Bankruptcy Directory

Reliable bankruptcy information is challenging to find.

Bankruptcy is one of the most challenging, ofttimes even traumatic, decision that can be faced in life. Often due to unpredictable medical expenses, changes in employment or other unforeseen factors, bankruptcy is a last-ditch choice for individuals who face insurmountable debt, foreclosure and other severe financial woes.

Bankruptcy is an unfortunate challenge that can happen to anyone – from the young entrepreneur to the most established businessman. Since the economy is ever changing, along with the stock market, many individuals can’t say they live in complete security any more.

How it Works

Debtors file for different types of bankruptcy for different reasons. A debtor who files for Chapter 7 bankruptcy is generally trying to discharge all of his/her debts. A typical Chapter 7 case runs approximately four to six months, from the petition date to the discharge date.

Chapter 7 bankruptcy is often the more appropriate choice for those whose debts, such as credit card debt and medical bills, are mostly unsecured. So, if you don’t own many assets, your your earning are below the median, and the lion’s share of your debts are not secured, Chapter 7 bankruptcy might be your best choice.

Typicaly, a debtor who files Chapter 13 is employed and is trying to retain his assets while creating a payment plan with the bankruptcy court in order to pay off his creditors. The individual will devise a Chapter 13 plan, where he agrees to make monthly payments to the Court for a term of three to five years. This should provide the debtor sufficient time to pay back the predetermined debts.

Chapter 11 bankruptcy filings are sometimes considered “strategic”. To put this another way, management may wish to reorganize their finances for political purposes, not solely for the sake of balancing books. Chapter 11 is reorganization, not liquidation. Debtors can “emerge” from a chapter 11 bankruptcy within a few months or within a few years, depending on the amounts owed and elaborateness of the bankruptcy.

Plans

In all instances of bankruptcy, plans are presented, creditors vote, and the court makes many reviews until a decision is agreed upon. If the plan can’t be be agreed upon, the court can do one of two things: liquidate the business under Chapter 7 or dismiss the case.

If your plans are accepted, creditors are assigned priority by the court. Once your assets are distributed, you will be free from most of your liabilities, even if your debts are not fully paid off. Creditors are paid according to the amount they accept. The smaller the settlement, the quicker they will be paid.

Conclusion

Bankruptcy can be a real stress relief if you are in a desperate situation, but it is necessary to realize what has brought you to that point. If you declare bankruptcy and then go on without changing your spending habits, you are fated to wind up in a similar situation again.

Declaring bankruptcy is not an easy decision, but we can help you sort out your options, review potential alternatives, and then make a decision about where you might go from here.

It is a legal chance to get a new start.

For more Bankruptcy Information and options, visit our website.

Chapter 7 Bankruptcy InformationFinding yourself in a difficult financial situation can be scary. Facing the possibility of dealing with bankruptcy can be even scarier, especially since most individuals or businesses donâ??t spend time making themselves aware of the legalities that go along with the process. Since many debtors are ashamed of the situation, they often fear asking too many questions regarding the process. As bankruptcy is one of the most important financial decisions a business or individual will ever make, it is essential to have correct bankruptcy information before getting starting with the process.

The federal court systems in the United States deal with all bankruptcy information and set the laws regarding the process. This does not mean that an individual has to go to Washington D. C. to file though, as each state will deal with individuals and businesses during proceedings. This may mean going all the way to the state capitol though. The federal laws on bankruptcy information state that these laws are in place simply to give an honest, but fallible debtor a fresh start.

One of the most important pieces of bankruptcy information to know is that the courts donâ??t come to the individual or business to file, the individual or business goes to the courts. Simply by filing a petition called a Statement of Intentions, the debtor lets the court system know that they are applying for bankruptcy.

Just because a debtor files the Statement of Intentions does not always mean they will go all the way through the legal system. The courts will need to gather important bankruptcy information through forms that will need to be filled out by the debtor. These forms allow the courts to review a debtorâ??s credit history, list current creditors and the amounts of the debts, as well as current and past work history. From this the federal court system will make a determination as to whether or not a debtor can proceed with the court case.

Keep in mind that the debtor does not have to hire an attorney to represent them through the proceedings, although attorneys can be a great source of knowledge regarding bankruptcy information. Many debtors are scared to hire an attorney because of additional charges that they cannot afford, but most attorneys are reasonably priced due to the circumstances. Often times attorneys will not charge a fee for an initial consultation when the debtor is simply trying to acquire bankruptcy information.

