U.S. legislation directs all bankruptcy cases under the Bankruptcy Code utilizing aspects of bankruptcy related to procedures maintained in line with Bankruptcy Rules; however, individual judicial districts often have their very own local regulations. It is actually worth noting there presently exists at the least ninety varied judicial districts, potentially several in some states, as a result there is unique procedures particular to the...more
We all plan many things on the debt and then slowly clear them. This type of debt is always needed and good for the common man. The problem with the loan is when we do not plan about repaying it. The credit card is mostly used for shopping and the creditors will always give you some offers. These offers are very tempting and we buy things which are not useful for us in present. The economy is under recession and we all are facing...more
Bankruptcy has always been linked with negative things. After all, different media portals have always been downplaying this credit-busting option. But is bankruptcy really that bad?In truth, when done for the right reasons, bankruptcy can actually be advantageous. It can work wonders in reliving anxiety of consumers over their financial problems. But how is this possible? And what benefits can consumers enjoy once they have filed for bankruptcy? Below we have provided the answers to these questions.Benefits of BankruptcyOnce your application for bankruptcy has been approved, you can immediately experience the following benefits:1. Discharge most, if not all, of your debts. Bankruptcy can actually free you from all your exiting credit accounts. The reason for this is that bankruptcy terminates your obligation to payback whatever amount of money you owe your creditors. This means that once you have filed for bankruptcy you won't need to make payments for some of your secured credit accounts, personal loans and even your existing credit card debts. Still, you have to remember that bankruptcy does not terminate all you financial obligations. You are still liable to settle...more
Deciding to file for bankruptcy is never an easy choice to make. You must first weigh the pros and cons, and determine what type of bankruptcy you can file.There are two major ways to file bankruptcy and you should know that it is not an easy process. You can do it on your own if you understand the laws and the two different types of...more
If the last time you looked at bankruptcy law was more than a few years ago, you might want to make sure that you know about the changes Congress enacted with the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.Some of the most important recent changes in bankruptcy law include the following:Stricter Chapter 7...more
Due to high unemployment and an uncertain economic climate, consumer bankruptcy filings in America have increased in 2010.According to statistics reported by the American Bankruptcy Institute, a total of 137,698 Chapter 13 bankruptcy and Chapter 7 bankruptcy cases were filed in the month of July 2010. This represents a 9% increase over July 2009. It is expected that more than 1.6 million bankruptcy cases will be filed in 2010, and bankruptcy filings may continue to rise in 2011.What do these statistics mean? Well for one thing, it appears the economic recovery has a long way to go. In many bankruptcy cases, clients decide to walk away from their mortgage obligations. This increases the inventory of available houses and exacerbates an already depressed real estate market.Why is this important? In past recoveries, the real estate market and consumer spending lead the way to recovery. These market forces are not present in today's economy. The National Association of Realtors reported that home sales were down by $25.5% in July 2010. The latest statistics from the Federal Reserve indicate that consumers reduced their credit card debt by $4.5 billion in June 2010. There...more
Credit card debt continues to be one of the biggest problems facing the American public. Lending standards over the past decade have been downright irresponsible and now consumers are left searching for credit card debt relief options....more
In some instances, personal income tax liabilities may be wiped out by filing Chapter 7 bankruptcy. Bankruptcy code section 11 U.S.C. 507 (a)(8)(A) deals with eliminating income taxes. It reads as follows:(8) Eighth, allowed unsecured...more
It seems many people are a little confused as to the nature of their home mortgage after they file or have gone through a bankruptcy. Many people still want to know if they apply for a loan modification after bankruptcy to help aid...more
If you've fallen into hard times financially and feel like you're drowning in debt, you've probably considered bankruptcy as a solution. If you aren't sure and don't understand the complexities of the law, a bankruptcy attorney can...more
How long will it take to re-establish credit after bankruptcy? This is a question I receive by email often so I decided to make it the topic of our weekly article.The consumer reporting act states that the bankruptcy will be completely...more
Chap 13 presents individuals a number of advantages over liquidation under Chap 7. Perhaps most markedly, chapter 13 bankruptcy presents people the opportunity to protect their homes from foreclosure. By filing under this chapter, men and women can...more