Bankruptcy Xml

Bankruptcy: You Are In Good Company

Hardships and adversities are the clay from which our character is molded. It is the trials and tribulations of life that shape who we are as individuals. It is our responsibility to learn from all experiences and most importantly, to use the bad ones as springboards into a positive future.

Financial hardship can be the worst type of adversity as it is typically accompanied by severe emotional stress and familial hardship. Thanks to the built in "fresh start," the bankruptcy process can be used as a recovery tool to propel you into a future of financial freedom.

Some of the greatest entrepreneurs and leaders of our time were insolvent at one point in their lives. Henry Ford, Walt Disney, and even Abraham Lincoln all hit rock bottom before moving on to change not only their worlds, but ours. If it were not for the fresh start afforded to them through bankruptcy, these great men could have never risen from the ashes of financial ruin.

The fresh start is not just handed to you on a silver platter. You must work for it with the understanding that bankruptcy is just the starting gate in the race for your financial future.

Post Bankruptcy: Where Do I Go From Here?

Common post-bankruptcy questions are: "Where do I go from here?" "Will I be able to reestablish credit?" "Is my credit ruined?" These are all excellent questions and they are all answered by the fresh start concept.

Upon completion of any bankruptcy case, you are granted a discharge. Simply put, this means that you are now debt free and your credit is cleansed. A common misconception is that bankruptcy will ruin your credit. While temporary damage is done, the long term positive effects are not typically measurable and therefore, they are not given the air time they deserve.

Along with clean credit comes a refreshed mind. It is the emotional benefit of the fresh start that is so often overlooked in this process. Without financial stress and worry wearing on you and your family, you can look to the future with a positive outlook.

Working For Your Fresh Start

The fresh start is available for the taking post-bankruptcy. It is not just handed to you. It is your responsibility to work hard to rebuild your credit and make the most of the opportunity afforded to you while at the same time, avoiding the credit traps peppering your path.

In addition to building your credit, you must build new financial habits. Living a frugal lifestyle and saving for the future are imperative to establishing financial happiness. It is a good idea to plan for the worst and if done right, loss of employment, medical emergencies and other financial obstacles will be small bumps in the road rather than potholes.

An experienced attorney or financial adviser should be able to help you come up with a plan to build your credit and save for the future, regardless of your income.

"Failure is simply the opportunity to begin again, this time more intelligently." - Henry Ford

This quote says it all. This is the man who brought the affordable automobile to consumers on a mass scale and by doing so, changed the world. He experienced insolvency, financial hardship and was on the brink of ruin. He did not harp on his failure and continue down the wrong path.

Thanks to the bankruptcy fresh start, Henry Ford was able to rise up and was afforded the opportunity to begin again. He made the most of it and so can you!

Frank Pipitone is a Long Island Bankruptcy Lawyer who focuses on all issues relating to consumer protection and debt resolution.

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Bankruptcy is often associated with failure and poverty, and it is something that everybody hopes to avoid. However, sometimes, things are beyond your control, and you may find yourself having to decide whether you should file for bankruptcy or not. Bankruptcy can happen because of misfortune or misconduct, and you can go bankrupt due to no fault of your own. In itself, bankruptcy is not a bad thing, because it provides a way for you to get rid of your debts. It is actually a solution to financial problems that already exist, and it is not the cause of those problems. In fact, considering the dire financial situation that you may be facing, things can get much worse if you do not declare bankruptcy.

Bankruptcy is a legal option that is available to individuals and businesses that are unable to pay off their outstanding debts. After you file for bankruptcy, you are required to meet with a judge, who may order for most or all of your debts to be discharged or give you a new payment schedule. Businesses that declare bankruptcy may be ordered to discontinue operation or make reduced payments to their creditors. Bankruptcy can be filed by almost anyone, and it can be voluntary or involuntary. Voluntary bankruptcy is filed by the debtor, while involuntary bankruptcy is initiated by the creditor.

While filing for bankruptcy can free you from your financial obligations and give you a fresh start, it comes with unfavorable consequences as well. Usually, you will lose control of your assets after you declare bankruptcy, and your assets will be used for settling your debts. Depending on which state you file for bankruptcy in, you may be allowed to keep your principal residence only, or several assets that are needed for starting over, which include your principal residence, vehicle, and others. Additionally, you will also lose the privilege of getting credit, unless the lender specifically agrees to it. It may also be more difficult for you to find employment after you have declared bankruptcy. If you are filing for bankruptcy for the first time, the discharge period is usually less than one year, but this can vary greatly from one case to another.

