Chapter 13 - Why It Is Better for Some

Chapter 13 is one of the best forms of bankruptcy for some individuals. If you are struggling to make ends meet and you cannot get out from under your debt burden, it may be wise to turn to an attorney and to take steps to file bankruptcy. Doing so will cost you. It will blacken your credit report for some time. It can also cause a number of difficulties in getting jobs, in getting insurance and even in managing your loan needs in the future. However, there are a few things that are very important to remember. In some cases, filing other forms of bankruptcy just does not work.

What Is It?

Chapter 13 is a type of bankruptcy in which your assets are protected because you will pay back much of your borrowed funds over a period of time. During the three to five year plan, you will make payments to a trustee who will then pay your creditors. Some types of loans, such as car loans and tax debt will be paid off in full during that time. In most cases, credit card debt is paid back minimally, often as little as just one percent. However, what makes this particular form so important is that unlike total liquidation bankruptcy, in this form you get to keep your assets rather than liquidating them to pay back your creditors.

Who Needs It?

There are many people who will benefit from filing Chapter 13 bankruptcy rather than filing other forms. If you are a married or individuals who owns a significant amount of assets, including homes, vehicles or other valuable assets, this form can be an ideal choice since there is no loss of those assets. In addition, those who are facing financial distress but who are unable to file 7 because of the income limitations can benefit from this form. In some cases, individuals prefer this form because it allows them to get out from under debt while still paying it.

In short, Chapter 13 is a method of reorganization of debt. If you are in foreclosure, it can help to encourage lenders to rework your mortgage, but you still have to get caught up on payments to avoid the foreclosure. It can help you to keep your car and help you to avoid judgments against you. It can also help you to stop creditors from calling you since they will be unable to do so.

All of these things add up. In Chapter 13, you do get back on track. You do get the fresh financial start you need if you are struggling under a large amount of debt. However, what is most important to know is that you can protect your home and vehicles or other assets from loss through the bankruptcy process by using this form instead of others. You do have to work towards repaying much of your debt but for many people, this is an important solution.

What Is Chapter 7, 11, 13 Bankruptcy Law?

Bankruptcy is available to debtors who have a large amount of debt that they cannot pay. Bankruptcy is a procedure that gives debtors a fresh start. While bankruptcy law is governed by the Bankruptcy Code, substantive rights are governed by applicable state law. Exemption laws vary by state and determine what property is protected from creditors.

Bankruptcy deals with liens, which is an interest in a debtor's property obtained by a creditor (an encumbrance). Liens are obtained by voluntary grant by the debtor, judicial action by the creditor, or by statute due to the status of the particular creditor.

The most common types of bankruptcy filed are chapter 7 and chapter 13. While chapter 11 is not as common, it is worth considering if the debtor is a business entity that wishes to continue business. Chapter 7 cases are available to individuals, corporations, and partnerships. Essentially, almost anyone can file under chapter 7 except for railroad companies, banks, and certain companies. Chapter 13 cases are only available to individuals with a regular income. Chapter 11 cases are available to individuals and companies.

A chapter 7 debtor will not usually have to appear in court unless there is an objection. A chapter 13 debtor may appear before court when there is a plan confirmation hearing.

Chapter 7

In a chapter 7 case, a debtor is given a court-supervised way of selling your assets to pay your creditors. To be eligible for a chapter 7, the debtor's income must be below the state minimum income level. A trustee is appointed to look after your "estate," which contains all of your existing assets and prepetition debt. Prepetition debt is debt that exists at the time that a debtor files a petition for bankruptcy. Under certain sections of the Bankruptcy Code, there is property that is protected from being sold. Individuals can keep exempt property and all non-exempt property is liquidated with the proceeds distributed to creditors. This chapter of bankruptcy results in a discharge, giving the debtor a fresh start. A successful discharge eliminates all of the debtor's unsecured debt. Unsecured debt includes credit card debt, personal loans, and utility and medical bills. Educational loans are not included unless the debtor can prove an undue hardship. Most cases, the debtor has no assets. Corporations and partnerships are not given a fresh start like individuals because of the ability to dissolve. This is why it is especially important for individuals to seek legal advice.

Chapter 13

In a chapter 13 case, a debtor must be an individual with a regular income, who wishes to keep his or her non-exempt property. To be eligible under chapter 13, the debtor must have unsecured and limited debt, secured debt limited to $1,784,000, and some form of regular income, such as a pension, trust fund, wages, or family member support. Chapter 13 is only available to individuals who has enough income to pay the creditors over a three or five-year period.

Here, the Code provides a court-supervised method for individuals to set up a payment plan with creditors over a three or five-year period. The payment plan includes prepetition debt only, which is existing debt at the time of the bankruptcy filing. The payment plan period is determined by the debtor's monthly income. The debtor has the ability to retain his or her property while paying creditors with future earnings. To do so, identification of the property estate is necessary and the court cannot confirm the plan until the court knows the extent of the property of the estate. Creditors must confirm the payment plan and the court must approve the plan. If the payment plan cannot be confirmed, the case will be subject to chapter 7 liquidation. Additionally, in order to reach confirmation, the plan cannot pay less than what creditors would have received under chapter 7.

Chapter 11

In a chapter 11 case, the debtor can be an individual, business, or other entity. Chapter 11 provides the debtor a way to continue business and retain business property necessary to continue business by restructuring or reorganize the debtor's debts. The payment plan includes preconfirmation debt only, which is existing debt at the time of the bankruptcy filing. To be successful, the debtor must be able to file a reorganization plan, obtain acceptance by creditors, and the court's approval of the plan. If a reorganization plan cannot be agreed upon within 18 months or one and a half years, the debtor will proceed to chapter 7 liquidation. Debtor keeps its assets necessary to continue business and the debtor does not give up any property. In order to reach confirmation, the plan cannot pay less than what creditors would've received under chapter.

You should always seek legal advice before filing for bankruptcy.

What To Know About Bankruptcy Fraud

The bankruptcy process is not always easy for consumers to navigate. Because of all the strict rules and requirements it isn't uncommon for a consumer to make a mistake, some of which could be costly. In some cases, people unknowingly engage in an action that the court deems to be fraudulent. When this happens, a debtor may find themselves in hot water or even without the help they needed to begin with.

The Actions

There are two types of bankruptcy fraud; intentional and mistaken. There are many instances in which people intentionally commit bankruptcy fraud in efforts to get away with the best outcome. Fearing the worst, some people are tempted into such actions and make things worse for themselves in the end. In the case of mistaken fraud, people were unaware that their actions are considered fraudulent until it was too late. The biggest problem with either is that they both result in serious consequences.

Actions that are considered fraudulent fall into several categories:

(1) withholding information,

(2) providing inaccurate information, and

(3) breaking the rules.

Withholding information is the most common fraudulent act committed by filers. This includes withholding information about one's income, assets, debts or creditors. Some people may even withhold information about their recent financial transactions or sale of assets. Bankruptcy laws maintain strict rules about charging debts prior to filing bankruptcy and debts accumulated within 90 days of filing are not eligible for discharge and may be considered fraudulent if the court becomes suspicious.

Providing inaccurate information is another form of fraud in which people either lie about their financial details or fail to correct mistakes once they become aware of inaccurate information. Some people even go so far as to file under false names or use other people's personal information when filing. Both of these actions are serious business and the court does not tread lightly on these type of offenders. Breaking bankruptcy rules can also be deemed fraudulent if the court feels the debtor avoided paying the required fees or completing the necessary paperwork in order to take advantage of the system.

