The Myths and Facts about Personal Bankruptcy

Personal bankruptcy is a very undesirable situation. Often caused by sudden changes in your financial situation due to medical emergencies, unemployment, excessive debt or divorce, filing for personal bankruptcy should be considered as a responsible step towards regaining financial freedom. If you are considering filing for personal bankruptcy, here are some of the myths and facts about it.
Myth #1: You can not file for Personal Bankruptcy.
Contrary to this myth, changes made by the US Congress in 2005 allow any debtor to file for personal bankruptcy. Bankruptcy is also governed by state laws. If you file bankruptcy in Arizona, Arizona bankruptcy lawyers and Phoenix bankruptcy lawyers can help you determine whether you qualify for a Chapter 7 (liquidation of assets) or Chapter 13 (re-organization) bankruptcy.
Myth#2: Filing for Personal Bankruptcy is embarrassing.
If you do not file for bankruptcy, it will actually be even more embarrassing to be hounded by your creditors. Taking charge of your financial situation and owing up to your responsibilities is actually admirable and should be something to be proud of.
Myth#3: You will always have a bad credit score.
If you must know, the completion of personal bankruptcy proceedings will clear all previous credit record allowing you to begin with a new and clean slate. Many Phoenix bankruptcy lawyers and Arizona bankruptcy lawyers can guarantee this based on their extensive experience.
Myth#4: You can only file for personal bankruptcy once in your lifetime.
If you filed for a Chapter 7 bankruptcy, you will need to wait a period of 8 years before you can file for the next Chapter 7 bankruptcy. On the other hand, you can file for a Chapter 13 bankruptcy as often as your situation requires.
Myth#5: Personal bankruptcy means losing everything you have.
On the contrary, bankruptcy is designed to protect a debtor from losing all assets and at the same time find a way for all the debt to be settled. Phoenix bankruptcy lawyers and Arizona bankruptcy lawyers can provide you with the right information so that you will not end up losing any of your precious belongings.
Myth#6: Filing for personal bankruptcy is hard and impossible.
Anyone can file a personal bankruptcy. You will have no difficulties at all. If you want, you can hire Phoenix bankruptcy lawyers and Arizona bankruptcy lawyers to help you every step of the way.
Personal bankruptcy is a serious but effective solution to your financial problems. Before you file for one, make sure that you have explored all available bankruptcy alternatives.



Natalie Aranda writes about laws and family. Personal bankruptcy is a very undesirable situation. Often caused by sudden changes in your financial situation due to medical emergencies, unemployment, excessive debt or divorce.Bankruptcy is also governed by state laws. If you file bankruptcy in Arizona, Arizona bankruptcy lawyers and Phoenix bankruptcy lawyers can help you determine whether you qualify for a Chapter 7 (liquidation of assets) or Chapter 13 (re-organization) bankruptcy. Looking into local yellow page, you'll have a long list of Phoenix bankruptcy lawyers to choose from.

What is Personal Bankruptcy?

If you're having trouble paying back debt and you're starting to wonder what your options are, the idea of declaring bankruptcy has probably crossed your mind. Nearly everyone's heard of personal bankruptcy as a means of managing debt problems, but few are clear on exactly what the procedure entails or how it can help. To answer the question "Exactly what is personal bankruptcy?" here's a brief overview of the procedure.
The basics of personal bankruptcy
Bankruptcy is a legal method of either eliminating debt or developing an affordable payment schedule so those who find themselves with insurmountable debt can get a fresh start. In some areas, the right to declare bankruptcy is available only to corporations. Others, however, allow for personal bankruptcy, a legal procedure that lets an individual declare bankruptcy.
You're not required to hire a lawyer to file bankruptcy. You can prepare your own petition and represent yourself during the hearing. That said, bankruptcy law is fairly complicated and you won't get any special allowances for error just because you filed your own petition. In most cases, you're better off having a lawyer on your side.
How personal bankruptcy can help you
Contrary to popular belief, there is no type of personal bankruptcy that can free you of any and all types of debt. Debts like secured student loans, taxes, and child support must still be paid. On the other hand, debts for things like credit cards and car payments can be managed by declaring bankruptcy.
Types of personal bankruptcy
There are two primary forms of personal bankruptcy: Chapter 7 and Chapter 13. The most common type is Chapter 7, which is also called a "liquidation bankruptcy." In Chapter 7 bankruptcy, all of the debtor's assets, other than those specifically exempt, such as personal belongings and family heirlooms, are turned over to a trustee for sale. Money from this liquidation sale is then distributed among the creditors.
With Chapter 13 bankruptcy, a plan is created for repaying all or part of the debts, but you're not completely freed of those debts. This is most frequently used to stop foreclosure on a home or to pay taxes on an affordable schedule.
Why personal bankruptcy was created
Much of today's economy is based on consumer debt. Taking on large mortgages, car payments, and credit card debt seems like the norm. Without careful planning, though, these seemingly "normal" debts can easily get out of hand.
While some people find themselves with insurmountable debt because of lack of self control, many more people run into debt due to medical bill, job loss, or other unavoidable events. Personal bankruptcy was created as a way to relieve these debt burdens to give well-intentioned people a chance to straighten out their financial situation.
The downside of personal bankruptcy
Naturally, a procedure as serious as declaring bankruptcy isn't without drawbacks. Bankruptcy remains on your credit report for years and can cause financial difficulties like increased interest rates, which make recovering from financial difficulties even harder. The whole point of personal bankruptcy, however, is to give the debtor a fresh start, so it is possible to regain a normal financial situation after bankruptcy.
If you've been wondering, "What is personal bankruptcy and can it help me?" before you jump to any conclusions, check into your local jurisdictions bankruptcy laws and consult a lawyer before you file.



Understand more about bankruptcy and how it can affect your life. In fact you should avoid bankruptcy. Find out more about bankruptcy today by visiting this website: http://www.outofbankruptcy.info

Which Type Of Personal Bankruptcy Is The Best For You

If you have caught yourself in the nasty trap of debts and your financial situation is not strong enough to pay off all these debts, you must be into a dilemma of, what to do or what not to do. May be, you are planning to file for personal bankruptcy. However, do you know that there are two types of personal bankruptcy and you can choose only one? The bankruptcy laws have provided two options for the people, willing to file for personal bankruptcy. The first option is to choose to go for the straight bankruptcy, i.e. chapter 7 bankruptcy and the second option is to choose the Wage earner plan i.e. chapter 13 bankruptcy. This article intends to explain these two options for you and the circumstances in which you can use them. Let us go exploring.
Chapter 7 Bankruptcy
It is important for you to understand that chapter 7 bankruptcy is the most common form of bankruptcy and usually is termed as straight or liquidation bankruptcy. In general, when people talk about personal bankruptcy, they have the concept of liquidation bankruptcy in the mind. Therefore, you must note that the liquidation bankruptcy is not the only type of bankruptcy. As per the chapter 7 bankruptcy, all your assets are sold off, under the supervision of the trustee, appointed by the bankruptcy court. The money thus collected, is then used to pay off the respective debts of the creditors. The creditors get their share as per the priority level, as approved by the bankruptcy court. However, now with the inclusion of the new bankruptcy laws, not everybody can easily qualify for this type of personal bankruptcy. It is mandatory for you to pass the means test and go through the US government approved credit-counseling agency, before you file court petition for chapter 7 personal bankruptcy.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is commonly known as wage earner plan or reorganization personal bankruptcy. As the term suggests, as per this type of personal bankruptcy, your assets are not sold off. Instead, you are asked by the bankruptcy court to continue with your business venture, and pay the reduced claims of the various creditors simultaneously. As per this form of personal bankruptcy, you may be granted your request to pay off the debts at the rate of 75 cents on each dollar, or may be lesser than that.