The process of going bankrupt involves substantial paperwork and legal procedures. First of all, you are required to file a petition with your local bankruptcy court. The purpose of this petition is to declare that you are no longer able to meet your financial obligations. To complete the petition process, you have to fill out a bankruptcy petition form and pay filing and administrative fees. Other than filing a petition, you are also required to declare the state of your affairs. To do so, you need to submit a complete list of your assets, debts, and creditors to the court. The list should include the names and addresses of all your creditors, as well as the amounts that are being claimed. Along with the state of affairs, you have to provide a declaration stating that you will take an oath before a certified court officer.

Jason Kay recommends finding a competent bankruptcy lawyer before filing for bankruptcy protection.

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Money problems in marriage are stressful for any couple. In fact, money trouble is the number one cited reason for divorce in the country today. With so much at stake, it is a wonder how any couple makes it through. Luckily, filing for bankruptcy can provide some much needed financial relief for a couple. However, there are some things to consider about how to best proceed with a bankruptcy both in marriage and after a divorce.

In Marriage

Filing for bankruptcy in marriage posses some mild challenges that can be easily managed if handled correctly. There are two ways to file for bankruptcy in marriage.

The first is filing as an individual, separately from your spouse. This means that you are filing for bankruptcy protection and debt resolution without your spouse. Essentially you are agreeing to take sole liability for the debts when you file separately. This is usually the best option when one spouse owns the bulk of the debt burden, shares very few accounts with the spouse or needs resolution on debts that were accumulated prior to marriage. However, it is important to remember that even though you are filing separately, there may be some concern over shared assets. In other words, creditors may have the right to pursue payment from the non-filing spouse and seize certain shared assets.

The second way to file in marriage is together, or jointly. Filing as a couple means that you both are claiming responsibility over the debts and both requesting protection over assets. While filing jointly may offer better asset protection, it isn't for everyone. Typically, you would only file together as a couple if the bulk of the debts are held on shared accounts, or accounts that list you both as liable; or your shared assets are at risk from creditors.

After Divorce

Filing for bankruptcy after a divorce poses unique challenges to both the filing and non-filing spouse. The biggest cause for concern when filing separately after a divorce is how debts will be handled. Although you may be able to secure a debt discharge, the non-filing spouse may still be held liable by the creditor. This is especially the case for jointly held debts, or those accumulated together in marriage on a shared account. The trouble here is that if the non-filing spouse is unaware of your filing, or does not file themselves, they could be held solely responsible for repaying the debts.

Another issue concerns divided assets. Any assets that were divided in the divorce property may still be at risk from creditors in a filing. If the non-filing spouse retained possession on a specific asset that is tied to a debt in the bankruptcy case, the asset could be repossessed by creditors. The best way to manage debts in divorce is to specifically outline debt liability in the divorce decree along with asset possession, in order to avoid confusion during a bankruptcy case.

Christopher M, of Lee Law Firm, understands that financial hardships can affect honest, hard-working people. His early experience growing up in a very blue collar family in a rural area of Indiana, made a significant impression on his business philosophy today. As a child, he watched his family struggle as money didn't come easy and his parent work hard to provide for their family. As a bankruptcy attorney in Dallas, TX his practice has given him the opportunity to directly impact the lives of many people.

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HOW TO REBUILD CREDIT AFTER BANKRUPTCY

So you've filed for bankruptcy but now what? You've gotten a fresh start from bankruptcy and this time you want to make sure your financial future is secure so this doesn't ever happen again. But how and where do you start? This article will discuss the steps you can take to build back your credit so that you can finally get your financial life back on track.

First and foremost, make sure that you pay ALL of your bills on time. This is so critical after bankruptcy. The quicker you show that you're responsible by paying your bills on time, the quicker you will see your credit score increase. And as more time passes and you establish more credit, the effects of bankruptcy will lessen. However, if you have a late payment or get put into collection after bankruptcy, your credit score will take another beating and lenders will still look at you as a bad risk.

Create a budget so that you keep your spending under control and stick to it. You don't want to repeat the same mistake that caused you to file for bankruptcy in the first place so creating a budget is crucial to making sure you stay on track financially. The first step in creating a budget is finding out your average monthly income. Write down all your sources of income and take into account any kind of overtime or bonuses. Next you'll want to list all your monthly expenses so you can see how much you're spending each month. You'll want to keep all your receipts and bills and write down the actual amounts so that you know how much you actually spend versus simply guessing what you spend each month. Many people underestimate how much they spend and some expenses will vary throughout the year (i.e. gas, electricity, taxes, etc.). By writing down the actual amounts, you can accurately determine if you're living within your budget or going over it. You'll also be able to see trends in your spending so you'll know where you can cut costs and you can adjust your budget accordingly.