The Consequences

Bankruptcy fraud is no laughing matter. Regardless of whether the acts were intentional or mistaken, the court has the power to apply the consequences they deem appropriate. In general, those who intentionally defraud the system receive the harshest punishment, which can include penalty fees and even jail time. In lighter instances of fraud, the court may simply dismiss the case and prohibit the filer from re-filing for bankruptcy again in the future.

When Filing For Bankruptcy, Don't Be Tempted To Commit Bankruptcy Fraud

Bankruptcy fraud is a big problem in the United States. It is very tempting to commit because, if successful, it can let the transgressor illegally profit with thousands of dollars to which they should not be entitled.

There are specific rules that define bankruptcy fraud. The penalties, fines and possible jail terms, vary according to the state in which they are committed.

One type of fraud is knowingly making fraudulent statements to the bankruptcy court. For example, one question that you will be asked is if you have filed for bankruptcy in the last seven years. You may have filed for bankruptcy in another state or under another name and try to get away with filing for a second bankruptcy in another state thinking that you won't be found out. But, if you do so, you have committed perjury and can be prosecuted for fraud.

A second type of fraud is where a filer attempts to conceal assets or properties that he owns from the bankruptcy trustee. Naturally, no one wants to lose valuable possessions that they have acquired over the years. Unfortunately, when you file for bankruptcy, most assets that you own become possible candidates for liquidation. This is because the trustee is empowered to sell off as much of our assets as he can to raise money with which to pay back your creditors. By hiding any of your assets, you are committing a fraudulent act upon the court.

A third type of bankruptcy fraud is when you knowingly run up debts prior to filing for bankruptcy with the intent of never paying the money back. Many people look upon this as a harmless form of larceny because it is a big company that they are cheating. The courts, however, look upon this much more seriously. They, as well as the credit card companies, will strenuously push for prosecution in cases like this.

The above types of fraud are all committed by debtors. But, fraud can be committed by a creditor as well. For example, sometimes a creditor frustrated in getting the money he is owed from the bankruptcy court, will attempt to go around the court and collect money from the debtor in other ways. If he attempts this after receiving notification that the debtor has filed for bankruptcy, he has committed fraud upon the court as well.

Since the new bankruptcy law has passed, creditors more than ever before, have become much more serious about enforcing the provisions of the laws.

Can I Keep My Car If I File Chapter 7 Bankruptcy?

The answer to that question is it depends? Unfortunately that answer is applicable to many legal questions, because many legal questions depend heavily on the particular facts and circumstances of an individuals case. So what are the general rules that govern what happens to your car in a Chapter 7 bankruptcy?

Well first of all, if there is no loan on the car, you may be able to keep your car depending on how valuable it is and what exemptions are available to you. Exemption law is a matter of state and federal law. Depending on where you are domiciled you might be able to use the federal or the state exemptions available to you, or you might be stuck with your state's exemption laws. This article is not going to spend anymore time on this topic, but just know that an exemption may apply allowing you to keep a car you own outright.

So what if you have a loan on the car. First, some basics about debt. There are generally two types of debt, and each is treated differently in Bankruptcy. There is secured and unsecured debt. Secured debt is debt that is tied to a piece of property, or in other words is secured by that property. If you fail to pay the debt, the creditor can then take that piece of property, which is referred to as the collateral. Unsecured debt is debt that is not tied to any property or collateral. An example of secured debt would be a car loan. The loan is the debt you owe the bank, the car is the property or collateral. If you fail to pay the loan the bank takes the car. An example of unsecured debt would be the credit card bill. That debt is not secured by anything, if you fail to pay the credit card bill they have no automatic right to repossess any particular piece of property.

So we know that a car loan is secured debt. What that means is we have three options under the bankruptcy code as to how to handle secured debt. These options are (1) surrender, (2) redeem, or (3) reaffirm.

Surrender is what it sounds like. You can surrender the car to the bankruptcy trustee and you no longer have to pay the loan associated with it. Your personally liability on the loan is gone. Unfortunately, you no longer have the car now.

Reaffirmation also kind of sounds like what it is. Basically in this scenario you agree with the bank who has the loan on the car that you will continue making payments on it, and you will sign a reaffirmation agreement. This agreement basically sets out a new loan and payment plan that will survive the bankruptcy. After you discharge your debts in bankruptcy this reaffirmed loan remains and you must now make those payments. You can keep the car but you also have new payments to be made.

The last option is redemption. To redeem property in bankruptcy you basically make a one time for fair market value payment of the property. In this case it is the car. So you make that one payment for fair market value and then the car is yours free and clear. A couple interesting things to note here, you get to make the payment based on the fair market value. so if you have a large loan on the car and the vehicle is not worth very much at all, then this is great. You basically crammed down the loan to the value of the collateral and then paid it all off in one payment. But how can a person just make a large one time payment for fair market value if they are in bankruptcy? Where do they get the money? The answer here is that redemption really works well for highly depreciable property. Things like computers, or home electronics that you want to keep. These things are usually not extraordinarily expensive to begin with, and then on top of that they depreciate very quickly in value. For example that computer you bought last year, well it is probably obsolete. so if you had a loan on the computer, the value of the computer is probably much much less than the value of the collateral, the computer in this case. So a redemption payment there makes sense. For a car, maybe not, it depends on the car. Also, and this might surprise some readers, but there is a whole cottage industry that lends money to people going through a bankruptcy for the specific purpose of making a redemption payment. So if you want to make that large redemption payment on the car, you might be able to get a loan for it, oddly enough, right in the middle of a bankruptcy. There are lots of other requirements in the code to be able to make a redemption payment, for example the property being redeemed has to be exempt in addition to others.

Surrendering, reaffirming, and redeeming property in bankruptcy is very complex and consultation with a qualified bankruptcy attorney is advised. This article is just a very basic overview, and the point is in a chapter 7 bankruptcy there are options that allow you to keep your car should you need to.

Chapter 7 of the Bankruptcy Code: What Happens Next to Bankruptcy?

When a business becomes incapable of paying its debts, the owner can file for bankruptcy to resolve the issue with the creditor. In some cases, the creditor forces the owner to file for bankruptcy. Chapter 7 of the US Bankruptcy Law enables creditors to recover their investments through specific legal measures. In this provision, the debtor sells the business to cover the debts. If insufficient, other property can be used to repay the balance.

Chapter 7 is differentiated from Chapter 11 and 13 of the same code by its governed transaction. Chapter 11 and 13 cover the reconstruction of the business to improve the revenue and to produce funds for repayment, while Chapter 7 covers the liquidation of assets (the business in particular) to pay off the debt. Depending on the owner's preference and considering the possibility of reviving the business in the end, he may choose either category. Nonetheless, Chapter 7 provides a faster and less strenuous solution.

After filing for bankruptcy, a Chapter 7 Trustee is appointed by the United States Trustee to immediately inspect the business's affairs to figure out the best solution for liquidation. Until sufficient funds are produced through liquidation, the trustee holds power over the assets covered by the liquidation. He is the one who sells the property and transfers the proceeds to the creditors. He executes any approved methodology in dividing the proceeds in case many creditors are involved.

Selling the company after a corporate bankruptcy to accumulate funds does not necessarily mean dissolving the business and terminating all employees from their jobs. Rather, the business can be sold intact to another company. This means its operations will continue, except that the new leadership may make some changes in the protocols and policies being observed. Even the management system may not be affected depending on its effectiveness determined by the buyer. In case of collaterals, the trustee shall determine which and which not to sell.

