Let’s imagine that Tom Martin owed a local hardware store $875 for tools and supplies. Unfortunately, Tom Martin was overloaded with debt, and he couldn’t pay off the amount he owed to the hardware store. Eventually, Tom decided to declare bankruptcy. He went about finding a good lawyer . And he filed for bankruptcy. After proceeding through the judicial system, the bankruptcy court erased all of Tom’s debts.
Nevertheless, Tom had for a long time been on good terms with the local hardware store, and he felt bad that the store had never been paid. So one day when he was at the hardware store to purchase some nails, Tom talked to the store owner, Jim Matthison. Tom told Jim he was sorry for having to declare bankruptcy, but that he just had far too many debts to pay. However, he told Mr. Matthison: “I never intended for you to get stuck. So I promise to pay you the full $875, just the same as if I had never declared bankruptcy.”
Well as it turned out, Tom’s finances never got any better. So although he promised Jim that he would pay him, Tom actually never paid anything on the debt. So after ten months, Jim, the store owner, employed an attorney himself. He then sued Tom for the entire $875 he had promised to pay. Once the case was heard by the court, guess he won: Tom, the debtor, or Jim, the hardware store owner?
Bringing an Old Debt Back to Life
In most jurisdictions, Jim, the hardware store owner would prevail. The court would no doubt rule that the bankruptcy court only barred the enforcement of the debt. However, it never wiped out the moral obligation to pay the amount owed. As a result, most likely the court would rule that the actual debt, coupled with the moral obligation to pay that debt, is sufficient consideration to support the new pledge to pay off that debt.
In some states, courts have said that in such situations like this, the new promise made by Tom revives the old debt he originally owed to the hardware store. In other words, the moral right continued to exist. It was only the remedy that had been barred by the bankruptcy court.
This is all consistent with a long-standing principle of law that an earlier debt constitutes sufficient legal consideration for a subsequent promise to pay that debt. This legal rule applies not only to bankruptcies, but also to debts that are barred from enforcement by the statute of limitations. In most states, a creditor has four years to sue on a debt that is past due. If he waits ten years, he can no longer legally collect the debt. However, after ten years, if the debtor makes a new promise to pay the old debt, then the new promise is enforceable.
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Should I declare bankruptcy?
Whether or not to enter bankruptcy is a really challenging choice. Many individuals do not own any belongings over and above what the law will allow them to keep, even if they do not pay their creditors. If this is true of you, then you may not need a bankruptcy in order to protect your assets.
A number of individuals find it helpful to file a bankruptcy case anyway simply because their financial situation is causing them emotional distress or major depression, or because they would like to free themselves of debt immediately, if legally allowed, and have their income and assets to themselves in the future. Also, quite a few people might find that a bankruptcy is worth filing even if they do forfeit some of their property.
If perhaps many of the following are true in your situation, you might look at bankruptcy:
An Individual’s wages have been garnished or your bank account has been attached Most of a person’s debts are unsecured debts like credit card bills, hospital or doctor’s bills, etc. A person’s total debt, not including your car or house loan, is more than you could pay, even over five or more years Collection agencies are calling you at home and/or at work Your payments are more than 30 days behind on more than one bill There are lawsuits pending against you You have high medical bills not covered by insurance You owe income taxes that you are currently unable to pay You have few property You have little or no savings You have had property repossessed (such as a vehicle)
Rules passed in 2005 make it more complex to file for bankruptcy.
You ought to find assistance of experienced bankruptcy counsel prior to deciding whether to declare bankruptcy.
More often than not, talking to a local bankruptcy attorney will provide you with your best solutions in terms of what steps make the most sense for your particular debt situation.
If you are facing debt challenges, typically, your best option is to discuss your situation with a bankruptcy legal professional. A local Stoneham bankruptcy lawyer can help you understand your options so that you can make a choice that is right for you.
Where do you start? What option should you choose? Where do you find help? A Santa Cruz Bankruptcy attorney can help. With years of experience, a Santa Cruz Bankruptcy lawyer can answer your questions and help you choose what is right for you. They can guide you through all the legal matters and give you the information you need. They can put an end to the continuous calls from debt collectors.
With five different chapters of bankruptcy to choose from, you can find a way to end your debt. Just because you are filing bankruptcy does not mean you lose everything you own. There are also Chapters 9, 11, 12, and 13. These are plans that deal with debtor rehabilitation which involves court-approved plans and payment schedules.
