If you're thinking about filing for bankruptcy, then you probably know that you'll have to go through a credit counseling program before your case is completed. Credit counseling is court-ordered as a part of the bankruptcy process, but unfortunately, many people discount the value of good credit counseling simply because it's mandated by the court system.
However, credit counseling is a wonderful learning experience. And, we recommend that even if you aren't filing for bankruptcy, you go ahead and take one of their courses. If you're struggling with financial issues, credit counseling is a great way to get a lot of those issues back under control. Let's take a look at a few reasons why.
Benefits of Credit Counseling
When you go through credit counseling, you'll have access to the knowledge and experience of a professional. This is a great time to ask questions you've always wanted answered. Whether you have questions about debt repayment strategies or budgeting, here's your chance to ask questions that relate to your unique situation.
You'll get debt consolidation assistance. One of the main benefits (whether you face bankruptcy or not) is that you can work on getting your debt rolled into a single, easy-to-manage loan. This can be a beneficial strategy for many people.
You can get general money management advice. If you've never been sure about how to create a budget, here's your chance to get help! Perhaps you don't know how much money to allocate to each category. A credit counselor can advise you on how to best allocate your funds.
If you think you might have to file for bankruptcy in the future, this service might be able to help you work out your financial situation outside of the legal process. Or, if bankruptcy is the right option for you, this ervice can help you find a bankruptcy attorney. Or, the service can at least advise you on how to pick a good bankruptcy attorney.
Lastly, this service can bring accountability to your financial accounts. When you know that you're going to have to report your financial activity to someone, you're far more likely to be a more responsible manager of your money!
Remember, many credit counselors are non-profits, which means that the services they provide are free of charge or at a very low cost to you. If you're concerned about your financial situation, go ahead and schedule a consultation with a credit counseling service!
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Tuesday, 18 September 2012
Common Bankruptcy Myths Finally Debunked
Several years ago, a fellow bankruptcy lawyer told me that our job as bankruptcy lawyers is to get our clients to tell us all of the "Dairy Queen Law" that they know. "Dairy Queen Law" is all the bankruptcy laws that the clients learned about at the local "Dairy Queen" from friends, family members, waitresses and other patrons. We have to get our clients to tell us what "Dairy Queen Law" they have learned, and then we, as attorneys, must tell them the truth about bankruptcy. Well here is some common "Dairy Queen Law", followed by the truth.
Your employer and the local newspaper will be told that you have filed for bankruptcy.
When you file a Chapter 7 case, the employer is not notified of the bankruptcy. If you choose to file a Chapter 13 case, you ask your employer to garnish your wages to pay your creditors under a court approved Chapter 13 plan that you file. Your employer is notified of the bankruptcy because you ask that your wages be garnished. This is one of the many reasons that our law firm now attempts to file as many of our cases as Chapter 7 cases.
Our local newspapers do not publish those who have filed a bankruptcy case (unless they are Donald Trump, American Airlines, Walt Disney or similarly famous people or businesses). In my 30 year bankruptcy practice, the only bankruptcy case that made the local paper was the Chapter 7 case I filed for a local micro beer brewery. The article was much more about the brewery than the bankruptcy filing.
You Have to be Very Poor to File Bankruptcy
The 2005 amendments to the U.S. Bankruptcy Code made the forms necessary to properly file a bankruptcy case very difficult. However, we file cases for very poor individuals and other "not so poor" folks who find themselves in financial difficulty. We offer a free consultation and can help find a solution to your debt problems. Most of our clients believe that they are very distressed when they first walk in our office and leave confident that they have found a solution to their financial problems.
Your Credit will be Ruined Forever
False! Most clients that come to our office have serious financial problems and bankruptcy removes those debts and gets them on a road to a fresh start. Most of our Chapter 7 clients finance late model vehicles while their bankruptcy cases are pending. Working to restore the credit after the discharge will enable clients to finance homes beginning two years after the bankruptcy discharge. Bankruptcy is a solution to a financial problem and usually one that dramatically improves our clients credit and financial issues.
New Laws Make it Impossible to File for Bankruptcy
In 2005, the U.S. Congress made dramatic changes to our bankruptcy laws. Sadly, the effect of these laws is only to make the price of filing a bankruptcy case more expensive for consumer debtors. The forms now required to be filed when a bankruptcy case is filed are very complicated. I actually teach continuing legal education classes in which I instruct attorneys and paralegals how to correctly prepare the forms to get the best result possible for their clients. It is very important that you hire a very experienced, knowledgeable bankruptcy lawyer to represent you in this very complicated area of the law. Millions of Americans filed bankruptcy before the law changed, and millions are filing now that the new laws have become effective.
