Bankruptcy and it’s Benefits
Benefits of Bankruptcy
By declaring bankruptcy, a person is able to clear most of his debt and start a fresh lease of debt free life. Read on to know about the benefits of bankruptcy.
During the last century, any person who is unable to repay his debts was jailed. When in the debtor’s jail the bankrupt person had no hopes or opportunity to repay his debts, unless he was fortunate to have a family member clear it. It was a dead end, but in today’s world, debt management could be done by debt counseling. Debt consolidation could be an avenue for clearing debts if used wisely.
What is bankruptcy? It is defined as a process by which a debtor clears his debts with the help of the Bankruptcy Court (Federal Court). A debtor can file for bankruptcy under the bankruptcy laws of Chapter 7 and Chapter 13. Filling for bankruptcy is the last resort because it can blemish the credit report for nearly ten years. A debtor files bankruptcy based on the amount he owes his creditors. Depending on his type of debt he can choose the form of bankruptcy – Chapter 7 and Chapter 13.
If Chapter 7 is the form of bankruptcy chosen by the debtor, the court cancels all his debts provided he surrenders all his properties. However, if he chooses the Chapter 13 as his form of bankruptcy, he is allowed to keep his properties but he has to deposit a stipulated amount in the court to clear off his debts. Under this law, the debtor would be asked to approach a reputed debt counselor who would help him to create an effective financial plan based on his income.
Positive Side of Bankruptcy
It is true that society still looks down on people who declare bankruptcy. However, there is a positive side of bankruptcy. It provides immense relief to many a people who are sinking in debt. Here are a few benefits of bankruptcy.
When you file for bankruptcy, your debts are cleared off and you have no legal obligation toward your creditors.
One of major benefits of bankruptcy is the prevention of wage garnishment (The process of deducting money from the salary account of an individual to clear off his debts is known as wage garnishment).
When a person files for bankruptcy under the bankruptcy law Chapter 13, then his properties such as house and car will not be attached to the Federal court to pay off his debts. If any of his creditors had previously taken away his possessions, they will be given the instruction to return the properties back to him.
If you have lapsed on the payment of your utility bills, the utility service providing companies cannot disconnect utility services such as your cable TV and telephone (land and cell). In case they have disconnected they would have to restore the connection immediately.
If you have a loan liability such as a home loan liability and you are unable to clear off the principal and interest amounts, the bank, which granted the loan, can start the process of foreclosure. However, if you have filed for bankruptcy, the concerned bank would have to halt the process of foreclosure and give you certain time period to clear the outstanding loan amount. This is one of the benefits of declaring bankruptcy.
Declaring bankruptcy would help you to clear off many of your debts and give you a fresh start. However, you should be aware there are a few non-dischargeable debts such as a student loan and certain type of taxes which cannot be cleared by declaring bankruptcy.
You should be aware of the fact, if you have chosen Chapter 7 as the form of bankruptcy, then your co-signer or the guarantor would be held responsible if you ever lapse in clearing your debts. On the other hand, bankruptcy under Chapter 13 will not hold the co-signer responsible if the debtor defaults or strays from his financial repayment plan.
It is important that one gets a debt advise from a reputed debt counselor before filing for bankruptcy.
| By Maya Pillai Published: 12/30/2008 |
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Bankruptcy Alternatives: Is there an Alternative to Filing Bankruptcy?
Bankruptcy Alternatives: Is there an Alternative to Filing Bankruptcy?
Due to its devastating effects over a long period, a question constantly arises – is there any Alternative to Filing Bankruptcy? Yes, there are! Although bankruptcy provides a new platform for the individuals trapped in debt, one has to carefully consider bankruptcy alternative before filing it.
Enlarge Image Lured by the attractive loan schemes, you may sometimes land yourself in a situation where you will lose the balance between your monthly income and monthly expenditure. It is a financial catchy position where you can find it difficult to make your monthly payments. May be you are thinking about filing Bankruptcy. But do you know, declaring Bankruptcy may not be the last option available. Do you know there are alternatives to Filing Bankruptcy?
Filing for bankruptcy is a difficult decision to make. While filing Bankruptcy can assist you in alleviating your dues and debts, it can also affect you more adversely than you can think of.
Bankruptcy can have disturbing effects on personal and professional life for longer duration. It affects your credit rating and borrowing capacity in near future. Hence, declaring bankruptcy should be considered as last resort.
Reasons for finding Bankruptcy Alternatives
There are other alternatives available which can pull you out from such awkward positions. There are numerous reasons for people to avoid bankruptcy.
1. People filing bankruptcy have to bear the loss of their assets. In most of the cases court used to sell those assets like house, plot or even car to clear off debts.
2. When ever you file for bankruptcy, then control goes to the magistrate handling your case and your fate can be decided by him judging the information received by Official Receiver.
3. Bankruptcy has a very devastating effect on your credit history for at least next 7 years. With such a poor credit score it becomes very difficult to get a loan or mortgage to start a fresh life.
