The Finance Factor

Bankruptcy is a very bad situation to be in, for any individual or an organization. But even in the tough times, there are ways out to tackle such situations. Bankruptcy Chapter 13 code which helps individuals only, to come out of financial crisis under the guidance of a federal bankruptcy court. A debtor with a regular income can restructure his financial position with the help of Bankruptcy Chapter 13 code. In this the debtor has to propose a plan with the help of which he or she can repay all his outstanding debts in 3 to 5 years of time period. And five years is the maximum time period of the repayment plan.

In reality the Bankruptcy Chapter 13 code has many added advantages over the chapter 7 bankruptcy code. Unlike the chapter 7 bankruptcy code, in the Bankruptcy Chapter 13, the individual can atleast save his house and other assets from foreclosure. All the proceedings will come to halt after he files for Chapter 13 and also get a period of 3-5 years to pay back his debt to the creditors. The Bankruptcy Chapter 13 code allows an individual to reallocate secured debts. It can over a period of time, lower the payments which he has to make. Finally the debtor will not have any connection or contact with the creditors while he or she has filed the chapter 13 bankruptcy code. Continue reading ‘Bankruptcy Chapter 13’ »

Filing bankruptcy has a negative connotation in our society. However, for some people, including those with overwhelming medical debt, it may be the most attractive and only way out of their financial predicament. A popular belief is that, when someone files for Chapter 7 federal bankruptcy, they lose everything that they own. It will be taken by their court-appointed trustee and sold to make money to pay their creditors.

Although this basic concept is correct, a trustee does sell estate assets to make money to pay creditors, there are certain types of personal property that a debtor will be allowed to keep and that will be exempt from the bankruptcy process. Items that can be protected against bankruptcy can range from something as simple as clothing to something as meaningful as a debtor’s house. Bankruptcy exemption laws passed in each state will list exactly what items can be claimed as exempt. Wading through bankruptcy law can be extremely confusing for inexperienced people, however, and if someone is contemplating bankruptcy they should consult with a competent bankruptcy attorney who will assist them with completing and filing their bankruptcy petition and schedules. Continue reading ‘Property You Can Keep in Texas and New York Bankruptcies’ »

A bankruptcy filing should only be considered as a last resort measure. If you have exhausted all other possibilities, your minimum payments are no longer within your means and you are already defaulted in a few payments or if you have lost your income you are no longer able to repay your debts, then it is time to consider talking to a bankruptcy attorney and have the bankruptcy chapters explained. Any attorney that specializes in bankruptcy law will be able to offer you a free consultation to have all your bankruptcy questions answered and explain the process in detail and let you know what is it that you can expect and whether this is a viable option for you or not.

There are basically two types of bankruptcy for an individual:

Chapter 7 Bankruptcy

A Chapter 7 is when an individual can not repay his or her debts and asks a federal court to grant them a Chapter 7 discharge. Under a Chapter 7, all of your unsecured debt will be wiped clean while your secured debt can be dealt with by liquidating some of your assets. For example, if you have a debt from a Best Buy card, that is secured debt and you may be asked to return the TV or whatever other appliance you bought with it. While this is not common practice, it can happen. Sometimes the creditor will offer you to settle for pennies on the dollar and let’s say that you owe $1000 on that secured debt card, probably the merchant will offer you to settle for $250. Otherwise, this debt gets wiped with all other debts. Continue reading ‘Bankruptcy Chapters Explained – Bankruptcy Information and Other Common Questions’ »

We have all seen the ads on TV of companies promising a better life without credit card debt and without having to deal with constant harassing from creditors at all hours of the day. Companies promising that if you have $10,000 in credit card debt, they can help you eliminate up to 60 per cent of that debt in a matter of years. They also induce fear by telling you that if you file for bankruptcy your life and credit will be ruined forever. All of this conflicting information leaves wondering “is bankruptcy a better option than debt settlement or vice versa?”.

Let me put this as plain and simple as possible. No matter how you look at it, a credit card settlement and a bankruptcy they both are going to do some damage to your credit report. It is naive to expect to keep your credit score intact after not repaying your debt in full. The main difference is that debt settlement has been glorified lately by TV commercials and it is being portrayed as the responsible and smart thing to do. That is a lie!

There is nothing smart or responsible about hiring these companies. If you are facing desperate times and your finances are in ruins, it is best to seek the protection afforded by law and seek a bankruptcy discharge. That way you are fully protected from lawsuits, wage garnishments and other legal action from all of your creditors. Your debts will be wiped clean and you will be granted a clean slate and a fresh start. Continue reading ‘Is Bankruptcy a Better Option Than Debt Settlement? – Find the Truth and Avoid Nasty Surprises’ »

Arizona Bankruptcy Information

Filing for bankruptcy can be a stressful time in your life. It is important to realize that you are not alone in filling your Bankruptcy and that there are certain things that you as a debtors must be aware of when filling. Few people realize that when you file for bankruptcy it can lead to long-term repercussions. That being said sometimes there is no other viable option and it is important to know about certain pitfalls which can be avoided when filing for bankruptcy. Below are some things to be aware of to avoid some of the pitfalls of bankruptcy.