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Your employer and the local newspaper will be told that you have filed for bankruptcy.
When you file a Chapter 7 case, the employer is not notified of the bankruptcy. If you choose to file a Chapter 13 case, you ask your employer to garnish your wages to pay your creditors under a court approved Chapter 13 plan that you file. Your employer is notified of the bankruptcy because you ask that your wages be garnished. This is one of the many reasons that our law firm now attempts to file as many of our cases as Chapter 7 cases.
Our local newspapers do not publish those who have filed a bankruptcy case (unless they are Donald Trump, American Airlines, Walt Disney or similarly famous people or businesses). In my 30 year bankruptcy practice, the only bankruptcy case that made the local paper was the Chapter 7 case I filed for a local micro beer brewery. The article was much more about the brewery than the bankruptcy filing.
You Have to be Very Poor to File Bankruptcy
The 2005 amendments to the U.S. Bankruptcy Code made the forms necessary to properly file a bankruptcy case very difficult. However, we file cases for very poor individuals and other "not so poor" folks who find themselves in financial difficulty. We offer a free consultation and can help find a solution to your debt problems. Most of our clients believe that they are very distressed when they first walk in our office and leave confident that they have found a solution to their financial problems.
Your Credit will be Ruined Forever
False! Most clients that come to our office have serious financial problems and bankruptcy removes those debts and gets them on a road to a fresh start. Most of our Chapter 7 clients finance late model vehicles while their bankruptcy cases are pending. Working to restore the credit after the discharge will enable clients to finance homes beginning two years after the bankruptcy discharge. Bankruptcy is a solution to a financial problem and usually one that dramatically improves our clients credit and financial issues.
New Laws Make it Impossible to File for Bankruptcy
In 2005, the U.S. Congress made dramatic changes to our bankruptcy laws. Sadly, the effect of these laws is only to make the price of filing a bankruptcy case more expensive for consumer debtors. The forms now required to be filed when a bankruptcy case is filed are very complicated. I actually teach continuing legal education classes in which I instruct attorneys and paralegals how to correctly prepare the forms to get the best result possible for their clients. It is very important that you hire a very experienced, knowledgeable bankruptcy lawyer to represent you in this very complicated area of the law. Millions of Americans filed bankruptcy before the law changed, and millions are filing now that the new laws have become effective.
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Monday, 17 September 2012
Filing for Bankruptcy - The Last Resort for Debt-Ridden Wholesale Suppliers
Just imagine the setback you get when you have no other option than to surrender your business assets to your lenders. Yes, this is exactly what you do when you file for business bankruptcy. When wholesale suppliers are unable to manage or repay their debt after receiving multiple threatening calls from various lenders, they are left with no other option than to file for bankruptcy.
Bankruptcy is a legal acknowledgement on the part of suppliers that their firm has become insolvent and they are willing to discontinue selling wholesale products. In short, bankruptcy is a death sentence for a wholesale business.
What Leads to Business Bankruptcy?
Financial mismanagement on the part of wholesale suppliers is the very reason why many wholesale suppliers despite having growth potential in their business have to apply for business bankruptcy. However, following are some of the mistakes that lead their firm to go for this option.
1. Taking excessive debts with less repayment capacity
2. Securing new loans to repay the old ones
3. Implementing wrong financial management strategies
4. Taking wrong financial decisions on wrong advice
5. Consistent delay in paying loans instalments
Business Bankruptcy - The Last Resort
Bankruptcy should be the last option to avail, since its disadvantages outnumber its advantages. If wholesale suppliers are facing difficulty in managing their large amount of debt, they must go for other options before filing for bankruptcy i.e. using their fixed deposits to repay loans, selling off a few business assets, hiring services of some debt restructuring firm, proper cash management and dramatic downsizing.
Why bankruptcy petition should be filed as the last resort? This is because bankruptcy is never a favourable option since it leads you to stop selling wholesale products and eventually shut down the business. Though bankruptcy gives a temporary relief by discharging all the debts of a wholesale supplier yet many wholesale suppliers face more serious financial challenges after filing for it. Some clear reasons why you should file for bankruptcy as the last resort are explained here.
Impacts Credit Report- Once the firm is declared bankrupt, the declaration badly destroys the credit score of a wholesale supplier. Depending on the type of bankruptcy, the effect of bankruptcy remains on the report for 7-10 years. This badly affects the future business borrowings of a supplier. Moreover, bankruptcy charge is irreversible which means once the firm is declared bankrupt, it cannot repay its debt later on.