Filing bankruptcy does not affect the deal made between the business owner and a fully secured creditor. If the debt entails collateral, which has value that equals or exceeds the debt, the fully secured creditor is entitled to recover the collateral in full even if bankruptcy is filed for. However, they are not entitled for any proceeds from the liquidated property determined by the court.

In contrast to corporate bankruptcy, Chapter 7 may not cover all types of debt in a bankruptcy involving an individual. These types include property taxes, student loans, and child support. The individual must pay off these debts in a separate transaction other than the liquidation. The owner can have the remaining property liquidated in another way to cover for the balance.

Things To Consider Before Chapter 7

The bankruptcy process can be riddled with questions and is often overwhelming for consumers. While the process intends to be a helpful resource, many people find it stressful. However, this doesn't have to be the case. Consumers are always advised to seek counsel from a qualified bankruptcy attorney before filing for bankruptcy, this is especially true for anyone considering Chapter 7. The reason is that there are additional considerations that go with the Chapter 7 process, most of which should be reviewed before filing in order to maximize the success of the case.

Qualifying For Chapter 7

One of the tricky aspects to filing for Chapter 7 is the qualification process. Bankruptcy laws are set up in such a way to encourage consumers to repay their debts to their fullest extent. In other words, if you can afford to repay your debts in some fashion, the bankruptcy process wants to help you achieve that goal. Therefore, the rules impose strict income requirements in order to qualify for Chapter 7. Specifically, a debtor's income must be less than the median income level of their state of filing. If their income is greater than the median income of the state, they would not qualify for Chapter 7 but may be able to seek Chapter 13 instead.

Debts And Assets

The Chapter 7 process appeals to many people who are looking for a total debt elimination. However, we know that this isn't always possible for people with certain income levels. The type of debt being carried also affects whether a Chapter 7 case will be successful or not. Secured debts, such as mortgages and car loans, are difficult to manage in Chapter 7 because of their ability to be liquidated by the creditor for non-payment. Unsecured debts, however, are easily managed in this type of filing as they do not hold any asset as collateral against the loan.

The main concern with asset protection in a Chapter 7 filing deals with the type of debt. Because secured debts hold the asset as collateral, they are not guaranteed to be protected. Unless the asset falls under exemption laws, the asset may not be able to be protected from creditors in a Chapter 7 case.

Credit Effects

Perhaps one of the most concerning issues debtors face is how the bankruptcy will be reflected on their credit report after the discharge. While neither type of bankruptcy damages your credit directly, but can actually improve it, there are still some considerations with future loans. Many lenders will consider a debtor more of a credit risk after a Chapter 7 case than a Chapter 13 case. This just means that debtors must work a little harder to prove their fiscal responsibility after coming out of a Chapter 7.

Why Choosing Chapter 13 Could Be Best

The bankruptcy process is riddled with obstacles including which type of bankruptcy to file. Depending on your financial situation, there may be more benefits and fewer risks in filing for Chapter 13 over Chapter 7. However, the last thing you want to do when considering bankruptcy is make a quick, uneducated decision. Knowing the differences between the two types of personal bankruptcy is the best decision you can make as a consumer. An informed decision is always the right one.

Getting In The Door

It is important to know that not everyone qualifies for bankruptcy. This is especially true for Chapter 7 cases, which have strict income requirements for filer eligibility. In general, qualifying for Chapter 13 much easier for debtors. There are only a few restrictions such as the filer must be filing on personally accrued debts and the debts must be less than $360,475 for unsecured debt and $1,081,400 for secured debts. Qualifications are more lenient for Chapter 13 cases in order to encourage people to repay their debts rather than have them eliminated in Chapter 7. After all any debts you accumulate are your personal and civil responsibility. However, the bankruptcy courts are understanding and realize that there are times in which people need a little help resolving their debts.

Resolving Debts

One of the biggest advantages of Chapter 13 is its ability to resolve both secured and unsecured debts, whereas only unsecured debts are easily resolved in Chapter 7 cases. Since debtors repay their debts in Chapter 13, any assets that are part of a secured debt claim are easily protected. Chapter 7 filers find that they may be forced to give up the asset if they cannot repay, which is ultimately not what people want to do. Further, Chapter 13 cases may even be able to lower overall principal debt balances on some secured debts. This is possible when qualified debts are separated and a portion of the mortgage or car loan debt is split into an unsecured debt to be eliminated. When this happens debtors are left with the responsibility of repaying only the remaining portion of the secured debt. This benefit of Chapter 13 can be extremely helpful when debtors owe more than what the asset is worth on a secured debt.

Protecting Your Credit

One of the most notable features of a Chapter 13 filing is the ability to minimize credit damage. Although a bankruptcy can save and even improve credit standings after a discharge, the filing is reported for several years. However, most Chapter 13 filings fall off within 7 years, while a Chapter 7 can remain for up to 10 years.

Simple Ways to Avoid Bankruptcy

In these tough economic times, many people look to bankruptcy as a way to solve their financial problems. Declaring bankruptcy can certainly give an individual or a family a fresh start by either eliminating debts completely or establishing some sort of payment plan.

If you find yourself in really tough financial circumstances, you should really give some consideration to declaring bankruptcy without making a hasty commitment one way or another. Too many people avoid this option at all costs only to find that they have made the situation worse.

Even so, you cannot enter into this kind of decision lightly. If you decide to go with chapter 7 and try to eliminate all of your debts, you have to remember that this will stay on your financial records for a number of years. It doesn't mean that you will never be able to rebuild your credit and get on with your life, but it does mean that you should look at other options carefully before taking the financial leap.

What other options do you have besides declaring Chapter 7? Well, obviously the best route to take would be to avoid your financial predicament altogether, but chances are if you're reading this article then it is already too late to prevent all of your financial problems. This doesn't mean that you have to panic, but you just have to look at things a little more closely.

The first option to consider is to take a loan from a family member or friend. If your relative has the financial means and is willing to help you out, then you should not be too proud to accept this since it can help you avoid further problems. However, think carefully about this option. If you're unable to repay the loan, you could bring on some serious personal strain into your family life (in addition to the financial problems that you already have).

Another option you have probably heard of is a home equity loan. The process is simple enough. You simply get a bank to make you the loan based on the equity in your home, and then you use this cash to pay off your financial obligations. This can be a great way to avoid declaring chapter 7 while still being able to pay off all of your credit card bills, medical bills, or any other lingering financial obligations.

Unfortunately, if you don't pay off a home equity loan for any reason, then the bank has the right to take your house! This is the danger of taking advantage of this kind of loan, and in many cases the loan amount would not be enough to cover your debts anyway. The worst-case scenario would be for you to take out a home equity loan and then have to declare chapter 7 anyway a few months or years down the road.

Bankruptcy is designed to protect debtors who are in over their heads, and in most cases your home will be protected when you file. So think carefully before taking out a home equity loan which would put your home in danger. You'll want to make sure to address your spending habits as well. Otherwise, you may use up the equity in your home only to accumulate a huge amount of credit card bills once again within a few years.

The Drawbacks of Debt Settlement

Many commercials state that debt settlement can be the answer to your financial problems. With the assistance of a debt settlement company, you can pay off your thousands of dollars in mounting debts at a fraction of what you actually owe.

Unfortunately, debt settlement may also have severe consequences for your credit. What debt settlement companies leave out of their commercials is how they settle.

The first step in settling debts is agreeing to terms with a debt settler. After this, individuals pay a monthly fee to the settlement company. The company determines this fee based on the individual's debts.

The individual continues to pay the settlement company who, in turn, do nothing for several months. When the individual has finally defaulted on his or her payments, the debt settlement company will call the individual's creditors and negotiate a settlement amount.

