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When the debt starts piling up, this can be very stressful time for just about anyone. As a result, many people find themselves having no other choice but to declare personal bankruptcy. Of course there are many advantages to having your debt wiped clean and allowing you to start with a fresh slate, is also important to keep in mind that there are many different consequences associated with declaring bankruptcy. These choices can affect you for the next several years to come.

For starters, your credit rating score will definitely suffer as a result of filing chapter 7. While some people may not care about this drop in credit rating, many others may have a serious issue with it. You just have to remember to think ahead and to figure out exactly what is more important to you on the road to come.

Eventually, if you are like many people you will want to purchase a car or maybe even a washing machine or potentially a home. With poor credit, all of these purchases can be downright impossible for some people; and when you choose to file Chapter 7 bankruptcy you are making the task even more difficult.

Continue reading ‘Declaring Personal Bankruptcy – Understanding Its Consequences and Impact on Your Life’ »

Bankruptcy is a legal expression that is used by individuals and businesses to declare their inabilities to pay off their debts. It is an extreme debt relief option that one chooses when no other option seems to be good enough.

Bankruptcy allows a person to clear all his debts either through liquidation of non-exempt assets or a proper repayment plan. A person gets to avail several options when he applies for bankruptcy. This article will deal with all the important aspects of chapter 7 code under bankruptcy.

Chapter 7 code is also recognized as ‘liquidation of assets’. Under this code, the bankruptcy process starts as and when the court appoints a trustee who takes charge of all the non-exempt properties of a debtor. He estimates the entire value of the debtor’s assets and pays all involved creditors. Continue reading ‘Bankruptcy – Advantages Of Chapter 7’ »

You should always first consult an Arizona bankruptcy lawyer to get a thorough analysis of the type of bankruptcy filing that is most appropriate for your situation.

Chapter 7
The most common personal bankruptcy is a Chapter 7. In a nutshell, a Chapter 7 filing allows the debtor to discharge most debts, such as credit card bills and health care charges. A Chapter 7 is streamlined, procedurally simple, and the least costly. Your average basic “no-asset” bankruptcy will cost a debtor anywhere from $1,200 – $2,000 in legal fees for an experienced Arizona bankruptcy lawyer (which admittedly is not cheap for most people in financial distress). More complicated bankruptcies cost more.

In addition, a Chapter 7 will relieve the debtor from most liabilities. For example, if an Arizona foreclosure occurs on a debtor’s home, a Chapter 7 will prevent most junior home equity lenders from suing the debtor for any deficiency amount owed. As a side note, so long as the debtor’s mortgage was used to purchase the house, the mortgage lender is usually prohibited from suing the debtor for any deficiency amount, even without a bankruptcy filing(assuming that the Arizona “anti-deficiency statute” applies). Always consult with an Arizona real estate lawyer to determine whether your mortgage lender can sue you for any deficiency amount if a foreclosure has occurred or is pending. Continue reading ‘Differences Between Chapter 7 and Chapter 13 Bankruptcy’ »

A sometimes inescapable choice, bankruptcy is not a choice anyone wants to make. This may be partly because the cost of bankruptcy is very expensive.

Filing bankruptcy is a huge cost. So many fees are required, while some of these are small amounts not all of them are little. Regardless, they all add up in the end.

Maybe the biggest charges are the lawyers and filing fees. The can easily soar into the $1000 range. Then there is mandatory credit counseling that costs.

Lots of times changes are required to the original filing. When this happens amendment charges, petition fees, reopening costs, and charges to change from Chapter 13 to Chapter 7 are applied. Continue reading ‘Knowing How to Discover the Real Cost of Bankruptcy’ »

Certain amendments have been made in Bankruptcy laws in the US. The new laws prevent deceitful people from exploiting the system and thwarts citizens from filing bankruptcy without seeking out other options.

Changes In Chapter 7

Under the new Bankruptcy laws, it’d now be tougher to file for bankruptcy. Besides, certain filers that come in high-income class cannot use Chapter 7 bankruptcy any more. Instead, they would be required to repay a small amount of their debt under Chapter 13.