Lowers Credibility- Bankruptcy lowers the credibility of wholesale suppliers which affect them in several ways. Whenever, they apply for a job, need bank credit again or start another business, they need to inform the relevant parties about their bankruptcy. They face difficulty in securing a good job and obtaining insurance. This social discrimination along with the feelings of guilt and failure also add to the mental as well as physical stress.
High Bankruptcy costs- In bankruptcy proceedings, wholesale suppliers needs to hire trustee as well as financial counsellors. The expenses of hiring them along with the fees of court, administrative costs and cost of drafting documents required to initiate bankruptcy proceeding, the total cost of filing for bankruptcy becomes quite high. These costs, at the time when wholesale suppliers are already neck deep in debt, further add to financial miseries.
Ends the source of Income- Bankruptcy leads the business to its end and snatches the source of income from wholesale suppliers. Even if they intend to start another venture from borrowed money, the fear of another bankruptcy haunts them. This is because in certain states, another bankruptcy petition cannot be filed within six years of the last bankruptcy. No source of income sometimes also results in relationship problems like divorce and marital breakdowns.
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Bankruptcy is a legal acknowledgement on the part of suppliers that their firm has become insolvent and they are willing to discontinue selling wholesale products. In short, bankruptcy is a death sentence for a wholesale business.
What Leads to Business Bankruptcy?
Financial mismanagement on the part of wholesale suppliers is the very reason why many wholesale suppliers despite having growth potential in their business have to apply for business bankruptcy. However, following are some of the mistakes that lead their firm to go for this option.
1. Taking excessive debts with less repayment capacity
2. Securing new loans to repay the old ones
3. Implementing wrong financial management strategies
4. Taking wrong financial decisions on wrong advice
5. Consistent delay in paying loans instalments
Business Bankruptcy - The Last Resort
Bankruptcy should be the last option to avail, since its disadvantages outnumber its advantages. If wholesale suppliers are facing difficulty in managing their large amount of debt, they must go for other options before filing for bankruptcy i.e. using their fixed deposits to repay loans, selling off a few business assets, hiring services of some debt restructuring firm, proper cash management and dramatic downsizing.
Why bankruptcy petition should be filed as the last resort? This is because bankruptcy is never a favourable option since it leads you to stop selling wholesale products and eventually shut down the business. Though bankruptcy gives a temporary relief by discharging all the debts of a wholesale supplier yet many wholesale suppliers face more serious financial challenges after filing for it. Some clear reasons why you should file for bankruptcy as the last resort are explained here.
Impacts Credit Report- Once the firm is declared bankrupt, the declaration badly destroys the credit score of a wholesale supplier. Depending on the type of bankruptcy, the effect of bankruptcy remains on the report for 7-10 years. This badly affects the future business borrowings of a supplier. Moreover, bankruptcy charge is irreversible which means once the firm is declared bankrupt, it cannot repay its debt later on.
Lowers Credibility- Bankruptcy lowers the credibility of wholesale suppliers which affect them in several ways. Whenever, they apply for a job, need bank credit again or start another business, they need to inform the relevant parties about their bankruptcy. They face difficulty in securing a good job and obtaining insurance. This social discrimination along with the feelings of guilt and failure also add to the mental as well as physical stress.
High Bankruptcy costs- In bankruptcy proceedings, wholesale suppliers needs to hire trustee as well as financial counsellors. The expenses of hiring them along with the fees of court, administrative costs and cost of drafting documents required to initiate bankruptcy proceeding, the total cost of filing for bankruptcy becomes quite high. These costs, at the time when wholesale suppliers are already neck deep in debt, further add to financial miseries.
Ends the source of Income- Bankruptcy leads the business to its end and snatches the source of income from wholesale suppliers. Even if they intend to start another venture from borrowed money, the fear of another bankruptcy haunts them. This is because in certain states, another bankruptcy petition cannot be filed within six years of the last bankruptcy. No source of income sometimes also results in relationship problems like divorce and marital breakdowns.
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Wednesday, 12 September 2012
How Will Filing Bankruptcy Affect My Immigration Status?
People from all over the world come to the United States because they want to chase the American Dream. What is the American Dream? It means different things to different people, but mostly it boils down to being successful in their line of work and being financially independent. When our economy was booming a lot of people achieved this dream. However, during our current economic downturn a lot of people saw those dreams turn into nightmares. Houses that were purchased at the height of the real estate boom are now so far underwater that they are now practically worthless. Speaking to a bankruptcy lawyer to file bankruptcy seems like the only way out of the financial hole. A lot of immigrants have the same question before filing for bankruptcy: "What will filing for bankruptcy do to my immigration status?"
