One of the biggest myths associated with bankruptcy is that which suggests a person (or family) will lose everything (except the shirt on their back) by filing for bankruptcy. In most cases, the opposite is the truth. If your bankruptcy petition is well planned, then there is a good chance you will lose nothing except your [...]
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 [...]
When a married couple separate and consider divorce, finances can become messy. The breakdown of marriage is one of the leading causes of insolvency in the U.S. and if means are not found to deal with the problem, the end result is bankruptcy. In marriage, it is common for both debts to be jointly shared [...]
If you own a business and you are considering filing a bankruptcy petition, you have two choices – a Chapter 7 petition, also known as a liquidation bankruptcy, or a Chapter 11 petition, also known as a reorganization bankruptcy. There is a legal term known as a ‘legal entity’ and this can have a huge [...]
If you are working but struggling to maintain your debts, then a Chapter 13 petition for bankruptcy offers a complex but neat solution to your debt problems. It takes on some of the concepts of debt consolidation, the major difference being you won’t normally be repaying the total outstanding debts. Under a Chapter 13 petition, [...]
That may sound like a trick question, but it’s not. In fact, there are many situations where you may want to buy an ‘asset’ while still going through the bankruptcy processes. A simple example is where your wide screen plasma television is seized and sold during the Chapter 7 bankruptcy process. Can you then buy [...]
Most people are afraid of being labeled a bankrupt, yet if your financial situations calls for it, it can be one of the best steps a person can take. By petitioning for bankruptcy, a debtor can have all their debt issues resolved, making it easier to get a fresh start. It’s not an easy process, [...]
There are two terms that are often used when it comes to individuals or businesses not being able to pay their debts – insolvency and bankruptcy. Are they the same thing? Technically speaking, they are not the same even though general language interchanges the two. Insolvency is a situation, generally used in business, that describes [...]
Under Federal law, health savings plans are not protected during the bankruptcy process. In most states, if you have a health savings plan and you file a Chapter 7 petition for bankruptcy, then you will have to hand those savings over to the trustee. The trustee will then include those funds with any other property [...]
If you are considering filing for bankruptcy and time is important, then you need to contact a bankruptcy lawyer as early as possible in the process. You should also ensure you undertake your pre-bankruptcy credit counseling as soon as possible. There is a lot of paperwork that has to be prepared before a petition can [...]
There are many people who are in financial difficulty who are in a position to choose between a Chapter 7 and a Chapter 13. The Chapter 7 bankruptcy is also referred to as a liquidation bankruptcy because you are required to liquidate a range of assets to help pay your debts. The Chapter 13 is [...]
When it comes to bankruptcy, there are two myths that stand out that should really be exploded. The first relates to how much debt you have with bar room lawyers often claiming you have to have a minimum amount debt before you can file for bankruptcy. The second myth is the biggest, and this myth [...]
Filing your bankruptcy petition is the first step in what may be either a very quick process, or a long drawn out process that can take from three to five years to complete. A Chapter 7 bankruptcy petition is by far the fastest and can be completed within four months. A Chapter 13 bankruptcy petition [...]
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 [...]
If you are seeking debt relief through a Chapter 7 petition for bankruptcy, then all of your assets will be assessed with a view to seizing some and selling them. Each state has a list of exemptions that will help you to keep many of your possessions, including your car. You can also make use [...]
Filing your own bankruptcy petition is fraught with danger, even when your circumstances appear to be very simple. In fact, what appears to be simple to you may turn out to be quite complex once the process begins. You can download all the forms required to file for bankruptcy, or you can collect them in [...]
A lot of people worry about their social security benefits so they are reluctant to undertake actions such as filing for bankruptcy. If you compare what happens with social security benefits before, during, and after bankruptcy, your fears should be allayed. To begin with, your social security benefits are better protected during bankruptcy than they [...]
If you are considering filing a Chapter 7 petition for bankruptcy, and you have sizable debts, be warned – your petition could prove to be painful. Filing for a Chapter 7 is saying you cannot afford to make any payments to any of your unsecured (or secured) debtors. Secured debtors are generally well cared for [...]
Chapter 7 bankruptcy is the category of bankruptcy that allows debtors to liquify their assets under certain conditions. Here are five essential facts to know before you apply for Chapter 7 bankruptcy. Current monthly income is defined as the average income over the six months previous to the commencement of the bankruptcy case. This includes [...]
Bankruptcy is a serious situation. When you file for bankruptcy, you are basically saying that you can no longer service your debts. There is no way that our legal system will allow you to profit through the bankruptcy process. If it did, then everyone would rack up debt and file for bankruptcy. Then our economy [...]
For most individuals, there are two options for bankruptcy – a Chapter 7 or a Chapter 13. Each chapter has its pros and cons. For many, the cons of a Chapter 13 petition for bankruptcy can be difficult to endure. Under a Chapter 7 petition, the debts and the debtor are normally discharged within three [...]
Debt in the United States is concentrated in two distinct areas – mortgage debt and credit card debt. These two debt areas account for 70% of all debt – if you include vehicle finance and medical debts, then you can lift that to almost 85% with tax being the next largest debt. Credit card debt [...]
When an individual reaches a point where their debts have become impossible to repay they may seek assistance through the bankruptcy court. Prior to filing for bankruptcy, the debtor (the person owing the money) may be subject to various recovery actions by the creditor (the lender). These actions include court and collections agents. Once a [...]
To demonstrate how complex bankruptcy law can be, owning a car can make a big difference between being eligible for a Chapter 7 petition, or for reducing payments in a Chapter 13 petition. This is where the expertise of a bankruptcy lawyer can really pay dividends, especially if you are seeking a Chapter 7 bankruptcy [...]
If you are intending to file for bankruptcy, then you need to be aware of two requirements – credit counseling and debt education. Credit counseling must be completed within the 60-day period immediately prior to filing for bankruptcy. Debt education cannot be completed at the same time. In fact, it must be completed after you [...]
Pre-bankruptcy credit counseling is designed to help those seeking relief through bankruptcy explore other options. These options include debt negotiations ad budgeting. We are in an era where many creditors lack any resolve when it comes to negotiations – they want their payments on the agreed data and they refuse to waver. Even so, you [...]
Joint petitions can only be filed by couples who are legally married. As a married couple, you can file for bankruptcy as a couple, as individuals, or you can opt for only one of you filing. The approach you take will depend to some extent on the income, debt, and type of debt you have. [...]
Bankruptcy is a serious process that generally involves creditors losing large sums of money. The Bankruptcy Act was created in such a way that both consumers and creditors receive as much protection as possible – for the debtor that means having their debts discharged with the least pain possible while for creditors this means receiving [...]
Most articles on bankruptcy concentrate on home owners and the effect that bankruptcy may have on their homes and their mortgages. We shouldn’t forget that renters are also in financial difficulty, and for them, eviction is a short court order away. Landlords don’t need to go through the processes that mortgage holders face – simply [...]
