Bankruptcy Help - Where to Get It

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Require bankruptcy help? A lot of citizens do not like to take notice of it, but if you require economic failure help, the finest place to get help is to twist to the experts. Get in touch with a bankruptcy lawyer. Here's the reason.

Bankruptcy, whether individual insolvency or business insolvency, is very prolonged, technological, and is capable of being difficult. An attorney who manages individual bankruptcy is qualified to think all of the subsequent areas that are interweave:

The people's requirement for Bankruptcy:

Individual bankruptcy comprises of both Chapter 7 bankruptcy as well as Chapter 13 Bankruptcy. These are dissimilar laws and events and they deal with liabilities and belongings in unlike ways. People must be eligible for bankruptcy and the requirements are different for every kind of bankruptcy.

The people's Debt:

The people's liabilities are moreover secured or unsecured. Secured liabilities may be also unpaid (such as a car or else home credit) or may be forced by law (such as a judgment or tax lien). The various kinds of liabilities are treated in a different way in each of the two kinds of individual bankruptcy.

The personnel belongings:

The kind of bankruptcy, kind of belongings, sum of property, and whether or not belongings protects a liability, all have an effect on the consequences of a private bankruptcy. A defaulter may or may not lose land in the bankruptcy procedure.

Motions to stay away from liens:

During an episode 7 bankruptcy procedures, a defaulter can file a movement to stay away from Liens on definite individual belongings. This has the consequence of permitting a defaulter to keep the belongings, but not paying the liability. There are limitations on movement to stay away from the Liens and it does not affect the credits used to buy property.

Motions to keep away from Judicial Liens:

Various defaulters have been charged and have judgments in opposition to them. Usually, these judgments require to be paid previous to genuine belonging (such as a residence) can be put up for sale. Though, a defaulter can file a movement to keep away from Judicial Liens and get rid of the judgment from its attachment to genuine belongings (such as a residence) and not pay the judgment liability.

Reaffirmation conformity:

There are times when the defaulter needs to repeat a liability and it is in the defaulters best curiosity to do so. Since bankruptcy is to assist the defaulter get rid of liability, there are necessities to be fulfilled before a bankruptcy court approves the reaffirmation agreement.

Bankruptcy Chapter 13 Mortgage Foreclosure

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In bankruptcy Chapter 13 mortgage foreclosure is either stopped or at least temporarily avoided.
Here's how.

First, just in case you are not familiar with a Chapter 13 bankruptcy, it is a bankruptcy court approved payment plan where the debtor (the person filing bankruptcy) pays a bankruptcy trustee each month and then the trustee pays the debtor's creditors.

There are several aspects of a Chapter 13 bankruptcy that work to help people facing mortgage foreclosure. The first aspect is actually applicable to all bankruptcies. It is called the "automatic
stay".

By law, whenever anyone files bankruptcy, regardless of the type of bankruptcy, there is an immediate "automatic stay" (automatic temporary stopping) of most civil proceedings against the person filing bankruptcy. What this means is that if someone is facing mortgage foreclosure and the person files bankruptcy, the mortgage lender has to immediately stop its' foreclosure action until it gets permission for the bankruptcy court to proceed.

In a Chapter 13, the bankruptcy court will not lift the "automatic stay" and grant the mortgage lender permission to proceed with a foreclosure until the debtor (the person filing bankruptcy) fails to make his payments to the bankruptcy trustee. As long as the debtor pays the monthly payments to the trustee and pays his regular mortgage payments, the "automatic stay" will remain in force and the mortgage lender can not do anything.

The second aspect of a Chapter 13 that works in favor of people facing foreclosure is that it allows a debtor to pay mortgage arrearage over time, normally 3 to 5 years. In most foreclosure cases, a person has not paid his monthly mortgage payment for several months and the mortgage lender demands full payment of the delinquent monthly payments (arrearage) in lump sum before the lender will consider stopping foreclosure. Most people cannot pay the lump sum.

