Bankruptcy Attorney - To Help You Through Your Financial Crisis Posted By : Apurva Shree
A bankruptcy attorney is the expert who focus specially on bankruptcy law and provide help at the time of legal requirement. They can come to the aid of individuals as well as organizations that are facing such proceedings.
Bankruptcy Lawyer: Your Final Solution When Running Out Of Options
Before rushing to a lawyer to assist you in filing for bankruptcy, you have to make sure what is bankruptcy and what is not. Only then will you have to find a bankruptcy lawyer that you can work with in filing your case. Many people rush to file for bankruptcy thinking that it will solve their financial problems. The opposite is often true.
Declaring your business to be legally bankrupt, only mean that you have done everything you could and there is no way for recovery. It means being deep in debt that it will already be impossible for you to sustain the business.
There are kinds and variations to bankruptcy and the legal process will depend very much on where you are coming from but the purpose is the same. Bankruptcy cases will take years to resolve. The court will determine what debts do not have to be repaid and what will be directly deducted from your income.
In the interim, credit lines will be closed to you. Your credit history will be tainted and no credit institution will want to do business with you. Back taxes that you owe will still have to be paid and obligations will still be enforced like alimony and child support.
When there is no resolution that is possible, finding a good bankruptcy lawyer will then be the only recourse.
A good bankruptcy lawyer should be someone you can be comfortable talking with. Someone you can trust and someone who has displayed competence in handling bankruptcy. This is very important as communication between you and the lawyer must be based on trust. There have been so many instances when the client holds back on information that he thinks is not so significant only to learn later on that the piece of information that was withheld posed additional complication to the case. Withholding information from your bankruptcy lawyer pose problems where non existed before. Bankruptcy lawyers can only help the client to the extent of the knowledge that the lawyer has. It is crucial then that the client works with the lawyer. This is in the first place the client?s future that is at stake.
Do not hesitate to interview the lawyer prior to retaining him. Ask the lawyer questions and a good lawyer must answer you in a language that you can understand. If you don?t, do not be afraid to clarify statements that could be ambiguous to you. Find out a bankruptcy lawyer that already has an extensive experience in handling bankruptcy cases. Whenever possible find a bankruptcy lawyer who is a specialist. Avoid the generalist, as they may not be able to help you as much.
If you feel uncomfortable talking with a particular bankruptcy lawyer, find another one. You can visit the local bar association to find out their recommendation.
When you visit your bankruptcy lawyer, bring a list of all the creditors that you owe, including payments to personal loans that you are not left behind and a list of all your assets and liabilities. The more information you provide the bankruptcy lawyer, the better and more accurate the recommendations he will give you. Remember that lawyers can only work as good as the information that you provide.
Cooperate well in giving your lawyer the data regarding your case because you are in the best position to give those to him. You also will be the person that will either suffer or benefit from the outcome.
Robert Thatcher is a freelance publisher based in Cupertino, California. He publishes articles and reports in various ezines and provides bankruptcy lawyer resources on <a href="http://www.your-bankruptcy-lawyer.info">www.your-bankruptcy-lawyer.info</a>.
The New Bankruptcy Law — How Will It Affect Debt Negotiation?
In April 2005, Congress made sweeping changes in U.S. bankruptcy law that will go into effect on October 17, 2005. It’s called the “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005,” and it means big trouble for Americans struggling with debt problems.
What effect will the new bankruptcy law have on the practice of Debt Settlement (also called Debt Negotiation)? Will creditors still be willing to negotiate with consumers seeking to avoid bankruptcy? Will lump-sum settlements for 30%, 40%, 50% still be possible now that this tough new law has been passed?
The short answer is “YES.” It will be “business as usual” in the collection industry. People that choose to file bankruptcy will definitely be affected for the worse, as I’ll outline below, but those who choose to privately negotiate their way out of debt will notice very little difference. Creditors will still negotiate. Deals will still be made. And nothing much will change in the world of collections. In fact, a viable alternative to bankruptcy will be needed more than ever.
The credit card banks lobbied with millions of dollars to get this law passed. They’ve been working at it for about a decade. Now they are celebrating. These are the folks who think the bankruptcy system has been abused by wealthy individuals, who have defrauded creditors when they could have repaid their debts.
The facts tell a different story:
1. During the period from 1995 to 2004, bankruptcy filings doubled, while in that same period, credit card industry profits TRIPLED.
2. Credit card companies have not been held accountable for their targeting of “easy credit” to individuals who could not afford such loans, which in turn has contributed to the wave of bankruptcies over the past decade.
3. For people 60 or older, 85% of bankruptcies are caused by medical bills or job loss.
4. A divorced woman is 300% more likely to file bankruptcy than a married woman.
5. African-American and Hispanic homeowners are 500% more likely to file bankruptcy than white, non-Hispanic homeowners.
6. Approximately half of all bankruptcies are filed because of medical expenses due to lack of health insurance, or lack of adequate coverage leading to uncovered expenses.