Start putting aside money for an emergency fund even if it's not a lot. While your main focus after bankruptcy is to make sure you pay all your bills on time, you'll also want to make having an emergency fund a priority. Once you have your budget in place, start setting aside some money each month for your emergency fund. While you probably can't save enough to cover 3-6 months worth of expenses as most experts suggest, you can at least start saving up for minor emergencies. You'll never know when an unexpected expense will pop up and you'll want to be able to have that cushion.

Get a credit card that will help you rebuild credit. One way to help rebuild credit is to look into getting a secured credit card. A secured credit card is a type of credit card where you deposit cash into the card and that deposit becomes your credit limit. You can only charge what is available on the card so beware of fees and additional charges. You'll want a card that doesn't charge an application fee and one that has lower interest rates and fees. If you're a credit union member, ask if they offer secured credit cards because they typically will have lower interest rates and fees. If you can establish a good payment history, some banks will even add to your credit limit and you could qualify for an unsecured credit card within a year. Lastly, make sure that your card payment history gets reported to the credit bureaus so that it's positively factored into your credit score.

Don't beat yourself up over your present circumstances. If you've filed for bankruptcy, just know that you are not alone. There are many people who have been or are currently in this situation. Yes, this will be a tough time in your life but it won't last forever. You don't have to let bankruptcy define you. View this as a temporary setback and look forward to the possibilities of the future. The point of filing for bankruptcy is to get back on track financially and to get a new start on life. So make the most out of this opportunity that you've been given and create a new path for yourself.

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Small business owners and consumers who are facing increasing debt may think of filing for bankruptcy. Sometimes, filing bankruptcy is the only choice to come out of those debt issues. Credit counselors and bankruptcy experts are experts for seeking advice before thinking ahead and filing for bankruptcy.

The rapidly decreasing economy, rising medical costs and job losses may lead many people to file bankruptcy.

There are several things an individual has to consider before filing the bankruptcy. One important aspect you should think about is what chapter of bankruptcy can be applicable to your case and also consider whether the chapter is best option for you. Some important things that you need to consider before filing bankruptcy, such as:

• Find a lawyer: This is the first thing you need to do. Although according to law, there is no compulsion to hire an attorney for bankruptcy filing, but bankruptcy is a highly complicated part of law that alters frequently. Even though you want to do it yourself, you may not do it properly, so it is better to hire an attorney. Make sure that the lawyer should be experienced in dealing such cases and also responsive towards your case, and you should feel comfortable while working with the lawyer.

• File your taxes: While you are filing bankruptcy, it is required to file all of your tax returns with a copy of most recent return. If you have failed in filing your taxes, bankruptcy can be banished.

• Keep paying for the things that you want to keep with you: If you file bankruptcy and you want to keep your car, house, or any of your assets that have loan against them, you need to continue making the payments on debt.

• Stop paying unsecured debts: Unsecured debts will be detonated in bankruptcy, so that you don't have further liability for those debts. These unsecured debts include things like personal loans, credit cards and medical debts. If you have decided to file bankruptcy, there is no sense of paying these debts. It is just throwing away your money. Some debts like most past due taxes, student loans cannot be set to free even though they are unsecured. So, you are required to continue payments for these debts.

• Get Credit report: Get a copy of the credit report as this can make you observe what exactly your debts are. This will be helpful for you to understand your entire financial picture and you can decide whether filing bankruptcy is best option for you or not.

• Gather documents: You need to gather lot of documents to prepare bankruptcy petition, many of the documents are required to receive within time. Plan according to that and begin gathering information regarding your assets, debts, expenses, and income.

Riverside Bankruptcy attorney can help you a lot in filing bankruptcy. To know more information on filing bankruptcy, you can consult experienced bankruptcy attorneys in your area.

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There are several reasons why debtors file Chapter 13 bankruptcy. The first reason is to benefit from the automatic stay. The automatic stay is what prevents creditors from collecting debt from people in bankruptcy. Once a bankruptcy case is filed, creditors are required by federal law to stop all attempts to collect debts. This includes repossession of cars and foreclosure of real property such as a home. It also includes phone calls from creditors, lawsuits, wage garnishments and all other attempts to collect debts incurred prior to filing bankruptcy. The automatic stay is a powerful tool of the Bankruptcy Code. Creditors who violate the automatic stay risk having financial penalties imposed upon them by a bankruptcy judge.

