Bankruptcy Questions Answered

yellowpages asked:

If you’re struggling with debt, New Jersey attorney William H. Oliver, Jr. can help. With offices in Neptune and Toms River, he helps clients find the best way out of debt, including filing for bankruptcy. To discuss all aspects of mortgage foreclosures, bankruptcy laws and taxes, contact his law firm today. Visit us www.yellowpages.com

bankruptcyflorida asked:

thedebtlawyers.com posted this video about bankruptcy in Florida. The comments made in this video apply only to Florida bankruptcy. We are not giving legal advice and you should only get advice in person from a Florida bankruptcy attorney. Many people ask if they will ever be able to own anything again after filing for a Florida bankruptcy and this is not a problem. The bankruptcy laws are designed to give you a fresh start.

experianUS asked:

Learn the truth behind filing for bankruptcy and the consequences it can have on your credit history from Maxine Sweet, Vice President of Public Education for Experian. For more information, visit: www.experian.com

eHow asked:

Anyone in the United States can file for bankruptcy, but it is not an easy process and generally requires the assistance of a specialized lawyer. Decide whether filing for bankruptcy is the best way to deal with debt usingadvice from a family lawyer in this free video on bankruptcy. Expert: Robert Todd Bio: Robert Todd is the managing partner and president of Robert M. Todd, PA and Family Law Solutions. Filmmaker: Christopher Rokosz

eHow asked:

Pay off credit card bills without filing for bankruptcy by consolidating credit debt or negotiating with individual credit card companies to obtain a lower rate. Consult with a financial adviser to discuss playing off large amounts of debt without bankruptcy with insight from a family lawyer in this free video on debt. Expert: Robert Todd Bio: Robert Todd is the managing partner and president of Robert M. Todd, PA and Family Law Solutions. Filmmaker: Christopher Rokosz

Harrine E. Freeman asked:


One of the biggest myths is that if you file for bankruptcy you will be financially free and no longer have debt problems. Wrong! Bankruptcy is not the cure-all for getting out of debt. Over 1 million Americans file for bankruptcy every year. One in every 73 households files for bankruptcy. In 2005, 2 million Americans filed for personal bankruptcies.

Millions of Americans are in debt and get in debt every year. Many people think that filing for bankruptcy will solve all of their debt problems. On the surface it seems that if you file for bankruptcy all of your debt will be eliminated and you can start with a clean slate. Actually it is not that simple.

To file for personal bankruptcy you must reside in a state for 90 days prior to filing and have a total unsecured debt less than $290,525 or secured debt less than $871,550. The new bankruptcy law that went into effect in October 2005 states that debtors (consumers) who earn less than the median income in their state - about 80 percent of those who file for bankruptcy - still would be entitled to file under Chapter 7. But those who earn more than that and who have the ability to repay at least $6,000 over five years would have to file under Chapter 13, which requires a repayment plan.

Although it is true that after you file for bankruptcy you can purchase a house or a car, what people don’t realize it that the interest rate that you will be given will be very high. Also, based on the new bankruptcy law implemented in October 2005, it is harder to file for bankruptcy and depending on the type of bankruptcy granted, it will remain on your credit report for seven to ten years. This greatly lowers your credit score and it will probably take about 3 to 5 years before you score increases due to the bankruptcy filed, and provided that you don’t get into any further debt.

When you have financial problems and can’t see any way out, bankruptcy looks like the best option, but there are many other options available to you. If you have a house you can take out an equity loan to pay your debts, you can reduce your expenses and create a budget for yourself, you can get a part-time job, go to school and further your education and get additional training related to your particular job, setup payment plans with your creditors or sell some of your assets if you have any.

The best consumer is an educated consumer. If you find yourself in financial troubles, the first and best thing to do is do research and find out the options available to you. Next you want to identify your assets and liabilities. Your assets are anything that you do not owe money on such as stocks, bonds, 401(k), retirement plans, etc. Your liabilities are anything you owe money on such a house, investment property, boat, car, etc. This will help to determine if you have any assets that can be sold or money borrowed against to pay off your debts. Next you need to create a budget for yourself to identify how much money you have coming in (how much you get paid each week) and how much money you have going out (how much you pay each month in bills and expenses).

