Preparing For Bankruptcy

Posted on December 17, 2008
Filed Under Debt Consolidation, Avoid Bankruptcy, Business Bankruptcy, Chapert 11, Chapter 13, Blog Carnivals | Leave a Comment

There is a lot of information about the differences and qualifications for Chapter 7 and 13, but how about the preparation before you actually sign on the dotted line. There are a few things you should know before you file for chapter 7. Chapter 13 is a bit more individualized based on each situation so these element apply only to chapter 7 filings…

Go back - this is the time the court will request all records, IE.bank statement, retirement statements, stocks, personal assets. The range is generally 3-4 months, better prepare for 4 months to be safe.
Dispute - the lender can dispute even further back than 4 months if they can prove you intentionally charged, cash advanced, or any other abuse of your credit line. In most cases this is hard to do unless it is so obvious that you heavily charged on you credit lines shortly before filing.
Retirement Accounts - in general you can have up to 250 thousand in a account before the court will consider it in your case.
Cars - a vehicle valued at 15 thousand or less is exempt from the filing.
Assets - anything over $1,000.00 will not be exempted and the court will make a ruling about it’s disposition.

There you have the major components and the limits imposed by the court to satisfy a Chapter 7 Bankruptcy, Don’t try to hide things, just prepare and make sure that you have everything in order before you sign the papers.

A error can either cause a debt not to be discharged or it may cause you to have to sell a asset you have. All in all if you prepare properly the process is pretty smooth and disputes from the credit companies would be rare. Be aware that the trustee’s who preside over you hearings are keen observers and have been through many hearings. The Read more

How Bankruptcy Works Best For You

Posted on December 15, 2008
Filed Under Debt Consolidation, Avoid Bankruptcy, Business Bankruptcy, Chapert 11, Chapter 13, Blog Carnivals | Leave a Comment

Facing a major debt problem can really be stressful. You find ways on how to get out from that situation. There are many alternatives available like going to a financial adviser who will help you overcome financial crisis. An adviser will be of great help but sometimes they cannot solve your problem. The last resort will be to file for bankruptcy. This is the last action for people suffering from debt problems. If you think there’s really no way out of your situation, filing for bankruptcy is your only option. Filing can be tiring for it requires too many things to do and accomplish.

If you don’t have any knowledge on how to file, you better consult a bankruptcy lawyer for that matter. Hire the services of a lawyer with a vast experience in handling cases similar to your situation. They are much willing to assist you in the duration of the process. They all know the proper procedures to do and what documents to submit. Bankruptcy has many advantages and benefits with regards to your financial condition and resources. Filing for one can be somewhat embarrassing but you just have to remember all the good consequences it will bring you. The major advantage is the protection that you will get.

The good thing about undergoing bankruptcy is the court will still defend you from your creditors. Your creditors cannot file a case against you once you’re protected by the law in your location. Another is with regards to your remaining properties. You don’t want your home to be seized by your lenders, do you? Under the law, creditors cannot go against some of your assets. In filing, there are two factors you should consider. One is the exemptions and another is unqualified debts. Exemptions in the context of bankruptcy mean that you are entitled to keep the properties or assets that you own despite your financial condition.

Usually, there are fe Read more