For many individuals making the decision to file for bankruptcy is the most difficult step they will have to make in the process. Once they have finally arrived at the decision to file bankruptcy, they will have to examine their bankruptcy options. Not everybody will qualify for a Chapter 7 bankruptcy; those that don't can usually file a Chapter 13 bankruptcy instead.
Which bankruptcy is Chapter 7? Chapter 7 is the liquidation bankruptcy. If you have an excess of assets you may need to liquidate those assets in order to pay off your debts. The remaining debts will be discharged through the bankruptcy.
If this idea worries you - you don't need to be overly concerned. There are a number of exemptions for personal property that might protect your assets from liquidation. In fact, a large percentage of Chapter 7 filings are either covered under the exemptions or, the filers don't have any assets to turn over.
Chapter 7 is ideal for people who either don't have a regular job or don't have a steady source of income. Anyone who files for bankruptcy will have to submit to a bankruptcy means test. The means test compares your income for a household of your size to the median income of your state. If your income is below that figure - you automatically qualify for a Chapter 7. If your income is too high - your bankruptcy attorney will apply a standard formula that calculates allowable exemptions. If you still don't qualify for a Chapter 7, you will be diverted to filing a Chapter 13 bankruptcy instead.
Chapter 13 bankruptcy is a debt reorganization bankruptcy. With a Chapter 13 bankruptcy you pay off either all or a portion of your debts over a period of time. These payments are made over a period of three to five years at an amount you can comfortably afford.
You're probably curious as to what kinds of debts can be included in a Chapter 7 bankruptcy. First off, the debts that cannot be included in bankruptcy include child support, spousal support, student loans, court-ordered fines (e.g. traffic tickets), certain taxes (less than three years old) and victim restitution.
What can be included in Chapter 7 is unsecured debt such as: credit card debt, medical bills, utility bills, personal loans, and certain taxes (more than three years old). This can be extremely good news if you owe thousands of dollars in medical bills or credit card debt.
Chapter 7 bankruptcy is the simplest and quickest form of bankruptcy available. It can usually be completed within three to five months. In fact, many people think it's too good to be true - but it is not! It's real and it can offer much needed relief to individuals and families who are suffering from out of control debt. If you are contemplating bankruptcy - the best thing for you to do is contact a qualified bankruptcy attorney in your area.
Your lawyer will be able to sit down with you and listen to your situation. It should only take them a few short minutes to tell you what your best plan of action should be. They will be able to present your bankruptcy options or alternatives in a manner which you can easily understand. Calling an experienced bankruptcy lawyer will be the first step in reclaiming control over your finances!
Patriot Bankruptcy is a full-service bankruptcy law firm located in Boston, Massachusetts. They have spent years helping individuals and businesses afflicted with financial troubles. They will meet you with an open ear and will patiently listen to what you have to say. They will then employ their knowledge and experience when developing an effective solution to your problem. They take pride in helping people make the right choices when it comes to bankruptcy or its alternatives. Your initial consultation is free, and you will have a lot to gain from their priceless insight. Start taking action now to improve your situation - contact a Boston bankruptcy lawyer from their firm at (888) 453-FILE!
วันศุกร์ที่ 26 สิงหาคม พ.ศ. 2554
วันอาทิตย์ที่ 14 สิงหาคม พ.ศ. 2554
Use Discretion When Reaffirming Debts in Bankruptcy
Debtors have three options with respect to collateral in chapter 7 bankruptcy. Debtors can surrender the collateral back to the creditor without further obligation, redeem the collateral by paying the creditor the market value of the asset, or keep the collateral by agreeing to continue making payments by way of a reaffirmation.
A reaffirmation agreement is a new promise to continue making the payments, thereby allowing the debtor to retain the collateral. This agreement is entered into post-bankruptcy, which means the debtors are renewing their obligation to make payments. Failure to continue making timely payments as set forth in the reaffirmation agreement and the creditor can repossess the collateral and possibly sue the debtor for any deficiency owed.