Unfortunately, most of the general public does not have a thorough understanding of bankruptcy information. This causes misconceptions regarding bankruptcy. One of the major misconceptions of bankruptcy is that all possessions are taken and repossessed by the courts. Since there are many different chapters of bankruptcy, there are also many different takes on repaying debts, and only Chapter 7 requires a complete liquidation of assets. Even with Chapter 7, debtors are allowed exempts, or items that are necessary for living.

One more important piece of bankruptcy information to keep in mind is that there is a new bankruptcy law in place called Bankruptcy Abuse Prevention and Consumer Protection Act. This law was implemented in 2005 to stop fraudulent bankruptcy claims and may make it more difficult to convince the courts of a claim.

Although filing for Chapter 13 and Chapter 11, or reorganization plans, have not changed that much, filing for Chapter 7 has becoming increasingly difficult. Previously, debtors were not required to take courses on debt, but with the new law in place, Chapter 7 debtors are required to take Credit Counseling and Financial management courses before the process can be completed. To learn more debt relief and how to get started, please visit Debt Relief. bz

If you end up in the unfortunate situation of debt that you are not able to pay back you are in trouble. However, it is definitely not the end of the world; not even the end of your world or life. Fortunately our society has established some good tools for people with debt problems like for example debt consolidation, debt negotiation, asset protection and last but not least personal bankruptcy. This is an institution that nobody could take advantage of it they not really need it. In fact, this is the very last tool people that owe money should use and they should only use it after all other tools have been tried without success.

Filing for bankruptcy is the only way to protect your assets when you are extremely debt and there is no way to recover from it. There are many chapters available for filing bankruptcy and each of them has its own advantages and disadvantages. Filing for personal bankruptcy comes under chapter 7. The other type called the chapter 11 is for businesses. If you are in New Hampshire and you have your business in that place then you can file for Chapter 11 bankruptcy NH if you want to reorganize your business. You should keep in mind that filing against Chapter 11 is to reorganize the business and to start afresh. You can approach a bankruptcy attorney or lawyer for this purpose. The fees charged by the attorneys vary with the law firm you are approaching. However the fees for filing the case may around 1100 USD depending on the state in which the company exists.

As we know that the business can be a proprietorship, partnership, or corporation the laws pertaining to these bankruptcy also varies a little. In the sole proprietorship company the personal assets of the person may be taken over in case of bankruptcy since there is no difference the owner of the business and the person. In a partnership company sometimes the partner’s assets may be used to settle the amount to the creditors. But this is not the case in all the bankruptcy. However if that partner files a bankruptcy case then he may protect his assets.

In the case of bankruptcy in a corporation the corporation itself is separate from the owners. The investment made by the stockholders is at risk and not their personal assets. By filing for bankruptcy under chapter 11 a corporation may well reorganize their business. An understanding of the different chapters of bankruptcy is essential if you are conducting a business.

An employer is legally obligated to comply with the terms of the wage garnishment. However, if the taxpayer is no longer employed or for some other reason the employer does not owe the taxpayer money, the employer does not have to honor the garnishment. If the taxpayer goes back to work for the employer, then the employer is re-obligated to honor the garnishment. Through the wage garnishment, the IRS is allowed to take all of a taxpayer’s wages up to a certain amount. The IRS gives the employer a chart that informs the employer of how much they need to send to the IRS. Frequently, the amount the IRS can garnish is up to 80% of a taxpayer’s wages. The wage garnishment is ongoing until the taxpayer can contact the IRS and negotiate a release of the garnishment. The IRS will agree to release a wage garnishment in full if the taxpayer agrees to pay the liability in full, agrees to a payment plan, or can show that the garnishment is causing an economic hardship. There are only a few requirements that must be meet before the IRS can levy a taxpayer’s wages:1. The IRS must have assessed the tax and sent a Notice and Demand for Payment;2. The taxpayer must have neglected or refused to pay the tax; and,3. The IRS must have sent a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy. The IRS can serve the Final Notice in person, leave it at the taxpayer’s home or usual place of business, or send it to the last known address by certified or registered mail. It is important to note that the IRS is only required to send the Final Notice to the last address known to it. The taxpayer does not need to actually receive the notice for it to be effective. Many taxpayers never actually receive the final notice. Those taxpayers may not realize they are in danger of receiving a levy until their wages are actually garnished. Once an employer receives a Notice of Levy from the IRS, they are required to immediately withhold a large portion of the taxpayer’s wages and send the funds directly to the IRS. The amount of funds that must be withheld is determined by how often the taxpayer is paid and their number of dependents. However, an IRS garnishment usually takes a much larger percentage of funds then other levies. For example, a single mother of two, who is paid weekly, would only be allowed to keep $280. 77 of her wages, the rest would be sent to the IRS. Once a wage garnishment is issued, it is important to act quickly to get it released. Normally, the taxpayer will need to provide the IRS with detailed financial information and enter into negotiations regarding a resolution of the delinquent taxes before the garnishment will be released. Any such resolution will be based on the taxpayer’s unique, specific financial situation. Because of the technicalities and complexities of these negotiations, taxpayers may want to consult with a tax professional for assistance.