7. The median income of bankruptcy filers is $25,000. (So much for the “rich” abusing the system.)
The new law was a GIFT to the credit card banks, pure and simple. Some estimates show that it will add another $5 billion to the industry’s bottom line. In other words, the bill is about profits and not much else.
Since my whole approach is about avoiding bankruptcy, I won’t go into a detailed analysis of the provisions of the new law. But just to summarize, the net effect is that many (if not most) people seeking relief under Chapter 7 bankruptcy will be forced to file under the Chapter 13 version instead. In plain English, that means that most filers will be forced to pay back a portion of the debt over a 5-year schedule set by the court.
One of the worst aspects of the new bill is the use of IRS “allowable” expense schedules for determining your monthly budget. In other words, your actual living expense are thrown out the window in favor of the IRS standards (and we all know how generous the IRS can be!). So if your actual rent is $1,300 per month, and the IRS says it should be $1,045 for your county and state, that’s TOUGH! The court will only allow the $1,045, period.
In short, people attempting to file bankruptcy after October 17, 2005 are in for an extremely rude awakening! Goodbye cell phones, cable TV, high-speed Internet access, movies, meals with the family, and anything else beyond the minimum allowable expenses as determined by the IRS and the courts.
So what makes me so certain that the banks will be as eager as ever to settle with consumers for 50 cents on the dollar or less? Simple. Two words: Stealth Bankruptcy.
Hundreds of thousands of Americans are going to discover the new reality of this tough law, and they are going to forgo the court system of filing bankruptcy in lieu of what I call “stealth bankruptcy.” A stealth bankruptcy is when you move (with no forwarding address), change your phone number, and drop off the radar screen to live on an all-cash, no-credit basis. Many people already choose this path rather than deal with the invasion of privacy that comes with formal bankruptcy. After the new law goes into effect, more people than ever will take this approach.
Besides the problem of stealth bankruptcy, there are other good reasons the banks will settle as they always have. Consider these points:
A. The creditor doesn’t know whether or not you’ll still qualify for Chapter 7 or Chapter 13 bankruptcy. They still face the risk that you will qualify for Chapter 7 and end up discharging your debt in full, which means they get NOTHING.
B. Even if you file Chapter 13 under the new guidelines, the creditor will still only receive 30-50% of the debt on average (much less in some cases).
C. Under Chapter 13, it will still take the creditors 3-5 YEARS to recover that 30-50%.
D. A lump-sum of 30-50% TODAY is far better than the same amount collected over 3-5 years.
Of course, I certainly expect debt collectors to use the new law to harass and intimidate people who don?t know and understand their rights. You can expect them to say things like, “You can?t file bankruptcy under the new law, so you?d better pay up today!” They will bully and threaten as always, but at the end of the day, they will still accept reasonable settlements. After October 17, 2005, it will still be “business as usual” in the world of debt collections.
Charles J. Phelan has been helping consumers become debt-free without bankruptcy since 1997. A former executive in the debt settlement industry, he teaches the do-it-yourself method of debt negotiation. Audio-CD material plus expert personal coaching helps consumers achieve professional results at a fraction of the cost. <a href="http://www.zipdebt.com" target="_blank">http://www.zipdebt.com</a>
Are You Thinking About Filing For Bankruptcy Protection?
Bankruptcy Overview
Bankruptcy, when you come right down to it, is the process that enables those who are unable to pay their debts get a fresh start.
It allows for some or all of these debts to be discharged or reorganized. Individuals or businesses may file bankruptcy.
This enables you to clean the slate and get a 2nd chance with your finances. In most instances, bankruptcy provides a fair method for compensating your creditors as well.
The bankruptcy process need not be your worst nightmare. However, there are certain requirements that must be met. You will be required to file a list of all of your outstanding debts and a complete list of your
assets. This is done with the help of your lawyer thru the Federal Courts.
To make this process easier to understand, your “Assets” fall into two categories.
They are: Exempt and Non-Exempt
Exempt assets are the property or belongings that you do NOT have to use to pay off the debts you have incurred.
In other words, exempt assets are off the table, (not in play) and may not be touched by your creditors.
In most instances this includes a certain amount of equity in your home, and some of the equity in a vehicle. For the most part, your clothing, and other personal items are deemed exempt. This does not include the expensive jewelry, furs and the big boys toys.
Next, you will be assigned a “trustee” by the Federal Bankruptcy Court to administer the payment of your debts.
Your debts also fall into two categories.
They are: Secured debts and Unsecured debts.
A Secured debt is one in which the creditor retains a “security interest.” Most often it is the same property that was purchased with the credit that creditor extended.
Secured debts occupy the first position. This means they enjoy priority over non-secured debts, and must be satisfied first.
