What Does Bankruptcy Cost?

We consider the cost of going bankrupt and understand how these costs can be paid.

If you are thinking about bankruptcy one thing you will need to understand is the cost involved and how to pay this.

When you apply for bankruptcy at your local court you will have to pay a fee on the day. Unless you pay this fee in cash your bankruptcy application will not be processed.

You must therefore understand what this fee will be and get the necessary bankruptcy help to decide how get the money together to pay it.

The bankruptcy court fees

The bankruptcy cost is currently £700 per person. This is made up of a Court Fee of £175 and what is known as a bankruptcy deposit of £525.

The full £700 must be paid to the court clerk on the day you go to the court with your bankruptcy application form.

You must pay in cash as the court will not accept cheques or card payments.

It is vital that you remember to take your cash to pay the bankruptcy cost on the day. If you forget you will not be able to go bankrupt and will have to return to the court on another day.

Options to reduce bankruptcy costs

In certain situations you may be eligible for a waiver of the £175 court fee.

You will not have to pay the £175 court fee if you are currently receiving benefits including income support, jobseekers allowance or working tax credits (as long as you are not also receiving a child tax credit).

Also the court fee will not be payable if your annual income before tax and other deductions falls below certain levels. For example below £13000 if you are single with no children or £18000 if you are a couple.

However whatever your personal financial circumstances you will always have to pay the bankruptcy cost of £525.

How to pay for the bankruptcy fee

One of the main problems with the cost of bankruptcy is that you simply do not have the money available to pay for it.

Most people have to save the money to pay for their bankruptcy. The best way to do this is to simply stop paying all of your unsecured creditors. The money you would have paid them can then be saved towards paying for the bankruptcy fee.

Of course if you stop paying your creditors or more than a month or two, they are likely to start debt collection actions against you. You should therefore not stop making your payments to your creditors unless you have first taken bankruptcy advice from a debt expert.

Many people borrow the money to go bankrupt. This could be from friends or family.

If you have available credit on a credit card or overdraft facility, you could use this to draw cash to pay for the required fee. This is a perfectly acceptable way of borrowing money to pay for the cost of your bankruptcy.

An alternative to paying bankruptcy costs

If you believe that bankruptcy is the right solution for you but you know that you will struggle to pay the bankruptcy cost then an alternative to consider is a debt relief order.

A debt relief order (DRO) is an alternative to bankruptcy which can be used by people who owe less than £15000.

The effects are similar to bankruptcy but the cost is far less with a fee of just £90.

However the problem with the DRO solution is that you will only be eligible to use the solution if you are not a homeowner. Your other assets must not be worth more than £300 (other than you car which could be worth up to £1000) and your disposable income must not be more than £50 a month.

The cost of extra bankruptcy advice

Even though you have to pay for the cost of bankruptcy, the court will not be able to give you any further bankruptcy help such as about whether bankruptcy is the best solution for you or how to correctly complete your bankruptcy application forms.

It is therefore always sensible to speak to a debt expert before deciding to declare yourself bankrupt and you will normally be able to get good bankruptcy advice for free.

However if you want further help and support throughout the bankruptcy process or with completing your application forms you may well have to pay for this.

Generally speaking you will have to pay around £300 per person for professional bankruptcy help. If you are being quoted more than this you should make sure you speak to Beat My Debt.

Weigh up all the factors

Understandably the cost of bankruptcy can be enough to put you off the idea of using this debt management solution.

However if you are worried about paying the bankruptcy fees it is important to weigh these up against the benefits you will get from going bankrupt overall.

If you have taken bankruptcy advice from an expert debt advisor and bankruptcy is clearly the best solution for you then it may well be in your interests to either borrow or take the time to save for the required fees.

Even if saving takes you a number of months, the outcome of declaring bankruptcy will often be far better for you than starting a debt management plan or IVA which could mean you have to maintain monthly payments possibly for many years.

Do I Have to Go to Court When I File for Bankruptcy?

Everyone who files for bankruptcy has to attend a Meeting of Creditors. This meeting is also commonly referred to as the 341 meeting, because the requirement to attend this meeting arises from Section 341(a) of the United States Bankruptcy Code. The hearing will take place approximately 30 days after the case is filed. Though it is referred to as the Meeting of Creditors, creditors rarely actually appear. However, if creditors do appear they are allowed to ask you questions.

Most 341 meetings last approximately 5 minutes and consist of the Trustee asking a series of standard questions to make sure that your paperwork is accurate and that you have disclosed all of your assets. The meeting is an opportunity for you to make the Trustee aware of any information you forgot to include in your bankruptcy paperwork.

You will be sworn in at the beginning of your hearing and you will be testifying under oath. The Trustee will expect you to be familiar with the information contained in your bankruptcy paperwork, so it is always a good idea to review the documents immediately prior to the meeting. This also gives you a chance to ask your bankruptcy attorney any questions you may have.

Make sure to speak with your attorney a week prior to the hearing to discuss what documentation you are responsible for bringing with you to court. You will need to present a valid picture ID and proof of your social security number in order to testify. Most Trustees will want to see bank statements showing the balance in your bank accounts on the day your case was filed and a copy of your most recently filed tax return.

This may seem very overwhelming to you, but you shouldn't feel scared. An experienced bankruptcy attorney can guide you through the entire process.

Hiring an attorney and jumping through a few hoops is a small price to pay to get a fresh start.

What Is Business Bankruptcy and When Should It Be Used?

Filing for Bankruptcy is a process that can help your business eliminate or repay its debt under the protection of the bankruptcy court. One can file for bankruptcy in order to protect oneself from harassment by creditors, and in many cases have part of the debt discharged. It also gives struggling borrowers a chance to reduce losses and reorganize finances. Business bankruptcies are usually described as either liquidation or reorganizations depending on the type of bankruptcy that is needed.

A business becomes bankrupt when it cannot pay its bills. The company can declare itself bankrupt when it feels that its cash flow is not going to be able to pay off all creditors. In most cases, the business's financial status seems hopeless and there is likely no chance of recovery. It is advisable for a business to file for bankruptcy rather than wait to later have creditors impose an involuntary bankruptcy. In such cases, chances are that the creditors may impose a lien on assets that the business's owners must pay. A lien is agreement in which the creditor or bank gets the right to sell the mortgaged or collateralized property of those who fail to meet the obligations of a loan contract.

Types of Business Bankruptcy:

Business Liquidation - Chapter 7

Chapter 7 bankruptcy is also known as liquidation. When the debts of the business are so overwhelming that restructuring of them is not feasible, it is advisable to opt for Chapter 7, or liquidation. It may eliminate unsecured debt like credit cards, medical bills, loans, and utility bills. Student loans, DUI personal injury judgments, trust fund penalties and taxes, and child support cannot be eliminated via Chapter 7.

An attorney or certified public accountant will act as the Chapter 7 trustee, whose job it is to gather your assets and funds and distribute them to creditors. In some cases, you may be able to hold on to some or all of your assets. Your home, 401K, IRA, pension, and cash value life insurance funds are generally exempt from being seized in bankruptcy and are not factored into any payment plan that you may be required to complete to retain control of your assets. Businesses are not protected from being seized by the trustee. Therefore a Chapter 7 is not always the appropriate bankruptcy for self-employed individuals.

Once the assets are distributed and the trustee is paid, a business owner receives a "discharge" at the end of the case. A discharge means that the owner of the business is released from any obligation for the debts. However, partnerships and corporations do not receive a discharge.

Business Reorganization - Chapter 11

Chapter 11 is a better choice for businesses that may have a future. Here the company reorganizes and continues in business under a court-appointed trustee. The owner of the company may actually be the trustee. The company files a plan of reorganization outlining how it will deal with its creditors who vote on the plan. If the court finds the plan is fair and equitable, they will approve the plan. Reorganization plans provide for payments to creditors over some period of time that may exceed twenty years. Chapter 11 bankruptcies are exceedingly complex and not all of them are successful.

