true for people who have debts such as taxes or students loans that cannot be cleared through a Chapter 7 bankruptcy.
While a Chapter 13 filing may be seen as similar to working with a debt consolidation service, as both set up regular payments with the intention of bringing you current with your creditors, individuals looking for financial relief should know there are differences in the two options. With Chapter 13, you get the assurance of a court-appointed trustee (who may or may not be lawyers) who works with you to make sure that payments are appropriate and processed correctly. On the other hand, some private companies may be scams out to make a profit by charging exorbitant fees and they may not even result in the credit relief you desire. Such contracts should only be signed after completing extensive research on the company and reading the experiences that others have had.
Filing bankruptcy may seem like a wonderful solution to a financial crisis that has been draining you for years and this is true in many cases. However, you must remember that when you hire an attorney and declare bankruptcy you are affecting your assets, your credit score, and creating a record that is available to the public. It is essential that you have an effective and thorough bankruptcy lawyer who will be by your side as you navigate through the bankruptcy courtroom proceedings and the cumbersome paperwork. Mistakes can result in losing assets that you consider essential to protect. And, if you fail to report some of your assets, federal criminal charges may result. Why take any chances with your money, your treasured belongings, and even your future? If you may be filing a Chapter 7 or Chapter 13 bankruptcy soon, your first step should be a phone call to an experienced bankruptcy attorney.
Declaring Bankruptcy is one the most difficult decisions that a person will ever have to make in their lives. So, when you are faced with financial problems, the first decision you should make is to hire the attorney with the skill and experience to help you navigate through these unchartered waters. But where do you start. You start by looking for a Board Certified Attorney in Fort Myers, Port Charlotte, or Naples.
As the only Board Certified Consumer Bankruptcy Attorney in Southwest Florida who handles only consumer cases, I realize that Bankruptcy is much more than a financial issue.
Depending upon the individual, bankruptcy can be devastating emotionally, physically, and financially. Individuals who are experiencing the loss of a home need to take steps to regain control of their lives and their finances. The choice of which Bankruptcy Attorney you should use will be the first step on the road to recovery.
But the question is: How do you find an attorney who can help? First: You can ask around but that would let your friends and relatives know what is going on in your life. Many times, my clients want to avoid this option. Remember, the decision to attend a free consultation is really an interview. You, the client, are interviewing attorneys, so that you can make an informed decision about where to place your hard earned dollars.
Many of my clients have never been inside lawyer’s office before. Trust me, there is nothing to be scared of, without clients, we wouldn't have offices at all. Many people coming in for initial consultations are usually nervous and shy. This is not the time to be shy, you need to ask questions about the attorney's experience, firm and the handling of your file.
Second: Many people look in the phone book, or they ask a friend or google bankruptcy attorney on the internet. All of these methods will work with a varying degree of results.
In this instance, I would do as much research as you can on the attorney and the lawfirm. Read the firm's advertisements. Go to their website and really look it over. Is it helpful or is it generic? Has it been updated? Do they have a blog? Does the attorney write for other blogs? Is he or she a member of NACBA or NACA?
Once you have selected an attorney that you believe can help, you will need to take the next step on your adventure. Let's face it, you can read a web page, and it may sound good. But, a fancy website does not a good attorney make. In order to really get a sense of the law-firm’s culture, you will have to call and speak to someone. Once you take that next step, you will acquire more information that will be critical to your decision.
Ask yourself these questions, in no particular order:
What was the overall impression of the call? Cold or Warm?
Does the firm answer its own calls?
Did you speak to someone or were you sent to voice-mail?
Did the person greet you warmly?
Did the person sound sincere?
Did the person put you at ease?
Did the person work to schedule you an appointment at a mutually convenient time for you and the attorney?
Did the person offer free information by mail, e-mail or facsimile prior to the consultation, or, if you asked for information, how was your request received?
Could you feel the person’s smile on the other end of the line?
Did you leave the call with a good impression or a bad impression?
The answers to these questions will probably determine whether you will be attending a free consultation with that attorney or not.
The passage of the tough new bankruptcy laws in 2005 was supposed to benefit consumers in the form of reducing losses to lenders by making it harder to file bankruptcy. But two new reports released this week show that the new laws not only cost consumers more in terms of credit card debt, but may actually be encouraging greater losses to banks due to increased foreclosures.