There are basically two types of personal bankruptcy [http://www.filing-bankruptcy.biz/personal-bankruptcy-1.html] –chapter 7 bankruptcy and chapter 13 bankruptcy. The first form is better known as liquidation bankruptcy, where all your assets are sold off, to pay off the debts, and the latter type of bankruptcy is known as wage earner plan, where you get a chance to reorganize your finances, while paying off the debts simultaneously. Visit Filing Bankruptcy for more bankruptcy information; to know about filing bankruptcy costs and the need and role of a bankruptcy lawyer or filing bankruptcy online [http://www.filing-bankruptcy.biz/filling-bankruptcy-online.html].

Marriott Says Waikiki Owner Bankruptcy Self-Defeating; Will Pursue Tens of Millions of Dollars in Damages

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Equifax National Analysis Reveals Myriad of Small Business Bankruptcy Trends

While better days may be on the horizon for the commercial bankruptcy market, it remains to be seen if recent trends will continue for the nation's more than 24 million small businesses.

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NewPage Corporation Launches Process to Restructure Debt and Position Overall Business for Long-Term Success

NewPage Corporation announced today that, to facilitate an orderly debt restructuring and position the overall business for long-term success, its corporate parent, NewPage Group Inc., and certain of its U.S. subsidiaries (collectively,...

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Alexander Gallo Holdings Obtains Court Authority to Make Payments to Affiliate Court Reporters

Alexander Gallo Holdings Obtains Court Authority to Make Payments to Affiliate Court Reporters

Alexander Gallo Holdings, LLC (AGH) announced today that it has obtained U.S. Court permission to make payments to certain affiliate court reporters for work performed prior to the start of the Company's Chapter 11 restructuring.


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Albuquerque Studios Emerges From Bankruptcy Debt Free

Albuquerque Studios Emerges From Bankruptcy Debt Free

Amalgamated Bank, America's Labor Bank, announced here today that after a bankruptcy reorganization, Albuquerque Studios (ABQ Studios) is now owned by a wholly-owned subsidiary of the Bank's LongView Ultra Construction Loan Investment Fund. ABQ Studios is now operating debt-free, and continues to be managed, going forward, by Pacifica Ventures. 

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Jackson Hewitt Completes Financial Restructuring and Emerges from Chapter 11

Jackson Hewitt Completes Financial Restructuring and Emerges from Chapter 11

Jackson Hewitt Tax Service Inc. ("Jackson Hewitt"), the nation's second largest tax preparation firm, today announced it has completed its financial restructuring and emerged from its Chapter 11 reorganization, following the filing of its "pre-packaged" reorganization plan on May 24, 2011. "With the strong support of our lenders, Jackson Hewitt emerges from this process as a highly-energized and financially healthy company," stated Philip H. Sanford, president and chief executive officer of Jackson Hewitt.

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CB Holding Corp Files Plan of Reorganization and Disclosure Statement

Completes Sales of The Office and Charlie Brown's Steakhouse Chains

CB Holding Corp. (the "Company") announced today that it and all of its subsidiaries have filed a Joint Plan of Reorganization (the "Plan") and related disclosure statement with the U.S. Bankruptcy Court for the District of Delaware.  The Plan effectuates an agreement between the Company's lenders and the official committee of unsecured creditors that was appointed in the Company's Chapter 11 cases to split proceeds of sales of the Company's assets that provide for a recovery to unsecured creditors.  A hearing has been scheduled for September 9, 2011, at which time the Court will consider the disclosure statement and schedule a hearing on confirmation of the Plan.


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3 Things You Should Avoid If You Are in Financial Trouble

The difference between a normal amount of debt and an unhealthy amount is often difficult to tell. Many folks find that what they thought was a normal amount of debt suddenly becomes unbearable. I have three things that you should watch out for when your debt is starting to be too much.First, DON'T simply make the minimum credit card payment. If all you do is pay the minimum, and keep buying things with your credit card, your balance will continue to increase. How so? Rather than get you out of debt, paying only the minimum traps you into debt because those payments never dent the actual balance. Aside from increasing your overall balance, the amount of your minimum payments will increase too. Soon enough, you won't be able to pay the minimum.
Second, DON'T use your loved ones to help you pay for your debs. In all likelihood, if you find yourself in debt, not only will you seek out the help of friends and family, but you will probably get it. Nobody wants to watch a loved one struggle, and if they feel like they can help you, they will try. But, the generosity of others often comes with a very high price. You aren't just putting the most valuable relationships you have in jeopardy, but you are hiding from your own trouble. Taking advantage of other people will make you feel more secure about your financial situation than you should be.
Third, DON'T just hire a debt settlement agency because they make big promises in flashy advertisements. Debt settlement isn't a tried and true system like bankruptcy. Often it requires some sort of expensive upfront fee and does not guarantee you the results that they advertise. Debt settlement agencies, furthermore, can't stop the credit agency from calling you nonstop, going after your other property, or wage garnishment.
It's easy to think that there's nothing else to do! But in reality, you do. A Chapter 7 or Chapter 13 bankruptcy could be a wiser choice than the uneasiness of making minimum payments, using your family and friends, or debt settlement agencies.
A bankruptcy attorney might be the perfect person to get you protection from foreclosure and credit card debt help. The thing is, for those who qualify, a Chapter 7 bankruptcy will not simply renegotiate debts, but eliminate them. A bankruptcy lawyer can legally protect you from your creditors, stopping all the calls, and putting an end to your payments until you get back on your feet.
Now, if you think you have been doing any of the DON'Ts you should probably do some more research on other possible choices.
Missouri Bankruptcy attorney James Brown has been working to relieve the debt of hard-working American families for over 15 years. He has dedicated his career to educating consumers about options for debt relief and has released 5 publications, including, "Get Out of Debt: Secrets Your Creditors Don't Want You to Know." You can request a free copy at http://www.castlelaw.net

Bankruptcy and Attorneys - Part 2

Bankruptcy and lawyers Availing the benefits of Chapter 7 and Chapter 13 statutes can be very difficult for the average individual who is in debt. Usually other options such as debt settlement and debt reductions help to reduce the overall debt, so the debtor finds it easy to repay. However for certain individuals who have borrowed substantial money, or business concerns which have incurred heavy losses, such settlement or elimination options are not available, since they are do not satisfy the eligibility criteria. In such cases, there is just one option available to find an acceptable solution through which it is possible to arbitrate with the creditors - filing for bankruptcy. Filing bankruptcy is a specialized process, and one needs bankruptcy lawyers or a bankruptcy attorney - as they are generally called - to successfully obtain a profitable solution. This second part of the article tries to provide information on finding and choosing the correct bankruptcy attorney.
Finding bankruptcy attorneys


It is important to find the right kind of attorney to represent you in your bankruptcy issues. Finding the correct person is important since your financial and social future rests on this person. The first thing is to find the attorney. This is how one can do it.


