Wednesday 21 October 2009

Guide To Bankruptcy

First of all, you're not alone. Filing bankruptcy is probably one of the most difficult decisions you'll ever make. So, let's make sure you comprehend exactly what filing bankruptcy means and how it will affect your life. The following guide to filing bankruptcy will help you to understand what goes on behind the scenes.

Bankruptcy, as you know, has changed over the last 3 years. In October, 2005 new federal laws made it harder to file Chapter 7 bankruptcy (total liquidation) and instead required you to file Chapter 13 bankruptcy (repay at least partial debt).

When filing bankruptcy you'll probably hire an attorney. Attorneys charge a fee ranging from $1,500 to $2,500, payable up front. Its best if you have all your financial matters organized as this will help the attorney give you advice and, take some of the stress off of you. With today's economy, bankruptcy is commonplace. Most, if not all bankruptcy attorneys are extremely busy, so don't expect explanations or phone calls returned promptly.

Once your list of creditors is known and all required paperwork is done, the attorney will have your bankruptcy petition filed in your county. After the court accepts your petition, there will be a meeting of your creditors, a meeting you must attend. Some, not all, creditors might file an objection to your bankruptcy petition and may bring you to court regarding the balance of your account.

During this process, you are required to receive debt counseling. Also at this time you will be assigned a trustee. The trustee will overlook both the creditors and debtors filings to make sure everything is done properly under the law.

The day you file your Chapter 7 bankruptcy until the day it's done usually takes 3 months, depending on your situation. Chapter 13 bankruptcy means you will be repaying some of your debt; usually a lesser amount with lower interest. So, Chapter 13 bankruptcy can range from 3-5 years to complete.

What should you expect after your bankruptcy is complete? You should know that if you file a Chapter 7 bankruptcy it will reflect on your credit score for 10 years. Chapter 13 bankruptcy demonstrates you're taking some responsibility for your debt therefore your credit score will be affected for 7 years.

Please note: If you file a Chapter 7 bankruptcy you will not be permitted to file bankruptcy again for another 8 years. Also, Chapter 7 bankruptcy does not mean all debt will be discharged. Things like child support, most student loans, and any taxes (federal, state and local) owed will need to be paid by you.

Filing bankruptcy can be a daunting task. Think deeply about all the consequences you'll face, now and in the future. And, in today's world bankruptcy may be the only option. It's not your fault. Most Americans were unaware the economy was crashing. So, this guide to filing bankruptcy should help you to have an idea of what to expect. See if bankruptcy is an option for you. Knowledge is power.

Hi! My name is April. I've worked as a Bankruptcy Paralegal and know how things work. I have written this article to show you how to avoid bankruptcy. By going to my website, you will find more information and bankruptcy statistics. Please check out my website at http://www.savemoneysavetimenow.com

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Tuesday 20 October 2009

Effects Of Declaring Personal Bankruptcy

If you have reached a point where your finances are spiraling out of control and you can simply not afford to repay debts you owe within three years and even with significant cut backs and changes to your spending, then you are most likely in a situation where you are considering the possibility of declaring bankruptcy. And if that does apply to you, then you are probably wondering just what are the effects of declaring personal bankruptcy? What will the consequences be?

Well, first of all, take comfort from the fact that you are not alone in considering bankruptcy. And also, bear in mind that it is a legitimate means of getting a fresh financial start for those with no other alternative. But the effect on your credit rating will be negative. Bankruptcy is considered the ultimate admission, in many ways, of an inability to manage one's finances. It shows up on your credit file for ten years. During this time you will find it terribly difficult to obtain credit and even in situations where you are able to get credit, you will face extremely high interest rates are you will be deemed a high risk borrower. You can, however, with patience, sensible spending and discipline, rebuild your credit.

You should also consider the fact that this is a matter for public record and, as such, anyone can find out that you have declared bankruptcy. This can often be seen as one of the most embarrassing effects of declaring personal bankruptcy.

And another consideration, which tends to feature less with people, is the effect on the creditors. Ok, so it is one thing for a huge corporation to not receive a repayment, but what if your creditor is a small business struggling through the recession in a similar manner to yourself. Surely this ethical question ought to be considered.

Want to know how to manage your debt without losing control? Get the right information on Declaring Personal Bankruptcy before you make the important decision. To get the facts on bankruptcy, simply Click Here

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Is It Wise To Declare Bankruptcy?

People who are facing huge debts are prone to making drastic decisions. But acting hastily or impulsively can only worsen the problem. If you are thinking about bankruptcy as the solution to your problem, you may want to sit awhile and reconsider your decision. Is it possible to get out of debt without filing for bankruptcy?

Get Out of Debt Without Filing for Bankruptcy
In the past years, it may have been easy to file for bankruptcy and start anew. However, since the bankruptcy law has been amended, the process of bankruptcy has become more complicated that it was years ago. Today, before you can seek bankruptcy, you should first complete counselling with a government accredited credit counselling agency at least 6 months before filing. Your credit counselling should know whether or not you are a candidate for bankruptcy. If not, your counsellor should help you find a more appropriate solution to your debt problem.