At the end of the process, the debt negotiation firm keeps a portion of what the consumer pays it and gives the rest to the individual's creditors.

Since the individual is required to default on his or her debts, his or her credit score may take a hit. This means that the individual may have difficultly securing a loan, successfully applying for credit cards, financing an automobile, or buying a home for several years.

In many cases, bankruptcy is an easier, and even cheaper, method for discharging debts than debt settlement. Additionally, bankruptcy gives individuals a clean financial slate, so they can start their financial lives over.

Determining what method of discharging your debts is best for you may require advice from an experienced lawyer who can help you better understand your options.

Filing Bankruptcy More Difficult For Those With Lots Of Assets

The decision to file for bankruptcy is a difficult one to make. In an ironic way, it is more difficult for the person who has a lot of assets than it is for someone who has little or no assets.

This is because, if you have few assets that a creditor can have liquidated in order to repay him, you have very little risk at all. On the upside, you can possibly get all of your debts dismissed. In addition, you don't have to divest yourself of certain assets, because you have none.

On the other hand, assume that you have a number of assets such as multiple homes, a valuable coin or stamp collection, or many classic cars. In either of these cases, if you file for bankruptcy, you stand a good chance of losing them as they are sold to repay your creditors.

That is why if you have a significant number of assets at risk, you should never file until you have had a chance to talk with a bankruptcy attorney and get his suggestions on what to do. Because the timing of your bankruptcy filing could have a tremendous impact on the value of the assets that you end up with after the filing.

Most of the time, the bankruptcy filing that you will attempt to file for is the Chapter 7 type. That is because, for the average person, this is the one most advantageous for you. Chapter 7 allows you to have the majority of your debts dismissed and gives you a chance to start your financial life over again. If, on, the other hand, you are forced to file for Chapter 13 instead, you will be put on a payment plan. Your debts may be lowered, but most likely, not dismissed. The problem, however, is that in the recent past Chapter 7 filings used to be relatively easy to get. Since the bankruptcy laws have been revised, at the urgings of the credit card industry, these type of filings have been harder to come by.

In order to file under the more advantageous Chapter 7 type of bankruptcy, there are certain state and federal income levels that you cannot exceed. If you exceed these levels, then you have to file for Chapter 13 instead.

Where timing comes into play is when you have an adequate amount of income coming in right now, but you know that income will be disappearing in a matter of months. Then your best bet would be to delay filing for bankruptcy until your income is low enough to meet the Chapter 7 requirements.

Saving Inheritance From Bankruptcy

Inheritance from a recently deceased loved one may seem like a gift you should be able to keep. Unfortunately, bankruptcy courts do not necessarily agree. When you declare bankruptcy, your inheritance may be liquidated and split up amongst your creditors.

With careful planning, though, you may be able to save your inheritance from the grips of a bankruptcy court. There are perfectly legal options available to accomplish this task, but they require you to work closely with your loved one or his or her estate.

Bankruptcy laws state that individuals who receive inheritance before declaring bankruptcy must list that money as an asset. For individuals who inherit money after declaring bankruptcy, the laws get more specific.

Any money or valuable that an individual acquires within 180 days of declaring bankruptcy must be reported if it can be considered nonexempt property. Inheritance is usually classified as nonexempt, so it must be reported when received in the 180 days following a filing.

On the 181st day, however, bankruptcy courts cannot use inherited money to pay back your creditors. As such, if you can work with your benefactor, you may be able to receive your inheritance 180 days after you declare bankruptcy.

There are three main ways to accomplish this. One way is to have yourself written out of your loved one's will. This requires a great deal of trust, because the idea is that your money is routed to another loved one, who will gift you the money when your bankruptcy filing has been settled.

Another way is to have your loved one set up a spendthrift trust, which releases to you on a certain date. Bankruptcy courts cannot touch these funds while they are in the trust. The final way is to disclaim your inheritance, but doing this may mean that you never receive your money.

Types of Business Bankruptcy

Owning a business can be a great and exciting challenge. However, there are many unexpected difficulties that can come up at any time, especially in difficult economic times. Many business owners do not know about the many options available to them to get the help they need during a financial crisis. One great option for many business owners to help them take control of financial burdens that weigh down their business is bankruptcy.

To learn more about your business's bankruptcy options, it is recommended that you speak with an experienced bankruptcy professional who is familiar with business bankruptcy law. You need to make sure you have as much information as possible to successfully work your way through challenging financial circumstances.

Chapters of Business Bankruptcy

Two main categories of bankruptcy can help business owners during a financial crisis. Filing for these kinds of bankruptcy can be complicated and quite involved. An experienced legal team can help with this process. Types of business bankruptcy include:

Chapter 7 bankruptcy, in which assets may be used to pay off debt and buyers can purchase part or all of the business Chapter 13 bankruptcy, in which the business owner will still conduct business operations while following a new repayment plan to repay creditors

To better understand these two forms of business bankruptcy, contact an experienced bankruptcy attorney today. There are many opportunities available to business owners who are looking to get out of difficult financial situations and regain control of their finances and their business.

How Do I Know If I Should File For Bankruptcy?

Coming to terms with the fact that you need to file for bankruptcy is very difficult for many individuals. Sometimes the emotions surrounding such a decision can make it difficult to accurately assess your financial situation, and leads many to put off filing for bankruptcy when it is really the best option. If you have already tried to fix your financial situation by reducing spending, attempting to increase income, and selling assets, then it is time to consider a bankruptcy filing.

Most people consider filing bankruptcy to be their last option. However, it is more accurate to say that bankruptcy is your last good option. Bankruptcy attorneys regularly meet with individuals who have made some very bad decisions trying to avoid a bankruptcy filing, and these decisions often just make their problems worse. Such decisions include:

· Liquidating retirement accounts to pay bills.

· Borrowing money from payday loan companies.

· Borrowing money from family members or friends.

· Taking cash advances from credit cards.

· Writing bad checks.

· Selling assets that are protected from creditors.

· Engaging in fraudulent or otherwise illegal activity.

Desperate people do desperate things, which is why when things start to feel desperate you should make an appointment to speak with an experienced bankruptcy attorney to learn more about how bankruptcy can help. A bankruptcy filing may very well be your best option to achieve a fresh financial future. The main purpose of the bankruptcy laws is to enable people to get out from underneath crushing debt to allow for future financial stability. The bankruptcy laws help millions of people find relief from their financial problems every year. Why not you?

How Will Filing Bankruptcy Affect My Co-Signer?

A co-signer is someone who has guaranteed a debt on your behalf. This means that if you fail to pay the debt the co-signer is personally responsible. In bankruptcy, co-signers are referred to as co-debtors. Many of my clients have reservations about filing for bankruptcy because they do not want to negatively affect their co-signers.

There is a way to file for bankruptcy without negatively affecting co-debtors. A Chapter 13 bankruptcy has a feature known as the "Co-Debtor Automatic Stay." This powerful tool was designed to protect bankruptcy filers by preventing creditors from taking collection action against any individual who is obligated on a consumer debt owed by the debtor (See 11 U.S.C. 1301). According to 11 U.S.C. 101(8) a consumer debt is a debt "incurred by an individual primarily for a personal, family, or household purpose."

While the stay protects the co-debtor during the bankruptcy, it does not discharge the co-debtor's liability to pay the debt. It will, however, prevent collection action by the creditor against the co-debtor such as obtaining a judgment, lien perfection, or reporting negative information to the credit bureaus during the pendency of the case.

