Bankruptcy Directory

Bankruptcy is a Federal Law, whereby the assets of an individual or an organization are handed over to a trustee so that the outstanding debts can be paid off. Bankruptcy is usually declared by debtor(s) when more money is required to be paid back than the debtors can afford to shell out. Financial experts suggest that bankruptcy should be treated as one of the last debt solutions.

People with debt problems try to find a solution on their own. They try out different debt solutions like debt consolidation, debt settlement and debt management program. However, it has been proved that if you take the assistance of a professional, the process of getting out of debt becomes faster.

Opting for debt help can save you from the fury of the collection agencies. The collection agencies are known to harass debtors to no end this further agonizes a debtor.

Changes brought about by the new bankruptcy law:

In the last couple of years, many changes have taken place in bankruptcy laws. The new bankruptcy law introduced recently brought about certain key changes. They are as follows-

A legitimate reason for filing for bankruptcy-

Earlier you could file for bankruptcy as per your requirements and your whims. Filing for bankruptcy was not difficult and you could start all over again if you had not been maintaining a very healthy financial status. However, with the introduction of the new bankruptcy law, several changes have set in and you are required to have a good reason to file for bankruptcy. A good reason may include someone’s death, an unexpected event etc. The reason should be legitimate enough for you to qualify.

Waiting period-

Previously, if you had been facing debt problems, you could file for bankruptcy more frequently. As per the new bankruptcy law, the waiting period before you can file for bankruptcy again has been greatly increased.

Types of debts qualifying for bankruptcy-

In previous years, a debtor could just wipe out all his debts by filing for bankruptcy. According to the new bankruptcy law, only certain type of debts can be wiped out and a debtor has to pay for the debts that do not qualify under the new bankruptcy law.

Approval from a bankruptcy judge-

The decision of filing for bankruptcy no longer rests in your hands. A bankruptcy judge has to first approve that your financial condition is bad enough for you to file for bankruptcy. It is the decision of the judge alone whether you should file for bankruptcy or not.

However, if it is found that you are eligible for filing for bankruptcy, you should always seek help from a trained professional handling such cases.

Statistical data indicating the rise in the incidence of bankruptcy filings-

Statistics given here indicates that the incidence of filing for bankruptcy has increased over the years. Since the laws pertaining to bankruptcy was more lenient in the previous years, majority of the debtors seeking debt solutions used to file for bankruptcy. However, the new bankruptcy law lays down stringent rules and the decision to file for bankruptcy is at the discretion of the judge handling bankruptcy.

Image taken on 2008-12-03 11:42:41 by cliff1066™.

Perhaps, as a business individual you want to find out what is really meant by Chapter 13 bankruptcy rules and what are its benefits and drawbacks. Here in this article we will talk about the basics of Chapter 13 bankruptcy rules.

Declaring Chapter 13 bankruptcy can be an advantage for you if you’ve failed in all of your attempts to get rid of the outstanding debt. Using the help of Chapter 13, you can prevent foreclosure and also repay some or all of one’s debt over a specific time period that usually takes up to 3 – 5 years to repay your many debts. Chapter 13 can be referred to as reorganization bankruptcy or even a wage earner’s strategy.

The first thing that we have to tackle about is to know when we have to file Chapter 13. Submitting Chapter 13 will be helpful to you if you’re experiencing a single or a lot more with the pursuing situations. such situations are, you desire to protect your assets from liquidation, or you desire to spend off your guaranteed bad debts, you’re not able to pay out your month-to-month mortgage bills, your property lien is extra than the value of your collateral, you’re not capable to discharge your debt by declaring Chapter Seven bankruptcy, or maybe your earnings is very much higher than what is needed for processing Chapter Seven. The main function of Chapter 13 bankruptcy rules is like a debtor,  you have to put together a repayment prepare and attach the proposal along with your bankruptcy documents while declaring Chapter 13. Then, you should send the proposal to all of your creditors. Your repayment plan needs to comprise of all of your bad debts, which are, the priority claims as well as your guaranteed and unsecured debts.

