Financial crisis, when at the worst level, may compel a debtor to resort to petition for bankruptcy. But then, not anybody can be granted relief under the bankruptcy law. There are conditions that will pre-qualify you to this debt reorganization. Generally, the two most sought form of bankruptcy petition will be under Chapter 7 (liquidation or straight bankruptcy and Chapter 13 (reorganization). The other two are under Chapter 11 and Chapter 12...more
Yes your friend has told you right that Filing for Bankruptcy is a harrowing task and especially when there is a huge amount of debt.A per the bankruptcy laws,it is a particular situation where a company or the individual fails to meet the financial requirement.In a word,new bankruptcy law is basically a formal request to the federal court for relief from your growing debts by restructuring your debt amount. However,before knowing how to file for...more
Why would anyone opt to file for bankruptcy? It is a last resort for entities that are unable to repay their debts because of difficult circumstances. It is not a way to escape debts the US court would only accept your bankruptcy filing if you have genuine reason for not being able to pay back your debts. You need a proficient bankruptcy attorney practicing in your city, i.e. Chicago, to deal with the filing and subsequent procedure. Before you talk to an attorney, here are the types of bankruptcy filings you can opt for under the Federal Bankruptcy Code.Chapter 7 Known as "liquidation", this process involves repayment of debts after the court-appointed trustee sells off the debtors assets (non-exempt only). However, before the repayment, court costs require to be cleared. Chapter 9 This plan helps to adjust the debts of a municipality (towns, cities, villages, etc) that suffers from financial problems. The strategies in use include extension of debt maturities, obtaining a new loan to refinance and reduction of principal/interest amount. Chapter 11 Specially designed for partnerships and corporations, this bankruptcy is complex in nature. This type of bankruptcy gives the...more
Even though the recession has been going on for a few years now, the foreclosure rate in some cities is actually at its highest in record. In one of the cities that has been hit the hardest, how many homes were foreclosed in August, 2010?2,297.This is the highest number of foreclosures in a month in the history of this city. What is the reason? Why...more
If you are in the position of making an appointment with a bankruptcy lawyer, you are ready to make some difficult decisions. Over the next coming weeks and months much of your personal information is going to come to light as a search ensues for all of your assets as well as debts that you owe. In this type of situation you need to find the right...more
A few years ago you could buy a house that was worth a lot more than you could afford to comfortably pay for. Some people figured why not, with decent interest rates and even loans that extended up to 40 years, the payments really seemed reasonable. But then maybe you got laid off or fired, then things all of a sudden changed. Many got used to a more comfortable lifestyle and even had lots of credit card debt on top of this. But now they are in a position where they owe a lot more each month than they can afford to pay. This unfortunate situation can happen to anyone at any time, and if it does you can believe that all your creditors will be waiting in life to take big bites out of you.I'd like to go over some misconceptions people feel when they are considering filing for bankruptcy. One of the biggest is that they will be on the streets with nothing at all. This varies for each state but in the state of California if you earn under $45,000 per year you are eligible to file for bankruptcy. This means you can still file and get rid of all your debt and still be fairly comfortable. Also many people don't know this but you are allowed to keep one dwelling and one car. Bankruptcy is a...more
Many Canadian taxpayers who fail to file a tax return for a year or two become afraid to file their tax returns because of the financial consequences that will follow.They know that once they file their returns and declare their income, the CRA is...more
Most people usually intend to pay back loans when they originally sign a contract. But sometimes things dont always go as planned and you might find yourself in a precarious financial position, unable to meet your monthly obligations. Depending on...more
In October, 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act became law. With only a few exceptions, consumers filing for bankruptcy protection must receive a bankruptcy counseling certificate from an approved provider of the United...more
With the recent stresses and strains on the economy it is perhaps no surprise that more people than ever have found themselves going online and entering the keywords bankruptcy Toronto. If you are facing financial difficulty it is very important to...more
Contrary to the belief of some people, filing for bankruptcy is not a simple process. Moreover, claiming bankruptcy could be hard on you emotionally and mentally.You can talk to the lenders, whoever they are and request for a debt workout program....more
Many of you may think that there is no life after insolvency. You might be of the idea that bankruptcy filing may signify the end of the road for you. However, you may still be able to rebuild your life and perhaps emerge even better financially than...more