Unfortunately, there are exceptions to the protection of the co-debtor stay. The says does not prohibit collection of debts incurred in the ordinary course of business. Additionally, since tax debts are generally not considered consumer debts, the tax authorities can continue their collection efforts while the bankruptcy is pending. Further, the co-debtor stay does not apply to Chapter 7 bankruptcy cases. This means that if the debtor converts the Chapter 13 to a Chapter 7 the stay will terminate.

Finally, the co-debtor stay can be modified by the Bankruptcy Court upon request of the creditor. A creditor can file a motion with the Court asking for the stay to be "lifted", meaning that the creditor would then have permission to begin collection action against the co-debtor. These types of motions are generally successful when the co-debtor is the one who actually received the benefit of the debt (e.g. you co-signed a car loan for your friend and she actually drives the car), if the debtor's Chapter 13 plan does not provide for payment of the debt, or if the creditor can prove it's interest would be irreparably harmed by the continuation of the stay.

A knowing violation of the stay is illegal and is punishable by court imposed sanctions, and any action taken by the creditor in violation of the stay is void. Any such violation should be reported to the debtor's attorney immediately so that the appropriate motions can be filed with the Bankruptcy Court.

The co-debtor stay is a very powerful tool. To learn more about how filing bankruptcy can help you, speak with an experienced bankruptcy attorney about your unique situation. The best bankruptcy attorneys offer free consultations.

Bankruptcy Can Provide Relief to Financially Troubled Generation Y

"Millennials," "Echo Boomers," "The Net Generation" and "Generation Y." Over 50 million American teens and twentysomethings strong, this age group has been called many things - and and the people who make it up are regularly predicted to be less successful and less financially well-off than their parents. As indicated in a recent report by the think tank Demos, many members of Generation Y are already in some degree of financial difficulty due to high debt load, minimal savings and limited job opportunities.

Even though many might consider themselves too young to consider it, filing for bankruptcy may provide members of Generation Y with a way out of seemingly insurmountable personal debt.

What is bankruptcy?

Bankruptcy refers to the judicial process determining the inability of an individual or organization (or "debtor") to pay back financial obligations. The legal proceedings transpire in one of two ways: in an involuntary bankruptcy, creditors (e.g., banks, lending institutions) file a bankruptcy against a debtor to recover monies owed. More common are voluntary bankruptcies, where debtors declare their inability to pay their debts.

Bankruptcy allows debtors facing financial hardship an opportunity to start over and helps creditors collect what they are owed in an equitable manner.

Bankruptcy types and definitions

Those looking to file for personal bankruptcy most often choose to file under either Chapter 7 or Chapter 13 of the bankruptcy code. Each one has its own requirements and benefits and an experienced bankruptcy attorney can help you determine what is right for you.

Chapter 7 allows a debtor to liquidate his or her property and assets to settle debts. A court-appointed trustee is tasked with valuing and selling the debtor's possessions and uses sales proceeds to pay down the accumulated debts. Any remaining debts are forgiven (or "discharged") by the creditors.

A discharge in bankruptcy ends the personal liability of a debtor for certain types of debts. Creditors can no longer make any additional debt collection efforts (such as telephone calls and letters) on any remaining balances.

Chapter 13 allows a debtor to reorganize his or her debt, which allows the debtor to retain some or all property and assets. Also called a "wage earners plan," this allows gainfully employed debtors to pay back all or part of the accumulated debt through a court-approved repayment plan.

It is important to note that while student loans are non-dischargeable in bankruptcy - which means that they cannot be totally eliminated by filing for bankruptcy - they can be consolidated under Chapter 13.

Should I File for Bankruptcy?

The decision to file for bankruptcy can be a difficult one. No two cases are exactly alike and there are many factors a debtor should discuss with an attorney when considering bankruptcy as an option.

If the answer is yes to one or more of the following, you might be a candidate for filing bankruptcy:

You receive regular telephone calls and mailings from creditors about missed and past-due payments You suffered a measurable financial setback (i.e. unemployment, divorce, disability, illness) You are only able to pay the minimum amounts due on your outstanding debts

An experienced bankruptcy attorney can provide more information about whether filing for bankruptcy is right for you and what alternatives may be available. If you or someone you love is facing financial hardship, contact a lawyer experienced in bankruptcy today.

Know About US Federal Bankruptcy Law in Detail

Bankruptcy is a serious economic down turn for an individual or an organization where the dispensation of debts simply becomes next to impossible because there's hardly any finance left in the kitty. Federal bankruptcy Laws are there to help the individual or an organization to file under Chapter 7 Bankruptcy, or Chapter 13 Bankruptcy or Chapter 11 Bankruptcy. The Bankruptcy Law, which is also popular as the Bankruptcy Code of the United States of America, quotes the 1978 Bankruptcy Reform Act as Codified in The Unites States Code under Title 11. Anyone filing under the Chapter 7 Bankruptcy will have to sell of his or her assets so that all the debts can be paid off. Assets are classified as exempt and non-exempt. The non-exempt assets are meant for the creditors. Chapter 13 Bankruptcy is for those individuals and organizations who have insufficient assets to pay back to the creditors, but who are still making the money. The creditor will put the claims on hold until it is decided by the debtor. The debtor will hold the possession of his/her assets as decided mutually by the creditors and the court. The Chapter 11 Bankruptcy aims at restructuring and providing the remedies to the bankrupt individuals and the organizations. The repayment methodologies are similar to Chapter 13 Bankruptcy.

Get ready to avail the benefits under the federal government's bankruptcy law. But, before you actually do it, you have to be pretty sure that all the terms and conditions are known to you. Whether you are applying for Chapter 7 or Chapter 13 or Chapter 11 bankruptcy, you have to be pretty sure about all the clauses delineated in it. If you miss any of the clauses, then you will miss your eligibility requirements. If you find that the terms and conditions of bankruptcy are not understandable to you, the best thing to do is hire the services of efficient bankruptcy lawyer or attorney. In this way, you will not only be saving your time and money, but also be progressing in the right manner to file your bankruptcy application. Do your homework right in the beginning as bankruptcy judge may ask you quite a number of questions before actually qualifying your candidature.

File Federal bankruptcy depending on your financial condition and as per the court's decision. Hire the services of an efficient bankruptcy lawyer to help you in consummating the Bankruptcy successfully and quickly.

What Happens If You Fail To List All Creditors On Your Bankruptcy Filing?

When you file for bankruptcy, you are required to list all of the creditors to whom you owe money to. You are required to list their names, their contact information such as addresses and phone numbers, the amount that you owe, and other miscellaneous information about the debt.

The purpose of this is so that the court can notify all of these entities of your intent to file for bankruptcy and discharge your debt to them. Once your creditors receive this notification, they will then have the chance to contest the discharging of their debt if they so wish.

But, there are certain times, when you simply forget to list one or more creditors to whom you owe money. So what happens in these cases?

If you notified the creditor through other means, then as long as the debt is a dischargeable debt, it should have no effect on your bankruptcy filing. For example, if you owe $5,000 on a credit card that you haven't used in months and simply forgot to list it on the forms that you turned in to the court, you can send a letter to the credit card company yourself.

As long as you can prove that you have notified the creditor, your filing should be ok. Once the creditor is notified, the court takes the position that it is his responsibility to show up in court to protect his interests if that is his wish.

In other cases, it really doesn't matter if you notify the creditors or not. This is especially true in what lawyers call no-asset cases. In other words, if you have no assets which can be divided up to pay the creditors, it makes no difference whether a particular creditor received a notice. In either case the creditor would have received nothing. Knowing this, if a creditor shows up after the bankruptcy and tries to have the case reopened, he will be denied.

