Are you not afraid to face the worries that come along bankruptcy? How could you possibly avoid the pressing threats that bankruptcy might open up for you? It is basically necessary to get a grasp of the pros and cons of bankruptcy so that you would be able to recognize and appreciate which bankruptcy services would do you well in case that you are faced with such personal dilemma. Read on and open your eyes to the ups and downs of bankruptcy.
The Pros of Bankruptcy
Filing for bankruptcy relieves you of the stress and uncertainties that are caused by the hard way of dealing with the harassing techniques of the creditors.
As soon as bankruptcy has been filed and recognized by the court, a mediator in the person of bankruptcy lawyers, take over the circumstance and draws out the necessary decision to be exercised to settle the matter.
Once bankruptcy is filed, the debts get reduced in the scope that is within the capacity of the debtor. In turn, the creditors are legally forced to accept less money as compared with the full amount of debt as the payment for whatever it is that has been owed by the borrower.
As soon as the matter has been taken to the court, the creditors are bound to stop forcing the debtor to yield to their demands.
The Cons of Bankruptcy
When bankruptcy is filed, the debtor should have to let go of whatever existing assets and resources he has. Once a verdict has been arrived at, the debtor would eventually have to split up those resources that would allow him to amend for the debts he has.
Equity in home would have to be sold as well.
Whatever business is owned would be given up and the employees would be dismissed too.
If the debtor is renting a place and has concurred risky arrears, he could be sent away too.
Bank accounts and other credits would be very difficult to apply for because the businessmen and creditors would have second thoughts of entertaining you.
Filing for bankruptcy could be really expensive since there are some payment to make for the trustee, court fees, and the likes.
The financial dealings would be examined and any doubtful arena could be investigated thus putting the debtor into hot water.
The debtor would be hindered from holding public offices and practice his profession.
The name of the debtor would be published and wherever he is in the world, the creditors would be able to view the data and therefore obstruct him from gaining another loan.
Now as you've started again with a new life, you have to make it a point to secure your credit standing. One of the effective bankruptcy services is the credit monitoring. Through credit monitoring, you must work up on raising your credit score. You could also opt to do it by yourself but having an efficient bankruptcy service of credit monitoring would be more systematic.
There are lots of companies that would be willing to offer you with this kind of bankruptcy service. Having seen the pros and cons of bankruptcy should already wake you up and refrain you from getting into the verge of the dilemma. You could make use of the Internet resources to avail of the credit monitoring bankruptcy service.
Why Do You Need a Bankruptcy Lawyer?
Bankruptcy lawyers are the ones to whom you could turn for help when you find yourself in a pool of debt and you think that there is no other way out. Bankruptcy is the legal procedure which permits the debtor to permanently or temporarily avoid the payment of his personal debts provided that there are specific conditions that would govern them.
The United States congress has pushed through with the Bankruptcy Code in the year 1978. The main goal of the Bankruptcy Code is to provide relief and secured structure to those people who are seriously placed in several debts.
Through the protection offered by the bankruptcy law, the repayment of the debts could be stipulated to be suspended, cancelled, or be made into several payment schemes. To date, there are two kinds of bankruptcy which are made readily available for the people. These are confined in the Chapters seven and thirteen.
If you are in a specific state and you need to file for bankruptcy, you have to seek the help of a bankruptcy lawyer. The states cover different laws on bankruptcy and it must be made a point that you become aware of the existing laws of the state in which you live.
With this law, it is mandatory required that the single debtors who actually file for bankruptcy claim either on or after the date of October 17, 2005 has to go over a credit counseling for a period of six months before the person could then claim for bankruptcy relief. The law likewise states that the debtor must have completed a financial management instructional course right after his filing for bankruptcy. In order for you to be abreast with all of these facts, you must get the services of an expert bankruptcy lawyer.
There is no doubt that bankruptcy is truly a burden on one's part. Whatever business you are handling, it is very difficult to be faced with a problem such as bankruptcy. The situation of being unable to fully meet your financial obligations and having to experiencing creditors running after you, threatening you, or suing you is never pleasant.
While bankruptcy may be a big blow on your ego, there is no other recourse left to you especially if you have already exhausted all your other possible options. You need to bear in mind that the bankruptcy lawyer would have to play a vital role in defending your side. He would take charge of studying your case, revealing your options, and letting the court and the creditors understand the real score in your financial status. Actually, your future after bankruptcy could lie on the hands of the bankruptcy lawyer. That is why it is such a crucial state to be looking for a bankruptcy lawyer.