* Looking up in yellow pages
The yellow pages provide a valuable, as well as a helpful source for finding bankruptcy lawyers specializing in various fields and debt conditions. Attorneys are generally categorized according to their particular field of specialization. It is recommended to check out the sub-heading of Bankruptcy Attorneys, which provides a list of specialized attorneys who can possibly help you out.
* Recommendations
There is another way to find a qualified and reputed bankruptcy attorney. It is by a referral from other lawyers, as well as banking experts, who are working in, and familiar with the field. In case you know some attorneys, it is possible for them to provide a few helpful recommendations.
* Ask the family and friends
Attorneys are bound by a confidentiality clause, which prevents them from sharing or advertising their past litigations and cases with the masses, and also restrains them from advertising them openly to bring in business. So it is advisable to discuss your problems with a few trusted clients who have faced bankruptcy issues, and get their opinion as to which attorney is good, and in what field or issue. Past clients are the best option for reliable as well as effective sources of information, since they have experienced the situation first hand, and know all the pros and cons. Alternatively, one can also discuss the issue with family members, relatives, and friends, and find out what they have to say. It can be surprising to know that some of the most practical and beneficial solutions can be obtained by merely talking to people, finding out what they have to say, and what they feel about how the problem should be dealt with.
Choose a bankruptcy attorneyIt is very important to find an experienced and vetted bankruptcy attorney who has the knowledge, as well as the experience to make a substantial difference, as far as your financial situation and debt problems are concerned. One should ideally look for an attorney who provides personalized services - so if you are prevented from meeting the main person, and are forced to confer with the associates, or assistants, it is very likely that the personal help your desire might just not be available for you. Specialized help is required and essential for moving forward from tough financial hurdles. The fact is majority of the bankruptcy cases do not end up with actual battles involving prolonged litigations in the U.S. That is what the statistics indicate. But a legal presence is very much required, a representative who can arbitrate on behalf of the debtor in the court. So the attorney should have some experience in actual proceedings and court related work. If required, the attorney should be able to put up a decent fight in the court. So it is important to seek assurance and avail independent recommendations, as well as evaluations of the attorney who is going to represent you.
From the fees point of view, one should have a clear talk and work out the exact procedure involved in payment of legal fees, likely to be charged by your bankruptcy lawyer. Some attorneys entertain bargains, but it is advisable to thoroughly check out the lawyer's background before thinking about this particular option. Some attorneys do not like to bargain, and often think clients who bargain are likely to face financial difficulties in paying their fees in the future, and so they might not take up your case. For the rest, bargaining is a practical exercise that every businessperson undertakes to avail a cost effective situation. So it depends upon case to case. A very low fee structure generally indicates either deficiency of services, or poor reputation - both which should be avoided at all costs. And a bloated fee structure might indicate proficiency, but the main question remains - are the fees affordable? Would it be possible to save something after the litigations, and after paying huge fees to the attorney? There are many issues and factors to consider. Generally, the debtor should look out for a bankruptcy attorney who has acceptable confidentiality ratings, and should not hesitate to check out various lawyers before reaching to a particular decision. And the nature of your debt and bankruptcy option decides a lot in determining your bankruptcy lawyer. Certain attorneys are specialized in a particular field of work. So if your case demands, you might be forced to hire the particular lawyer to represent you, and pay the designated fees. Sometimes, the matter is not that serious in which case any bankruptcy lawyer might do. It is worth taking a look at the state's Attorney General's office and find reliable candidate firms doing business in your area. The final option is to contact reputed bankruptcy firms outside your jurisdiction and ask for recommendations as well as recommended bankruptcy lawyers in your city. This can be a great way to get an insight into attorneys practicing bankruptcy laws.
Our bankruptcy lawyers will represent you and help you in filling bankruptcy. With the help of these lawyer you can go for filling chapter 7 bankruptcy or chapter 13 bankruptcy to reduce your debt.

Consolidate Debts - Loans, Bankruptcy and Credit Counseling?

Consolidate debt loans? Many people find themselves in debt and it will be very hard not to feel the pinch and stress of dealing with it. It always reverberates in their minds on how they will ever get back on their feet again. It seems very hard to find what the answers to their debt problems are. But in actual fact there are options available that can be easily obtain. For instance, consolidate debt loans, bankruptcy refinancing, credit counseling, debt management counseling and the like.The most popular and most used way of dealing with their debts and debt problems is to consolidate debt loans or a consumer credit counseling program to consolidate credit card debts. These types of solutions will be largely based on your own personal financial situation. Debt consolidation loans, credit counseling, bankruptcy are types of tools you can use in dealing with your debt problems. But always be mindful though and aware of the pitfalls that these types of programs can bring about.
While debt consolidation, bankruptcy, and credit counseling can all lower your monthly debt payments and gives some needed relief, they can also have some negative consequences. Through debt management agencies, you can find a responsible course of action which is credit counseling. This is the most morally right way to deal with your debt problems. This way you will learn how to manage your finances better and more efficiently. Although it may be the responsible way of doing things, it may not be your best option.
If you choose credit counseling, there are some online companies who offer free consultation. Even consolidate debt loans, you can also find free quotes online thereby giving you an idea on how to go about debt consolidation loans. Always educate yourself and learn more about these programs before getting into one. The more you know the better informed you are thus making the best decision in dealing with your debt problems.
Bankruptcy will be your last option. In the US, and in particular President Bush signed a bankruptcy reform bill that will require credit counseling before you individuals can file for personal bankruptcy. Congress in 2005 passes the bankruptcy reform bill which makes it mandatory to get credit counseling before you can file for personal bankruptcy. In effect make credit card companies raise their monthly minimum payments and further squeezed the consumers.
Consolidate debt loans is good option for your debt problems. It will help you avoid filing for bankruptcy and credit counseling too. It will also eliminate the harassment you will be getting from your creditors and/or collection agencies. It will also lower your monthly payment by as much as fifty percent. Before making any decision on what to do with your financial woes, be responsible and educate yourself on what is your best option so you will not regret your decision. But the best thing is you will be paying one single monthly bill payment after you consolidate debt loans.
Whatever your decision is, always get as much information as you can so that when you ultimately make the inevitable decision, you are prepared and will make that right decision.
For guidance and information on your School Consolidation Loan and to Pay Off Debt [http://www.jgvfinance.com/Pay_Off_Debt.html] to ease the burden of debt payments, go to JGVFinance.com or at Lingwellness.com

Can Refinancing After Bankruptcy Be Done?

If you look at the bright side, however, filing for bankruptcy actually puts some order into the chaotic lives of many individuals who have been struggling with debts for several years. It's a drastic, albeit relieving way, to free you from the clutches of your debtors. In short, it's your opportunity for a fresh start.
Unlike what most people think, there is actually life after bankruptcy. True, it is reflected on your credit history and in some cases the record isn't even deleted, but there are aggressive lenders who are willing to take the risk.
Refinancing after bankruptcy becomes possible especially if, from day one of your filing, you resolve to start anew with a clean credit record. Your new aim hence should be to see to it that you'll do everything to improve your financial rating. One of the best ways to do this is to refinance your home loan.
Why do this, then, if you've just declared bankruptcy? Most people aim for home refinancing after bakruptcy in order to reduce the amount they need to pay every month, with the objective of lowering the interest rates. Refinancing your home also has several other advantages.
This refinancing is also viewed as a brand new mortgage, helping re-establish your credit history by giving you a fresh start. Remember, you now have a clean credit history after your filing. Because of this, it's imperative that all your payments from here on in are made on time. By doing this, you are actually rebuilding your credit history so you can live a better life tomorrow.
If you have just filed for bankruptcy, it's understandable that lenders won't be offering rates similar to people who have good credit records, but this is a risk you have to take. There are lenders who specialize in extending loans to people with less-than-perfect credit records, so they understand your needs and your situation.
These lenders are known as sub-prime lenders. Not only do they serve people with poor credit records - they also offer packages to those who have filed for bankruptcy, so you'll see that refinancing after bankruptcy is possible, and many people have rebuilt their credit histories on this opportunity.
Even if you're not to keen on Types Of Mortgage refinance after bankruptcy, time is of the essence and you have to make good use of it. If you won't go for credit, you won't be able to get the chance of coming up with a new, clean credit history if you intend to borrow money after several years. If you have the opportunity to rebuild, why not act on it at once?
It's important to keep in mind at this point that once your bankruptcy has been discharged, you won't be able to get another discharge again for several years. For instance, if you received a discharge from a Chapter 7 filing, you'd have to wait until after 8 years to get another Chapter 7 discharge.
What does this mean? This simply means that the first bankruptcy was a chance to start fresh, in terms of credit, but that chance won't be at your beck and call in the near future, so it's best to pay attention to your financial status this time around and peg the best record you can possibly build.



You can also find more info on Mortgage refinance Guide. Mortgagefinancebliss.com is a comprehensive resource which provide information about mortgage and Finance.

Cost of Filing Bankruptcy Review - What is the Hidden Cost of Filing Bankrupcy?

