Bankruptcy Questions Answered

Carmen VJ asked:


Some people are in financial trouble. The creditors will not stop calling you. Your debts are piling up. You are at the end of your rope. You are in a panic. What to do now. Should I file for personal bankruptcy?

The benefits of filing for personal bankruptcy will allow you to re-establish and get good credit again. Getting a discharge when filing bankruptcy can end the harassment and marital stress. Personal bankruptcy will put a stop to all creditors, garnishments, foreclosure, evictions, etc. Filing for bankruptcy can also protect some of your property so it will not be taken over by your creditors.

Now of course, there is a flip side to everything. Some reasons in not to file bankruptcy and the disadvantages are, if you really do not have large debts, then why file. If you have property that is already exempt, then why file. If you have any assets that are way over the exemption limits, this will be turned over the bankruptcy trustee and sold to pay off your creditors. Look into this extremely well and consult with a lawyer before your filing. You have to also remember that a bankruptcy filing can stay on your credit report for 10 years. Sometimes filing for bankruptcy may not work in your favor. You might loose property or you may have some major debt that will not be discharge for one reason or another. Consult with a lawyer first before filing bankruptcy to see if this going to be worth it or not.

If you do decide to file for personal bankruptcy, this will be a very important decision you will have to make. Finding a good lawyer to guide you through this will be best. You should get guidance and have your questions answered before deciding to file for personal bankruptcy. Make sure to keep and get your records in order without making any mistakes or errors. Make sure you find a lawyer that you are comfortable with and one that has your best interest at heart.
Look to your employer to see if their is some kind of employee assistance program available. Their are also some public funded legal services available that do not charge attorney fees for personal bankruptcy. Do your search on this.

Make sure you list all of your creditors. If you forget to list any creditors, then the ones you did not list can still come after you to pay up even after filing bankruptcy. Anyone and everyone you co-signed with or if they have co-signed with you, make sure these debts are listed on your list of debts.

There has been many changes in the law when it comes to filing bankruptcy. It has been made harder for individuals to file under Chapter 7. Filing Chapter 7 is alot easier in clearing your debt in order to get a fresh start. The system has made it harder to file Chapter 7. You may end up having to file Chapter 13 because this chapter will require you to repay at least half of your debt. And the law wants it this way. Do your research very well when it comes to filing and make sure you talk to a good lawyer about this.

At the end of your filing usually 3 months after, you will be able to start a new credit profile. Just make sure you do not come in contact with your old creditors. They could get you to sign a reaffirmation of your old debt that has already been discharged when you first filed bankruptcy. Be careful and always read everything thoroughly.

You will soon have to make the decision to take some kind of action. Before you decide to file, maybe you should look into getting help from a local financial counseling program.You can also look into finding a experienced credit counselor who is experienced in negotiating with creditors. You have some credit counselors out there who are very good at this. Do your research in finding these kind excellent credit counselors and who they are. Investigate their services and their credentials .Consider also contacting the Better Business Bureau by calling or going online.

Filing for bankruptcy which is provided for in the Constitution is your right under the law. It is intended to provide a fresh start for a individual. Big corporations and celebrities file for bankruptcy all the time. Your lawyer should not be too busy to meet with you to discuss your options here. Get consultation from a lawyer so you will be more equip to make that final decision of whether file for personal bankruptcy or not.



Bankruptcy Questions

The CreditLawGroup asked:


Bankruptcy is an individual’s legally declared inability to pay back debt owed to creditors. There are several different types of bankruptcies. Most are voluntary where the individual files themselves because they are no longer able to pay back debts that they owe. Another type is involuntary bankruptcy where the creditors file a petition against the debtor to try and receive some of the money owed to them.

What are the different types of bankruptcies?
There are six types of bankruptcies in United States law and they are broken into six different chapters (7, 9, 11, 12, 13, and 15). The most common chapters filed are chapters 7 & 13. Almost 65% of all bankruptcies filed are chapter 7.

What is the outcome of a bankruptcy?

In most cases, filing for bankruptcy will stop creditors from calling, at least until all your debts are sorted out in accordance with the law. Most times filing for bankruptcy can relieve an individual from temporarily getting their home foreclosed, getting wages garnished and getting automobiles repossessed. Chapter 7 bankruptcy is the most common and it allows you to discharge most of your debts with your creditors. However, you have to liquidate your assets to be auctioned off. Some things you normally are allowed to keep are: your primary residence, car, clothing, work related tools, and basically necessities. Chapter 13 is basically a court organized payment plan and usually does not require you to liquidate your assets.

How does bankruptcy affect my credit and credit score?

