Thursday, May 15th, 2008
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:
* What type of bankruptcy is right for me?
Keep in mind that the Federal court system in the United States has eight different types of bankruptcy filing available. Of course the two most popular are Chapter 13 and Chapter 7, but there are a variety of different details and rules that apply to each type of filing. A good bankruptcy attorney will be able to sift through your financial difficulties and recommend the best type of bankruptcy for you.
* How do I file for bankruptcy?
Filing for bankruptcy will need to be done in the state where you currently live. If you plan to remain represented by a bankruptcy attorney, their legal staff can help to prepare all of the paperwork that is necessary to present to the court system. If you simply want to use the bankruptcy attorney for a consultation, make sure you don’t leave the attorney’s office without the necessary paperwork to begin the bankruptcy process.
* What type of fees will I owe?
This is important to ask in regards to your bankruptcy attorney as well as the court system. Most bankruptcy attorneys will give a free consultation but any remaining time on the proceeding or in court will cost a fee. Some attorneys charge by the hour while others charge a flat fee for bankruptcy services. As well, the court systems usually charge a court fee connected with filing the case, administrative charges and extra Chapter 7 fees to pay a trustee in charge of the bankrupt account.
* Where do I go to file my bankruptcy claim?
Bankruptcy cases are handled by the federal court systems in every state. This usually means that the bankrupt party will need to give the bankruptcy paperwork to the state courthouse, usually in a state’s capitol city. Your bankruptcy attorney should know the address and rules regarding whether or not paperwork can be sent by mail or if paperwork needs to be given in person.
* What happens after filing for bankruptcy?
Immediately after filing for bankruptcy, the court system will send out notification to creditors of the pending bankruptcy case. From this point on, creditors are considered to have a “restraining order” by the debtor and are not allowed to contact the debtor requesting payment. Depending on the type of bankruptcy, a hearing will be scheduled and deadlines will be set for creditors to file a claim and attend the hearing. Of course, all of the proceedings from here are dependent on the type of bankruptcy filed, so it is important to be in contact with your bankruptcy attorney who can more readily answer these questions.
Credit: Ian W Anderson of Bankruptcy 411, the bankruptcy information site. For more bankruptcy information and articles like this one visit: Bankruptcy Attorney
Posted in Attorney, Bankruptcy, Questions | No Comments »
Sunday, May 4th, 2008
If you think that being bankrupt is the worst thing that could happen to you than think again! Yes you are right…Worst is yet to come, but of course you can control and eliminate that worst scenario by simply making correct decisions! Hiring a wrong attorney for filing your bankruptcy can be like a nightmare coming true!
So it is better that before hiring you do some research and make sure that you find an attorney who could really show you way attorney who could really show you way out from the bankruptcy mess!
Facts about selecting the Attorneys:
As most of the attorneys are usually overworked, they aren’t able to give ear to full details of your case. You may feel that your attorney isn’t pursuing your case the way you want him to pursue and ultimately you will feel irritated.
Many of the attorneys aren’t qualified enough to lead your bankruptcy case. So such attorneys don’t fulfill your expectations. Certificates are important indicators to judge whether the attorney is qualified enough or not.
Asking from friends won’t take you to any good lawyer, unless your friend has gone through filing for bankruptcy but it may be useful to take advice from legal professionals.
You can even go to a bankruptcy court and observe the attorneys there. Maybe during your observation, you will find some attorneys who are good enough for you. Once you find the attorney, you can satisfy yourself completely by asking him the right questions. A short conversation can tell you a lot about the attorney you have chosen. You can ask him about his expertise and his working and consultation hours. After conversation, you can evaluate the attorney to see if that attorney is really right for you or not!
Once you select the attorney, you must discuss with him what type of bankruptcy should you file? There are eight different types for filing bankruptcy. You attorney can best point out which type suits you for filing bankruptcy.
Secondly, you need to ask him how you can file for bankruptcy. You have to file for your bankruptcy in the state where you are living. The Attorney can prepare the necessary paperwork that would be needed to present to the courts.
Thirdly, you must know the fees that are involved in the filing for bankruptcy. The total fees will comprise of the attorney’s fees plus the court fees that you need to submit to file for your bankruptcy.