Now that you already know when to file this Chapter 13 bankruptcy rules, the next thing to know is what its eligibility standards are. You have to satisfy some aspects in order to qualify for declaring Chapter 13 bankruptcy rules.

The eligibility criteria for Chapter 13 bankruptcy rules are as follows:

                a) You must have typical earnings in order that you are able to make your monthly payments.

                b) You should’ve enrolled your self in the credit score counseling session inside past 6 months prior to processing bankruptcy.

                c) According towards the bankruptcy rules, you shouldn’t have exceeded USD 307,657 and USD 922,975 inside your unsecured and guaranteed debts respectively.

                d) You gross monthly income is essential to become much more than the State Median Revenue of your loved ones size.

                e) You cannot file Chapter 13 inside of Two years from your past declaring; you must wait for 4 years if you’ve filed Chapter Seven previously.

Chapter 13 bankruptcy rules is for individuals, or little enterprise owners, who need to repay their creditors but are in monetary hardship. Chapter 13 usually protects individuals with the series efforts of creditors and permits those people who are submitting to retain their actual estate and individual property. It also provides signifies in order that the individual can shell out his or her obligations through lowered expenses.

To know more about how to file Chapter 13 bankruptcy rules, you can see a trusted lawyer for they know better than any person.  

Bankruptcy Questions

Filing for bankruptcy after those endless debt issues may seem as the last resort. However, it might be more of a fearful act. Bankruptcy is a hard-nosed procedure with almost permanent impact. The menacing after effects of bankruptcy, which often are not properly assessed before filing for bankruptcy tend to confuse during the process, thus impelling many to cancel the proceedings.

Debt issues are difficult to deal with and even more strenuous are the problems which typically complement the financial agonies; however, Filing for bankruptcy is not the very perfect answer to curb miseries. Instead, Filing for bankruptcy might just aggravate the issue, leading to even greater, unmanageable troubles. Therefore, before beginning with the official bankruptcy Filing act, read on to find all about bankruptcy and thus refrain from the insidious obligations.

Bankruptcy – The Concept

In the most positive terms, bankruptcy is a legal proceeding that allows individuals and companies to start over again without managing their debt obligations. When large corporations opt for bankruptcy, the leading media representatives talk about it, while when average earning people apply for one, they are an addition to the statistical reports. In the UK, both the stated bankruptcy filing announcements are a norm, thus making bankruptcy sound as a very tempting debt solution route. To further entice the sufferers of the debt, bankruptcy promises to cease all financial stress, and suggest a way out with less to pay, thus eliminate all debt issues.

Bankruptcy has a Host of Harmful Consequences

If you are just thinking about filing for bankruptcy, then consider the matter deeply, because there is much more to it than the benefits stated above, Bankruptcy also has a host of disadvantageous consequences. Once an entity begins filing for bankruptcy and thus declares the bankrupt is devoid of assets of value such as a house or other equity. Businesses could be sold, including machinery to repay creditors. Those declared bankrupts may have accommodation issues, with landlords not too delighted to accept them as tenants. Remember, bankruptcy, is a legal procedure, and therefore is recorded by bankruptcy law. Bankruptcy stays in files for years (see enterprise act for updates) and therefore negatively impacts financial transactions until the same time. The image is not very helpful in envisaged career moves as well. Employers too are apprehensive of those with bankruptcy records in their credit files. Of course, seeking and obtaining competitive credit terms can be just a dream after filing for bankruptcy.

Bank current accounts suddenly seem unobtainable. And after all this mess, there are certain debts which even bankruptcy cannot deal with and there are secured creditors, who have every right to their share, even after the bankruptcy has been declared.

Bankruptcy offers a chance to start again, but there may not be many resources to start again. For more useful information on bankruptcy questions, please visit Debt Relief Adviser.