According to new research, after the 2005 bankruptcy reform went into effect, both personal bankruptcy filings and credit card company losses sharply declined.
At the same time, while upfront annual fees on credit cards have been all but eliminated, fees have been climbing and becoming less transparent over the years, and there is no evidence that the 2005 bankruptcy reform reversed this trend…over-limit fees and late fees have been climbing since well before bankruptcy reform, and that this trend continued after the 2005 bankruptcy reform.
Industry consolidation in the credit card market enabled the top card issuers to avoid losses from “price wars” by reducing rates to attract new customers.
The credit card industry might also be able to avoid price competition because of complex, multi-tiered pricing that can make it difficult for customers to comparison shop. These fees and interest rates—complex in their own right—are presented in a form that is difficult to understand. Customers faced with such complex pricing systematically miscalculate and underestimate the cost of credit card debt.
A 2006 report from the Government Accountability Office (GAO) that found not only that bank fees and penalties are continuing to rise for card holders, but that credit card disclosures and explanations of fees are deliberately written in manners that make them hard to understand. The GAO also recommended in a separate report that credit card issuers use existing technology to customize card disclosures to individual cardholders, particularly those with high balances or frequent late payments.
The fact that after bankruptcy reform, interest rates and fees continued to rise and grace periods continued to fall, even though credit card companies reaped tremendous gains from declining bankruptcy losses demonstrates that the credit card market is not price-competitive. This lack of price competition explains why the benefits of bankruptcy reform accrued exclusively to credit card lenders and were not shared with the average American family, and why…bankruptcy reform was a failure.
Negative Impact
Another effect of the bankruptcy laws is the increase in foreclosures and defaults by mortgage holders who can’t afford to make payments on their homes. The more stringent bankruptcy code, by restricting financial relief available under the bankruptcy code and by increased the costs of filing bankruptcy, appears to have increased the number of individuals walking away from their homes, their mortgages, and their other financial obligations without seeking the protection of the bankruptcy court.
Under the new law, most individual filers would not qualify for Chapter 7 bankruptcy, which allows for the liquidation and erasure of most debt. Instead, they would be forced to file under Chapter 13, which requires regular payments of at least some of their debt to creditors.
The more stringent requirements of the new laws may be causing homeowners to “walk away” and let their homes go into foreclosure rather than attempt to file for bankruptcy. The restrictions on bankruptcy filings and subsequent increase in foreclosures puts downward price pressures on neighborhoods where many homes are in default or foreclosed upon.
One of the great lessons and ironies associated with [the new bankruptcy law] is that the new law by increasing the dollar value of assets susceptible to default has weakened many of the financial companies that sought the more stringent bankruptcy code.
The Florida Consumer Collection Practices Act protects Florida residents from Unfair Debt Collection Activites. The statute sets forth the prohibited practices;
Florida Statute: 559.72 Prohibited practices generally.--In collecting consumer debts, no person shall:
(1) Simulate in any manner a law enforcement officer or a representative of any governmental agency;
(2) Use or threaten force or violence;
(3) Tell a debtor who disputes a consumer debt that she or he or any person employing her or him will disclose to another, orally or in writing, directly or indirectly, information affecting the debtor's reputation for credit worthiness without also informing the debtor that the existence of the dispute will also be disclosed as required by subsection (6);
(4) Communicate or threaten to communicate with a debtor's employer prior to obtaining final judgment against the debtor, unless the debtor gives her or his permission in writing to contact her or his employer or acknowledges in writing the existence of the debt after the debt has been placed for collection, but this shall not prohibit a person from telling the debtor that her or his employer will be contacted if a final judgment is obtained;
(5) Disclose to a person other than the debtor or her or his family information affecting the debtor's reputation, whether or not for credit worthiness, with knowledge or reason to know that the other person does not have a legitimate business need for the information or that the information is false;
(6) Disclose information concerning the existence of a debt known to be reasonably disputed by the debtor without disclosing that fact. If a disclosure is made prior to such reasonable dispute having been asserted and written notice is received from the debtor that any part of the debt is disputed and if such dispute is reasonable, the person who made the original disclosure shall reveal upon the request of the debtor within 30 days the details of the dispute to each person to whom disclosure of the debt without notice of the dispute was made within the preceding 90 days;