The second form of relief available in a Chapter 13 bankruptcy case is the discharge. Once a bankruptcy debtor completes a Chapter 13 case, all creditors are barred from future collection of the debts listed in the bankruptcy schedules, unless the Chapter 13 plan provides that the debt survives the discharge or for some reason the debt is not dischargeable. The discharge shields a debtor from future collection of all pre-petition debt permanently.

Debtors who file Chapter 13 bankruptcy don't receive these protections without giving something in return. In order to receive a discharge, debtors must file a Chapter 13 plan. The Chapter 13 plan explains to the court how the creditors are to be repaid in the bankruptcy case. Not all creditors are treated the same way in Chapter 13 plans. Secured creditors such as mortgage companies and creditors providing loans for the purchase of automobiles can be paid through payments to a trustee or the plan may provide that the debtor will continue to make payments outside the plan by paying the creditor directly. Priority creditors include debts owed to the Internal Revenue Service for taxes and past due child support. In most Chapter 13 bankruptcy cases priority creditors are paid in full. In addition to curing past due taxes and child support in the plan, debtors must continue to file tax returns each year and continue paying their child support.

Unsecured creditors are paid if the debtors have disposable income and are able to pay these creditors in the plan. Unsecured creditors may receive no payments in a plan, they may be paid in full, or they could receive a partial payment. Student loan debt is not dischargeable and any portion not repaid in the plan will have to be paid after the bankruptcy case is finished. At the end of the Chapter 13 bankruptcy case, debtors receive their discharge, and if all goes well they receive a fresh start having wiped out most or all of their unsecured debt, paid off their priority debt, and repaid secured creditors provided for in the plan.

Nathan S. Graham is an attorney with The Wright Firm, LLP. Nathan represents individuals and small businesses in Chapter 7 and Chapter 13 bankruptcy cases. The Wright Firm, LLP, has offices in Dallas, Denton, Lewisville, and Frisco.

For more information about Nathan Graham visit the Wright Firm's web site at http://www.northtexas-bankruptcy.com/.

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There is much debate among professionals as to which debt relief solution is best. The real answer depends on the person's financial situation. Because no two people have the same financial situation, there really is no short answer to which type of debt relief is best. However, there is much to be considered whether choosing to get out of debt on your own, negotiate with creditors or file for bankruptcy.

Traditional Options

There are several different options available for debt relief outside of bankruptcy. A debt management plan is one that is developed and implemented by the debtor. You don't always have to seek professional help when attempting to resolve your debts, but it can be helpful. In a debt management plan, you would outline the debts you are targeting for reduction and develop a strategy for repaying those debts as quickly as possible. This may include increasing your budgeting and restricting your spending, or you may choose to liquidate some assets to gain more money to pay the debts.

Debt settlement and consolidation options are also fairly popular among those who wish to get out of debt without the help of bankruptcy. However, both of these options typically require the help of a third party agency that often mediates negotiations with a creditor. Settling debts essentially means that you are able to obtain an agreement that allows you to repay less than what is actually owed on the account. Creditors are very strict when it comes to agreeing to debt settlements and the process can be complicated.

Debt consolidation is not necessarily a complicated process, but one that should still be pursued with caution. Consolidating debts involves accepting a new loan that covers the amount owed to all creditors. The consolidation loan lender pays all of your creditors individually, while you pay them a single loan payment with interest. The problem here becomes the issue of being locked into a new loan with a longer loan term and higher interest rates.

Bankruptcy

Although bankruptcy isn't for everyone, it can certainly be beneficial to many people. Whether you are looking to protect yourself from creditors, keep your assets safe or just looking to resolve your debts through a legal medium, bankruptcy can bring additional protection than other forms of debt relief. Like a debt settlement, a Chapter 7 bankruptcy can eliminate debts with little cost to you. However, a Chapter 7 bankruptcy can also prevent creditors from attempting to collect in the future. A Chapter 13 bankruptcy could be viewed as the legal equivalent of a debt consolidation, except that it does not require you to take out a loan. You will be able to make a single payment that goes towards repaying your debts, without having to worry about interest rates and longer loan terms.

The Lee Law Firm is a Dallas,Texas bankruptcy firm that aims to provide local residents with high quality legal representation at affordable rates. Their attorneys are professional and compassionate, giving clients the personalized attention they deserve. When filing bankruptcy, the Lee Law Firm is the right choice to help in the face of financial hardship.

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