Since Limited Liability Corporations (LLC) are a relatively new type of business entity, LLC owners have some difficulty finding out how courts will treat their bankruptcy LLC cases. As an LLC declaring bankruptcy, the owner may get some liability protection since their business is a separate legal entity. However, this protection is not absolute. Why? B ecause as CEO of the legal entity, the owner has fiduciary duties that effectively give them the same liabilities as a sole proprietorship.
So some important questions remain. Will the judge treat them like an LLC, as a corporation or as a partnership? What will happen during a bankruptcy LLC when the company has only one owner? Currently, there is no code or law that directly addresses bankruptcy LLC proceedings.
Partnership Versus Corporation In Bankruptcy LLC
There are two different ways a bankruptcy court may handle the case of Limited Liability Corporation with a single owner. First, the judge may treat the bankruptcy LLC like a partnership. In this case the court would dissolve the LLC and deal out all remaining assets to creditors. Anything remaining goes to the owner. And as in most business bankruptcy cases, there isn’t usually much left.
But the judge may decide the LLC is a corporation. Here the judge would not dissolve the owner from the bankruptcy LLC. The former owner could give over ownership interest to another party. If the former owner decided not to do this, the bankruptcy judge would treat the former owner like a corporate shareholder. The owner would not have to give up stockholdings, just as a shareholder wouldn’t in a large corporation bankruptcy case. Usually under this scenrio, the owner ends up a little better off.
Legalities of a Bankruptcy LLC
One of the greatest drawbacks to filing bankruptcy as an LLC is that owner has no idea how the judge will treat them. Unfortunately, there are no specific rules for dealing with a Limited Liability Corporation in a business bankruptcy filing.
Because of this, there may be several different factors that a bankruptcy court considers when deciding what to do. The most important factor is the number of member owners in the corporation. That said bankruptcy laws do not define the number of individual owners a corporation must have, especially for an LLC.
Because the lines are so blurry here, it is hard to tell how the bankruptcy court will decide who needs to consent to the bankruptcy filing. All members of the LLC may have to consent to the bankruptcy LLC filing. On the contrary if the judge treats it like a corporation, then only one member must consent. Most often in LLC proceedings, the bankruptcy judge looks to state laws and codes to determine how to deal with the bankruptcy. Therefore these proceedings may vary from state to state.
Filing The Bankruptcy LLC
Before filing for bankruptcy as a corporation or partnership, schedule an appointment with a bankruptcy lawyer to discuss these issues. As an alternative, you can also talk to state or county bankruptcy officials who can clarify how they will determine the proper procedures for bankruptcy LLC. Make sure you interview several lawyers before you select one. They should specialize in bankruptcy and be well versed in the specific rules for your state. If possible, try to find an attorney who has experience filing bankruptcy cases for Limited Liability Corporations.

What is Bankruptcy?

Bankruptcy is one of the more effective ways to deal with debts you cannot afford to pay. Once you declare that you are bankrupt, all assests in your possession will be used to pay your outstanding debts. After a period of one year, all your remaining debts will be written off and you can start anew. You can either file your own petition of bankruptcy or your creditors can do it for you. Either way, the effects are the same. Most of the Bankruptcy rules in effect have changed since April of 2004 when the Enterprise Act was approved.

How to go Bankrupt

Filing your bankruptcy petition

A petition for bankruptcy is readily available in your local County Court. Processing the petition may cost about £310 deposit and £150 court fee. These fees should be paid along with the submission of your petition. If you are on low income or on certain benefits, you can be awarded exemption from paying those fees.

Only the larger County Courts accept bankruptcy petitions. Although you are obtaining the form from your local County Court, you will need to take a trip to the High Court to submit the form. If, for example, you reside in central London, you will have to go to the High Court to submit your petition. The District Judge will usually call for a hearing that same day to decide whether it is appropriate to issue the order or not.

