A Bankruptcy Lawyer’s Blog

Bankruptcy is a legal proceeding in which people who are unable to pay their bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy is a way to instantly stop all of your creditors from trying to collect debts from you, at least until your debts are sorted out according to the law. Which means if you are experiencing a lot of nasty phone calls, they will stop.

According to Tripp Finley, Esq. of Diamond McCarthy Law Firm, bankruptcy can make it possible for you to eradicate the legal obligation to pay most or all of your debts. This is called a discharge of debts. It is designed to give you a fresh financial start.

Bankruptcy can stop foreclosure on your house or mobile home and provide you the opportunity to catch up on missed payments. However, bankruptcy does not automatically eliminate mortgages and other liens on your property without payment.

It can prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed.

It can also stop wage garnishment, debt collection harassment, and similar creditor actions to collect a debt. Restore or prevent termination of utility service. Allow you to challenge the claims of creditors who have committed fraud or who are otherwise trying to collect more than you really owe.

But bankruptcy cannot fix every financial problem. And it may not be the right course of action for you. In bankruptcy, it is usually not possible to eliminate certain rights of "secured" creditors.

According to Tripp Finley, Esq. of Diamond McCarthy Law Firm, a "secured" creditor has taken a mortgage or other lien on property as collateral for the loan. Common examples are car loans and home mortgages. You can force secured creditors to take payment over time in the bankruptcy process and bankruptcy can eliminate your obligation to pay any additional money if your property is taken. However, you generally cannot keep the collateral unless you continue to pay the debt.

Bankruptcy also cannot discharge certain types of debts singled out by the bankruptcy law for special treatment such as child support, alimony, some student loans, court restitution orders, criminal fines, and some taxes.

Protect cosigners on your debts. When a relative or friend has cosigned a loan, and the consumer discharges the loan in bankruptcy, the cosigner may still have to repay all or part of the loan.

Different types of bankruptcy include:

• Chapter 7-which is known as straight or liquidation bankruptcy. It requires a debtor to give up property, which exceeds certain limits called exemptions, so that the property can be sold to pay creditors.

• Chapter 11-which is know as reorganization, is used by business and a few individual debtors whose debts are very large.

• Chapter 12-is reserved for family farmers.

• Chapter 13-is called debt adjustment and it requires a debtor to file a plan to pay debts or parts of debts from current income.

Most people filing bankruptcy will choose to file under either chapter 7 or chapter 13. Either type of case may be filed individually or by a married couple filing jointly.

As with any area of the law, it is important to carefully select an attorney who will respond to your personal situation. The attorney should not be too busy to meet you individually and to answer questions as necessary.

The best way to find a trustworthy bankruptcy attorney is to seek recommendations from family, friends or other members of the community, especially any attorney you know and respect. You should carefully read retainers and other documents the attorney asks you to sign. You should not hire an attorney unless he or she agrees to represent you throughout the case.

In bankruptcy, as in all areas of life, remember that the person advertising the cheapest rate is not necessarily the best. Many of the best bankruptcy lawyers do not advertise at all.

Brenda Segna is a freelance writer with over 20 years of writing experience in a variety of genres. A partner in BLaST creative, Brenda Segna and Lara Tallman write and design for optimal web page ranking.

So, you want to be repossessed? Here are my top 10 tips for getting your property repossessed. (and hopefully by doing the opposite, you can avoid it!)

1. Buy a house, any house. Don't waste time worrying about how on earth you will pay for the thing or whether it is within your budget - as long as you can get the mortgage, just buy it!!
2. Next, apply for 5 or so credit cards, get the highest limit you can on each one. Don't forget to get a nice picture on the front of it - a sad puppy maybe, or a sports car (you know, the kind you will never be able to afford once you have really got yourself into debt!)
3. Wait for the credit cards to arrive, and kit your new home out with luxury items which you don't need. If you start to feel guilty, just tell yourself it makes the place feel more homely!
4. If you can't pay the mortgage, use one of your credit cards, reassure yourself that there isn't really a problem here, and something will come up which will miraculously fix the problem.
5. If you can't pay the credit card bills, simply withdraw some cash out of the one credit card you still have credit on and pay the bills with that. Don't forget to enjoy the bank charge for withdrawing the cash too!
6. Don't cut the cards up, just use them to the max, baby!
7. Ignore all letters which look like that may be from lenders falling through your letter box. They will only want money, and you don't have that. Find yourself a sandpit and bury your head in it!
8. If you really want to get repossessed, then make no attempt whatsoever to contact the creditors. This could put you in danger of working out a solution to the problem.
9. Pack your bags and wait for them to come and evict you. Scream like a wild animal as you are forced out of your own home.i>

10. Go and knock on your mum's door with your tail between your legs and ask her to take you in. Congratulations! You have successfully been repossessed!

Alternatively!! (and much more desirable)

Learn to be good with money. Don't live beyond your means. Take life one step at a time, there is no rush to buy a flashy expensive house in order to prove something to the world. Imagine how you will feel when that home is being repossessed. Living beyond your means will never lead to a life of luxury, only humiliation and a life of poverty being a slave to making debt repayments.

In all seriousness, if you have been repossessed, or are about to be repossessed, don't despair. You are in control of your own life and you can pick yourself back up again. Treat this experience as a learning curve - as I did.

