Personal Bankruptcy - Minimum Amount of Debt Needed to File For Bankruptcy

If you're in debt and over your head then maybe you've thought about filing for bankruptcy as an option. Lots of people come to my office with the same question - "how much debt is enough to file?" The answer is stunningly simple.

If you can't pay your bills and won't be able to do so without a radical change in your financial situation, then you need to do something. Fast. Bankruptcy may be an option, but it's certainly not the only one.

There's no minimum amount that you need to owe in order to file for Chapter 7 or Chapter 13, but there is a rule of reason that applies. If you don't owe significantly more than the legal fees to file a case then it doesn't make sense to file at all.

For example, let's say you've got $3,500 in credit card debt and nothing else. You're unemployed and can't make the payments. Sounds like a slam dunk for a Chapter 7 bankruptcy, right?

Maybe not. Consider this: a lawyer may charge you a decent portion of that amount. Let's say you find an experienced, reliable attorney who's going to do the work for $2,000. Why hire him or her when you could easily use that money to knock out over 50% of the total debt load?

In this illustration, it's a bad idea to file for bankruptcy. You could take the $2,000 and put it towards your debt load, bringing it down to a total of $1,500 - something that might be more easily managed.

Of course, this assumes you're going to hire a lawyer for your case. Though it may be tempting to think that you should go the "do it yourself" route when dealing with a small amount of debt, consider the fact that bankruptcy is a highly specialized field of law. Most lawyers work for years on learning the basics, and the law is a complex and ever-changing beast. Even with a small amount of debt, your case could be more complex than you realize.

And if you mess it up... well, that just spells a lot more in the way of trouble.

Want more information about filing for bankruptcy? I'd like to invite you to visit http://www.NewYorkBankruptcyHelp.com to download my free report and learn more.

Jay S. Fleischman is a New York bankruptcy lawyer and New York State co-chairman for the National Association of Consumer Bankruptcy Attorneys. He is also the co-founder and past President of the Bankruptcy Law Network, where he writes on consumer bankruptcy and related issues.

Seek Advice From a Lawyer to Obtain an Understanding of Chapter 13 Bankruptcy Rules

Along with the economic climate in the situation it's in, lots of people eventually find that barely making it day to day is starting to become more difficult. The majority of people in America lived salary to salary currently, as well as a large amount of families had both parents working to pay bills. Along with joblessness rates jumping and also reduces in time and compensation, the typical household is actually getting a lesser amount of when compared in years past - without decrease in their own general financial debt. As a result, an increasing number of folks are seeking in the direction of personal bankruptcy as their particular hope for relief.
Sad to say Chapter 7 and Chapter 13 bankruptcy rules are extremely complicated to understand. Presently there are certain rights, disclosures, addendums as well as procedures within the laws and regulations that are around bankruptcies. Just like with salary taxes, they are created in complicated legal terms difficult for the typical person to understand. Almost everything one needs to understand to be able to file can be found on the web, but without pursuing the actual directions and specs as prepared an individual can perhaps incur penalties or maybe imprisonment because of this. That's where working with a lawyer who specializes in this field isn't just essential, but recommended.
While each of those chapters 7 and 13 apply to unique consumers in contrast to companies or corporations, Chapter 7 and Chapter 13 bankruptcy rules are different- one more reason why working with a lawful consultation is essential. Although an individual's first opinion of the variations in between the 2 guide them to think that one is preferable to another, the actual laws and regulations themselves do not fine detail each situation- which means that there's lots of interpretation included. Without a very good knowledge of exactly how each kind of personal bankruptcy will affect their financial responsibilities, one may select incorrectly- exactly where a lawyer might have assisted them make a decision that could have been in their benefit.
For instance, looking at the Chapter 13 bankruptcy rules, one particular might find that they should document with the court a plan to pay back their own credit card companies almost all or even a part of the cash that's owed using upcoming income. This could falsely guide them to think that they have to deal with every creditor within the plan- as well as accept much more pay back than required under the protection of the law. Right after talking to an attorney, the individual would have discovered that they can easily get rid of any kind of unguaranteed debts that they don't prefer to maintain, like credit cards. They might even make a deal on specific guaranteed debts, such as auto loans, to pay back what the automobile is currently valued instead of what's remaining on the loan.
Although a few may decide to not pay an attorney because they can document alone, obtaining a free of charge legal consultation at the very minimum amount is smart. Chapter 7 and Chapter 13 bankruptcy rules tend to be complicated and there's considerable time as well as effort required to be able to complete all of the needed documents for the court. In a consultation, a legal professional will make good sense out from the Chapter 7 and Chapter 13 bankruptcy rules and also assisted in the finishing of the necessary documents. Over and above arming them with this knowing, an attorney can easily recommend a person on what to state or not to state, as well as which form of personal bankruptcy enables them to maintain a larger amount of what they worked really hard to get.



