All About Bankruptcy Court

In a nutshell, bankruptcy cases are voluntary or involuntary. The vast majority of cases will be voluntary. In these, debtors (the people who owe money) petition the bankruptcy court. With involuntary bankruptcy creditors (the people who you money to) file the petition in bankruptcy. Involuntary petitions are typically rare and are sometimes used in business situations in order to force a company into bankruptcy so the creditors can enforce their rights.

The beginning of a bankruptcy case starts with an estate. An estate is what the creditors scope out to see if there is anything they want. The estate is made up of all of the debtor’s property interests at the time that the fillings are commenced. Not all property will be up for grabs. Some of it is subject to certain exclusions and exemptions.

If you are married, the estate may include certain community property interests of your husband or wife, even if the spouse has not filed bankruptcy themselves. The estate may have extra items including property acquired by will or inheritance within one hundred and eighty days after the case begins.

For the purpose of federal income taxes, the bankruptcy estate of someone in a Chapter 7 or 11 case is a separate taxable entity from the debtor. The bankruptcy estate of a corporation, partnership or other collective entity or estates of individuals filing for Chapters 12 or 13 is not a separate taxable entity.

In each judicial district, bankruptcy judges comprise a unit of the United States District Court. The judge will be appointed for a term of fourteen years by the United States Court Of Appeals. The District Courts have subject matter jurisdiction over bankruptcy matters. But each district may refer bankruptcy matters to the Bankruptcy Court. Most district courts have an order so that all bankruptcy cases are handles by the Bankruptcy Court.

Mallory McGuinness works for a debt collection company.

Stop Drowning in Debt

The Congress of the United States established the bankruptcy system specifically so that a person who is financially in debt can get a fresh financial start. Good people, with good intentions often suffer life circumstances that cause them to be in debt with payments much greater than they can reasonably pay. The filing of bankruptcy directly stops all of your creditors from attempting to collect debts from you outside the bankruptcy process.

Experienced Bankruptcy Attorney Dan Scott reports that bankruptcy filings continue to rise. As the economy continues in its downward spiral, good people are often left with very few options but bankruptcy. In fact over 1,446,000 bankruptcy cases were filed in 2009. It seems that there are many myths about Bankruptcy. I want to dispel 3 Myths about Bankruptcy in this article.

There are 3 Myths about Bankruptcy That Must be Dispelled

Myth No. 1: Filing Bankruptcy Can be Pricey. For less than you will spend on your credit card payments and other monthly payments, you can probably pay a bankruptcy lawyer and court costs. What’s it worth to you to no longer owe your debt? I’d say significantly more that the cost you’ll incur. Creditors tell you, “Just pay the money to me.” Don’t be deceived when they say that.

Myth 2: You may lose your property in a bankruptcy: If you weren’t paying all the other debts could you pay your house note and your car payment? For most folks the answer is YES. Because the answer is yes (if it is) under most circumstances you will not lose your property when you file a bankruptcy case. The Exemption Statutes passed by Congress allow you to keep a specific amount of property if you file your case. Because of the values of your property, in most instances you won’t lose your property in a bankruptcy case.

Myth 3: Not all your debt can be discharged. I hate it when this statement is made because it has “some” truth in it, but not much. Almost every unsecured loan, medical bill, credit card and pay day lender will be wiped out when you file a bankruptcy case. If you file a Chapter 13 case (For the difference between a Chapter 7 and a Chapter 13 check out the video at http://www.danwillhelp.com) you’ll pay payments over time that often clears all of your debt except your home mortgage. Certain specific debts will survive the bankruptcy, such as certain taxes, back child support, student loans, DUI fines or penalties, and claims arising from fraud. However in most circumstances all of your debt will be discharged.

So if you are facing financial trouble and you want to get out of debt though you have tried everything doable to get back on your feet, maybe it is time to consider filing a bankruptcy. You can find more information in the video series published by Bankruptcy Attorney Dan Scott. Go check them out for more information.

If you are struggling with your finances it’s time to get straight talk from an experienced bankruptcy attorney. Check out the video series which is absolutely free. Take back the power away from your creditors today!