In other cases, however, where you intentionally left a creditors name off of the list, he may later show up in court and ask to have the case reopened because he was not notified. In this case, he may very well be successful and his debt will survive the bankruptcy. In other words, it will not be discharged, and you have to pay the debt.

If, however, you discover on your own that you left someone off your list, you can seek an amended discharge. If the debt is one that would have been discharged anyway, the court will consider it discharged.

Looking for Bankruptcy Records?

If you have ever filed for bankruptcy, then you know what a huge hassle it is. Getting all of your financial records together and letting someone pick through them feels awful. Most people who decide to file for bankruptcy feel that they have no other choice. It can be disheartening, but in the long run, it can help. After you file for bankruptcy, you should keep your papers, but if you happen to misplace them, all is not lost. If you later need these bankruptcy records and you can't find them, then you can look online. If you want to find out if someone you know has filed for bankruptcy, then you can get their records as well.

Even though you can access bankruptcy court records from many local court offices online, the records are managed by each office through hundreds of different databases. This means that searching them can be very time-consuming, not to mention frustrating. Some services offer aggregate databases so you can search all the records at once for a nominal fee.

It is a sad fact that some people may try to get your bankruptcy records because they are trying to steal your information. It doesn't really make sense, because if you had to file bankruptcy, you most likely don't have a lot of money to steal. You should be aware of who is asking for these records but it is hard to know. Most court records are open to the public. All someone has to do is go to the courthouse and request to see them.

No one likes to file for bankruptcy but it doesn't have to be the end of the world. After filing for bankruptcy, you can have a clean slate. Most lawyers will keep your bankruptcy records for a few months, so you don't always have to pay for them. If it has been several years, you can pay a fee online or go to the courthouse. Looking at someone's records can be a good way of getting to know their background, especially if you're looking to do business with them in some capacity in the future.

Understanding Chapter 7 and Chapter 11 Bankruptcy Filings

Most people don't ever want to have to file for bankruptcy. Some people look at it as a negative reflection on their lives. If you have ever thought of filing bankruptcy, then you should know that it isn't easy. You will be asked for every type of financial dealing that you have ever had. You will have to provide bank statements, receipts and explanations of all of your personal spending. All of your personal and financial business dealings will go into public bankruptcy records. A personal bankruptcy is called a chapter 7 and a business bankruptcy is a chapter 11.

If you have been the type of person who hasn't been completely honest in your financial dealings, then you will be exposed. Some people who file for bankruptcy are very honest people. They may have just gotten in over their heads in credit card debt or they might have lost their job and can no longer pay their bills. It can be very discouraging and a huge burden to wonder how you are going to pay the bills every month. When you have a family and you have too many debts, then having public bankruptcy records are the least of your worries.

Most people who are just your average Joe can file for a chapter 7 bankruptcy. In a chapter 7, you can keep your home, your car and even most of your household things. The bankruptcy court still wants you to be able to survive and when you file bankruptcy, you should see it as a second chance. If you have a business, then you may have to go with a chapter 11 bankruptcy. A chapter 11 bankruptcy can be very complicated and you should hire a professional to help you get all of your bankruptcy records in order.

Filing for bankruptcy is a hard decision to make when you are in over your head financially. Depending on your circumstances, it can be a solution to most of your financial problems. If you have nothing to hide, then your bankruptcy records will never be a threat to you. Talk to a professional about bankruptcy before you ever try to file. There may be another solution to your money problems. Be cautious, because filing for a bankruptcy could be the most important decision of your life.

Business Bankruptcy - Is It Right For Your Business?

The economic times we live in are very hard. Many businesses are struggling and trying to avoid bankruptcy. If you are in debt and it's starting to look like bankruptcy may be the only answer, be sure to consider all of your options before coming to any decisions. You may not have to take out a loan to save your business or file for business bankruptcy. Many times, all a business needs is the correct financial assistance to get back on track. Sometimes smaller businesses think that they can't afford help, but this isn't always the case.

A business debt specialist will try to help a business who is in financial trouble. They can go to bat and be a middle man on behalf of the business. These industry specialists will work directly with collection agencies, attorneys, and creditors so the business owner doesn't have to. Now the business owner can focus on running their company. The specialist will work on negotiating settlements concerning the business debts. These may include credit card debts, money owed to service providers, advertising, leases, loans, contractors or suppliers. They will work to avoid a business bankruptcy for most types of companies, including a family store, franchisee, work from home business or even factories and larger companies.

These agents will work with lenders, credit card providers, suppliers and service providers to try to reach an agreement on settlement terms. These can include arranging a longer period of time that payments can be made in, reducing the actual amount of the balance that is owed, or even both. The business can survive and rebuild, without filing for business bankruptcy.

Some consider bankruptcy to be a last resort for a business. A good business debt restructuring firm will provide a free, no obligation consultation. Maybe you think filing chapter 11 bankruptcy is the only answer. Even though bankruptcy makes sense for many businesses, the reality is that it might not be the only option. So, take your time in the very important decision about filing bankruptcy. The first thing you should do is call a company that specializes in helping businesses with debilitating debt.

Reaffirming a Debt - Keeping Secured Loans Through Bankruptcy

One of the most common questions I get from clients involved in bankruptcy is how the bankruptcy will affect their mortgage or car loan. When a creditor has a lien on any of your property, you have several options to retain and keep the property or get the fresh start by "surrendering" the property to the bank or lienholder. When it comes to most secured loans and liens in bankruptcy, you have the option to:

1) Reaffirm the debt (renew legal obligation to keep it and pay for it)

2) Surrender (discharge the debt and allow the lienholder to take possession)

3) Redeem (pay off the loan at current market value and extinguish lien)

4) Retain and pay (keep and pay but no obligation)

Most people choose to sign a "reaffirmation agreement." Reaffirmation, in most cases, simply means electing to keep your secured item (car, house, other collateral) usually at contract terms and continue to pay as normal, with the debt and obligation to pay that debt surviving the bankruptcy. In some cases, if it is in your best interest, the bankruptcy lawyer will negotiate with the creditor to alter the terms for the reaffirmation agreement to get you a better deal.

Not all creditors, however, will sign a reaffirmation agreement, which means that your option will either be to keep paying and abide by the terms of the original contract or surrender the property back to the creditor in satisfaction of the lien and your obligation on the debt being discharged in the bankruptcy. This option, known as the "ride-through," is disfavored by many creditors because if you stop paying on it sometime after the bankruptcy discharge is rendered, the creditor will be limited only to the remedy of repossessing the collateral (which may have little value) as the debtor's personal liability on the debt is extinguished in the bankruptcy.

Chapter 7 bankruptcy requires that for all secured collateral owned by the person filing bankruptcy (the "debtor") a "Statement of Intent" as to each secured item must be filed. This statement gives notice to the lienholder(s) of the debtor's intent to either reaffirm the debt, surrender it back or to redeem the collateral. The ride-through option discussed above is not an option on the Statement of Intent, as it is an unofficial understanding between the creditor and debtor.

Signing a reaffirmation agreement basically "locks" you in to the new terms, so if you were to default on the loan during or after your bankruptcy is concluded, the creditor has the remedy at law to sue you and/or repossess the collateral; therefore, it is EXTREMELY IMPORTANT that you consider your willingness and ability to reaffirm a debt when you're in bankruptcy. Bankruptcy for many is about getting a fresh start so if you want to keep a secured debt and you have the budget for it, consider your options wisely. A licensed attorney who practices bankruptcy law in your state should afford you with your options to make an informed decision.