There are many ways as to how you could get bankrupt. It could be because of your inability to pay for your debts. You may have offered a deal to the creditors on how you could repay them yet they simply refuse to hear you. The creditors could go to the extent of pushing you too far and bring the case to court. If this is what happens now, you must be ready to face them all as you get backed up by a bankruptcy lawyer.
Filing for a claim for bankruptcy is such a complicated legal process and since you are not that good with the legal process, you have to be properly guided by a bankruptcy lawyer. Therefore, be careful when choosing one.
Bankruptcy is a very serious topic. The term itself is often encountered by people who are engaged in the world of business. Although many people know what bankruptcy is, very few actually have in-depth bankruptcy information. Because of this, the term is often misunderstood. With the right type of bankruptcy information, people in the business world should be able to make their financial decisions with more care. Now where should one look for bankruptcy information?
1) Lawyer – a lot of people have the impression that bankruptcy is just something that happens. However, this is not the case. Bankruptcy is actually a legally-declared state. This means that decisions are involved in bankruptcy. The law provides the backbone for bankruptcy.
This means that consulting a lawyer should give you a pretty in-depth look at bankruptcy information. However, you have to realize that you can't just see any type of lawyer. Today, there are a lot of lawyers specializing in bankruptcy and their offices should be willing to give you the bankruptcy information that you need. After all, it can be considered as advertising.
2) Financial manager or Accountant– if you are looking for more specific types of bankruptcy information, such as if you would qualify to apply for bankruptcy then you should go consult a financial manager or an accountant.
Doubtless, they will refer you to a lawyer sooner or later but at least you will be able to get the type of bankruptcy information you need first. By examining the state of your finances, you will be able to know whether or not you can be free of your debts by declaring bankruptcy.
3) The internet – the internet actually provides all sorts of bankruptcy information for those willing to search hard. A great site you can use is bankruptcyinforamtion.com. This site contains all the basic bankruptcy information you may need. This means that if you are just looking for general bankruptcy information, then you should find them in this site. Actually, basic bankruptcy information can be found almost in any site dedicated to finances. This type of bankruptcy information is also free. However, if you want something more in-depth, you might have to pay for it or at least commit to a website.
The great thing about websites is the fact that you can browse through any topic you like at your convenience. Through the internet, you will be able to search for bankruptcy information regarding specific state exemptions. Some websites also offer you the use of finance calculators to see what type of bankruptcy is the best for you.
That's right: there are different types of bankruptcies. Getting in-depth bankruptcy information will allow you to learn about each type and make sure that you make the decision that's right for you.
4) Bankruptcy courts – there are certain courts which are specifically charged to handle bankruptcy cases. In these courts, you will usually be able to gather the bankruptcy information you need.
5) Books – another way to gather in-depth bankruptcy information is to read books. Mind you, the books have to be new in order to be relevant. This is because bankruptcy laws are constantly amended. By getting books, you will be able to study the bankruptcy information and absorb it at a more comfortable pace. This way, you will be able to learn more about it.
It is very common today for most Americans who are within the bracket of the middle class to find themselves in various pools of debts. This is somewhat typically attributed to the ever difficult job handling, heightening costs of medical bills, and the frequent divorces that result to the growing child support and alimony payments. It is also very common for people to realize that repaying their loans is that hard on their part. This is the sad side of it. When people avail of loans they are that excited to get their hands on those but when it comes to settling their debts, they seem to be out of their minds.
There is the personal bankruptcy law. The personal bankruptcy law contains a lot of provisions that are specifically designed to aid the affected individuals in repaying all their debts. Those who intend to honestly imply their intention of starting anew are therefore helped out by the personal bankruptcy lawyers with regards to subscribing to the applicable provisions of the personal bankruptcy laws.
There are basically two ways in which a person could be affirmed to be under the bankruptcy stage. It is either the individual himself affirms that he is indeed suffering from bankruptcy and the creditors that he owes are the ones to take the case into a legal procedure so that the involved debtor would be called to be under the bankruptcy dilemma.
What are the chances that stand for the affected or involved person? In most cases, it is best that the person himself admits that he is on the verge of declaring bankruptcy. If you immediately recognize your shortcomings, the creditors will stop cornering you, harassing you, threatening you, and pushing you to yield to their demands.
But then, do not be overly confident that you would be able to escape your responsibilities because you will not be unburdened with the home mortgages and car loans. Before your filed personal bankruptcy would be recognized by the court, a trustee or attorney would be assigned to do the background checking on you to oversee the exact amount that you have as a debt. These personal bankruptcy lawyers are called as the "trusteesin bankruptcy" or the TIBs.
