Bankruptcy in the United States come under the Chapter 11 and Chapter 7 with the United States Bankruptcy Court presented with the authority to declare an entity as bankrupt. It emerges when a business entity is unable to meet the amount due from them to the creditors or where the net assets are negative. Neither the amount of cash reserves with the company nor the sale of a few assets can offer respite from the burden of debt. Typically, the...more
However, if the monthly income exceeds the basic living expenses, debt settlement can help resolve ones financial crisis. Settlement is the better option then. One should determine if one can pay their debts with their current income. If the income does not exceed the housing expenses, utilities, gas, groceries, and basic financial needs for the month, debt settlement is not a viable solution. Bankruptcy is the viable option then.There are number...more
Nothing good is to be gained by declaring bankruptcy. You may be of the opinion that bankruptcy will help you overcome all your debt problems. However, your problems will just begin. Remember that one thing that is more important than your income today is your credibility.You may be earning $25,000 per month and this may be enough to take care of all your expenses - essential and luxurious. However, you cannot buy a million dollar house with $25,000 per month salary, can you? You will have to save money for many years if you even want to make the down payment.This is where credit and credibility enters the picture. If you have good credibility, you can easily walk into lender's office and seek a million dollar loan. You can repay the loan over a period of 20 years. Sounds great?Well, you can kiss all such dreams goodbye if you opt for bankruptcy. For the next 10 years, you will have no option but to live in a leased house and drive a leased automobile. You will have to beg credit card issuers to issue a credit card. You will be forced to make use of prepaid credit cards all the time.All this may have been unavoidable in the earlier recession. However, what is the point of...more
A consumer filing Chapter 7 bankruptcy is entitled to certain exemptions in order to allow them to retain assets required for a fresh start after bankruptcy. The idea is, a consumer would not be able to live their normal life and rehabilitate their financial situation without certain items, such as a car (to get to work), household items,...more
There are different types of bankruptcy protection designated by the US. Bankruptcy Code under which a debtor may file. Each type of bankruptcy is named for the chapter it can be found under in the Bankruptcy Code. When a person says that they are filing for Chapter 7, they are really saying that they are filing for bankruptcy under the laws of...more
Bankruptcy Vs Debt Consolidation - Which Is Right For You? Finances can sometimes dwindle and most of the time we are left with no choice but to either file for bankruptcy or resort to debt consolidation but between the two which among these can be considered as a better way to go? As much as possible, we want to avoid bankruptcy. The smarter choice would be to go first through debt consolidation. This is actually paying less than the amount that you use to owe. Bankruptcy has different operations to follow first and it may also not be that easy to get one. There are certain qualifications that you need to be considered before you can get this kind of service. Debt consolidation is a far better way to go.When you file for bankruptcy, your credit score is greatly affected. This may also affect future application since the basis for most approved applications is to have a good credit score. When you apply for debt consolidation, this gives you the opportunity to consolidate your loans and arrive at an amount that you think will be good enough for you to get. Through this means, it will be easier as well for you to check and what other options you can get so as to provide...more
Simultaneous lawsuits: aspect of filing divorce and bankruptcy together USA is not immune to the recession related effects plaguing its own society like many other nations around the world. Recession is even delaying the decision to divorce....more
New Bankruptcy Laws: Are These Good or Bad? Yes although the B word is avoided like the plague but it is when you find yourself almost drowned in debt then you need the bankruptcy help to fall upon.Seeking Massachusetts bankruptcy info has...more
When a company or individual declares themselves bankrupt, they will require the services of an insolvency practitioner in order for the process to be completed properly. In order to offer services for companies and individuals facing bankruptcy, an...more
Everyone in their life faces a tough financial situation over which one does not have any control. In today's world our financial transactions and our life are very much dependent on Credit & Loans.We all have some or the other form of Credit on our...more
Good times and bad times come in turns in everyone's life. We never stop and we are in a constant quest towards this journey called Life. Especially during a recession, our hopes get fonder and fonder. Many businesses close down and there are...more
7 Factors to Determine if You Should File For Bankruptcy During difficult economic times, many of us review our finances and find that there is not enough money to cover all of the expenses we have. Paying for rent, shopping for groceries, and...more