In a Chapter 13 bankruptcy, a debtor can pay the arrearage over time. He does not have to pay it all at one time. Spreading the lump sum over time means paying smaller monthly payments until the total arrearage is paid. A creditor can object to the amount to be paid each month towards the arrearage, but once the bankruptcy court approves the payment plan, the creditor can not do anything except take the payments.

A third aspect of a Chapter 13 bankruptcy that helps people facing mortgage foreclosure is that unsecured creditors may be paid a portion or all of what is owed to them. What this is really doing is reducing the amount of debt that a person has to pay back each month. By paying unsecured creditors less each month, there is more money available with which to pay a secured creditor such as a mortgage lender. Therefore, it should be easier for a debtor to pay his monthly mortgage payment.

This is general information. If you need specific information or have any questions of any nature whatsoever, talk with a lawyer licensed in your state.

This article may be republished, but the wording must not be changed and the author links must
remain active.

Filing Bankruptcy - New Bankruptcy Laws Create Confusion For Consumers

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Many Americans are filing bankruptcy in hopes of eliminating debts or saving their home from foreclosure. While it is true bankruptcy can offer a fresh financial start, undergoing the process is no easy task. New bankruptcy laws, enacted in 2005, have made filing bankruptcy complicated and confusing.

For most people filing bankruptcy requires legal assistance. When possible, it is a good idea to interview three or four bankruptcy lawyers. Most law firms offer complimentary consultations to review financial information and provide advice. Filing bankruptcy can be an emotionally-charged experience, so it is important to work with a lawyer whose personality is complimentary to yours.

Prior to or during the bankruptcy process, debtors are required to undergo credit counseling. The Bankruptcy Abuse Prevention and Consumer Protection Act requires consumers to obtain counseling through a U.S. Trustee Program agency. Credit counseling must take place a maximum of 180 days prior to filing.

Debtors must also undergo the "means" test to determine if they are eligible to file for personal bankruptcy protection. A provision of BAPCPA requires consumers must pay a portion of their debts if possible. The means test is used to determine how much debt will be repaid.

In cases where debtors fall significantly below the median income level of their state, they may be allowed to file Chapter 7 bankruptcy. Chapter 7 involves liquidation of assets and discharge of debts. Otherwise, debtors will be required to file Chapter 13 bankruptcy and repay debts over an extended period of time.

In order to file bankruptcy, debtors must petition the bankruptcy court in the judicial district where they reside. A creditor meeting will be arranged and a repayment plan submitted to the court. BAPCPA requires debtors to pay a substantial amount of disposable income toward repayment of debts. If the debtor is unable to adhere to the repayment plan, they will fail out of bankruptcy and lose protection of the court. Failing out of bankruptcy means creditors can proceed with collection actions including initiating foreclosure.

When homeowners file bankruptcy to stop foreclosure, it is crucial they understand the consequences of failing out of bankruptcy. Mortgage lenders can commence the foreclosure process where it left off when bankruptcy was filed. In many instances, homeowners are only days away from eviction when they file. If they fail out of bankruptcy, the lender can foreclose in a matter of days.

Filing bankruptcy has far-reaching effects and should only be considered when all other debt elimination plans have failed. These might include debt settlement, debt consolidation or credit counseling. Take time to become educated about bankruptcy and fully understand the pros and cons. Look for alternatives that can yield the same results without being as detrimental to your credit.

Bankruptcy - Do's and Don'ts

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Filing for bankruptcy is a serious decision and you have to be very careful in your approach towards the same. The procedure is a bit complex. Therefore, make sure that you follow the following do's and don'ts:

The Do's

Following are some important things that you must DO.