As personal bankruptcy is declared, the debtors would be able to repay those debts which could be covered by his remaining fund. Usually, the non-exempt assets and resources are split up to cover for these. The trustee in bankruptcy monitors the repayment scheme of the debts and guides the debtor all throughout until such time that his financial responsibilities are almost fulfilled. Once there is already a personal bankruptcy that has been filed, the debtor is protected from the possible harassments. It is mandatory for all creditors to wait for the verdict of the court and to stop bothering and pressing the debtor to give them back whatever it is that he owes them.
The two kinds of personal bankruptcy laws are the Chapter 7 bankruptcy law which is also known as the Liquidation or Straight Bankruptcy and the Chapter 13 bankruptcy law which is otherwise called as the Wage Earner Bankruptcy. Under the provisions of the Chapter 7 bankruptcy law, the proceeds from the sold property of the debtor are delegated to the payment of the credit card bills and they could not be utilized to pay off the taxes, housing loans, car loans, student loans, and even the child support obligation.
The Chapter 13 bankruptcy law asserts that personal bankruptcy must be filed if the debtor has the capacity to pay back his dues. It is required that he submits a recent tax return statement and should undergo the credit counseling course prior to the filing.
Personal bankruptcy is not something that could impulsively be filed. There are considerations to take and you have to be aware of those.
Mortgage after Bankruptcy: Do not Lose Hope Yet
You find yourself bankrupt and you are wondering about things about your mortgage. Can you still get a home mortgage after bankruptcy? This is the question that is foremost in your mind. The good news is that there is still hope for you.
Below are some of the questions that people are asking about home mortgage after bankruptcy.
How long does your loan will get approved after filing for bankruptcy?
Different lenders have different specifications regarding mortgage loan approval. This is because they have a variety of standards to follow which may vary from case to case.
You will come upon some lenders that can approve the loan in two years time. While the more strict ones need you to wait three years before you can get a loan. The varying policies are still dependent on your ability to pay plus certain collateral that you need to present. These things are sort of like a security measure on their part since they are not yet sure if you can get back on your feet again or be buried more into debts.
If you are one of those who have been approved for a mortgage in as little a time as two years, prepare to pay much higher interest rates. So if you want to save more on the interest rates, it is wise to wait for some years more. That way, the interest rates you will be paying will not be as high.
Can you get the best available interest rates?
This is very much possible. The best way to achieve this is to provide a large down payment.
Keep in mind that the interest rates you need to pay will depend upon your ability to pay after the bankruptcy. This is why you need to maintain a good history of on-time and regular payments so that it will reflect back on the mortgage interest loans that will be given to you.
What additional factors will your mortgage loan approval be based upon after bankruptcy?
Your credit is a major consideration when applying for a mortgage loan after bankruptcy. Your credit standing will make a lot of difference between getting and being disapproved of that loan.
Other important factors to consider are your income, employment history, the ratio of your debt over your income and the down payment you have provided. Make sure that a good record will reflect back to you once all these factors are checked.
The most common problematic factor that is facing people is credit standing. A lot of people do not take into account their credit standing. It would only be later on when they need it that they will start repairing about bad credits to their name.
Nowadays, you can get the help of institutions in repairing bad credits to get you ready for a mortgage loan after bankruptcy. The best thing to do is check how your credit standing is if you find yourself on the brink of bankruptcy. That way, you can plan ways of making the necessary repairs in time for the evaluation of your loan and your standing.
There is still hope for you. Lenders out there are more than willing to provide you with a mortgage loan after bankruptcy. Know the important factors first so you will not be left groping in the dark and best find the lender that will suit your needs the most.
In the past, people who could not afford to pay off their student loans were able to file for bankruptcy. However, many people abused student loan bankruptcy, leading the government to make amendments to the law. Today, creditors can practically no longer be prevented from collecting by the debtor's declaration of student loan bankruptcy. There is one situation wherein the student loan bankruptcy can fully discharge a person's debt and that is only when the person can show that the loan causes "undue hardship" on his or her family.
You might think that this would be an easy loophole. However, you should know that filing for student loan bankruptcy under "undue hardship" exemption can be quite hard. You might have to get a good bankruptcy lawyer to help you with this. Courts today are extremely reluctant to approve student loan bankruptcy cases.
This is made even harder by the fact that there are certain requirements for people to prove "undue hardship". For one thing, you need to show that you are physically incapable of working. This means you have to have some sort of disability to keep you from doing the smallest task required to earn you money. Not only that, you have to show that there is practically no hope of you being hired ever in the future.