Considerations to Make When Hiring a Bankruptcy Lawyer

Our lives are full of capital concerns these days. Businesses that are smart and are managing their operations efficiently have hired bankruptcy lawyers well ahead of time, and have kept them aware of their financial information. Money is the most important element in our lives these days and we need money to live our day to day lives and keep our businesses running. The average person may barely find their income enough to meet their ever increasing expenditures of health, insurance, rentals and utilities. Similarly, businesses may encounter somewhat the same situations that have to do solely with operating a business. This goes to show that just like a family can fall into a debt crisis, businesses are prone to the same hazards as well. The situation may be worse for businesses because clients and creditors press for payments when they hear of a business going into bankruptcy. So what do businesses do in such situations? They hire a bankruptcy lawyer. Smart businesses already have a bankruptcy lawyer working for them well before the need ever arises. But if you are just deciding to hire one for your business, you are new to the game and will need to make certain considerations. In order to help you with the process of hiring a bankruptcy lawyer for your business, we will be discussing some of the considerations you need to make.

There are many lawyer practices who are working in the law industry. Most of these firms are competent and know how to deal with the law. They are well aware of the legal procedures and they know the arrangements that will be needed in different situations. These firms will help you file for bankruptcy if you ever fall into a debt crisis. You will need an attorney who represents you excellently if you fall into a debt situation. There are some very good businesses who offer impeccable services to their clients. Most firms and lawyers also give you the opportunity to take a free consultation before you hire them. Your business should take advantage of these free consultations before you hire a bankruptcy lawyer for your business.

You will need to evaluate the experience the attorney or the firm has in their dealings. Experience is very important and it is often the most experienced attorneys and firms that offer good services. If you hire someone who is new to this field of work, you may suffer. So the need to check your bankruptcy lawyer's experience is extremely necessary. You can find out about the attorneys experience by inquiring from the firm he/she works with. The internet can also help you with this, while also giving you client's feedback about the attorney. A bankruptcy lawyer does much more than help you file for bankruptcy. They help you find solutions to your situation as well. The attorney with the most experience, credentials and best feedback is often the one who knows how to tackle different financial situations and to come out of them with the least damage you can take. They help you get your life back on track after taking a traumatic hit. Therefore, if you hire an attorney for your business, the attorney works to bring your business back to the running state it was in before this situation came about.

Choose a bankruptcy lawyer who is professional and offers your company the help it needs. A good attorney keeps you informed every step of the way. They analyze, think critically and come up with solutions. These are the people who can help you overcome a crisis.

Bankruptcy Attorney for Your Business

The basic things you need to know before hiring a business bankruptcy attorney is whether he is qualified enough to be representing your business. The business bankruptcy attorney you are planning to hire must have the credentials; experience and knowledge required and must meet the company requirements that they are being hired for. The procedure is a very hectic and complicated one therefore it is necessary to have a well qualified person working on your case. The aim of the business bankruptcy attorney is to get the creditors of the company to come to an agreement of the company. The debtors are treated in the same way and have to arrive at an agreement that is mutually beneficial. The aim is also to help a business get its operations back on track and try not to cost the company its clients and customers.

A business will often have to hire many experts to come up with a scheme that will help it manage its debts. The process, as stated before, is a complicated one and the best business bankruptcy attorney and experts need to be working on the situation. You will need a business bankruptcy attorney (or many of them) who can deal with taxation, real estate, corporate finances and contracts because these are often the areas that need to be dealt with when a company falls into debt. You can also have different lawyers working on each of these factors and who coordinate everything with a business bankruptcy attorney to come up with a good management scheme for your finances and debt crisis. He will present you with all the options you have to protect certain assets and if your lawyers are unable to come to a conclusion regarding your debt management scheme, there may be a lot of lawsuits against you, filed by the creditors of your company.

The job of a business bankruptcy attorney working on your case is to help the firm come out of its crisis as quickly as possible. When dealing with the financial situation, the business bankruptcy attorney has to provide the firms with a situation in which they can continue operating as normal while still paying the amounts it owes to its creditors, according to court approvals. The management plan for the debts which had been devises with several experts working on it allow the business to continue operations like it did before the crises, while coming out of the debt crisis slowly and gradually with one step at a time. The management scheme should be such that it does not keep the business from meeting its objectives. After describing all the functions of a business bankruptcy attorney it is important to remember that he is not responsible for managing the resources of the business he/she is representing. All responsibility of handling and managing the resources is the businesses and the business bankruptcy attorney can't be held responsible for any mismanagement of business resources.

The business attorney is just an expert who helps the business with solutions and gets them out of the crisis they are in while representing them, making their options known to them, safeguarding their assets and providing them with solutions that can help them get their business back on track in the shortest time possible. These were the specific functions of a lawyer and the work is often more intense and demanding that representing a family who files for bankruptcy. The charges of this service are high to and it is up to the business to hire a lawyer that they can afford to represent them.

Bankrupt - What Does It Mean?

What is the definition of bankrupt? The dictionary definition is "judged legally to be unable to pay off personal debts, completely lacking in a particular quality, especially in good or ethical qualities, somebody who is unable to pay his or her debts".

So let's consider that in light of the current global economic crisis. Basically, the countries of the world are bankrupt, including the United States. They are unable to pay off their debts.

As a matter of fact, not only can they not pay off their debts, or speaking of the United States, not only can it not pay off its debt, its currency is debt currency. The currency is called "Federal Reserve Notes".

So what is a "note"? Well, if a person has a note at the bank, it means they have a loan from the bank on which they are paying...for a house, a car, a business, something.

So we have a bankrupt nation, in debt, using debt currency. And, going back to the definition of "bankrupt", it involves something "completely lacking in a particular quality". That quality that debt currency lacks is true value. It has no value, it is a note. The only value it has is that which is traditionally afforded it by reason of use of society. It is accepted for daily use even though it is debt currency.

Is there anything that is not bankrupt? Yes, there is a true money that has never been bankrupt. What is that, you ask? Gold.

Gold has historically held its value through the centuries while numerous currencies have failed throughout history.

There is a swing back to gold. There are problems, though, with holding certain forms of gold. If gold is government issued gold, it can be confiscated. If a person decides to sell his or her gold, the responsibility lies with the seller to prove the value of the gold. And finally, if a person owns a gold coin, or an ounce of gold, and the paper currency totally fails, how will that gold coin or ounce be used in commerce? You wouldn't go to the local grocery store and buy, say, $100 worth of groceries with an ounce of gold.

What is the solution? Use LBMA certified gold, gold with the highest form of certification recognized worldwide. Use LBMA certified gold that is in gram amounts, which makes it more usable for transactions in the marketplace.

LBMA certified gold is a gold that will not go bankrupt. It has real value.

Things You May Not Know About Bankruptcy

The bankruptcy process is meant to be a tool of assistance and can provide many benefits to those who qualify. One of the most notable aspects of bankruptcy is its ability to provide debt relief and protect certain assets from liquidation by creditors. While both of these aspects are great for those involved, they aren't the only things about the process worth noting. In order to get the most out of bankruptcy there are a few hidden aspects that everyone should know.

The Good

Bankruptcy is riddled with potentially positive outcomes that are not well known or highly advertised. While most people know that bankruptcy can protect a home from foreclosure, most have no idea that filing for bankruptcy can help resolve second mortgages or home equity loans as well. The bankruptcy process can help reduce mortgage debts by converting a second mortgage or home equity loan into an unsecured debt, which can then be eliminated in bankruptcy. When this happens the debtor is left with the responsibility of repaying the original mortgage debt only. However, not everyone or every mortgage will qualify for this assistance, but it is something worth asking your bankruptcy attorney to review.

