A Bankruptcy Lawyer’s Blog

Within the past couple of years, new bankruptcy laws have been put into place. These laws make some sweeping changes to the old laws, and in some places, certain regulations were completely revamped and almost rewritten. The reason for this change was because people were taking advantage of the old laws in a big way. For example, you used to be able to file bankruptcy almost on a whim, and you could do so frequently, which meant that many people would file, then get themselves into financial trouble again in very short order, then repeat the whole process.

This type of abuse is no longer possible with the new bankruptcy laws. But the laws were put into place for a reason, and for the person who has a legitimate need to file, these laws might seem cumbersome but they are actually to your advantage. Perhaps not in all cases, but learning to work within the laws can make the whole process much easier for you.

First of all, you need to know exactly where you are financially. Too many people think bankruptcy is their only way out of a tough financial situation and have not taken the time or put forth the effort to thoroughly check out their options and alternatives. You can do this easily and inexpensively (in many cases, free) via a bankruptcy evaluation from a qualified lawyer who understands the process and the laws in your state.

With the new bankruptcy laws, there is a time period during which if you have declared bankruptcy in the past, you cannot file again. This time period varies from state to state but it is definitely not whenever you want. There are also certain types of debts that cannot be eliminated by bankruptcy, like tax liens, child support, and previously filed judgments against you from an irritable creditor.

Bankruptcy does not necessarily mean that all your debts will be wiped out, although that is what most people hope will be the outcome. Rather, the courts take a detailed look at your finances and then decide which chapter of bankruptcy you may file for. If the decision is Chapter 13, then your debts are not wiped out but they are "reorganized" with lower monthly payments, but you are still required to pay them. If you are approved for Chapter 7, then your debts that are eligible are wiped out.

But again, this is not your decision. This is another reason that it is well worth your time and perhaps even expense to be represented by a qualified bankruptcy attorney who understands these issues and knows how to present your finances to the court in a light that may render the decision you wish to receive.

Bottom line: get a bankruptcy evaluation and fully understand what your options and alternatives are, and if bankruptcy is it, then you can also understand what to expect, which will enable you to make an intelligent decision as to whether or not you should proceed with it or not.

For more insights and additional information about the new Bankruptcy Laws as well as seeing how you can get a free bankruptcy evaluation from a equalified bankruptcy lawyer in your local area, please visit our web site at http://www.bankruptcy-data.com/bankruptcy-law.php.

It's always wise to carefully evaluate all of your options before making a financial decision. That's especially true when it comes to bankruptcy because of the long-term consequences, and there are many options that people consider including reverse mortgages. What exactly is a reverse mortgage and is it a good idea for paying off your debt?

Reverse mortgages are loans that specifically target senior citizens and involve using their home equity. You must be at least 62 years old to receive a reverse mortgage.

Let's say you own a $200,000 home, and you own it free and clear (which means you don't owe the bank anything anymore). You can borrow a certain percentage of the equity in your home, and that amount will be paid to you at a specified time such as on a monthly basis. You won't have to make any mortgage payments, and nothing has to be repaid until the senior citizens move or die. (You don't necessarily have to own the home free and clear, as some lenders will simply use whatever equity you may have.)

This might sound like a fantastic bargain, but remember that the loans have to be repaid eventually. If you don't repay them, then the lender can take over the house and leave your heirs with nothing. If you don't have any children or grandchildren that will inherit your house, this may not be such a bad idea. You could use the money as income and not worry about what will happen to your house when you pass on.

Otherwise, you need to be very careful about this option. If you want to bequeath the house to someone you love, then that loan has to be repaid at some point. Also, you need to make sure that you're dealing with a good lender and not someone who pushes or tricks the elderly into making decisions that are not in their best interest. A reverse mortgage may also change how the government views your benefits like Social Security and Medicaid. The rules change from time to time, so you should look into this as well.

If you want to keep your home but have a large amount of debt, bankruptcy may be the better option. We're not saying this is always the best option, but the point is that you can wipe out debt while protecting your home (depending on the homestead exemption in your state and how much debt you owe). You shouldn't be so quick to put up your house as collateral in order to pay unsecured debt like credit cards and other financial obligations.

Don't let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn more about reverse mortgages better than bankruptcy visit us at http://personalbankruptcyquestions.org

Bankruptcy can be painful, and you may not be the only one who is hurt by it. Before you file, you need to examine things closely so you can make the best decision possible for you and your family. In this article we will discuss some of the drawbacks of filing personal bankruptcy.

The most obvious negative consequence of declaring bankruptcy is the damage that it will do to your credit rating. Of course, this may not be the most pressing thought in your mind, because your finances may be so bad that your credit rating really doesn't matter at the moment. Still, you have to think about the difficulties you'll face in getting credit during the next few years. When you are given a loan, you'll probably have to pay higher interest rates for some time.

You have to be careful about accumulating debt all over again anyway, but you should still be aware of the damage to your credit.

One consequence you may not have thought of is that innocent creditors will be hurt by your decision. We're not just talking about huge corporations but also any small businesses that have extended you credit recently. This may be especially hard to take for the small businesses, but you should still not make a decision solely on this factor. You need to do what is best for you and your family.

Another thing that people worry about is their reputations. Certainly, bankruptcy will hurt your reputation in some circles, especially if you live in a small community where everyone knows everything about you. You may even have your name published on a bankruptcy list in some newspaper, and your bankruptcy filing will also be a matter of public record for those who are interested.

Nevertheless, this is not usually a big deal especially in larger communities. The public can attend your bankruptcy meeting, but few people are ever interested in this.

Don't let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn more about negative consequences of bankruptcy visit us at http://personalbankruptcyquestions.org