June 19, 2013

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Advantages of Filing a Chapter 13 Bankruptcy

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When filing for bankruptcy, you will need to choose whether you are filing a Chapter 7 or a Chapter 13 bankruptcy. With a Chapter 7 bankruptcy, your assets are liquidated to repay your debtors, and you can walk away from your unsecured debt. With a Chapter 13, you retain your assets and make a monthly payment to pay your creditors what you owe them. For those who are eligible for a Chapter 7 bankruptcy, walking away from your unsecured debts might seem enticing. However, there are many advantages to a Chapter 13 bankruptcy instead. Even though filing under Chapter 13 means paying your creditors each month, the advantages of this option over a Chapter 7 can help your new start stay inline with your original financial goals.

Here are some advantages to a Chapter 13 Bankruptcy:

  • With the Chapter 13 option, you will not have to relinquish your personal assets. Even with mountains of debt, and daily calls from creditors, you will be able to retain your property because you have made arrangements through your bankruptcy settlement to pay the money owed on your assets.
  • A Chapter 13 bankruptcy will stop the harassing phone calls you have been receiving. That alone might make you want to declare bankruptcy today! Once you have filed under Chapter 13, an automatic stay is declared which halts repossessions, garnishments, and foreclosures so that you keep your personal property as long as you meet the bankruptcy requirements.
  • Some of your debt can actually be reduced under a Chapter 13 bankruptcy. If you have incurred multiple late fees on your credit card bills, additional finance charges on loans, or other penalties that arose from your original commitment, these can be negotiated under a Chapter 13 settlement.
  • Chapter 13 bankruptcy encompasses all of your debt. Therefore, your secured loans, student loans, alimony and other debts that might not be given consideration under a Chapter 7 filing will be under your rearranged payment plans with your Chapter 13 ruling.

Making a monthly payment is a Chapter 13 deterrent for some people when they are considering bankruptcy options. There are several advantages to reorganizing your personal financial structure and repaying your creditors under the chapter 13 guidelines. With a Chapter 13 with or without the help of an attorney, you can get your life back on the path you were on before, instead of starting your financial status and your list of assets from scratch.

- This was a guest post by the Westbrook Law Group.

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Is it Possible for Same Sex Couples to File for Bankruptcy?

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The state of Illinois’s bankruptcy laws are still governed by the Defense of Marriage Act, also known as DOMA. This means that because DOMA officially lists spouses in a marriage as being of opposite sex, same sex couple cannot file for join bankruptcy under the law. This may not be set in stone however.

Recently, President Barack Obama instructed the Justice Department of the United States to stop enforcing this law in federal legal courts. This means that individual states such as Illinois are free to determine how to interpret DOMA in individual bankruptcy cases. So, can same sex couples file for joint bankruptcy? Maybe and maybe not.

Because DOMA is still legally on the books, a court can decide to uphold its legal terms for a spouse as being a member of the opposite sex. But with the Justice Department not enforcing these laws on a federal level, it means that individual states have the ability to change how they view a legal marriage. This means that same sex couples who want to file for joint bankruptcy should still try to see if an individual Illinois judge will grant them permission. Your best bet is to seek bankruptcy assistance and speak with a Chicago bankruptcy lawyer to see what your chances are.

A major problem that same sex couples may face includes the fact that creditors looking to collect from people filing for bankruptcy can petition the courts against allowing for same sex couples to claim joint status. This could give DOMA the backing and support it needs to remain on the books for good.

Many states are currently attempting to establish the constitutionality of DOMA on a state level. Any changes these states make, which include Connecticut, New York and Massachusetts, could have wide ranging effects on how other states interpret same sex marriage laws and bankruptcy proceedings. Same sex couples should continue to fight for equal treatment under bankruptcy laws. The more pressure is placed on individual state’s courts, the more likely these states are to reverse DOMA. Speaking to a Chicago bankruptcy attorney today could help you determine your best course of action.