Personal Bankruptcy - Chapter 13

Chapter 13 bankruptcy refers to personal bankruptcy. It may stop foreclosure and act as a foreclosure defense to provide you time to repay your secured debts (like your home mortgage or car loans). This Chapter is also known as the wage earner's bankruptcy. If you make more than the state median income, you may be required to file Chapter 13 instead of Chapter 7. Also, if your personal assets are involved with your business assets, as they are if you own a sole proprietorship, you can avoid problems such as losing your house if you file for Chapter 13 instead of Chapter 7.

In this type of bankruptcy, you have to file a repayment plan with the bankruptcy court detailing how you are going to repay your debts. This plan is usually for three to five years, and for it to be approved, you must pass a liquidation test that guarantees payment to the unsecured creditors of at least as much money as you would have received if your assets were sold and distributed in a Chapter 7 liquidation. The amount you will have to repay depends on your earnings, the amount of the loan and the property you own.

What are your options for getting help?

There are many bankruptcy lawyers and bankruptcy law firms that can help you in order to file bankruptcy. They specialize in all legal and corporate matters related to bankruptcy. A bankruptcy attorney can also help negotiate with creditors and prevent common mistakes that can lead to bigger problems in the long run. With knowledge about the Fair Debt Collection Practices Act (FDCPA), an attorney can protect you against creditor harassment - such as being sent a threatening collection letter, ensure that you're not being abused, and give you tips on staying ahead financially after you are discharged.

Apart from that, there are also some organizations that help you guard against harassment by creditors. The Federal Trade Commission (FTC), a consumer protection agency, enforces the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to collect debt from you. The Act specifies the guidelines under which you can collect debt.

Mortgage Loan Modification, or mortgage modification, can help lower your mortgage payments, make them affordable and keep the roof over your head intact. With the loan modification, you can modify the terms and conditions of a loan, find a reprieve, avoid foreclosure, and even stay in your home. On the other hand, another option is that a loan modification, which is an adjustment in the original terms agreed upon by the lender and the borrower, like interest rates, principal owed and length of the loan. A loan modification is generally filed when the home owner is not able to make a payment or when the lenders does not have proper paperwork.

A loan modifier can help you get a mortgage loan modification and help you avoid foreclosure. Therefore, hiring a loan modification attorney is the right step in the right direction for people facing financial troubles.

Finally, you can receive tax help from your tax problems by means of a tax attorney, which can be used in certain instances to reduce your debts. Certain income tax debts are eligible for discharge under Chapter 7 or Chapter 13 of the Bankruptcy Code. Not all tax debts can be discharged; however utilizing tax lawyers or tax attorneys specialize can greatly increase your chances of reducing extensive debts that maybe owed.

How Do I Go About Declaring Bankruptcy?

The legal process of petitioning for your own Bankruptcy has a number of important stages.

The first stage is to speak to a registered debt charity, such as those listed at the bottom of this article, as it may be that Bankruptcy is not your best option. They will access your financial situation in detauil for free. They will then talk to you about all of the alternatives available to you and recommend which solution they believe is right for your situation. It may be that you qualify for a Debt Relief Order or an Individual Voluntary Arrangement, which may be much more suitable for your situation depending o your level of debt and whether you have any assets (such as a property) to protect.

If an advisor agrees that declaring bankruptcy is the most appropriate solution for your circumstances then you need to complete a bankruptcy petition form, which is your official appeal to the court to be made bankrupt, and a statement of affairs, which contains an in-depth assessment of your financial details and the reasons for getting into debt. The forms are both available to download online at the insolvency service (the official regulator of the insolvency industry) website or is obtainable from your local county court.

Petitioning for your own bankruptcy can cost as much as £622, which is made up of three separate costs:

A court fee of £150 (although you may not be required to pay this if you're in receipt of income support). Bankruptcy deposit of £450. A fee of £12 to swear the affidavit if you're petitioning at the High Court in London.

When declaring bankruptcy you must attend court for a bankruptcy hearing (generally, you should petition at your local court, which is the place where you've lived or worked for the last six months).

After the court has listened to your petition, one of the following outcomes:

A stay in proceedings - the bankruptcy hearing is put on hold until more information is gathered that may be material to the proceedings Decline bankruptcy in order to appoint and Insolvency Practitioner to administer an IVA Decline bankruptcy petition in favour of an Administration Order Decline bankruptcy and refer you to an Approved Intermediary for a Debt Relief Order Bankruptcy Order (which means the petition has been successful)

In theory, the court is supposed to weigh up whether declaring bankruptcy is your best option or whether there are more suitable alternatives. However, in practice, the judges tend to nod them through as county courts are generally overstretched. That's why it's so important that you take impartial advice, you can't rely on the judge to tell you whether you're making a mistake.

Once the Bankruptcy Order has been granted, the court will appoint a Trustee in Bankruptcy to manage your financial affairs. This will be either the Official Receiver or an appointed Insolvency Practitioner.

- National Debt Helpline (0808 808 4000)

- Debt Advice Foundation (0800 043 40 50)

- CCCS (0800 138 1111)

Debt Management In Bankruptcy

Bankruptcy can be a great tool to help alleviate large debt burdens, but there are cases in which people do not find it as useful as they originally thought. The reason is because most people don't know very much about the process and make assumptions as to how the process can help. No two people's financial situation is the same, and neither is the risks or potential benefits associated if the decide to file for bankruptcy. Much confusion can be avoided by learning a few things about the bankruptcy process.

Types of Debt

A common problem people run into when they file for bankruptcy is finding out that a particular debt is not eligible for discharge. Not all debts are the same and different types of debts are handled very differently in the bankruptcy process. For example, there are two main types of debts that are managed in bankruptcy: secured and unsecured. A secured debt is one that is secured against an asset as collateral. These are debts such as a mortgage or car loan, in which the house and car are put up as collateral against the loan in the event of default. An unsecured debt is one that is not secured against any collateral. These are debts such as credit cards, medical bills and other loans, in which are only given in return for the promise of repaying the debt.

A secured debt is more difficult to have discharged in a bankruptcy than an unsecured debt. This is because the creditor maintains the legal right to repossess the asset if the borrower defaults on the loan. To have a secured debt discharged in a Chapter 7 bankruptcy, the borrower is generally required to turn over the asset to the creditor in exchange for being relieved of the debt liability. However, if the borrower intends to keep the asset, they would only be able to have the debt discharged under a Chapter 13 bankruptcy. The borrower would be required to repay the debts in the Chapter 13 case if they are to be eligible to keep the asset.

Unsecured debts are the most common type of debt filed for discharge in bankruptcy. In general, unsecured debts can be easily discharged under either a Chapter 7 or Chapter 13 bankruptcy. The difference being whether or not the filer qualifies for Chapter 7 debt elimination or is required to file for Chapter 13 instead.

Debt Discharge Exceptions

There are a few types of debts that are difficult to manage in bankruptcy and may not even be eligible for a discharge. Tax debts, student loan debts and domestic support payment debts can greatly complicate the bankruptcy process. However, a good rule of thumb is that the only type of discharge these debts would qualify for is a Chapter 13 repayment plan. There are bankruptcy laws that prohibit these types of debts from being discharged under Chapter 7 and are usually required to be repaid, at least in portion.

What Happens When You File Bankruptcy - Are You Doomed?

Knowing from personal experience when someone is contemplating whether to file bankruptcy or not the perception of I will not be able to get any credit forever, these goes the thoughts of every buying a house. And of course there is the option of Chapter 7 or Chapter 13. What is the difference?

Chapter 13 is when there is NO chance or climbing out of debt, millions of Americans got caught up in the mortgage collapse since 2005. Million of Americans lost there homes when the mortgages went upside down with no chance of every reversing itself to right the major collapse we have experienced.

For those who were counting on the equity in their homes we also devastated but not only losing a house but also your nest egg all at one time. Partner that with person loss of a job or business closed down or perhaps a divorce you would be a perfect candidate for Chapter 7 and a whole new start.

Once bankurtupcy is filed it will take a year or to before you are able to get a low credit limit card and start to rebuild your credit, it has taken me now in my third year after filing and also paying a low credit limit card (and annual fee as well $59 and is what you have to pay to get the ball rolling any times, to me a small price to pay to get your credit back on track.