Filing For Bankruptcy? A List Of DONT’S Pt. 2

Don’t repay family members. The thing is that they can’t be treated different than other creditors. Under the law, relatives have the same exact legal status as every other creditor that you owe. Thus, relatives can’t be treated differently than all of the other places. I know that stinks, however it’s the law.

Don’t liquidate your retirement account! They are usually exempt property in a bankruptcy regardless of what chapter you file, so it’s unnecessary to do this. Some people liquidate and still owe massive amounts of money, and if you withdraw these funds early that makes you liable for taxes and penalties which might not be discharged in the bankruptcy.

Don’t transfer property out of your name before you file bankruptcy. This action can be undone if a fair price isn’t received, or if it were made with intent to defraud, delay, or hinder a creditor. Friends and relatives fall into this category too.

Don’t use your equity line of credit to pay off your debt. Under most federal and state law, you do have the option to claim exemption for the equity in your home. So you can go through bankruptcy and still be able to have this equity.

So in a nut shell, if you utilize your equity line to pay off debt or take out a second mortgage, you will pretty much be converting debt that would have been discharged in bankruptcy into debt which you will still need to pay so you can keep your house.

One Do: Always tell your lawyer the truth and let them fully know all of your concerns. Naturally, courts take their rules seriously and they have the ability to file criminal charges if you commit intentional fraud. And even if they don’t go that far, they can refuse to discharge a particular debt, or simply dismiss the entire case.

Mallory McGuinness works for a debt collection company. Also, she writes pieces on business and finance, consumer spending, and collection agencies

A Brief Explanation of Bankruptcy And A List Of DONT’S Part 1

Let’s face it, filing for bankruptcy is a big deal. It\’s the most extreme of all financial makeovers, and financial analysts continue to warn us that it should be a last resort that should not be entered into without knowing what you are doing.

Bankruptcy is etched onto your credit report for a full ten years. One decade. And without an adequate credit report, it can put a damper on your ability to obtain a car, living situation or employment. If you are filing, do your best to plan for your bankruptcy.

In the U.S., there are five chapters of bankruptcy that you can file for. The most common form is Chapter 7. A trustee will collect non-exempt property and will sell it and distribute the proceeds to the creditors. Chapter nine is a bankruptcy that is only available to municipalities. It’s pretty much a form of reorganization, not liquidation.

Chapter eleven, twelve, and thirteen are more involved because under these chapters, the debtor gets to keep some or all of her property while they use her future earnings to pay off the debt. Most consumers file chapter seven or chapter 13. Chapter 11 filings are mostly for businesses, individuals are allowed, but are rare. Chapter twelve is similar to Chapter 13 but is only available to “family farmers” and “family fisherman” in certain situations.

And now its time for the list of bankruptcy DON’Ts.

First off, don’t use your credit cards once you’ve made this decision. It’s just a bad idea to incur even more debt that you don’t intent to repay. It makes you look suspicious, and you could lose your right to cancel out the debt in the bankruptcy. Thing is, there were bankruptcy reforms in 2005 that lowers the threshold on so called luxury purchases to five hundred dollars and extended the abuse period to ninety days before filing. Anything you buy in this period will be under extra scrutiny.

Mallory McGuinness works for a collection agency. She also writes articles on business, finance, the credit industry and debt collection.

Bad Credit Personal Loans After Bankruptcy Are Obtainable

Although a lot of the major banks will not issue bad credit personal loans after bankruptcy there are indeed a number of companies that have entered this market and are now actively supplying people with these loans on a regular basis.

One reason that companies are willing to give out this kind of loan is because of the well-known fact that once an individual has filed bankruptcy they cannot do so again for another seven years.

This opens a new market where some lenders will take a chance on people with a bad credit rating knowing they have legal recourse to recoup the amount of the loan.

Most of the large companies simply have no interest in getting involved in this market but these smaller companies are more than happy to profit from this market regardless.

The truth is there are no laws that govern people in a bankruptcy that stops them from taking on these loans, although it is true that it probably wouldn’t be their first suggestion in their required counseling classes.