4. Declaring bankruptcy can ruin your career prospectus. There are certain careers which do not accept you if bankrupt. Even there are few restrictions on being director or owning business.
5. Being bankrupt hampers your social life to much extent. It is quite embarrassing situation once your bankruptcy gets advertised in newspaper.
Bankruptcy Alternatives
In October 2005, the bankruptcy Abused Prevention and Consumer Protection Act was came in to force. So before you make any decision to find bankruptcy considers all your options, alternatives and choose the best one for your situation.
1. Judgment proof: This is the most basic alternative. Simply you have to take no action at all. With a very small income, if you owe money to creditors you may be considered as judgment proof also known as collection proof. That means if your creditor sues you, he just won’t be able to collect because you don’t have any thing which they can legally get hold of. So in most of the cases creditors may decide to write off your debts. But you have to keep one thing in mind that if your financial condition gets improved in future then you will not be consider as judgment proof any longer.
2. Call Creditors: Don’t try to shun off from the situations. It is always better to call the creditors and convince them about your financial situations. They may come up with an alternative pre-payment plan which can get you out of this catchy situation.
3. Chalk out the Budget: Before arriving to any decision of filling for bankruptcy, take a good look at your detailed information of monthly income and monthly expenses. This will help you in better understanding of your resources and a more organized way can avoid bankruptcy.
4. Balance Transfer: In some cases you will be able to transfer your loans from higher interest rates to lower ones. You can also apply for a new credit card which can offer low interest rates. But be sure of the introductory lower rates as they do not serve the purpose.
5. Refinancing Loans: If you are credit worthy or in good books of your creditors you can get a refinance with better terms which can help you to clear of the previous debts to higher rates.
6. Negotiations and Settlement: If you are confident enough that this adverse, tricky financial condition is temporary, then with Negotiation and Settlement with your creditors your benefits are higher. In this process you have to negotiate with creditors and work out a new re-payment plan.
7. Credit Counseling Services: Instead of negotiating personally you can contact these agencies which normally are nonprofit organizations and you can found them on United States Trustee’s associated website. These agencies work with the aim of reduction of interest rates or full amount of debt.
8. Individual Voluntary Arrangement: It is a good alternative to bankruptcy. It is a formal proposal by the individual to his creditors to re-pay a percentage of total loans over a certain period of time (in most cases it is usually 5 to 7 years). With this alternative sometimes as much as 60 % of the principal amount is written off. Even monthly payment can be kept very low.
There has been a great increase in number of people choosing the alternatives for bankruptcy of late. As there are many benefits like keeping our own assets, having no effect on professional qualification, no adverse effects on social status and credit scoring; you have to consider all your options carefully before filling bankruptcy.
| By Jayashree Pakhare Published: 3/25/2007 |
Nonprofit debt consolidation will help you get rid of debt. Your credit scores will rise as your debt amount is lowered, and as you make monthly payments on time. Debt consolidation will help you have relief from the stress that comes.
Get Rid Of Your Debt
It Is Now Easy To Get Rid Of Your Debt. Posted by :. Filed under : General. When you start using many Credit Cards at a time you may have the purchasing power to buy many things at a time.
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It is a good thing not to get in more debt too. Be certain to make your schedule payments on time. This is the best method for getting rid of debt and avoiding it too. Along with this you want to make plans on what money you can spend.
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The Difference Between Chapter 7 and Chapter 13 Bankruptcy
Types of bankruptcy – Chapter 7 and 13 Bankruptcy
There are two types of common bankruptcies filed by individuals or petty businessmen. Chapter 7 and 13 Bankruptcy is meant for those people who are trapped in debts but want to start a new life with a clean slate.
Enlarge Image In the modern scenario, we can find many people trapped in a large quantity of debt. The reason lies in the easy accessibility of credits and loans compared to the past. Nowadays, we often experience the continuous bombardment of tempting advertisements narrating how easy it is to get a quick loan. We often get lured by these card invitations, advertisements and the tempting advantages these cards do offer. No wonder, most of us land in a situation where our monthly expenditure is more than our monthly income. The result- naturally, Bankruptcy!
Debt can have very adverse consequences. It can affect you both financially and psychologically. That’s why it is of immense importance to get quickly into action to solve this problem. There are ways like negotiation or seeking help of debt Management Company. But if it is too late to solve this financial mess, then don’t get dishearten. There is still a way out. In such situations, filing for bankruptcy is often the most sensible answer.
Filing for Bankruptcy
Congress has created Bankruptcy Law to help people trapped in such debts and who need help to get a fresh start in life. For Many people it is often an embarrassing situation to file for bankruptcy. They feel very uncomfortable when it comes to exercising their right to file for bankruptcy. But for most of the people, this can be their life time chance for getting a new financial lease. Although, a recent amendment in the previous law has made it much more difficult to exercise the filing for bankruptcy, it is not still impossible. Certainly, the procedure has been lengthened a lot compared to past; there are expert lawyer firms and counseling centers to help you out to exercise your constitutional right.
There are different options available to file the bankruptcy and you have to find out which option suits you most with the help of your experienced lawyer. Basically, there are two main types of bankruptcy, known as chapter 7 and chapter 13.