In order to be approved by the court, a reaffirmation agreement must (1) be in the best interest of the debtor and (2) not pose an undue hardship on the debtor. If the debtor has an attorney, the attorney may sign the reaffirmation certifying the agreement is in the best interest of the debtor and does not pose any undue hardship, and no further hearing is required.
If the debtor is unrepresented, or if debtor's attorney will not certify the agreement, a hearing will be required and the presiding bankruptcy judge will review the reaffirmation agreement to determine its acceptability.
Much deliberation should be exercised prior to reaffirming a debt. In cases where the balance owed to the creditor is much greater than the value of the collateral, or when the interest rate on the loan is on the high side, surrendering the collateral may be the right choice. If the debtor is represented by a bankruptcy attorney the attorney should attempt to negotiate with the creditor to secure more favorable terms on the loan.
Before deciding whether to sign a reaffirmation debtors should discuss the matter with an experienced Gainesville bankruptcy lawyer.
A reaffirmation agreement is a new promise to continue making the payments, thereby allowing the debtor to retain the collateral. This agreement is entered into post-bankruptcy, which means the debtors are renewing their obligation to make payments. Failure to continue making timely payments as set forth in the reaffirmation agreement and the creditor can repossess the collateral and possibly sue the debtor for any deficiency owed.
In order to be approved by the court, a reaffirmation agreement must (1) be in the best interest of the debtor and (2) not pose an undue hardship on the debtor. If the debtor has an attorney, the attorney may sign the reaffirmation certifying the agreement is in the best interest of the debtor and does not pose any undue hardship, and no further hearing is required.
If the debtor is unrepresented, or if debtor's attorney will not certify the agreement, a hearing will be required and the presiding bankruptcy judge will review the reaffirmation agreement to determine its acceptability.
Much deliberation should be exercised prior to reaffirming a debt. In cases where the balance owed to the creditor is much greater than the value of the collateral, or when the interest rate on the loan is on the high side, surrendering the collateral may be the right choice. If the debtor is represented by a bankruptcy attorney the attorney should attempt to negotiate with the creditor to secure more favorable terms on the loan.
Before deciding whether to sign a reaffirmation debtors should discuss the matter with an experienced Gainesville bankruptcy lawyer.
วันเสาร์ที่ 13 สิงหาคม พ.ศ. 2554
Can a Bankruptcy Attorney Help You Become Debt Free?
When living under the oppression of debt becomes too much to bear, your attention turns to becoming debt free. If you have substantial debt to overcome it may seem impossible. The problem isn't so much that it's impossible, but that you don't know how to go about it. Should you turn to a bankruptcy attorney to get your finances out of the hole?
How much an attorney can help depends on your specific situation. If you believe bankruptcy could be the best way to become debt free in your case, then you should go in and consult with a bankruptcy attorney. Most attorneys offer a free consultation where you can ask basic questions and listen to what the attorney thinks you need to do in order to get out from under the debt.
Whether an attorney can help you beyond the consultation will depend on how they assess your situation and whether you decide to file for bankruptcy or take other options to relieving your debt. For instance, one alternative to filing bankruptcy may be to go through some type of debt counseling program. Another option for some people may be a debt consolidation arrangement. Those that are best suited to bankruptcy are those that need a bankruptcy filing to get debt free.
Bankruptcy Attorney Consultations
Whether you are sure that bankruptcy is the only way for you to relieve your debt or you just want to consider it as one of your options, the first step is to call up a local bankruptcy attorney and go in for a consultation. Initial consultations are typically free, though you will be limited to a half hour or an hour for the entire discussion.
You should come to the consultation prepared to explain your situation and show any paperwork that may help the attorney understand where you are in terms of debt. The faster you can present your situation to the attorney, the more time it leaves for them to analyze your options and give you a recommendation.