According to the new laws, debtors need to obtain credit counseling first and then file for bankruptcy. Even if you know that it’s not feasible to come up with a repayment plan or you don’t want to repay due to some unfair practice, you would still need to undergo counseling. In case the counselor formulates a repayment plan, you need to get a certificate proving that you have finished with the counseling and would have to submit both the certificate and the plan to the court. You can file for bankruptcy only after doing all this. Continue reading ‘The New Bankruptcy Laws – Chapter 7 and Chapter 13’ »

If you are one of the millions of Americans facing the dire reality of a situation in which you simply cannot afford, nor will you be able to in the foreseeable future, to pay off your outstanding debts, then there is a good possibility that you are already considering filing for bankruptcy. Of course, there will be hundreds of questions zipping around your head right now under those circumstances, but one of them may well be, do you need an attorney for bankruptcy? This article answers that question.

You will need to consult with an attorney for bankruptcy at least once regardless of anything. This is because you need to establish primarily whether or not bankruptcy is right for you and secondly, whether chapter 7 or 13 is the best option for you. Circumstances under which you would absolutely need to retain the services of an attorney for bankruptcy would be, firstly if your house is facing foreclosure and you are filing for chapter 13 and additionally if you are already involved in any other lawsuits regarding your finances. Continue reading ‘Why You Need an Attorney For Bankruptcy For Best Results’ »

Did you know that most people have heard of the term “bankruptcy” but really have no idea what it entails? Hopefully we can stay out of debt so that we don’t have to learn too much about it, but sometimes it is necessary that we go through it. This could be because of poor financial decisions, or just bad luck. Whatever the reason, the more you know about the process and the event, the better prepared you can be to take care of it when it comes up. Here are a few commonly asked Bankruptcy Questions.

How do I know if I should file for a Chapter 7 or a Chapter 13 Bankruptcy?

This is a very common bankruptcy question and it totally depends on your current financial situation and your ability to make payments. If you are a residential homeowner and have a steady job and income than you probably will have to file for Chapter 13. Continue reading ‘Important Bankruptcy Question’ »

When people are getting ready to file for bankruptcy, one of the questions that they are often going to ask is if they need to get an attorney. The truth is that you can file for bankruptcy without an attorney, but chances are that you are going to have better results if you have one.

If money is a problem, then there is a chance for you to get a lawyer who will offer a free or very low cost consultation by getting in contact with a referral service or bar association. If you’re really poor, you may qualify for legal aid.

If you are filing for Chapter 7, chances are that you may not need a lawyer. But it has to be simple, without any large items such as a car or house.

If you are filing for chapter 13, you should not handle it on your own. You should hire an attorney because there is going to be negotiation with the creditors and the office of the trustee for Chapter 13. Continue reading ‘Do I Need an Attorney to File Bankruptcy?’ »

If you think that you need to file for bankruptcy you should consider bankruptcy help from either a well established non-profit organization or through an attorney. Several years ago the laws were changed and it has now become more difficult to qualify for filing. This is because too many people were using this as a way to live recklessly and then turn around and file either chapter 7 or chapter 13 and clear their debts. This was happening with such frequency that lenders began to pass on these enormous write-offs to the average consumer and to try and stop people from taking advantage of the system congress made the qualifications even tougher.

There are pros and cons to tougher laws. While it has cutting down on people that purposely run up their debts and then file, it has made it harder for those who are in serious, legitimate need from getting out from under their crushing debts. If you are in serious debt trouble get help to file your bankruptcy this way you will know and understand your rights as a consumer. Once you decide that you need bankruptcy help here is the necessary paperwork that you will need to have in order. Continue reading ‘Getting Bankruptcy Help is a Wise Idea’ »

When insurmountable debt trouble leads people to file for bankruptcy, they often find themselves stressing over the Chapter 7 means test. Specifically, the Chapter 7 means test will start with the seemingly daunting Official Form 22A – Determination of Presumption.

While this eight-page document is meant to ensure that only the most “qualified” of filers use bankruptcy as a way to eliminate their debt, the Chapter 7 means test is clearly not meant to frighten or intimidate filers.

When determining whether an individual qualifies for bankruptcy protection, the bankruptcy courts will first determine whether the person filing meets the median income level determined by the Census Bureau for their specific state. As far as the Chapter 7 means test is concerned, if income is anywhere below the median, then the determination of presumption will be made.

As for median income levels, they are readily available on most websites that discuss bankruptcy and its process. The median levels for single people range anywhere from a low of $32,348 in Mississippi to a high of $57,505 in Connecticut.

Continue reading ‘Exploring the Chapter 7 Means Test’ »