Filing for bankruptcy alone will not affect your immigration status. You must have committed a crime that is subject to deportation. Under 8 U.S.C. §1227(a)(2), you could be subject to deportation if you fall into one or more of these categories: if you commit certain crimes of moral turpitude or aggravated felony, if you are convicted of owning controlled substances, if you are convicted of certain firearm offenses, miscellaneous crimes (like espionage, sabotage, treason), crimes of domestic violence, stalking, crimes against children, and trafficking (drug or human).
Crimes of moral turpitude are analyzed on a case by case basis. A crime of moral turpitude must involve highly reprehensible conduct that was done intentionally, deliberately, willfully, or recklessly. A crime involving 'moral turpitude' involves 'conduct that shocks the public conscience as being inherently base, vile, or depraved, contrary to the rules of morality and the duties owed between man and man, either one's fellow man or society in general. Some crimes that are considered to be a crime of moral turpitude that pertain to people filing for bankruptcy are: writing bad checks with the intent to defraud, crimes of domestic violence, and tax evasion.
There is a long list of crimes that are considered to be aggravated felonies under 8 U.S.C. §1101(a)(43) including murder, rape, and sexual abuse of a minor. The main ones that may pertain to people filing for bankruptcy are §1101(a)(43)(M)(i) and (ii): fraudulent transaction where the loss to the victim exceeds $10,000 and tax evasion where the loss to the government exceeds $10,000.
What you should take away from this article is that if you have not committed a crime listed above you should not be subject for removal from the United States. Filing bankruptcy is not a crime period and is not a path to deportation. Committing a bankruptcy crime (such as lying under penalty of perjury or committing fraud against one of your creditors) may get you deported. As long as you do not commit a bankruptcy crime you should not have to worry about your immigration status. If you are unsure if you fall under any of these categories, please consult with a bankruptcy attorney before you go forward.
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Filing for bankruptcy alone will not affect your immigration status. You must have committed a crime that is subject to deportation. Under 8 U.S.C. §1227(a)(2), you could be subject to deportation if you fall into one or more of these categories: if you commit certain crimes of moral turpitude or aggravated felony, if you are convicted of owning controlled substances, if you are convicted of certain firearm offenses, miscellaneous crimes (like espionage, sabotage, treason), crimes of domestic violence, stalking, crimes against children, and trafficking (drug or human).
Crimes of moral turpitude are analyzed on a case by case basis. A crime of moral turpitude must involve highly reprehensible conduct that was done intentionally, deliberately, willfully, or recklessly. A crime involving 'moral turpitude' involves 'conduct that shocks the public conscience as being inherently base, vile, or depraved, contrary to the rules of morality and the duties owed between man and man, either one's fellow man or society in general. Some crimes that are considered to be a crime of moral turpitude that pertain to people filing for bankruptcy are: writing bad checks with the intent to defraud, crimes of domestic violence, and tax evasion.
There is a long list of crimes that are considered to be aggravated felonies under 8 U.S.C. §1101(a)(43) including murder, rape, and sexual abuse of a minor. The main ones that may pertain to people filing for bankruptcy are §1101(a)(43)(M)(i) and (ii): fraudulent transaction where the loss to the victim exceeds $10,000 and tax evasion where the loss to the government exceeds $10,000.
What you should take away from this article is that if you have not committed a crime listed above you should not be subject for removal from the United States. Filing bankruptcy is not a crime period and is not a path to deportation. Committing a bankruptcy crime (such as lying under penalty of perjury or committing fraud against one of your creditors) may get you deported. As long as you do not commit a bankruptcy crime you should not have to worry about your immigration status. If you are unsure if you fall under any of these categories, please consult with a bankruptcy attorney before you go forward.
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Foreclosure Alternative: Bankruptcy
As bankruptcy professionals, we hear all kinds of financial concerns. These days, in a down housing market, one of the biggest financial concerns that plagues most people is foreclosure. If you're struggling to make your mortgage payment every month, foreclosure can become a very real threat on the horizon. And, even if you're thinking about refinancing or adjusting the terms of your loan, the savings won't catch up with you for at least two or three years.
If you're struggling with foreclosure, you need a fix now
. Chances are, you probably have some other debts as well. If you're feeling burdened by debt and stressed about your impending foreclosure, then you have to know about preventing foreclosure with bankruptcy! It's a trick that's becoming quite popular. Thousands of people have done it successfully. Why not you?
The Type of Bankruptcy: Chapter 13
Any and all forms of bankruptcy stop collectors from harassing you about the debts you owe. However, some forms of bankruptcy are better than others when it comes to preventing foreclosure. Chapter 7, for example, is a form of liquidation bankruptcy. While it will prevent foreclosure for the short term, it's not a good long term strategy for preventing foreclosure.