Chapter 7 bankruptcy
A chapter 7 bankruptcy, the most common type of bankruptcy is also known as straight bankruptcy. The proceedings involve liquidation of the entire borrower’s non-exempt property. The amount that is obtained through selling of these assets is then turned over and dispersed among his creditors to pay the debts. Certain assets are exempted under chapter 7 bankruptcy like your house, your car, your tools of work and business, and a number of personal items. This exemption varies with the state and federal laws.
After completion of the bankruptcy proceedings, the court discharges the borrower from all his debts. He is no longer legally responsible for the debts. Then he can start over his new life with a clean slate. Still, for next 10 years, the record of the bankruptcy remains attached with his credit history.
Eligibility – Person having residence, property or business in the United States can file for chapter 7. Again, the person should not file the bankruptcy to get out of debt. It will be only considered as valid if borrower lacks sufficient funds after living expenses, to repay debt. Additionally, he should not have any history of Chapter 7 or 16 bankruptcies in the past 6 years and should not have applied for the same which has got dismissed in the last 6 months.
Procedure – Chapter 7 bankruptcy is intended to help candid citizens who have inadvertently landed themselves in a financial trouble. At first, several forms are needed to be filled out to give all the information. Try to use computer generated data to fasten the processing. Around 40 days after filing, you have to attend the court for the First Meeting of Creditors. After the meeting, the court discharges the person of all debts within 70-75 days.
Chapter 13 Bankruptcy
Individuals who are in possession of valuable assets like a home or other property that is not covered by exemptions of Chapter 7, generally prefer Chapter 13 bankruptcy. By filing for Chapter 7 bankruptcy they can lose their valuable property.
Here, one has to understand the most important and distinguished aspect of Chapter 13 bankruptcy. Contrary to Chapter 7 bankruptcy, it does not release all due payments immediately. On the contrary, the debtor offers to pay the debt to the creditors over a short period of five years. He has to plan monthly payments and then submit a payment schedule to the court.
Eligibility -
To be considered as eligible for filing, the individual should not have secured debts over $750,000 and unsecured debts over $250,000.In case of possession like vehicle, the secured creditor retains the right of full disbursement of due payment if the date of purchase lies within 30 months from the date of filing. Again that individual should not have received a discharge under the same clause within last 2 years or under chapter 7, 11, 12 within last 4 years. Debts due to student loans, penalties for criminal offences, drunken driving injuries are not liable under chapter 13.
Procedure
The first step involves the filing of the petition with the court corresponding to the residential area of debtor. Within 15 days of filing the petition, he has to submit the plan of scheduled payment. Court then appoints an impartial trustee who works as a link between creditors and debtors. Within 30-50 days of submitting plan, a meeting of creditors is called. The judge then validates the repayment plan taking all aspects into account. After confirmation of the plan, it is solely debtor’s responsibility to release the payment on due dates, failing to which poses a threat of reverting the case to chapter 7.
It is always better to seek an advice and help of an expert lawyer while filing.
| By Jayashree Pakhare Published: 3/7/2007 |
It is defined as a process by which a debtor clears his debts with the help of the Bankruptcy Court (Federal Court). A debtor can file for bankruptcy under the bankruptcy laws of [...]
The chapter 13 trustee objected to the discharge. The bankruptcy judge denied the discharge in the chapter 13 on the basis that he had received a discharge in the chapter 7.
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Bankruptcy:The Truth of Credit
Most people first try to file for bankruptcy under Chapter 7, since some of the debts could be discharged. Under Chapter 7, most cases are settled in 4 months.
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Filing Bankruptcy Without an Attorney
Filing bankruptcy without an attorney is absolutely doable, but I certainly don’t advise it. Read this post here so you can understand a little better the process of a bankruptcy.
When Hiring a Lawyer, It’s Important to Find a Specialist
The days of the legal generalist are over. While there are still lawyers who offer to do any kind of work that comes their way, the complexity of the legal system and the complicated lives we all lead almost require that prospective clients shopping for a lawyer look for someone who specializes in their type of legal issue.
Attorneys can range from corporate and real estate lawyers to those specializing in social security claims, workers compensation appeals, labor disputes, and personal injury law. Each specialty requires an understanding of state and sometimes federal laws and regulations that define how any dispute will be decided.
So how do you know which lawyer to hire? First, you need to understand what issue or issues you are facing. Some will be easy to define; if you’ve applied for social security disability insurance and been denied, for instance, you need a lawyer who deals with federal disability issues.. If you’ve been injured in an auto accident, the issues can be more complex. You may have to deal with your health insurance company, your auto insurance company, the auto or liability insurance companies of others involved in the accidentwhich can sometimes be multiple partiesplus the police, hospitals, ambulance providers, and so on. You will need someone who can sort out all these issues and protect your interests in the process.
When hiring an attorney, you need to ask a lot of questions; for instance:
Does this case represent a specialty of yours?
How many cases have you handled on this issue?
How many times have you gone to trial over this issue?