Bankruptcy does not look very favorable on your credit report and should be considered a last resort for overcoming your debt. In most situations, bankruptcy will damage your credit rating so severely that you may not be get approval for credit for many years. It is one of the few items that will stay on your credit report for 10 years. All other items such as late payments and delinquent accounts stay on your credit report for only 7 years. Having a bankruptcy on your credit report for 10 years will most often than not prove to be a severe burden for most people. The severity of the damage a bankruptcy does to your credit score is right up there with foreclosure.

How we can help you

CreditLawGroup.com provides low cost legal representation in disputing inaccurate, incorrect or unverifiable information contained on credit reports from the three major credit bureaus, Equifax®, Experian® and TransUnion® and their affiliates. You can monitor your progress online, as well as speak to your Paralegal whenever needed by phone or email. We have excellent customer service, and are always there to meet your needs! Speak to a credit repair analyst today!



Bankruptcy Questions

Jon Arnold asked:


Is there a bright side to bankruptcy? Yes there is, although bankruptcy should still be considered your option of last resort, and the bankruptcy option only employed after you have thoroughly investigated all other options and alternatives. There are many downsides to filing bankruptcy, not the least of which is that this will become a huge red flag on your credit report for the next seven to ten years.
But sometimes bankruptcy is the best option in a given situation and if that is the case, you need to understand that there are bright sides to bankruptcy. Keep in mind that, especially with the new bankruptcy laws, one cannot file for bankruptcy on a whim, nor can it be done if you have already declared bankruptcy in recent years. The bankruptcy court needs to APPROVE your bankruptcy before things can move forward, and that approval is not nearly as automatic as it once was. Yes, after looking in your particular financial situation in a great amount of detail, the court may actually decide that you are not eligible to file bankruptcy, and you have to seek another option out of your financial difficulties.

One of the bright sides of bankruptcy, if you are approved to be able to file, is that the harassing phone calls from your creditors come to a screeching halt. But here is where it gets tricky because you also have some responsibilities here. After you have filed your bankruptcy petition and it is approved by the bankruptcy court, knowledge of this fact is not known to your creditors automatically. So the next time they call after your bankruptcy has been approved, keep track of the information. Write down the date and time of the call, which creditor it is, the name of the collections agency, and the name of the individual calling. Let them know that you have filed bankruptcy. By federal law, that stops calls from that creditor.

The reason for keeping a notebook handy where you record this information is so that if a creditor calls again who has already been told that you have filed bankruptcy, again write down the name, phone number, name of the person and name of the creditor as well as date and time of the call. With that information in hand, you can inform the creditor that they are now in violation of federal law. The ball is now in your court. There have been cases where a creditor continued to call after being informed that you had declared bankruptcy, and as a result, the consumer filed a countersuit against that creditor for their continued calls, and the debt from that creditor was wiped clean!

Another bright side to bankruptcy is your potential ability to start over with a clean slate and no financial obligations. Getting new credit is going to be difficult and you will have to spend time getting things like a personal loan, car loan, or even a mortgage, but it can be done. But since your credit report will show your bankruptcy filing clearly, be aware that it will be a longer row to hoe than it previously was.

If you file bankruptcy under the Chapter 7 regulations, you will need to demonstrate and prove that you are unable to pay even a portion of your outstanding debts. If this can be proven to the court’s satisfaction, your slate will be wiped clean.

The decision to file bankruptcy is not an easy one to make, and again, you are encouraged to examine all your options and alternatives. But if bankruptcy is your most viable option, make sure you understand the bankruptcy laws and have a bankruptcy attorney who understands them, because you don’t want to risk making a bad situation worse.



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sandhsand asked:


This month makes 10 full years since I filed full bankruptcy. What steps can I take now to get it off my record?

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LATANYA N asked:


I filed in 2001. I disputed my bankruptcy and a lien with all 3 credit bureaus.
Transunion removed the lien not the bankruptcy
Equifax removed the bankruptcy and not the lien
Experian wouldn’t remove neither one.

Now i know once you dispute an item the creditor has 30 days to respond or its removed from your file how can i get the others removed or do I just have to wait it out

If one bureau remove it dont the others have too.

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T.J asked:


I filed for bankruptcy (chapter 7) a year ago and successfully had it discharged. I’m in teh process of rebuilding my credit and I pulled my credit report and all the creditors included in the bankruptcy have my accounts listed as “bankruptcy” which is destroying my credit score. Is there any way I can have those accounts removed since they are all closed and were included with the bankruptcy? Does anyone have any tips on rebuilding my credit? My score is currently 530 and I would like to raise it to the average but it seems like it hasn’t been going anywhere. What can I do?

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ariel_okinawa asked:


In other words, my bankruptcy was discharged at the end of March, when will the credit report relect which accounts were thrown out in the bankruptcy?

Thanks!
DAS: I know that the items stay on the credit report, but they will have a note indicating that the were included in the bankruptcy so that any future creditors can see that the debt is not outstanding.