You must take your case very seriously. You have the constitutional right to use it as a tool to get rid of the debts that you are unable to pay.
While you are filing your petition, you have to be very honest and forthcoming in providing all the details. Make sure that the information that you are providing is accurate and has not been manipulated. Your purpose is to get a discharge from your debts and you may not be able to achieve that by concealing your assets or providing false data on your bankruptcy petition. Such things will only guide you into a much deeper trouble.
While you are working with your attorney, you should try to provide all the details to them without concealing any facts. Even if it is embarrassing for you, your lawyer must know about it.

You must work in full co-operation with your attorney. You have to make yourself available for him whenever he wants to discuss any issues regarding your case.
Meeting with your creditors is an important part of the process. Before, you participate in such meetings, it is always better to seek advice from your attorney about how you should behave in the meeting.
Last, but not the least, you must also consider the bankruptcy alternatives before you actually file your case. Credit counseling and debt consolidation are some of the best tools that can help you pay off your existing debts without filing your petition.

Don'ts

Following are some of the things that you should not do.

You should not consider bankruptcy as an easy alternative to get rid of all your debts. Not all kinds of debts are dischargeable. Some non-dischargeable debts include Student loans, specific tax liabilities, etc.
The meeting with the creditors must be held before filing the petition. You should not talk to them after you have filed your petition. Furthermore, any attempt from the creditors' side to contact you must be informed to your bankruptcy attorney.
You should not keep any of the creditors out of the petition. Make sure that all of them have been included. The ones that are not mentioned in your petition will still claim their money even after you have been declared as bankrupt and you would be liable to pay them back.
Do not try to misuse your filing by availing lots of credit cards or running up a huge amount of bills. Such attempts may dismiss your case, as the court may consider your bankruptcy case to be fraudulent.

Steps In Filing Bankruptcy - Bankruptcy Process Made Clear

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Filling bankruptcy is not just the case with individuals under enormous debts. It so happens that several small and large corporations face the same problems many a time. These are difficult times for the company in question. There are issues regarding the employees and the investing agents as well. The steps in filing bankruptcy are made simple if there is a good lawyer representing the client to sort out the matter. Filing bankruptcy online is also a feasible option.

There are several separate steps in filing bankruptcy. About six months before the actual filing bankruptcy, the applicants must compulsorily undergo counselling for credit. The applicants also need to fill out forms and declare all their property. Second in the list of steps in filing bankruptcy is to check for chapter. It is decided by the federal organization if the applicant can opt for chapter 7 or 13 as per the policy. Next, means such as income and expenses are tested.

Individual owned property that does not come under any exemption is liquidized and equally partitioned among the claimants. Assets or possessions owned by the particular corporate entity are entrusted to a 'trustee' who liquidates them and distributes the money among all the creditors. Payments are also made to the investors of the corporation. The corporate entity is currently out of business and bankrupt. Hence, its normal operations are not permitted to be carried out.

In terms of steps in filing bankruptcy for corporations, the creditors come under the secured and unsecured categories. The former includes banks that have proper mortgage claims and are always given higher priority during payments.

The latter comes second in terms of priority and these have taken more risks than the secured creditor. However, the third category of investors (stock holders) has the last claim. They are ensured payment only if the first two investors have received theirs.

Filing bankruptcy costs vary for each step. The counselling is normally free or goes up to fifty dollars. They provide free means test. The ticket out is also charged nominally but court and attorney expenses and fees may go up to a few thousand dollars in all. Straight bankruptcy filings that come under the chapter 7 are usually more expensive and up front.

Bankruptcy Law - An Outline

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Bankruptcy law is the governing laws that say what happens in the bankruptcy process, who can file what type of bankruptcy and every other detail involved in filing bankruptcy. It is important that you are serious when filing bankruptcy and that you make sure your completely understand the process.

An Establishment of Bankruptcy Law

The United Bankruptcy Code is the law that regulates and establishes bankruptcy. This is a federal law and bankruptcy is held in federal bankruptcy courts. Federal bankruptcy judges hear bankruptcy cases.