In most cases, a bankruptcy attorney will not outright say that you need to file bankruptcy. They will give you all of your options to become debt free and if you are a candidate, bankruptcy will be in the mix. In some cases this may be the best case for your situation but in other cases there may be some other options that can be considered.
Working with a Bankruptcy Attorney
During the consultation you should receive all the information regarding filing bankruptcy. You will know how much it is going to cost you to file, how long it may take for the process to work itself out, and what happens after you file. From there you can think it over and decide whether you want to do it.
If you do decide to work with the bankruptcy attorney and file, you will go back in to pay for the process and officially have the paperwork drawn up. In most cases you will then wait for someone in the attorney's office to prepare your paperwork and submit it to the courts. During this time you can inform any debt collectors calling your home that you have filed bankruptcy and they are no longer to call you.
A debt free life is fast upon you at this point. Follow directions from the bankruptcy attorney and you will be free from the stress of debt soon.
How much an attorney can help depends on your specific situation. If you believe bankruptcy could be the best way to become debt free in your case, then you should go in and consult with a bankruptcy attorney. Most attorneys offer a free consultation where you can ask basic questions and listen to what the attorney thinks you need to do in order to get out from under the debt.
Whether an attorney can help you beyond the consultation will depend on how they assess your situation and whether you decide to file for bankruptcy or take other options to relieving your debt. For instance, one alternative to filing bankruptcy may be to go through some type of debt counseling program. Another option for some people may be a debt consolidation arrangement. Those that are best suited to bankruptcy are those that need a bankruptcy filing to get debt free.
Bankruptcy Attorney Consultations
Whether you are sure that bankruptcy is the only way for you to relieve your debt or you just want to consider it as one of your options, the first step is to call up a local bankruptcy attorney and go in for a consultation. Initial consultations are typically free, though you will be limited to a half hour or an hour for the entire discussion.
You should come to the consultation prepared to explain your situation and show any paperwork that may help the attorney understand where you are in terms of debt. The faster you can present your situation to the attorney, the more time it leaves for them to analyze your options and give you a recommendation.
In most cases, a bankruptcy attorney will not outright say that you need to file bankruptcy. They will give you all of your options to become debt free and if you are a candidate, bankruptcy will be in the mix. In some cases this may be the best case for your situation but in other cases there may be some other options that can be considered.
Working with a Bankruptcy Attorney
During the consultation you should receive all the information regarding filing bankruptcy. You will know how much it is going to cost you to file, how long it may take for the process to work itself out, and what happens after you file. From there you can think it over and decide whether you want to do it.
If you do decide to work with the bankruptcy attorney and file, you will go back in to pay for the process and officially have the paperwork drawn up. In most cases you will then wait for someone in the attorney's office to prepare your paperwork and submit it to the courts. During this time you can inform any debt collectors calling your home that you have filed bankruptcy and they are no longer to call you.
A debt free life is fast upon you at this point. Follow directions from the bankruptcy attorney and you will be free from the stress of debt soon.
The author started DebtFreeBankruptcyAttorney.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.
วันเสาร์ที่ 6 สิงหาคม พ.ศ. 2554
Questions to Ask a Bankruptcy Lawyer
Many people are faced with financial issues nowadays that seem impossible to solve. However, there is the always present solution of filing for a bankruptcy that will get you out of the financial dilemma. In order to do this effectively and not risk losing all your precious assets, you will need to hire the services of a good bankruptcy attorney. This type of lawyer is responsible for assisting you in all the financial documents you need to provide for a bankruptcy and guide you through all the court proceedings.
There are two choices available to you when filing for a bankruptcy; the first one is to let the court assign a lawyer to you, and the second one is to hire your personal bankruptcy attorney. The latter option is more suitable for those who are already familiar with some of the best bankruptcy lawyers in their vicinity and feel that they can communicate their needs in a better way if they appoint the lawyer themselves.