Fourth, you must know where you should file your bankruptcy claim. You need to consult your attorney on how to get there and what documentation is required. Finally you must know the after effects of filing for bankruptcy. As soon as you file for bankruptcy, creditors will receive notification from the courts and will not be allowed to contact debtor for payments. A hearing in court will be set. The case will proceed depending on type of bankruptcy filed.
Remember that this is your fight, so you have to be really involved in it and follow the case. You just cannot leave everything on the attorney!
Are you looking for more thorough information on filing for bankruptcy? Or have the idea of filing for bankruptcy ever crossed your mind? If so feel free to visit our debt consolidation blog for more information on the procedures and what you must know before filing.
Posted in Attorney, Bankruptcy, Questions | No Comments »
Saturday, May 3rd, 2008
Bankruptcy is a lawful phrase that most of us have heard quite often. Many of us usually think that a someone has happened to be broke when they are bankrupt, yet that is frequently not nearly close to the truth. We have this predetermined idea that in order for us to be bankrupt, we are careless and lazy. In the actual world, it can be one of the most accountable things that anyone can decide to do when it is really required. It is not a simple choice for any of us to choose, but it can be the most suitable for some situations.
When you decide to declare bankruptcy, what you will actually be saying to your creditors is that you have no way to repay all your debt. You will have to announce bankruptcy through your attorney. If it happens that your condition is a legitimate one, you stand a chance to be freed of your debt. All the creditors that you owe money will have no right asking for it any more. This can sound grand at first but it does have its downsides as well.
You should know one thing though; having a thing like a bankruptcy apearinging on your credit report for the following 6 to 10 years is not going to be beneficial to you in any way. It will show there in big, bold, red writing on your credit report for a long, long period of time. Because of bankruptcy, you will have difficulty obtaining credit cards, loans or making big purchases even though, these things may have pushed you to declare bankruptcy in the beginning.
If you can show that you are making some real effort with your monetary condition, you could find it not as much of difficulty to obtain financing but not very much though. Nevertheless, it is an excellent way to take monetary responsibility of your own life. Besides that, you will feel a very large weight being lifted off your back.
Credit card companies and other creditors where you owe money actually do have the right to say NO to your bankruptcy claim. There are certain circumstances when they will very likely do just that. For example if you have just spent money on a vacation, purchased something expensive or used a credit card when out of work, or spent money subsequent to consulting with an attorney, you will appear distrustful in creditors eyes and will most likely be denied. It is always wise to seek advice from an attorney or debt counselor prior to taking the plunge and declaring bankruptcy.
At Debt-Free-Family we are dedicated to help you get out of debt, avoid bankruptcy and enjoy a debt free life. Get all the answers on your Bankruptcy Questions
Posted in Answers, Bankruptcy, Questions | No Comments »
Friday, May 2nd, 2008
Chapter 7 is often times called a liquidation. It is basically the quickest form of bankruptcy that is available to married couples, corporations, and partnerships. Many have questions about Chapter 7. In this article we will be covering questions about Chapter 7 bankruptcy FAQ’s that you may encounter prior to filing for your bankruptcy in court.
Who is eligible for Chapter 7 bankruptcy?
Starting on October 17, 2005 you must qualify for Chapter 7 bankruptcy through what they call a means test. It is now up to the Internal Revenue Service who can or cannot file for bankruptcy. In this process your income and expenses will be examined at way to compare your standards by the IRS.
In the event that you earn much less than the median for families of your size in your state, you can automatically file for Chapter 7. If your income in the last six months is greater than the mean, can you can afford at least $6,000 over five years and a $100 a month forget that you’re not allowed to file for Chapter 7, but you have to file for Chapter 13.
Under the new law you must receive approved credit counseling and budget analysis at your own expense prior to filing for bankruptcy. Counseling can be used to address most of the means tests all the regulations require prior to filing. There are also tests on the Internet that you can use to assess your means prior to filing for Chapter 7.
How I file for Chapter 7?