States get involved on some level with the process. Each state has one or more bankruptcy courts to hear resident cases. Additionally, exemptions are established under federal law, but states also have exemptions that can be chosen instead of the federal exemptions.

Variations of Bankruptcy Law

There are many variances in the bankruptcy laws that can be confusing. Here are some top things you should know about:

Exemptions - Exemptions are assets that are protected. You will have a federal list and a state list. You have to choose one or the other. The idea is to go with the one that protects the most of your assets.

Different types of bankruptcy - There are many different types of bankruptcy. Individuals usually either file Chapter 7 or Chapter 13. In any case it is important to understand the difference. You also have to make sure that you qualify for the chosen type under the new laws.

Alternatives - Nobody really wants a bankruptcy filed. It will ruin your credit and possible cause you to lose assets. Creditors lose money and the government racks up costs during the process, too. In the end everyone benefits more from an alternative to bankruptcy. Many times during the process alternatives are explored to see if they would make more sense then filing bankruptcy.

The New Bankruptcy Laws

New laws were designed to help reduce the number of bankruptcies being filed and to help prevent abuse of the system. These new laws made several changes.

One of the best known changes is the new requirement of credit counseling. This is done two times during the process. The first time is to help a person make sure they should file bankruptcy and that an alternative is not a better solution. The second session helps the person to be a better consumer and learn about being responsible with credit.

Another major change is the limitation on who can file Chapter 7. This limitation makes a Chapter 7 based on income. Those making too much have to file a Chapter 13.

Bankruptcy - What Are the Types of Bankruptcy Cases?

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The current bankruptcy law, enacted in 1978, is known as the Bankruptcy Code. The Code was amended in 2005, however, the 2005 amendments do not apply to cases filed before or pending on the amendments' effective date, Oct. 17, 2005. The Code is supplemented by the Federal Rules of Bankruptcy Procedure, as well as local rules, which govern the procedures used in the bankruptcy courts.

The Code is set forth in Title 11 of the U.S. Code. It consists of nine chapters: 1, 3, 5, 7, 9, 11, 12, 13 and 15. Chapters 1, 3 and 5 are general applicability. Chapters 7, 9, 11, 12, 13 and 15 each deal with a particular type of bankruptcy proceeding. The Code refers to the financially troubled person or entity as the "debtor."

Debtors file bankruptcy for a variety of reasons; including divorce, job loss and health problems. Pursuant to various stay provisions, debtors are, upon filing, entitled to a break from collection activities. By filing for bankruptcy, debtors may obtain a discharge of personal liability from many debts and may be able to restructure others.

There are two basic types of bankruptcy proceedings: liquidations and reorganizations. In liquidations, governed by chapter 7, the debtor's non-exempt assets are sold for the benefit of creditors. In exchange for surrendering these assets, the debtor generally obtains a discharge of personal liability for pre-bankruptcy debts and may enjoy assets acquired after the filing.

Chapters 11, 12 and 13 involve various types of reorganizations or payment plans. In bankruptcy reorganizations, the debtor's assets are not sold. Individual debtors, often file chapter 13 cases in order to save their homes. Reorganization bankruptcies allow a debtor the opportunity to restructure the debt and to pay it, either partially or in full, through a plan funded by his income. The plan must be confirmed by the court for it to be mandated upon creditors.

Bankruptcy Process - Essential Steps Overview

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If you are considering bankruptcy, you'll need to know what to expect during each phase of the process after filing.

Here's a basic overview of what to expect during the entire process:

First, you must decide which type of bankruptcy you want to file. Chapter 7 will free you of all of your debt, and allow you to begin rebuilding your credit after a few years. Many people do not qualify for this type of bankruptcy under new government guidelines established in 2005, however, which allow the court to determine if you indeed do qualify. Basically, the law requires you make less than the medium income in your state to file for Chapter 7 bankruptcy.

