Quick Guide to Bankruptcy Advice

When you claim bankruptcy, all of your assets can be used to pay back some of the debts owed to your creditors. These assets include your possessions, home, income and more. Once this has been done, you will have to agree to certain restrictions and there will be an investigation of your financial affairs. Because of this, bankruptcy really should be a last resort when you find yourself in financial trouble. Here is a quick guide to answer your questions about bankruptcy.

Seek Advice
There are plenty of free online resources and guides to help you get the advice you need. You may also consider joining finance forums and chat to people who are in similar situations. You may find some options other than bankruptcy out there that will suit your needs, so doing a bit of research is the best first step.

How to Apply
Once you have decided that bankruptcy is the best choice for you, you will need to apply with the court. Anyone can apply for bankruptcy, including individuals, sole traders and members of a partnership. You will need to make yourself bankrupt by petitioning the court. Not all courts deal with bankruptcy cases, so make sure you find one that does. The other way to go bankrupt is if your creditors have petitioned the court on your behalf and the court has then issued a bankruptcy order against you.

Managing Bankruptcy
Once your bankruptcy has gone through, your case will be overseen by a “trustee.” This person is responsible for handling and managing your assets of value to be used for repaying the creditors. The trustee is either an insolvency practitioner (an authorised debt specialist) or an Official Receiver (an officer of the bankruptcy court).

Your Responsibilities
With bankruptcy comes certain responsibilities and restrictions on your behalf. These include co-operating fully with your trustee, handing over bank and credit card details and not making payments to your creditors (known as the non-payment rule). The non-payment rule does not include items not listed in the bankruptcy order.

How Bankruptcy Will Affect You
In certain industries you may lose your job if you have gone bankrupt. You will also lose assets of value and might lose the financial interest in your house. If you have any spare income, that will usually go towards paying off your debt. You also won’t have the ability to get credit and your bank will freeze any accounts you hold without letting you open new ones.

How Long Bankruptcy Lasts
Most bankruptcy cases last around 12 months. After that time you will be discharged from your bankruptcy debts. Sometimes the bankruptcy will be completed sooner if the trustee has finished their work on the bankruptcy case as long as the creditors don’t object. The case can also be delayed in the event that you do not co-operate with your trustee.

What You Must Know Now About Filing Bankruptcy

Filing bankruptcy is one of the many options that you have when it comes to eliminating debt. However, is it really the best option? There are many options to consider when you have become overwhelmed by debt, but bankruptcy should be the very last resort, after you have tried everything else. This article is going to give you the low down on bankruptcy, giving you the opportunity to form your own opinions and decisions.

A few years ago, filing bankruptcy was very easy. In fact, it was something you could do yourself. However, with the new laws involving filing bankruptcy within the United States, it is definitely not something that you could do yourself; now you would need a lawyer. The process is so complex and involved that it could be easy to forget a step. Forgetting a step could set the process back to the very beginning and require starting all over again, potentially delaying your filing by many months or longer.

At the same time, if you tried to do it yourself when filing bankruptcy, you may not know about some elements of the law that an attorney would know about. Therefore, you might actually put yourself in a worse spot, owing more money, and even losing more property or assets than you should in the first place. An attorney could help you save money, yes even when you have to pay for the attorney fees. Studies have shown that the vast majority of people save much more than they paid out in attorney’s fees when it is all done.

There are many new laws that make filing bankruptcy tough and perhaps not for everyone. Before you make a decision as to rather or not this is something that you should do, make sure you talk with a lawyer, explain your situation, meet with them to go over what might happen if you do file for bankruptcy, and then make your decision.

For instance, which chapter will a judge approve you to file. It no longer matters what chapter you want to file, it matters what the judge thinks. You will have to fill out paper work and go through assessments so that the judge can determine which chapter you fit under based on your debt, income, and other elements.

