Bankruptcy articles

What Is Bankruptcy (04/22/2012)
... You get to keep any property that is classified as exempt under the state or federal laws available to you (such as your clothes, car, and household furnishings). Many debtors who file for Chapter 7 bankruptcy are pleased to learn that all of their property is exempt. If you owe money on a secured debt (for example, a car loan for which the car is pledged as a guarantee of payment), you have a choice of allowing the creditor to repossess the property; continuing your payments on the property under the contract (if the lender agrees); or paying the creditor a lump sum amount equal to the current replacement value of the property. Some types of secured debts can be eliminated in Chapter 7 bankruptcy. Not everyone can file for Chapter 7 bankruptcy....

The First Steps to Filing a Bankruptcy Petition and Rules that Apply to All Forms of Bankruptcy (04/09/2012)
... The types of debts I am referring to include, but are not limited to the following: • credit obtained by false pretenses or acts of fraud; • all taxes, customs or duties; • debts owed for fines and penalties to another government unit; • student loans; • child or spousal support; • luxury items valued at $500 or more that were purchased sixty (60) days from the date you filed your original bankruptcy petition; • cash advances of $1,000 or more that were made within sixty (60) days from the date you filed your original bankruptcy petition; • debts made due to an act of embezzlement or larceny; • debts owed a party where you maliciously caused injury to another; • debts owed for the death or personal injury while intoxicated by drugs or alcohol. The First Steps to Filing a Bankruptcy Petition Take a file folder and put a statement from every creditor that you owe in it. If you don’t receive a monthly statement from the creditor, put the following information on a sheet of paper and put it in your file: Name and complete mailing address of who you owe; Your account number (if applicable); The name of who owes the debt (husband, wife or both); The total amount you owe this creditor; How much your monthly payments are; The date you originally went into debt with this creditor. (If you can’t remember the exact date, just an approximate year [i.e....

Why Debt Settlement is More Advantageous Than Bankruptcy Debt Settlement (03/19/2012)
...ii) Your accounts are not seized and there is a transparent process that ensures to overcome all your outstanding commitments.iii) You have a better chance of regaining control over your distorted economy since there are financial advisors supporting you.iv) You stand a good chance to get a good waiver on your principal amount. There is a fair chance that more than 50 percent of the debt amount is removed and you are left with other half to pay.v) On a good negotiation, you might also end up with an extension in the time given to you for repayment of bills....

Chapter 7 Bankruptcy (03/09/2012)
... Chapter 13, however, is another story, since the debtor must pay back a significant portion of the debt over a 3-5 year period, with 5 years being the standard under the new law. Prior to the advent of the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005," the most common reason for someone to file under Chapter 13 was to avoid the loss of equity in their home or other property. And while equity protection will continue to be a big reason for people to choose Chapter 13 over Chapter 7, the new rules will force many people to file under Chapter 13 even if they have NO equity. That's because the means test will take into account the debtor's income level. Filing Bankruptcy is a difficult decision to make....

Why A Debt Settlement Is Much Better Than Bankruptcy (03/04/2012)
... While this may negatively impact you credit most settlements only affect a credit history for around 1 to 2 years. This is clearly a better alternative than bankruptcy which stays on your credit history for 7 years on average. If you have over $10,000 in unsecured debt it would be wise to seek professional help. Legitimate Debt Settlement Companies.....

Does Your Bankruptcy Law Firm Need Both Attorneys And Accountants (02/23/2012)
... Arguably the most difficult and the most critical part of the Chapter 7 process is the new "means test." The means test compares the debtor's income in the six months before the filing of the bankruptcy to their state's median income. If the debtor's income falls below the state median, they are automatically allowed to file for bankruptcy under Chapter 7. If the debtor's income is above their state's median income, they may still qualify to file for Chapter 7, but it becomes more complicated process with additional tests that take their expenses and excess income into account. Another crucial step in getting your Chapter 7 bankruptcy petition approved is the "341 creditors meeting....

The World Bank (09/16/2010)
... The first quarter century of the bank’s existence saw an emphasis on financing basic economic infrastructure needed to support industry. Between fiscal years 1961 and 1965 electric power and transportation projects accounted for 76.8 percent of the bank’s lending. The bank continued to extend substantial loans to developed countries until 1967. After Robert McNamara assumed the presidency in 1968, the bank began to channel more resources into projects that directly relieve poverty, increasing bank lending on agriculture and rural development projects from 18....

Things You Need to KnowBefore Filing Bankruptcy (09/09/2010)
...5 times your monthly income. For example, if you have a monthly net income of $2,800 but your monthly expenses are about $4,200, it’s time to think about bankruptcy. 4. If you cannot budget yourself out of the debt within four years, it’s time to seriously consider bankruptcy. 5....

Bankruptcy ~ General Questions and Answers (09/09/2010)
... In this case, each one of you would have to file separate bankruptcy petition. A competent attorney or paralegal can separate the expenses and budget so that each of you pay 50% of the day-to-day living expenses (if both of you share the expenses) and submit the information properly to the court. 3. Will bankruptcy stop a wage garnishment? Yes, some of the money garnished from your paycheck may even be returned to you. It all depends on how much was garnished and when it was garnished....

