Archive for the ‘Bankruptcy’ Category
Bankruptcy Part Three
July 16th, 2008
Bankruptcy (continues...)
It is now harder to file bankruptcy
Recently there has been an effort by bankruptcy judges to be harder on people who are going bankrupt since in the recent past there have been many abuses of the bankruptcy system. It is also important to know that if you believe you are going to go bankrupt you should NOT go and max out all of your credit cards right before you do so. The court will see this as an abuse and may not allow you to include those debts in your bankruptcy.
New Bankruptcy Law
A new bankruptcy law went into affect in October 2005 that makes it more difficult to wipe out all of your debt by filing bankruptcy. In order to file bankruptcy, you must go for credit counseling and budget analysis in the 180 days before filing bankruptcy.
Qualifying for Chapter 7 Bankruptcy
To qualify for Chapter 7 Bankruptcy your income must be below the median income in your state for a family of your size or you have to pass a means test. The means test for bankruptcy is that if you can pay $6000 over five years of $100 a month towards your debt, you must file Chapter 13 only. You have to pay the full amount of your car loan regardless of the condition of the car. Filing fees for Chapter 7 have increased, but fees for Chapter 13 have decreased.
Posted in 
Tags: 
Bankruptcy Part Two
June 11th, 2008
Bankruptcy (continues...)
What does it mean to go bankrupt?
When you go bankrupt (when you file for bankruptcy), all of your assets and debts come under the control of the bankruptcy court. It is important to understand that there are some assets that are called exempt assets in bankruptcy cases.
What are exempt assets from bankruptcies?
Examples of exempt assets from bankruptcies are:
-
your clothing,
-
food,
-
books,
-
personal belongings,
-
furniture,
-
some cash, and
-
your wedding ring
These exempt assets from bankruptcies cannot be taken away from you. Other things such as your car and some real estate, especially your home, have additional protections. The law about what is considered exempt differs by state, but in general you are permitted to keep things you require for daily living.
What are non exempt assets from bankruptcies?
Your nonexempt assets from bankruptcies are those that the court can divide up among your creditors. These non exempt assets from bankruptcies include:
-
investments,
-
large amounts of cash, and
-
valuable items you own.
Bankruptcy Part One
May 27th, 2008
What is Bankruptcy?
Bankruptcy is a procedure you can go through in a federal bankruptcy court that allows you to discharge (or get rid of) all or a portion of your debt.
Why is bankruptcy beneficial? What is an automatic stay?
One of the most important and beneficial things about bankruptcy is that the minute you file your petition with the court stating that you are asking to be declared bankrupt, all of your creditors are stopped from any collection attempts. This is called an automatic stay and can do a lot to relieve the tension and mounting panic you feel. This means creditors cannot take your car, garnish your wages, call you about your debt, or try to collect in any way.
What happens whan a bankruptcy is filed?
When a bankruptcy is filed, a trustee is appointed to handle the bankruptcy case. The trustee divides up your assets among your creditors.
Two types of bankruptcies
There are two types of bankruptcies available to consumers: Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.
Requirements for filing bankruptcies
You must reside in a state for 90 days prior to filing for bankruptcy in that state. To file for bankruptcy, you will probably need an attorney who will require that you pay him or her. You must also pay a filing fee with the court. The attorney will complete a Petition for Bankruptcy,which is a very long document that lists your personal information as well as details all of your assets and your debts.
-
Chapter 7 and Chapter 13 Bankruptcy, which is best for me?