Bankruptcy is provided by Federal Law and all the cases related to bankruptcy are handled in Federal Court. Basically it is a legally declared by the court in which any individual or the organization is unable to pay their debts, expenses, bills to their creditors. Those who are bankrupt can file bankruptcy in a way to stop their creditor to collect debt from them. Chapter 7: Liquidation Bankruptcy & the changes under the new lawIt would be very harder for some people to file bankruptcy now. Especially with higher income level category they are now no longer allowed to use chapter 7. They need to pay partial amount of their debt under chapter 13. Before filing a bankruptcy case all the debtors have to undergo for the credit counseling, budgeting and the debt management.   This law imposes on the lawyers too so it is very difficult to find an attorney to represent the bankruptcy case. Following are the changes in the Bankruptcy Law – •    Under the old law many filers can choose the type of bankruptcy. Most of them were choosing Liquidation (Chapter 7 – Bankruptcy) over Repayment (Chapter 13 – Bankruptcy) because they proved beneficial for most of them. But under the new law, it would not be the case for the higher income group filers, the new law has prohibited from using chapter 7 bankruptcy for them. •    Now the question arises about how you will define your income is high for filing under the bankruptcy. Under the new rules, the first step is to figure out your monthly income against the median income for a household for your size in your state to file in the chapter 7 bankruptcies. If it is less than that then you can file under chapter 7 and if it is not then you have to pass the means test. Another clause or the law in order to file for chapter 7. •    The means test is to be done to calculate your disposable income and to see whether you have enough disposable income after deducting your expenses, debts, payments under chapter 13. If your income is high up to a certain limit  after deducting your expenses, debts and all then you are not eligible for chapter 7 and if it is less than the certain amount then you can file under chapter 7 bankruptcy. •    Now the next step is the counseling from the approved agencies by the United States Trustee’s Office about the credit & debt counseling. Purpose behind this counseling is to see and give an idea about your need to file for bankruptcy. Counseling is required even if it’s a repayment plan or for the debts that you are facing and you do not want to pay. If the agency come up with a repayment plan the agency proposes and you agree on that propose then you can submit it to the court along with the papers that you have completed the counseling process. Towards the end of your bankruptcy case, you will have to attend the last counseling session to learn about the personal financial management. After submitting the proof to the court you fulfilled this requirement. These are the new changes in the bankruptcy law. There are other changes that can affect bankruptcy filers negatively. In short, debtors are at more risk of having their property taken and sold by the trustee or the authenticated person.

There are at least two methods of removing an IRS wage garnishment. One is to make an arrangement with the IRS. You can do this yourself through the use of an offer in compromise. Or, you can hire a tax attorney to negotiate an arrangement with the IRS on your behalf. Another method is to do a fair amount of research into your case, and others like it, to find instances where the IRS has violated proper procedure in their dealings with you.

The tax law is very complex. It is highly likely that you do not know every detail contained in the thousands of pages of tax law. Believe it or not, neither does the IRS agent. They very often violate their own rules. This is so common that it would be laughable if it wasn’t such a serious matter. Nonetheless, with some research and investigating, you’ll likely find an instance where the IRS has erred in their actions. When you find an error that they have made, you have what you need to get the IRS wage garnishment removed.

There are many cases where people tried to sue the IRS under all kinds of different theories. The courts continually dismiss those cases. The solution to not having your case dismissed is found in 26 USC § 7433 and 26 USC § 7432. In 1988, the United States waived sovereign immunity in 26 USC § 7433 and made it possible for someone to sue the U. S. when IRS agents fail to follow the statues or the regulations while they are involved in tax collection activity. Section 7432 made it possible to sue when the IRS refuses to remove a lien that is legally unenforceable.

If you intend to sue the IRS you are required to send a letter noticing the U. S. of your intent to sue as required by the statute to obtain the waiver of sovereign Immunity. Without the waiver of sovereign immunity, your case will automatically be dismissed.

Now, once you are aware of this little-known fact, it changes the way that you can approach the IRS. Most people do not know of this requirement. And the IRS knows that most people don’t know of it. When someone who has been wronged by the IRS threatens to sue them, the IRS can basically chuckle and think to themselves “Go ahead, your case will only get dismissed from court anyway. You’re wasting your time and money. ”

However, by knowing this fact, you can send a letter to the Technical Compliance Officer as required to obtain the waiver of sovereign Immunity. By doing so, your case becomes credible, and the IRS will take you seriously. Your case may have merit. You may actually win a court judgment against the IRS.