After 18 months of paying before the due date and also paying off the balance (no interest as well) my credit score went from 525 to 625 in that year, now I just got a no annual fee Capital One card with a $2000 limit and my credit score jumped to 675 (consider good credit) all  within a matter of 2 years.

The best part of course is starting over.  Whether its from a failed business, failed marriage or your mortgage that went underwater, you are able to get a new start and get rid of what has happened to over 100 Million Americans over the past 6 years and move forward and start over.

Chapter 13 is for situations that allow for concessions to lower payments on debt if there is a chance to pay off the creditors. Chapter 13 is much more compliance and very strict guidelines must be followed as well.

Filing bankruptcy cost will vary greatly as well, I have found here locally in Detroit the average fee with court cost will be around the $1000 area. Chapter 13 with be considerably more, as always check with a bankruptcy attorney (I would talk to at least 2) and find out exactly what option may be best for your situation.

Benefits of Filing Bankruptcy - How Can You Get a Fresh Start With Bankruptcy?

Are you confused about the bankruptcy process? Take the mystery out of the bankruptcy process by learning the true facts. Thousands of people in every state in the country have found bankruptcy to be the relief they need to start over with their financial situation. Contrary to what people think, bankruptcy doesn't mean giving up everything you own. The only way to find out the real truth about the benefits of filing bankruptcy is to talk to someone who has experience in bankruptcy law. Many of them offer free consultation and will share their knowledge to help you decide what is best.

Unfortunately, many people suffer with stress and go without necessities just because they are not aware that filing bankruptcy can breathe new life into their financial situation. Bankruptcy can actually help you get rid of the very bills you are struggling to pay. In fact, choosing the right bankruptcy plan can put a stop to harassing collection activity. Most people are able to retain their cars, homes and other assets. A bankruptcy attorney will look at your individual circumstances and assess whether a Chapter 7, which discharges debt, or a Chapter 13 is best for you to and show you the benefits of filing bankruptcy.

The benefits of a Chapter 7 bankruptcy include discharging unsecured credit such as credit cards and unpaid medical bills. Once these debts are discharged through bankruptcy the debtor no longer owes the debt. A Chapter 13 bankruptcy is actually debt restructuring. Debtors who own houses or cars use Chapter 13 to make much more affordable payments on their assets without having to give them up. This restructuring has helped people to avoid foreclosure on their homes and repossession of their automobiles. All over the country people have sought bankruptcy protection when all other methods of debt resolution have failed. After filing for bankruptcy debtors have been able to live normal lives without the constant fear and harassment that comes with unpaid debt.

Perhaps your situation calls for a Chapter 7 bankruptcy to eliminate unsecured debt and make a new financial start. Or maybe your family's shelter or transportation is at risk because unforeseen financial problems. Don't let debt continue to affect your quality of life. Whatever your situation, a free consultation with a bankruptcy attorney can set you on the path to a brand new beginning. To find out the benefits of filing bankruptcy and to get rid of your debts get help now.

Insolvency and Bankruptcy

Many people do not understand that insolvency is different from bankruptcy. Insolvency means that a person or business is no longer able to pay their bills--it does not imply that legal actions are taking place to relieve existing debts. However, insolvency is often cited as the main reasons that businesses choose to file for bankruptcy.

There are two kinds of insolvency. The first is termed "cash flow insolvency" because there is not enough income coming in at any given time to make payments on debts. Businesses with this type of insolvency can sometimes recover quickly if their cash flow situation changes. Businesses with "balance sheet insolvency" may have a more difficult time with recovery. This term usually means that there are "negative assets," meaning there is no money available to make necessary payments.

If this form of financial difficulty occurs for a period of time, actions will have to be taken. Depending on the amount of debt and the current situation of the company, debt negotiation or bankruptcy may be necessary.

Debt negotiations may result in "business turnaround" or "business recovery." These are terms associated with a business that is able to successfully overcome their financial problems and make payments while avoiding bankruptcy. However, for other businesses, bankruptcy is by far the best option. Many businesses will recover from bankruptcy and after a period of time, they may see their business blooming instead of collapsing.

Since the laws regarding debt negotiation and bankruptcy are complicated, it is important to speak with an experienced attorney to determine what the best options are for your business.

Discharging Loans In Bankruptcy

When it comes to having certain debts discharged in bankruptcy, many people assume that all loans are handled the same. In fact, the opposite is quite true. There are big differences between types of loans and how they are managed in bankruptcy. Even certain types of loans are not handled the same depending on who the lender is, which is why getting to know how bankruptcy is applied to loans can be very beneficial.

Unsecured Loans

Many personal loans and most credit cards are considered unsecured loans. The term "unsecured" refers to the fact that the loan is not secured against anything as collateral. In other words, the loan is given in return for the promise to repay the debt. Since there isn't anything secured as collateral against the loan, these debts can be easily written off by the creditor or managed in bankruptcy.

The majority of the debts handled in a bankruptcy case are unsecured debts. These debts are the main focus of a Chapter 7 bankruptcy and usually result in being written off by the creditor or satisfied in some other way. Unsecured debts are not usually the main focus of a Chapter 13 repayment plan, but can be rolled into the plan if the court deems necessary.

Secured Loans

The term "secured" refers to the fact that the debt is secured to the loan by a particular asset. Mortgages, car loans and title loans are all examples of secured loans. When a borrower defaults on a secured loan, the creditor is legally eligible to reclaim the asset and liquidate it in effort to satisfy the debt owed. The legally secured status makes secured debts more difficult to manage in the average bankruptcy case.

Secured debts are mostly handled through Chapter 13 bankruptcies because the debt must be repaid in order for the borrower to maintain possession. For example, it is not possible to have mortgage debts written off or completely eliminated in a Chapter 7 bankruptcy. However, a borrower would be able to stop a foreclosure and keep a house if they repaid their mortgage debt through a Chapter 13 repayment plan. There are some exceptions to this rule. Second mortgages or home equity loans, although secured, may be eligible to be eliminated through Chapter 7 as long as the remaining mortgage debts on the original loan are repaid.

Payday and title loans are usually secured loans, but are more difficult to manage in bankruptcy. The reason is that a payday or title loan typically uses the deed to a house or car as the collateral against the loan. This essentially creates two different lenders who maintain a legal right to liquidate the asset if the borrower defaults on one of the loans. Therefore, if a person enters bankruptcy with their car loan lender and a title company lender both having legal claim over the car; the bankruptcy process must then determine which lender is eligible for asset liquidation or entitled to a portion of the profits.

Absolutely Critical Pre-Bankruptcy Planning

When you file bankruptcy an estate (legal entity) is created, 11 U.S.C. §541. Property of this new estate includes all your legal or equitable interests in real and personal property at the commencement of the case. Additionally, the new estate includes all legal or equitable interest in property acquired within 180 days of filing bankruptcy that is acquired:

by bequest, devise, or inheritance; as a result of a property settlement agreement with a spouse, or of an interlocutory or final divorce decree; or as a beneficiary of a life insurance policy or of a death benefit plan.

According to bankruptcy attorney Scott Blotter, "Property in a Chapter 13 estate is not limited to property "as of the commencement of the case" but includes any interest you acquire after commencement of the case but before the case is closed, dismissed, or converted. Chapter 13 property also includes earnings from services performed after filing your bankruptcy and prior to closure, dismissal or conversion of your case."

It is interesting to note that 11 U.S.C. §541 specifically excludes ERISA qualified retirement plans. This means that most 401ks and other similar plans are not included as property of the bankruptcy estate. They are not available for the trustee to take and distribute to creditors.

Utah also has several exemptions that protect property from being taken by the trustee. The Utah exemptions are found in the Utah Code Chapter 23 Title 78. Some of the key exemptions include:

1. You may have up to $20,000 equity in your primary personal residence. If you spouse is also on title to the property, you each may have up to $20,000 equity ($40,000 total). The property must be located in Utah and is limited to the house and the surrounding land up to 1 acre.

