bankruptcy questions

Archive for November, 2009

Bankruptcy legislation under US law was first introduced in 1898, by the enactment of The Bankruptcy Act. Thereafter, from time to time, there have been many acts and amendments to laws on bankruptcy in response to commercial and socio-economic demands. Petitions for bankruptcy, filed under chapters 7, 11 or 13 Bankruptcy have different implications.

By filing for a bankruptcy petition under Chapter 7, the petitioner hands himself to the protection of the court. It implies that the petitioner has no hope of ever being able to repay back his debts. The end result is a complete liquidation of the petitioner’s assets through a court appointed trustee, subject to exemptions, by way of sale to payback the creditors. Thereafter, the debtor is discharged from his debts. The advantage here is that the court intervenes and prevents creditors from harassing you and makes sure that the debtor is not turned into a destitute after the liquidation of the assets, by exempting certain assets as cannot be attached or liquidated in course of bankruptcy proceeding. However, there are certain obligations and debts that are beyond the scope of that which can be discharged.

The exemptions are fully described in 11 United States Code Section 522.

Petitions filed under Chapter 13 are for unsecured debts under $25000 and secured debts under $750000. The debtor is allowed to restructure interest free debt repayments over a period of three to five years, under a new repayment schedule. The repayments are made to a trustee who appropriates the repayment against secured and unsecured debts, as per directions of the court. Creditor approval is not required and if the creditor(s) object to the reorganized repayment schedule, the court can force acceptance. The debtor’s assets are not categorized as under liquidation although the trustee has control over the finances.

Bankruptcy petitions under Chapter 11 are nearly always filed by businesses, since the limit for filing under this chapter is $2,000,000 and above for secured loans and unsecured loans cumulatively. Though, individuals may also file if the amount falls within these limits. This chapter also envisages a reorganization plan that may have a schedule up to six years. The business continues to run, preserving assets and jobs and the debt is restructured to enable repayment to be made from future profits, recapitalization, mergers or sale of some assets.

Foreclosure

After a bankruptcy petition has been filed, no action for foreclosure can be taken, if proceedings have already been initiated. Neither can someone be evicted if he has filed a bankruptcy petition. However, it is open to the lender to appear before the bankruptcy court to lift the stay, so that he may proceed with the eviction. Since it is a general practice for lenders to take action only after a three-month default, the foreclosure proceedings themselves take anywhere between four to nine months, after which the eviction will have to be conducted.

Credit

Any petition filed for bankruptcy has disastrous results for the petitioner credit worthiness. It spoils and ruins his credit. The bankruptcy related information usually remains on the credit report for a period of ten years. Availing of credit will be difficult and even if you are able to avail credit at a future date, it will be at a much higher interest rate, thereby raising costs.

Kris Koonar
http://www.articlesbase.com/non-fiction-articles/bankruptcy-foreclosure-credit-how-it-affects-you-119881.html

In general, you can choose the type of bankruptcy for filling, under certain circumstances you may only eligible for certain type of bankruptcy filling. In most cases, debtors will choose chapter 7 for filling because it’s fast, effective, easy to file, and doesn’t require payments over time. Chapter 7 bankruptcy usually takes the least time to complete. Other common types of bankruptcy filling include chapter 12 and chapter 13.

Yes, you can choose the type of bankrupt filling but you may not eligible for it. Let see the criteria of filling for a few common bankruptcy types.

Bankruptcy – Chapter 12

If you are a farmer or a fisherman, for instance, you may consider chapter 12 filing. Chapter 12 bankruptcy filling is tailored for "family farmers" or "family fishermen" with "regular annual income". It is more streamlined, less complicated, and less expensive than chapter 11 (bankruptcy filling for large corporate reorganization).

Chapter 12 has allowance for situations in which family farmers or fishermen have income that is seasonal in nature. Thus, debtors with seasonal income will find it to be advantageous to file their bankruptcy under chapter 12. In additional, Relief under chapter 12 is voluntary, and only the debtor may file a petition under the chapter.