Once the bankrupt individual has discharged his bankruptcy he or she should be free to go after a bad credit personal loan when they feel the time is right.

Although bankruptcy records are open to the public, and their availability is often seen as an embarrassing punishment for ignoring past responsibility, the availability of bad credit personal loans after bankruptcy has many taking that route to get out from under a heavy debt load.

Some people are maybe a little bit too desperate and find themselves repeatedly having to file a bankruptcy in a continuous seven-year cycle. I’m afraid the new bankruptcy law has not managed to put an end to this.

There are a number of laws in place that govern who can give bad credit personal loans after bankruptcy as well as the amount of interest charged with these loans. However no such laws exist to govern who can apply for these loans.

It doesn’t even matter if the person applying for a loan has already been in multiple bankruptcies. These loans come with high rates but even so this does not put off a lot of people.

It is the norm for lenders in this industry not to require collateral for the loan. The truth of the matter is that because of the legal recourse available which can include Wade garnishment, even when the loan goes into default the lender stands to make a profit.

Normally a court will make sure that a repayment is granted for whatever the loan amounts to including any additional costs involved with the collection should it default.

Either way you are strongly advised to consult your lawyer on anything relating to this as bankruptcy and these kinds of loans are to be taken very seriously, also like in all markets there are scams to be avoided so you must check out any deal you are interested in very closely.

Check out this cool link to learn more about How To File For Bankruptcy

Some Helpful Tips On How To Eliminate Or Reduce Your Financial Stress

With 2010 now here, a lot of people are glad to leave 2009 behind them as it has been a very hard one financially for many Americans. Many people have higher debt now because they are now unemployed or owe more than their property is worth.

If you are one of the Americans who are struggling to make ends meet, there are different ways to fix your situation. Thousands of people have lost their jobs and others have had their homes go into foreclosure due to their adjustable mortgage rates going up. There are helpful choices out there such as seeking the advice of a credit counselor, to selling your property before you lose it, to filing chapter 7 bankruptcy or going through a voluntary debt settlement.

If you are struggling financially, one good recommendation is to sell some of your possessions that you already have sitting in your home.

Many people have a lot of things sitting in their home that they really do not need and can really make a considerable amount of money selling them in various ways. Posting these items on sites such as Ebay or Craigslist is the best way to get the most interest and therefore the best price for them. Consignment shops are also another good solution to sell your things.

Another good tip is to seek the counsel of a credit counseling service. Many people get overwhelmed with their credit card debt or their bills piling up if they lose their job or their adjustable mortgage rate goes up, and they don’t know where to turn. The first step is to go to a credit counselor who can simplify a few of those financial decisions for you. This should always precede the decision to file bankruptcy as you may realize that may not be necessary.

After receiving financial help from a counselor a few may still think that the best option would be to file for bankruptcy. There are various kinds of filings such as chapter 7, chapter 11 and chapter 13. They all vary from one another depending on if you are filing for a personal debt or you are a company or corporation that needs to file. Typically this is the last resort but it can also help you to get a fresh start financially and to help to pay of all of the debt you owe creditors.

Foreclosure rates on homes are the highest they have ever been in history because of the economy. Some homeowners purchased properties that they really were not able to afford and then the home lost it’s value and the homeowner is now paying a higher mortgage than the home is worth. Also, with employment loss or cutbacks, some Americans can no longer afford their mortgages. If you find yourself n this situation consult a professional as there may be more help available to you than you realize.

Connor R. Sullivan recently researched Milwaukee chapter 7 bankruptcy files for an article he is writing on the subject.

Chapter 7 Bankruptcy Information: Your New Slate

From the beginning of America’s recent recession through the present day, there has been a lot of talk about debt and bankruptcy. Since it is perhaps the clearest way for debtors to get a clean slate and get on with their lives, there is a lot of Chapter 7 bankruptcy information that is helpful to know. Anyone in serious financial trouble, however, should definitely consider seeing a lawyer that specializes in bankruptcy law. That being said, what does Chapter 7 bankruptcy mean for debtors and who can apply for it?