Known as “straight bankruptcy”, Chapter 7 is what most people think of in terms of filing for bankruptcy. It is simply a liquidation of all assets. The money is then used to pay off debtors of all outstanding debts. A Santa Cruz attorney who specializes in bankruptcy has other solutions that might fit your case as well.
A chapter 9 is a federal process for resolving municipal debts. This includes cities, villages, towns, school districts and counties. Chapter 11 is similar to Chapter 9 except that it is for commercial businesses. The business is allowed to keep running while repaying its debts to its creditors.
Chapter 12 gives much needed relief to family farmers. Your Santa Cruz attorney can submit a debt relief plan that is stretched out over three years. If this is not long enough, the court can approve an extension up to five years.
To both consumers and individuals, Chapter 13 can give much needed debt relief. Most widely used, Chapter 13 allows you to keep valuable assets, like your home and car, while still paying off your debts. This plan of action will be considered at a confirmation hearing and will be either approved or disapproved.
If you are facing foreclosure, repossession, liens, or lawsuits, a Santa Cruz Bankruptcy lawyer can help. They can guide you through the process and decide which path is best. An experienced Santa Cruz Bankruptcy attorney can give you the information you need to clean up your debt. They know what unpaid bills can be eliminated, what you can keep, and any other details about the bankruptcy. A Santa Cruz Bankruptcy lawyer is there for you.
In these difficult times, bankruptcy lawyers are needed more and more. Sometimes, a trustworthy and affordable attorney is difficult to find. We will consider simple steps to find a trustworthy and affordable Los Angeles Bankruptcy Attorney.
Get recommendations to find your lawyer. Speaking with family, friends, and co-workers is a great place to start. Someone should know a lawyer, or at least know of a lawyer. You will be able to get information about the lawyer and see if they might be compatible. Other lawyers might also be willing to help by making a recommendation. Professionals like bankers or social workers might also offer assistance.
The phone book or newspaper can also give you information about a specific lawyer. Many law firms and individual lawyers also advertise on the internet. Remember, there are laws governing what can be advertised in print, radio, TV, and other media. But still take the information you find with caution. In addition, sometimes lawyers join together and advertise their services as a group.
If a recommendation is not forthcoming, try a certified lawyer referral service. A certified lawyer referral service should direct you to lawyers with experience in specific areas of the law such as bankruptcy. Being certified requires following particular rules that protect you. This encourages these services to offer free and or low cost legal help. This may also be a way to find lawyers who speak languages in addition to English.
In the state of California, the bar gives programs where lawyers can become certified specialists. Specialist lawyers get certified by proving their extensive experience in their specific area of law. The state offers certification for specialists in bankruptcy. Many lawyers with experience and expertise may not have been certified.
The State bar will not refer an attorney or give legal advice. If you need to consult an attorney about a potential case or hire one, a certified lawyer referral service should help you to find one. If your legal troubles can be solved without going to court or a lawyer, the certified lawyer referral service may be able to help you to get what you need.
Always check the public records available to you concerning your attorney. You can find the official bar membership records from the State Bar. This will tell you when the attorney was granted admission to the state bar of California, which higher education institutions were attended, whether the attorney is currently eligible to practice law in California, and their public record of discipline.
Some may qualify for free legal aid. This is dependent on income and the type of legal aid needed. Most state bars offer access to some basic resources and attorney information online. Many local law schools might offer free clinics with legal advice.
Be informed once you find an affordable and honest Los Angeles Bankruptcy attorney. Make sure the fee agreed upon is in writing. Legal problems with an attorney never end well. Keep your lawyer up to date. A lawyer is not your closest friend but an ally. Having a stable working relationship helps during this process.
Los Angeles Bankruptcy Attorneys are honest and inexpensive . Check out our super online guide to Los Angeles Bankruptcy Lawyers for this ultimate inside scoop on top notch legal eagles.
Pursuant to the Bankruptcy Abuse Prevention and Consumer Coverage Act of 2005, individuals who arrange to file for bankruptcy shelter, with limited conditions, are required to get credit guidance from a government-approved provider within six months before they file. They also should always carry out a debtor education tutorial from an approved provider to have their credit card debt discharged.