If you have very little or no assets then you will need to do some quick fixes such as cutting back on expenses including: bringing your lunch to work, carpooling, catching the subway or bus to work, riding your bike or motorcycle to work, eating breakfast at home, renting videos instead of going to the movies or cutting back on how often you go to the movies, canceling your pager or cell phone service or switching to the cheapest plan available.

These things will provide extra money in a short period of time until you develop a plan for paying off your bills. If you have researched all options that are available to you and are unable to use any of them then bankruptcy should be your last resort, not your first option.

Getting in debt is the worst place to be but with time you can overcome this obstacle. Think long and hard before filing for bankruptcy. It may not be worth the headache.



Bankruptcy Questions

Chris M. Alexander asked:


New Jersey Debt Consolidation - Make a wise choice!

If you are not interested in filing for bankruptcy then you need to go for a New Jersey debt consolidation. The good thing about New Jersey debt consolidation is that it gives you a chance to repay all your debts at your own pace. To become debt free, you will get plenty of choices. Before selecting any New Jersey debt consolidation program, it is better that you check the track record of program first.

Recent study has come to the conclusion that New Jersey debt consolidation is a much better option in comparison to a debt consolidation loan. In debt consolidation loan, you can easily lose your collateral if you are not able to repay the loan amount on time. By hiring debt Consolidation Company in New Jersey, you will get a direct access to financial tools and informational resources that are quite important in the debt consolidation.

Bankruptcy

Going for bankruptcy in the state of New Jersey is not a good choice as it damages your credit score. Further, it can also have an impact on your employment. There are lots of companies operating in the New Jersey that do not take the services of individuals which are filing for bankruptcy as filing for bankruptcy is a clear sign that you are not good in money management. In order to improve your credit rating, start saving money in your bank account on a monthly basis. Apart from that, pay all your dues on time as this will create a positive impression on the mind of credit reporting agencies. As credit reporting agencies get impressed with your financial condition, there is going to be quite a bit of improvement in your credit score.

Debt Counseling

Debt counseling can play a vital part in making sure that you do not go bankrupt. Debt counselor is aware of various methods through which you can get rid of all your previous debts. With regard to New Jersey debt consolidation, you must attend a free debt counseling session organized by the debt consolidation companies in New Jersey. Rather than doing debt consolidation on your own, it is recommended that you take the help of a debt consolidation company that is operating in New Jersey. The most important thing about debt consolidation companies is that they are going to assist you in designing a repayment schedule. With right kind of repayment schedule, you do not need to worry about paying any late fee to your creditors.

Statue of limitations on Debt in New Jersey

The statue of limitations on oral and written agreements is six years while for open ended accounts it is three years.



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Esteri Maina asked:


Declaring bankruptcy is just one of the many methods that victims of extreme debts could openly make use of to survive the collections efforts from the creditors.

So many people not at all desire this method, for it is like shouting to the entire world that you are completely ruined economically.

However, those who file for bankruptcy are normally after the court ruling that discharges all or some of their debts, or gives them a reasonable plan and time allocation to pay back to the creditors.

This nevertheless is a complicated process that requires expert guidance to go through it successfully.

Generally, those who declare themselves bankrupt do so in the courts and to start with;

Let someone ease your Bankruptcy Filing

As mentioned earlier, bankruptcy-filing process is complicated and finding the best lawyer in this expertise will be a plus for a start.

His or her role is offering you guidance all through the procedure and this guarantees safety with the law.

I believe such a professional will begin the process by asking about the nature of your debts and probably how you reached a decision like this one.

If it still looks feasible to him or her, they then compile all this personal information and file the intended petition in court.

Once such documents are filed at the bankruptcy court, a trustee will be delegated to you and his task for one will be ensuring that all the information that is needed is collected from you and is truthful.

Next, alerting your creditors follows; so that they stop all actions they might be taking up against you to get your payments.

Later actions includes meeting the various parties who are involved in your bankruptcy case, together with your creditors and if probable your creditors’ lawyers.

 

It is possible to file for bankruptcy on your own even if, it is a process that would take a lot of patience and thoughtfulness.

Additionally, bankruptcy filing will depend on the type of debts you owe creditors and where among the chapters of bankruptcy code this is covered.