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Provo Bankruptcy Lawyer Facts: Statistics on Bankruptcy

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In Provo-Orem Metropolitan Statistical Area, there are 555, 551 residents, according to the July 1, 2009 census. Normally in a large population, there are many businesses and working individuals who are making a living and everyday trying to make a better life for the family and for the future. And also in a community, there are people who, try as they may, does not rise up to the top of their profession, but rather go down.

If a time comes that you realize the need to eliminate some legal obligation to pay off debts, or stop the foreclosure on your house, prevent any of your property from being repossessed, or you need to get rid of high medical bills and creditors, need to prevent a utility company from not giving you service, call a good Provo bankruptcy lawyer to help you in dealing with your financial issues. There are dedicated attorneys who are committed in helping residents of Provo/Orem and are experts regarding the ins-and-outs of Utah State Laws.

We understand how hard it is for you to come to a decision to file for bankruptcy, we empathize on how terrible and devastated you may feel in having to face this kind of situation. And we are here to help and guide you through all the process. Our experienced legal counsel is at affordable rates since we do understand about the financial difficulties you are going through. You may at some point feel that to file for bankruptcy will disrupt more the life that you have made for your family, but the truth is, filing for bankruptcy is the best solution to your problems. You and your family can have peaceful nights free from the fear that creditors will call and harass you from dusk until dawn. A Provo bankruptcy lawyer can help you stand on your feet again.

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Frequently Asked Questions About Personal Bankruptcy

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There are some individuals that accumulate a lot of debt that they are not able to pay for and they need to consider personal bankruptcy. This can be a very frightening time for some individuals, but it can also be a way to decrease stress that is experienced so that individuals will be able to move on with their lives. As bad as bankruptcy seems from time to time, it can be a way to start fresh and to begin making a new life for yourself and your family.

Many people are not even sure what bankruptcy is. This is when a person basically reports that they are not able to pay their debts. When they file for personal bankruptcy they are taking the necessary steps to get their creditors to stop calling them, and bothering them for their money. This is something that is actually legal through the federal government and it has helped many individuals over the years.

Some people want to know if taking this step will help them save their home from foreclosure. This is not a promise but it might help. There are times when some individuals will actually be given the opportunity to catch up on past bills when the bankruptcy is finalized. This is a great way for many individuals to work on saving their homes, even though they have been struggling for such a long time.

Others want to know if this type of bankruptcy will clear away all of their debt. The bottom line is, no. There are certain types of debt that will not be removed just because you have filed. You may not be able to get rid of your student loans. You may also have to keep several different types of divorce payments such as child support and alimony. Many of these payments are not cleared when you file bankruptcy and you need to clarify that before you simply stop paying these things.

Finally, there are many individuals that want to know if filing personal bankruptcy will make their credit bad. That can be a very difficult question to answer. First of all, if you have filed for bankruptcy then you probably were not paying your bills in the first place and your credit was already bad. Next, the bankruptcy may show up on credit cards for approximately 10 years after you file. So, it may be difficult to get another credit card for some time after you file. But, just remember that you may be better in the end. It really can be a new start for you.

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Consult A Chapter 13 Attorney For Your Bankruptcy Issues

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If you have found yourself in considerable financial strife you may be considering personal bankruptcy. There are different forms of bankruptcy. Chapter 13 isn’t quite considered the clean slate that other forms of bankruptcy are but in the long run it is a much better option for you and your financial future. Consult with a Chapter 13 attorney to discuss if this is the best option for you.

The main prerequisite of Chapter 13 is that the person filing must have a regular income. For this reason it is usually most common among those who have credit card debt or something similar that has got out of control. Usually they are able to make payments but not payments high enough to please their creditors.

Chapter 13 allows you to retain your property and possessions. It does not allow for the liquidation of your assets but rather a restructure of your debts. This alone is a big advantage over other forms of bankruptcy as it simply allows people the help of the courts to work themselves out of debt.

Initial consultations with a Chapter 13 attorney are sometimes free of charge, but be sure to ask up front what the bankruptcy attorney fees are for each lawyer that you consult with. When you meet with them take documents outlining all your debt, the required repayments and confirmation of your income. This can sometimes be an embarrassing task but rest assured these attorneys have seen it all already and are only there to help you. Withholding information from them will only be detrimental to you.