(7) Willfully communicate with the debtor or any member of her or his family with such frequency as can reasonably be expected to harass the debtor or her or his family, or willfully engage in other conduct which can reasonably be expected to abuse or harass the debtor or any member of her or his family;
(8) Use profane, obscene, vulgar, or willfully abusive language in communicating with the debtor or any member of her or his family;
(9) Claim, attempt, or threaten to enforce a debt when such person knows that the debt is not legitimate or assert the existence of some other legal right when such person knows that the right does not exist;
(10) Use a communication which simulates in any manner legal or judicial process or which gives the appearance of being authorized, issued or approved by a government, governmental agency, or attorney at law, when it is not;
(11) Communicate with a debtor under the guise of an attorney by using the stationery of an attorney or forms or instruments which only attorneys are authorized to prepare;
(12) Orally communicate with a debtor in such a manner as to give the false impression or appearance that such person is or is associated with an attorney;
(13) Advertise or threaten to advertise for sale any debt as a means to enforce payment except under court order or when acting as an assignee for the benefit of a creditor;
(14) Publish or post, threaten to publish or post, or cause to be published or posted before the general public individual names or any list of names of debtors, commonly known as a deadbeat list, for the purpose of enforcing or attempting to enforce collection of consumer debts;
(15) Refuse to provide adequate identification of herself or himself or her or his employer or other entity whom she or he represents when requested to do so by a debtor from whom she or he is collecting or attempting to collect a consumer debt;
(16) Mail any communication to a debtor in an envelope or postcard with words typed, written, or printed on the outside of the envelope or postcard calculated to embarrass the debtor. An example of this would be an envelope addressed to "Deadbeat, Jane Doe" or "Deadbeat, John Doe";
(17) Communicate with the debtor between the hours of 9 p.m. and 8 a.m. in the debtor's time zone without the prior consent of the debtor;
(18) Communicate with a debtor if the person knows that the debtor is represented by an attorney with respect to such debt and has knowledge of, or can readily ascertain, such attorney's name and address, unless the debtor's attorney fails to respond within a reasonable period of time to a communication from the person, unless the debtor's attorney consents to a direct communication with the debtor, or unless the debtor initiates the communication; or
(19) Cause charges to be made to any debtor for communications by concealment of the true purpose of the communication, including collect telephone calls and telegram fees.
"To date, the firm has had excellent results in the cases it has been handling. John and Shannon have proven to the mortgage companies that they are a team to be reckoned with." said Carmen Dellutri. "We look forward to the future and hope to help all our clients achieve their goals." said John
Street but is controlled locally, serving to protect North Dakota from the credit freeze and from the need to sell off its precious resources. … Ellen Hodgson Brown Web of Debt Arnold Schwarzenegger Bank North Dakota Citibank union bank wells fargo america westamerica wall street federal reserve bankers money depression farmers states solutions banks resources billions trillions ownership surplus wealth California fantastic credit toll roads taxes Russell Brand Conan O’Brien bakruptcy …
Before filing for a bankruptcy it is important that you know what is involved. You need to understand what the impact will be on your family and your credit history once you decide to file for bankruptcy. The actual filing fees are not very expensive but you need to find a lawyer that has experience to help you fill out the proper forms. Once you file for bankruptcy it can stay on your credit report for up to 10 years and during this time it may be difficult for you to get a loan on a new car or at home. You may want to consider all factors involved in the side if a bankruptcy is your best option.
Know the: Bankruptcy Filing Process
You need to decide whether filing a bankruptcy is the only option you have available to you. If you are in a situation where you have a lot of debt there can be other options available. It may make more sense for you to get a debt consolidation loan than having a bankruptcy on your credit report for 7 to 10 years. There are many places where you can consolidate all the debt you have and roll it into one easy to manage loan payment. Make sure you talk to an expert and find out all the positives and negatives there are two officially filing for bankruptcy.
How to: File Bankruptcy for Free
Remember that your last option should be fine for bankruptcy when you are in debt. There are many options are available to you including getting a consolidation loan where you can have all of your debt into one easy to manage payment. Before filing you need to understand that a bankruptcy will stay on your credit for 7 to 10 years. During this period of time it may be difficult for you to get approved for a loan for a car or a house.
Since the bankruptcy process is already complicated, you need to get a way to make it as easy and as smooth as possible for you. Nowadays there are ways for individuals to file for bankruptcy online and it is making the process easier. There are many web sites available to guide you through the process from start to finish. The sites have a step by step guide of how to file to how to print the relevant documents.