2. You may have up to $2,500 equity in any one vehicle. Your name must be on title to the vehicle.

3. There is a $500 exemption for each of the line items listed below:

Sofas, chairs and related furnishings Dining and kitchen tables and chairs Animals, books, and musical instruments; and Heirlooms or other items of sentimental value.

4. A $3,500 exemption for professional books or tools of the trade

5. Some exemptions that do not have a dollar limitation are:

Burial plot Washer and dryer Fridge Freezer Stove Microwave Sewing machine Clothing, and Beds and bedding.

There are additional exemptions available. I recommend that you review your case with an attorney to determine the applicability of the foregoing exemptions and what other exemptions may be available to you. In order to claim Utah's exemptions, you must have lived in Utah for two years prior to the commencement of your case. If you have not lived in Utah for the two years prior to filing your case you will need to use either another state's exemptions or the federal exemptions. Again, consult an attorney to determine which exemptions apply.

In Utah there is no exemption specifically for cash. So any money you have that is in a regular checking or savings account is property of the estate and the trustee will likely require you turnover to him the balance in your accounts on the day you file. Tax refunds also are not exempt and you may be required to turnover your tax refund to the trustee (even if you haven't received it yet). The trustee will keep your case open until s/he receives your tax returns and the pro-rated amount of your tax refund that is property of the estate.

The filing of a bankruptcy is like ringing a bell, once the bell is rung you cannot un-ring it. Once you file a bankruptcy, your bankruptcy estate has been created and you cannot change it. So, it is of paramount importance that you review your assets and the available exemptions prior to filing your bankruptcy. By so doing, you can marshal your assets to minimize the items taken by the trustee.

Get Your Life Back Through Auto Financing With Bankruptcy

Bankruptcy happens. This is a fact of life. A person, or even a big company, can be successful at one point and then declare bankruptcy after a few months or years. However, life does not stop with bankruptcy. After losing everything, one should focus on getting everything back. One way of rebuilding yourself and your credit ranking is through companies that offer auto financing with bankruptcy. Although most people would think that it is difficult to get a car loan after bankruptcy, a lot of companies, including those that specialize in bad credit car financing, are willing to take the risk and give another chance to people who suffered from this unwanted burden.

Is there Really Life after Bankruptcy?

A lot of us feel that after bankruptcy, we cannot get back everything that we have lost, and we cannot have the life we used to have. This is not the case, however. All of us starting building our credit score from nothing, and this is just exactly the same thing. Thanks to companies offering auto financing with bankruptcy, we can start our lives all over again.

After getting a stable job, it's probably time to start getting our life back; and auto financing with bankruptcy is a great place to start. First, though, make sure you really know your credit standing. Before getting in touch with companies that offer auto financing with bankruptcy, make sure that you do not have any unsettled bills or accounts. You can easily confirm this by getting a free credit report from any of the credit bureaus.

After making sure that you know your credit standing, you can now start looking for the best company that offers auto financing with bankruptcy. Most of these companies are competent in handling this special situation, and you are better off explaining to them your entire situation at the moment. That way, they will understand your situation and will choose the best terms of payment that will suit your needs.

Choosing the Right Bad Credit Card Financing Company

In choosing which company would best address our need for a new car, we should have extensive research as to which companies excel in the field of bad credit car financing. We would need to check the company's reputation in terms of addressing it's client's needs. We should also spend some time to determine how much risk the company is willing to take in the aspect of bad credit car financing. Lastly, we should be aware which bad credit car financing company offers the most competitive interest rates. Although it is an accepted fact that interest rates are relatively higher for people that have bad or no credit review, we should still look for the company that offers the lowest rates given the circumstances.

Life does not stop with bankruptcy. Thanks to companies that offer auto financing with bankruptcy and bad credit car financing, we can start to rebuild our lives once more. After looking for a job, we can now start by getting the car that we need and prefer. After successfully getting our dream car, we can start our travel on the road to success.

When to File for Bankruptcy - 5 Sure Fire Options You Must Explore Before Filing for Bankruptcy

As a credit consultant, my clients always ask me when to file for bankruptcy. As a result, I advise them to file only when you have exhausted all of your available avenues such as talking with your credit card company, car, and mortgage lenders and your student loan representative about the various options you have to explore. You should also look into Consumer credit counseling organizations, debt consolidation, balance transfers and taping your savings and investments. If none of these options worked, and your debt exceeds your annual salary, then it's time to talk with a bankruptcy lawyer. Moreover, you must look at your advantages and disadvantages to filing.

When to file for bankruptcy option 1 - Credit cards

Talk with your lender and see if any of the following options are available.

Having your interest and payments reduced Changing your payment dates. Qualifying for a hardship program Suspend payments until you get caught up Settling your debts for 20% on the dollar

When to file for bankruptcy option 2 - Car

Before you get to behind on your car payment, see if the bank will let you do any of the following:

Move your late payments to the end of your loan Refinance the car for a lower payment and interest rate Participate in a hardship program

When to file for bankruptcy option 3 - Home

Talk with your lender to see if they can help you in any way. You can also do the following:

Try to get your payments reduced and suspended Contact your local housing authority for help Try refinancing Selling the home

When to file for bankruptcy option 4 - Student Loan

Since the student loan can't be discharged in bankruptcy, talk with a representative at the student loan center and try some of the following options:

Request a deferment Apply for a forbearance See if you qualify for the income sensitive program

When to file for bankruptcy option 5 - Credit Counseling

Schedule an appointment with credit consumer counselor. The CCC is a non-profit organization that assists consumers who are in financial trouble. Here is what they will do for you:

Help sort out your financial problems Provide credit education Help you with a budget Provide you with a plan to get out of debt Set up a payment plan for you Negotiate with creditors on your behalf Reduce interest rates and get late fees removed

Concluding, as you can see there are many options you can explore before making the decision to file BK. Just because you are over you head in debt does not mean you should think about BK. Bankruptcies stay with you forever so keep that in mind along with the information you learned in this article. Now that you are empowered with new information, please make the right choice.

How and Why to Avoid Bankruptcy

Bankruptcy was put into place by the US government for a reason. While many people are afraid of the implications that come with filing for bankruptcy, the fact remains that it has helped countless people over the years to be able to settle their debts and move on with their lives. However, bankruptcy is not the right choice for everyone, and there are many reasons to avoid it if at all possible. If you do file for bankruptcy, you credit will take a huge hit - on average it will be lowered by 200-250 points and will remain that way for up to 7-10 years. It is also possible that you could lose your home, car, or other assets, and because of your lowered credit score it will be impossible for you to buy, possibly even rent, a new home and car. Additionally, depending on your state's laws, your retirement plans may also be put at risk.

One way to avoid filing for bankruptcy is to ask your creditors for help. Creditors can be extremely difficult to work with, but they will always want to get some money from you rather than none at all. Most banks and credit card companies have programs in place intended to help those who find themselves on hard times. If you contact your creditors and let them know that you sincerely want to pay back your debt but are in a tough financial situation and trying to avoid bankruptcy, they may be able to help you by lowering your monthly payment or decreasing your interest rate, possibly even both.

Another way to avoid bankruptcy is to come up with a budget for yourself and a payment plan for your debts. Many people don't know that if they do file for bankruptcy and fail the means test, they will still be required to pay back their debts. (A good way to know if you will fail the means test is to consider whether you are currently making more money than the average person in your state, although this is not always a good indicator). If you can sell some of your assets to repay some of your debts, and come up with a plan to pay the rest, you will be doing the same thing the courts would have forced you to do, and you will have saved your credit score. You may have to stop eating out, cancel your cable, even turn off your cell phone, but when your debts are paid off it will most certainly be worth it.

Finally, if you have exhausted all other efforts, you may want to consider debt settlement. Debt settlement is something that should usually be avoided, but is a much better alternative to bankruptcy. A debt settlement program is where you negotiate with your creditors to lower your debt, and you may choose to do it on your own or with the help of a professional settlement service. A professional may be able to help you a better settlement, but they will also take up a lot of extra time and money so weigh your options before you call one.