The first step in filing Chapter 7 starts for the filing a petition. You must complete all the bankruptcy forms and list all your creditors in the list and the amount of money you owe each one of them. In addition, you must list of current income, as well as a list of all your property in a detailed list of all your living expenses.
Immediately after you file for bankruptcy your creditors are prevented from trying to collect their debt. This is called an automatic stay. The stay is created to give you a small break from litigation while the court can figure out what debts might be exempt.
After you file, it is up to the creditors to show the bankruptcy judge that there is cause for the creditor to be allowed to continue with their collection action.
What debts can be discharged in Chapter 7?
The types of debts they can be dis chargeable in a Chapter 7 bankruptcy can be credit card debt, repossession deficiencies, accident claims, judgments, business debts, leases, medical claims, or personal loans. Some of the other items that are not dis chargeable through Chapter 7 bankruptcy our recent taxes owed, student loans, child and family support, criminal fines or any debts that were from a prior bankruptcy where debtor was denied discharge.
In closing, before you decide whether bankruptcy is the right choice for you, make sure you take your time and assess all the financial impacts such a decision will have in to your future.
Posted in Bankruptcy, Questions | No Comments »
Thursday, May 1st, 2008
When it comes to bankruptcy, the general perception of it is that it’s a bad thing, which is not an unexpected reaction. Bankruptcy has severe consequences when it comes to your credit, no doubt, but it is also the lifeline that can rescue you from the depths of that, which we can not always prevent, debt. The intention of this article is not to promote bankruptcy or raise the common perception to a more positive level, but it has its benefits and they’re often misunderstood. So aside from the common assumptions of mostly negative points about bankruptcy, there are other points that need to be cleared up and understood.
Who can file for bankruptcy? - Any one or any company, corporation, or business unit who can no longer afford to pay their creditors. There are different chapters in the US bankruptcy code that will cover just about everyone. The most filed is chapter 7, which is what most individuals will file. This chapter allows you to discharge most of your debts without any further obligation to repay them. Chapter 13 allows individuals to reach new terms of repayment with their creditors rather than discharge the debt. Chapter 11 will give partnerships, companies and corporations, similar benefits, where the debt is not discharged either but re-arranged under new terms of repayment, that allow the debtor to make more manageable payments for a period of up to 5 years.
Will I be able to get credit after bankruptcy? - Another common perception about bankruptcy is that if you file you won’t qualify for credit again, but you can in fact get a credit card or loan after bankruptcy. It is often recommended in order to start building a history of positive credit again. There are options in which you could use a prepaid credit card, that only allows you to spend what you deposit in your account so there’s no way to over charge. You also can get a regular credit card, but more than likely it’ll be from a sub-prime lender who will almost always impose a much higher interest rate on your card. So it’s an option but just remember that it will cost you more.
Bankruptcy is a private matter - Actually no, bankruptcy is very much public record, and anyone wanting to find out if you have filed for bankruptcy, can find out. The courts really make this easy through a program called Pacer (http://pacer.psc.uscourts.gov/), which allows pretty much anyone to access court records for a fee. This is how you’ll often end up getting offers from local car dealers. They know that in bankruptcy cases people often liquidate assets to repay creditors, so they’re betting you had to surrender your vehicle and are in need of transportation. Often you may hear them say that they don’t care about your bad credit, but be careful with those sub-prime rates you are likely to get if you have to finance the purchase. You’ll also get lots of offers from law firms and agencies that “specialize” in credit repair after bankruptcy. This one you must consider carefully because credit repair does not apply to everyone.
My credit can be fixed after bankruptcy - This really depends on each situation. There are legitimate agencies that can really help if you have real credit inaccuracies on your credit report. But that won’t be true for everyone. Keep in mind that your bankruptcy case will be an accurate entry, so removing it from your credit report is not likely to happen by anyone’s efforts. However, real inaccuracies like debts that should be labeled “Included in bankruptcy” and are not; can be targeted for repair. It’s important that you pay close attention and research a company that “guarantees” results. You have to ask yourself, what exactly can these agencies tell the credit bureaus that will make them reverse my negative entries or that of my bankruptcy case? It sounds like a good idea, and perhaps that’s the reason why there is so much fraud in credit repair. The same goes for those agencies that tell you that instead of bankruptcy you should go with their programs that promise to pay off your debts in only a few years for pennies on the dollar. They charge high commissions and may only help you sink yourself into more debt. Research any offers carefully in these two areas before you begin using their services. The Better Business Bureau is a great place to start your search.