1. Transferring the asset value: When filing for bankruptcy many debtors want to get rid of all there debt but they do not want to give up any of there assets. So to protect there assets from the creditors they may transfer them to other people including family members and friends. This strategy can sometimes backfire and may not work when filling for bankruptcy. Recently transferred property and assets have to be disclosed to the bankruptcy trustee. Any assets that are transferred erroneously could be stopped by the courts and the courts could prevent the transfer from taking place. I caught transferring property without notifying the trustee could result in your bankruptcy being voided or rescinded by the trustee. There are specific guidelines of what assets are exempt in a bankruptcy these guidelines are specifically design to help you protect all or certain portions of a debtors assets while filing for a bankruptcy. Continue reading ‘Pitfalls to Filing Bankruptcy and How to Avoid Them’ »

If your bills are piling up faster than you can pay them off then filing for bankruptcy may be in your future. Filing for bankruptcy is never a good thing but there are times when it is necessary to get you back on track. Some are scared that it will ruin your credit for life, but that is not the case.

There are many people who have filed for bankruptcy and then end up much more successful afterwards. You learn from your mistakes right? There are some very critical things you need to do before you actually file for bankruptcy. You need to sit down with someone who specializes in bankruptcies to get all of your questions and concerns taken care of. Depending on how you file will determine what assets you currently have that may be taken and sold to pay off creditors. Continue reading ‘Filing For Bankruptcy? Here is a Couple Tips to Ease the Pain’ »

For those Americans in the dire situation of finding themselves unable to pay off the debts they owe, for whatever reason, they have probably heard only too often about the possibility of having to declare bankruptcy. Of course, with the long term consequences of such a decision, most people would prefer to do anything they can in the first instance to avoid bankruptcy.

But what can you do?

Well the obvious answer is to sell your assets to pay off debts, thus avoid bankruptcy. But what should you sell and what should you not sell? The golden rule here is that it makes no sense to sell on assets that, under your state law, would be protected anyway if you ended up filing chapter 7. This, of course, varies in the specifics from state to state, but as a general rule it will cover your primary house, up to a certain value, you pension plans, necessary furnishings and a reasonably priced primary vehicle. Continue reading ‘Are There Ways to Avoid Bankruptcy When You Are in a Financial Crisis?’ »

Declaring yourself bankrupt is often touted as a means of getting yourself a financial fresh start and resolving all your money related worries. Now, while it is true that declaring yourself bankrupt is, for some, a legitimate means of resolving financial problems, this is not always the case. And for absolutely everyone, before deciding you are declaring yourself bankrupt, you should consider other options.

If you possibly can do, increase your income by taking a second job or researching the possibility of earning money working part time from home online.

Similarly, you can reduce your outgoings in several ways. One such way might be to transfer your credit card balances to a card with a smaller (or even zero) rate. However, none of this will fix matters if you still cannot discipline yourself in your spending habits. Continue reading ‘Declaring Yourself Bankrupt – Check Out These Bankruptcy Alternatives Before You Proceed’ »

Debt is the plague of the American families, it seems. For decades we have relied overly on credit cards and this coupled with poor discipline leads to bad news in the financial department. As such, a number of people turn to the possibility of filing for bankruptcy as the last option to clear financial problems that are way, way over their head.

While it is true that this does come with some severe and long term consequences, filing for bankruptcy can also provide you the relief you need from the financial migraine you have been suffering.

The first thing to consider when you are thinking of filing for bankruptcy is whether the bulk of your debt would be covered. Bankruptcy cannot help to get rid of all types of debt but if your financial problems are made up mostly by things such as medical bills, loans, credit card bills and other unsecured debt, then filing for bankruptcy can help to alleviate the burden. Continue reading ‘Filing For Bankruptcy – What Are the Major Concerns to Be Considered?’ »

As with all aspects of a legal system, bankruptcy laws vary from country to country. The differences can be substantial. This article is written from the perspective of United States bankruptcy law. With a better understanding of bankruptcy systems around the globe, Americans can better understand their own bankruptcy codes and processes.

Like many areas of common law in the United States, American bankruptcy law is historically rooted in the bankruptcy laws of England. Although since that time the systems have diverged considerably, the American bankruptcy system can be understood as a parallel evolution of bankruptcy law in the English-speaking world. Continue reading ‘Bankruptcy Around the World’ »