A portion of certain car loans can also be handled similarly. If a debtor is significantly "upside down" on a car note, meaning the car is worth far less than the amount owed on the loan, a portion of the debt may be written off. The 910 day rule states that a vehicle purchased more than 910 days before the bankruptcy filing day can have the amount equal to the difference between fair market value and loan amount converted into an unsecured debt. This allows for the debtor to make debt payments towards a fair market value loan rather than having to pay the original loan amount.

The Bad

Many people seek bankruptcy without reviewing some key rules about how the process works. First, the debtor is responsible for completing certain actions and complying with bankruptcy laws. This includes completing the bankruptcy petition accurately and filing it with the court. If a debtor attempts to conceal or withhold information about their debts or assets, their actions could be viewed as fraudulent and the case could be discharged by the court. The debtor is also required to pay the required court filing fees and complete a credit counseling course. Failure to complete either of these steps could also lead to case dismissal.

Many people who have had their case dismissed may be interested in re-filing their case with the court. There are strict rules about how often a person can file for bankruptcy. If a person's case was dismissed due to failure to complete the required steps, they must wait 180 days before re-filing their case. If the case was dismissed due to fraud, or suspicion of fraud, they may never be able to re-file their case. Anyone who has had debts previously discharged in bankruptcy court must also adhere to certain rules for re-filing their case. A debtor must wait 2 years to file for Chapter 13 after a previous Chapter 13 discharge; and wait 4 years after a previous Chapter 7,11 or 12 discharge. The waiting time is 6 years to file for Chapter 7 or 11 after a previous Chapter 13 or 12 discharge and 8 years after a previous Chapter 7 or 11 discharge.

Chapter 7 Bankruptcy: Your Guide to a Fresh Start

WHAT IS THE "AUTOMATIC STAY" IN BANKRUPTCY?

When a person files for bankruptcy (Chapter 7, 13, or 11), all his or her creditors are immediately prevented from attempting to collect the debt. This is called the "automatic stay." This means that filing for a bankruptcy immediately relieves a person from creditor harassment such as annoying phone calls, lawsuits, repossessions, foreclosures, and any other method for collection of a debt.

Likewise, prior to Bankruptcy, a creditor may initiate the wage garnishment procedure against you in order to take 25% of your wages. The filing of a Chapter 7 Bankruptcy automatically stops the creditor from proceeding with the wage garnishment. In the same manner, your finance company can be stopped right away from repossessing your car. These are all examples of the "automatic stay" of Bankruptcy.

CHAPTER 7 OVERVIEW

Chapter 7 is sometimes called a "liquidation" or "straight" bankruptcy. In Chapter 7, a business or consumer debtor obtains a "discharge" of all debts after a Bankruptcy Trustee [appointed by the court] either liquidates the debtor's assets to pay creditors or determines that the debtor has no assets to pay creditors. A discharge is an order of the Bankruptcy court stating that the debtor is released from debt, such as a credit card bill. In other words, the debt is wiped out and the debtor no longer owes the creditor any money.

In most consumer cases, there are no assets for the Trustee to investigate or administer. This is because most consumers have assets which can be exempted under California law. For instance, under California law you may exempt your furniture, jewelry, clothing, etc.

You may keep your car in Chapter 7 bankruptcy if you wish to do so and you are current on your monthly finance payments. On the other hand, you may also surrender your vehicle if you wish and you will discharge all liability to your finance company.

The new bankruptcy law imposes the new requirement that you must now obtain a briefing from an approved nonprofit credit counseling agency within 180 days of your bankruptcy filing. Under the new bankruptcy law, you will not be eligible to file a Chapter 7 Bankruptcy if your income is above the median income of the state in which you live, and you can afford to pay a certain amount of your debts. In addition, a Chapter 7 debtor's discharge will be denied if the debtor received a Chapter 7 or Chapter 11 discharge in a previous case filed within 8 years of the current case.

A Chapter 7 does not allow you to make a plan of repayment to your creditors. If you are behind on your mortgage and wish to "cure" or make up payments to the mortgage company, you will need to file a Chapter 13 Bankruptcy.

Understanding the Alternatives to Filing for Bankruptcy

When dealing with your debt, the one thing that can be said is that there is no one-solution-fits-all. Every person will have different circumstances that brought them to their debt and will be dealing with different extenuating factors. For that reason, it is important that you do not attempt to give a blanket answer to your case. Just because you are dealing with debt does not mean that you file for bankruptcy. Again, it doesn't necessarily mean that you shouldn't file - it just means that it is a topic that deserves careful deliberation and thought.

Don't let a pushy law firm convince you that filing for bankruptcy is the right solution before you look at all of your options. There are many ways that you can use to help reduce your debt that could be even better suited to your individual case. For example, in some cases, the best way to reduce your debt could be the most obvious: save more. By cutting frivolous spending and learning better financial patterns, you might be able to find an organic solution to dealing with your debt that can set you up on a better financial foundation for the rest of your life.

Unfortunately, however, this cannot always the desired solution. In some cases the debt is too far gone for any simple fix like that to do any good. This is where an attorney will be able to help you address all possible alternatives. For example, you could possibly look to negotiate the interest rates on your loans. This could be for payday loans that you have taken out of on credit cards; while not always possible, an aggressive attorney might be able to help you reduce your monthly payment or come up with lower interest so that you will be more easily able to afford paying it off.

Another alternative to bankruptcy is known as debt consolidation. This is exactly what it sounds like - it is a way in which you are able to consolidate the many different lines of debt that you have open into one, secure debt. This is, preferably, a debt that has a lowered interest rate. This way, you can get the peace of mind of only have to pay one debt per month - at a secure rate and for less than the many different interest rates that you were dealing with before.

If you find that you are facing foreclosure, it is also important that you realize that there are many different solutions that you can utilize in an attempt to save your home. Bankruptcy might seem like the glaring choice, but the truth is that it might be too extreme. For example, you could look into what is known as a short sale. In this alternative, you are able to sell your home - typically for a price that is less than what you owe. In this option, you would work out an agreement with the lender to allow for the debt to be settled for less than the actual price and they would receive the profits from the sale. This is not always the most desirable alternative because it means that you are without your home, but it also means that you're no longer underwater in payments you cannot afford.

Another option to avoiding foreclosure is to look into the possibility of a deed in lieu. In this option, you would hand over the deed to your home to the lender - this would settle the debt in and out of itself. In this option, you again lose your home, but you do not suffer from the black credit mark that foreclosure would put on your record. You are also able to settle your debt completely, getting yourself on financially stable ground once more.

Finally, it is in your best interests to look into what is known as loan modification. This alternative allows for a lawyer to negotiate with your lenders in regard to your loans - no matter whether it is for a mortgage or in regards to a car payment. The agreement could include a lengthened loan period for more time to stretch the payments over, less interest rate or could even be arguing for a reduced balance. While it seems unlikely that the lenders would be agreeable to this, the truth is that lenders don't want you to file for bankruptcy as they would likely never see their money in that option. At least by modifying the loan, they will be able to see some of the money returned.

These are just a small sampling of the different alternatives that are available to you if you are currently struggling with debt. The best way in which you can know for sure what the best option for you is to talk to an experienced Houston debt relief attorney in the area. You should not feel pressured to file for bankruptcy - and by working with a knowledgeable lawyer you will be able to come to the solution that you are most comfortable with, and the one that helps you put your life together once more.