Filing bankruptcy gets rid of all my debts - Not all of them. Bankruptcy courts are only concerned with your secured and unsecured debt. Under chapter 7 all of your unsecured debt will be discharged for good. Secured debt on the other hand, you’ll need to continue paying for or surrender the collateral upon discharge. However, things like debts from lawsuits against you, child support, alimony, student loans, state taxes and federal taxes will not be discharged. The federal government offers a benefit that only certain people will qualify for. If you have a federal tax bill that’s older than 3 years from the time you file your bankruptcy petition, then that tax bill may be discharged. Check with the IRS yourself to find out if you qualify.
Bankruptcy will take away all my belongings - Not really, when you do file for bankruptcy, you will have a trustee assigned to your case. One of the functions the trustee has is to find assets he can liquidate to pay your creditors; this is especially true in chapter 7 files. However, most people who file chapter 7 are usually already flat broke and have very few assets worth liquidating. For example if your car is still new and it’s paid off, it could be seen as an asset that can be liquidated. But if it’s a few years old and has moderate to high mileage, the trustee may consider it exempt. Stocks, bonds and other paper assets can also be liquidated, but your individual retirement account is exempt. You should check with your account administrator to make sure there aren’t any clauses in your savings or retirement plan that may make it non-exempt. All your other possessions, such as your kitchen goods and appliances, your wardrobe, and your trinket collection will more than likely be exempt as well. What the trustee will be looking for is assets such as high end jewelry, rare collectibles or specialized items and top-shelf electronics that are worth his or her time. If you don’t own any of these don’t sweat this one too much.
I can max out my credit cards before filing - NO! And I mean no, do not make this mistake. The other function the trustee has in your case is to make sure that you are in fact in real financial hardship. Your credit card’s spending record for the last two years will be analyzed and you will be questioned during your court hearing about expenses, donations or any transfer of assets. If your credit charge history shows things like iPods, computers, vacations, bar tabs or any other type of leisure items, it will be very hard to convince the court that your case is legit. Worse yet, you could be found guilty of fraud and find yourself in a lot of trouble. So don’t do it. The general rule is to stop using your credit cards at least 90 days before you file. You should however give yourself a bigger gap and use your credit card only for necessities if you must use it.
How often can I file bankruptcy? - You can only file once every ten years. But don’t go making a habit of this, a lot of people do this and it’s not a good way to live. You should be learning from this experience not repeating it. You should be doing all you can to get your credit back to a healthier state which will not be easy. It will take years and lots of effort on your part so the sooner you start the sooner the healing begins.
I sincerely hope this has been helpful to you. If bankruptcy is something you are considering you should always consider alternatives and spend some time reading up on the subject. Bankruptcy can be complex and straight answers are not always easy to find. To make your finding answers a little easier, use the ” ” (double quotes)in your searches, for example: “how to file bankruptcy.” This will tell the search engine that you’re only interested in viewing documents that contain this exact phrase and in that exact order.
If you have serious concerns about bankruptcy, credit repair or identity theft, please visit these links [http://www.bankruptcyahead.com/chapter-7/]Chapter 7, and [http://www.bankruptcyahead.com/identity-theft/]Identity theft, for more information on these subjects. When you run into financial hardship and begin to consider filing for bankruptcy, you will need straight forward answers on how the process works and how to prepare. Learn the facts before filing chapter 7, chapter 13, or chapter 11. This is always free bankruptcy information. Please visit me at http://www.bankruptcyahead.com
Bankruptcy - Common Questions And Myths
By [http://ezinearticles.com/?expert=Charles_Perez]Charles Perez
Article Source: http://EzineArticles.com/?expert=Charles_Perez http://EzineArticles.com/?Bankruptcy—Common-Questions-And-Myths&id=1106747
Posted in Bankruptcy, Questions | No Comments »
