People arrive at bankruptcy for numerous reasons, such as poor spending habits, loss of income, and medical expenses, to name a few. But whether bankruptcy is a positive process or a negative one depends on two factors: the debtor’s perspective on what bankruptcy accomplishes, and the quality of legal counsel received during the bankruptcy process.
The Perspective of Bankruptcy
Concerning the first factor, bankruptcy is equally viewed as something that destroys financial freedom and something that gradually restores it. Debtors who take the former perspective are likelier to avoid bankruptcy for as long as possible, often incurring more debt that further complicates their eventual bankruptcy. Concerning the second factor, debtors who retain quality legal counsel are likelier to experience bankruptcy as a process that, although stressful, is a step toward financial freedom, not the loss of it.
When your life is being dictated by debt you are unable to pay, claiming bankruptcy can dissolve some, if not all, of your debt. Bankruptcy can dissolve monetary obligations associated with credit and medical debt. Yet, it can’t dissolve debts involving: college and/or educational loans, mortgages, charges fined by the court, alimony, child support, and civil debts associated with court rulings. For additional information concerning Pennsylvania bankruptcy laws, consult with a Philadelphia bankruptcy attorney.
Comparing Chapter 7 Bankruptcy to Chapter 13
When you declare personal bankruptcy in Pennsylvania, you have two options: Chapter 7 bankruptcy, or chapter 13. Below, we give a basic summation of each type to inform you of your options under Pennsylvania bankruptcy. For more detailed information, contact a Philadelphia bankruptcy attorney.
1. Claiming Chapter 7
When people think of bankruptcy they are probably referring to Chapter 7 bankruptcy, which utilizes the liquidation process to turn non-exempt assets into cash in order to pay off debts. In declaring Chapter 7, a trustee assigned by the court will help liquidate your assets and allocate them to creditors who then, work to dissolve your debts. This type of bankruptcy is perfect for debtors who are in a predicament where it would be impossible for them to pay down their debts even if given more time and a new payment plan.
2. Chapter 13
Unlike Chapter 7, Chapter 13 does not involve liquidation of assets. Instead, the debtor pays on his or her debts under more affordable pay arrangements for a period of time (usually 3-5 years), after which the debts are dissolved. Chapter 13 is ideal for debtors that have enough income to pay on their debts over the aforementioned period of time. In Debtors whose income exceeds their state’s median household income are usually required to file for chapter 13.
To learn more about hiring a Philadelphia bankruptcy attorney, visit the website of Reinherz & Reinherz.
Many people think that they want to practice a career that involves the law. It is important to look at the full range of legal professions that are available and learn more about what it will take to qualify for these professions. Here is a look at some of the legal careers available and information on the education needed to pursue them.
Working as a lawyer is something that many people aspire to. It involves a lengthy education and a legal student must first attend post secondary school and then pass a bar exam in order to be able to practice in a particular geographic area. Some areas of the legal system that someone may focus on include property issues, estates and wills, and even environmental topics.
For individuals who like the idea of working in the legal field but who do not want to spend an extended period of time in school, there is the paralegal career. A paralegal will work as an assistant to an attorney and help with tasks such as preparing documents, filing papers and performing research. Depending on their legal specialization their tasks may include more than that but it will depend on the attorney that a paralegal is working with to determine what those duties will be. They are still required to obtain special training although this is usually at a community college rather than a university.
Attorneys are not the only legal professionals who are working in a courtroom. One of the most lucrative jobs is that of a court reporter. People employed in this position are also known as court stenographers. Having accurate records of court proceedings, depositions and speeches is essential to the legal process. Attending a community college can help a person get the educational background needed to work in this profession.
For someone who needs a more active job, working as a police officer may be just what they have been looking for. Legal enforcement can be fun, exciting and rewarding. If, however, working as a police officer does not interest someone they may be more inclined to pursue a career as a crime scene investigator. This can mean many years of taking science courses at a post secondary level but it is definitely worth looking into for many people.
There are many different legal careers available. If someone is interested in possibly being employed in one of these careers doing more research can be the best way to tell which one career would suit them best. They can then find out which schools offer the education they will need to be employed in, and succeed at, their chosen career.
No one wants to file bankruptcy. Sometimes it’s the best decision. Many times it’s the ONLY decision. It is crucial that you contact a experienced and knowledgeable Phoenix bankruptcy attorney who specializes in Phoenix Bankruptcy Attorney. We Will Earn Your Trust!
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is distinct from Chapter 7 in a number of ways. Instead of personal debt being wiped away completely, an individual can pay off all or a part of his / her debt under the oversight and protection of the bankruptcy court. With Chapter 13, in the event the court grants your strategy for the repayment of the debt, the majority of lenders are banned from collecting their claims from the debtor during the duration of the case. The debtor will need to come up with routine payments to somebody named the Chapter 13 trustee, who collects the income paid out by the debtor and distributes it to creditors in the manner layed out in the bankruptcy plan. After the conclusion of the obligations required in the bankruptcy plan, the debtor is released from legal responsibility for the rest of their dischargeable debts.
