Bankruptcy Chapters
Article
The Benefits of Bankruptcy
After the current bankruptcy law went into effect in 2005, many people were left with the impression that bankruptcy relief was no longer available or too difficult to obtain. Nothing could be further from the truth.
Article
The Myths of Bankruptcy
Like most formidable situations, bankruptcy has earned its reputation based on very few truthful facts and too many false embellishments. The majority of the myths about bankruptcy have begun since the current bankruptcy laws went into effect in 2005. But have no fear, once you know the facts, filing for bankruptcy is not nearly as terrifying as it first appears. Here are some of the most common myths about bankruptcy and what you need to know before you clean your slate.
Myth #1: It is difficult to file for bankruptcy.
FAQ
What should I look for in a bankruptcy attorney?
You should find out the experience level of your prospective attorney. Ask how many bankruptcy cases they deal with a year and how long have they have practiced bankruptcy law. Additionally, they should be honest, efficient, and have a great reputation.
FAQ
What are some of the pre-filing mistakes people make?
Once someone decides to file for bankruptcy, there are several pitfalls they often fall into. Some decide they want to accumulate debt in hopes of having it restructured in bankruptcy. Others ignore their current situation and pay back family and friends or ignore lawsuits filed against them. Others make the mistake of trying to save money and represent themselves in bankruptcy. Some even aren’t completely honest about their financial situation with their lawyer. All are costly mistakes.
FAQ
Which type of bankruptcy is right for me?
The answer to this question primarily depends on whether or not you would like to keep your home. If you are fine with your home being sold to reconcile your debt with the mortgage company, Chapter 7 is probably the right choice for you. If you would like to remain in your home, then Chapter 13 is your desired filing status.
FAQ
What are some of the myths of bankruptcy?
There are numerous myths that people believe about bankruptcy. These include the belief that they will never be able to borrow money again; that both spouses in a marriage will have to file for bankruptcy; and that it is difficult to file for bankruptcy. Other people wrongly believe that filing for bankruptcy helps their credit rating or that they can only file for bankruptcy once.
FAQ
Who qualifies for bankruptcy?
Qualifying for bankruptcy differs from state to state and is complicated to determine. A means test was recently established to determine who is qualified for what type of bankruptcy. Suffice to say, around 70 percent of people who file for bankruptcy qualifies.
FAQ
What are the types of bankruptcy?
The two types of personal bankruptcy that individuals can file under are Chapter 7 bankruptcy, often called a liquidation plan, and Chapter 13 bankruptcy, often called the debt restructuring plan.
FAQ
What are the benefits of bankruptcy?
The benefits of filing for bankruptcy are numerous. First of all, bankruptcy restructures your debt, making it more manageable. Bankruptcy also offers peace of mind by eliminating the burden of dealing with creditors and the obligation to pay off debts. Moving forward, filing for bankruptcy helps you get a new start and equips you with useful financial skills.
FAQ
What are my non-bankruptcy options?
There are a number of options people have to avoid filing for bankruptcy. First, they can sell assets and restructure living expenses. Other options include home equity debt consolidation loans and credit counseling services. Additionally, they can proactively negotiate payment terms with their creditors.
FAQ
How do I rebuild my credit after bankruptcy?
A bankruptcy legally can stay on your credit report for up to 10 years. The first way to rebuild your credit is by making sure that all accounts are included in bankruptcy and don’t remain open. The primary way to build back your credit score is by attaining and using credit. Sometimes that means applying for secured credit cards, which are usually reserved for people with poor credit, but rebuilding your credit can also include car payments. However, be prepared to pay hefty interest on these loans.
Article
Four Questions To Ask a Bankruptcy Lawyer Before Signing
Bankruptcy law has gone through many changes in recent years, which makes a good lawyer more important than ever for a successful bankruptcy case. It is also important to be fully informed about what a prospective lawyer can offer and what to expect from them. If you are talking to a bankruptcy lawyer, here are four questions to ask them before signing a contract:
Article
Who Files Chapter 13 Bankruptcy?
In October 2005, the laws which govern Chapter 13 bankruptcy changed. One of the more significant ways the law changed dealt with the eligibility requirements for filing for Chapter 7 and Chapter 13 bankruptcy.
Article
Stop Repossessions with Bankruptcy: How Your Vehicle Can Survive The “Repo Man”
In these difficult times, with thousands of people losing their jobs every month, it can be hard to keep up with all the expenses, especially when the bills keep coming. Falling behind on payments for a vehicle happens to the best of us. Sometimes life deals you adversity like an unexpected medical bill, a work related layoff or some other situation that no one plans for in the budget. You don’t have the money for it, but if you put off the car payment, you can get the bill paid, and hopefully can catch up on the car payment next month.
Article
New Bankruptcy Law Explained
On October 17, 2005, new bankruptcy law went into effect, changing the process of filing for bankruptcy throughout the United States. This new shift in law requires additional steps to be taken by the attorney and the debtor but has been geared toward benefiting the debtor with the end result. The following details explain the changes in the law and how they will affect anyone considering bankruptcy.
Article
How Flexible is Chapter 13 Bankruptcy?
Before filing for bankruptcy, it is crucial to understand all the facts. Since you may not be an expert in bankruptcy law, the questions you might have about the process have answers that are anything but clear. Not only are there different types of bankruptcy, Chapter 7 and Chapter 13, but there are also significant differences between the two.
Article
Does My Chapter 13 Payment Change With My Income?
The decision to file for bankruptcy is not one to take lightly. With the multiple bankruptcy plans available and the changes to bankruptcy law that occurred in 2005, it is important to be an informed about options from various scenarios. If you are considering filing for bankruptcy but have concerns about what may happen should your income change, here is an overview of the facts.
FAQ
What are some of the warning signs of accumulating debt?
Some of the warning signs that you are accumulating too much debt include a lack of money in savings and paying only minimum payments on credit cards while continuing to make new purchases on those cards. Additionally, if you find yourself making late payments on bills or credit cards, bouncing checks or over-drafting your checking account, you are accumulating too much debt.
Article
Bankruptcy for Small Businesses
The entrepreneurial spirit is one of the touchstones of American culture that has made our country so strong. The willingness of driven individuals to step out and risk their financial stability for the sake of a business they believe in has been a catalyst of our country’s growth. However, a recent study by the University of Nevada showed that one in seven bankruptcies are filed by individuals tying to cope with the failure of a small business.
Article
Bankruptcy Property Exemptions
The process of bankruptcy offers debtors a clean slate when they are overwhelmed by financial burdens. Once a bankruptcy case is completed, however, the debtor will still need basic possessions and assets to move their life forward. Fortunately, the Bankruptcy Code recognizes these basic needs and provides a variety of property exemptions for debtors. If property is exempt, it will not be subject to the seizure of creditors.
Article
The Role of a Trustee in a Bankruptcy Case
Ok, you are getting a fresh start on your financial situation and have filed for bankruptcy. One of the major players that you are going to be interacting with is a bankruptcy trustee. A bankruptcy trustee is a lawyer assigned to overseas your bankruptcy case. Their role in the case differs as to whether your bankruptcy case is Chapter 7 or Chapter 13.
Article
Does My Chapter 13 Payment Change With My Income?
The decision to file for bankruptcy is not one to take lightly. With the multiple bankruptcy plans available and the changes to bankruptcy law that occurred in 2005, it is important to be an informed about options from various scenarios. If you are considering filing for bankruptcy but have concerns about what may happen should your income change, here is an overview of the facts.