Just as court cases are expensive and a big hassle for you, they are the same for the IRS. The IRS wants to avoid all of the effort and time that is required to try a case in court (unless of course, your case is high-profile and the sums of money involved reach into the millions of dollars. )

The Technical Compliance Officer has 3 things in mind when receiving your letter: 1) The federal courts are overloaded with cases; 2) The U. S. Attorney’s office is overloaded with cases; 3) Congressmen and Senators enacted legislation so they would have to deal with fewer constituents that had complaints about the IRS.

Here comes your credible threat to sue in the form of a letter in compliance with the statute. The Technical Compliance Officer reads down through it and asks himself, what would make more sense, have a lawsuit, or make the issue go away? The next thing you find is that the IRS releases the wage garnishment.

There is no perfect argument is to get every instance of an IRS wage garnishment removed. You will have to find some error or some mistake that the IRS made where they failed to follow the regulation or the statute; or, they wrongly interpreted the statute or the reg. You then take your arguments of why the wage garnishment is invalid, put them in the form of a notice of intent to sue, and you send it to the Technical Compliance Officer, the motivated target.

And if he wants to avoid the hassles of a law suit, then he’s going to figure out a reason to call up the IRS agents that are hassling you, and tell them, leave this person alone because they’re threatening to sue and we don’t need any more lawsuits.

To have your IRS wage garnishment released, simply analyze your own case. Compare what the IRS did on your case with the statute and the regulation, and see where they have made errors. They can hardly ever get it right.

Your letter may get the IRS to release the garnishment of your wages. It may not. Your other option is to file suit. Once your suit is filed, it is no longer a possible hassle for the IRS, it is guaranteed. They will have even more reason to negotiate.

Or maybe you’ll be one of these people that just really gets diligent and you’ll take it all the way to trial. Maybe it’s there that they’ll just give you damages for everything they have done to you, and not only will your wage garnishment be released, but the IRS may have to return property that was taken from you.

There is no doubt that filing chapter 13 bankruptcy will effect your mortgage, but the question is what will it do? When you file, it will remain on your credit report for up to ten years. During that time, every time that you apply for any credit, from a home mortgage to a car loan to a simple credit card, the lender will see this on your credit report and will then need to decide if in fact they should give you credit. In many cases, the answer will be no. When it comes to purchasing a home, this large commitment may be that much harder to get.

Options For Individuals

But, there are options for many people who are in chapter 13 bankruptcy or have found themselves with the ability to pay for a mortgage but have this black mark on their credit history. Buying home when you are in this situation will be tricky. Here are some tips to help you through.

· There are lenders willing to work with individuals who are capable of paying their mortgage on time. Although you have this black mark on your history, some lenders will still work with you if you have a good history of steady income. Unlike a credit card, people are often more aware that they need to pay their home payments before anything else because it only takes one behind payment to get into foreclosure. Lenders realize this and some will offer payments to individuals in this situation.

· Do anything and everything you can to build your credit history. Yes, you have bankruptcy on it, but you still need to insure that you are a good risk. One way to do this is to make your payments on time. This is very important to lenders. If you have a car payment, make sure that you pay it on time every month. The same goes with any credit cards you may have.

· Work on your credit score. To improve your credit score, you’ll need to work hard. Pay off as many of the debts that you still have because this will improve your credit to debt ratio, a big number for lenders. Another thing that you can consider is getting a credit card. Now, you will find that these are very costly, but having just one that you pay off completely every month can really help you to re-establish your credit worthiness. Relief will then come in from lenders who see that you have pulled yourself together again.

Refinancing

What about getting refinancing mortgage while in chapter 13 ? This is often a difficult thing as well. For many individuals, refinancing is just what they need. Here’s why. Refinancing re-starts your loan so to speak. So, if you have been paying on it for five years, it will lengthen the loan back to the original number of years but in turn, the payments for your mortgage are lowered. This can really make a huge difference for individuals who need the money monthly. You’ll find that lenders in NH and various other locations do just this for you. There are many companies willing to work with those who are in chapter 13 bankruptcy.