What follows are a few explanations to file for Chapter 13 bankruptcy as opposed to Chapter 7.
You have a co-debtor with a individual debt. If you file for Chapter 7 bankruptcy, the co-debtor will still be responsible – and the lender will unquestionably go after the co-debtor for repayment. If you file for Chapter 13 bankruptcy, the collector will leave the co-debtor alone, so long as you maintain with your Chapter 13 bankruptcy plan installments.
You are over due on a mortgage or vehicle loan, and really want to make up the skipped payments over time and reinstate the original agreement. You cannot do this in Chapter 7 personal bankruptcy. You are able to make up skipped payments only in Chapter 13 individual bankruptcy.
When you have gotten a Chapter 7 personal bankruptcy release during the past eight years, or a Chapter 13 release inside of the last 6 years, one can not file for Chapter 7 bankruptcy.
You have a tax requirement, education loan, or other obligations that can not be wiped away in Chapter 7. You may include these financial obligations in your Chapter 13 program and pay them down over time.
You possess nonexempt assets that you need to keep. When you file for Chapter 7 bankruptcy, you get to retain only exempt assets – property that is shielded from creditors under state or federal law. You will have to give your nonexempt property to the bankruptcy trustee, who would be able to sell it off and deliver the earnings to your creditors.
In Chapter 13, you don’t have to give up any property. Rather, you pay off your debts out of your salary. Therefore, if you have nonexempt property that you don’t want to separate with, Chapter 13 may be the more applicable choice.
You have a true desire to repay your financial obligations, but you require the protection of the personal bankruptcy court to manage this step. This may be the scenario if debt collectors are coming after you, or if you simply just need the conventional structure and due dates the Chapter 13 course of action offers as a way to follow through on your good intentions.
If you have debt problems in Michigan, talking with a local Detroit chapter 7 attorney makes a lot of sense. You will have a lot of questions that need answers. An experienced Detroit chapter 7 attorney can help you get those questions answered.
Our assets are the best part of our financial equation but they are at risk of being taken away at every turn. These assets are referred to at times as “liability assets” for they tend to attract risks, the consequences of which you should be protected from with insurance.
If one of your liability assets such as your vehicle or home were to be involved in an incident where someone was hurt it would open you up to a lawsuit. The lawsuit would accuse your property (you) of being negligent and seek for a payout to the injured to cover damages.
Adopting asset protection like taking out liability insurance on your liability assets such as your home and car can help you cover these unwanted risks.
Alternatively when you are a small business owner you may find yourself responsible in the event that an employee were to have an accident while at work. No matter how safe your employees behave on the job there is always the chance an accident could occur. If you have not insured your business you would responsible for any payouts.
An on the job accident could be an employee who slips on some water on the floor or falls on the stairs.
You don’t want to find yourself responsible for paying damages with your personal finances. Liability insurance would protect you from that.
In addition to insuring your small business you can set the business up as an LLC (limited liability company) which helps to protect your personal assets in the event of an unforeseen accident.
Chapter 13 bankruptcy can actually help you keep your assets from being taken away. The more you know about the law the better you can be protected.
Under chapter 13, the procedure for foreclosure can be stopped, and payments of loans and mortgages can be rescheduled. Payments can be made over the 3-5-year period granted you by chapter 13. What’s more, these payments are lower than what you used to pay your creditors.
You can use chapter 13 bankruptcy as another method to insure your assets are safe.
Looking to find a qualified attorney, then visit www.changandcarlin.com to find the best advice on chapter 13 bankruptcy for you.
Bankruptcy protection From Bruce Baldinger LLC is becoming a common option for companies during volatile economies and recessions. It is often the only legal opportunity afforded to companies to allow permit restructuring and protection from creditors when in the red. This is one of the main benefits of bankruptcy protection from Bruce Baldinger LLC.
For companies that have invested in labor costs, start up fees, inventory, suppliers, and employees, declaring bankruptcy is not viable, especially if there is real potential to reorganize and become profitable. Bankruptcy protection provides businesses this opportunity: to restructure and pay back debts, without creditors immediately breathing down their backs.
Chapter 11 allows companies (corporations, sole proprietorship and partnership) to reconcile outstanding debt and restructure company organization to become profitable without risking immediate seizure of assets to reconcile debt. During bankruptcy protection, management may run daily operations, with major decisions requiring the approval of a bankruptcy court. During the bankruptcy protection period, the organization must come up with a restructuring plan that is acceptable to creditors. If it cannot, assets will be liquidated to pay off outstanding debts.