Chapter 13 bankruptcy requires you to pay back all of your debt within a specific timeframe in accordance to a schedule set by the court. While this may sound like a good solution, after all it's allowing you to pay back everyone you owe, it can be difficult since the court decides how much of your income is used for debt payments, and how much you are able to keep to live on. Their criteria is usually stringent, and doesn't allow for anything but necessities during the repayment period.

Once you've decided which type of bankruptcy to file for, it's time to start filing out mounds of legal paperwork. If you'll be filing yourself, be prepared to file app. 30 to 60 pages in your petition, including schedules and other papers filed at the time of your bankruptcy. You must follow all local and federal bankruptcy court rules carefully when completing these forms. It can be very tedious and confusing work. You must learn and understand a variety of bankruptcy laws and requirements specific to your state, and be able to type them in a specific manner.

About 4-6 weeks after filing for bankruptcy with the court, you will be required to attend a hearing presided over by the bankruptcy trustee called the First Meeting of Creditors. You will be required to answer detailed questions about your bankruptcy papers, assets, debts and other matters from both the trustee and your creditors.

Your creditors now have 60 days in most states to contest your bankruptcy filing. Once that deadline has passed you can expect the court t notify you of your official debt discharge in about 60 to 75 days.

Does filing bankruptcy mean the end of credit for a lifetime? Absolutely not! You can begin to reestablish your credit two years after the discharge of Bankruptcy. However, it will be recorded for 10 years and must be reported if asked. You may not file a new bankruptcy request for six years.

Chapter 7 Bankruptcy Vs Chapter 13 Bankruptcy

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Petitioning a court for a judicial declaration of bankruptcy is always an option for people who simply cannot fulfill their debts because of some financial woes.

There are 2 kinds of bankruptcy: voluntary bankruptcy where the debtor himself initiates the proceedings; and involuntary bankruptcy where the creditors are the ones who initiate the proceedings to protect their interests and enforce their rights.

There are 2 kinds of voluntary bankruptcy: one which is filed under Chapter 7 of the Bankruptcy Code, and another which is filed under Chapter 13 of the same law.

Chapter 7 bankruptcy, once granted, will ask the debtor to surrender his properties - at least those which are not exempted by law - to a trustee who will thereafter liquidate the same and send the proceeds to the unsecured debtors in proportion to how much they have lent the debtor. Regardless of whether or not the liquidated properties will be enough to satisfy these debts, they will be discharged upon distribution of the proceeds. The debtor can start his financial life all over again.

Chapter 13 bankruptcy, on the other hand, works the same way, with one major difference. The debtor will be asked to satisfy a portion of his unsecured loans before he will be discharged of the same. This portion depends on the court's judgment, taking into consideration the debtor's financial abilities in the foreseeable future, no matter how woeful it may seem at the time of the grant of the petition.

Immediately, one would think that Chapter 7 bankruptcy is a better option.

Well, it is.

Unfortunately, it's not up top the debtor to decide under which chapter of the statute should he file his petition for judicial declaration of bankruptcy.

The law is quite explicit when it comes to this matter. First, the petitioner's income will be taken into consideration. If his income is below the median, then he will be allowed to file for bankruptcy under Chapter 7. But if his income is slightly above the median, he will be asked to undergo a "means test."

This "means test" will gauge his ability to pay his debts, as well as how much of such debts he will be able to pay. This will be the basis of the terms and conditions under Chapter 13 of the Bankruptcy Law.

The above is a relatively new law passed by Congress in 2005.

A debtor is advised to seek the services of a bankruptcy lawyer so that his interests will be protected in the best way possible. An attorney will defend the petitioner against any and all attacks against his petition so that, at the end of the day, he may be declared bankrupt and his financial misery will be alleviated.