Chapter 13 is going to be your ticket! If you have an income that would allow you to pay your mortgage if you didn't have all of those other financial obligations, then Chapter 13 is probably just the type of bankruptcy you
need!
When you file for Chapter 13 bankruptcy, you undergo debt reorganization. Under a court-appointed trustee, your debts will be reduced and restructured, making repayment more feasible. Meanwhile, as you work through eliminating your debts and attaining solvency, your foreclosure is put on hold. With your foreclosure on hold, you have the opportunity to continue to make payments on your mortgage!
Other Benefits
Of course, while preventing foreclosure might be the main focus of your efforts, it's worth mentioning all of the other benefits that come along with filing for Chapter 13 bankruptcy! Under Chapter 13, you'll finally get relief from all of those other debts that have been keeping you awake at night: medical debt, credit card debt, and more.
If you're feeling overwhelmed, talk to us about how we can help you get the financial peace that you deserve. Remember, the bankruptcy code exists for those who are suffering under undue financial hardship. Whether your debt is a couple thousand of dollars or a hundred thousand dollars, no amount is too big or too small.
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If you're struggling with foreclosure, you need a fix now
. Chances are, you probably have some other debts as well. If you're feeling burdened by debt and stressed about your impending foreclosure, then you have to know about preventing foreclosure with bankruptcy! It's a trick that's becoming quite popular. Thousands of people have done it successfully. Why not you?
The Type of Bankruptcy: Chapter 13
Any and all forms of bankruptcy stop collectors from harassing you about the debts you owe. However, some forms of bankruptcy are better than others when it comes to preventing foreclosure. Chapter 7, for example, is a form of liquidation bankruptcy. While it will prevent foreclosure for the short term, it's not a good long term strategy for preventing foreclosure.
Chapter 13 is going to be your ticket! If you have an income that would allow you to pay your mortgage if you didn't have all of those other financial obligations, then Chapter 13 is probably just the type of bankruptcy you
need!
When you file for Chapter 13 bankruptcy, you undergo debt reorganization. Under a court-appointed trustee, your debts will be reduced and restructured, making repayment more feasible. Meanwhile, as you work through eliminating your debts and attaining solvency, your foreclosure is put on hold. With your foreclosure on hold, you have the opportunity to continue to make payments on your mortgage!
Other Benefits
Of course, while preventing foreclosure might be the main focus of your efforts, it's worth mentioning all of the other benefits that come along with filing for Chapter 13 bankruptcy! Under Chapter 13, you'll finally get relief from all of those other debts that have been keeping you awake at night: medical debt, credit card debt, and more.
If you're feeling overwhelmed, talk to us about how we can help you get the financial peace that you deserve. Remember, the bankruptcy code exists for those who are suffering under undue financial hardship. Whether your debt is a couple thousand of dollars or a hundred thousand dollars, no amount is too big or too small.
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Tuesday, 11 September 2012
How To File Bankruptcy: Seven Steps To Resolving Your Debt
Many people today are in difficult financial circumstances due to loss of a job, unfortunate financial decisions, medical bills or back taxes they simply can't pay. It's ruining their credit and their family security, but since they don't know how to file bankruptcy, they can't see a way out of their money problems. Fortunately, the steps are easier than many people think, particularly if you hire an attorney who can help you navigate the procedures. There are several steps to how to file a bankruptcy that follow a set schedule:
1. Decide If It's Right For You
Explore all other options before you opt to file for bankruptcy, making sure you've tried every other way to stabilize your finances. If you can't borrow from a family member or negotiate a payment plan and are in thousands of dollars of debt, it may be the best solution.
2. Talk To An Attorney
A bankruptcy attorney with court experience can help you determine which kind of filing is right for you and your family. The two most common are Chapter and Chapter 13. The first allows you to discharge your debts without losing your home, but you'll have to sell off most of your possessions. The other form is less severe but has limitations. A qualified attorney can help you choose the best option.
3. Gather Your Financial Records
Your lawyer will need to review all of your financial records, from outstanding credit card debt to your mortgage, medical and vehicle debts and discuss how to file bankruptcy with you. Be thorough and make sure you have documentation of all your assets, debts and personal property. Leaving anything out can cause problems down the road. Keep in mind that your bankruptcy attorney has probably seen people in far worse financial situations than you.
4. Don't Let Creditors Hound You
Once you've retained an attorney, you should refer all creditors or bill collectors to him or her. He will talk to them and an automatic stay will prevent them from trying to collect their debts until the case is resolved. You'll love the freedom from harassing collection calls!
5. Stop Using Credit
It's important to show the court that you are serious about resolving your financial problems, so you need to stop using all credit cards immediately. If you've already filed in court and continue to use your credit cards, a creditor can sue you and the court may not allow you to wipe clear your debts.