Besides this, however, there are still things you can do to make student loan bankruptcy laws work for you. You can file a petition under chapter 13 of the bankruptcy law. This way, declaring student loan bankruptcy will ease your burden by allowing you to pay your creditors in small amounts. However, there are certain prerequisites to declaring this type of student loan bankruptcy.
For one thing, you will need to have a stable and disposable income. This means that you have to prove that you have a job you will be able to keep. The job you get should not only be long term, but it should pay enough to let you live and have something left over. Disposable income means that you need to have some income left over even after you have paid all of your expenses. This is very practical since how else can you pay off your debt? Student loan bankruptcy does not really need to discharge your debts in order to ease your burdens.
During your filing for student loan bankruptcy, you should also look into challenging the balance of the loan. This is because of the fact that student loans often get passed from creditor to creditor. With each creditor, the amount of the interest also changes. By challenging the amount involved in the student loan bankruptcy, you might be able to lower the amount that you have to pay significantly.
This can surely ease a great burden which you might have to carry for a few years. This is because filing your student loan bankruptcy will require you to stick to a payment plan which should knock out a huge percentage of your debt. Notice that the plan only requires you to pay for a percentage.
This means that the payment plan does not really account for the whole loan. However, filing for student loan bankruptcy should be able to at least help you develop a habit of paying your debt regularly and on time.
How should You Select a Bankruptcy Attorney?
Everyone comes to a point when their status in life is reversed. At one time, you are on top. Your business is in full swing and the outpour of money in your pocket has never been a problem. But then, there is always the moment when your star starts to fade out. Your soon find out that your financial life is never the same again. You are now left with no other recourse but to consider the fact about filing for bankruptcy. As you start to see the perspectives concerning bankruptcy, you will have to be guided in the entire process. Because there are too many legal terminologies that would be covered in your venture to file for bankruptcy, you would need an expert in that arena. And that is no other than a bankruptcy attorney.
It is very significant that a bankruptcy attorney is capable of supplying you with the beneficial insights, other alternatives, possible escapes, conditions, terms, and the possibilities that would come your way as you deal with bankruptcy. A legal counselor could be found in the person of a bankruptcy attorney. He is the one who understands all the guidelines, terminologies, and concepts that come along with bankruptcy. Do not be mistaken by the fact that any practicing attorney would do. You need someone who specializes in that field. The lawyers have their own delicacies, so to speak. And in your battle against bankruptcy, all you need is the services of a bankruptcy attorney.
There are some important matters that you need to put in mind as you think about hiring a bankruptcy attorney. First and foremost, consider the confidence level of your bankruptcy attorney. What is meant by this? You have to look into his background. Is he fully educated with the most recent laws? Has he handled cases and won them? How is his credibility? Does he have a good reputation to boast of? What could other clients say about him? By knowing the background and capacity of your bankruptcy attorney, you will somehow be assured that you would possibly win in your quest.
Another concern to look into is with regards to the fees that the bankruptcy attorney would be charging you. If he is well-known and he really is that good in the field, then you may expect him to charge you with a considerable amount of fees. But if he is still new in the field, you could bargain with him if ever he charges you with lesser human consideration.
If you are not yet that decided with filing a bankruptcy case but you just want to be enlightened by the counsels of a bankruptcy attorney, then you could opt for the free consultation attorneys. These free consultation attorneys really manifest their concern for you. They may just be too loaded with many cases and inquiries but at least you have given it a try. Feel free and be comfortable to open up your case with these people.
Is also matters that the bankruptcy attorney that you choose would accommodate your queries. It is natural for you to be asking lots of questions because you simply want to be made aware of the deals of bankruptcy filing. Therefore, get the services of a bankruptcy lawyer who is sure to be approachable.
You must understand the vital point of getting a bankruptcy attorney that could well represent you in your ordeal. Be sure that you work with no one but the best in his field if you want the case to run on smoothly.
Bankruptcy is no joking matter. In the last fiscal year alone, 1,112,542 people filed for bankruptcy in the United States. This just shows how much people are dependent on debt today. Bankruptcy, although it will dissolve any liabilities you have, also means that you have to start over. Getting great bankruptcy advice is very important. Here are the main ways how first rate bankruptcy advice should be able to help you:
1) Business operations – the best bankruptcy advice you can get is "avoid it". Any respectable entrepreneur should aim for a clean credit record and should aim for success. Although there are certain things that can abruptly cause a business to go bankrupt, there are also certain measures that an entrepreneur can take to ensure that it never happens. By getting first rate bankruptcy advice, a person would be able to avoid the many pitfalls that cause businesses to fail.