You can also go to a search engine like “Google” and type in the key words “filing bankruptcy online”. The result will be several sites or web pages that you can visit and get more information. Some sites also have forms that you can download and fill out. These sites have instructions on how to fill the documents. Filing bankruptcy online saves you time and money. You will be reducing costs since you do not need a lawyer to do this for you.
Online bankruptcy filing is also advantageous as it gives you tips and advices you on the type of bankruptcy to file for. In addition, when filling the forms online, you will be alerted if you have missed vital information in a specific field. You will not be allowed to continue unless you fill out the required bits. If you are to do the same thing physically and you skip a part, they will have to mail you the documents, which could take weeks just to finish.
It is advisable to acquire the services of a qualified lawyer once you have filled your documents and are ready to file for bankruptcy. They can guide you on the right chapter to use and help you understand the bankruptcy process. Filing bankruptcy online has made it easier for many people to understand what they are getting into.
Filing For Bankruptcy after those endless debt issues may seem as the last resort. However, it might be more of a fearful act. Bankruptcy is a hard-nosed procedure with almost permanent impact. The menacing after effects of bankruptcy, which often are not properly assessed before filing for bankruptcy tend to confuse during the process, thus impelling many to cancel the proceedings.
Debt issues are difficult to deal with and even more strenuous are the problems which typically complement the financial agonies; however, Filing for bankruptcy is not the very perfect answer to curb miseries. Instead, Filing for bankruptcy might just aggravate the issue, leading to even greater, unmanageable troubles. Therefore, before beginning with the official bankruptcy Filing act, read on to find all about bankruptcy and thus refrain from the insidious obligations .
Bankruptcy - The Concept
In the most positive terms, bankruptcy is a legal proceeding that allows individuals and companies to start over again without managing their debt obligations. When large corporations opt for bankruptcy, the leading media representatives talk about it, while when average earning people apply for one, they are an addition to the statistical reports. In the UK, both the stated bankruptcy filing announcements are a norm, thus making bankruptcy sound as an very tempting debt solution route. To further entice the sufferers of the debt, bankruptcy promises to cease all financial stress, and suggest a way out with less to pay, thus eliminate all debt issues.
Bankruptcy has a Host of Harmful Consequences
If you are just thinking about filing for bankruptcy, then consider the matter deeply, because there is much more to it than the benefits stated above, Bankruptcy also has a host of disadvantageous consequences. Once an entity begins filing for bankruptcy and thus declares the bankrupt is devoid of assets of value such as a house or other equity. Businesses could be sold, including machinery to repay creditors. Those declared bankrupts may have accommodation issues, with landlords not too delighted to accept them as tenants. Remember, bankruptcy, is a legal procedure, and therefore is recorded by bankruptcy law. Bankruptcy stays in files for years (see enterprise act for updates) and therefore negatively impacts financial transactions until the same time. The image is not very helpful in envisaged career moves as well. Employers too are apprehensive of those with bankruptcy records in their credit files. Of course, seeking and obtaining competitive credit terms can be just a dream after filing for bankruptcy.
Bank current accounts suddenly seem unobtainable. And after all this mess, there are certain debts which even bankruptcy cannot deal with and there are secured creditors, who have every right to their share, even after the bankruptcy has been declared.
Bankruptcy offers a chance to start again, but there may not be many resources to start again.
If you are in the process of having to file bankruptcy, and you are unsure of what you should do with your bankruptcy forms, then you should think about going to a bankruptcy attorney for advice. You will be able to get the forms needed, as well as help in filling them out. This way, you can be sure that you are filling out all the forms that you need to. The downside to this is you will need about $3000 to complete the entire process. One alternative to this is to hire an online bankruptcy service that will do basically the same thing as an attorney without the high costs or if with these services you will be able to get any information that you need regarding which of your belongings are exempt from the proceedings. If you are not sure which type of bankruptcy to file, you will also need to give advice as to whether Chapter 7 or Chapter 13 is best for you.
When you decide that filing bankruptcy is your only way out, you will have to collect all the forms specifically for your state. The bankruptcy forms you will need to fill out to complete your bankruptcy filing are as follows, voluntary petition bankruptcy, real property and personal property statements, list of exemptions, secured debts, priority debts and unsecured non-priority debts. You will be asked to provide contracts or lease verification and co-debtor information. Additionally, you will have to fill out detailed income and expense sheets and bankruptcy forms that list creditors. You will also be required to complete a statement of intention if you choose Chapter 7 protection.