Information on Filing Bankruptcy in Oklahoma

Although the bankruptcy code is consistent throughout the United States, there are certain variations that occur on a state by state basis. For example, while some states only have one bankruptcy district, Oklahoma has three. While there is no specific way to know whether or not you should file for bankruptcy, there are several things you should consider beforehand.

If one or more of these apply to you, you may want to consider filing for bankruptcy:

- You cannot afford to pay your mortgage

- You have extensive medical expenses

- You have lost your job and have little chance of replacing lost income

- You can only afford to pay the minimum payment on credit cards and loans, if at all

- You are receiving notices from creditors that your bills are past due

However, while this may seem like a way to do away with your financial problems, there are still certain debts that will remain even if you do successfully file for bankruptcy in Oklahoma, including:

- Most recent back taxes

- Student loans

- Alimony and child support

- Fines owed to federal or Oklahoma government agencies

- Recent cash advances

- Luxury items of more than $550 purchased within 90 days of filing

- Debts accrued due to fraudulent activity

If you do decide to file for bankruptcy in Oklahoma, there are certain characteristics of bankruptcy courts in Oklahoma that you should be aware of. Bankruptcy courts are actually part of the federal court system but each state has at least one bankruptcy district. Oklahoma has three bankruptcy districts located in Tulsa, Okmulgee and Oklahoma City, each of which serves several counties in the state.

Each of these districts has its own set of local rules which govern certain procedures, including the court's procedure for filing documents. Therefore, it is necessary to consult the rules for the appropriate court before preparing to file for bankruptcy.

For example, in Oklahoma, one of the three districts require documents to be filed electronically while the other two accept paper documents. In Oklahoma, you can file for bankruptcy under either Chapter 7 or Chapter 13. Chapter 7, also known as "liquidation," is available to individuals, married couples, corporations and partnerships and ultimately wipes out all debts except those listed above.

A Chapter 13 bankruptcy functions by setting up a repayment plan to pay back debts over time. Under the Bankruptcy Form Act of 2005, a means test has been put into effect which determines eligibility. This test requires a Chapter 7 debtor to earn below the state median income for his household size in order to qualify automatically for Chapter 7 bankruptcy.

For those who do not qualify for Chapter 7 bankruptcy, will be required to file for Chapter 13. Chapter 13 bankruptcies can be filed by individuals or sole proprietors in order to pay off all or part of their debt according to a three to five year payment plan. This course of action allows debtors to reorganize their debt so that they have time to pay it off. In order to file a Chapter 13 bankruptcy, the debtor must have a stable income with no more than $1,010,650 in secured debt and $336,900 in unsecured debt.

The proposed payment plan for a Chapter 13 bankruptcy must provide for the payment of all priority claims in full over the course of three to five years. There is important information you must be aware of and specific procedures to follow when filing for bankruptcy.

These procedures differ state by state and may affect your eligibility for filing for bankruptcy. If you are considering filing for bankruptcy in Oklahoma, you should contact an Oklahoma bankruptcy attorney in order to learn all the information necessary to make this decision.

Filing For Bankruptcy Gives Relief From Fear and Stress

The uncertainty of today's economy is creating a lot of stress for many individuals. Experiencing fear from being in debt can be debilitating. Focusing on just the debt will lead to anxiety, not allowing an individual to see the light at the end of the tunnel. Sitting under a mountain of debt can cause depression in all aspects of a person's life, even causing trouble at work. People in this situation need to look for the bright side and have hope to find a solution for the problem. Filing for bankruptcy can provide the relief for someone that is drowning in debt. Having hope will help rebuild their financial lives being debt free and getting a second chance.

Many people first in a rut, only paying the minimum payment each month on their credit cards, as the balance continues to grow beyond control. Those who are fortunate enough to still have a job in this weak economy are struggling paycheck to paycheck to make ends meet because their credit card interest is gobbling up any extra money they might have. The news has been reporting that spending will get the economy back on track helping everyone. Take a look around at your neighborhood strip mall and you'll see all the empty shops with for rent signs. Many local businesses around the country are also in bankruptcy. The entire country is suffering the same pain that is shared by many in your own neighborhood.

It's no big secret, if you're under extreme stress because of your finances, you probably need to file bankruptcy. Financial problems are terrible, but they are real. Financial problems are probably the number one cause of divorce. Don't let the stress of financial problems ruin your entire life. Most people are completely emotionally exhausted by the time they come to the realization that they need to hire a bankruptcy attorney. If more people were pro active about filing bankruptcy and not waiting till the last shoe to drop, they might not lose so much sleep. When an individual waits too long to file bankruptcy they can suffer marital problems and even health problems because of the stress of their financial dilemma. A good piece of advice is to be preventative and don't let financial problems interfere with what's truly important in your life. Before things get out of hand, contact a bankruptcy attorney to find a solution for your financial meltdown. Many people talk about the relief they feel after filing for bankruptcy. Stopping the creditors from coming after them is like lifting the weight of the world off their shoulders. People usually don't hesitate to see a doctor when their sick, so it's important not to wait too long to see a bankruptcy attorney if you're in severe debt. After filing for bankruptcy and getting your life back on track, you can keep your focus on the most important things in your life.

Why Some People Are Hesitant To File Bankruptcy

Considering the difficult economic climate these days, people from all walks of life are contemplating bankruptcy as a viable option. The most common forms of bankruptcy that most people consider are Chapter 7 and Chapter 13 bankruptcy. In a nutshell, a Chapter 7 bankruptcy is where the debtor can discharge all unsecured debts like credit cards, payday or personal loans, and medical bills. Any non-exempt property can be sold to pay off the debts, but this rarely happens if the debtor uses careful planning and hires an experienced bankruptcy attorney. The debtor can emerge from a Chapter 7 bankruptcy virtually debt free. On the other hand, a Chapter 13 is basically a repayment plan where the debtor pays the creditors back over a structured time frame of 3 to 5 years. This is ideal for the debtor that makes too much money to qualify for a Chapter 7 or has property that they want to keep such as a home.

Filing bankruptcy also offers the all powerful legal tool called an automatic stay. This is where all creditors are prohibited from any and all contact to the debtor during the bankruptcy. This is a huge benefit for the stressed out debtor who may have endured months of abuse from extremely aggressive debt collectors.

So why does filing bankruptcy carry so many negative stigmas that delay or deter so many from actually filing? Many of the reasons have to do with a lot of bad or false information floating around out there. Here are some just to name a few of the most common.

Creditors- The creditors are not your friends. They will tell you that if you don't pay them you will be put in jail. They will tell you that you will never get credit again after you file or that you will never be able to get a mortgage and own a home. This is simply not true. The US no longer has debtor's prisons and after you receive your discharge many start receiving offers for credit cards within months. If you are diligent and pay your bills on time you will find that within a few years you will be able to purchase a car or a home as well. Creditors will say anything to scare debtors into paying them.

Bad information on the internet- Many people searching for answers turn to the internet. This is certainly a powerful tool to gain information. However, people must beware when searching for information that they turn to reputable sites for answers. The internet has a lot of bad information as well as accurate facts. The bottom line is, after your initial search, you should always follow up with an experienced bankruptcy attorney to ask any further questions and discuss your options.

Family and Friends- While family and friends can be a trusted source, they may not always know the truth themselves. You will hear stories of how someone they know had to file bankruptcy and had a horrible outcome and lost everything. This may not be the truth of the entire situation. Many people exaggerate and distort the facts even though you think they have your best interest at heart. Again, the bottom line is to consult with a bankruptcy attorney for clarification and to discuss your options. When it comes to the complexities of the bankruptcy laws, it is always a wise decision to speak with an expert for the best possible outcome.

Is It True That Chapter 7 Bankruptcy Is Better Than Chapter 13?

Filing for Chapter 7 bankruptcy when unsecured debt becomes overwhelming, is often the only feasible option. When an individual is paying the minimum on large credit card balances it will take years to reduce the principal. If that person either loses their job, or accrues huge medical bills, the situation becomes insurmountable. The debtor is left with two choices; filing for bankruptcy under Chapter 7 or Chapter 13. Which option is best?