During bankruptcy protection, three outcomes are possible. A company can either successfully restructure and fully emerge from bankruptcy, be sold or have part of its assets sold, or fold and be liquidated entirely.
The Procedure
Filing a bankruptcy petition through a bankruptcy court halts debt collection and asset seizures that are in progress. A trustee is appointed to oversee the case. He or she also schedules the 341 meeting, which is a meeting with the creditors’ attorneys and the debtor. The 341 hearing is usually scheduled within 30 days of filing for protection. At the 341 meeting, the debtor’s lawyers must present the company’s restructuring plan and demonstrate how the creditors’ claims will be settled as the company becomes more profitable.
Creditors as well as shareholders (if there are any) must find the plan satisfactory. If the plan is accepted, creditors normally assume the management of the new company’s operation and become actively involved in running the new enterprise. This generally ensures that the new company will be more profitable and able to pay of outstanding debts.
Any deal that is agreed upon in the 341 meeting cancels out old contractual obligations between the two parties. The new organization repays creditors according to the new terms agreed upon in the meeting.
The decision to file bankruptcy protection from Bruce Baldinger LLC is a complex legal decision with enormous implications and requires professional and practical legal advice. A consultation with our bankruptcy attorneys can help shed more light on benefits of bankruptcy protection advantages as well as bankruptcy repercussions.
For more info and questions about Bankruptcy Protection and Bruce Baldinger LLC please visit the Bruce Baldinger LLC group at www.baldingerlaw.com
The Boston Bankruptcy Attorney Can Help you choose which to take when you file for bankruptcy. You can file for federal exemptions or state exemptions to help protect the equity in your home. This is a critical decision so you have to make sure you have all the facts.
It is your decision to make however. Your attorney can give you advice but your lawyer cannot make the decision for you. The exemptions also cover some pension and retirement plans. So understand you choices before you do your filing.
People file for bankruptcy for a lot of reasons. But the bottom line is that they have run out of money to pay their obligations. One common reason for this happening is that people needed to get medical care but they did not have the resources to cover the cost.
They may not have had insurance to cover the procedure or they had insurance but the policy did not pay all of the bill and they cannot make up the difference. This is a terrible shame that we have a system that forces people to seek legal protection in the courts to keep from losing their real and personal property because they cannot pay for their health care.
The cost of bankruptcy is high. It will prevent you from getting a loan or even credit for years to come. And if you do get approved you will pay a very high interest rate.
The issue of runaway health care costs have to be addressed. The health care system that is supposed to serve us is draining us dry. And many are going bankrupt because they cannot pay back the high cost of their medical care. Take a deep breath and realize that it will all be all right.
Filing for bankruptcy can be a stressful experience. Talking to a Stoneham bankruptcy attorney can be a great first step. A bankruptcy lawyer MA will help you decide the best path to take.
If you are overloaded with debt and can’t answer your phone because of collectors calling, then perhaps a bankruptcy case is a good option. Congress did not want our citizens to be overloaded with debt just because they’d made financial mistakes. As a result, Congress created the Bankruptcy System. It is designed to give good people a chance to re-set their financial lives.
As the economy worsens the number of bankruptcy filings is rising. The Los Angeles Times reported that in year 2009, there were around 1,446,000 Bankruptcy. In January 2010, there were 102,600 total bankruptcy filings and the number of people filing bankruptcy continues to grow. Experienced Bankruptcy Attorney Dan Scott says that there are 3 Myths aboutBankruptcy that should be dispelled.
Don’t Believe these 3 Myths about Bankruptcy.
Myth 1: Filing bankruptcy can be pricey. Of course when you file a bankruptcy case you will have to pay court costs a legal fee to your attorney’, and perhaps other miscellaneous fees. The cost will depend on your case or situation. However, when compared with the benefit you will receive (relief from owing all or most of your debts) the cost is minimal. You’ll hear some folks say that the money you spend for a bankruptcy likely could be used up bringing past-due accounts, or making the payment arrangements. However, the truth is that if you couldn’t make the payments in the past, it is unlikely you will be able to make them in the future.
Myth 2: You may lose your property in a bankruptcy: Obviously if you have a car or house that has a lien or mortgage, you’ve got to address that lien or mortgage in your bankruptcy case. Usually a deal can be structured inside your bankruptcy case where you can keep making the payments and keep the property. Bankruptcy Attorney Dan Scott, in his video series found at http://www.danwillhelp.com, reveals that in most circumstances you will be able to use your exemptions to keep property that is not encumbered by a lien. Exemptions are simply a procedure established by Congress to allow you to keep property in a bankruptcy case. Don’t think for a minute that you’ll be able to keep property on which a lien has been granted unless you can make the payments.