How many claims have you settled out of court?
How many times have you won a case like this?
What chance do I have to win my case?
What type of financial or other type of settlement can I expect?
What will it cost me to pursue this case? Make sure you understand both the fee structure and other expenses, such as court filings, copying and telephone costs, and the many other expenses that can quickly add up.
Make sure you have someone with a track record for your particular type of case, and someone with a commitment to your interests. If you get the idea that your case will get short shrift, go elsewhere.
Criminal law is another specialty, and one with potentially high stakes. Your liberty and sometimes your life may be at stake; so if you are faced with a criminal proceeding of any kind, hire a criminal lawyer. Accepting help from Uncle Harry who has had twenty years of experience with real estate law is not an optionat least not if you value your freedom.
Still not sure what kind of legal representation you need? Contact your state’s legal association; look in the Yellow Pages under "attorneys," or call your state attorney general’s office and ask to be referred to the state legal organization. Someone there should be able to listen to your problem and provide a referral to an attorney that specializes in your issue.
| By Aldene Fredenburg Published: 12/16/2006 |
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Bankruptcy Attorneys Houston
Why You Should Employ a Bankruptcy Lawyer to File Bankruptcy
More than 2 million people filed for bankruptcy in the United States in 2006. It is extremely important to know when to file bankruptcy and what to do after bankruptcy. A bankruptcy lawyer will help you to set your assets in order and smoothly take care of the filing for bankruptcy.
Bankruptcy can be an overwhelming blow to an individual, a small business, or even a multi-million dollar corporation. The allocation of funds, the audits, the creditor claims, and the claiming of assets may be too much for the whole staff to handle, leave alone a single individual. More and more people are filing and declaring bankruptcy when faced with unmanageable multiple debts. (More than 2 million people filed for bankruptcy in the United States in 2006). It is extremely important to know when to file bankruptcy and what to do after bankruptcy. A bankruptcy lawyer will help you to set your assets in order and smoothly take care of the filing for bankruptcy.
File for bankruptcy with the right legal help
Under the new Bankruptcy Act of 2005, credit counseling or other options may be required. Finance professionals generally suggest that you assess your financial situation before filing for bankruptcy, as often debtors file bankruptcy without first exploring other options to settle their debts. However, if it is unavoidable, they advise debtors to seek professional help such as financial lawyers to help them understand the process and its effects. You also need to get familiar with new bankruptcy law even though you are taking legal help.
Filing for bankruptcy is complex for average people
The proceedings involved in bankruptcy are supervised by and litigated in the United States Bankruptcy Courts. There are several bankruptcy codes in America and it is very stringent regarding how to file bankruptcy. Bankruptcy codes are very confusing and deal with all of the many different classes of bankruptcy that a business or person can file. It’s important to note that even though people can file different bankruptcy forms, there is only one prime bankruptcy code which deals with all of the different types of bankruptcy in the United States of America. The bankruptcy attorney decides which chapter of the code best fits the situation and accordingly he will decide to file under chapter 13 or chapter 7.
5 Helpful Tips to select Bankruptcy Attorney
1. You should contact local bar association to get a list of lawyers in your community who specialize specifically in the practice of bankruptcy law. If you are filing a personal bankruptcy case, you need to select a lawyer who is specialist in personal bankruptcy.
2. You should do your research on bankruptcy and bankruptcy lawyer in internet. You can plenty of newspaper articles, bar association notices and other information about lawyers.
3. You also should concentrate on word of mouth information. You need to listen what your friends, family members and colleagues have to say about one attorney or another.
4. You need to personally meet your lawyer before employing him. Lawyer should be attentive to you and understand your current situation.
5. Before finalizing the attorney, you need to check her fee structure. This will help you to bring order to your chaotic financial house both in the short and the long term
Choose a lawyer who takes services from Bankruptcy Assistance Company
Bankruptcy attorneys are often handling several cases at the same time. They have to file forms, answer inquiries and prepare petitions for different clients. This might result in an important detail being overlooked. Bankruptcy assistance companies see this as a business opportunity to have stable clients and a wide market. The assistance company’s staff also has to undergo specific training before becoming bankruptcy associates.
How Bankruptcy Assistance services help clients and lawyers
Both debtors and bankruptcy lawyers benefit alike by having the hassles of 
preparation reduced. They field questions from clients and relieve bankruptcy lawyers from answering the same queries from several clients
Bankruptcy associates also alert the lawyers of possible problems concerning a client’s application. They research through interviews and other means to get the necessary information pertinent to the application. Normally bankruptcy lawyers bear the cost of bankruptcy assistance because money is the main concern of bankrupt clients.
A bankruptcy lawyer is well worth his cost. It will pay rich dividends through peace of mind, simplifying the procedures and probably actual money saved in following your bankruptcy attorney’s advice.
Here, we are talking about bankruptcy that will be on your credit report for 10 years – spend the money to get a serious and reputed bankruptcy attorney who will work for you, not for his or her own self interests.