First, it is wise to consult with a bankruptcy or debt relief attorney to see which path you qualify for. The size and scope of your debt will determine what you are eligible for.

About Chapter 7 bankruptcy:

• Commonly used when the debtor has little personal property and no liquid assets.

• The person or couple has little money left over after paying only their basic living expenses.

• Most unsecured debts can be covered under Chapter 7 and can be fully discharged. One exception is student loans that are government backed.

• A person can keep their furniture, car and any other items that are necessary for a normal life. They may be able to keep their home or stay in it longer.

• It is a fast moving process and debts can be completely discharged after only a short period of time, usually only a couple of months.

• Creditors must cease communication during the time they are awaiting discharge. Harassing phone calls end.

Chapter 13

• A person has significant equity in their home and wishes to keep it.

• They are able to pay their living expenses but cannot keep up with the scheduled payments of their other debts.

• The debtor is allowed to keep their home and personal property while the debts are spread out and dispersed to creditors by a trustee or administrator.

• Generally the debts are allowed to be paid off over a three- to five-year period as directed and controlled by the appointed trustee.

• During the extended payback period, a single monthly payment is made to the trustee. During this period creditors are restricted from any communication with the debtor.

Both chapters 7 and 13 stay on a person's credit report for a period of seven to ten years. This may seem like a long time to carry around a negative mark on one's credit history; however, if you consider the alternative - that a person with a $25,000 credit card balance who is paying the minimum payments will take ten years or more to pay it down and will probably miss payments along the way - bankruptcy is not a bad way to go. The person who files either chapter has a fresh start. The Chapter 7 filer has an immediate reprieve and the Chapter 13 filer has a restructured payment plan, but both are able to start rebuilding their credit immediately.

With the available cash that is freed up, a savings account at a bank or credit union can be opened. Depositors can use the balance to take out a secured credit card with that institution. As long as they pay the entire balance on time every month, their good faith will be reported to the three credit reporting agencies; Trans Union, Equifax and Experian. This will begin to raise their FICO score. Other banks will take notice and credit offers will begin pouring in. The wise person will ignore them until they can get an unsecured line where they already bank.

For Chapter 7 or Chapter 13, an experienced bankruptcy lawyer can determine who is qualified, but the basic guidelines are:

• Chapter 7- A person or couple must qualify through a means test which determines their income to debt ratio. They must seek qualified credit counseling prior to filing.

• Chapter 13- An individual whose unsecured debts are less than $360,475.00 and secured debts less than $1,081,400.00 is qualified.

An attorney can help a person file for protection under either chapter of personal bankruptcy. Once filed, a debtor feels a new freedom that would not have been realized for many years, if ever, by the person struggling with mountains of unsecured debt.

Is Chapter 7 bankruptcy better than Chapter 13? Chapter 7 has immediate discharge while Chapter 13 is a debt restructuring. Chapter 13 has a very high failure rate due to lack of self discipline among filers. It appears that Chapter 7 is the best choice, if choosing is even an option, but let your attorney help you make the right choice. In some cases it might be neither with debt consolidation or settlement as the best option. That is why the credit counseling is required. In New Jersey debt settlement companies are required to be nonprofit organizations.

Bankruptcy - Chapter 7 Discharge

1. What is the purpose of Chapter 7 Bankruptcy Discharge?

The Chapter addresses the proceedings in a Bankruptcy Discharge. It is rather simple though. First, you need to file an application for bankruptcy, which may be voluntary or involuntary as mentioned before, to the court. The court, upon receiving the application, shall appoint a Liquidator (or a Trustee of Assets as other called in the U.S.).

This Liquidator then shall perform actions to sell off all the non-exempt assets of the applicant but retains the assets which are essential to the survival of the insolvent person. This proceeding shall only be commenced when the Schedules and Statement of Financial Affairs are officially made and duly signed by all related parties.

After such documents are signed, there will be a meeting among creditors in which, all the trustees and creditors may raise questions that the debtor is subject to answer under oath. This is called The 341 Meeting. Within 60 days upon the 341 Meeting, the creditors or trustees may raise objection to the debtor's right to discharge under Chapter 7. In case of no such objection is raised, the discharge proceedings shall continue.

2. Chapter 7 Bankruptcy Discharge of Debts: Post-Effect

After the proceedings of Chapter 7 Bankruptcy Discharge has been obtained from the Legal Court, all dischargeable debts shall be made void and the creditors cancel all of their legal rights and documents against the debtor. However, there is a common concern among those Bankruptcy applicants that whether the family of the debtor shall be affected by the proceedings? Frankly, the answer is Yes; however, it depends much on the actual circumstances.

In case of a member's discharge of assets, the credit and public records of the other family members shall be hold harmless. Even the neighbors or relatives of the debtor shall not necessarily be informed of the bankruptcy as well. However, credit and public records of the debtor and reporting agencies shall contain notes about Chapter 7 Bankruptcy Discharge and this may have adverse effect on the debtor when he or she goes working or does business in the future. Nevertheless, this blemish shall be deleted after 10 years.

The Top Bankruptcy Myths Answered

We consider some of the key myths that surround declaring yourself bankrupt and find out whether there is any truth in them. As strange as it may sound, declaring yourself bankrupt could be one of the best ways to get out of debt that you simply cannot repay. Once you are bankrupt all of your unsecured debts will be taken away from you. You will no longer have to worry about them and in many circumstances they will be written off. However, despite the advantages that declaring yourself bankrupt might bring, it is natural to be worried about what affect it will have on you and your family. We consider some of these worries and find out what really happens.

If I go bankrupt I will always lose my house

If your own your own home, one of the key worries that you will have about bankruptcy is that you will lose the roof over your head. The reality of bankruptcy is however very different to this. Your house will not be automatically sold from underneath you. The important thing to understand is that your house is only at risk in bankruptcy if you have significant equity in it. Then the official receiver has a duty to your creditors to try and realise this equity which could result in a forced sale. But if you have little or no equity in your property it is likely that you will keep your home even after you are discharged from your bankruptcy.

Bankruptcy means I will lose all of my goods and possessions

This is one of the great myths of bankruptcy. In reality you will be able to keep all of your household goods including electrical equipment and computers. The only time when any of your household goods may be at risk is if they are particularly valuable items which you do not strictly need to keep. For example if you own any valuable antiques you may have to sell these. One area that is important to get a little more bankruptcy help is your car. The standard bankruptcy procedures mean that you are allowed to have a car if you need one. However its value should not be greater than £2000. If your car is worth more than £2000 after declaring yourself bankrupt you may have to sell it and get a cheaper one or sell it altogether if you do not need it.

In bankruptcy will not be able to have a bank account

Many people worry that when they are bankrupt they will no longer be in control of their money or be able to have a bank account. This idea is completely incorrect. After declaring yourself bankrupt you are one hundred percent responsible for managing your money day to day. You will receive your wages and other income as normal and must continue to pay your ongoing living expenses. In order to do this you need a bank account and you are certainly allowed to have one. The problem that you may come up against is that you might be required to change your bank account. Not all of the high street banks will allow you to open a new account with them after declaring yourself bankrupt so it is important to ask how to do this when you are getting bankruptcy advice.

If I go bankrupt my spouse or partner will be liable for my debts

The bottom line is that no-one else can be made responsible for paying your debts. Once you have declared yourself bankrupt your spouse or partner will not suddenly have to pay towards your debt or put any of their income or savings towards them. The only time when a third party will be liable for debt once you are bankrupt is if the debt is already in joint names or they have given a guarantee to pay if you do not. In these circumstances they will still remain liable for the debt after your bankruptcy.

Once bankrupt I will never be able to get a mortgage

It is true that bankruptcy will damage your credit rating. After declaring yourself bankrupt a record of your bankruptcy will be added to your credit file. This record will remain on your credit file for six years make your credit rating worse and make it more difficult to get credit. However the fact that you have been bankrupt in the past does not mean that you can never get a mortgage in the future. When you are discharged from your bankruptcy (after a year) you can start thinking about getting a mortgage if you wish. Of course you need to understand that the mortgage terms you are offered will be far more onerous than for someone with a clear credit rating. However the longer you leave it to make your mortgage application after your bankruptcy ends, the better your chances of getting a reasonable mortgage offer will be.