Once the order is made, you will get in touch with the Official Receiver who deals with your bankruptcy and report to him all your personal details. The information that you will be asked about usually pertains to your finances including your incomes, expenses, assets, Insurance policies, and Pension policy details.

A creditor making you bankrupt

Your creditor can file a petition for your bankruptcy if you owe him £750 or more, which you are not able to pay dutifully. If you have several creditors, they may join forces to file for your bankruptcy although this is rarely done. You can also be made bankrupt if your Individual Voluntary Agreement (IVA) fails.

Before a petition of bankruptcy is filed in court, your creditor will first send you a “Statutory Demand”, which will ask you to pay your debt either through installments or through the property you own.

The Statutory Demand is usually used by creditors to force its debtors pay the amount they owe immediately without any intention of filing for bankruptcy. This is because no amount is required for filing a Statutory Demand while filing for Bankruptcy charges fees upfront.

Within twenty-one days, the creditor and debtor must reach an agreement otherwise, a bankruptcy order may be filed in court. If your debt is less than £750 or there is an ongoing dispute about the money you owed, you can apply to have the Statutory Demand set aside.

ADVICE – Statutory Demands

Once you receive a Statutory Demand, your next move should be to check if you can have it set aside.

Do I have Assets?

Once you are declared bankrupt, the Official Receiver or appointed trustee may rule out to sell all your assets to pay for your debt.

INFORMATION – Please know that certain items or goods are not counted as assets. These items are basically your domestic needs such as clothing, bedding, furniture, and household equipment. Items that are necessary for you to carry over your profession or vocation are also not treated as available assets and in effect, cannot be taken away from you. Your antiques or expensive appliances can be given up for auction as well as your car so long as it is not needed in your profession. In some cases, a car that is necessary for employment is sold and is substituted by a cheaper one.

All your assets that have been discharged from your possession must be sold as soon as possible. If any of them remains after you have been released from bankruptcy, they will still no longer belong to you. The Official Receiver will continue to take possession of them until all of them have been sold.

INFORMATION – Assets

The only asset or valuable that is treated differently is your home. For details, see below.

Bankuptcy and Hire Purchase Agreements

A clause in the hire purchase agreement states that you will have to return the item once you are declared bankrupt. This means that your contract with the company will be terminated altogether. In some cases, however, you can be allowed to continue ownership by making payments dutifully even while you are declared bankrupt.

Pensions

If you went bankrupt before May 29, 2000, your personal pension could be taken in as an asset. This means that you will receive no lump sum or weekly payments in the future. This rule has been changed, however. Therefore, if you went bankrupt after May 29, 2000, your pension, may it be personal or occupational, should be left untouched. Some debtors used their pensions to stop creditors from taking away their savings. In this case, the pension fund may be lost to the Official Receiver.

Property and your home

A property or home is an asset that is treated differently. If it is yours alone, it can be forfeited to be sold regardless if it has any equity in it or none. If you are living in it with your spouse and your children, the sale will be delayed for a year to give them sufficient time to find somewhere else to live. Once you go bankrupt, your interest in your property is naturally transferred to the Official Receiver. If you co-own it or in some form of joint ownership, the Official Receiver should only take away your equity share. This is also known as your “Beneficial Interest”. In certain circumstances, you can be considered to have a beneficial interest even when you are not named in the mortgage. In certain circumstances as well, your co-owners can make an offer to the Official Receiver to buy out your equity share so the house will remain intact.

REMEMBER – Beneficial Interest

If your co-owners have any intention of buying out your equity share of the property, they must do it quickly. Otherwise, the Official Receiver may take it into his hands in selling your home altogether. Those who want to buy your beneficial interest must get in touch with your Official Receiver and transact with him directly. The Insolvency Service charges very low for the transfer of your beneficial interest so this should not really be a hard thing to manage. You also need to reach an agreement with your Official Receiver on the actual value of your beneficial interest before this kind of transaction is made. If there is negative equity in the property, the value of your beneficial interest may go from a minimal amount of £1. 00.

INFORMATION – Low cost conveyancing scheme

To avail of details about low cost conveyancing scheme, there is a leaflet entitled “What will happen to my home?” which are available in The Insolvency Service. You may also call National Debtline on telephone numbers 0808 808 4000 for more information.