Financing a Home After Bankruptcy

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I'm often asked, "can I still buy a home if I've had a recent

bankruptcy?". Absolutely! Now, for obvious reasons, you can expect to

pay a higher rate on your mortgage than those who haven't had a

bankruptcy. You actually have a couple of choices when it comes to

purchasing a home after a bankruptcy. You can get your mortgage through

a non-prime lender, or seek out an FHA Loan. Whichever mortgage lender

type you go with, be prepared to produce an explanation of the

circumstances of the BK, as well as the documentation and schedule of

debtors. You'll also need to have re-established some credit in most

cases, to show the mortgage lender that you can now handle paying your

bills again. You needn't be a novelist to write you BK explanation

letter, your mortgage broker can help with that. At our company, it's

no big deal to help 20-30 people each month at writing their

explanation letter for Bk's. We know what the mortgage lender is

looking for and what format they like, so relax when it comes to this

part of the loan. They really just want to know what the circumstances

surrounding your BK were, in layman's terms. There are basically two

kinds of personal bankruptcies that mortgage lenders deal with; Chapter

13, where your debts are reorganized and paid out over time and Chapter

7, where your assets are liquidated. I'm not an attorney, so speak to

your tax advisor about each of these bankruptcies if you'd like

in-depth information about what they mean. You can usually get a home

mortgage in 12 months with a chapter 13 bankruptcy. You can expect to

wait at least 2 years for a chapter 7 bankruptcy. Either way, you can

expect to produce a trustee letter. It's dis-heartening, but I meet

couples and individuals all the time who have either just filed

bankruptcy, or they have one being discharged and I'm unable to help

until they get a trustee letter, authorizing a home purchase. I hope

this helps you in your mortgage endeavor!

View this and other articles at The Mortgage
Blog

Chapter 13 Bankruptcy - Wage Earner Plan

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Because of its specific nature, the chapter 13 bankruptcy is also known as Wage Earner Plan. As per this type of bankruptcy, the debtors are provided an opportunity to reorganize their finances and put their business on the path of profit making. They are also provided with a repayment plan and they have the obligation to repay the reduced claims of the creditors on a fixed monthly schedule basis.

Advantages Of Chapter 13 Bankruptcy

The chapter 13 bankruptcy has been deigned in a way to protect both the debtors and the creditors. This type of bankruptcy ensures that the creditors get their money back. At the same, it allows the debtors to continue with their existing business operations and regain control of their finances under the expert guidance of the trustee appointed by the bankruptcy court. What is more, the debtors are also protected from foreclosure, garnishment, levy, or similar consequences. This way, we can see that the chapter 13 bankruptcy is advantageous for both the debtors and the creditors.

How To Qualify For Chapter 13 Bankruptcy?

If you are planning to file for bankruptcy under chapter 13 of the bankruptcy code, you must be aware of certain eligibility criteria that you need to fulfill. To start with, you must have a regular source of income that exceeds your reasonable living expenses. If you do not have income enough to pay even your reasonable living expenses, you will not be able to file for chapter 13 bankruptcy. If you have already applied for the same, the bankruptcy court will order you to file for bankruptcy again under chapter 7 of the bankruptcy code where you will not be able to continue with your existing business, as all your assets will be sold off to pay off the debts you owe.

Do You Need To Pay The Full Amount Of Debts Under Chapter 13?

The amount payable as debt repayment will depend upon how much money is left with you on a monthly basis after paying all your necessary living expenses. In some cases, where the amount left is much higher, the debtor is asked to pay the full amount of debts and the repayment plan is designed accordingly. In some other cases, where the amount left is very little, the debtor is asked to pay the partial amount of debts and the repayment plan is designed accordingly. For example, in such cases, the debtor may be allowed to pay 25 cents for each dollar.

However, you should note that filing for bankruptcy is not a matter of choice. It is not that just because you want to continue with your business operation, you can file for chapter 13 bankruptcy and be granted the same. The bankruptcy court will look into all the facts and then make a decision. Therefore, the bottom line is that the more informed you are regarding the various bankruptcy laws, the better decision you can take.