Get the right bankruptcy advice

Clearly declaring yourself bankrupt is a serious step to take and not something that should be taken lightly. It is therefore always sensible to get bankruptcy help from a specialist debt advisor who can help you understand what bankruptcy will mean for you. It is particularly important to get bankruptcy advice if you are a homeowner. However, having taken the right bankruptcy advice, for many people bankruptcy is really not as bad as you may have thought and could be the best way to solve your debt problem.

What to do next

If you are struggling with debt and are considering bankruptcy, visit http://www.beatmydebt.com. Our experts are available to speak to you about the bankruptcy option and offer further help and advice. Our vibrant online debt forum gives free access to experienced industry experts and others who have suffered with debt problems and have been through the bankruptcy process themselves. Useful guides, calculators and information are also available designed to help you understand how to manage and resolve debt problems.

Bankruptcy Procedure in Canada

Every year, many Canadians find themselves with such an overwhelming amount of debt, and thus the need to file for bankruptcy. Bankruptcy is a legal process that provides debt relief for those who can no longer pay their creditors, allowing them to immerse from bankruptcy with a fresh start. When an individual enters bankruptcy, no unsecured debtor can take action against you - such as initiating collection action or garnish your wages.

In Canada, the only way to file for bankruptcy is through a Trustee in Bankruptcy. A trustee in bankruptcy is licensed by the Office of the Superintendent of Bankruptcy (OSB) to oversee the bankruptcy process. When you file for bankruptcy in Canada, you will first arrange for a meeting with the Trustee in Bankruptcy. You will discuss your financial situation and your available options to debt relief. The trustee will assess you situation and determine if you are a candidate for bankruptcy. If it is deemed that you are eligible for bankruptcy, the trustee will explain both the benefits and the negative results of filing for bankruptcy.

When you and your trustee have discussed the details and if you are a candidate for bankruptcy, you will work with your trustee to complete the required bankruptcy forms. The trustee will then file for the bankruptcy which includes submitting the appropriate documents to the Office of the Superintendent of Bankruptcy. Once filed, you are formally declared bankrupt. Once bankruptcy is declared, the trustee will deal directly with your creditors.

Once filed, the trustee will liquidate your assets, with the exception of those exempted by federal and provincial laws. The proceeds of the sale of the assets are held in trust to be dispersed to the creditors. During the bankruptcy period, you will also make payments to the trustee to be dispersed to your creditors. Payments will vary, and the trustee will calculate the amount you will be required to pay. The payment amount is calculated by factoring in your income, the income standards issued by the OSB, and your personal situation. In addition, you will attend two counselling sessions so that you can learn the cause of your bankruptcy, how to avoid bankruptcy in the future, and how to manage your finances in the future to help avoid again going into overwhelming debt.

After nine months from filing from bankruptcy, you will automatically be discharged if you have met the specific discharge conditions than include: whether or not this is your first bankruptcy, your discharge is not opposed by the Office of the Superintendent of Bankruptcy, the trustee or a creditor, you have attended all counseling sessions, and you are not required to pay a portion of your surplus income into the bankruptcy estate. If you are granted an automatic discharge, the trustee will inform you and provide a copy of the discharge. It is important to be aware that discharge does not affect/relieve the liability of someone who guaranteed or co-signed a loan on your behalf.

Once discharged from bankruptcy, you will be released from all legal obligations to repay the debts you had at the date you were declared bankrupt - a few exclusions may apply. You will be on your way to start a new life debt free and ready to become a more fiscally responsible individual.

Important Steps Before Bankruptcy

One of the most important time frames in the bankruptcy process is the time between the decision to file and actually filing the paperwork. Why? Because this is the time that you have to make several important steps, which can maximize your chances of a successful case. In fact, there are several very important steps that should be completed long before you even sign the bankruptcy petition.

Organize Your Paperwork

When you file the petition, you will be required to provide a detailed account of your finances. This means that you will need to list information about your debts and who your creditors are, along with a list of your assets. The court will also want to see a financial spending history, statement of your accounts and evidence of your income. All of this information is highly important to the outcome of your case, which is why full disclosure and complete honesty is required.

A good rule of thumb is to list anything and everything from the last 3 to 5 years, even if you paid off the account or sold the asset. The reason is because the bankruptcy court may view missing or inaccurate information as fraudulent. Before you sit down and complete the filing paperwork, organize your paperwork and collect all of the necessary documents. This can make the process much smoother and more efficient.

Consult An Attorney

Perhaps one of the most important pre-bankruptcy steps is to consult an attorney. Although it is possible to complete the process without representation, it is recommended that everyone attend an initial consultation to have their case reviewed prior to filing. An attorney can review your paperwork, find out vital information and help determine the chance of success for your case. They are also very helpful throughout the process by assisting you with all of the necessary steps that are required to obtain a discharge. In general, you are more likely to successfully obtain a discharge with the help of a bankruptcy attorney.

Review Your Finances

Many people do not realize that their spending history prior to filing could impact their case. Bankruptcy courts may not allow debts accumulated within 3 to 6 months of filing into the discharge. Further, charging large amounts or taking out cash advances prior to filing for bankruptcy may be viewed as fraudulent. A good rule of thumb is to suspend all unnecessary spending and do not transfer or sell off any assets for 6 months prior to filing.

Bankruptcy Statistics in Oklahoma

Even as our nation begins the slow climb to economic recovery, the rate of bankruptcy continues to rise year after year. Research indicates that there are well over one million cases of bankruptcy filed in the United States each year, including both personal and business filings. In 2009, there were a total of 1,402,816 bankruptcy cases filed, 1,344,095 of which were non-business and 58,721 of which were business entities. While the states with the highest bankruptcy rates in the United States are Tennessee, Utah, Georgia and Alabama, the percentage of bankruptcy filings has increased by a great deal in most U.S. states over the past four years, including Oklahoma.

Statistically, In 2007, the total number of bankruptcy filings in Oklahoma was 8,742, 77% of which were Chapter 7 while 23% were Chapter 13. In 2008, there were 10,858 bankruptcy filings in Oklahoma, 80% of which were Chapter 7, while 20% were Chapter 13. In 2009, there were 13,813 bankruptcy filings in Oklahoma; 83% were Chapter 7 and 17% were Chapter 13. This year, the cumulative number of bankruptcy filings in Oklahoma was 11,278, 83% of which were Chapter 7 and 17% of which were Chapter 13. Oklahoma has suffered an increase of bankruptcy filings per capita every year, very nearly doubling from 2.44 filings per 1,000 people in 2007 to 4.08 filings per 1,000 people in 2010.

Researchers have collected information from cases of bankruptcy filed, creating a profile of the average bankruptcy filer. It is estimated that, as of 2008, 44% of people filing for bankruptcy are couples, 30% are women filing alone, and 26% are men filing alone. Two out of three filers have lost their job and half have experienced a serious health problem. Fewer than 9% of bankruptcy filers have not suffered job loss, divorce or serious medical issues.

In Oklahoma alone, there was an increase in per capita bankruptcy filings in 2010 while nearly doubled that of 2007. More specifically, the percentage of people who were able to qualify for Chapter 13 bankruptcy decreased each year, indicating that less and less people are able to repay their debt over time, opting instead for Chapter 7 bankruptcy, also known as "liquidation." As the trends of bankruptcy cases in Oklahoma and other states show, more and more people each year are finding themselves unable to pay their bills and mortgages on time, if at all, coinciding with the overwhelming percentage of filers who have lost their jobs or suffered a divorce or serious medical problem.

There are certain procedures and requirements necessary to file for bankruptcy which vary state by state and it is imperative to be aware of these procedures before moving forward with filing. For example, if you are considering filing for bankruptcy in Oklahoma, you will need to know whether you qualify for Chapter 7 or Chapter 13 bankruptcy. It may be a good idea to contact an experienced Oklahoma bankruptcy attorney to guide you through the process of filing for bankruptcy.