Filing bankruptcy is an option for consumers who have found that their debt has gone beyond their ability to repay, for whatever reason. There are multitudes of reasons that a person's finances may be in trouble, other than "just being irresponsible." Regardless of the reason for financial difficulties, bankruptcy is a permanent action, and the decision of whether or not to file should be made carefully. This cost of filing bankruptcy review will allow you to see the kinds of costs associated with filing bankruptcy.There are actual financial fees right up front. An attorney will usually charge at least half of her total fee up front. After all, she is an experienced professional who knows that you are having difficulty paying your bills. She deserves to have her fees paid up front. Eight hundred dollars up front would not be unusual. The attorney is one of the costs of filing bankruptcy.
Another cost is your ability to get decent loans in the future. Some people are able to secure loans again relatively quickly; other people can't get a loan to save their lives for years after a bankruptcy. In either event, nothing can have a more devastating effect on your credit rating than a bankruptcy.
The credit bureaus report Chapter 7 for ten years and Chapter 13 for seven years, but it never really goes away entirely. You may be forced to "report it" yourself because most credit applications ask you if you have filed bankruptcy, and you are required to answer credit application questions honestly. Twenty years from now, you could still be forced to admit your past bankruptcy and suffer the consequences of unfavorable loan terms and interest rates.
Before you make the decision to file for bankruptcy, think about the information in this cost of filing bankruptcy review, and make the decision based on what best serves your unique needs.



Dean Shainin offers free online debt advice. For more information, articles, news, tools and valuable resources on bankruptcy and debt solutions, visit now at: Get a Free report: Click Here
Cost of Filing Bankruptcy

Point Blank Solutions Enters into Asset Purchase Agreement with The Gores Group

Point Blank Solutions Enters into Asset Purchase Agreement with The Gores Group

Point Blank Solutions, Inc. (OTC-BB: PBSO), a leader in the field of protective body armor, today announced that it has entered into a "stalking horse" Asset Purchase Agreement ("APA") with an affiliate of The Gores Group, a well known and established private equity firm.  The Company has submitted the APA to the Bankruptcy Court and intends to conduct a Court-supervised auction of its business under Section 363 of the U.S. Bankruptcy Code.   Under the terms of the APA, The Gores Group would purchase substantially all of the Company's operating assets, subject to various conditions, the completion of the auction process and Bankruptcy Court approval.  Based on the current timeline, the Company expects the purchase and sale transaction to be consummated by November 2011.


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Getting Credit After Bankruptcy

Those who have declared bankruptcy need to place an emphasis on improving their credit as soon as possible. This is because without getting credit after bankruptcy, your chances of getting a loan are slim.Everyone faces hard unavoidable circumstances. Bankruptcies can occur for a variety of reasons - some controllable and some uncontrollable. The main thing is that if you are in the unenviable position of having declared bankruptcy, you need to move forward, especially regarding your credit rating.
Your credit rating is so important because it is the basis which your potential lenders will judge you. If your credit is bad, you can kiss any opportunity of ever getting a loan from them goodbye.
There is an unwritten rule that lenders will reject the majority of loan applications for people who have had a bankruptcy discharge less than two years. This is because lenders want to see some sort of established credit building before considering giving out some sort of unsecured mortgage after bankruptcy or even just a secured personal loan.
So, you should spend two solid years rebuilding your credit as much as possible before you start sending loan applications out to banks. If you pay all your bills on time and never have a single missed or late payment, you will stand a solid chance of landing a mortgage after bankruptcy in two years.
Now, if possible, you should also try and save up as much as a down payment as you can. Banks look very favorably on down payments. You will certainly solidify your chances of getting credit after bankruptcy if you can put down 3 to 5 percent of the house value at the time of applying for a loan.
Getting credit after bankruptcy is hard but not impossible. You need to work on improving your credit rating to the point where you will qualify for personal loans after bankruptcy.

U.S. Bankruptcy Court Enters Temporary Restraining Order

U.S. Bankruptcy Court Enters Temporary Restraining Order

Enjoining Actions to Interfere with Special Committee's and Chief Restructuring Officer's Restructuring Efforts; SEC Investigation

ShengdaTech, Inc. ("ShengdaTech" or the "Company") (NASDAQ: SDTH), a leading manufacturer of nano-precipitated calcium carbonate ("NPCC") in China, announced today that the U.S. Bankruptcy Court for the District of Nevada granted the Company's motion for a temporary restraining order ("TRO") enjoining the Company's shareholders and the members of the Company's Board of Directors, from taking any action, including the commencement of any court or administrative proceeding that seeks to change or has the purpose or effect of changing the composition of the Company's Special Committee or the appointment of the Chief Restructuring Officer ("CRO"), Mr. Michael Kang, from taking any action including the commencement of any court or administrative proceeding that seeks to hinder, obstruct, impede or otherwise interfere with the Special Committee's and the CRO's previously announced investigation(s) and prosecution of the Company's Chapter 11 case, and from taking any action that seeks to appoint or has the purpose or effect of appointing Mr. Gongbo Wang, or anyone else, to the Company's Board of Directors. The TRO is in addition to the automatic stay imposed by Section 362(a) of the U.S. Bankruptcy Code.


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Debt Settlement Vs Bankrutpcy - Which is Better For Fast Debt Relief?

Debt Settlement or Bankruptcy; That Is The Question!Debt settlement is the fastest way to experience debt relief and be debt free for the least amount of money while avoiding bankruptcy, and may be best for you if you cannot or do not want to file bankruptcy.
One type of personal bankruptcy is the fastest and cheapest way to find relief and get out of credit card debt that exists, period, while another type of personal bankruptcy may offer debt relief but takes many years, costs even more than debt settlement and seriously damages your credit for well over a decade.
So which is which??...And which is best for you?
Let's start by clarifying what bankruptcy is, the differences between the two different types of personal bankruptcy filings and what you must whatch out for when considering bankruptcy (especially when speaking with bakruptcy attorney's.
Chapter 7 Bankruptcy is a "liquidation".
This is where you pay an attorney or law firm anywhere from $800 to over $3,000 to file, complete the substantial paperowrk and documentation required and then within a matter of months your debts are completely wiped out.
Chapter 7 Bankruptcy is the fastest way to get out of debt for the least total direct cost.
However, chapter 7 bankruptcy is reported on your credit report (listed with every account included in the bankruptcy) for TEN YEARS.
Chapter 13 Bankruptcy is a "repayment plan".
This is a court-ordered repayment plan, usually lasting 60 months. Any missed payments cause you to lose the protection of the courts and your creditors can then go after you.
Chapter 13 stays on your credit report (listed with every account included in the bankruptcy) for SEVEN YEARS AFTER the date of discharge, which is usually FIVE YEARS after filing, severely damaging your credit for A TOTAL OF TWELVE YEARS. Chapter 13 is also public record for twenty years and carries most of the additional costs mentioned for Chapter 7 above.
Often, my clients tell me their estimates for repayment plans through Chapter 13 would require them to repay a higher percentage of debt over a longer period of time with a monthly higher payment than they could do otherwise through debt settlement.
An "Inside-Joke" of Bankruptcy Attorneys that ISN'T So Funny...
Some Bankruptcy Attorney friends of mine shared a story with me about how a Chapter 13 Bankruptcy is like a "turkey dinner"...
You see, everyone is sitting at the dinner table; the judge, the attorney's, your creditors... Each with a bib on, double-fisted with fork and knife in hand, drooling and licking their chops...
And guess who's the turkey?
In a Chapter 13, YOU are the turkey!
Serious Consequences for ANY Type of Bankruptcy FIling...
Any personaly bankruptcy filing is public record for 20 years. This may have detrimental affects on obtaining financing as well as employment opportunities.
You are usually required to include all unsecured debts in the bankruptcy.
Bankruptcy may have additional costs including limiting your credit worthiness (currently there are no mortgage loans available until 2 years after discharge), increased interest rates and fees, higher deposits required, disqualifying you for certain types of employment and more.
Typically, creditors will see an entry like this below each account on your credit report:

