September 27, 2010 | Posted by Tony
The economical crisis has forced many simple consumers find ways of dealing with their debts while retaining their assets and living a normal life. One of such options has become filing for bankruptcy. In the last 12 months there was a one-third increase in bankruptcy filings, and this increase was not only due to businesses and companies. Many simple consumers that were regarded as average income households also have taken this risky but sometimes necessary step. But filing for bankruptcy is not that simple and you have to understand the most important aspects and the impact it will have on your credit situation.
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Categories: Bankruptcy | 
Tags: auto insurance, Bankruptcy, bankruptcy affects your auto insurance | 
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February 17, 2010 | Posted by Tony
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 through the process is a bankruptcy trustee. A bankruptcy trustee is usually a lawyer assigned to oversee your bankruptcy case. Their role in the case differs as to whether your bankruptcy case is Chapter 7 or Chapter 13.
In Chapter 7 Bankruptcy
In a Chapter 7 liquidation case, a trustee is selected at random from a panel of lawyers. Their main goal is to sell property and distribute the proceeds to creditors. In this process, a trustee sits down with the debtor during a “341 meeting” and asks them questions about their assets and financial affairs. From there, trustees review bankruptcy documents and ask questions to find out if any nonexempt property, assets, or items can be seized by the trustee and sold to satisfy debts.
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February 16, 2010 | Posted by Tony
Green Shoots in the Economy – Bankruptcy Increases by 100%
Author: Nick Adama
In another sign that the average American is becoming largely desperate as the current recession continues, bankruptcy filings are up 100% since the year 2007, according to data released by the US Courts. With more economic hardship and fewer jobs to go around, people just have less (or no) income to pay their debts, whether they are credit cards or home loans.
The rise in bankruptcy filings is also happening despite the banks’ and lawmakers’ attempts to create a modern version of the debtor’s prison. The 2005 bankruptcy reform legislation was created to cut down on the number of people filing for debt relief by making it more difficult to remove debts. If borrowers did not meet the new requirements, they would be required to pay back a portion of the accounts to their creditors.
Before the 2005 act went into practice in 2006, record numbers of debtors filed bankruptcy under the old laws. Once the new law went into effect, filings decreased sharply for a time, but have begun a steady climb from 2006 until the present. And with tens of millions of Americans now unemployed and facing huge amounts of debt, bankruptcy filings are essentially back to where they were before the reform was passed.
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Categories: Bankruptcy | Tags: Bankruptcy, bankruptcy filings, bankruptcy means test, chapter 7, means test | No Comments »
November 22, 2009 | Posted by Tony
What is Chapter 7 Bankruptcy Means Test? by Steve
Filing for Chapter 7 bankruptcy can be a powerful device for dealing with tremendous debt. But it isn’t available to everyone. There are a number of situations in which you will not be allowed to file Chapter 7 bankruptcy.
What is Chapter 7 Bankruptcy Means Test? The Chapter 7 means test is a procedure used to determine whether or not the consumer should have enough money available to make some minimal payment to creditors in a Chapter 13 bankruptcy plan. It is designed to keep filers with higher incomes from filing for Chapter 7 bankruptcy.
Under the new bankruptcy law that was effective in October of 2005, a person who wishes to file under Chapter 7 must meet certain requirements that make them eligible to file chapter 7 based on a means test. Under the means test, if your present monthly income is below the median income in your state, you are eligible to file for bankruptcy under Chapter 7.
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Categories: Bankruptcy | Tags: Bankruptcy, bankruptcy means test, chapter 7, means test | 1 Comment »
November 17, 2009 | Posted by Tony
Declaring oneself bankrupt is a last resort in trying to fix your failing finances. There are very serious consequences that happen when you file bankruptcy. For example, the record of your bankruptcy cannot be erased for 10 years. However, before you take that final step, there are measures that you can try.
Good personal bankruptcy attorney advice would be, don’t get into debt in the first place if at all possible, by watching your budget at all times and saving for the future and for emergencies. With all the advice in the world, sometimes you just get hit with something unavoidable like medical bills. In these circumstances you might have no choice but to file bankruptcy.
While your credit will not be completely ruined if you file for bankruptcy, it will remain on your credit report for up to 10 years. If you have a regular, decent income you will typically find you can receive credit even after you file bankruptcy. Most people find they can still purchase an automobile after filing for bankruptcy and can then begin rebuilding their credit from there.
If you think about it, your credit is already in terrible shape if you’re even thinking about filing bankruptcy with all the past-due credit cards, house payments, utility bills etc. So basically, it’s almost better to file and wipe your debts completely clean
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Categories: Bankruptcy | Tags: Bankruptcy, credit, credit score | No Comments »
November 13, 2009 | Posted by Tony
Author: John Stewart
The short answer is yes. Once your case is filed, creditors are no longer entitled to garnish your wages for debts that existed at the beginning of the case. The only exception may be for on-going child or family support ordered by a court. This is a function of the automatic stay. The filing of a bankruptcy case, under any chapter of the Bankruptcy Code, triggers an injunction against the continuance of any action by any creditor against the debtor or the debtor’s property. 11 U.S.C. 362. In Chapter 13, the stay even protects co debtors who are liable with the debtor on consumer debts. The automatic stay gives the debtor protection from his creditors, subject to the oversight of the bankruptcy judge, and brings all of the debtor’s assets and creditors into the same forum, the bankruptcy court, where the rights of all concerned can be balanced.
The 2005 amendments to the Bankruptcy Code instituted limitations on the duration of the stay in the case of repeat filers: debtors who had a prior case pending in the last year which was dismissed get a stay of 30 days; debtors with two or more cases pending in the past years but dismissed get no stay at all. The debtor in those situations must seek a stay from the court in order to have the protection of the automatic (or not so automatic) stay. Once the automatic stay expires, the discharge of the underlying debt will forever eliminate a creditor’s right to garnish your wages on account of that debt.
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Categories: Bankruptcy | Tags: Bankruptcy, chapter 13, chapter 7, garnishment, Paralegal, wage garnishment, wages | No Comments »