What Happens To My Car In A Chapter 13 Bankruptcy?

Let's discuss what happens in chapter 13 bankruptcies and what will happen to your car. If you are facing having to file a bankruptcy then knowing what will happen to your car can be a real concern. In this article we will discuss what you need to know so you don't find yourself out on the street without a car.

It is suggested that you work with your legal team before making any final decisions.

To begin with here's what happens in a chapter 13 bankruptcy. When you file for chapter 13 you, your attorney and the estate trustee will work together to restructure your debts so that you can pay off your loans easier.

The attorney and trustee will work with your creditors, doing what they can to lower interest rates and they may deduct late charges and fees if they are able. Then, a new monthly amount will be determined for you to get out from under your debt. This can be considered a repayment bankruptcy. Depending on your specific situation you will pay this new monthly amount for 3 to 5 years until you have wiped the debt clean.

With a chapter 13, if you have a car loan payment, you can restructure the loan and any amount you are behind into the repayment plan. Here you could keep your car. Be aware, that your car payments could most likely be more than you were paying before; this is to get you caught up on your balance that you have fallen behind on. In addition, you are responsible for the entire amount of the loan. If your car is worth $4,000 and you still owe $6000, you are forced to pay the entire balance.

If your car was repossessed shortly before beginning the bankruptcy case, you have a slight period of time where you may be able to get the car back by including the balance due in the repayment plan.

The final option you may apply for is called a cram down. This is where the courts have the opportunity to lower your loan amount equal to the blue book value of the car. The difference between your original loan and the value of your car becomes like any other unsecured debt and you may not have to pay it, it will be discharged through the bankruptcy.

In addition, the courts have the ability to lower your interest rates to approximately 2 percent above the prime rate. Obviously, this would reduce your monthly payment making it more manageable for you.

In order to qualify for the cram down you will need to have purchased the car two and a half years prior to the bankruptcy. And the final stipulation is that the car must be paid off by the end of your repayment plan. So for example if your repayment through chapter 13 is three years, the car must be completely paid off by the end of that three-year period, sometimes this will require a lump sum to be paid in full at the end of the bankruptcy term.

Always consult with your attorney what might be the best options for you and your specific situation.

Remove Bankruptcy From Credit Report - 2 Secrets Revealed About Improving Your Credit

When someone debts exceed their annual income, they turned to the federal law where they surrender their assets to a third- party trustee who sells them to pay off outstanding debts. Any other debts left except for child support, student loans, back taxes, and alimony is discharged. Bankruptcies can be removed though they take time, so wait at least two years before you start disputing. The reason for this is that files go dead, and they are moved to storage.

Remove bankruptcy from credit report - Secret 1

You'll first want to dispute the individual items listed inside of the bankruptcy using the normal dispute method. You should then dispute items like incorrect names, dates, the amount of discharge, and the case number. Once you get rid of the accounts listed inside of the listing, it will be easier for you to delete the bankruptcy. The reason for this is the bankruptcy's records are stored in the archives, which make it harder for the credit bureau to investigate and respond back to you in 30 days.

Remove bankruptcy from credit report - Secret 2

If the debt was discharged, it must show zero on your credit report. The account should also say that it was included in the filing. Your listing should appear as Chapter 13 or 7. Some of the agencies still trying to collect may report the debt as open. These agencies are violating the Fair Debt Collection Practices Act (a law that regulates collection agencies) and the bankruptcy code. Write to the credit bureaus and the collection agencies letting them know that you may hire an attorney and file a lawsuit for violation of the code.

When trying to remove a bankruptcy from your credit report, you must have patience, and discipline as it could be very time-consuming. However, if you follow the two secrets mentioned above, you will start to see results.

Repair Your Bad Credit Score With Bankruptcy Car Financing

If you are having poor credit, or if you are not maintaining your credit score than you would be ignored by the lender, should you file an application for the car financing? It is because, auto loan lenders straight away consider you as risky borrower and even if they offer you car loan, it'd be on very high interest rates. And if you are filling an application for auto loans with bankruptcy, things would be quite different than when you otherwise apply for bad credit car loan. Lenders know that you have applied for bankruptcy, and it'd be a long haul for you to fix your credit report and get back to track. Therefore, in case you have already applied for bankruptcy and now you want to go for auto car loan, it'd not be a smooth sailing at all for you.

There are a lots of reason why individual file for bankruptcy, we do not want to discuss over here about it. But the most important point is managing a balance due (debt). Filing for bankruptcy should be a last alternative. You should know what bankruptcy lead to before you file for it. Generally there are two types of bankruptcy (1) Chapter 7 (liquidation) and the (2) Chapter 13 (Reorganized).

Here are some tips that you need to consider that would minimize the hardships when you avail car loan after showing bankruptcy:

Check the Credit Report and Credit Score and Make Sure that they are Accurate and Cleaned Up - Before applying for bad bankruptcy car finance, you need to make it 100% sure that your credit report is updated and accurate and it should mention that you have applied for bankruptcy. If you find that the credit report has flaws or it is not updated, you need to check it and remove the flaws in it. For this purpose you can always seek professional help.

Look For Experienced Car Loan Lender - Such car loan lender should have good level of experiencing in dealing with borrowers who had filed for bankruptcy. These car loan lenders will ask you the reason why you have filed for the bankruptcy and based on it will come out with low interest rate car finance.

Know How Much You Can Afford - After you have applied for the bankruptcy, you need to check what will be the amount that you can easily set against the car loan. Make it sure that you will be able to pay for the loan smoothly every month. Choose the online loan calculator in case you are availing online auto financing.

Get Financing to Improve Credit Rating - Getting a new or used vehicle financing from a lender will facilitate you to competently, though slowly but steadily, reinstate your credit ratings. Once you start paying car loan payments on time and regularly, your credit score will also get improve. Later with good credit score, you have the power to negotiate the requisites of your current loan or exchange current car and obtain a new car financing.

Before you are ready to get your next car financing after you have shown the bankruptcy. The best way to deal with situation is to go for lenders who will give you the best options on car loans for people with bankruptcy. Discuss your situation with the car lenders, and get finance quotes that match your requirements.

Reasons To Consider Hiring A Bankruptcy Attorney

The bankruptcy process can be scary enough for many people and trying to represent yourself can add to that stress. Although many people are able to successful navigate the bankruptcy process without a bankruptcy attorney, the process can be much smoother with representation.

The problem is that the process is extremely detailed and requires full attention to detail. Many people miss simple items and make mistakes, which results in having their case dismissed rather than discharged. A bankruptcy attorney can be beneficial in many ways, maximizing the chances of successfully obtaining a debt discharge.

The Process

The most common area of mistakes made by people representing themselves is failing to complete the necessary steps accurately. The bankruptcy petition requires numerous financial details and accuracy is of utmost importance. If any information is missing or inaccurate, the case may be dismissed and could be viewed as fraudulent. A bankruptcy attorney can ensure the paperwork gets completed accurately and with full disclosure. However, this also requires complete honesty on the part of the debtor. An attorney can make sure that the debtor completes the credit counseling course and files the necessary paperwork with the court. If there is any problems with the paperwork, an attorney can ensure corrections are made and the papers are promptly returned to the court.

A Mediator

Many people representing themselves are unaware of the requirements between themselves and their creditors. Once the case is filed, creditors must be contacted to be informed about the bankruptcy. If the debtor fails to notify the creditor, the case could be complicated and even delayed. An attorney acts as a mediator between the debtor and their creditors. Not only will the debtor benefit by not having to directly deal with the creditor or fend off collection attempts, the attorney will take care of any notifications and arrangements that need to be made.

Guidance

Proceeding without representation may save a small fee, but it won't help if bankruptcy is not the best option. Many people lack the knowledge to know whether they qualify for a less intrusive measure of debt relief, or whether they would even qualify for the bankruptcy. An attorney can review the financial situation and help the debtor determine if bankruptcy is truly their best option. They can also help the debtor determine if their debts qualify before they go through the hassle of filing the paperwork.