Your attorney will prepare your case to take before the court. They can assist with budgeting and ensuring that filing for bankruptcy is in fact the best option for you. They help you to complete the necessary paperwork and help you organize payment of the applicable filing fees. They will set up the required meetings with your creditors and can often act on your behalf at these meetings, sometimes not requiring your presence. Your attorney will help devise a repayment plan and decide what needs to happen to make the repayment plan work. This may be lowering the interest rate you are paying or reducing payment amounts. Chapter 13 requires repayments to be made over a five year period. Once approved by the court they will provide a written plan outlining the repayment schedule and time frames that must be adhered to. Creditors must accept the ruling of the court however they are allowed to make an objection to the court.

If you have a regular income and think a Chapter 13 attorney could help you work your way out of the financial trouble you’re in, then this form of bankruptcy may work well for you. This could be a way to keep your home and your assets all the while giving you the ability to manage your own debts. In five years time you could have worked your own way out of financial ruin which would be something to be proud of. The only way you’ll know if this will work for you is to get your financial records in order and go and consult with a legal expert.

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Frequently Asked Questions Related To Online Bankruptcy

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When you make the decision to file for bankruptcy especially personal bankruptcy, you may want to consider looking at online bankruptcy and later on judgment recovery. This can decrease some of the time that is needed in order to get things in order when it comes to actually filing. But, it can also make things a little more confusing because you will be working on your own, in a sense. So, this article will examine a few of the questions that you may want to have answered before you begin to try to file online.

One of the main questions that many individuals ask is related to the phone calls that they get from the creditors that they owe money to. They often want to know if this will help decrease the troubling phone calls that are often received. The bottom line is, when you file for bankruptcy, it becomes illegal for the creditors to continue calling you. So, even if you file online bankruptcy, the creditors will eventually stop calling you. You will be able to rest easily because you know that things are taken care of.

Another question that people have is related to the different types of bankruptcy that can be filed such as chapter 7 or even chapter 11. It is very important to gain a full understanding of what type of bankruptcy must be filed when it comes to completing the forms online. This will help ensure that the person is carrying out exactly what he, or she, should be. Chapter 7 is generally used by individuals, married people, or even those individuals that own a business and they are the sole proprietorship. Now, chapter 11 bankruptcy is most often used by businesses so that they can work out a way to repay the individuals that they owe. For chapter 13 type of bankruptcy, you may need a chapter 13 attorney to help you out.

Finally, most individuals want to know what it means to have your debt discharged. This basically means that the creditors are not able to continue to contact you in order to obtain payment for the money that you owed them. But, there are some types of debts that are not able to be discharged. These may include child support, alimony that may be owed to an ex-partner, and even some student loans. It is always best to fully understand what falls into which category when you make the decision to file for bankruptcy.

Many individuals are turning to online bankruptcy because they do not have to pay for an attorney or even attorney mediator and it may even give them an opportunity to make some decisions on their own related to their finances. Getting lawyers can be very expensive like murder lawyer, theft attorney, etc. But, this can also be very confusing for many individuals. So, it may be best to consult with an attorney before beginning any process.

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What To Know When You Are Going To File Bankruptcy Yourself

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If you’ve decided to file bankruptcy yourself without the assistance of a bankruptcy lawyer you must read on. Assuming you have done a lot of research into alternatives for your situation and bankruptcy is the only option there are a few pitfalls to be aware of if you don’t have a lawyer at your side. Getting a Chapter 11 or Chapter 13 attorney, depending on the type of bankruptcy you are in, is very beneficial. They may provide advice which makes everything less stressful for you.

Be 100% confident that you have the time to do this yourself or consider online bankruptcy. This is not something you can do in your spare time or in the evenings after work. This will be all consuming for some time if you are going it alone and there is no doubt it can be one of the most stressful events in your lifetime.

You need to be somewhat financially or legally minded and logical. Considering you’ve found yourself in this position be very sure that you are unofficially qualified to be completing this process alone. If you don’t have the knowledge yourself you’ll need to find a support person who does.

