What You Should Know About Bankruptcy
Filing bankruptcy is not only a last resort legal action; it is also a very complicated legal action that definitely needs the expertise of a lawyer. When thinking about bankruptcy, you first need to decide if bankruptcy is right for you. If it is, then you need the help of an attorney to decide which type of bankruptcy is required for your particular situation. The decision to file bankruptcy can be brought on by many different circumstances. The most common circumstances are divorce, medical hardships and credit card troubles. In cases of divorce, bankruptcy is often inevitable. The sudden change in financial level and the added burden of court costs, extra expenses and child support often cause one or both parties to get behind on their financial obligations. In the case of medical hardships, high medical bills can sometimes overburden people even if they have insurance. This is even more likely to happen if the person experiencing the medical emergency is also the family breadwinner. The most common case of financial hardship is incredibly high credit card balances. After carrying numerous high credit balances for a certain period of time, many people find themselves unable to make anything but the minimum payment and sometimes not even being able to make that. Then, when the high interest rates are added in, people find themselves in a situation where repayment is often impossible. Whether your situation arose from one of the above financial problems or not, sometimes bankruptcy is the only answer to your monetary problems. Once you have decided that bankruptcy is the answer for you, you will need to enlist the services of a lawyer to decide which type of bankruptcy to file and to help you navigate the many complex bankruptcy laws and regulations. There are four main types of bankruptcy, Chapter 7, Chapter 13, Chapter 11 and Chapter 12. Chapter 7 is the most common form and can be used by businesses and individuals. Chapter 13 is the second most common form, but it limited to use by individuals only. In a Chapter 7 bankruptcy, a debtor's property is divided into to categories, exempt and non-exempt. Exempt properties include things that the debtor will be allowed to keep like their home and automobile. In the case of exempt properties, the debtor is allowed to keep them as long as he or she continues to pay for them. If a person cannot continue to make payments, the owner of the loan may repossess the property, even after a bankruptcy has been finalized. Any non-exempt or unsecured property will be sold to cover the debtor's financial obligations. Debts such as credit card debts and medical bills can be written off with this type of bankruptcy, but other debts like school loans and taxes cannot be. In Chapter 13 bankruptcy, the debtor is required to come up with a way to repay his or her debts, but these debts usually do not have to be repaid in full. In most cases, a creditor will agree to take a small percentage of the owed debt as opposed to losing all repayment all together. This form of bankruptcy is preferable for those individuals that wish to keep all of their possessions and just need a chance to catch up on their financial obligations. It does not, however, excuse a debtor from priority debts like taxes and child support. In order to qualify for Chapter 13 bankruptcy, an individual must have a yearly income level that allows for repayment of each of his debts within three to five years. After three to five years of consistent repayment, the debtor's obligations are released. After you have researched bankruptcy and decided that it is right for you, you need to contact an attorney that specializes in bankruptcy to help assure that you follow all legal guidelines and are protected from further collection activity. You can find a bankruptcy lawyer in your home city at Lawyer Vista
Related News
|
 |
|
|
RELATED ARTICLES
Tips To Take Control Of Debt Collection
Yes, debt collection tips can help. You may think you have no power when the debt collector comes calling, but think again! Creditors don't like losing out on the ability to collect money owed them. And most creditors will take steps to settle an unsecured debt to collect some money as opposed to no money.
Help for the Single Mother with Managing Credit and Debt
Today's consumers benefit drastically from the usefulness of credit. Credit cards are especially useful for large purchases, emergency situations, making reservations, identification, and protection from fraud.
Unfortunately, millions of consumers abuse credit cards beyond their financial earnings. The use of credit results in costly interest payments and late fees, impulse buying, overextended lifestyles, and the unnecessary stress from harassing telephone calls from collectors.
Mr. Cheapies Frugal Budget Tips
So you feel like a hamster spinning your wheel? The faster you run, the faster the wheel spins. Just when you get a raise, you notice the price of hamster wheels jumps!
Utah, the Nation?s Bankruptcy Capital
Congress recently passed the Bankruptcy Abuse Prevention and Consumer Protection Act, designed to minimize frivolous bankruptcy filings and to require debtors to repay some of their debt. Once it takes effect in October, 2005, the law will make it harder for those with problem debt to have their debt wiped away by the courts. Most will have to agree to a five-year repayment plan. In passing this new law, members of Congress suggested that our bankruptcy courts are filled with cases involving not ordinary citizens, but with reckless gamblers, shoppers, and drug abusers. Is that really the case?
How to Get Money When You Are Broke
(Money You Don't Have to Pay Back)
Different Ways Of Dealing With Debt
Bills, creditors, debt collectors. Are you yearning for the days when all you had to worry about was the money in your piggy bank? If so, you are far from alone. Whether its illness, loss of a job, or simple overspending, it happens to the best of us. But that doesn't mean your financial situation needs to go from bad to worse.