Terms You Need to Know Concerning Bankruptcy (09/05/2010)
...) Asset — This is something you own that has resale value. Your car, TV set, computer, stocks, bonds, bank accounts, piggy bank, clothes, bed, etc. are all things that have some type of value that could be turned into cash. These types of things are your assets. Discharge — This is what happens when your debts are erased and you have completed your bankruptcy....

When is bankruptcy the right choice and when is it not (08/14/2010)
... Only you can do that. If debt spending is your problem, the only way to solve it is through a long-term commitment to debt reduction. It’s your money behavior that needs to change. The problems bankruptcy doesn’t solve Beyond the fact that it doesn’t solve most people’s debt spending problems, bankruptcy brings with it some other penalties. • For the next ten years, your bankruptcy will be reported as part of your credit record when you apply for a loan, rent an apartment, or apply for a job....

Chapter 7 and Chapter 13 bankruptcy (08/09/2010)
... If a married couple is filing together, the exemptions will be double. And the amounts are subject to change. • Other high-value assets that do not qualify for exemption are turned over to the court trustee, who may then sell these assets at public auction and divide up the proceeds among your creditors. • You are still responsible for certain debts and obligations: student loans, overdue taxes, alimony, child support, and fraudulent loans. (A loan is considered fraudulent if you slightly exaggerated your income on the application or took any steps to hide a bad credit record....

How Your Credit Will Be Effected by Bankruptcy (08/04/2010)
... This is one where you put money in a bank and the bank issues you a credit card. The credit limit of the credit card will be the same amount of money you have in their bank. After you have shown that you make timely payments, your credit line may be increased without you depositing any more money. However, the fact remains — one of the main reasons for filing bankruptcy is to get OUT of debt — not back into it. You should take responsibility for your own financial spending and saving, making sure not to get to the point where you have to file another bankruptcy....

Is Credit Card Bankruptcy the Only Solution (05/15/2010)
... Credit counseling is all about living within your means. All that you require to do is to spend just a little bit less than your present income. Before you hand over your credit card for swiping make sure that you will be having enough funds to pay by the time you have to pay the bill. Credit counseling is also about resisting the temptation of using your credit card recklessly. Debt Consolidation There are times when you end up owing money to multiple lenders....

History of Bankruptcy (05/11/2010)
... The first bankruptcy law was enacted in England in 1542 during the reign of Henry VIII, and was heavily biased against the debtor where he could be jailed and all his assets seized. With time, the law was relaxed to allow debtors out of prison , many of whom promptly fled to the debtors colonies in Georgia and Texas. Even as imprisonment became rarer in the 1800s, collusive bankruptcy (agreed upon by creditor and debtor) became legal in 1825. Voluntary bankruptcy was authorized in England in 1849. When the United States Constitution was adopted in 1789, bankruptcy was specifically mentioned as being subject to federal law....

Has Your Bankruptcy Client Used Their Credit Cards Within the Past 90 Days (03/28/2010)
... Your friend is considering filing bankruptcy after charging $1,000 at your store; which your friend listed on Schedule F of her bankruptcy petition. However, one week before your friend files bankruptcy, she comes into your store and purchases $4,000 worth of products. Your friend knows at the time of her purchase that she will not be able to pay this money back. This is the reason why this act is considered FRAUD. Your friend is fully aware of committing the fraud before the act is committed....

Choosing from a Variety of Bankruptcy Alternatives (03/10/2010)
... It is designed to teach people the error of their ways and then formulate steps to get out of debt permanently. Bankruptcy counseling is intended to assist consumers through the decision-making process looking at the advantages and disadvantages. The Smart Solution Filing for bankruptcy protection should always be a last resort. In many cases, people aren't aware of the process or rights they are entitle to regarding bankruptcy. Through bankruptcy counseling consumers can learn the best course of action for their families....

Why Debt Settlement Has Made Declaring Bankruptcy Less Attractive (03/08/2010)
...In counseling the professionals will advise you on how to manage your debt. They will give you valuable tips on using your credit cards and how to cut down on your expenditure. If you have minor debts you are the right candidate for counseling.A debt management plan is a procedure in which you permit the debt relief provider to negotiate with the creditors on your behalf. You make monthly payments for the Debt Management Plan....

Top 5 Questions to Ask About Bankruptcy (03/08/2010)
... Before you take a call, you need to get your facts right. Here are a few basic questions about bankruptcy that you need to ask yourself before making any kind of decision on debt relief.1. What is meant by bankruptcy? It is a procedure that is mandated by federal law to provide protection to US citizens looking for debt relief.2....

Debt Settlement and Bankruptcy :: The Real Choice For Serious Debt Relief (03/04/2010)
... About two years compared to seven years? See why debt reduction is better?There is still a chance that you can obtain financing in the near future. The fact that you get a low credit score with bankruptcy is a big issue. Not only will it impact your ability to securing financing for a medical emergency or a new car, it can also impact your work and your home. Did you know that many employers are now running background and credit checks on their employees? Moreover, many landlords are now doing these credit checks to ensure interested tenants aren't going to up and run away.It shows good will when your credit report is checked....