If you are unable to pay off secured debts, the creditor has the option to repossess that property and sell it. If there is any “short fall”, that remaining debt is now considered unsecured. It doesn?t go away, it has only changed from secured to unsecured.
Once you have filed for protection, the court will issue an “automatic stay”. This stops your creditors in their tracks. They may not take additional action against you beyond the bankruptcy.
This allows you to avert impending repossessions and foreclosures.
Chapter 7
In Chapter 7 Bankruptcy you are in fact liquidating your assets. This means that you are only permitted to keep “exempt” property. The remaining non-exempt property will be sold to the highest bidder. The proceeds of the sale are applied to the outstanding debt. The shortfall or amount left unpaid by the sale is then discharged.
In Chapter 7 Bankruptcy there are a few debts that are not dischargeable. They include taxes, back child support, DWI fines and student loans.
Chapter 13
In Chapter 13 Bankruptcy you are trying to regroup, recoup and get back on track. It is commonly known as the “reorganization bankruptcy for individuals.”
Individuals who want to pay off their debt over a period of three to five years file Chapter 13 bankruptcy.
Chapter 11
Chapter 11 Bankruptcy is commonly used as the reorganization tool for businesses. This kind of bankruptcy is attractive if you own “non-exempt” property that you want to protect.
Chapter 11 will also help you to catch up on bills that have fallen into arrears. It effectively blocks an impending repossession or foreclosure.
Not everyone is eligible for a Chapter 13 bankruptcy. You must have a reliable source of income that is sufficient to pay your reasonable everyday expenses and still have an amount of positive cash flow with which you begin paying off past due bills.
If you file a Chapter 13 you are required to submit a plan to repay your debts that includes a set timeframe and set amounts to be repaid. Upon approval of the bankruptcy court, both parties (debtors & creditors) are obliged to accept the terms of the order
What To Do Now
Choosing your bankruptcy lawyer is an important decision.
This beginning process allows you to evaluate and determine your best course of action. This discussion is also your opportunity to satisfy yourself that the Jersey Justice sponsoring attorney?s fees are reasonable for your type of case.
Am I Making The Right Decision?
In all likelihood you are stressed and feeling the pressure to seek professional help with your finances.
Your decision to look for an experienced bankruptcy attorney may be the best financial decision you have made in a long time.
Even taking the beginning steps to consult with an attorney takes enormous courage. You may even be thinking about struggling through all the mess on your own. That could be a very lonely path.
Before you make the decision to go it alone, ask yourself a few questions. If two or more of these are you, then it could be the perfect time to seek the services of a bankruptcy professional.
Are You:
receiving harassing or threatening phone calls from people you owe?
paying the minimum payment possible on your credit cards?
taking out Payday Loans? (which by the way are illegal in NJ)
begging for loans from friends and family?
about to lose your job?
behind in your taxes?
receiving foreclosure notices?
behind in child support or alimony?
gambling to try and make ends meet?
sick and unable to even go to work?
If your answers indicate that you are in financial deep water, bankruptcy may be your best solution, but you will never know for sure until you get the advice of an attorney.
How Will Bankruptcy Effect My Life? Your Bankruptcy Attorney will be able to explain some other very important considerations.
What happens after bankruptcy?
What will my life be like?
Will I ever be able to get credit again?
How do I live within a budget?
How do I start all over?
How do I rebuild my credit?
If these nagging questions are on your mind, then a bankruptcy attorney is right for you.
It is true. A bankruptcy can be a persistent source of blemishes on your credit report for up to 10 years.
The good news is you are able to start re-establishing your credit the moment your case is closed.
How good is your present report? It is probably already suffering the consequences of late payments, delinquencies and every other known credit report disorder.
Think about this. Your credit score could actually improve due to the elimination of most of your debt. Lenders actually believe that you are a better credit risk now since they know that you may not file bankruptcy again for another six years.
At about 18 months to 24 months into your bankruptcy you will even be able to qualify for a new home loan if you are able to come up with a minimum down payment backed up with proof of income that supports the debt service.
Auto loans are available to individuals upon discharge of your existing debt. And believe it or not you will start receiving offers for credit almost immediately. But “caution” is the watchword at this critical point in time.
The offers of credit could have been what got you into trouble in the first place.
Tony Merlino is webmaster and legal marketing consultant at <a href="http://www.JerseyJustice.com" target="_blank">http://www.JerseyJustice.com</a> ,a legal information and marketing portal for clients and their lawyers in New Jersey.
Bankruptcy Lawyer Virgin Islands - Personal Bankruptcy - How Bankruptcy Laws Work 630 Posted By : bankruptcylawdomain
We shouldn’t have to discuss the reasons to avoid bankruptcy. After you file you Bankruptcy petition, the court will usually issue an order prohibiting from collecting any portion of their debt from you, seizing property such as your car or commencing any continuing legal against you. At the time, debtors could be legally tortured or even killed at the whim of creditors should funds continue to be owed