6. Attend The Creditors' Meeting
This is where the court will go over all outstanding debts and assets with you and any interested parties. Your bankruptcy attorney will attend this meeting with you. Simply answer the questions honestly and give them all the information they request so that they can evaluate the situation properly.
7. Wait To Hear From Your Attorney
Unless a creditor challenges the proceedings, your debts will be discharged sixty days after the creditors' meeting. At this point, you are free of the burden of debt and can begin rebuilding a healthy financial lifestyle.
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1. Decide If It's Right For You
Explore all other options before you opt to file for bankruptcy, making sure you've tried every other way to stabilize your finances. If you can't borrow from a family member or negotiate a payment plan and are in thousands of dollars of debt, it may be the best solution.
2. Talk To An Attorney
A bankruptcy attorney with court experience can help you determine which kind of filing is right for you and your family. The two most common are Chapter and Chapter 13. The first allows you to discharge your debts without losing your home, but you'll have to sell off most of your possessions. The other form is less severe but has limitations. A qualified attorney can help you choose the best option.
3. Gather Your Financial Records
Your lawyer will need to review all of your financial records, from outstanding credit card debt to your mortgage, medical and vehicle debts and discuss how to file bankruptcy with you. Be thorough and make sure you have documentation of all your assets, debts and personal property. Leaving anything out can cause problems down the road. Keep in mind that your bankruptcy attorney has probably seen people in far worse financial situations than you.
4. Don't Let Creditors Hound You
Once you've retained an attorney, you should refer all creditors or bill collectors to him or her. He will talk to them and an automatic stay will prevent them from trying to collect their debts until the case is resolved. You'll love the freedom from harassing collection calls!
5. Stop Using Credit
It's important to show the court that you are serious about resolving your financial problems, so you need to stop using all credit cards immediately. If you've already filed in court and continue to use your credit cards, a creditor can sue you and the court may not allow you to wipe clear your debts.
6. Attend The Creditors' Meeting
This is where the court will go over all outstanding debts and assets with you and any interested parties. Your bankruptcy attorney will attend this meeting with you. Simply answer the questions honestly and give them all the information they request so that they can evaluate the situation properly.
7. Wait To Hear From Your Attorney
Unless a creditor challenges the proceedings, your debts will be discharged sixty days after the creditors' meeting. At this point, you are free of the burden of debt and can begin rebuilding a healthy financial lifestyle.
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Tuesday, 4 September 2012
Only Losers Are Filing Bankruptcy Is Far From the Truth
In the past, filing bankruptcy has carried a stigma that associates people with failure and being a deadbeat. This is far from the truth. Today, most Americans that are filing for bankruptcy are good hard-working people that got caught up in a credit debt bomb that exploded. Many people followed the lie that if they didn't buy a house now, they would never be able to afford one. Creditors would loan money to a dog based on stated income. It's no wonder that these people are facing bankruptcy and foreclosure at alarming rates.
Many experts believe that the stigma was put out there by the credit industry. Mainly it was put out there by those in the debt collection area. They figured out that if they could make people feel bad about themselves, they could get them to continue paying with money they didn't have to avoid filing bankruptcy and having the stereotype of being a loser. There have been many stories of threats and lies that debt collection companies use to get a payment out of an individual. First, they try to befriend the individual and act like they understand their situation and that's why they are trying to help. This is the first lie. They could care less about the person being thrown out on the street with their kids, all they care about is getting a payment. Debt collectors get paid a percentage of what they collect and the more they get out of someone, the more they make. This is sad when an honest person has to choose between buying food or paying that bill, they get bullied into not eating. If the collector was a friend and really understood the situation, they would call back a week or month later and see if the situation improved to get some money. Some debt collectors have gone as far as to threaten a person with jail time for failing to pay their bills. This usually comes after the friendship phase is over. This is an outright lie as debtor's prison is no longer in existence.
The bottom line is, most people didn't realize that the gravy train would go off the tracks at some point. Most families believed that house prices would continue to rise along with their paychecks. All bets were off when the banks admitted failure back in 2007. Since then, many corporations have used bankruptcy filing as a way to renegotiate employment contracts, renegotiate debt with their vendors and so on. If the corporations and big business looks at it as a way to become financially stable, average people should have the same attitude about filing bankruptcy.