Are you bankrupt and trying to get homeloan? Here you will find excellent information on home loans after bankruptcy
| By Arindam Chattopadhyaya Published: 1/26/2007 |
Are you looking for Houston Bankruptcy attorneys?
Get information on all your Texas Bankruptcy needs in one place.
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Bankruptcy Attorneys Corpus Christi Texas
How to select a bankruptcy attorney
If your present financial situation requires that you consult a bankruptcy attorney, it’s important that you are very selective in the process.
Finding the right bankruptcy attorney will take a little bit of effort to research their track record and make a sound decision that you’re getting someone with experience and dedication to bankruptcy law and nothing else.
When you find yourself in financial crisis and other alternatives do not seem to provide a feasible solution, you need to begin considering filing bankruptcy as a way to protect yourself and any assets you may want to retain from your creditors. Equally as important as this decision is that of selecting the right bankruptcy attorney. Most bankruptcy attorneys are associated with a law firm, so it’s important that your research goes beyond that of the individual alone.
Find an experienced bankruptcy attorney
Make sure you file with an attorney who has years of experience working in the field of bankruptcy, some law firms cover several specialties, rather than specialize in bankruptcy law. This can have a negative effect on your case if you file with an attorney who only deals with bankruptcy cases occasionally. Finding a seasoned attorney who understands the laws of the bankruptcy code in your state to file your case with will make a huge difference in the outcome. Also make sure the law firm or attorney are able to guarantee your case will be filed accurately.
Find an attorney with low flat fees and payment plans
The attorney or law firm should understand that you have a huge financial problem and you may not be able to shell out their fee in full, which can range from $700 to $1700 depending on which state and city you live in. When you find an attorney who’s willing to give you payment options it shows that they understand your situation and are sympathetic to the fact that you are strapped for cash.
Find an attorney that offers free consultations and evaluation of your bankruptcy case
Personal bankruptcy is one of the toughest decisions you’ll ever make, with so much pressure and the creditor harassment you may be experiencing you don’t want to be worried about spending unnecessarily and a bankruptcy consultation should in fact be free. Your attorney should put your needs first by providing a free evaluation of your current financial status. If the attorney you contact insists or refuses to waive their consultation fee, look for another attorney. There are too many law firms and individual bankruptcy attorneys who are happy to offer free consultations, there’s no need to pay for one.
Evaluate the attorney and client relationship from the beginning
You need to feel comfortable with your attorney, a good bankruptcy attorney will be able to guide you through this difficult time by providing not only the adequate bankruptcy service you need, but by being understanding and sympathetic to your case. They should be able to relieve the pressure you’re under and you should walk out of their office feeling comfortable about your decision to file personal bankruptcy. Your attorney should also have the willingness to answer your questions however specific they may be.
Do not worry about location and proximity
Whether you file chapter 13 or chapter 7 bankruptcy, you should not limit yourself to filing with just any attorney because their office is 10 minutes from your home. We’re in the age of information and electronic communication, and everything you need to file your case can be done electronically (email, fax etc) starting with your free evaluation. More cases are being filed online with bankruptcy law firms across the nation, remember that you want the most experienced and most economic service so don’t overlook filing bankruptcy online.
Credit report assistance after your bankruptcy discharge
You’ll more than likely find that filing personal bankruptcy begins to show its effects about three months after your discharge when you check your credit report and find that you have accounts that are still labeled delinquent, late or in collections. Your bankruptcy attorney should be able to recommend a path for solving these discrepancies which can certainly hurt you when you begin to rebuild your credit.
Research your chosen bankruptcy attorney or law firm
It’s important that you do some digging and check the worthiness of your chosen bankruptcy attorney, one of the best sources of information for consumers is the Better Business Bureau website. Any business, company, corporation or law firm that cares about providing quality service is registered with the BBB. If your chosen attorney or law firm is not, then at least gather some referrals to see what level of service they have provided in the past. Remember that experience is important and the track record that the BBB will reveal about your attorney will either give you reassurance or make you think twice about hiring them.
Find an experienced bankruptcy attorney in your state, city or local area. Star with a free online evaluation and get connected to a professional to handle your case and give you a clear idea of where you stand financially and what options within the bankruptcy code will benefit you the most. Our Bankruptcy Information is always free.
| By Charles Perez Published: 9/4/2008 |
What is the mean income in Texas chapter 7 bankruptcy?
How to file bankruptcy in Texas?
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How to File Bankruptcy in Texas
Are you wondering how to file bankruptcy in Texas? The first step is understanding what bankruptcy is.
There are 2 different kinds of bankruptcy that you and I can file. One is a chapter 7 (outlined below.) Once you have the basic idea about what chapter you think would be most beneficial for you, the next step is deciding if you should get a bankruptcy attorney. Future posts will explain the difference between a chapter 7 and chapter 13 bankruptcy, and go into more detail about whether or not you should hire an attorney for your bankruptcy or do it yourself.