2) Decision-making – bankruptcy should be seen by people as a last resort. However, there are those who think about declaring bankruptcy when they first encounter hardship. You have to realize that challenges are normal during the operation of a business. You shouldn't just cut and run in the first sight of trouble.
Most people make hasty decisions regarding bankruptcy simply because they receive bad bankruptcy advice. Bad bankruptcy advice either comes from people who don't know any better or it comes from greedy people who only think about their own profit in the bankruptcy. First rate bankruptcy advice should teach people not just about the benefits of declaring bankruptcy, but also about the consequences. This will help people make right decisions concerning alternatives to bankruptcy.
3) Processing – the actual process of filing for bankruptcy can be a very confusing one. Because of this, great bankruptcy advice is essential. Great bankruptcy advice can help people make the different decisions concerning bankruptcy. You see, during the actual process of filing for bankruptcy, a person has to face a million little details.
Making intelligent decisions can be hard, especially since bankruptcy can be a very emotionally draining time for a person. To help you get through this time, great bankruptcy advice is surely needed.
4) After the Filing – many people see filing for bankruptcy as a chance for renewal. They see bankruptcy as a second chance. People may see it that way, but they still need to learn how to treat it that way. The only way that people can do this is if they get great bankruptcy advice. Bankruptcy advice does not have to end when the filing is done. Great bankruptcy advice continues in order to help people recover from the defeat that they have experienced. Great bankruptcy advice will allow them to move on with their lives and reach the success that eluded them in the past.
The value of great bankruptcy advice is in the fact that it can help you go through your failure intelligently. You may have failed in your endeavor, but great bankruptcy advice will help you realize the fact that you have not failed in life.
Great bankruptcy advice will help you make sure that you will overcome despair and realize the fact that you have been given a new chance to improve your life. Great bankruptcy advice will awaken you to the fact that a chapter of your life is closed, but the book is still being written.
Although bankruptcy is seemingly quite common in the world today, there are still many people who understand very little about the way that the whole process works. A lot of bankruptcy questions still proliferate on the internet and there just can't seem to be enough resources to answer them all. Here are some of the most common bankruptcy questions:
1) What is bankruptcy? – Many people ask this bankruptcy question mainly because of the discrepancy between the reality of bankruptcy and what is portrayed in media. Many people think that bankruptcy is just something that happens. But actually, bankruptcy is something that's declared by law. When your company goes bankrupt, it wouldn't be a sudden occurrence of you finding out that the treasury is empty. It would be a decision reached by either your company or your creditors. It would be a process to be decided and overseen by the courts.
2) Is bankruptcy something to be desired? –this bankruptcy question has something to do with the pros and cons of bankruptcy. In order to answer this question, you need to understand that bankruptcy should be considered as a last resort. Another important factor in answering this bankruptcy question is knowing the fact that although declaring bankruptcy will be able to rid you of most of your debt, it will also clear out most of the assets of the company. If you are a single proprietorship, you have to know that the assets of your company and your personal assets have no distinction under law. You will be cleaned out.
3) What's Chapter 13 and Chapter 7? -Many people who are just learning about the different facts regarding bankruptcy are faced with the terms "chapter 13" and "chapter 7". It is only natural that this is one of the most common bankruptcy questions circulating today. The fact is that Chapter 13 and 7 are two chapters of the bankruptcy law that people can file under. Chapter 13 allows a person to renegotiate with the creditors. Under chapter 13, a person can be allowed to repay all of his debts over time.
The second part of this bankruptcy question is chapter 7. Under chapter seven, a person can choose to liquidate all assets and have those assets distributed by the court among creditors. Not many people know that even in bankruptcy, you still have a choice.
4) Which chapter is for me? – When people learn about the options that they have for filing bankruptcy, the next bankruptcy question they raise is what chapter should they choose? Well, chapter 7 seems to be a popular choice since it does not require you to pay back any of your debts. However, if you choose chapter 13, you will get a better opportunity to discharge your debt and still keep all of your stuff. Sure it will be harder, but in the long run, it will leave you with more stuff.
5) Will all of my debts be wiped out by bankruptcy? – Many people think that by declaring bankruptcy, all of their debts will be wiped out. However, the real answer to this bankruptcy question is no. There are certain types of debts which are protected by law in case the debtor declares bankruptcy. This bankruptcy question has risen in popularity ever since the government released the new bankruptcy law which is stricter in discharging debts.