THIS ACCOUNT INCLUDED IN CHAPTER 7/13 BANKRUPTCY

There are many reasons to avoid bankruptcy at all costs. Significant social, emotional and psychological risk is also involved in filing bankruptcy. Each of us must decide for ourselves where we stand on these levels.
What To Do If You Don't Qualify For Chapter 7 Bankruptcy?
The short answer is, "Run away from the bankruptcy attorneys BEFORE they talk you into becoming a turkey dinner!"
The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) passed in October 2005 made sweeping changes to American bankruptcy laws. Many of the bill's provisions were explicitly designed to make it "more difficult for people to file for bankruptcy", especially Chapter 7.
These new laws have proven to be very "creditor friendly," disqualifying many Americans from filing chapter 7 and leaving them with chapter 13 (being a turkey) as their only option for filing bankruptcy. If you find yourself in this situation, then typically debt settlement is a better option to get out of debt faster, with less credit damage, for a lower cost.
When Is Debt Settlement A Better Choice?
Debt settlement is the fastest way to be debt free for the least amount of money while avoiding bankruptcy. Debt settlement is a moral, legal and ethical option for people with serious debt in financial hardship. It's honorable. It is agreed to by your creditors to "forgive" your debt.
If you do not qualify for chapter 7 or simply to do not want to file bankruptcy for moral, pride or ethical reasons, then debt settlement may be the best choice you can make.
Be very careful when selecting a debt settlement plan or program
What If I Can't Afford Debt Settlement?
If you cannot afford the minimum payments for a debt settlement program, then you should be able to qualify for a chapter 7 bankruptcy. You should seriously reconsider any moral objections against bakruptcy and realize these laws are in place for a reason.
If you qualify, then it may be much better for you and your future to "bite the bullet" now and get out of debt instead of remaining in the financial stress and strain of carrying high amounts of high interest credit card debt working against you night and day.
Do You Need Expert Guidance to Choose between Bankrupcty or Debt Settlement to get Out of Debt, or Help Finding a Trusted & Proven Bankruptcy or Debt Settlement Firm for Debt Relief?

If you want to learn more about debt settlement or bankruptcy, then you'll discover how to avoid the most common mistakes people are making and debt relief "secrets" most people will never know INSIDE the Debt Relief Guide Online. Click either link for FREE Instant Access.
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Debt Relief and Bankruptcy Claims on the Rise

When the bankruptcy laws changed in late 2005 with the Bankruptcy Abuse Prevention and Consumer Protection Act it was obvious that we would see a drop in the amount of bankruptcies. With over 1,700,000 non-business bankruptcies in 2005 it had dropped to just 777,000 in 2007. Business bankruptcy are also down only slightly because the new laws only affected personal bankruptcy.
So far in 2008 bankruptcies are up only 20% over but expect this number to be higher once the final numbers are in. The main reason for the increase in bankruptcy is the economy. Unemployment is up nationwide and with the recent surge in price of oil the cost of all consumer goods is on the rise. As the economy continues to suffer we will see more bankruptcies and more people using debt relief services.
What is Bankruptcy?
Bankruptcy is when a person can no longer afford to pay their bills and decides they would like to start over. For obvious reasons they will actually be starting in the negative when it comes to credit due to the fact that they showed terrible credit management in the past. Bankruptcy claims stays on your credit report and credit score for a very long time so it shouldn't be taken lightly. It is best to try everything you can to not claim bankruptcy but sometimes it's the only option. It is governed by the federal law and except for a few exemptions the same rules apply in every state.
Types of Personal Bankruptcy
Chapter 7 is far the most popular form of bankruptcy. This where someone is freed from outstanding debts and any non-exempt assets are sold in orders to pay creditors.
Chapter 13 is a repayment plan for people with regular income and less then $336,900 in unsecured debt and secured debt less than $1,010,650. The Person will keep property and makes regular payments to the Chapter 13 trustee who will then pay the creditors.
Some people are forced to claim bankruptcy because they can no longer afford their minimum payment or have already fallen behind and are being harassed by collectors and creditors. Usually this is due to job loss or health a related problem but it can be caused by poor budgeting habits. Many people don't realize how much we depend on credit and how many of us abuse it. 20 Years ago people looked at credit cards as a payment method today people use them as funding methods. Credit card debt for the average American family is at an all time high even if you take inflation into account.
Other Debt Relief Options?
Homeowners who have good credit should be able to get a debt consolidation loan but even that is a maybe given the current credit crisis. When you take out a debt consolidation loan you usually end up using your home as collateral, which is fine as long as you keep up regular payments. The downfall to this is if you stop paying your debt consolidation loan payments the creditors could take your home.
Non-homeowners who are already behind on their payments may want to look at a debt settlement or negotiation service. This is where you and or a debt settlement company will negotiate with your creditors to have your total debt owed lowered. It can be a tricky process as banks want all of their money back nut it is possible. The only reason they will settle with you is because they suspect you might file for bankruptcy and they will end up with nothing.
People who are not in serious debt but still are having concerns may want to look at a credit counseling service. The services can teach you better budgeting skills and it may look good with your creditors that you are trying to get your finances back on track.
No matter what your situation is you can always use some help and advice. Many companies are now offering these services; just look in the yellow pages and you will find a few in your local area. You can also find lots of national debt relief companies online.
For more help and information or to find a debt consolidation, debt settlement, or credit counseling service please visit Debt Consolidation Help

Bankruptcy Mortgage: Can Filing Bankruptcy Stop Mortgage Foreclosure?

Bankruptcy Mortgage, learn if filing bankruptcy could prevent your mortgage lender from foreclosing your home. Find out your options if you are facing foreclosure.
View the original article here

Going Bankrupt - Breakthrough Tips

Are you sure that bankruptcy is the only way to repair your credit and get rid of your debts? If you think you have no other alternatives, you may be wondering, how to file bankruptcy.
You'll need to be aware of the process that comes along with filing, so here are some ways that you can prepare yourself.
First, and most importantly, you will need to take a good look at your finances, maybe with an accountant, to be sure that bankruptcy is the only option you have. A bankruptcy can stay on your credit for about 8 years, and during this time, you may not be able to purchase a home, buy a new automobile, or receive a line of credit from a loan or credit card company.
So, if there are different ways for you to fix your finances without having to take this step, talk it over with your accountant.
Also, under the Bankruptcy Abuse Prevention and Consume Protection Act, you must receive consumer credit counseling from company that the U.S. Trustee has approved within 180 days of the filing of your case.
Then, you'll need to determine exactly how you want to file. Chapter 7 bankruptcy is becoming less common, since Chapter 13 helps individuals in the long run, and involves financial organization.
Under Chapter 7 bankruptcy, an individual must sell valuable items and use the funds to repay debts. This could be a fairly unstable way to pay off debts, since there are no guarantees that the items will sell in a timely manner.
When looking at bankruptcy, it pays to consult professionals as a further way to move forward.
Chapter 13 involves wage garnishment, which means that a certain amount will be taken from your paycheck each pay day so you can settle your debts.
If you still wondering how to file for bankruptcy you may want to take some bankruptcy classes so that you will have a better understanding of the process.
Completing the 'assignments' given in class may help you to reach your financial goals faster, and will teach you about things like getting the best insurance policy for yourself, your home, and your automobile, creating the most realistic budget for paying off your debts, and using your credit wisely.
What about the costs involved? Filing a claim could cost up to $1,700, but you may be able to pay in installments depending on the state that you file your claim in. If you are filing Chapter 7, you will have to pay your fees upfront, but your payments can be included in your overall payment plan for Chapter 13.
For more free and reliable information on going bankrupt, we suggest you visit RealCase today. Their helpful, friendly and dependable advice will help you begin finally getting your finances in order.