Chapter 7 Bankruptcy Overview And Characteristics
A successfully filed Chapter 7 Bankruptcy completely discharges, or wipes out, most unsecured debts, including but not limited to credit cards, medical bills, utility bills, payday loans, and any other debts that do not have collateral or a hard asset attached to them. Chapter 7 bankruptcies are the most common type of bankruptcy and are commonly referred to as a "Fresh Start" Bankruptcy.
Characteristics of Chapter 7 include:
1. Permanent Discharge of Unsecured Debts
In general, all or nearly all unsecured debts are eligible for discharge in a Washington State Chapter 7 bankruptcy. These are debts that have no assets attached to them. For example, the following are all typically discharged in Washington Chapter 7 bankruptcy: credit cards, unpaid medical bills, repossession deficiencies, signature loans, payday/cash advance loans, most collection matters, and nearly all lawsuits. Certain debts, however, such as student loans and back taxes, probably will be eligible for discharge.
2. Permanent Discharge of Secured Debts if the Secured Property is Surrendered
If you choose to surrender property that is carrying a debt balance, these debts are typically permanently discharged as well. For example, the secured loan on a car is wiped out (discharged) if you allow the car is repossessed or simply forfeit it and where you owe more than the car is worth (a repossession deficiency). If not already repossessed, the property can be surrendered before or after you file for bankruptcy.
3. Automatic Stay
After you sign off on your Washington State Chapter 7 Petition, our offices will electronically file it in United States Bankruptcy Court. Immediately upon filing, the court enters an order protecting you from all creditor action. In so doing, the Bankruptcy Court orders all creditors to stop all harassing phone calls, lawsuits, threats, judgments, repossessions, and garnishments. This protection Order is known as the "Automatic Stay".
4. Keep Exempt Property
Most people are able to keep all of their property in a bankruptcy. If you have furniture and household goods of average value and are willing to keep up your car payment(s), you will most likely keep all of your personal property. Retirement accounts (401(k), IRA, etc) are also exempt property that you will be allowed to keep following a final discharge of your unsecured debts in a bankruptcy proceeding.
5. Keep your House
In a Chapter 7 bankruptcy, you may continue to pay your mortgage or your car loan and keep the house or car by signing a "Reaffirmation Agreement" or, in most cases, by simply remaining current on your secured debts and continuing to make the regular payments. In effect, a reaffirmation agreement takes the place of your original agreement and essentially makes it as though you have not filed a bankruptcy on those particular loans. In many instances, however, we do not recommend filing a reaffirmation agreement. We simply recommend that you keep making your monthly payment.
Usually homeowners who file for bankruptcy do so because they do not have enough equity to refinance their home to pay of their unsecured debts. In the State of Washington for example, so long as you do not have more than $125,000 of equity after typical closing costs from a sale, you are virtually assured of keeping your home so long as you continue to make your mortgage payments (and secured lines of credit, if any).
While filing for bankruptcy will not lower your regular monthly mortgage payment, a Washington State Chapter 13 Bankruptcy (not Chapter 7) will allow you to catch up on your payments over as long as a five-year period. In order to qualify for a Chapter 13 bankruptcy, however, you must make payments toward the amount you are behind in your mortgage AND be able to make your regular mortgage payment.
If you can now afford to make your mortgage payments, but still wish to sell your home, filing a Chapter 13 bankruptcy will cancel the scheduled foreclosure sale and give you time to list your property for sale. This will allow you to gain more profits and to net additional proceeds from your home than you would typically earn at a foreclosure sale.
6. Keep Your Car
So long as you continue to make your car payments, you can typically keep your vehicle(s). Most people who have car payments do not have enough or any equity in their vehicle for the cars to be considered non-exempt. In fact, in the majority of cases, people owe more than their car is worth. Only in cases where you have a car that is worth considerably more than the amount owing on it, or a car of significant value where you have no loan on it at all, would you not be allowed to keep your vehicle in a bankruptcy proceeding.
Chapter 7 also gives you an option to "Redeem Your Vehicle". This process involves you paying the secured creditor the fair market value of the collateral, which is typically far lower than the amount you still owe on your current car loan. In exchange for redeeming your vehicle, the creditor provides you with the release of their lien. There are several redemption finance companies we can refer you to that will provide you with a loan will have new and lower payments based upon your vehicle’s current and fair market value.
By: Isabel Searie
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Texas Bankruptcy Laws
Us Bankruptcy Laws
They are entitled o payment forthwith. They have an unassailable right to be paid out of the assets of the debtors. From the scenario, many of the original settlers in Texas were debtors fleeing from creditors in other states because Texas bankruptcy laws generously protect a debtor’s "homestead" from being seized by creditors.
In order to discuss about these facts The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, the changes in the bankruptcy code, debtors and creditors right has to consider here.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, provides few facilities that limiting state homestead exemptions to $125,000 in equity for homesteads owned for three years and four monthes that is less than 1,215 days. To do that they has to face two objective tests. A means test and median income test determine chapter 7 cases to protect fraud. By applying these tests court decides period of time to reduction of debts. If bankrupt income more then the test applies then he has to pay compensation for perpetrated fraud.