If you fail to have someone buy out your beneficial interest in your home or property, your Official Receiver will have no other choice but to sell it. If your home has very little or no equity in it, the court will have to postpone the sale up to three years and see if your property has risen in value. Make an agreement with your Official Receiver about your beneficial interest to keep this scenario from happening.

If you still have mortgage or secured loan on your property, your monthly payments should be maintained to stop your lender from taking possession of your property.

New rules from April 2004

Before April 2004, the Official Receiver is allowed to come back at any time in the future to take your property and sell it. This has now changed. If you went bankrupt after April 2004, the Official Receiver is given only three years to deal with your property. If he is not able to sell it within the period, he will have to give your property back under your ownership. To counteract this law, the Official Receiver can either sell your home immediately, apply for an order for sale, or apply for a charge. If your Official Receiver applies for a charge, he will be given 12 years to ask for an order for sale.

Will I have to pay anything from my wages?

You may be asked to pay a specific amount from your earnings if the Official Receiver has proven that you have money to spare. He will think out your income and your expenses (including your mortgage, your rent, your household bills, and any other form of expenditures) and study whether you will have allowances for a monthly due.

Income Payments Orders & Income Payments Agreements

The Enterprise Act states that Bankruptcy orders expires after a period of one year. However, you may be asked to enter a binding agreement that will have you pay monthly fees from your earnings for three years under an income payments agreement. If your circumstances change at any period that the agreement is in effect, you can send a notice to your Official Receiver so your case will be looked at again. If you fail to pay your obligations, however, your Official Receiver will have the option to go to court and file for an income payments order against you. This way, the court will rule, based on the Official Receiver’s recommendations, how much you will need to pay for a period of three years.

The Effects of Bankruptcy

Once you went bankrupt, you will need to close your bank account or your building society account. You may open another one for as long as it has been agreed by your Official Receiver and that the bank or building society allows you to. That is why it is best to open an account when you are already discharged from bankruptcy.

INFORMATION – Instant access type accounts

Instant access type accounts may allow you work through a cash card. If you are interested to obtain more information regarding this, you get in touch with the National Debtline on 0808 808 4000.

Going bankrupt can affect your life greatly. In fact, the people that you are going to transact with will usually be more careful not to make you pay any amount that involves credits. If you live with a partner, you may transfer all your payable accounts under his name to make it easier for you and for the companies that you deal with — gas, electricity, and telephone companies.

Your employment status may also be at risk by going bankrupt. To be on the safe side, you must check your employment contract for any clause regarding bankruptcy. If you really want to be sure, you can ask the staff welfare officer or the trade union. If you belong in a professional body that prohibits bankruptcy then you must be prepared for your contract to be aborted. Any job that requires you to handle money could be at risk. Those who work in financial industry could even lose their consumer credit licenses once they go bankrupt.

Even after you are discharged from bankruptcy, you will still find it hard to obtain credits. Your credibility in handling financial obligations is obviously destroyed. This is because your record of bankruptcy will remain with credit reference agencies for a period of six years. Your bankruptcy status will also be kept detailed in the Insolvency Register for three months after you have been discharged from it. “The London Gazette” may also publish about your bankruptcy in its classified section or even in your local paper.

Bankruptcy offences

While you are on bankruptcy status, it is illegal to:

- Take a credit of more than £500 without your creditor knowing about your status.

- Use another business name to deceive people about your financial state.

- Act as a director of a company without permission.

- Act as an insolvency practitioner.

Bankruptcy restriction orders

Bankruptcy status should be lifted out exactly one year after it has been declared. That is in agreement with the Enterprise Act. Your Official Receiver, however, may petition for a Bankruptcy Restriction Order which can last between two and fifteen years, appearing on a public register, nevertheless. The grounds that may call for this order is your misbehavior and dishonesty in any way. If your Official Receiver feels that you have displayed “unfit” conduct, he can ask the court to issue the Bankruptcy Restriction Order. Breaking the order would mean a criminal offence.

Qualifications of an unfit conduct include:

- Deceiving the Official Receiver about your assets and businesses two years before you went bankrupt.

- Gambling.

- Making business transactions at a time when you know that you cannot handle debts.

- Taking out credits you cannot pay.

- Giving away your assets to avoid them from being taken away by the Official Receiver.

- Prioritizing some creditors over the others.

- Failure to cooperate with the Official Receiver.

- Concealing your assets and properties from the Official Receiver.