Christian Debt Consolidation ? Feel Comfortable About Managing Your Debt
Many Christians feel uncomfortable with the notion of being in debt, and even more so when the debt has gotten out of control. Some say that it is not acceptable for Christians to owe any money, even for such necessities as a home. Others feel that such debts are acceptable as long as debt does not place a burden on the family's finances.In recent years, the number of debt consolidation and credit counseling firms that specialize in catering to Christian clients have increased dramatically. Christian debt consolidation and credit counseling agencies are aware of the concerns Christians have about debt. They can help you consolidate your debt, establish a repayment schedule, arrange to allow you to continue tithing, and provide the additional spiritual counseling that you may need to help you stay out of debt. All of this is done in a way that is consistent with Christian beliefs and the teachings of the Bible. Creditors recognize that people who enter a debt consolidation program are trying to repay their obligations in good faith. Creditors are more willing to extend favorable terms to such clients in the hope that they (the creditor) will avoid the significant expense of turning the account over to a collections firm or avoid an extended drawn out process if the account holder goes through the expense of declaring bankruptcy.Experienced Christian Debt consolidation and credit counseling services know this, and they have experience working with creditors to ease the burden of repayment. They can help you renegotiate loans, reshape payment schedules, reduce your interest rate or obtain a loan that consolidates your debt. Many of these firms are nonprofit; they are in the business strictly so that they can help fellow Christians to get back on their feet and free from the burden of unusually heavy debt. If this sounds like something that suits your personal needs, you should consider contacting a Christian debt consolidation or credit counseling agency.
Debt Recovery Can be Easy
OK, so you are up to your head in debt. You are stressed out, it is now affecting the way you function and absorbing most of your daily thoughts. You have no idea what to do.
Credit Counseling or Bankruptcy: Which is Best for You?
People often get to a place where they simply can't pay their bills, especially in today's economy which is not particularly sympathetic toward the poor or even the middle class. Inflation has impacted nearly every facet of daily life including food, gas, rent, clothes, utility bills and more. At the same time, salaries, especially in the lower ranges, have utterly failed to keep pace. When you get to the place where you cannot pay your bills and have money left over for food and other necessities, there are some hard decisions that have to be faced. The options are credit counseling and debt management services, or bankruptcy. Both have their pros and cons, so which road to take depends largely on the individual and how severe his or her financial problems have grown.
British Families and Debt
There is current concern from the Bank of England that British families are getting deeper into debt, however, it has been said that lenders are putting themselves at risk because people are now more willing to make themselves bankrupt.
Credit Counseling ? Signs That You May Need Help
Credit counseling is a viable option for those who are feeling the stress of being overwhelmed by debt. Credit counseling primarily offers assistance with working out a credit and debt repayment plan for an individual to gain control of their finances by creating a structured budget for an individual to follow. Credit counseling offers an individual the option to repay their debts, if needed, through a credit counseling debt repayment program. This is where the credit counseling organization becomes in contact with an individuals creditor to ask for lowered interest rates and for the credit provider to stop any late and over the limit fees that may be attached to a particular credit card.
Credit counseling organizations that provide a no charge credit and money management education program for an individual typically have the individual consumer's best interest on their mind.
Debt Management Systems
What is a debt management system, and when do you need it? Like any kind of management system, debt help systems can be good or bad. We will take a look at what you can do to manage your debt better. One element is paying off debt, but that's not the only one. It is much more than paying off your credit cards, and doesn't end when you pay off your mortgage or car loan either. You have to make a system of good money management, and follow this system in your daily life. Here are the key elements in such a system:
Debt Elimination 1
If you have multiple debts, you may well be wishing you had a debt elimination wand to wave and make all the debts disappear. You would probably wish even harder for that magic wand if you were falling behind with, or at least struggling hard to keep up with, the monthly payments on those debts.
Solutions to Single Mothers in Debt
As a single mother, lets admit it, times get tough. You are fortunate enough to have your children that mean the world to you, but it doesn't come cheap. Of course you'd do anything to keep them safe, even if that means struggling financially to support their well being. Debt can get out of hand fast and with only one income it's hard to pay monthly rent, mortgages, utilities, and food expenses on top of credit card bills. This leads to unwanted stress but can be prevented if you get help.
Craving For Financial Freedom
Have you ever felt trapped in a Rat Race and wished to retire quickly but rich?
How To Get Out Of Debt
If you have found yourself in a position where you are in serious debt and cannot think of a way out of the situation, then take a few minutes to read these few tips. Some may seem obvious but do put them into practise as they will help.
Bankruptcy - Is It The Right Choice For You?
Bankruptcy is one of the tougher choices we as adults face in today's society where it is the norm to be in debt, albeit some more so than others. Credit card offers materialize whether you are looking for credit or not. All with their own perks and benefits may sound tempting enough to open and start charging. After all that free toaster oven, or the free airline perks might go a long ways! Or on the second look they might not be so free after you account for the interest rates or the additional card usage charges that some credit card companies place into your annual or monthly charges. We all like the word free, after all there's not a whole lot better than getting something and not having to pay for it. However that portion of the topic is for an article somewhere down the line at another time as this article is to serve as focus on the tough choice of filing for bankruptcy protection.
How Do I Lower My Debt Burdens?
How do I lower my debts?
Stop Debt Collectors
Can you stop debt collectors ? . . .You better know you can
How Do You Spell Debt Relief?
Of all the problems possible in a marriage, finances cause the most marital discord. Many singles consider finances to be their most worrisome issue. Many times this is due to a heavy debt burden. Several options exist to help people get debt relief from their unsecured debts. (Unsecured debt is not linked with a physical asset. Therefore, credit cards and medical bills are unsecured debts; a car loan or a mortgage are secured debts.)
|