Corporations that get into deep financial trouble have the option of filing for Chapter 11 bankruptcy protection. This is basically the process of the courts ordering the company’s creditors to cease their pursuit of monies extended to the business in the form of credit.
This often happens because the company’s finances get mismanaged and the debt piles up until it becomes too overwhelming to repay. As a result, the court appoints a trustee to oversee the company’s debts and assets in order to help repay the creditors in a timely and efficient manner.
Corporate bankruptcy involves much of the same process that personal bankruptcy does. The main difference, however, is that creditors can force a business into Chapter 11 bankruptcy because it ensures that the court will take control of the finances.
When this happens, the creditors have a better chance of being repaid by the business. This type of business bankruptcy often allows the company to continue generating revenue for the creditors while the business gets its finances and assets in order.
When a business files for corporate bankruptcy in which its debts are greater than its assets, the stockholders receive nothing after the bankruptcy is completed. Essentially, they lose all rights that they had to the company and its assets. As a result, the creditors take control of the company in order to help it retrieve the monetary losses incurred by extending credit to it. This is also done to help save the jobs that the corporation provides and to help retain the profit-making capabilities of the business.
Although it is a good idea for a failing business, bankruptcy has many critics who feel that it is harmful to allow corporations to file for the court’s protection from its creditors. Many critics say that it is unfair for a company to continue to operate once it has filed for bankruptcy. The reason is that the company can cease paying its debts and use that money for improving the business.
As a result, the company has an advantage over its competitors because it has more money to unduly put into acquiring more customers, planning better products, and much more. Others say that Chapter 11 bankruptcy only perpetuates the problem of bad financial management in the upper tiers of the corporation’s executives. Filing for bankruptcy protection only adds to this problem by maintaining the practice of bad financial management.
The reasons for Chapter 11 bankruptcy vary among the different corporations in need of the services that it provides. Whether or not it is good for the economy, it is still a practice that does not go unused. This is proven by recent occurrences, such as K-Mart and WorldCom, in which major corporations filed for business bankruptcy protection in order to have their debts reorganized while remaining in business and creating revenue.
While it may provide unfair advantages and a continuing practice of financial mismanagement, it is sometimes a necessary method to save some corporations from a complete shutdown.

There is no doubt that it is entirely possible for you to work on your own with the bank to come to a mutually amicable solution to your foreclosure problem, but you must also keep in mind that time is of the essence in dealing with loan modifications.   While you are trying to deal with the lender or servicer precious time is slipping away.   Most lenders and servicers continue on with the foreclosure process while you negotiate a modification or other alternative.  Your denial of a modification may not occur until the day before the foreclosure sale.   And if you do receive a modification offer, the offer might be unfair or possibly contingent on you giving up important rights.   There are no hard and fast rules on what lenders and servicers are willing to do, so it would be very helpful to have a skilled attorney represent you and present your situation in the best light possible. An attorney can review your financial information and help you devise a strategy to reach your end goal whether it be to modify your loan to a fixed or lower rate, add back payments to the principal, temporarily reduce payments, or just to help give you enough time to sell your home or negotiate a short sale, deed in lieu, or other alternative. An attorney can also review your loans and servicer/lenders’ actions to see if there are any violations of HOEPA, RESPA, Reg B, the Fair Debt Collections  Act,  the Fair Credit Reporting Act,  acts regarding subprime loans, predatory lending acts or any of the other consumer/borrower protections found in North Carolina and/or Federal law.   There are many rules and regulations out there that protect borrowers and consumers that you may be able to take advantage of.   Additionally, an attorney often has contacts in Loss Mitigation, Short Sale, and other departments within servicers and lenders which can increase the efficiency of you loan modification review and so that you don’t have to spend your valuable time on hold with servicer or lender departments just to have your modification paperwork lost or to be juggled from one department to another. An attorney can make these calls, negotiate your position, propose many alternatives, advise you at each juncture and keep you updated throughout the process instead of you spending large amounts of time in limbo wondering if you are doing everything possible and whether you have explored every option to reach your goal whatever that may be.   You may only have one shot at a loan modification or other alternative and by employing the services of an attorney you can feel assured that all possibilities and avenues have been explored.   For more information on loan modifications and other foreclosure alternatives, please visit:  http://zellersrudd. com/areas_of_practice/charlotte_foreclosure_alternatives. aspx 