Debtors can protect their asset by investing them in a housestead. Debtors get opportunity to hide from creditors. However, may be congress considering policy grounds to introduce this law. May be the Texas homestead exemption Act tried to give protection for the wife and children. It is very common for a wife with young children to be faced with eviction in circumstance where the realization of her beneficial interest will not produce enough to buy a comparable home in the same neighborhood, or indeed elsewhere. And if she has to move elsewhere, there may be problems over schooling and so forth. Such circumstance engendering natural sympathy, may be they considering these issues before passing the law. Therefore, Texas homestead exemption Act, provides exemption taxes, several Code provide insurance facilities, current wages.
In addition, when a settler began bankrupt, family members may claim for beneficial interest in the homestead under a resulting or constructive trust. If wife has made a direct contribution to the purchase price, three possibilities exist. The money could have been intended as a gift, loan, and beneficial 
interest in the homestead to bankrupt. May be wife has indirect contributions to purchase of the homestead. For a constructive trust to arise three conditions must be satisfied. However, court follow the new rule but there has few loopholes.
The law of mortgages has particularly concerned itself with the need to protect the mortgagor from harsh and unconscionable transaction. Equity has always stressed the security aspect of the transaction and has developed rules to protect the mortgagor equity of redemption. May be court considering these issues that in equity mortgagor’s has right to redemption on date, if it not possible for him proper notice must serve.
Some of those around the table, advocate the Texas homestead exemption, and argue that provide a debtor to make a fresh start. To impose these Credit Counseling Agencies resolve the financial problem of debtors to avoid bankruptcy. Theoretically, it can be said that it is really a fresh start but practically here is a great chance to commit fraud to invest for homestead and file for bankrupt. Creditors may suffer several problems to bind by these acts. To avoid these kinds of problem it should need to be amended. In case of spouse, it should in exceptional cases.
By: Gabriel
Article Directory: http://www.articledashboard.com
One of the stranger provisions in the proposed Helping Families Save Their Homes in Bankruptcy Act of 2009 is the requirement that the debtor certify that he attempted to contact the “holder” of the claim to discuss mortgage modification [...]
Texas Supreme Court
A divided Texas Supreme Court held early this month that federal bankruptcy law does not pre-empt a Houston attorney’s state civil malicious prosecution suit stemming from the filing of an adversarial action in a bankruptcy proceeding.
"Texas is an extremely friendly place to live if you owe money and do not want to pay,” said Marjorie Britt, a bankruptcy attorney with Britt & Catrett PC in Houston.
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Mean Income In Texas Chapter 7 Bankruptcy
What is the mean income in Texas for a chapter 7 bankruptcy and what are the reasons for filing bankruptcy in Texas? Whether you live in Austin or Dallas, how to file bankruptcy is the same process.
Reasons for bankruptcy are usually because the consumer (you) has amounts of debt that are unable to be paid, either because of lack of money, or because the amount of debt is unobtainable to ever pay off. Whatever the reason for filing bankruptcy, each individual case is different, and I highly advise speaking with an attorney to see if bankruptcy is right for your situation.
How To Find Texas District Court Records
Because everything is bigger in Texas doing a search for Texas district court records can be quite a daunting task. Consider that there are 443 district courts within the state, each with its own set of records it is easy to see that finding criminal records while doing a background check could take some time and effort.
When you add the fact that there are also 254 county and 917 municipal courts that also hold Texas public court records it is nearly impossible to hunt down criminal and other background information on someone. Or at least that’s the way it used to be until the public record websites came on the scene.
Here’s how finding specific court records used to work. Each court has an employee known as the court retriever whose job it is to search for and find specific records and case reports upon request. After the required paper work is filled out and submitted it can take up to 72 hours before the records are retrieved and ready for you. This can be longer then most people are willing to wait. And when you consider that some people may have records in multiple courts you can see how it may be difficult to find all the records that may pertain to them.
At least that’s how it used to be. Like most states Texas has moved to input all the paper files and micro-fiche records that were kept at each district, county, and municipal court into computerized databases. This makes finding court records and doing background checks much easier when you use a public records search website.
These websites give you access to records that are considered public domain, which most court records fall under. This makes it exceedingly easy to run thorough background checks on just about anyone. In many cases you will also gain access to sex offender records, bankruptcy reports, marriage and divorce records, tax liens, and other publicly available information. These sites do charge a small fee to join but your membership will give you unlimited searches for the lifetime of that membership.
Finding Texas district court records is easy if you use an online public records website and any search you do will be completely anonymous with no one being the wiser.
By: Andrew Bicknell
Article Directory: http://www.articledashboard.com
To learn more about state background check websites and to start your Texas District Court Records Search Click Here.
You can read about the Texas means test requirements right here.
Dallas Bankruptcy Attorneys and information can be found here.
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Steps to Take After Bankruptcy
First Steps to Take After You’ve Filed Bankruptcy
The first order of business…eliminate the problem that led you to file in the first place. Unlike the governmentwho can print more money when they get in a bindwe don’t have that luxury to get out of our dilemma.