Regardless of which option you choose to go for when it comes to selecting a bankruptcy attorney, you will need to ask some essential questions to the lawyer before hiring him. If you are living in a place like Los Angeles, a bankruptcy attorney would be even harder to find with the large number of these in the town. You may have to ask additional questions from the lawyers to determine their effectiveness in addressing your concerns. The first and foremost question should always be to determine the kind of bankruptcy that is right for you. In the United States, the Federal Court offers a number of options to file a bankruptcy. The most popular ones are the 7th and 13th clauses and you will already be familiar with these. However, bankruptcy lawyers will inform you about the specifications of each kind of bankruptcy so that you can make the best possible decision for your personal finances or for your business.
The next question would be the exact procedure of filing for a bankruptcy. You may want the legal staff of the attorney to assemble all the documents for you or you may want to do it yourself after detailed consultation from the lawyer. Another important question is concerning the fees charged by the attorney, may it be your personal one or the one assigned by the court. Consultations by attorneys are mostly free, but any additional time spent in the court or in filing your documents will be charged for accordingly. Some lawyers charge a full fee for dealing with the entire case of bankruptcy, while others charge on an hourly basis. You will also have to pay some fees to the court such as those associated with administrative work.
Another question you will need to ask the attorney is about the location of filing the bankruptcy claim. This location is typically the federal courthouse where you will need to submit all the paperwork. Your bankruptcy lawyer needs to be familiar with the rules regarding this process, such as whether the paperwork can be sent through mail or whether it is necessary to give it in by hand. Another important piece of information you need to know is the detailed procedure right after filing all the necessary documents for the bankruptcy. Normally, the court sends out a notification to the creditors and orders them not to contact the debtors. The dates for hearings will be sent out to both you and your creditors, and decisions will be reached accordingly. The type of bankruptcy you have filed for will determine the rest of the proceedings.
There are two choices available to you when filing for a bankruptcy; the first one is to let the court assign a lawyer to you, and the second one is to hire your personal bankruptcy attorney. The latter option is more suitable for those who are already familiar with some of the best bankruptcy lawyers in their vicinity and feel that they can communicate their needs in a better way if they appoint the lawyer themselves.
Regardless of which option you choose to go for when it comes to selecting a bankruptcy attorney, you will need to ask some essential questions to the lawyer before hiring him. If you are living in a place like Los Angeles, a bankruptcy attorney would be even harder to find with the large number of these in the town. You may have to ask additional questions from the lawyers to determine their effectiveness in addressing your concerns. The first and foremost question should always be to determine the kind of bankruptcy that is right for you. In the United States, the Federal Court offers a number of options to file a bankruptcy. The most popular ones are the 7th and 13th clauses and you will already be familiar with these. However, bankruptcy lawyers will inform you about the specifications of each kind of bankruptcy so that you can make the best possible decision for your personal finances or for your business.
The next question would be the exact procedure of filing for a bankruptcy. You may want the legal staff of the attorney to assemble all the documents for you or you may want to do it yourself after detailed consultation from the lawyer. Another important question is concerning the fees charged by the attorney, may it be your personal one or the one assigned by the court. Consultations by attorneys are mostly free, but any additional time spent in the court or in filing your documents will be charged for accordingly. Some lawyers charge a full fee for dealing with the entire case of bankruptcy, while others charge on an hourly basis. You will also have to pay some fees to the court such as those associated with administrative work.
Another question you will need to ask the attorney is about the location of filing the bankruptcy claim. This location is typically the federal courthouse where you will need to submit all the paperwork. Your bankruptcy lawyer needs to be familiar with the rules regarding this process, such as whether the paperwork can be sent through mail or whether it is necessary to give it in by hand. Another important piece of information you need to know is the detailed procedure right after filing all the necessary documents for the bankruptcy. Normally, the court sends out a notification to the creditors and orders them not to contact the debtors. The dates for hearings will be sent out to both you and your creditors, and decisions will be reached accordingly. The type of bankruptcy you have filed for will determine the rest of the proceedings.
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