When filing for bankruptcy, one of the tests that is applied by a trustee is whether or not your petition and its components have been filed in ‘good faith’. In a Chapter 13 petition, for example, the trustee will look at how much you are proposing to pay in your monthly plan, and whether or [...]
In what many would consider an absurdity, the cost of filing for bankruptcy is set to rise. It’s not a huge rise, but when you’re broke, any additional costs hurt. What is important for anyone who is considering bankruptcy is that the cost of filing for bankruptcy is charged every time you lodge a petition. [...]
When a husband and wife are both working, credit can be easy to manage. However, if just one of that couple loses their job, that credit can suddenly get out of control. There are some bankruptcy proponents who suggest filing for bankruptcy as soon as you lose your job rather than waiting for your debt [...]
Being unemployed puts a severe strain on a family’s income. So much so that the majority of bankruptcy petitions are made under the protection of a Chapter 7. This liquidates any eligible assets then discharges any remaining eligible debt. What if you’re about to start work – can you still file for bankruptcy? The answer [...]
Bankruptcy is designed to help individuals, married couples and businesses who find themselves in financial difficulties. Bankruptcy law has been modified over the years to ensure that creditors are not in any way cheated out monies that are owed. This places debtors in some difficulties when it comes to debts incurred in the six months [...]
While bankruptcy has been designed to help those in serious debt find relief, in the hands of a smart attorney, it can also be used as a leverage tool. For home owners, the classic example is having secondary mortgages wiped in situations where the house’s current value is less than the primary mortgage. This leaves [...]
There are times when the need for bankruptcy is such that filing for any Chapter is better than nothing at all. This is often the situation when a debtor requires the protection of the stay that comes into place once a bankruptcy petition has been filed. This prevents creditors from taking any further action and [...]
The bankruptcy means test is there to ensure that those who can afford to pay off some of their debt do so while those who cannot afford to pay anything are not forced to. That’s a fairly clear concept, and in theory, it should work well. In practice, the process often doesn’t work with creditors [...]
If you don’t pay a particular debt for long enough, a creditor may commence legal proceedings to try and recover that debt. This often takes the form of a wage garnishment, however, if you are not working, then a judgement may be made against your assets. If you do not defend the lawsuit entered against [...]
While bankruptcy provides a lot of protection for debtors, it provides very little protection for any co-signers, unless of course they file for bankruptcy as well. Under the provisions for a Chapter 7 bankruptcy, the automatic stay doesn’t even protect co-signers. A creditor is free to chase debts from that co-signer the moment a Chapter [...]
Bankruptcy is a serious option that has many ramifications. It will affect your credit score and it can affect your employment options in the future, especially if your working area is the financial sector. Before opting for bankruptcy, you need to consider your current situation to be sure that this is the right option. Some [...]
Does anyone intentionally ‘waste’ an asset? You would be surprised how many people do ‘waste’ assets prior to filing for bankruptcy. Of course, the term ‘waste’ means many things to many people. A good example of ‘wasting’ an asset is where an individual withdraws all their cash from their bank account and hits the tables [...]
When filing for a Chapter 13 bankruptcy a debtor must include a payment plan that they are willing to commit to for at least three years. This payment plan must equate to what the court would estimate as their ‘disposable’ income. This is determined by calculating the debtor’s total income then subtracting a range of [...]
There are a lot of factors that have to be taken into consideration before filing for bankruptcy, and one of the most important is deciding on what date you will file. I know this may sound strange to many, however, the date you file becomes the key point in every other aspect of the bankruptcy [...]
Lawyers in general tend to charge clients an hourly rate for any legal services they provide. This has also been true of bankruptcy work, however, in recent years there has been a flood of set priced bankruptcy attorneys entering the fray. This has caused most law firms to follow suit. Because of fixed pricing, you [...]
Bankruptcy can be a terribly intrusive process to go through. You have to reveal every source of income, every expense, and every asset. Your credit cards will be scoured for any inappropriate transactions as will your bank accounts. You will even have to provide records of accounts such as PayPal, and perhaps a history of [...]
The law is full of jargon and legal language and in time that language can become confusing. In today’s post, we clear the air on the term ‘bankruptcy estate’. Under bankruptcy law, you finances are divided into various areas; for example, income, expenses, creditors (and even debtors that owe you money), and assets. The term ‘bankruptcy [...]
Bankruptcy – there is a certain point in a person’s life where bankruptcy is going to become inevitable. Not only is it inevitable, if you have valuable assets that creditors can get their hands on, they will, one way or another. If you don’t file for bankruptcy, they are going to go to court to [...]
Have you ever been served a summons? I am told that even those that expect one find the process a little demeaning and uncomfortable – more so if they are served in the work place. We are seeing creditors heading to the courts in greater numbers these days as they all try to squeeze the [...]
Deciding on whether or not you should file for bankruptcy can be a difficult step. There are tens of thousands of people who sit each day and ponder this very question. A fair percentage of these people will take the next step and actually do a little research before making that final decision. Since you’re [...]
The term involuntary bankruptcy refers to the process where an individual is forced into bankruptcy by a creditor. If there are less than twelve creditors owed money by an individual debtor, then it only requires the action of one creditor to force an involuntary bankruptcy. If there are more than 12 creditors, then three must [...]
There are times when an individual who is in serious debt, shouldn’t be filing for bankruptcy. Rather, they should be seeking relief through consumer protection legislation. All too often debtors take what they feel is the easy way out by filing for bankruptcy in these circumstances. Don’t do it. Talk to an attorney first, preferably [...]
If you are in a situation where bankruptcy appears to be your only relief, you have a number of options. You can do all the preparation work yourself, engage a bankruptcy attorney, or engage a bankruptcy petition preparer. If you do the work yourself, you will save money in the short term, however, bankruptcy law [...]
In researching this post, the one clear fact that I could find was that the term ‘average’ here was hard to define. Trying to build a profile isn’t easy since there are few statistics available on a national basis. However, there is information around that does help to build a basic profile of bankruptcy petitioner. [...]
Disposable income can be determined in many different ways depending on your reasons. If you apply for a mortgage, they will use a simple income minus debt formula. When it comes to bankruptcy, you can use a simple approach or a more detailed and deeper formula depending on which bankruptcy chapter you wish to file [...]
Bankruptcy deals quite effectively with unsecured debts. Under a Chapter 7 petition, the debtor’s non-exempt assets are seized and sold while the funds used to pay off some of the outstanding debt. Once these funds have been dispersed, and the court appointed trustee is satisfied there are no other funds available, the outstanding debts are [...]
Sadly, as we move from employment to retirement, we are taking with us quite sizeable credit card debts. For the senior citizen, this can represent a huge drain on their already diminished income. There are a number of options they can look at to deal with these debts. These options include: continuing to pay off [...]
The act of filing for bankruptcy is fairly simple. Collect all the forms, fill them in and present them to your local court. You will need to collect certain documents to include with your filing, and you will need to pay a filing fee at the time you file. Sound simple? As simple as it [...]
Bankruptcy is not a simple one form application. The process of filing for bankruptcy involves a good handful of forms (depending on the chapter and your circumstances) and a mountain of documents that you have to source. With that in mind, filing an online petition for bankruptcy would be almost impossible. I say almost because [...]
Bankruptcy is one tool that debtors who are swamped in debt and who are being harassed constantly by creditors can access for consumer protection. The single act of filing for bankruptcy brings instant relief from harassment while the process of filing can reveal interesting facts. This is one of the main reasons why it is [...]