Bankruptcy is a court proceeding in a federal court through which an insolvent debtor’s assets are liquidated and the debtor is allayed of further legal responsibility. Chapter 7 handles liquidation, while Chapter 13 handles reorganization. If you have questions regarding bankruptcy, you should seek the assistance of a licensed bankruptcy attorney.
Chapter 7 bankruptcy is when the court appoints a Trustee who may liquidate or sell off some items that you own to pay out your creditors. Most of your debt will be terminated, but you may determine to pay for some creditors, usually to keep a car or home in which the creditor has a lien.
Chapter 13 bankruptcy is when your debt is reorganized into a single monthly sum. The payment will continue for 36 to 60 months. In no case may a prepare provide for installments over a period longer than five years. You do not have to pay off all of your debt. You pay only as much as you can manage, but the minimum payment may be affected by property you want to keep. When you accomplish the payments, debt not paid is discharged. Advantages and Disadvantages of filing for Bankruptcy
Filing bankruptcy does not always do away with all credit card debt, and often simply restructures existing credit card debt – this leaves you liable for all future payments. Filing bankruptcy also continues with you for up to 10 years and you may have problems getting any type of loan. Bankruptcy is public record and will be shown on your credit report but not for good. Speak to one of our credit advising experts if you need counseling.
Anyone who is taking into consideration bankruptcy needs to fully realize the process and the laws surrounding bankruptcy. Questions about bankruptcy should be addressed by a licensed bankruptcy law firm. There are other possibilities to bankruptcy and you can avoid bankruptcy with outside help. It is essential to get early help about bankruptcy if you are hoping to use the bankruptcy process to save your home or your car.
If you’re looking for a bankruptcy lawyer in Pontiac Michigan, talk to one of our experienced Michigan bankruptcy lawyers.
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!
Times are generally tough for one group of people or another and it really doesn’t matter what the overall economic situation is in the country. Chances are, there are people out there — in Massachusetts and everywhere else — who are considering bankruptcy as an option to deal with their financial troubles. Well, in the Bay State, what to know about bankruptcy in Massachusetts can be important no matter the economy.
In 2005, the federal laws governing bankruptcy across the nation were revised in certain ways. Each state also has exemptions on the books that help to deal with differences in a state’s laws and Massachusetts is no different. Congress passed a series of changes to bankruptcy procedures (25 of them, to be exact), so keep that in mind when considering bankruptcy as an option to deal with financial ills.
In Massachusetts, certain classes of property are exempt from execution of a bankruptcy judgment. There’s no simple formula that a person can use to determine when he or she should file for bankruptcy, it must be said. It might depend on a variety of factors, including possible foreclosure on a home or property or maybe a job loss.
Regardless of the reason for filing, it’s wise to learn what kinds of bankruptcy can be filed for in Massachusetts and the rest of the states. Generally, there are two different kinds: Chapter 7 (sometimes known as liquidation) and Chapter 13 (which is a reorganization and is more familiarly known as “Wage Earner Bankruptcy”). Chapter 7 is the most common and is looked at as a clean slate.
Chapter 7 is the most popular (if that’s the word to use) form of bankruptcy that most people file for when they’re looking for a fresh start or a clean slate. Today, this form of bankruptcy will require a means test and a hearing to determine if the petitioner meets the criteria for Chapter 7. Once it’s approved, all but exempt assets will be sold off and then creditors paid off. Chapter 13 is a reorganization and then a set payment schedule.
All bankruptcy in Massachusetts procedures have their genesis with the filing of an official bankruptcy petition to the federal bankruptcy court. A statement of financial affairs is provided to the court along with a schedule of actions to be taken in order to proceed. There’s a $299 filing fee for Chapter 7 bankruptcy, which is the most common form. It’s probably best to take on an experienced bankruptcy lawyer before proceeding, though.
Understanding the prospect of bankruptcy in Massachusetts can be scary. It’s important that you have confidence in your decision making and an experienced bankruptcy attorney MA can help guide you down the right path.
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.
You may be feeling the burden of the debt you face. You have bills that are piling up and can’t see the light at the end of the tunnel. One option worth exploring is filing for Chapter 7 bankrtupcy.
Nearly 2/3 of all personal bankruptcy filings are Chapter 7. This makes it the most common type of bankruptcy. What I will do is define for you exactly what Chapter 7 bankruptcy is and answer 3 of the most common questions asked about it.