To file bankruptcy yourself is not a matter of completing a few forms and showing on paper how much money you owe. It involves several meetings with your creditors, negotiations and appearances before a judge all of which will go belly up if you are not sufficiently prepared.

Because you won’t have legal advice you’ll need to do a fair amount of research yourself, again this could be a timely exercise. There are several different types of bankruptcy and one of which is personal bankruptcy that can be filed and all correspondence will be filled with legal jargon you’ll need to be familiar with before you sign or agree to it.

You may not be subject to lawyer’s fees but you’ll still be required to pay the filing fees, these can range from around $150-$200 for individuals. Also consider the cost of your time; you’ll be spending a lot of it on your case which is going to take you away from your regular day to day work or commitments.

Mistakes can be costly and you won’t get a second chance. Recent laws have been designed to discourage bankruptcy and for this reason the process is made somewhat difficult. If an error on your part calls your case to be ‘thrown out’ you can’t just start the process over. Once you’ve filed bankruptcy you will not be allowed to do so for around another 6-10 years depending on your local laws.

These are not designed as reasons to say why you shouldn’t file bankruptcy yourself, but are reasons why you need to consider your decision very carefully and ensure you are not making a choice that could be detrimental to your case and future for the sake of saving a bit of cash.

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Bankruptcy For Beginners

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What is Bankruptcy?

Bankruptcy occurs when an individual or business is no longer able to pay back debts or borrow money to do so. They can therefore petition the court to file for bankruptcy thereby putting a stay on any debts owed. While the matter is being decided creditors are forbidden to contact the debtor to demand payment. These debts can then either be discharged under a Chapter 7 bankruptcy or a payment plan can be established under a Chapter 13 petition needing the legal help of a chapter 7 and chapter 13 attorney. Otherwise, you may need to file bankruptcy yourself.

Alternatives to Bankruptcy

Declaring an individual as bankrupt is a complex process and can have serious consequences. It is important to ensure that all other alternatives have been exhausted before resorting to Bankruptcy. The first alternative is that of debt consolidation which means you can essentially combine all of your unsecured loans such as credit card debts into one repayable amount. This is a much more manageable and generally lower interest method of getting back in control of your finances. If this is not an option then you can also seek credit counseling. This step involves a credit counseling agency which will provide you with advice on your situation and help to draw up a Debt Management Plan with your creditors which will allow you to repay them over a 5 year period.

What is the Bankruptcy Code?

The Bankruptcy Code was developed in 1978. Under the Bankruptcy Code there are five different types of Bankruptcy. This article deals specifically with those types which apply to personal bankruptcy under Chapter 7 and Chapter 13 of the code.

Chapter 13 Bankruptcy

Bankruptcy is clearly a last resort for individuals who can no longer manage their finances. Personal bankruptcy under Chapter 13 offers a breathing space. If you are unable to pay all of your debts in the immediate however you are in receipt of a regular income and therefore would be able to draw up a repayment plan of between 3 – 5 years then this may provide the best option for you.

To begin with you must file your petition with your local bankruptcy court. Forms for bankruptcy are available for purchase from stationary stores. Once filed all actions against you will be put on hold while the matter is dealt with. Your petition must include details of:

- All assets and liabilities
- All income and monthly expenditures
- Any contracts or leases you are obligate to
- A list of all assets which can be considered as exempt

Either at the same time or within the next fifteen days you must also submit a repayment plan. A meeting is then held with all creditors. You are obliged to attend and answer questions put to you. This is then followed by a court hearing at which it will be decided if your repayment plan is realistic and complies with the Bankruptcy Code standards. At the hearing creditors have the right to object if they feel that what they will receive under such a repayment plan is less than they would under a Chapter 7 liquidation. They can also object on the grounds that you have not committed all of your extra income to the repaying of debts.

If successful then you must begin making repayments to an appointed trustee. If unsuccessful you can then either modify the repayment plan to a more acceptable one or file under Chapter 7.