This first step to bankruptcy recovery can be tough for most people. It was tough for me and my wife, Michelle. We had to come to the realization that the way we managed money didn’t work.
I wanted all the toys and luxuries everyone else had, even though we couldn’t afford them. But of course, this didn’t prevent me from buying expensive items we really didn’t need.
This got us into financial problems. Michele and I eventually agreed I was the problem. When our Jeep Grand Cherokee and furniture were repossessed, it was my wake-up call. I still remember helping the repossessors load our new furniture in their truckand Michele crying on the front porch.
Obviously, we were doing something wrong with our money.
Instead of asking someone else to fix our finances for us, Michele and I were determined to manage our money wiselyin order to create a foundation to build on.
So we started with common sense. We asked friends and family who were good with money how they managed their finances.
We quickly learned that we couldn’t have luxuries and money while we were rebuilding our credit. We needed to choose one.
Here are some of the steps Michele and I took to recover from bankruptcy:
Began paying our bills early…worst-case, on time
We stopped paying our bills late. We drew a line in the sand and said…"No more! All bills from this point on will be paid early…worst-case, on time." It was amazing how much we saved in late fees and overdrafts…not to mention the satisfaction of being responsible. Initially it wasn’t easy. But the short-term sacrifices were worth long-term financial stability.
This is easier today than it was for us many years ago. Today you can take advantage of online bill-pay or automatic bill-pay.
Avoided finance companies
It’s easy to get loans or credit after bankruptcy from a finance company. And some (misinformed) people will actually tell you this is good. Credit from a finance company is not good. Not only is it very expensive, having finance companies appear on your credit reports lowers your FICO credit scores (which makes everything else more expensive).
Finance companies are the lenders of last resort. You have to stay away from them at all costs…unless you don’t mind paying 25% interest and working with lenders who are friends with the Mafia.
Just said, "No," to co-signers
Bankrupt people often think, "The only way I can get new credit is to have a co-signer." Whether that’s from a parent, brother, sister, relative, friend…whatever…you don’t need that kind of help reestablishing credit.
Bottom line: you don’t want to have co-signers for several reasons.
First, it’s not a wise thing to do. It even says not to co-sign in the Bible. You put the co-signer’s credit on the line if something goes wrong. If you don’t make the payment, guess who they come after? Yupthe co-signer. Can you say, "Friendship over," or, "Relationship strained?"
In addition, having co-signers appear on your credit reports weakens your position with future lenders. When a new lender sees you’ve had a co-signer, they’ll consider you a greater risk and they may ask for a co-signer for their loan as well. In other words, once you get a co-signer for one loan, you start a vicious cycle that is hard to break.
The word "no" meant nothing
You must understand…most of the lenders you come into contact with after bankruptcy have no interest in helping you recover. You’re going to hear the word "no" a lot.
You’ve got to get in your head that the word "no" means absolutely nothing. So if a car dealer tells you, "There’s no way you’ll be able to get financed, you shouldn’t believe him. If a mortgage broker laughs at your goal of owning your first home instead of renting…laugh right back at her.
Discovered the power of asking open-ended questions
When a lender tells you, "No,"…don’t stop there! You’d be missing out on the best part of the experience. You need to ask some very important questions, like…
"What would you do if you were me?"
"Since you can’t help me, where would you go if you needed to get financed?"
Asking open-ended questions like these helps you find the people you should’ve been talking to in the first place. That’s how we found the car dealer that financed our first car after bankruptcy with very little money down (and that was a post-dated check) at 2.9% interest.
Of course, now I think that’s a so-so deal.
All you need to do is know where to go…be prepared…know which cars have the best incentives…and know what questions to ask. Most importantly, always be ready to walk away from the deal, no matter how much you want that new car.
Establish the right kind of accounts.
Overall I encourage people to rebuild their credit after bankruptcy by establishing these types of accounts:
1. Checking and savings accounts at a bank or credit union
2. A few secured bank cards
3. One or two retail credit cards (just don’t go crazy)
4. A few secured bank loans.
5. A car financed through a bank, credit union, or captive lender (that reports to all three national credit reporting agencies).
6. A home mortgage.
7. A refinanced mortgage.
8. A home equity loan (not a home equity line of credit).
9. Real estate investment: Your current home becomes your first investment property and you shop for a new home.
Obviously this doesn’t happen all at once. And the order changes depending on what you need. This is pretty much the order in which we did things after our bankruptcy.
Notice I don’t have any finance company or Crapital One accounts listed above. Sometimes knowing what accounts to avoid is as important as knowing which accounts to establish.
You’ll also notice I don’t have a personal loan listed above. I spent too much time looking for loans after I went bankrupt. I figured if I could just get a big enough loan, I’d pay off all my debts. Of course, it didn’t occur to me that I’d still need to pay off the loan. Duh!
It’s like a disease. (Hi, I’m Stephen, and I’m a loanaholic.)
Stephen Snyder is the founder of the After Bankruptcy Foundation a non-profit organization that provides free bankruptcy information and recovery steps. Stephen also writes a free weekly newsletter on bankruptcy recovery.
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