Being issued a Bankruptcy Restriction Order means that you cannot avail of credit that is more than £500 without letting your lender know about your status. You also cannot hold any significant position like an MP, a local councilor, a director of a company, or an insolvency practitioner until after the order has been lifted.

WARNING

The Bankruptcy Restriction Order does not stop your Official Receiver to take criminal actions against any of your offences. If you sell goods that you have on hire purchase agreement or you fill out false information on your loan application, your actions will be taken into account to the attention of the court, no less.

Discharge from Bankruptcy

The Enterprise Act of 2002 ruled out for discharge from bankruptcy after a period of one year. If you cooperate well enough with your Official Receiver and act to the best of your behavior, this can be moved earlier. A discharge from bankruptcy would mean that all your remaining debts even after your properties and assets have been sold will be written off so you can make a fresh start.

If, for example, you went bankrupt on April 1, 2004, you will be discharged from bankruptcy on April 1, 2005 unless it is about to end earlier.

WARNING

The rules on discharge from bankruptcy only applies to first timers. If you have had previous petitions for bankruptcy or your automatic discharge has been suspended, this may take long than you expected. Not keeping an amicable relationship with your Official Receiver could also lengthen your suffering.

If you want a certificate of your discharge, you may request the court to issue you one but this will cost £60. 00 on your purse. Also, if you want to apply to have your bankruptcy annulled, you may well do so for as long as all your financial obligations have been paid off.

Alternatives to Bankruptcy

Individual Voluntary Arrangements

An Individual Voluntary Arrangement or IVA is a formal agreement between the debtor and the County Court made to avoid a petition for bankruptcy. You can either set an amount to pay your creditors monthly and dutifully or pay them in full. To file for an IVA, you will need the help of an insolvency practitioner who will act as the middle man. It is usually costly to hire an insolvency practitioner. Asking them for an initial meeting where you can seek advice whether filing an IVA is appropriate in your case or not is best suited. This way, you can be sure that every cent you pay for is worth it. Names of local insolvency practitioners can be obtained through the court offices or the Official Receivers.

The insolvency practitioner prepares the proposal of payment scheme that is according to your capabilities. If your creditors agree to the terms stated in your IVA, the arrangement is put in place. If you fail to comply with the terms in your IVA for the period that it was in effect either your insolvency practitioner or your creditors could file a bankruptcy petition against you.

WARNING

Be wary about companies offering to put you on the line with an insolvency practitioner as this requires a fee. You can very well deal directly with an insolvency practioner without having to go through a third party.

FACTSHEET – Individual Voluntary Arrangements

If you need more information regarding Individual Voluntary Arrangements, you may get in touch with the National Debtline on 0808 808 4000.

Fast Track Individual Voluntary Arrangements (FTVA)

This is another alternative that you could sort through. The FTVA is used to have your existing bankruptcy annulled by way of submitting an installment plan to your creditors and hope against hope that they agree with it. This arrangement is much appealing to creditors because they could be paid more under FTVA than what they would under bankruptcy.

Instead of the insolvency practitioner, the Official Receiver works directly to put an FTVA in place. The FTVA is much cheaper than the IVA to arrange because the set fees and costs are lower. If you fail to adhere to the FTVA while it is in effect, your Official Receiver will have no other way than to make you go bankrupt again.

WARNING – Fast Track Individual Voluntary Arrangements

Weighing up the ways an FTVA could work for or against your advantage is important before tackling this road. If you choose to have an organization act on your behalf instead of the Official Receiver, you may want to consider a free debt management plan. This way, you can devise affordable repayment schedule for your unsecured debts.

COUNTY COURT FEES

DO I HAVE TO PAY A FEE FOR AN APPLICATION IN THE COUNTY COURT?

Every transaction with the County Court usually requires court fees. If you feel that you are incapacitated to pay the fees by way of benefits, you can submit an EX160 or the “Application for a fee exemption or remission” together with your main application. If the court agrees to your petition for exemption then you will not have to pay certain fees. If, however, you have paid a fee when you should have been exempted, you can file a petition for the court to waive or refund your paid amount. You can do this within six months after the payment has been made.

EXEMPTIONS

The court awards exemptions from paying fees to those deserving individuals who are on benefits. If you are on income support or income based job seekers’ allowance (JSA), you can automatically be awarded exemption. This is also the case with those who are on working tax credits. If you are on child tax credit or you have received the disability or severe disability element in your working tax, you can be eligible for exemption. This is considering your gross annual income taken into account for working tax credit is not more than £14,600.