Reasons For Filing Bankruptcy

When you find yourself buried under bills and debt that you can't find a way out from under, you will want to consider filing bankruptcy. There are a lot of advantages to bankruptcy if you have tried all other avenues and were unable to work out a workable payment plan to get you caught up. The truth of the matter is that sometimes we can find ourselves in a position that is bigger than ourselves. When you can't find a way out of your debt and it begins to ruin your life, the time has come for you to take drastic measures to change your situation. There are several reasons for filing bankruptcy.
One reason is that it can protect you. When you have a lot of outstanding debts you run the risk of losing the things that you own. By filing bankruptcy you will be protecting yourself and your family from losing your assets. When you are in the middle of a financial crisis the last thing you need is to worry about losing your home and your belongings. By filing for bankruptcy you will be beginning the process of protecting yourself from even more hardships.
Another reason for filing bankruptcy is to give you a new start. You will be able to begin rebuilding your credit and putting that bad time in your life behind you. You will feel much better about your situation once you have had those debts that you can't afford to pay discharged. Once those past debts have been discharged you will find it easier to begin obtaining things that will help you to work on raising your credit score. Many of the companies that will not help you finance things because of your credit are more willing to overlook a bankruptcy.
One more great part of filing bankruptcy is to stop the harassment that you have been enduring from bill collectors. Many people don't understand how harsh bill collectors can be and how much stress they can put on a person until they themselves find themselves being harassed by them. Bill collectors will call you constantly and be rude and demanding when they get you on the phone. They will also send you threatening letters that can cause you even more stress then you are already undergoing.
If you are buried under your debts and you feel as if there is no light at the end of the tunnel, then you should consider filing bankruptcy.
Learn How to Reduce Credit Card Bills at ReduceCreditCardBills.com

Keep Your Assets and Lessen the Damage to Your Credit Score With Chapter 13 Bankruptcy

Filing bankruptcy is never good. It causes major damage to your credit score and financial standing and in many cases it takes away all of your assets. It is not something that anyone wants to go through.Unfortunately bankruptcy is quite common and especially prevalent during a difficult economic period where people are losing their jobs.
It is a common misconception that all forms of bankruptcy are equal. Chapter 7 and chapter 13 bankruptcy are in fact very different and both have different effects on your financial future.
Filing for chapter 7 bankruptcy typically means you are in financial distress and there is no way that you are going to be able to pull yourself out of it. Your assets will be liquidated and the money will be used to pay off your debts and make deals with your creditors as they are not likely to be paid off in full. Chapter 7 bankruptcy will give you a completely fresh start but it will take approximately 7 years before it is removed from you credit record.
Businesses often file chapter 13 when they are in financial distress but are still generating income. Whether you are an individual or a business when you file for chapter 13 bankruptcy you are confident that with a little help you can pull yourself out of debt. The main requirement for filing is that you still have a steady income coming in. This money will be necessary for paying off your debts. You design a payment plan, get it approved by the courts and stick to it for 3 to 5 years. During this time your payments are interest free and you won't have to suffer through creditor phone calls and threats.
Chapter 13 bankruptcy stays on your credit score for about 2 years less than chapter 7. This can make a big difference for getting back on your feet.
If something were to happen to prevent you from completing the payments agreed to under your chapter 13 filing than it is possible to convert your filing to chapter 7. There is also a possibility that you could get your payment plan adjusted if necessary.
No one should try and decide between chapter 7 and chapter 13 alone. Especially if you are not educated in bankruptcy law. That is why you need to find a reputable bankruptcy attorney to represent you and guide you through the bankruptcy process. Their expertise will be worth every penny.



To learn more about the chapter 7 and chapter 13 bankruptcy, foreclosure and real estate legal services offered by Chang & Carlin visit http://www.changandcarlin.com. Contact us today to set up a free consultation http://www.changandcarlin.com/free-legal-evaluation

Tips on How to Get Mortgage After Bankruptcy

Mortgage has been an integral part in home buying. Most people rely on this type of loan because it makes home purchasing affordable. Unfortunately, certain types of events can lead to deprivation of loan. And this could happen in the event of Bankruptcy.Bankruptcy happens when a person is unable to pay his or her outstanding debt. Because of this, credit scores are expected to drop steeply.
Prior to filing, series of events have already occurred such as missed payments, maxed out credit cards, insufficient income and even series of delinquent payments that resulted to derogatory public record and collection. These things may happen concurrently with bankruptcy and they are the reason why credit scores will go bad.
If credit scores were in bad shape, lenders would normally decline any application from a person with record of bankruptcy. This can happen on the first few years. And the thing is, this will be reflected on the credit report for 7 to 10 years.
However, getting a mortgage after bankruptcy should not be impossible to do. It will take time and sometimes you might need the help of the lender or the broker. These people can lead you to the right path of getting mortgage. However, approval will not be possible without doing the following things:
1. Take care of your existing debts. If they were not discharged, make sure you pay them before it is due. Moreover, this practice should be applied on your new debts.

2. If all debts were discharged, create a new line of credit by applying for secured debts. This allows you to control your spending by making prepaid payments. This is actually a good way to make a brand new start.

3. Car loans are also great mediums to re-build credit. You can get this as early as after your existing debts were discharged.

4. Ask your lenders whether they do report payment performances to credit bureaus. You might want to ensure that they do this for you to have a proof that you have turned into a new leaf.

5. Remember, before mortgage is approved, debt to income ratio takes into play. As much as possible, lower your outstanding debts or find better ways to raise your income.
More than often than not, mortgage application will be granted within 3 years after debts have been discharged. The goal within this period is to repair credit and establish that you have been a good paying customer since then.
When everything has been re-established, credit records are outstanding, and your life is already back on track, this would be the perfect time to get the mortgage. However, expect the rates would be high as you are still considered a high-risk borrower. To get better deals, you would have to pay a higher down payment. You also have to double check your credit reports before hand, to uncover inaccuracies and have them corrected ASAP. Lastly, never forget to shop around. Even though you are expecting high interest rates, it would still be helpful to know what your options are.
Finding affordable homes is never too difficult to do. With Aviano Phoenix AZ Homes and Maryvale Phoenix AZ Homes, you can learn more about this topic with ease.

Washington Mutual, Inc. Issues Statement Regarding Bankruptcy Court Order

Washington Mutual, Inc. Issues Statement Regarding Bankruptcy Court Order

Washington Mutual, Inc. (Pink Sheets: WAMUQ) ("WMI" or the "Company") today issued the following statement regarding the Opinion issued by the United States Bankruptcy Court for the District of Delaware (the "Court"):
WMI is pleased that the Bankruptcy Court reaffirmed its conclusion that the Global Settlement Agreement is fair and reasonable and determined that substantially all aspects of the Plan of Reorganization comply with the requirements of the Bankruptcy Code.

View the original article here

Chapter 7 Vs Chapter 13 Bankruptcy: Learn The Difference

Chapter 7 Vs Chapter 13 Bankruptcy, find out whether liquidating your assets to pay off debts or negotiate your debts for reasonable repayments to creditors is your best option
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Filing For Bankruptcy: An Overview Of What Is Chapter 7 Bankruptcy?

Filing For Bankruptcy, a video overview how Chapter 7 Bankruptcy work. Learn what exempt and non-exempt assets can and cannot be sold to pay off your creditors
View the original article here

VASCO Announces Bankruptcy Filing by DigiNotar B.V.

VASCO Announces Bankruptcy Filing by DigiNotar B.V.

VASCO Data Security International, Inc. (Nasdaq: VDSI) (www.vasco.com) today announced that a subsidiary, DigiNotar B.V., a company organized and existing in The Netherlands ("DigiNotar") filed a voluntary bankruptcy petition under Article 4 of the Dutch Bankruptcy Act in the Haarlem District Court, The Netherlands (the "Court") on Monday, September 19, 2011 and was declared bankrupt by the Court today.
The Court appointed a bankruptcy trustee (the "Trustee") and a bankruptcy judge (the "Judge") to manage all affairs of DigiNotar as it proceeds through the bankruptcy process.  The Trustee will work under the supervision of the Judge and be responsible for the administration and liquidation of DigiNotar.  The Trustee is required to report to the Judge and his reports are expected to be made available to the public and will serve as a source of information to the creditors and other stakeholders.  Effective as of the beginning of business today, the Trustee has taken over the management of DigiNotar's business activities.