Another thing worth noting is that filing for bankruptcy does not guarantee that you will be completely exempted from paying your debts. After submitting your application, you will need to take up the Income Means Test to determine whether you can qualify for a Chapter 7 or Chapter 13 bankruptcy. Remember, a Chapter 7 exempts you from your debts overall while a Chapter 13 puts you under a repayment plan supervised by the bankruptcy court.

Financial experts do not recommend bankruptcy unless all possible solutions have been tried. Before thinking about bankruptcy, look for other ways to recover from your debts. Possible options include negotiating with your creditors, taking out a consolidation loan, seek credit counselling, consolidate credit card debts with a balance transfer card, and effective money-management or budgeting. Have you already tried taking these steps?

If you have really decided to declare bankruptcy, the best way to do so is to hire an attorney who specializes in bankruptcy cases. Your attorney should be able to advice you about the advantages and possible consequences of bankruptcy. Furthermore, filling out a bankruptcy application is not at all easy and you need to make sure that all information you provide are true and correct. With the help of a bankruptcy lawyer, you can be more confident that you're submitting a valid application.

Aside from the complicated process, a record of bankruptcy in your credit report would make it more difficult for you to start anew. Bankruptcy would stay in your report for up to seven years and throughout that period lenders would deem you as a high risk borrower.

Although, there are some lenders who still offer loans or new credit to those who have been discharged from bankruptcy, these loans often come with expensive interest rates and fees. Rebuilding your credit would need time and can prove to be more difficult if you have a record of bankruptcy in your report. Yes, bankruptcy is not a helpless case but if you can resolve your debts without bankruptcy, you will be in a much better position to rebuild your credit.

Liz Roberts is a freelance writer and loan consultant. The website BadCreditResources.com offers resources that specialize in providing bad credit loans and credit cards for bad credit.

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Are There Alternatives To Bankruptcy?

Many people are struggling to regain their financial footing and don't know if there is any way out. They have looked at bankruptcy as an option, but they are scared of what the future holds. Is there any way out of overwhelming debt, or is bankruptcy the only option?

Well, bankruptcy is certainly not the only option, but it really depends on your particular circumstances. No one can decide that but you, although the help of a professional financial advisor and bankruptcy attorney would be helpful.

One lawyer told me that you should ask yourself whether you can expect to pay off your debt in the next two years by making reasonable adjustments to your budget. In other words, can you make financial sacrifices and pay off your debt in the next few years without living in what for you would be unreasonable conditions? Now I know the answer is subjective, because you may have different standards of living in your mind as you read this. However, the point is that you have to make reasonable sacrifices.

Simply adjusting your budget and not using your credit cards to purchase something you cannot afford should go without saying. In addition, you may consider debt negotiation companies that can help you settle your debt with the credit card company. However, the downside is that you would have to, in many cases, stop paying your bills for several months and damage your credit significantly in order to get the credit card companies to take notice and agree to a settlement.

If you're at the point where your credit score is the least of your worries, you should at least consider bankruptcy as a solution. Speak to a bankruptcy attorney about your options, and remember that you are under no obligation because you are the ultimate decision-maker.

Don't let debt take over your life. Call (877) 212-7608 (877) 212-7608 for a Free, No-Obligation Bankruptcy Evaluation. Or Click Here to visit us at http://freebankruptcyevaluation.org

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Before You Declare Yourself Bankrupt, Get the Facts About Bankruptcy

I know it can be difficult to think clearly when you've lost your job or have a huge number of bills that you can't seem to pay off. If your credit card bills or medical bills (or any other expenses) are simply overwhelming you, you may be desperate to declare bankruptcy and find some breathing room for you and your family.

However, it's important to make sure that you've looked into all of your options carefully before making a decision. You should never make such a big financial decision out of panic and fear. Have you exhausted all of the reasonable alternatives to bankruptcy?

Have you tried to work with your creditors to reach a settlement agreement or reduce your interest rate? What about a part-time job that can bring in some extra income and lower your debt much more quickly than you might imagine?

These kinds of solutions are not always possible, and they may not fit your particular set of circumstances. Nevertheless, you should investigate them thoroughly in order to make the most informed decision possible for the financial future of your family.

Also, you want to make sure that you have identified the root cause of your current financial crisis. If your problems are the result of undisciplined spending (as they so often are in these cases), then you must go after this lack of discipline if you hope to ever achieve a better financial future.

Other measures such as transferring your credit card balance to a card with a lower interest rate are not going to solve your problems in the long term if you continue to make additional charges with no reasonable plan to actually pay things off.

Remember that a bankruptcy lawyer can help you identify the pros and cons of declaring bankruptcy, so make sure to schedule a visit before making any final decisions.

Don't let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn more about declaring yourself bankrupt visit us at http://personalbankruptcyquestions.org

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