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Archive for September, 2009

Bankruptcy court records

Wednesday, September 23rd, 2009

A financial advisor and a bankruptcy lawyer can help you decide what your best option is in order to get rid of your debt load as quickly and efficiently as possible.  Sometimes bankruptcy is not necessary, because other alternatives make more sense because of your particular circumstances.  Maybe getting a simple part-time job to bring in extra income is all that will take to improve your finances, and cutting back on unnecessary expenses can do wonders at the end of the month when the bills are due.

But what if all this is not enough?  What if your debt problems are too severe to be solved without declaring bankruptcy? After all, this is a situation that many Americans find themselves in after they have buried themselves in a deep hole of credit card debt and other types of debt.  If this is the case for you and your family, then bankruptcy court records should not make much difference to you because your family’s financial future is far more important than any embarrassment you might face.

Besides, chances are that no one is going to be looking into this anyway, unless you have an extremely nosy neighbor or you’re running for public office!  Seriously though, make sure you’re making the right decision for the right reasons, and don’t worry about the small stuff.

Why not get free advice from a professional? Schedule a free, no-obligation call with a bankruptcy attorney today. (877) 212-7608

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Bankruptcy Discharge

Wednesday, September 23rd, 2009

Well, you should know that there are certain types of debts that will not be discharged in bankruptcy.  In most cases, child support debts, criminal fines, and back taxes will not be eliminated by declaring chapter seven bankruptcy.  Likewise, student loans are usually not eligible to be discharged during bankruptcy. 

Student loans actually deserve a little bit more discussion.  It’s true that normally student loans are very difficult to get eliminated during personal bankruptcy.  However, it’s not impossible, depending on the details of your situation.  A judge would want you to prove what is called undue hardship.  You have to prove that you would be unable to live a reasonable standard of living if forced to pay back the student loan.

You would also have to prove that your situation is unlikely to improve anytime soon, and that you have made a reasonable effort already to pay back your loans.  Otherwise, getting rid of a student loan (particularly a federal loan which is either given or backed up by the federal government) is highly unlikely.  Determining whether your situation qualifies as undue hardship is ultimately up to the judge. 

Fortunately, credit card debt is probably the most common problem for those seeking to declare bankruptcy.  Well, I don’t mean that it’s a fortunate thing that so many people are buried in debt.  What I mean is that credit card debt is dischargeable during bankruptcy, provided you are approved for bankruptcy to begin with.  Other common debts include medical bills and car payments.  These types of debts help to push people over the edge and declare bankruptcy, and they are usually eliminated during the process.

It’s important to note that there are multiple types of bankruptcy.  Chapter seven bankruptcy is the one that most people think of and is designed to eliminate most (or possibly all) of your debt.  The other major form of bankruptcy is chapter 13, which seeks to create a repayment plan to ease your burden (but does not eliminate your debt).

Why not get free advice from a professional? Schedule a free, no-obligation call with a bankruptcy attorney today. (877) 212-7608

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Bankruptcy Forms – Requirements for filing

Wednesday, September 23rd, 2009

The first step to filing for bankruptcy is by getting a blank form. These forms can be asked for at local bankruptcy organizations, or you can download them from the Internet. There are several available forms, so be sure to take your time and find what suits you best.

The next step is filling out the form with the required information. An easier way to do this is by hiring a personal attorney. The papers would be processed much more quickly in the hands of a lawyer. All you have to do is provide him with all the necessary personal information, and wait for the results.

If you’ve been beset by financial problems, your personal attorney might help you determine what kind of bankruptcy suits you best – chapter 7 or chapter 13.

Chapter 7, or liquidation, is considered to be the most common of all bankruptcies. From the word itself, it entitles you to turn your assets into cold, hard cash. Unlike any other bankruptcies, chapter 7 is rather easier, and can be completed in a short amount of time. These are best recommended for people who don’t have any non-exempt assets.

Chapter 13, on the other hand, gives the debtor time to pay for the debt over a period of 3-5 years. Only people who have income and earn money on a monthly basis are eligible to apply for chapter 13. It is best suited for people who have a lot of secured debts, such as mortgage, cars, and houses, and don’t want to relinquish them.

A quick call to your local bankruptcy attorney could be the answer to all you questions.

Why not get free advice from a professional? Schedule a free, no-obligation call with a bankruptcy attorney today. (877) 212-7608

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Bankruptcy vocabulary

Tuesday, September 22nd, 2009

Collateral

You probably hear the word collateral used in everyday business transactions, but what exactly does it mean and how does it apply to your bankruptcy case?  Collateral is an asset that backs up your debt.  When you put something up as collateral, you are telling the lender what you will give in case you don’t pay back the loan.

In the case of a mortgage payment, your house is a collateral.  If you don’t pay, the bank or mortgage company can take your house.

What is foreclosure?

Creditors need a way to turn collateral into money.  The exact process may vary from state to state, and it may require judicial action depending on the property in question.  In the case of real property (houses and land), it may take a few months for the bank to actually foreclose on your house and kick you out.  If you file bankruptcy before a state judge orders an eviction, you can put everything on hold at least temporarily.

What is a 341 meeting?

This is the name of the meeting that takes place approximately 40 days after you file your petition.  At this meeting, the case trustee represents the creditors and asks you questions about your financial situation.  The creditors may show up, but they usually don’t.  You will usually not deal directly with the judge, either.

No asset case

In about 95% of chapter 7 cases, the debtor does not have any assets worth liquidating.  In other words, most people who file either don’t have any assets or only have exempt assets (like a house protected by Homestead exemption).

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