To qualify for both, you must present substantial documents that will prove that you are on the above mentioned benefits. If your case does not fall under both, you can ask for your paid fee to be waived under the remission rule.

REMISSIONS

If the court fees will cause you “undue financial hardship”, you are qualified to file for remission, upon which your paid fee will be refunded. This can happen under exceptional circumstances that should prove you are not capable of shedding extra cash for your petitions. To apply for remission, you must present a list of your personal budget, your incomes and outgoings. You must present proofs that your current financial situation makes it impossible for you to pay the fee without having to go though “undue financial hardship. ” Upon studying your petition, the court may refund part or all of your paid fee depending on what it feels you can afford.

The main purpose of the municipal filing a petition with the court is to seek protection against certain actions that the creditors might choose to take against it. This law also protects the debtor, who in this case is the municipal from harassment from the creditors. Though there is no provision for liquidation under this chapter, filing this petition in court acts in the interest of protecting anyone under its jurisdiction. Liquidation or its dissolution would in no doubt go against the Tenth Amendment to the Constitution. Filing of the petition is voluntarily done by the debtor. Once the petition has been filed, the chief judge appoints a specialized judge commonly referred to as a bankruptcy judge. This is done with the aim of removing politics that may negatively influence decisions made on the case. Before the commencement of the case, the municipal faced with bankruptcy must first give notice to the court and the general public. It must therefore, through a court clerk, notify the court of its intentions. The court will thereafter recommend a newspaper in which the it must publish a notice at least once a week for three consecutive weeks. Once the notices have been filed and have been published, the case may begin. However it is not always a guarantee that the court will commence the case. It may reject the petition in some cases which are granted by the bankruptcy code. The petition may be rejected in cases where the state has not allowed it to file a petition. It may also be denied in case negotiations have not been done in good faith. In such cases the court will therefore hold hearings of the dismissal of the petition.

After the Foreclosure Hearing in which the Clerk of Superior Court approves the sale of the property being foreclosed, the Trustee will hold a Foreclosure Sale at the county courthouse in which the property is located.   At the Foreclosure Sale the Trustee invites offers to buy the property from those in attendance and then accepts the highest bid.   The highest bidder is bound by his offer the moment it is accepted.  

After the Foreclosure Sale, there is a 10 day upset bid period in which another bidder may submit an upset bid that is higher than the reported sale price.   An upset bid must be at least 5% and a minimum of $750. 00 higher than the previously reported sale price.   When an upset bid is made, the upset bid period starts over again for an additional 10 days.   This process continues until 10 days elapse without an upset bid, at which point the last bid on the property is accepted and the foreclosure can be completed.

If you are a homeowner going through the foreclosure process, you have the right to stop the foreclosure and save your home up to and until the upset bid period expires by either paying the lender the money owed or working out an alternative to foreclosure with the lender.  

For more information about Charlotte foreclosure and foreclosure alternatives, please visit:  http://zellersrudd. com/areas_of_practice/foreclosure_alternative. aspx

 Prior to founding Zellers Rudd PLLC, Dan Zellers and Scott Rudd worked together in the real estate finance group of some of the top international law firms in the nation. They represented large national banks and servicers in multi-million dollar commercial property transactions as well as multi-billion dollar commercial loan securitizations. These transactions included the negotiation of large servicing contracts as well as conducting large commercial loan transactions, loan assumptions, defeasances, parcel releases, and other consent matters on large commercial properties located all across the nation.

Bankruptcy is a phrase heard and used by many. Individuals tend to have pre-conceived notions about bankrupts that they are individuals who are totally broke. But bankruptcy information can be a real eye opener for debtors who are contemplating bankruptcy and individuals who are seeking information about bankruptcy. It helps debunk all the myths attached to bankruptcy.

1)What is bankruptcy?

Bankruptcy is a legal term to formally identify an individual as bankrupt. It refers to the inability of any debtor or organization to pay their creditors. In majority of the cases, bankruptcy is initiated by debtors or organization themselves. The main purpose of bankruptcy law is to provide any honest debtor a chance to start afresh and to help a debtor repay his/her creditor/s in an orderly manner to the best extent possible by the debtor. Debtors are discharged of most of their financial obligations after their non-exempt assets have been distributed. Creditors can no longer harass debtors or continue any lawsuits once the debtor has opted for bankruptcy.