A bankruptcy case is started by the filing of a petition. You must also file a statement of your assets and liabilities, and you must list all your creditors. If you choose to file a bankruptcy petition without the help of an attorney, you can obtain the required bankruptcy forms online. There is a range of filing fees for bankruptcy cases, depending on the chapter of the bankruptcy code under which you file. For information on the different chapters of the bankruptcy code, go to the US courts government website and go to the bankruptcy basics page which will have a large amount of information and descriptions of the codes.
If you’re trying to file bankruptcy on your own, one thing that you need to do is to make sure your forms are for your state. It is a fact that the laws are a little different in every state, so if you’re not careful you get into with the wrong form for your state. You should also check to make sure that you are actually getting legitimate and official bankruptcy forms, that way you will know that your filing was done correctly. Depending on where you look for your bankruptcy forms, you may be able to find some instructions that will help you figure out what information you need to get before you can fill out the bankruptcy forms. Make sure that you follow the instructions well, otherwise you might end up unable to file for bankruptcy, or you might not list the right assets or get the right things exempted from the bankruptcy proceedings.
Bankruptcy is a serious issue. In general bankruptcy is a legal action taken against the borrower who fails to repay the loan amount to his creditors. In this case the creditors have the authority to file a bankruptcy petition against the person. As we know that the bankruptcy filing remains in the credit record for at least 6 years hence it can have an effect on your future finances or financial decision which is one of the disadvantages of Bankruptcy. Moreover if you are filing for bankruptcy you will definitely lose your credit cards and nonessential belongings, you may not get finance for several years and most importantly you will face financial embarrassment.
We know that there are some benefits filing for bankruptcy but you also have a negative impact on your credit record. You will face difficulties obtaining credit in the future, and if you manage to get loans then the interest rate may be very high. For many people, the worst drawback of bankruptcy is the shame of having to declare themselves as bankrupts when carrying out certain dealings publicly.
Disadvantages of Bankruptcy
Here are some of the important drawbacks of bankruptcy:
• If you are a businessman or a business owner and have been declared as bankrupt then your business will get closed as soon as the bankruptcy order is made. And then your employees will also get dismissed.
• You will also have to submit all your valuable assets or belongings to the trustee.
• By becoming bankrupt your bank as well as building society accounts also gets closed and your credit cards will be taken away.
• Your service prospects will be prejudiced.
• You will not be given authority to hold any public offices.
• People who are in leasing process or willing to buy any product on hire, the product will be taken away and it will be returned to the actual owner.
• It can even hinder your future career prospects.
Hence, bankrupts can find it very hard to purchase or rent a house, and obtaining security clearance will not be easy for them. They may also find difficulty in acquiring insurance and purchasing a car on lease. This will lead to various other problems. So, it is advisable to avoid bankruptcy for a better and safer future. There are alternatives to Bankruptcy such as IVA’s and these options should be discussed with a Debt Management Company or Insolvency Practitioner who will be able to review your situation and advise you on the best debt solution.
Once a debtor has decided that he wants to file a bankruptcy petition, he will be required to present the court with various statements that will enable them to determine under which chapter the debtor should file. The debtor is also expected to present a list of all the creditors and a list of the assets that are under his name.
This way, the court will be able to weigh the options available and determine whether they are applicable in the case of that particular debtor. Once the debtor has filed a personal insolvency it is important that they understand what the court will do with the debts accumulated. They might wonder what will happen to the students loan, the tax or any other debt in their name.
In the past, before 1998 all student loans in the United States of America were discharged under the liquidation chapter. This would be done in case the first payment was expected to be paid seven years or more before the petition was filed. The new law allows student loans to be discharged under chapter 13. Personal bankruptcy filed under the wage earner chapter allows for the students loan to be consolidated along other outstanding balances.
It is also possible that the attorney handling the case to arrange for a free interest repayment plan. This way the debtor will be freed from harassment from student loan agencies. Tax relief can only be gotten if an individual files a personal bankruptcy petition more than three years after filing a timely truthful tax return. In case the court does not receive this in time, then you are advised to wait for two years to get the tax relief.
