Bankruptcy – Once The Unavoidable Has Happened

Bankruptcy is something that should not be taken likely, but if you find yourself in this situation, there are several roads that can be taken. Initially, when thinking about going down the road of bankruptcy, you should re-think the decision to do so simply because this is something that will solve a problem for now. The action of declaring bankruptcy is very serious, and it can hinder you in future aspirations such as buying or renting a home, finding a job, or even having a bank account open. This should be viewed as simply a last resort, but if you find yourself having tried everything else, from credit counseling, to budgeting, and still decide to go forth with bankruptcy, you should know these things.

The first type of personal bankruptcy available is Chapter 13. If you have income coming in, and want to keep certain items that you currently own, or are still paying for, then this is the option for you. A payment plan of sorts is put into place on your behalf by the court in order to keep your valuables. This will slow down the amount that you are shelling out for that car or house, so that you are able to keep your feet under you in recuperating what you were unable to pay with the original agreement. Sometimes under this type of bankruptcy you pay all of your remaining debt, and other times you simply pay some of it. The decision of whether or not you are going to have to pay everything off over time is all in the hands of the court.

The other type of personal bankruptcy is Chapter 7. In the case of Chapter 7 bankruptcy, there is not a payment plan that can be put together with the court, they simply take your property and sell it to pay back the creditors that you owe money to. While doing this however, a process called, “discharging” essentially erases your debts with these creditors so that you don’t have to worry about them anymore. Now if you think going this route will be easier if you simply give your property to another person, and that way you get to in some way keep it, that is not the case.

If the courts see that you have transferred possession of an item before filing insolvency, they can simply undo that exchange, and sell the item off. Both these must be filed in a Fed insolvency court, and once this is done, you can kiss those collection calls goodbye. The action of filing immediately gives you protection to tell these annoying collectors that you have taken action, and they simply no longer have the inalienable right to continue their attempts by directly calling you.

The action of filing immediately gives you protection to tell these annoying collectors that you have taken action, and they simply do not have the right to resume their efforts from immediately calling you. No matter the route you finish up taking, this is simply a call you must think about scrupulously.

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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.