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Stigma Behind Bankruptcy - Unjustified Stigma

"Bankruptcy has always had a stigma and it always will," says Vito E. Lella, president of Accord Associates Denver Ltd. But should it? Today, stigma aligned with bankruptcy, resonates in words like,"deadbeat," or, according to Debtor Mike E.'s neighbors,"credit criminals."But when bankruptcy comes under examination, it seems the stigma surrounding it is just another set of false fears void of any merit.In society, stigma crop up when a group of people consider themselves dominate over another group due to perceived subtle yet unfavorable differences occurring in the second group. Social labeling then transpires, resulting in a definitive separation of those who are labeled from those who are the labelers. In this case, the dominate group happens to be anyone in society who believes bankruptcy is strictly negative and suitable for those who are careless with their money. But that is simply not true because, "today the average two income family that makes house, car, insurance and child care payments has less disposable income then a one income household making those same payments." (Warren & Tyagi, 52). Also, little does the dominate group know that the majority of the middle class lives paycheck to paycheck to achieve a middle class standing where their kids can get a good education, somewhere safe. Nor, do they know that, "medical bills, mortgage payments and job losses are the main reasons for over eighty five percent of filings,"(Warren & Tyagi, 81). What deserves the criticism is that phenomenon which causes bankruptcy, not the debtors.
Yet debtors are still blamed. Why is this? In an attempt to answer that question we must first look into the past, to centuries ago, when gold was passed in coin currency and banks were born. Then, like to today, banks offered to be are our friend in need, willing to give out loans at the toughest of times. However, when the borrower or debtor was unable to pay the loan back, the banks took it upon themselves to recapture their money. And, of course, this is their right although one of their most successful techniques in doing this is to cause fear in the debtor's mind. Similar to a mafia's strategy, save the violence, the banks like to condemn to debtor who has trouble paying back there loans by scaring the debtor's credit history, hiring collection agencies to harass the individual and notifying the debtors employer of the situation. While at the same time, they've also perfected another technique: indoctrination of the public. In other words, they us the dominate group to spread the idea of the "credit criminal," until it becomes a malignant discrimination and the debtor feels stuck between not being able to pay his bills yet unable to do anything about it because the "credit criminal" is afraid of being a criminal, afraid of being discriminated against.
And ultimately, that's how credit card companies make there money today. The longer the principal debt is unpaid the more interest on the debt grows and the more payments the stuck debtor will have to make. In fact, most debtors, 93% or more, believe in the stigma attached to bankruptcy as much as the dominate parties do. They spend (on average) more than a year trying to avoid bankruptcy. They are responsible and attempt repayment of a crushing debt but: at most, only 3.6% of Chapter 7 debtors could repay only 20% of their unsecured debts over 5 years. So a year drifts by. They have been paying interest payment after interest payment, not even coming close to their principal debt and, according to Attorney Raymond Ferrario, it's, "the interest from the credit card debt that ultimately pushes people over the edge." They reach a break down, either financial or emotional and then end up walking into an attorney's office to file for bankruptcy, ashamed to be there.
Yet they should not be ashamed. They should be educated as to why bankruptcy occurs and what they can do to prevent it in the future. So why not create programs that teach both young and older adults how to budget their money, or restrict credit card usage in the beginning of someone's credit history instead at it demise? A good idea yet when dominate members are in power and are the ones responsible for making such a decision, it becomes difficult because on one side there are people like Senator Orrin Hatch of Utah claiming, "These people abuse the system in order to get around their debts which they are very capable of paying," (Warren & Tyagi, 71). While on the other side you have no one dissenting. Why? It's possible that politicians don't take a stand against credit card companies and institutional banks is because of the benefits they receive by not doing so. For example, the credit card industry gave 61.6 million dollars (an average amount of $100,000 to each member of the senate since 1987).
So as a slim fraction of the dominate party benefits (the politicians and the bank managers) the rest are left ridiculing the debtors, blaming them for eating up tax dollars or living "off the system." Which is unfortunate because according to Attorney Mike George, "Bankruptcy isn't a bad thing. It actually helps the economy by injecting all of the debtor's disposable income back into society." That's the sobering aspect of it. All of the discrediting talk, which reduces the debtor from a whole and ordinary person to a tainted, discounted one, not only hurts him but also those who perpetuate the stigma and the general public. Ironic that most who deem bankruptcy so horrible actually benefit from its existence. Only if they knew but they don't because: the public is generally not aware about the specific concepts, the technical aspects of the legal system of bankruptcy.
In essence, this stigma is simply unwarranted. America must evolve and realize that the external circumstances are the real culprits behind bankruptcy. Then again, if the masses are educated, credit card companies and others like them wouldn't be able to profit as much. Wouldn't that be a shame?



Works Cited
1. Link, Bruce G., PhD, "The Stigma Process: Reconceiving the definition of Stigma" 5062.0 Abstract #8926, 15 Nov. 2000. 7 May 04
2. Marinna B. Culhane & Michella M. White. "Taking the New consumer Bankruptcy Model for a Test Drive: Means Testing Real Chapter 7 Debtors 7" American. Banker. Institute. L. Rev. 27, 31 (1999).
3. Schlesinger, D. Going For Broke: Consumer Credit Industry Bankrolls Candidates and Parties With $61.1 Million Since 1987; Senate Poised to Act on Bankruptcy Legislation. supra note 5, at A1 Common Cause, Feb. 13, 1999. 6 May 2004
4. See 1.
5. Brussels. Belgium. Corporate Finance Committee. Stigma: Bankruptcy and a fresh start: stigma on failure and legal consequences of bankruptcy by Philippe & Partners and Deloitte & Touche. 9, Feb 2002. 05 May 2004
Bibliography
Warren, Elizabeth & Ameha Warren Tyagi. Two Income Trap. New York: Basic Books, 2003.

Chapter 7 Bankruptcy: Find Out The Pros And Cons

Chapter 7 Bankruptcy, a video overview of the Pros and Cons of Chapter 7. Learn the advantages and disadvantages before filing for bankruptcy
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Solving Ghana's Liquidity Problems With Securitisation Transaction Through Oil - A Case Study