Just like there are two sides to every coin, there are advantages and disadvantages to bankruptcy, and in particular, personal insolvency. It is said to be an option to filing for insolvency, but be well advised, take note that it should only be considered when all else fails. You should then weigh the pros and the cons and see whether you really need to go the personal bankruptcy way.
Personal insolvency, like all other forms of relief from financial distress, puts you under a lot of scrutiny financially. Any firm you approach for lending will want to know about your credit history. At the mention of insolvency, many may shy away and not be willing to extend any loan facilities to you. If they do, they will charge you a high interest.
You may also receive a bankruptcy restriction order if the circumstances leading to your insolvency were activities of mere carelessness like gambling and speculation. If this happens, your name remains in the records for a period of 15 years. This will again affect your credit rating and most of your business transactions will be conducted through the bank.
With personal insolvency, you risk losing your family home. Remember that personal insolvency has been defined as a situation whereby you give up a portion of your property to get a discharge from your debts. Some of the assets you will have to give up are both the movable and immovable properties and this includes your own home. If your home is sold off and the proceeds are still not enough to cater for the debts, they will still come for more of your assets till you have nothing more that can be sold off.
You’ve got some serious debt problems. Take heart in the fact that a lot of people do these days. The key to getting out from under debt is to evaluate the situation you’re in, and then to decide if you’re willing to do what it takes to change it. Are you going to stop using the mall as your playground? If so then you have a chance to get out of debt without resorting to bankruptcy.
In fact there are many tactics to try before you even think of heading to a bankruptcy lawyer. Here are some important considerations and alternatives to help you avoid bankruptcy. New bankruptcy laws make it more difficult to file than it used to be.
From the period of 1994 to 2004, filing for bankruptcy has doubled. Bankruptcy filing has spun out of control with consumers being targeted with easy credit. This has become a major cause for bankruptcy.
What About The New Bankruptcy Laws?
There is now a new law for bankruptcy that was passed called the “Bankruptcy Abuse Prevention and Consumer Protection Act”. People struggling to pay their credit debts are now going to have to deal with this new bankruptcy law.
3 Effective Alternatives To Help Avoid Filing Bankruptcy
1. Contacting creditors is an alternative to bankruptcy. Instead of filing for bankruptcy, you work out payment options with your creditors. In many cases they are very willing to work with you. It’s to their advantage to keep you as a customer. The creditors know the alternatives for bankruptcy will bring them more profits if you don’t file for bankruptcy.
2. Getting a debt consolidation loan is a good alternative for bankruptcy. Financial services can combine all your debts into one loan payment every month. A consolidation loan as an alternative for bankruptcy, can help pay off debts. For bankruptcy consolidation loans, you can shop online for the best terms and rates. Lenders are very competitive to earn your business online.
3. You may also consider a debt workout for bankruptcy alternatives. With a debt workout, an attorney contacts your creditors and makes arrangements. In most cases the monthly payments will be less than if the credit account was settled in full. For some cases they want the payment in full, but over a longer period of time than originally stated on the credit agreement.
Filing Bankruptcy And How To Find A Good Lawyer
If you have decided there is no alternative to filing bankrupty,you may be asking yourself, “how do I find a good bankruptcy lawyer? The best way to find a good bankruptcy lawyer is through referrals. Family members and friends who filed bankruptcy in the past can refer you to a good bankruptcy lawyer. The yellow pages in a phone book is another great place to find reputable bankruptcy lawyers. Another invaluable place to find a good bankruptcy lawyer and services in on the Internet. When you search for a lawyer, try to find a lawyer that deals with your type of bankruptcy. You can get free advice with the first meeting.
What Will I Need For My Bankruptcy Lawyer?
With your first visit, it’s important to bring everything you can on the first consultation. You will need a list of all the creditors and how much you owe for your bankruptcy lawyer to consider. This includes any insurance, medical bills, auto loans, taxes, student loans and any personal loans. Your bankruptcy lawyer can give you the advice you need with this important information. This will make the filing process easier if you do decide to file bankruptcy.
If you’re not going to be able to change your behavior enough to get your debts under control, then you may, at some time, have to resort to bankruptcy.
Carmen Dellutri was recently asked several questions by the News Press as part of their ongoing series Road To Recovery. You will have to wait about 30 seconds to get through the preliminaries but the information provided should be useful to many of you. Or you can sign up for one of our blogs and have our blogs e-mailed to you directly.