Now that the damage is done, people need to get their lives back on track and not be afraid of filing for bankruptcy if it is necessary. When the ends no longer meet, it's time to seek the advice of a bankruptcy attorney and see if something can be done. Filing Chapter 7 bankruptcy is best for those with large amounts of unsecured debt and can be completed in a short 4 to 6 months. On the other hand, Chapter 13 bankruptcy is best when trying to protect the family home from foreclosure. A Chapter 13 requires the individual and their bankruptcy attorney to submit a feasible repayment plan that will last 3 to 5 years to the bankruptcy court. Because the bankruptcy laws have become much more complex it's easier and best to use a bankruptcy attorney.
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Many experts believe that the stigma was put out there by the credit industry. Mainly it was put out there by those in the debt collection area. They figured out that if they could make people feel bad about themselves, they could get them to continue paying with money they didn't have to avoid filing bankruptcy and having the stereotype of being a loser. There have been many stories of threats and lies that debt collection companies use to get a payment out of an individual. First, they try to befriend the individual and act like they understand their situation and that's why they are trying to help. This is the first lie. They could care less about the person being thrown out on the street with their kids, all they care about is getting a payment. Debt collectors get paid a percentage of what they collect and the more they get out of someone, the more they make. This is sad when an honest person has to choose between buying food or paying that bill, they get bullied into not eating. If the collector was a friend and really understood the situation, they would call back a week or month later and see if the situation improved to get some money. Some debt collectors have gone as far as to threaten a person with jail time for failing to pay their bills. This usually comes after the friendship phase is over. This is an outright lie as debtor's prison is no longer in existence.
The bottom line is, most people didn't realize that the gravy train would go off the tracks at some point. Most families believed that house prices would continue to rise along with their paychecks. All bets were off when the banks admitted failure back in 2007. Since then, many corporations have used bankruptcy filing as a way to renegotiate employment contracts, renegotiate debt with their vendors and so on. If the corporations and big business looks at it as a way to become financially stable, average people should have the same attitude about filing bankruptcy.
Now that the damage is done, people need to get their lives back on track and not be afraid of filing for bankruptcy if it is necessary. When the ends no longer meet, it's time to seek the advice of a bankruptcy attorney and see if something can be done. Filing Chapter 7 bankruptcy is best for those with large amounts of unsecured debt and can be completed in a short 4 to 6 months. On the other hand, Chapter 13 bankruptcy is best when trying to protect the family home from foreclosure. A Chapter 13 requires the individual and their bankruptcy attorney to submit a feasible repayment plan that will last 3 to 5 years to the bankruptcy court. Because the bankruptcy laws have become much more complex it's easier and best to use a bankruptcy attorney.
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Seek Credit Counseling Help Before Bankruptcy
Many people who are struggling financially get to a certain point in their debt where they feel as if they have nowhere to turn. As they take on more loans, credit cards, and debts they know they will never be able to repay, their problem only exacerbates. However, it doesn't have to be that way!
If you feel like your life resembles that description, then you should know that you have options before turning to bankruptcy. While bankruptcy is a great way to get rid of your financial problems, it is a last resort. Before you seek out bankruptcy, try fixing your debt management issues as early as possible with credit counseling.
Why Credit Counseling
You might be thinking that credit counseling is designed for people who are going through the bankruptcy process. And, while you will be required to go through the process should you file for bankruptcy, that doesn't mean that you have to wait until then! You may be able to prevent bankruptcy from being in your future by getting help today!
Here are just a few of the benefits you'll enjoy by meeting with a good credit counseling service:
Debt management solutions. Of course, this is the main reason people seek out their services. Getting debt under control is almost always the biggest issue that drives people to seek professional help. Your credit counseling service will be able to help you bring things back under control by strategizing and offering solutions tailored for you. You may even decide to snowball your debt through a credit counseling service.
Budgeting & Money Management. However, credit counseling is not a Band-Aid. Don't expect to go into it and have your current issues addressed without taking a look at the underlying causes. You will learn good budgeting and money management skills that will help ensure you don't have to end up going through it again. This is one of the most valuable aspects of the service!
Education. Also, you'll be able to ask all of the questions you've always wanted answers for. What's APY? How do you get lower rates on your loans? Should you be "building equity in your home"? Anything finance-related is fair game. This is your chance to learn!
These are just a few of the many benefits you'll enjoy in credit counseling. Remember, you don't have to wait until bankruptcy to seek out these services. Do yourself a favor, and find an agency near you today, before things get out of hand!
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If you feel like your life resembles that description, then you should know that you have options before turning to bankruptcy. While bankruptcy is a great way to get rid of your financial problems, it is a last resort. Before you seek out bankruptcy, try fixing your debt management issues as early as possible with credit counseling.
Why Credit Counseling
You might be thinking that credit counseling is designed for people who are going through the bankruptcy process. And, while you will be required to go through the process should you file for bankruptcy, that doesn't mean that you have to wait until then! You may be able to prevent bankruptcy from being in your future by getting help today!