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Resolve Legal asked:


Like many people, you may be reluctant to file for bankruptcy even though a Washington bankruptcy lawyer has advised you that bankruptcy is the best – maybe the only — solution to your financial problems. Your resistance is understandable.

You may feel embarrassed – you should be in control of your finances, but you’re not. And there’s a certain stigma attached to bankruptcy, whether you go through the process yourself or are represented by a Washington bankruptcy lawyer. The filing is a public admission that you are unable to pay your debts. Bankruptcy also carries with it several unpleasant consequences, including the following:

• For 10 years, the bankruptcy will be reflected on your credit report (and there’s nothing a Washington bankruptcy lawyer can do to change that).

• You can obtain credit after bankruptcy, but it will cost you more.

• Though it’s highly unlikely you’ll be fired from a job because you declare bankruptcy, there are some jobs and licenses you can’t obtain because of bankruptcy. For example, some professions – stock broker is one — don’t allow a bankrupt to be employed in certain positions. These positions usually involve trust and money. (If you’re considering bankruptcy, a Washington bankruptcy lawyer can advise you about bankruptcy’s impact on your employment.)

• There are restrictions on how soon you can re-file for bankruptcy. For example, if you file under Chapter 7, you can’t file again under that chapter for eight years. (A Washington bankruptcy lawyer can explain these timelines to you.).

• Bankruptcy is listed in the top five life-altering negative events, along with divorce, severe illness, disability and loss of a loved one.

While these consequences are unpleasant, there’s another side to bankruptcy, as a Washington bankruptcy lawyer can explain to you. The right to file for bankruptcy is in the U.S. Constitution. Underlying this right is the idea that those in financial trouble deserve the chance for a fresh start. As every Washington bankruptcy lawyer is aware, some people abuse the bankruptcy system. However, the vast majority of people, whether they represent themselves or hire a Washington bankruptcy lawyer, have a legitimate reason for choosing bankruptcy. And often, as every Washington bankruptcy lawyer knows, those reasons are divorce and medical expenses.

It often helps to discuss feelings about bankruptcy with a Washington bankruptcy lawyer. The bottom line is that you shouldn’t feel bad about filing for bankruptcy. It’s your right. Filing lets you take control of your financial life. Filing makes you feel better about your situation. Filing amounts to a commitment to fix the problem and start fresh. At Resolve Legal, we can help you assess whether bankruptcy is right for you. Find out how, and get started on the road to financial recovery.



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Cornie Herring asked:


Bankruptcy has become a chosen route for more than 1.8 millions Americans to get a debt relief from their overwhelming debt problem, according to the reports found. However, filing for bankruptcy should be avoided seeing it drawbacks that may cause bad impact on your credit history. You should not choose to file a bankruptcy just get a debt relief before you explore other alternative options. There might be a solution to your debt problem other than bankruptcy filing.

Drawbacks of Bankruptcy

Why do you need to avoid bankruptcy? If you have read some of debt relief guides, you will find that most of these guides don’t offer bankruptcy as the solution for debt relief. This is because its drawbacks follow you for years. A bankruptcy filing will be remarked in your credit report for 10 years. During this time, you may find hard to obtain loans, mortgages, and credit cards. If you really need a credit during the 10-year period, you may need to go for secured loans which may be more expensive to acquire. Even you are offered with an unsecured loan, you need to pay much higher interest rate than those offered to people with clean credit history; this is to compensate the risk faced by the lenders.

Obtaining attractive low interest-rate unsecured credit card may be impossible because most credit card companies reject applicants who have filed a bankruptcy. You may only be able to get secured credit card which the credit limit depends on the amount you deposited to secure the card. Moreover, secured credit card normally has higher annual fee and the issuer may charge an application fee.

In filing a bankruptcy, all your assets may need to be liquidized for debt payment. However, under the Federal law, some of your assets needed to support you and your dependents can be exempted. Such exemptions may include a portion of your IRA account and other retirement accounts which are subjected in case by case basis. Basically, you will lose most of your asset if you choose bankruptcy as your debt relief solution.

Alternatives to Bankruptcy

Since bankruptcy should be avoided, then what are the alternative options to resolve your debt problem? There are a few options to go for in getting a solution to resolve your debt problem. If you are out of your mind and do not know what can be done other than bankruptcy filing, then try to approach a credit counseling agency and get them to propose to you a few potential debt relief options that tailors to your financial situation.

Alternatively, you can also try to negotiate a payment plan with your creditors. Besides that, you can also get helps from professional debt-negotiation company to perform the negotiation on behalf of you. Most creditors would prefer to get some of the money you owe them rather than get nothing if you file a bankruptcy to erase the entire debt. So, your creditors may accept what you may offer to them through the negotiation process.

Summary

Bankruptcy filing is an extreme option that may seriously impact your future credit worthiness. You should avoid this option by exploring other alternatives for a better debt relief solution.



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Bryan Burbank asked:


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.



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