Bankruptcy – Chapter 7

Beside the farmer and fishermen, most ordinary debtors will choose chapter 7 as their bankruptcy filling type. The key factors of the popularity of this bankruptcy type are it does not need payments over time, easy to file and less expensive. However not every persons who are seeking of getting debt free by filling bankruptcy will be eligible to file under chapter 7. To be eligible for chapter 7 bankruptcy filling, you must meet the below criteria:

• You must pass the median income test:

  You calculated average income must not more than the median income for your state (You can find the median income by state information from www .usdoj.gov/ust; click the Mean Testing Information).

• If you failed the median income test, you second chance for chapter 7 filling is on mean test:

  Mean test is calculated based on your disposable income. To get your disposable income, calculate your average monthly income as describe in above paragraph. From that amount, subtract your allowed expenses (stated in IRS) and monthly payments you will have to make on secured and priority debts. If your monthly disposable income after subtracting these amounts is less than $100, you pass the means test, and will be allowed to file for Chapter 7.

Bankruptcy – Chapter 13

You will be forced to file your bankruptcy under chapter 13 if you are not eligible for chapter 7. Or if you have file bankruptcy before under chapter 7, then you need to go for chapter 13 for second bankruptcy filling.

Chapter 13, which has also been known as a wage earner’s plan, is an interest-free repayment plan where a debtor repays at least some of his or her unsecured debts with regular payments over five years.

In chapter 7 filling, debtors need to liquidate their assets to pay to their creditors (creditors will share the amount from the liquidation); whereas, the debtor generally can continue to live in his or her home so long as the debtor complies with the terms of the Chapter 13 arrangement. This is one of the advantages of chapter 13 over chapter 7 bankruptcy filling.

In Summary

If bankruptcy is your ultimate option to get out of debts, you can choose the bankruptcy type to be file against, but you may not eligible for the bankruptcy type of your choice if you do not meet the required criteria. The best way to confirm it is check with bankruptcy attorney on which bankruptcy type you are eligible for.

Cornie Herring
http://www.articlesbase.com/finance-articles/can-you-choose-the-type-of-bankruptcy-filling-82897.html

This is an article about direct mailing lists, it isn’t an article on how to capitalize on others misfortunes…er…not really.  Honest.

Lets face facts here folks, the economy is down the tubes—almost every day we hear of another financial icon going belly-up—housing sales are non-existent, mortgage lending is impossible.  And I’m an optimist!  No wonder record numbers of individuals are filing for Bankruptcy protection, even as the restrictions for such actions become tougher to qualify for.

So, for the people who find themselves helplessly upside-down, Bankruptcy moves from an option to reality.  Once it is reality, what are they to do?  Are they to disappear, of course not, they need to live and they hopefully will be working toward remedying the life/lifestyle circumstances that put them inexorably behind the proverbial eight-ball in the first place.

Isn’t this about Marketing?

 Ok, so as a Marketer, don’t I want to avoid these folks like the plague…especially in today’s tenuous economic environment?  Depends.  Depends upon what you do, and who you offer it to.

 But before I go into this in more depth, let me tell you about the two types of Bankruptcy mailing lists that are available.

 Types of Bankruptcy Mailing Lists

Bankruptcy Fresh Filers  – Consumers who have just filed for Bankruptcy protection (Chapter 7,11,12 or 13).  This type of file can be selected by Filing Date as well as the aforementioned Chapter type.  These people seek a “fresh start” to begin the road back to fiscal responsibility. This type of list is updated Monthly.

Bankruptcy Discharged Filers  -   Consumers who have just met the requirements of their Bankruptcy filing and had their case successfully discharged.  Discharged date and Chapter type (7, 11, 12, or 13) are also selectable and this file is also updated Monthly.

In both cases above, lists like these should be selectable by a host of demographic (Age, Income, Education, Gender, Marital Status, etc…) overlay data to enable you to target a specific type of prospect.

 The Plight of a Discharged Bankruptcy Filer

Once a person or persons is discharged, they have to re-establish a positive credit history before they can apply for a credit card or a loan. Marketers offering “secure” credit and other forms of payment options will be of benefit to these individuals until the person re-establishes his or her credit.  Discharged bankruptcy filers have to find financial institutions, banks or merchants who are willing to give credit cards or financing alternatives.