Securitisation transaction could be defined as the act of converting an asset into marketable securities typically for the purpose of raising cash.The concept is based on international market practices involving financial transactions in which an enterprise brings together assets, mostly receivables, and later transferred to a special purpose entity or vehicle, which finances the acquisition by issuing securities.
Securitisation is typically an improvement to the financing of existing business operation.
Securitisation transactions are very popular with mortgage-backed securities; there are currently more non-financial types of assets and future cash flows. The following are examples of assets that can generally be securitised.
Aircraft leases, auto loans(prime and sub-prime),auto leases, boat loans, credit card receivables, equipment leasaes,home equity loans, manufactured housing contracts, marine shipping containers and chassis leases,morgages(residential and commercial).The rest are railcar leases, real estate, recreational vehicle loans, royalty streams, stranded utility costs, trade receivables, train wagons leases, truck loans, oil exploratory, and other future receivables.
Ghana School Financing Facility is Ghana's first official "securitisation transaction". It is a structured risk-sharing facility which covers a local partner bank's initial portfolio of long-term local currency loans to schools. The objective was to help local banks to learn how to make money and contribute to development in the country as well.
The International Finance Corporation (IFC) provides advisory services to the banks to process and monitor the school loans whilst at the same time assisting the local schools with management training and strategic planning to enable the schools operate more like sustainable businesses. This helped to improve their credit risk profile with the banks.
The IFC set up a $2.1million risk-sharing facility with Ghana's Trust Bank Ltd supplemented by advisory services by IFC and African Development Bank to the Trust Bank and its client schools.
It is expected that The Trust Bank will increase its size and financing to private schools, implement cost-effective, alternative funding mechanism for schools. It will also afford the bank the opportunity to prepare itself for securitisation transaction when the market is ready.
The following gives an insight into an industry for a potential Securitisation transaction in Ghana.
Ghana has a modest upstream oil industry with one onshore and five offshore sedimentary basins. The main drive behind the oil and gas industry in Ghana is the need to reduce the country's dependence and reliance on hydroelectricity.
The authorities are usually targeting a "primary" budgetary surplus to reduce the overall budgetary deficit and the domestic debt. Oil subsidies have been cut back, but public sector wages have been increased. Nevertheless, the recent computerization of customs should increase tax and public sector revenues, and contain the overall budgetary deficit.
A number of initiatives to boost cassava, textiles and palm oil should increase non-traditional exports while strong prices for cocoa and gold should lead to higher export earnings. High oil prices continue to hurt Ghana. It is estimated that oil imports will make up over 20% of the total import bill, leaving the economy vulnerable to large price swings. Large transfers, IFI credits, donor support and generous debt relief from the Paris Club have brought the external current account deficits at more manageable levels.
Schemes, and reforms, such as increasing low electricity tariffs towards international levels. Since the mid-1980s the Government of Ghana has been financing projects using small levies on petroleum products. The US$ 250,000 raised annually is paid into an Energy Fund and used to promote renewable energy and energy efficient projects.
In Ghana petroleum operations are governed by the Petroleum Law of 1984 which empowers GNPC to operate in all open acreage of the country on its own or in association with foreign partners.
Smaller companies are finding it easier to explore in Ghana than in some of its neighbours in West Africa. This is due in part to advantageous terms of the contract which include the following elements: No front end payments such as signature or production bonuses; negotiable royalties and income tax (currently at 35%); no limit on cost recovery, low rental payments, no restrictions on the repatriation of funds and no import duties on exploration and production equipment and materials...
With securitisation, the GNPC can securitise its rights to receive payments for crude oil sold to other oil refineries. The agreements representing those receivables must be drafted such that anti-assignment clauses in favour of the refineries for example will be beneficial but must not be enforced since in doing so the securitisation cannot go on.Ghana and for that matter Ghanaians must benefit from this black gold.
Reference:
1.Africa -Ghana organising in the informal sector(on line) (accessed 29th April 2006)

2.Ghana Chamber of Commerce Newsletter

3.Ghana Self-assessment (online)available on ghanaembassy.dk/tax/asp.cata.org.my/Ghana1 accessed on 21/06/07

4.Private Sector Development Strategy for Ghana (online) available on dfid.gov.uk/pubs/files/ghana/priv-sect-dev-strategy/ accessed on 21/06/07

5.Securities Exchange Commission annual Report (online)available on secghana.org/publications/annualreport/ accessed on 21/06/07

Personal Bankruptcy Reasons And Rules

Personal Bankruptcy

Lately a lot of people have to file for bankruptcy because they couldn't pay their debts. It is the toughest decision they had to make. Majority of people perceive inability to manage their debt as a personal failure. Simply speaking filing for bankruptcy is a popular option, and lack of personal bankruptcy information has generated considerable confusion and misinformation, making it difficult for people to get a clear picture about the process, their rights and the consequences. People who contemplate personal bankruptcy must to know, some valuable information.

First

First of all if you happen to owe money to a friend or a relative whom you would prefer to pay back rather than having your debt waived as a part of the bankruptcy process, you can develop a mutually agreeable payment plan. But one thing you need to understand that regardless of identity of the creditor, once you have filed for bankruptcy and received a discharge, you are no longer liable to make repayment.

Second

Secondly, the services provided by a good bankruptcy attorney can be the best way for you to tackle the rigors of filing for bankruptcy. Good legal counsel and guidance can make this stressful period of your life easier and a bankruptcy lawyer is probably the best person to explain to you of your rights, liabilities and give you the right personal bankruptcy data that you need. An attorney can dispel such common myths as loss of the debtor's property to the trustee.

   

Third

And lastly, filing for bankruptcy once in no way disqualifies you from filing again - there is a minimum time limit imposed by the law for successive bankruptcy petitions. However, you need to remember that every time you file for bankruptcy, your credit score will take a beating as major credit bureaus are notified of the fact. This is another piece of personal bankruptcy information that most people are unaware of. Filing for bankruptcy is a traumatic process, but with the right personal bankruptcy information, you can weather the storms associated with the process

Personal Bankruptcy Reasons

Filing for personal bankruptcy is a serious decision that should not be taken lightly. But, bankruptcy can be beneficial and allow you to get a fresh financial start. Here are a few reasons why you may want to file either a chapter 7 personal bankruptcy or a chapter 13 personal bankruptcy.

• You Have Outstanding Medical Bills- A single trip to an emergency room can cost you $20K or more. So, if you suffer a broken leg you and are required to have emergency surgery you can, in an instant, became literally destitute. Therefore, by filing bankruptcy you will likely be able to discharge outstanding medical bills.
• Your Wages Are Being Garnished - When you are sued and a judgment is placed against you the creditor can garnish your wages. This means that money will automatically be taken out of your paycheck. Thus, when you file for bankruptcy you will automatically stop the creditor from garnishing your wages.
• Your Property is being foreclosed - Certain states allow a homeowner to be sued under a deficiency judgment when their house is foreclosed upon. A deficiency occurs when a bank loses money upon selling a house that is foreclosed. Basically, if your owe $100K on your house and the bank can only sell your house for $30K you can be sued for the $70K difference. So, by filing for a bankruptcy you can stop the bank from suing you for the $70K deficiency.
• You Lose a Law Suit- If you lose a lawsuit the other party will then be able to collect on what you owe them via the judgment. By filing for bankruptcy you may be able to stop the other side from collecting their judgment.

These are just a few reasons why filing for a bankruptcy can be useful. However, before filing for a personal bankruptcy you need to consult an experienced bankruptcy attorney. An experienced attorney will tell you the differences between chapter 13 and a Chapter 7 bankruptcy and will be able to advise you if bankruptcy is even necessary. The majority of all bankruptcy attorneys will give you a free consultation. So, if possible you should get a second opinion. So, do not be cheap. See an experienced bankruptcy attorney before you make any decision upon whether or not to file for bankruptcy.

Personal Bankruptcy Rules

People come to this point through different circumstances, and it's important to know the rules of personal bankruptcy before you proceed. If you have never filed before, you may wish to call on the counsel of a reputable bankruptcy lawyer who will help you through the process and explain the language of bankruptcy. You may already be familiar with a few terms, but here are some things to note as you prepare to meet with a firm or bank:

• Know what types of bankruptcy are available to you. You may qualify for Chapter 7, which forgives your debts but would require you to give up some of your more valuable assets like your home, car, or other items to take care of some payments. There is also Chapter 13, which allows you to keep your home but you are placed on a strict payment scheduled until your debts are paid. In both cases, the mark will show on your credit report for 7-10 years.
• Which one is best for you? A bankruptcy attorney will advise you with regards to the program you need, but it's good to read up on both so you know what to expect. In the case of Chapter 7, your financial slate is essentially cleared, and you may be recommended to go this route if you have no large assets to speak of, like a house or boat or truck. Rules for Chapter 7 may vary according to your state of residence, too.
• Credit counseling is mandatory. As part of your filing process, you will be required to go through financial counseling to determine the best course of action. Certification of counseling is included when you file, if you file. During the course of counsel, a financial expert may find another option for you that allow you to keep your personal assets while relieving your debts.
• Not all debts can be forgiven. Bankruptcy isn't a free pass - action is required on your part, and not all of your debts qualify. Student loans, alimony, and dependent support are just some of the types of payments that may not fall under this umbrella.
• It is possible to rebuild good credit. Bankruptcy need not be viewed as the end, but rather the opportunity for a fresh start. While it's true your credit scores will be affected for some time, you can rebuild a good standing financially. Speak with a financial expert on the best steps to take, which could vary from obtaining new credits cards or exhibiting on-time payment of purchases for an extended period.

Personal bankruptcy may seem like a low point in your life, but if you know what to do you can recover in good time and work toward a prosperous future.