Before you file bankruptcy, it is a good idea to look into other alternatives if at all possible. New bankruptcy laws make it more difficult to file than it used to be.

Why Has Filing For Bankruptcy Doubled?

From the period of 1994 to 2004, filing for bankruptcy has doubled. Bankruptcy filing has spun out of control with consumers being targeted with easy credit. This has become a major cause for bankruptcy cases.

New Bankruptcy Laws?

There is now a new law for bankruptcy that was passed called the “Bankruptcy Abuse Prevention and Consumer Protection Act”. People struggling to pay their credit debts are now going to have to deal with this new bankruptcy law.

Bankruptcy Can Stay On Your Credit Report For 10 Years

Filing for bankruptcy can be on your credit for up to a decade. It’s a good idea to look into alternatives for bankruptcy. Buying anything on credit can be a real challenge for many years after you file bankruptcy.

Alternatives To Filing Bankruptcy

Contacting creditors is an alternative to bankruptcy. Instead of filing for bankruptcy, you work out payment options with your creditors. In many cases they are very willing to work with you. It’s to their advantage to keep you as a customer. The creditors know the alternatives for bankruptcy will bring them more profits if you don’t file for bankruptcy.

Getting a debt consolidation loan is a good alternative for bankruptcy. Financial services can combine all your debts into one loan payment every month. A consolidation loan as an alternative for bankruptcy, can help pay off debts. For bankruptcy consolidation loans, you can shop online for the best terms and rates. Lenders are very competitive to earn your business online.

You may also consider a debt workout for bankruptcy alternatives. With a debt workout, an attorney contacts your creditors and makes arrangements. In most cases the monthly payments will be less than if the credit account was settled in full. For some cases they want the payment in full, but over a longer period of time than originally stated on the credit agreement.

Bankruptcy alternatives are a good idea to consider, before you rush off to file for bankruptcy. If you look into some of these alternatives, at least you will know you tried your best to avoid bankruptcy. Having bankruptcy on your credit report for 10 years can be a long time.

How To Find A Bankruptcy Lawyer?

If you have decided there is no alternative to filing bankrupty,you may be asking yourself, “how do I find a good bankruptcy lawyer? The best way to find a good bankruptcy lawyer is through referrals. Family members and friends who filed bankruptcy in the past can refer you to a good bankruptcy lawyer. The yellow pages in a phone book is another great place to find reputable bankruptcy lawyers. Another invaluable place to find a good bankruptcy lawyer and services in on the Internet. When you search for a lawyer, try to find a lawyer that deals with your type of bankruptcy. You can get free advice with the first meeting.

Is The Law Firms Bankruptcy Lawyer Experienced?

Find out if your type of bankruptcy case is right for the law firms lawyer. Has the bankruptcy lawyer handled similar cases in the past? Take time to look over the alternatives to bankruptcy with your lawyer. There may be a way out of bankruptcy. A good bankruptcy lawyer can give you free advice on what chapter bankruptcy you should file. Bankruptcy lawyers will have you fill out a bankruptcy evaluation to see what is right for your debt and financial situation. To save yourself from wasted time and frustration, discuss in detail, options available to you with your bankruptcy lawyer.

What Information Will I Need For A Bankruptcy Lawyer?

With your first visit, it’s important to bring everything you can on the first consultation. You will need a list of all the creditors and how much you owe for your bankruptcy lawyer to consider. This includes any insurance, medical bills, auto loans, taxes, student loans and any personal loans. Your bankruptcy lawyer can give you the advice you need with this important information. This will make the filing process easier if you do decide to file bankruptcy.