2)Implications of bankruptcy:

Filing bankruptcy is one of the hardest financial decisions. Debtors must carefully examine the implications of bankruptcy and choose it as a last resort to deal with financial troubles. Following are the implications of bankruptcy:

Lose control over your assets (except items/equipment required for work/household purposes)Cannot act as director of a company/practice as a lawyer/chartered accountantNegative publicity as a bankruptcy is advertised in ‘London Gazette’ and a local newspaperBankruptcy remains on record with credit agencies, land registry and other organizations

3)Common terms to understand bankruptcy

Bankruptcy petition: Individuals who opt for bankruptcy need to formally request protection of the federal bankruptcy laws. It involves filling of two important forms-The petition (Insolvency Rules 1986 form 6. 27) and the statement of affairs (Insolvency Rules 1986 form 6. 28). Chapter 7 bankruptcy: This chapter of the bankruptcy code provides for ‘liquidation’. The debtor’s non-exempt property will be sold and the proceeds will be distributed among his/her creditors. Chapter 13 bankruptcy: This chapter of bankruptcy provides a reorganization plan for individuals with regular income. It allows a debtor to retain his/her property and pay back his/her debt within 3-5 years.

Debtors could also consider various alternatives to bankruptcy before filing for bankruptcy. IVA, debt consolidation loan, debt management etc are proven alternatives to bankruptcy which the debtor can consider before he/she files for bankruptcy.

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Only a few years ago, Congress made multiple huge changes to the bankruptcy laws which impacted how bankruptcy would be filed, and even who is eligible. For example, no longer can you file bankruptcy just because you are tired of paying your bills, but with the new laws, there is a defined set of procedures that must be followed for each chapter being filed, and your financial status will be evaluated under a microscope, where you must be approved before you can even file.

But one of the areas that was left pretty much untouched by the wide range of changes was Chapter 13 Bankruptcy. This chapter was originally constructed to prevent a home from being put on the foreclosure block. But with the massive number of foreclosures that are happening in the US today, it is unfortunate that many people still do not know that Chapter 13 Bankruptcy filing can still be used to prevent foreclosure on their home.

For the average consumer, there are three different types or chapters of bankruptcy that may be available to them, depending on their specific circumstances. The first one is Chapter 7 Bankruptcy, which is the most common type and is also sometimes referred to as a liquidation. Obviously the reason it is known as liquidation is because most of their debt is discharged by allowing the court-appointed trustee to liquidate all of their non-exempt assets. Even with this chapter, however, be aware that there are certain types of debts that cannot be discharged by going bankrupt.

Although it used more appropriate to be used by either businesses or people with substantial assets and income, another type of bankruptcy available to the consumer is Chapter 11, frequently also known as a business reorganization. This type does not wipe out debts, but rather it allows the person or business to reorganize its debt structure and make revised payments to the creditors, sometimes over a longer period of time, and sometimes also with a reduced interest rate. Creditors usually are willing to do this, since collecting their money over time and with interest is certainly better in their eyes than to have the debt wiped out completely via a different chapter.

The last type or chapter of bankruptcy available to the consumer is Chapter 13, frequently also known as the Wage Earner’s Reorganization. This type is the least expensive to file and is typically used by consumers who still maintain their ability to make their payment obligations, usually within three to five years. The total value of their assets which are classified as non-exempt is used as a basis and guideline for the amount that needs to be repaid over this period of time, as well as considering their level of income and any debts which cannot be discharged.

But what many consumers do not realize is that Chapter 13 Bankruptcy also allows property owners to stop foreclosure proceedings if they are behind on their mortgage payments. While the same can be said for the other chapters of consumer bankruptcy, Chapter 13 is particularly designed to permit the consumer to pay the delinquency in equal monthly payments for as long a period of time as 60 months (5 years). The mortgage lender has no choice but to agree to this, as long as all the other requirements and qualifications of this chapter are met.

The procedure to be qualified to file this chapter is more stringent than the others, since it involves a thorough examination of total debt and total income. No chapter of bankruptcy is any longer consider to be a “do-it-yourself” process with all the new legal requirements in place, so regardless of what chapter you are thinking about, it is strongly recommended that you consult with a qualified bankruptcy lawyer and ensure that both you and your property, combined with your specific situation, actually do qualify.

The biggest benefit that you can have with Chapter 13 bankruptcy, if you qualify and if you are facing foreclosure proceedings, is that it buys you time. That time can be used to make your current financial situation better, or it can also be used to find the right buyer for your property. If you move forward with this, keep in mind that the time you are granted with this is finite, and you need to start planning and take action NOW.