Many individuals are filing for bankruptcy in the United States, and it’s expected many more are likely to do so in the coming months. The economic crisis makes it difficult for Americans to earn a proper living, and bankruptcy lawyers are likely to remain busy since the unemployment levels are steadily rising. Approximately 130,000 families filed for bankruptcy in the last month alone, and the current trend indicates more debtors are likely to avail the Chapter 7 and Chapter 13 statute benefits. The major issue faced by the debtors is how to go about filing a bankruptcy? What’s the best way of doing it, and what kind ought to be availed? The following pointers can help you in understanding how and why to file for it:

The correct bankruptcy option for you

People tend to think a bankruptcy can eliminate debt in totality, and after one files for one, one’s going to be debt free. That’s not true. It doesn’t eliminate all kinds of debts. Certain debts originating out of alimony and child support related issues can’t be filed for bankruptcy, and even student loans aren’t covered. So one has to decide upon the correct type of bankruptcy, which can cover the major debts. Our attorneys explain the rules in debt, so the individual can understand what types of debts bankruptcies cover, and also help them file for personal bankruptcy. (more…)

If you’re thinking of filing Chapter 7 bankruptcy you may have debts for past due income tax obligations. Before you file your case, you need to understand exactly what will happen to your income tax debts if you file Chapter 7.

Income tax debts cannot be discharged in a Chapter 7 bankruptcy if:

the tax return was due to be filed less than three years before the filing of the bankruptcy;

OR the taxes were not assessed within 240 days of the petition. (more…)

Yes, you can get a mortgage after bankruptcy, but not right away, and not without some work towards rebuilding your credit.

After you’ve completed filing you are supposed to have a fresh start, but the truth is that you are viewed as a financial risk. Of course, if you take some time to build up a history of using credit appropriately then things will be much easier for you.

There are two types of payments that make up your financial history, revolving (credit cards) and installments (loans). You’ll want to work on building up both of these. I recommend starting with a secured credit card and working on a small loan six months to a year later. (more…)

Bankruptcy Issues

Any future plans of getting a loan or financial assistance may be jeopardized through the permanency of a bankruptcy record. A record of bankruptcy will sadly stay in your file for ten long years. Given that even if you are not required to pay your debts as per bankruptcy laws, your loan applications will be hard to pass since lenders and finance companies will see your poor credit rating. Having a bad credit score plus a bankruptcy record is terrible, but there are still ways to improve it.

Knowing a Bankruptcy Equity Home Loan

Bankruptcy equity home loans are sometimes called second mortgages. Since lenders will have your house as collateral for your loan, they categorize them as secured loans. You can get at least 80% to at most 125 % of your property’s market value through a home equity loan. Before applying for a home equity loan, you must think about several things and consider them carefully as a home owner. If you are in the middle of a bankruptcy, it would not be good to lose your home to a second mortgage. (more…)

Building credit after bankruptcy will actually do a lot more for you, and is a lot easier, than you think. It is a commonly held belief that once you file all that paperwork, while your debt will be behind you, people will judge your finances for the next ten years and make doing much of anything impossible. This does not have to be the case.

There are many instances where people have worked hard and stayed on top of things and within two years had a decent score again (or for the first time). After two years lenders will again start accepting your application for a home loan, and if this, or any other endeavors are in your future plans you’ll want to be prepared. (more…)

Even before deciding to file bankruptcy, which might tarnish your reputation, spend your precious time, and money, and put you into a stressful situation, why not consider avoiding bankruptcy? Find out how you can trim down expenses, boost earnings, bargain rates and put up for sale assets to eventually keep you away from falling into debts or help you pay off your debts.

The ultimate question to ask yourself is whether or not you can avoid personal bankruptcy and how you could manage to do that. There are two alternatives to bankruptcy: Avoiding bankruptcy on your own and avoiding bankruptcy with an external support. (more…)

A recent study looked at the suggestion that bankruptcy rates in the US could be dramatically reduced if a better health care system were in place in America. While it is true that personal bankruptcy rates in the United States have soared since the economy started to deteriorate, the myth that health care costs are the driving factor is just that: a myth.

According to a recent study by Brett Skinner and Mark Rovere, health care costs that are paid by the user do not impact bankruptcy filings. That is not to say that high medical costs do not contribute to bankruptcy filings, but overhauling the US Medical system alone will not have a tremendous impact on bankruptcy.

The reason for bankruptcy is quite simple and obvious (once revealed). And that reason is lack of income and savings. The study points to Canada as an illustration that bankruptcy rates and assisted or paid medicare are not linearly related. In fact, personal bankruptcy rates in Canada were roughly 10% higher in the past two years. It is interesting to note that Canada has an assisted healthcare program that is so inclusive it is virtually paid for, yet their bankruptcy rates are quite a bit higher. (more…)

When someone is going to file for bankruptcy, chances are that they aren’t taking everything that they should into consideration. There are a lot of things that people don’t think about when they think about bankruptcy, but knowing them are going to help you to be more prepared.

Here are some of the things that should be considered before filing for bankruptcy:

- Which chapter of bankruptcy applies to the person.
- How much they earned in the six months before they filed
- Debts which are able to be discharged versus the debt that can’t be discharged
- Which of the transactions will be risky to any judgment of filing bankruptcy
- Which of the assets of the person are going to be exempt.

There are also other things that should be taken into consideration before a person files for bankruptcy. (more…)

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.

if you are someone that owns a house or other kinds of valuable property, you should not represent yourself no matter whether you are filing Chapter 7 or Chapter 13. You may save money by not getting an attorney, but you may wind up making a mistake that is going to cost you a lot more than a lawyer would have. (more…)

One of the biggest challenges facing people with debt trouble is whether or not Chapter 7 or Chapter 13 bankruptcy will indeed remedy the personal problems in their lives. It may seem like a strange statement at first glance, but debt problems often cause personal problems that many believe will go away with bankruptcy. This is not always the case because people with debt trouble are focussed on the symptom, not the true problem.

Debt Problems Are Linked to Income

In reality, debt trouble results from a lack of income. Therefore, making the appropriate bankruptcy filing, whether it is Chapter 7 or Chapter 13, will not fix the personal problems, it will simply fix the debt problems. And even then, eliminating the debt will not always allow you to free up income for discretionary spending. (more…)