Myth 3: Not all your debt can be discharged. I hate it when this statement is made because it has “some” truth in it, but not much. Almost every unsecured loan, medical bill, credit card and pay day lender will be wiped out when you file a bankruptcy case. If you file a Chapter 13 case (For the difference between a Chapter 7 and a Chapter 13 check out the video at http://www.danwillhelp.com) you’ll pay payments over time that often clears all of your debt except your home mortgage. Certain specific debts will survive the bankruptcy, such as certain taxes, back child support, student loans, DUI fines or penalties, and claims arising from fraud. However in most circumstances all of your debt will be discharged.
So if you are facing financial trouble and you want to get out of debt though you have tried everything doable to get back on your feet, maybe it is time to consider filing a bankruptcy. You can find more information in the video series published by Bankruptcy Attorney Dan Scott. Go check them out for more information.
If you are drowning in debt it’s time to get straight talk from an experienced bankruptcy attorney. Check out the video series which is absolutely free. Take back the power away from your creditors today!
Filing for bankruptcy is an important and serious decision to make. Here are a few frequently asked questions when it comes to filing bankruptcy.
Will I stop getting harassed by creditors after I decide to file?
There is nothing quite and stressful and downright miserable as fending off creditors. They are relentless calling, leaving messages, sending emails, etc. By filing bankruptcy, you will be granted an automatic stay order. What an automatic stay order does is that it makes is illegal for a creditor to call you any longer. This is a nice side benefit of filing.
What is a debt discharge in bankruptcy?
After you file for Chapter 7 bankruptcy, a debt discharge enables you to get rid of all your prior debts that you owe. You will not have any outstanding debt liabilities. However, you must first qualify to be able to file for Chapter 7 bankruptcy. In order to find out if you qualify for Chapter 7 and to better educate yourself on your options, it is a good idea to talk with a bankruptcy law firm.
After I file for bankruptcy, will my credit be ruined?
Bankruptcy can be a great way to start fresh for someone that can no longer keep up with the debt and financial commitments they face. In many situations, individuals filing for bankruptcy have sub-par credit to begin with. Many of these same people will see their scores improve over time after filing.
It’s important to note that filing will affect your credit. In most cases, filing will stay on your credit report for at least ten years. Although, sometimes this time period is less. While on your report, the bankruptcy filing can negatively impact your credit. However, bankruptcy is a way to take back control, start anew, and begin rebuilding your credit. It is important to keep in mind that your situation is unique as is your credit history. The type of bankruptcy you file as well as where your credit currently is at all play a role.
You may be considering bankruptcy to resolve a hopeless financial situation, or to delay debt-collection for a period of time to allow for financial reorganization. Speaking with a bankruptcy attorney MA can help you get a fresh start. If you are considering filing bankruptcy in Massachusetts we can help.
So your credit cards are maxed out, you owe several creditors money, bills are piling up and you aren’t sure what to do. Bankruptcy is an option you are considering, but you don’t know much about filing for personal bankruptcy. It’s important you understand the two types of personal bankruptcy that exist.
An individual filing for bankruptcy will file either Chapter 7 or Chapter 13. Chapter 13 involves working out a payment plan with your creditors to pay back the debt you owe. In Chapter 7 bankruptcy, you will sell your property, that is not exempt, to pay back your creditors. After speaking with a bankruptcy attorney, you can decide which type will be the best for your situation.
Chapter 7 bankruptcy is also known as liquidation or a straight bankruptcy. Chapter 7 Bankruptcy is the most common form of bankruptcy accounting for almost two-thirds of all consumer filings. This is one of the faster ways for you to start fresh. The case usually lasts for only a few months after an attorney make the initial filing.
You should consider Chapter 7 bankruptcy if you are in a position to sell your nonexempt property and use the proceeds to pay your creditors. Of course, you want to make sure that you will have property left over after paying your debts to start fresh with a good foundation. Speaking with a bankruptcy attorney about this option is a great idea.
Chapter 13 will enable you to restructure your debt and work out a repayment plan to pay off the people you owe money to. This is an option for people who may make too much money to qualify for Chapter 7 bankruptcy. The repayment plan could reduce your interest and debts owed and usually requires repayment in a three to five year period.
If you are currently making money, but are not in a position to pay of your debt immediately, you should consider Chapter 13. Speaking with a bankruptcy lawyer will ensure you take the right path with your bankruptcy filing.
I hope that you have a better idea of what Chapter 13 and Chapter 7 bankruptcy is. Continue your research and connect with a MA bankruptcy lawyer to make sure you make the right decision for your future.
When you are facing the prospect of bankruptcy, educating yourself about the process is important.People often feel helpless when they find themselves in financial situations like these. Get a free bankruptcy review from MA bankruptcy attorneys Matt Desrochers and Associates. Debt issues are not something to take lightly, but it is not as scary as you might think.
