Feb2nd
Tuesday, February 2nd, 2010
Filling out bankruptcy forms can be one of the most difficult parts about filing for bankruptcy, although these forms are a necessary evil to complete the legal process. Unfortunately these legalities can add major emotional stress to an already difficult situation. Especially if you have decided to go about filing on your own, without the help of a lawyer or financial service company, you may find yourself overwhelmed with trying to understand which bankruptcy forms are right for which chapter.
If you are an individual who is filing for bankruptcy, most likely you will be filling out bankruptcy forms specifically dealing with either Chapter 7 or Chapter 13. Even as a business you may be filing for Chapter 7 or Chapter 13, although you may be filing for Chapter 11 as well. In any case, there are separate forms that need to be filled out with each particular chapter stating the intention to file bankruptcy under that chapter.
The individual or business may also have other special bankruptcy forms that go along with a particular chapter. For instance, Chapter 13 and Chapter 11 are reorganization chapters and will require a form that discusses how and when creditors will gather to meet and discuss the finances of the individual or business for repayment plans. If the individual is filing for a complete liquidation, Chapter 7, forms for possible exemption of assets will need to be filled out if the debtor plans to keep any of their personal belongings.
In all cases, the debtor will be required to file bankruptcy forms regarding a statement of petition, a list of creditors, personal income, personal property, and Declaration of penalty under perjury. These forms will simple let the courts know of the individual or business’ plan to file, the assets the debtor has available, the current available income, and the debtor’s knowledge that lying about finances will have legal consequences.
With the new age of technology, all bankruptcy forms are available through the United States court system at http://www.uscourts.gov/bkforms/bankruptcy_forms.html. Of course the availability of the forms does not necessarily mean that all individuals or businesses will clearly understand which forms apply to them. If you are confused about which forms to fill out, don’t be afraid to ask the court system for help.
Unfortunately the court system may be overwhelmed with other cases they feel are more important making it difficult to find answers to bankruptcy form questions. In this case, you can always consult with a legal aide, a bankruptcy attorney or even a financial service organization that can help you understand the paperwork better.
Even if you don’t plan on hiring an attorney to handle the case for you, it may be worth the time and energy to consult them regarding the paperwork that goes along with the process. You may also want to consider a bankruptcy service organizations online, which can help answer questions and guide debtors through the process.
Keep in mind that each state court system has secretaries available who can type up the forms for you, although there will be an additional charge for this service. Most law firm or legal aide organizations have similar services that may be beneficial in helping debtors get through the process of filing bankruptcy forms.
Posted in avoid bankruptcy, bankruptcy, bankruptcy attorney, bankruptcy forms, bankruptcy law | No Comments »
Jan29th
Friday, January 29th, 2010
Finding yourself in a difficult financial situation can be scary. Facing the possibility of dealing with bankruptcy can be even scarier, especially since most individuals or businesses don’t spend time making themselves aware of the legalities that go along with the process. Since many debtors are ashamed of the situation, they often fear asking too many questions regarding the process. As bankruptcy is one of the most important financial decisions a business or individual will ever make, it is essential to have correct bankruptcy information before getting starting with the process.
The federal court systems in the United States deal with all bankruptcy information and set the laws regarding the process. This does not mean that an individual has to go to Washington D.C. to file though, as each state will deal with individuals and businesses during proceedings. This may mean going all the way to the state capitol though. The federal laws on bankruptcy information state that these laws are in place simply to give an honest, but fallible debtor a fresh start.
One of the most important pieces of bankruptcy information to know is that the courts don’t come to the individual or business to file, the individual or business goes to the courts. Simply by filing a petition called a Statement of Intentions, the debtor lets the court system know that they are applying for bankruptcy.
Just because a debtor files the Statement of Intentions does not always mean they will go all the way through the legal system. The courts will need to gather important bankruptcy information through forms that will need to be filled out by the debtor. These forms allow the courts to review a debtor’s credit history, list current creditors and the amounts of the debts, as well as current and past work history. From this the federal court system will make a determination as to whether or not a debtor can proceed with the court case.
Keep in mind that the debtor does not have to hire an attorney to represent them through the proceedings, although attorneys can be a great source of knowledge regarding bankruptcy information. Many debtors are scared to hire an attorney because of additional charges that they cannot afford, but most attorneys are reasonably priced due to the circumstances. Often times attorneys will not charge a fee for an initial consultation when the debtor is simply trying to acquire bankruptcy information.
Unfortunately, most of the general public does not have a thorough understanding of bankruptcy information. This causes misconceptions regarding bankruptcy. One of the major misconceptions of bankruptcy is that all possessions are taken and repossessed by the courts. Since there are many different chapters of bankruptcy, there are also many different takes on repaying debts, and only Chapter 7 requires a complete liquidation of assets. Even with Chapter 7, debtors are allowed exempts, or items that are necessary for living.
