A Bankruptcy Lawyer’s Blog

It is true that history repeats itself. In search of a fresh start, the early American settlers and founding fathers, many of whom were bankrupt and penniless, came to the new world. Bankruptcy today is exactly that, a fresh start, but without the cruise across the Atlantic. Bankruptcy protection is no longer a shameful experience of which to take advantage. A few of the nation's most trusted and respected professionals and corporations have taken advantage of this same bankruptcy protection, such as GM, Northwest Airlines, Delta, Lehman Brothers Holding, Inc., Chrysler, and countless more.

Unfortunately, those private citizens that are filing for bankruptcy will not be receiving bailout funds from the U.S. Government as will those major corporations. Because of this lack of extra financial backing, it is imperative that private individuals and families unable to pay debts or losing their home to foreclosure consult an attorney specializing in bankruptcy protection.

Should a family be 90 days past due with the mortgage payment, it is essential to consult a bankruptcy attorney immediately. Many bankruptcy attorneys will make recommendations that will allow a homeowner to continue making payments in order to prevent losing the home.

Shortly after filing bankruptcy, a hearing will be set. One instant benefit of filing for bankruptcy is that every harassing collection call will stop once each lender has been notified of the intent to declare bankruptcy has taken place. Should any lender which is owed money fail to appear at the hearing, will generally forfeit any claim to monies owed. This is not an absolute certainty, though. Certain loans and debts are not forgiven and must be paid back to the lender regardless of declaring bankruptcy or not.

Once the bankruptcy hearing has taken place, many attorney's offices will be able to refer the client to a reputable financial advisor so that the road to financial recovery may be smooth and efficient. Within a year, it will be possible to begin building a positive credit history once again through a credit card. The interest rate will be exceptionally high, but will fall as the client proves financial responsibility.

For more information and guidance about declaring bankruptcy and protecting assets through the bankruptcy process, visit http://www.gallerlaw.com . The Galler Law Firm, LLC. specializes in bankruptcy and debt consolidation, as well as, worker's compensation and motor vehicle accident representation.

Daniel Elliott is an independent contractor who authors articles and media on a variety of topics for diverse audiences. WebDrafter.com, Inc. (http://www.webdrafter.com) produces Website design, hosting, and search engine marketing services for many of the clients, industries and markets related to the articles and media authored by Dan Elliott. If you would like Dan Elliott to ghost write or pen an article for you or your company, please contact him with your specifications.

People who find themselves in an insolvent state financially may not know how to deal with the difficulties they face. In times of serious financial crisis, persons may turn to bankruptcy to help deal with mounting debts and financial obligations that they cannot meet. During bankruptcy proceedings, certain debts may be discharged and some assets may be retained, but certain debts may not be removed, no matter what the specifics of the person's financial situation are.

Individuals who file for bankruptcy are often looking to gain financial freedom and wish to get a chance at a "fresh start". Certain debts like credit card debt and other financial obligations may be discharged by the judge, and although the applicant may face difficulties obtaining credit for a few years, the person may see great advantages in the future.

When it comes to obligations like child support, it is not possible to obtain a discharge, regardless of your personal situation. Support for dependents is an important financial responsibility and even persons facing serious monetary struggles should be required to maintain payments to help their children. The law recognizes this and makes it clear that such debts cannot be escaped, even by filing bankruptcy.

Some individuals may face additional financial obligations as a result of taking care of their children. Medical bills accrued by children also cannot be discharged, regardless of how expensive the procedures were or how heavy the burden may be on the person's budget. As with support payments, these obligations usually remain intact, even as other debts are removed.

Fortunately, people who file for bankruptcy may find that other difficult debts are removed from their lives and they may be able to re-structure their budgets to manage money much better. This freedom may make it much easier to maintain timely child support payments and pay off medical debts as a result. With other debts out of the way, persons going through bankruptcy may find it easier to pay off the debts that were not discharged.

If you are considering filing for bankruptcy, it is wise to consult an experienced bankruptcy attorney for help with filing, hearings, and the discharge of debts. Bankruptcy can be a confusing process for people unfamiliar with the process, and having experienced legal advice may be very helpful. If you would like to know more about bankruptcy proceedings, visit the website of the Boston bankruptcy attorneys of Joshua Spirn & Associates.

Joseph Devine

The procedural aspects of the bankruptcy process are governed by the Federal Rules of Bankruptcy Procedure and local rules of each bankruptcy court. The Bankruptcy Code, Federal Rules of Bankruptcy Procedure, and local rules set forth the formal legal procedures for proceeding through a bankruptcy case from start to finish.

Preparing to File

First, a debtor gets all of his or her financial records in order. You should gather the following information and documentation together:

A list of all of your income for at least the last nine months, including:
1) pay stubs;
2) independent contractor payments;
3) interest payments;
4) dividends;
5) annuity payments;
6) settlements;
7) tax refunds; and
8) gifts.

This is not intended to be an exhaustive list, and if you have other sources of income, they should be included.

A list of your personal property and its value including:
1) cash,
2) bank accounts, checking, savings, CDs or annuities;
3) valuable household goods;
4) deposits;
5) special value collectibles;
6) clothing;
7) jewelry;
8) firearms and other hobby equipment;
9) insurance policies;
10) pensions and profit sharing;
11) stocks and bonds;
12) tax refunds;
13) spousal support;
14) cars, trucks and other vehicles;
15) real property; and
16) tools of your trade.

This is not intended to be an exhaustive list, and if you have other property or things of value, they should be included.

A list of all of your debts and obligations, including:
1) credit cards;
2) personal loans;
3) spousal support;
4) child support;
5) taxes;
6) mortgages;
7) utilities; and
8) rent.

Note that not all of these items are dischargeable in bankruptcy. However, if you are having a bankruptcy lawyer prepare your case, he or she will need this information. This is not intended to be an exhaustive list, and if you have other debts, they should be included.

Filing the Petition

The petition is the formal document that is filed with the bankruptcy court to initiate your case. It must be filed using the proper forms and it must contain the proper information, including all of the schedules and papers that are required for the particular type of bankruptcy you are seeking. At the time of filing, the debtor must pay the filing fee, which may vary depending on the type of bankruptcy you are filing.

Meeting of the Creditors

About thirty to forty days after the petition is filed, you will have to attend a hearing presided over by the United States bankruptcy trustee. This hearing is called the First Meeting of Creditors. At this hearing the trustee will ask the debtor specific questions under oath regarding the content of the petition, schedules, and other papers, assets, as well as income, property, debts and other matters. After the trustee is done, your creditors will be permitted to question you.

Discharge

Under normal circumstances, the bankruptcy court will automatically issue the discharge sixty to 90 days after the First Meeting of Creditors. In some cases, particular creditors may file motions with the bankruptcy judge, or in rare cases, initiate an adversary proceeding against a debtor. A qualified bankruptcy attorney can represent you in these situations. Once the discharge order is entered, depending on the type of bankruptcy that you have sought, your bankruptcy case will be complete, and the case file closed.

Justin M. Baxter
Baxter & Baxter, LLP
Portland, Oregon
(503) 297-9031

http://www.baxterlaw.com