I actually believe that a little bit of poverty and hardship is a good foundation for making yourself make something of your life no matter what age you are or what your circumstances are. By having been there and got the t shirt, you actually learn to appreciate the true value of money and give yourself aspiration to improve your quality of living.

Although this article is entitled '10 surefire ways to get yourself into major debt and get your home repossessed!' I am in no way recommending you seriously do this! I'm merely highlighting just how easy it is to get yourself into such a dire situation, and hopefully give you a warning if you are already half way down the list to take action now and turn your life around for good.

Build yourself some good major assets. Assets are not residential homes which you live in which cost you your hard earned cash every month. True assets give you cash each and every month just for being there - whether it be a low cost to set up, but highly successful website earning you income, an eBay shop which is truly running in profit or any other business which is really making you a profit every month. Experiment, and don't take risks. Don't spend money you don't have - find an alternative (free) way to advertise for example. Make something of yourself and one day you truly will have the CASH to buy those luxuries which will be 100% owned outright by you.

No hiding when the phone rings, no more dreading the postman. Take action and take control. You only have one life - live it to the max in its true form, not on credit!

If you are facing repossession, an option you may consider is to take a step to avoid this by selling your property if you cannot afford it and using the equity you do have in it to pay off your debts to give yourself a fresh slate. If you have a pending repossession order, you may not have time to sell through an estate agent, in which case a cash property buyer may be a better alternative. The company I run specializes in helping people in situations such as this. Please take a look at my signature below for details.

Whatever happens with your life - make the most of it. Don't be dragged down by credit cards and the like. Learn from the mistakes of people like me who have experienced it all at the tender age of 19 and have still pulled myself up from off the floor and pushed myself to make a success of my life. I hope my experience saves you the trouble and you don't have to learn the hard way like I did!

Here's to your future happiness, health and wealth!

Sally Slater is the managing director of the UK property buyers 'Webuynationwide'. Her company deals exclusively with homeowners wanting a quick house sale and is also capable of stopping house repossessions even in the very late stages.

You can visit Webuynationwide's website at http://www.webuynationwide.co.uk

With the current downturn in the economic climate, precipitated by the issues with sub-prime mortgages, many more people are looking for information on bankruptcy.

Are you one of these people, or are you properly and prudently dealing with your daily, weekly and monthly outgoings? Believe me, this is an essential process if you are planning to stay out of debt and avoid bankruptcy.

It is far too easy these days to be seduced by offers of low cost or zero interest rate credit cards, and pictures of enticing exotic holidays, flash fast cars and so forth. For a while there can be this fantastic honeymoon period, but, like the calm before the storm, without prudent actions, bankruptcy can be the black clouds rolling in over the horizon.

Far too many people around the world fall into this enticing trap, and tend to spend well beyond their means. This is not a wise or prudent route to take. So, if you're just starting out in business, or a new career, don't make the ever-popular and very tempting common mistake that millions of Americans make every year.

I'm talking about spending money you haven't got, can't afford, and plain and simply can not afford to repay. Now, this doesn't mean that you shouldn't invest in a house for your family if you can't pay for it in one cash transaction. People should always remember to understand the difference between 'Good' debt and 'Bad' debt. Borrowing the money to buy a house is what I would class as a Good debt. However, Bad debt is all the junk that folks buy on a regular basis. Whether it is clothing, jewellery, sports equipment to store in the garage, or high priced food, it should stay within your budget. If you have to charge things such as these to your plastic 'friends', then you probably can't afford them. So don't make charging them your idiotic and regular habit. If you fail to heed this warning, you may soon find yourself searching for information on bankruptcy. It's becoming a cycle in this country.

Once in a while, draw out some cash from your bank and instead of flashing your 'flexible friend' everywhere, dip your hand in your pocket, and pay by CASH!

Shock people! In fact, try staying in one of the popular hotel chains for a brief break, and then try and settle up with real money! You will find that they don't like it - or won't even accept it!

The trouble is, we are all getting so acclimatised to spending on credit, we are forgetting the simple anti-bankruptcy fact of life, that if you haven't got it, you can't (or shouldn't) spend it!

Have you read the latest information on bankruptcy? What so many individuals fail to notice is that declaring bankruptcy ruins your credit for a good seven years. Is that something you want to carry with you? I mean, seven years is a long time.

Not only that, but If you are in a legal dispute with somebody, who owes a great deal of money to you, you may even be unable to take legal action against that person to recover your money if you go bankrupt.

I strongly recommend you to acquire further information on bankruptcy before going through with it. Imagine what you won't have the ability to do. Now, I'm not just talking about attaining new credit cards. I am saying that unless you have buckets of cash, you won't have a scrap of credit to purchase a car, or invest in a home.

The truth is that no one will want to deal with you because of your bad credit. Declaring bankruptcy is basically like telling the world that you cannot deal with your current debt and wish to announce that you are officially broke.

Is that what you are looking to do, or do you wish to have more information on bankruptcy first? Regardless of your choice, there are individuals and companies that can help you through the difficult process. Simply jump online and gain more knowledge regarding debt consolidation, cash loans, and information on bankruptcy. This way you will be better able to determine what route you need to take from there.

But - take steps to avoid getting in this bankrupt situation in the first place, and spend within your means.

Geoff Morris is an Internet Entrepreneur who quit his corporate job many years ago, and is no stranger to risk-taking, or extricating himself from many tight financial situations. Take a peek at some of his real life solutions on actual debt relief at http://www.badcredithelponline.com