Chapter 7, or straight bankruptcy, is a good fit- if you are in a position to sell your nonexempt property and use the money made to pay your creditors. Of course, you want to make sure that you will have property left over after paying your debts to get a fresh start.
What follows are 3 commonly asked questions about Chapter 7 bankruptcy
1. Do creditors have to leave me alone after I file? In short, yes. Creditors by law are required to stop all actions after you file for Chapter 7 bankruptcy. This is why bankruptcy could be a good way to get yourself a new lease on your financial situation.
2. Will everyone I know find out I went bankrupt? Your bankruptcy filing is a matter of public record. That being said, there is not a strong likelihood that anyone is going to find out unless you tell them. There are so many bankruptcy filings that it isn’t something that typically is publicized.
3. I feel ashamed I’m filing for bankruptcy. Why do most people file? Filing for bankruptcy is nothing to feel ashamed about. In fact the most common reasons for filing include medical expenses, divorce, job loss and other unexpected and unplanned events.
If you are considering a Michigan bankruptcy, Chapter 7 might be a good thing to consider. You should speak with a Michigan bankruptcy attorney to get a better handle on your options.
Chapter 7 bankruptcy can be an effective means of eliminating debt. Often times, it is far more effective than debt consolidation or debt settlement/forgiveness. Debt consolidation relies on hopes that creditors will join in. When you are looking for a Michigan bankruptcy chapter 7 attorney, get a free consultation with Michigan bankruptcy chapter 7 attorneys.
If you are thinking of filing for bankruptcy, you probably have lots of questions. Before making this decision, you should educate yourself as much as possible about the process. You will not have a hard time finding a Los Angeles bankruptcy attorney. However, before you decide to contact one, you should do a bit of research on your own about bankruptcy. It can seem like a magical solution, but there are many factors to consider. Here are a few things to think about when deciding whether or not to file.
Types of Bankruptcy
Several different chapters of bankruptcy exist. Chapter 12 is available to family farmers and fisherman. Chapter 11 usually pertains to businesses. The two types generally filed by individuals are Chapter 13 and Chapter 7.
Chapter 13 bankruptcy does not wipe out debt, but puts the debtor on a court-approved payment plan, allowing them to rehabilitate their financial situation under terms that the court believes are within their means.
Chapter 7 bankruptcy does wipe out most unsecured debt. However, there are certain types of debt not discharge-able through Chapter 7. These types of debt include:
Child Support
Spousal Support
Most Student Loans
Property Taxes
Income taxes less than 3 years old
Effect on Credit Score
The main disadvantage cited when cautioning individuals against bankruptcy of any chapter is that it stays on your credit report for up to ten years. Although this may deter some people, it is important to remember that if you are considering bankruptcy, your credit score is probably in pretty terrible shape as it is. If you think you can pay off your debts individually, or if they are close to falling off of your credit report, then the effect of bankruptcy on your credit score is something to take into serious consideration. However, if you are in a position where your credit score has no chance of improving in the next 10 years anyway, then this is not of much concern.
Bankruptcy Abuse Prevention and Consumer Protection Act
This law went into effect in October 2005, and changed some of the circumstances around filing for bankruptcy. At this point, a filer’s income is subject to a means test, which looks at the debt beside the individuals income, and determines whether the income falls below a median that varies by state. This decides whether or not the person qualifies for bankruptcy. Another change is that now, prior to filing, you must go through an hour long debt counseling session with a non-profit debt management agency, to explore all options for dealing with the debt
Other Methods of Filing
Contacting bankruptcy lawyers is not the only option you have for filing. You may download the federal bankruptcy forms and fill them out yourself, although this option is not advisable unless you have an in-depth knowledge of bankruptcy laws. There is also bankruptcy software available, which works much like tax-prep software in that it guides you through the filing process. You can also use a full-service online preparer, although this person is not an attorney and cannot offer legal advice. They simply prepare the forms for you.
The fees for a bankruptcy attorney are usually between $1,000 and $2,000. The fee to file is about $300. Bankruptcy can be a new beginning, and you may determine that the fees of hiring a lawyer are worth the peace of mind you will gain from having your debt under control. Make sure you educate yourself and stay informed through every step of the process, whatever your decision.
What exactly is a Los Angeles Bankruptcy Attorney? There’s valuable information regarding the different kinds of bankruptcy and what you should do. Make sure you talk to bankruptcy lawyers before it gets too late!