Chapter 7 Bankruptcy

This type of bankruptcy is referred to as liquidation and an individual, partnership or business can apply. As an individual to apply for a Chapter 7 bankruptcy you will be means-tested to ensure you are not eligible to file under Chapter 13. If you are in receipt of a regular income that would be sufficient to repay your debts under a repayment plan then you will not be able to apply to have these debts discharged. Chapter 7 Bankruptcy is intended for use by honest individuals who have found themselves unable to repay debts. It is not to be misused by people who just want to shirk responsibilities.

The process by which a Chapter 7 petition is filed is similar to that of a Chapter 13 action. First a petition is filed with the same information attached as under Chapter 13. Then a meeting is held for creditors. Then at a court hearing instructions will be given regarding the liquidation of all non-exempt assets to repay the debts and the debt will be discharged.

It is important to also realize that some debts will not be discharged such as alimony and child support. The Bankruptcy Code does not offer an individual the chance to wipe the slate completely clean when it comes to certain key responsibilities such as parenting.

Exempt Assets

These are assets which are precluded from liquidation under Chapter 7. It generally applies to items such as clothing, work tools and vehicles up to a certain amount. It can also be argued that a certain portion of equity in your own home is exempt. However as the law changes between states and also between state and federal law it is best to talk with your lawyer.

Types of Debt

In order to understand the law surrounding bankruptcy it is essential to know the differences between secured and unsecured debts. Secured debts are those which the credit was based upon the right of the creditor to seize certain assets, for example a mortgage. Unsecured loans are those in which the credit was given based upon an assessment being made of the debtor’s ability to repay, for example credit card debt.

Tips on Finding a Bankruptcy Lawyer

Technically you do not need to have a lawyer to file for bankruptcy. However it is a particularly specialized area of law and you will not be given any special treatment because you are without legal representation. Therefore it is advisable to retain a lawyer. It is also possible that if you submit incorrect documents you could actually face charges of bankruptcy fraud.

When searching for a lawyer ensure they are fully trained in bankruptcy law, knowledgeable in the local rules, up-to-date on legal developments and that their bankruptcy attorney fees are reasonable. Go to your local bar association or do some online research to find a list of local lawyers. When selecting a lawyer ensure they are aware of local bankruptcy laws as they can vary from state-to-state. Also those assets which are considered exempt can vary from state-to-state.

Also look for law firms which are knowledgeable in credit repair resources. After filing for bankruptcy it will be important that you seek professional advice on ways in which you can start to repair your negative credit history

Consequences of Bankruptcy

It is important that you do not consider filing for bankruptcy, especially under Chapter 7, as an easy way out. There are serious consequences of being declared bankrupt. It will negatively affect your credit rating and preclude you from applying for a home loan for two years after the debt has been discharged under Chapter 7, or two years after all debts have been repaid in full under Chapter 13.

Filing for bankruptcy can also have implications for your career as you will no longer be eligible to hold the directorship of a company. Also you may lose personal assets such as property and expensive cars. Creditors do have the right to petition the court for this.

If, after taking into account the potential consequences of filing a bankruptcy claim, you still feel it is the only option available to you then remember to seek legal advice immediately

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Why You Should Get Bankruptcy Assistance

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As we grow and make our way in the world, we tend to focus on material things and this may result in the need for bankruptcy assistance. We purchase homes, cars, toys, vacations, etc. Maybe when we first purchase these things we are able to pay for them without any complication. However, things happen. In today’s economy, individuals are losing their jobs and this means that income becomes decreased. This creates financial difficulties for many people.

Once people start getting behind on their bills they may become frightened and overwhelmed. This causes a great deal of stress for the family unit. It may even result in more complicated issues. Before you know it, you are considering filing for bankruptcy because it feels like the only way out. But, it does not have to be. This is when you need bankruptcy assistance from bankruptcy or debt settlement attorneys.