You will also need to make sure that you go through credit counseling before your file for bankruptcy. This is now a legal requirement for anyone who is considering filing bankruptcy, despite the fact that most people who file bankruptcy do not do so because of financial mismanagement. The courts approve specific companies that are suitable for meeting these requirements. However, the only real way to make sure you get to the right people and those that the courts will accept is to talk with your attorney.

A qualified and experienced bankruptcy lawyer knows the process and can help guide you through it easily. He can point you in the right direction for credit counseling, he can help you determine which chapter you will likely have to file under, and he knows just what debts can and which debts cannot be filed under bankruptcy. For example, federal loans, child support, and other government related debts will not be discharged when filing bankruptcy. He can also advise you of options that may exist for your particular circumstances, where personal bankruptcy may not be your best option.

A Bankruptcy Strategy Guide

If you’ve exhausted every alternative to filing for bankruptcy, and believe that’s it’s your only logical choice in making a fresh start in your life, then you must do what you need to do. Be sure to do your due diligence in learning everything you can about the entire process, now that you believe there’s no other recourse is available to you. Make sure you take into account that a bankruptcy filing will indeed negatively impact your credit score and rating with the three major credit bureaus.

Hopefully you’ve spoken to a bankruptcy attorney (many of them offer a free one-on-one counseling session to first-time clients) or some other financial advisor, and after informing that individual of your plight, (s)he agrees with your decision to file and feels it’s the best course of action for you.

At what point does a person realize declaring bankruptcy is their only way out of their financial nightmare? While everyone’s situation is different, there are a few signs that point to the “writing on the wall” such as, constantly borrowing money from one credit card in an attempt to pay off another credit card and/or taking cash out advances of more than $500 just to pay living expenses such as groceries and utility bills. These are ominous signs that a person is headed for trouble.

Another sign of impending doom is when you cease answering your phone calls, because most of them are from creditors harassing you about your credit card debt. Are they threatening to sue you? Unfortunately there are no laws that regulate the collection agency industry, and some of them can be quite nasty in their attempts to force you to pay what you owe. Have they begun to take any kind of legal action against you?

Before you can adequately deal with these harassing creditors, you have to know how to fight them. Happily there are numerous resources available to you both online and off, that you can utilize in beating them at their own game. Knowing this information will certainly help you sleep better at night. The next time you receive a call from a creditor harassing you about your credit card debt, simply tell this individual you see no feasible way to repay your debt, and you’ve initiated the bankruptcy process.

The word “bankruptcy” is like poison to a creditor because once you receive your discharge, you can simply make copies of it and dispatch it to all the creditors you owe. The bankruptcy court should perform this function for you as well, as part of your payment in filing. At that point, your creditors should avoid you like the plague. This is of course, contingent upon the type of debts you owed. I refer you to another article I wrote entitled, “Are You Making The Right Decision In Filing For Bankruptcy?”

In that article, I list nine types of debts that you’ll still owe even after you’ve filed for bankruptcy. These specific debts will remain intact, after your filing, as if you never declared bankruptcy in the first place. On the other hand, I also list in that article 6 types of debts a bankruptcy filing will completely eliminate. You might want to read that article at your earliest convenience to see if the type of debt you owe is (or isn’t) one that can be discharged. If you owe debts that can’t be discharged by filing for bankruptcy, your creditors can still come after you just as they did before you filed.

If you’re not sure whether you should file a Chapter 7 or Chapter 13 bankruptcy, it’s a clear sign that you haven’t properly research what type of filing would best for your particular set of circumstances. There are numerous resources available to you on the internet, or at your local library, as well as financial advisors and attorneys you can speak with, that can inform you about which option would be most appropriate for you. Don’t concern yourself with a Chapter 11 bankruptcy because that only applies to businesses and/or corporations.

The most common type of bankruptcy people file is a Chapter 7 or Chapter 13. A Chapter 7 filing will eliminate most of your debts, and gives you an immediate fresh start, depending upon the type of debts they were. A Chapter 13 filing allows you to continue making payments to your creditors for another 3 to 5 years.