Chapter 7 Bankruptcy is the complete liquidation of all property not subject to a list of State-determined or federally determined exemptions. This property is sold to reimburse, in part at least, the creditors that the debtor owes money to. There is no repayment plan under Chapter 7; the debts are simply discharged. Applying for this type of bankruptcy is the equivalent of a fresh start, debt-wise.

As for eligibility, any individual or business entity (including partnerships, corporations, and others) can apply for Chapter 7. Anyone filing for Chapter 7 must have applied for credit counseling at an approved agency (check with a lawyer or the agency itself) up to 180 days before filing. Also, if the debtor has failed to appear at their scheduled bankruptcy hearing or otherwise irked the court 180 days before filing for Chapter 7, they are disqualified. The amount owed to creditors isn’t taken into consideration by the courts, nor does the ability of the individual or business to pay debts at all factor inherently limit filing for this type of bankruptcy.

However, there are checks to make sure that people aren’t simply abusing the system to get out of paying their debts. The courts have what is called a means test to determine whether or not someone is filing a so-called abusive petition.

A means test will examine a debtor’s income and their expenses to determine whether the claim is abusive. The debtor’s average monthly income for the past five years is compared to the median amount for the state that they live in. If it is above that amount, the bankruptcy claim will be subject to the second test, which investigates the expenses of that debtor in comparison to the amount of unsecured debt that they own. So if those expenses exceed 25 percent of the debt not secured by collateral usually something like credit card debt then the court will either turn the case into a Chapter 13 filing or simply dismiss the whole thing.

A Chapter 13 claim is very different from a chapter 7 claim. Under Chapter 13, a debtor is placed under a five-year repayment plan to his creditors. The amount left over after that period is dismissed under Chapter 7, and no property is liquidated.

Since the exemptions to what is liquidated under Chapter 7 don’t include very much at all, those debtors wishing to keep the majority of the property that either has a lien on it or is the cause of debt would probably seek an alternative route to repayment. Likewise, Chapter 7 probably isn’t right for those who wish to keep their business going. Another alternative, of course, is coming up with a repayment plan outside of court and avoiding the fees of filing for bankruptcy.

Chapter 7 is currently designed to resist abuses and dishonesty, so debtors should make sure that they’re providing all the necessary personal information and are honestly qualified for that kind of debt relief. Chapter 7 bankruptcy information can help determine whether or not to pursue that solution to a financial crisis.

Anyone in serious financial difficulty must definitely consider seeing a lawyer that specializes in bankruptcy law. Find out more details about Chapter 7 Bankruptcy Information and who can apply for it?

Bankruptcy Filings Increase As Economy Suffers

Layoffs and pay cuts moved more people into bankruptcy last year, and researchers are asserting that the situation is most likely not going to improve until the unemployment issue improves. In Wisconsin, bankruptcy filings rose 30 percent in 2009. This came on top of a 35 percent increase in the preceding year.

According to bankruptcy lawyers, it is not just firings and layoffs that are motivation to file. It’s the losses of once-regular over time pay and full time status that have left consumers from keeping up with monthly payments that in the past were not an issue to pay.

U.S. Bankruptcy Court records reveal that there were 27,413 bankruptcy petitions filed in Wisconsin last year. More than 80% were Chapter 7 cases. Chapter 7 cases wipe out medical bills, credit card balances, and other types of debt. Recent Research by The Associated Press illustrated that more than 1.4 million bankruptcies were filed in 2009, an increase of about 32% from 2008.

And although bankruptcy annihilates the looming debt and offers consumers a fresh financial start, people often remain unemployed and are unable to find employment to get an adequate income again.

Worse still, unless the economy improves enough for companies to start hiring, there is little reason to think that bankruptcies will go down in 2010. Experts have noted that home foreclosures will continue to pile up in 2010 because people who previously had adequate credit have lost employment and cannot keep up with payments.

Bankruptcy may seem like a good option to get a fresh start, but it negatively affects your credit report for ten years, rendering you unable to get a car, place of residence, or employment. Before declaring bankruptcy, it is a wise decision to speak with your creditors and see if some sort of repayment plan can be worked out.

Mallory Megan is an employee at a debt collection agency. She also does articles on the credit industry, business, finance, and debt collection.