Chapters of bankruptcy to choose from

If you decide that you want to file for bankruptcy on your own, the first decision you have to make is which kind of bankruptcy you should file for but if you have a lawyer, this is much easier.

As a result, gathering information to be able to locate which one suite you best become an obligation for you.

Commonly, people choose either chapter 7 or 13 of bankruptcy, which are bit different.

If your choice is chapter 7 bankruptcy, you need a helping hand of a professional supposed to take you through this.

Chapter 13 or wage earners plan best suits those with a regular income each month, and they are allowed to select their own repayment plan to the creditors that they deem fair and affordable.

To begin the cases, the debtor files a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its major premises or prime assets.

In addition to the petition, the debtor must also file with the court: list of assets and liabilities, current income and expenditures, a statement of financial affairs and a list of contracts to be executed and payable leases.

Note: use the information in this article to widen your knowledge in filing bankruptcy. The real process in the bankruptcy courts may stipulate more requirements not mentioned here.

 

 

 

 



Bankruptcy Questions

Cheryl asked:


I want to file a personal bankruptcy (chapter 13) due to personal debts. I also happen to be a managing member of an LLC. The LLC is doing ok, and is not involved in the bankruptcy. There is nothing in our LLC operating agreement as to what happens if a member files bankruptcy. Given that, can I still continue to be a member of the LLC after filing for bankruptcy? Also, how do I determine the value of the LLC as an asset in my bankruptcy filings?

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MIKE SELVON asked:


A couple of years ago, the Congress of the United States overhauled the US Federal bankruptcy laws in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. One of the provisions that was written into the new procedures for filing for bankruptcy, was the requirement that all debtors must attend bankruptcy classes.

The debtor is the person who is going through the chapter bankruptcy filing. The new law mandates that the debtor must take two different types of classes during the course of the proceeding. The first class is for pre-filing counseling. The second required class is for pre-discharge education purposes.

During the first of the set of mandated classes, the debtor must attend a class that provides information and counseling from approved professionals before declaring for brokeness. The purpose of the pre-filing counseling class is to help the debtor gain a full understanding of the process of a new bankrupt filing, to understand the consequences that it leads to with regard to their credit score and long-term ramifications, and to investigate available alternatives to the drastic decision to file.

One of the purposes of pre-filing bankruptcy classes is to take the debtor through the process of thoroughly examining their financial situation with the pre-filing counselor. This includes looking at their earnings, all of the household expenses, all of the debts they have incurred and their monthly obligations. The next step is to do a budget analysis based on this information and to look at any alternatives that may be available, instead of filing for bankruptcy.

As part of the counseling, instruction will be given on the differences between filing Chapter 7 and filing Chapter 13. As well, an overview of both the advantages of declaring for brokeness and the disadvantages will be discussed.

After the debtor goes through the classes for pre-filing counseling, they will be issued a certificate of completion. They must have this certificate of completion in order to proceed to the next step of filing for bankruptcy.

The second of the required classes that a debtor must take is the pre-discharge education class. The debtor is to take this class between the time that they complete the claim form for brokeness and file it with the court and when it is discharged. A bankruptcy is not considered complete, and the debts are not eliminated, until it is discharged by the court. The discharge of it is the final step in the process.

Typically the pre-discharge classes are two hours in length. During that class the consumers learn about budgeting and more effective money management skills. They also learn about the proper uses of credit, how to re-build a positive credit record, how to recognize predatory lending practices and how to avoid such practices, and how to take steps to protect against identity theft.

Under the new laws, it can not be discharged until the debtor shows proof that they have completed both the pre-filing and the pre-discharge classes. Just at with the pre-filing counseling class, the debtor will receive a certificate of completion at the conclusion of the pre-discharge education. They must file this certificate with the court in order for their bankruptcy to be discharged.

The bankruptcy classes have to be taken from an institution that is on an approved list and which is authorized to issue the class completion certifications. The cost of the classes will vary depending on the organization that is offering them and depending on the format of the class.

Some companies offer the classes online, while others provide classes over the phone and still others offer the traditional classroom environment. In most parts of the country, the cost ranges from $50 to $150 per class.



Bankruptcy Questions