One more important piece of bankruptcy information to keep in mind is that there is a new bankruptcy law in place called Bankruptcy Abuse Prevention and Consumer Protection Act. This law was implemented in 2005 to stop fraudulent bankruptcy claims and may make it more difficult to convince the courts of a claim.
Although filing for Chapter 13 and Chapter 11, or reorganization plans, have not changed that much, filing for Chapter 7 has becoming increasingly difficult. Previously, debtors were not required to take courses on debt, but with the new law in place, Chapter 7 debtors are required to take Credit Counseling and Financial management courses before the process can be completed.
Posted in avoid bankruptcy, bankruptcy, bankruptcy attorney, bankruptcy information, bankruptcy law | No Comments »
Jan15th
Friday, January 15th, 2010
If you currently have unbearable debts and thinking of wipe it off from your statement by declaring bankruptcy; Just on-hold your decision for a while, there may be other options available. Try to improve your situation before you investigate the bankruptcy option. No matter which way you go, evaluate the 5 steps below to see if you could avoid taking that drastic step.
1. Detail out all your debts
First, look at all your secured debts such as mortgage and car loan. How much are the repayment for each month? What are the interest rates?
Then, list down all the fixed expenses such as power, phone, insurance, food, etc. What are the total costs for these expenses?
Follow by examining your credit card debts. Take out all your credit card statement and write down the amount you owe for each card and their interest rate.
Finally, write down all your other expandable; these are your optional expenses such as entertainment, gym, membership, dinners at restaurant and other impulsive purchase.
2. Eliminate the unnecessary expenses
Now you should have a better idea on where your money goes; Make a diet plan on your cash; In your Cash Diet Plan, list down all the your savings from the elimination of the optional expenses. You will be surprise that how much money you can save by carefully control your expenses. The money you saved can be used to pay down your debts.
3. Get your family involve and work as a team
Don't do it alone because under such as stress condition, you may out of control and may not think and plan in clear mind; get your family together and let them know your financial problem and have them to work together to control the household spending and eliminate the unnecessary expenses.
4. Cash out with your assets
If you have equity, you are in a better situation because you could refinance or get a secured loan for pay off your debts. If you are looking for bankruptcy as your debt relief options, your may not have any equity in hand already. But equity is not the only asset; many people tend to forget that things that have cash value, but not sentimental value. Think antiques, old clothes or collectibles.
List down all the assets you own which your can sell and cash out. Check the closets, garage and storage locker, she says, "and find out what you can live without". Then, cash them out through garage sales, eBay or consignment shops. Use the money to pay down your debts as much as possible.
5. Go for consumer counseling service
Arrange an appointment with a credit counseling agency and let the counselor to understand your finance situation and draft a budget for you. Review the debt management plan proposed to you before your sign to enroll into the plan. You may get a few plans from other credit counseling agencies for comparison. Choose the one which best suit your current financial needs. Although a debt-management plan can have a negative impact on your credit, it's better than bankruptcy.
6. Get A second or part time job
Utilize your out-of-work time on second or part time job. Although you may not earn much in your part time job, a little money coming in can keep a bad financial situation from getting worse.
Summary
Bankruptcy may be your easy way out from debts but the consequences may follow you for 7 to 10 years. Always look for other alternative before choose for this dramatic options.
Posted in alternative option, bankruptcy, debt consolidation, debt free, debt relief, grid rid of debt | No Comments »
Nov7th
Saturday, November 7th, 2009
Individual Voluntary Arrangement
The first thing to do when considering an Individual Voluntary Arrangement is to have a meeting with an Insolvency Practitioner. This meeting can either be face to face or over the telephone.
The meeting is to determine whether or not an IVA is a suitable option for resolving financial difficulties and to advice of what other options may be available.
If an IVA is the best solution, then the next step is for the Insolvency practitioner to gather information about the debtor’s financial details. This includes priority household payments, information about any assets the client may have and all creditor information such as creditor names and account numbers.
The Insolvency practitioner is under obligation to verify all information given by the client, therefore the IP will gather proof to support that the details are correct.
Once the information is verified, the IP will then begin to draft the proposals. The proposals are to be fair to the creditor and debtor alike. The idea is to show the maximum amount the debtor can afford to pay and to show the creditor this information in order to get the creditor to accept the amount that is being offered.
Once the proposals are drafted up, the debtor will look through the proposals, and if happy, sign them. An IVA is a legally binding agreement; therefore it is important that all information is correct before signing the proposals.
Once the proposals are signed by the debtor, they are then sent off to the creditors for their consideration. Creditors are generally given 2 to 3 weeks to vote on the proposals. Creditors can either decide to accept, reject or accept with modifications.
Posted in bankruptcy, individual voluntary arrangement, insolvency practioner, iva | 1 Comment »