Bankruptcies Up In 2009

In this period of increased unemployment rates and home foreclosures, personal bankruptcy rates continue to increase. Last year, it has been reported, personal bankruptcies increased by over thirty percentage points. As more and more Americans face the financial realities brought on by our current economic situation, it is expected that bankruptcy filings will continue to increase.

In 2009, the U.S. saw the total number of filings pass 1.4 million. With last year’s filing increase, the total filing number was higher than it has been since 2005, the year the government significantly changed the bankruptcy laws in an attempt to drastically reduce the number of filings. The 2009 filing numbers are over double the numbers we saw in the year 2007.

Filings allowing debtors to liquidate assets to pay some debt and erase portions of debt, also known as Chapter 7 bankruptcies, increased by over forty percent by November. This is the latest data for such filings.

In addition to Chapter 7 increases, Chapter 13 filings are also on the rise. While Chapter 13 filings didn’t rise at the same rate as Chapter 7’s, they did increase by over 10%. These filings constitute less than 1/3 of the total filings.

Nevada and California each saw some of the highest increases in filings. However, no state surpassed Arizona which saw increases in filings of about 80%. While those states saw large filing increases, states like Pennsylvania and Tennessee saw much more limited increases with filings ranging between ten and fifteen percent.

As the national rate of unemployment continues to loom over ten percent, many citizens that had been financially secure are now in a position that bankruptcy makes more sense. Coupled with the decreased housing market, it is no surprise that many individuals are now strongly taking filing bankruptcy into consideration.

As bankruptcy filings continue to rise, it is become more common for Americans to know someone who has either filed or is considering filing for bankruptcy.

When you are facing creditor harassment, wage garnishment, or foreclosure, finding out your options needs to be your top priority. People often feel helpless when they find themselves in financial situations like this. Get a free bankruptcy consultation fromBankruptcy Attorney Massachusetts Matt Desrochers.

Filing For Personal Bankruptcy: What It All Means

There are two main types of personal bankruptcy you can file for, Chapter 13 and Chapter 7. You might be in a position where you owe people money, your bills keep piling up, you credit is maxed out and you can’t see the light at the end of the tunnel. Understanding the types of bankruptcy that exist is a good first step in exploring this option for yourself.

An individual filing for bankruptcy will file either Chapter 7 or Chapter 13. Chapter 13 involves working out a payment plan with your creditors to pay back the debt you owe. In Chapter 7 bankruptcy, you will sell your property, that is not exempt, to pay back your creditors. After speaking with a bankruptcy attorney, you can decide which type will be the best for your situation.

Chapter 7 bankruptcy is also known as liquidation or a straight bankruptcy. Chapter 7 Bankruptcy is the most common form of bankruptcy accounting for almost two-thirds of all consumer filings. This is one of the faster ways for you to start fresh. The case usually lasts for only a few months after an attorney make the initial filing.

You should consider Chapter 7 bankruptcy if you are in a position to sell your nonexempt property and use the proceeds to pay your creditors. Of course, you want to make sure that you will have property left over after paying your debts to start fresh with a good foundation. Speaking with a bankruptcy attorney about this option is a great idea.

Chapter 13 bankruptcy is a way of working out a repayment plan to pay off your creditors. You are going to be restructuring your debts. Chapter 13 might be a good fit for you if you own valuable property or make too much money to be eligible for a Chapter 7 filing. Often when you file for Chapter 13 bankruptcy, debts and interest accruing will be reduced. A repayment plan is established usually in the 3-5 year range.

If you are currently making money, but are not in a position to pay of your debt immediately, you should consider Chapter 13. Speaking with a bankruptcy lawyer will ensure you take the right path with your bankruptcy filing.

After reading this article, you should have a better conception of what bankruptcy entails and your various options available. The next step is to speak to a MA bankruptcy attorney to see what type of filing is the best fit for your situation.

People often feel nervous when they find themselves in financial situations like these. Speak with Matt Desrochers & Associates, MA bankruptcy attorneys. Bankruptcy is not something to take lightly, but it is not as scary as you might think.

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