Here are just a few of the benefits you'll enjoy by meeting with a good credit counseling service:
Debt management solutions. Of course, this is the main reason people seek out their services. Getting debt under control is almost always the biggest issue that drives people to seek professional help. Your credit counseling service will be able to help you bring things back under control by strategizing and offering solutions tailored for you. You may even decide to snowball your debt through a credit counseling service.
Budgeting & Money Management. However, credit counseling is not a Band-Aid. Don't expect to go into it and have your current issues addressed without taking a look at the underlying causes. You will learn good budgeting and money management skills that will help ensure you don't have to end up going through it again. This is one of the most valuable aspects of the service!
Education. Also, you'll be able to ask all of the questions you've always wanted answers for. What's APY? How do you get lower rates on your loans? Should you be "building equity in your home"? Anything finance-related is fair game. This is your chance to learn!
These are just a few of the many benefits you'll enjoy in credit counseling. Remember, you don't have to wait until bankruptcy to seek out these services. Do yourself a favor, and find an agency near you today, before things get out of hand!
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ExperTrans interpreting translation services
Seeking Out Credit Counseling
Credit counseling gets its reputation for helping people who are in serious financial trouble. It may be bankruptcy or it may be severe debt that drives most people to credit counseling. While these services are great solutions for these people who are seriously struggling, it's worth asking the question, "How many serious financial problems could be avoided by pre-emptive credit counseling?"
If you are struggling financially, but still able to keep your head above water, don't wait until things take a turn for the worse before you seek out assistance in credit counseling. If you're nervous that you might lose control of your finances, or if you're just one step away from disaster, it's time to start taking your situation seriously, and to seek out help immediately. Getting the help you need when there's no disaster can make a world of difference.
The Benefits of Pre-Emptive Counseling
Here are just a few of the benefits you'll enjoy in going through the credit counseling process and not having to deal with bankruptcy at the same time...
You will learn how to create a budget and manage your money. Good budgeting is the foundation of healthy financial living. When you know exactly where your income is going, not only will you have peace of mind like never before, but you'll also be able to live a much more comfortable financial life.
Your counselor will be able to give you suggestions on how to save and invest for the future. If you've been too worried about debt to think about the future, now is the time to make a change for the better!
You'll get custom tailored advice for you. Credit counseling is a one-on-one experience, which means you'll get advice that pertains to your situation. No matter how complicated you may think your finances to be, a good credit counselor will help you work through all the details!
Most importantly, however, you'll receive advice about debt solutions that work! Of course, this is the main reason people seek out credit counseling services. Getting rid of debt while building new money management skills will turn your life around!
If you've been on the fence about getting assistance through credit counseling, we want to strongly encourage you to get the help you need today. You will have to take the initiative! However, you'll find that finding a good credit counselor isn't nearly as challenging as you may think it is. The U.S. Department of Justice has a helpful tool that will find an agency near you.
ExperTrans language - multilingual services
ExperTrans voice-overs services
ExperTrans interpreting translation services
If you are struggling financially, but still able to keep your head above water, don't wait until things take a turn for the worse before you seek out assistance in credit counseling. If you're nervous that you might lose control of your finances, or if you're just one step away from disaster, it's time to start taking your situation seriously, and to seek out help immediately. Getting the help you need when there's no disaster can make a world of difference.
The Benefits of Pre-Emptive Counseling
Here are just a few of the benefits you'll enjoy in going through the credit counseling process and not having to deal with bankruptcy at the same time...
You will learn how to create a budget and manage your money. Good budgeting is the foundation of healthy financial living. When you know exactly where your income is going, not only will you have peace of mind like never before, but you'll also be able to live a much more comfortable financial life.
Your counselor will be able to give you suggestions on how to save and invest for the future. If you've been too worried about debt to think about the future, now is the time to make a change for the better!
You'll get custom tailored advice for you. Credit counseling is a one-on-one experience, which means you'll get advice that pertains to your situation. No matter how complicated you may think your finances to be, a good credit counselor will help you work through all the details!
Most importantly, however, you'll receive advice about debt solutions that work! Of course, this is the main reason people seek out credit counseling services. Getting rid of debt while building new money management skills will turn your life around!
If you've been on the fence about getting assistance through credit counseling, we want to strongly encourage you to get the help you need today. You will have to take the initiative! However, you'll find that finding a good credit counselor isn't nearly as challenging as you may think it is. The U.S. Department of Justice has a helpful tool that will find an agency near you.
ExperTrans language - multilingual services
ExperTrans voice-overs services
ExperTrans interpreting translation services
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