Those individuals that decide to get assistance from professionals or from companies through online bankruptcy will also be getting some stress relief. Working with a bankruptcy, debt lawyer or debt settlement attorney who specializes in this area may be the best thing you have ever done. A good settlement attorney will work with the creditors in order to decrease the amount of money that you owe them. They may be able to negotiate a final payment plan or reduce your interest rate as well. You may be wondering how they do this, but you need to remember that the creditors want their money. Sometimes they will settle for a little, rather than none. This is the secret that the experts are aware of and they work with the creditors to settle a plan that works for everyone.  And if you are hiring Chapter 11 or Chapter 13 attorney, be sure to get a schedule of bankruptcy attorney fees up front.

Think about how nice it will be when the phone is no longer ringing off of the hook. Think about how much more organized you will become financially because you will know where your money is going and you will not feel like you are sinking all of the time. This is a great feeling to have and it will give you an opportunity to work on repairing any relationships that may have been damaged because of your poor credit.

Finding someone who can help with bankruptcy assistance is not difficult and it is strongly recommended. There are many different companies that can be found on the internet. But, it is very important for individuals to take the time to research any company that they may be considering using. This will help ensure that you are getting a company that really wants to help you clear up your debt.

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How To Claim Bankruptcy

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Bankruptcy is sometimes viewed as a quick way to get out of debt, get creditors off your back and wipe the slate clean to start again. Unfortunately it is not as easy as it sounds and is also a costly process in itself. Knowing how to claim bankruptcy involves doing some research into the debts you have, the money you earn and the laws surrounding bankruptcy.

Before taking a step towards bankruptcy ensure you have fully explored all other options and enlisted the help of a professional for money and budgeting advice. If there is any way your debt can be repaid on your current earnings not only would it be better for you in the long term but a request especially for personal bankruptcy will likely be declined. It is important to get professional bankruptcy assistance if you can’t file bankruptcy yourself through online bankruptcy.

Filing for bankruptcy will effectively give you a clean slate however the long term affects need serious consideration. Future purchases on credit will probably not be possible, applying for personal or car loans, mortgages, grants, credit cards and also opening bank accounts will be extremely difficult if not impossible. The social stigma attached to bankruptcy is unfortunate but also a reality to take into consideration. Often credit checks can be a part of the employment process so this is something that could affect future employment or advancement. It is also worth mentioning that certain debts cannot be wiped by bankruptcy, like government tax. These are all very good reasons why all options need to be explored thoroughly before considering bankruptcy. If you happen to know anyone that has been in this position their advice on how to claim bankruptcy and its pitfalls could be extremely valuable.

If bankruptcy is indeed your last resort and only option then the first step is to decide which type of bankruptcy you need to file for, with the help of a good lawyer. This will likely be Chapter 7 which liquidates all your assets and gives you a clean slate financially. The other most common form of bankruptcy is Chapter 13 which basically enforces an achievable repayment schedule; this is becoming a more preferred method within the industry and holds people more accountable for their debt.

Filing for bankruptcy can be costly; a bankruptcy or debt lawyer alone will usually charge a flat fee or an amount based on the outstanding debt. Bankruptcy attorney fees vary greatly but you could be looking at around $2000 for this. Doing your own research before hand on how to claim bankruptcy can sometimes reduce the time you require the lawyer for so be prepared.

You will then need to make a clear list of all your assets and debts which will be used in a meeting with you, your lawyer and the creditors seeking repayments from you. You are required to confirm your financial position under oath. The court will then decide what assets will be sold to repay what debts, in some cases the amount of debt is larger than what the assets can clear. This is why most people end up filing for Chapter 7. Otherwise the court will decide on a suitable repayment plan and term – under Chapter 13. In this case, you may need the assistance of a chapter 13 attorney to help you out.

About 60 days after this meeting has taken place you will receive a notification of discharge, meaning you no longer have obligation to pay the mentioned debt. However the case can be further drawn out if one of your creditors files a lawsuit to challenge the discharge of your debt with them.

Once you have begun proceedings to file for any type of bankruptcy ensure you think twice before making any purchases at all. Even small purchases made with your credit card will be very much frowned upon during proceedings, not to mention applying for or obtaining further debt with the knowledge it could be possibly wiped clean. These sorts of actions will almost certainly give the court reason to decline your request. When thinking about how to claim bankruptcy, ensure you have taken all this under serious consideration first.

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