Bankruptcy filings continue to increase.  From a marketing perspective, this means that these types of Consumers will continue to provide a significant quantity of prospects to market to.  So if you are one of the above, or are a creative marketer, then using Bankruptcy lists is something you should add to your marketing mix. 

If you are interested in finding out more information on Bankruptcy lists, or other mailing or email lists, visit www.GreatMailingLists.com, and for more Marketing Tips, check out the Blog “What About the Mailbox with No Spam In It?”.

Doug Sauerhaft
http://www.articlesbase.com/sales-articles/why-you-should-be-mailing-consumer-bankruptcy-lists-586879.html

Some people are in financial trouble. The creditors will not stop calling you. Your debts are piling up. You are at the end of your rope. You are in a panic. What to do now. Should I file for personal bankruptcy?

The benefits of filing for personal bankruptcy will allow you to re-establish and get good credit again. Getting a discharge when filing bankruptcy can end the harassment and marital stress. Personal bankruptcy will put a stop to all creditors, garnishments, foreclosure, evictions, etc. Filing for bankruptcy can also protect some of your property so it will not be taken over by your creditors.

Now of course, there is a flip side to everything. Some reasons in not to file bankruptcy and the disadvantages are, if you really do not have large debts, then why file. If you have property that is already exempt, then why file. If you have any assets that are way over the exemption limits, this will be turned over the bankruptcy trustee and sold to pay off your creditors. Look into this extremely well and consult with a lawyer before your filing. You have to also remember that a bankruptcy filing can stay on your credit report for 10 years. Sometimes filing for bankruptcy may not work in your favor. You might loose property or you may have some major debt that will not be discharge for one reason or another. Consult with a lawyer first before filing bankruptcy to see if this going to be worth it or not.

If you do decide to file for personal bankruptcy, this will be a very important decision you will have to make. Finding a good lawyer to guide you through this will be best. You should get guidance and have your questions answered before deciding to file for personal bankruptcy. Make sure to keep and get your records in order without making any mistakes or errors. Make sure you find a lawyer that you are comfortable with and one that has your best interest at heart.

Look to your employer to see if their is some kind of employee assistance program available. Their are also some public funded legal services available that do not charge attorney fees for personal bankruptcy. Do your search on this.

Make sure you list all of your creditors. If you forget to list any creditors, then the ones you did not list can still come after you to pay up even after filing bankruptcy. Anyone and everyone you co-signed with or if they have co-signed with you, make sure these debts are listed on your list of debts.

There has been many changes in the law when it comes to filing bankruptcy. It has been made harder for individuals to file under Chapter 7. Filing Chapter 7 is alot easier in clearing your debt in order to get a fresh start. The system has made it harder to file Chapter 7. You may end up having to file Chapter 13 because this chapter will require you to repay at least half of your debt. And the law wants it this way. Do your research very well when it comes to filing and make sure you talk to a good lawyer about this.

At the end of your filing usually 3 months after, you will be able to start a new credit profile. Just make sure you do not come in contact with your old creditors. They could get you to sign a reaffirmation of your old debt that has already been discharged when you first filed bankruptcy. Be careful and always read everything thoroughly.

You will soon have to make the decision to take some kind of action. Before you decide to file, maybe you should look into getting help from a local financial counseling program.You can also look into finding a experienced credit counselor who is experienced in negotiating with creditors. You have some credit counselors out there who are very good at this. Do your research in finding these kind excellent credit counselors and who they are. Investigate their services and their credentials .Consider also contacting the Better Business Bureau by calling or going online.

Filing for bankruptcy which is provided for in the Constitution is your right under the law. It is intended to provide a fresh start for a individual. Big corporations and celebrities file for bankruptcy all the time. Your lawyer should not be too busy to meet with you to discuss your options here. Get consultation from a lawyer so you will be more equip to make that final decision of whether file for personal bankruptcy or not.

Carmen VJ
http://www.articlesbase.com/finance-articles/personal-bankruptcy-will-get-you-relief-to-all-that-debt-79206.html

Bankruptcy Attorney Jamie Ryke explains how long does the chapter 13 bankruptcy process take. Our Second Start bankruptcy office represent clients throughout the state of Michigan and the Chicago Metropolitan Area, we can help you get a second start.

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