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Taking it to Bankruptcy Court

The number of cases that people are filing in bankruptcy court is at an all-time high. With the average amount of consumer debt in the typical American household growing everyday, there is no end in sight.
People see bankruptcy as a new start for those who lost control of their finances due to one reason or another, but they often have no idea about the process that goes into filing bankruptcy or the long-term repercussions of doing so.
This is where bankruptcy attorneys are helpful. Without the help of bankruptcy lawyers, the entire process could be confusing and intimidating for the average person, so hiring help is highly recommended.
The rules and laws of any given bankruptcy court are governed by federal regulations rather than state regulations. While each state has its own laws regarding the process of filing and undergoing bankruptcy procedures, every state must follow the overall guidelines set forth by the federal government.
Once a person has hired a bankruptcy attorney and filed a petition with the courts to have all debts discharged through a bankruptcy, all creditors listed on the petition must cease any efforts to collect debts. The reason for this is that the bankruptcy court officials then handle the matter. If the proceedings are finalized and the debtors are granted bankruptcy, either their assets are liquidated to pay off creditors or they enter into a repayment plan, depending on which chapter of bankruptcy they are categorized in.
The best thing for a person to do when deciding to file bankruptcy is to seek out a bankruptcy attorney. There are many different laws and regulations involved in the filing process. Bankruptcy lawyers are familiar with specifics of the process and help ensure that the court treats the case fairly.
An attorney will also explain your options to you so you can decide which type of bankruptcy you want to file. In addition, they will typically accompany you to the bankruptcy court on your trial date and advise you throughout the entire process. Many bankruptcy attorneys will also put you on payment plans for their services for people who have no money saved for such an event.
Unfortunately, people often abuse the bankruptcy system by being financially irresponsible. More stories are being reported everyday about people who have filed for bankruptcy two and three times because they have learned nothing from their past mistakes.
Because of this abuse, the idea of bankruptcy has acquired a societal stigma that discourages those who truly need the fresh financial beginning that legitimate bankruptcies can provide. One of the advantages of bankruptcy lawyers is that they will accompany you throughout the process and add a sense of legitimacy to your claim.
Bankruptcy court can be an ordeal that takes a tremendous toll on a person, both emotionally and psychologically. Declaring that you have no money and no other options can negatively affect not only the way people view you, it can also have an impact on your own self-image.
People who are deep in debt often put off filing in bankruptcy court until they are certain that there is no other way out of their financial hole because of their pride or because they have simply exhausted all of their other possibilities.



Mike Selvon is the owner of various niche portals. Our bankruptcy portal is a great resource for more information on taking debt matters to bankruptcy court. While you are there don't forget to claim your free gift.

Understanding Bankruptcy Laws

The purpose of the bankruptcy law is to give honest people a way to get out of debt and start over again. The law does not help those who think they can simply avoid a debt they want to eliminate for whatever reason. This is an important distinction to understand. Filing bankruptcy is a serious decision with long reaching consequences on your credit, but for millions of people it is also a law that offers hope for a fresh start financially.
The bankruptcy law was revised in October 2005 largely in response to claims by creditors that it was too easy for people to claim bankruptcy just to avoid paying their bills. But if you are in serious financial trouble and cannot honestly pay your debts then the new bankruptcy law's more stringent filing requirements will not delay your bankruptcy.
The bankruptcy law has many different sections that address both individual and business bankruptcies. The law's intent is to distribute certain assets after statutory exemptions are excluded and then use the proceeds to pay off as much creditor debt as possible. The court determines which creditor gets what amount. All bankruptcies must go through federal district court, though each state has laws concerning the payments to creditors. This is just another example of why you need a bankruptcy attorney.
The bankruptcy law established "chapters" which merely indicates the kind of bankruptcy being filed. Chapter 7 is the one used most frequently by individuals. A court appointed trustee oversees the identification and selling of non-exempt assets and the use of the proceeds to pay debts. In reality, because assets such as a house and car may be exempted, there is often no asset liquidation required. Chapter 11 is used by large corporations that are reorganizing and need to restructure debt in order to survive. There is also a chapter 12 used by farmers and chapter 13 used by individuals asking for a court established and monitored repayment plan.
For individuals filing chapter 7 there are many different aspects to the law which can impact the final result. The law will not allow you to cancel some debts such as child support. The really good news is that you will not lose your home if your debt meets the rules for determining exempt equity. The same is true for your car. You are also allowed to retain cash accounts as long as the sum total does not exceed $10,000. The courts have recently ruled that retirement accounts like IRA's are also exempt.
It's easy to see that the new bankruptcy law has many complex provisions, but the goal of these statutes is to give you an honest chance to start over without a heavy debt burden. Your bankruptcy attorney will assist you throughout the entire process.



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What Makes It So Important to Hire a Bankruptcy Attorney Rather Than Filing on Your Own?

Bankruptcy defines a legal status in which a person or a business declares himself or itself as unable to pay back all his debts. In that case the law permits that person or business to file for bankruptcy in order to restore his future financial condition while also getting protection and relief from any harassing creditors. The types of bankruptcies vary and the type of case under question determines which type of bankruptcy will apply to it. Only a well experienced bankruptcy attorney will help you figure out which type of bankruptcy applies in your case. A bankruptcy attorney will tell you whether you need to file for Chapter 7, 11, 12, or 13 after analyzing your particular case. A bankruptcy attorney will guide you through all the legalities involved in the process of filing for bankruptcy thus saving you the time and energy required in studying them all and understanding them.
Filing for bankruptcy is legally permissible by any person, which means that hiring a bankruptcy attorney for the process is not a legal requirement rather just an option or personal preference. The only reason why most people prefer hiring a bankruptcy attorney rather than doing the work themselves if because it shorts the amount of time required a lot as an experienced person can deal with the process a lot quicker than one who has not done it before. The rules and regulations involved in filing for bankruptcy are quite lengthy and complex and difficult for an ordinary person to wrap his or her head around it. A bankruptcy attorney will help you by explaining all the pertaining laws and regulations to you.
When a person is forced to file for bankruptcy he or she will naturally be going through a lot of pressure. The biggest factor leading to stress and pressure is the constant harassment from creditors. But when you hire a bankruptcy attorney that person becomes your representative. Therefore all creditors know have to call your bankruptcy attorney for any complains instead of you. This means that you can easily get away with all those phone calls and personal visits from your creditors once you hire a bankruptcy attorney to represent you. This is the biggest peace that one enjoys after hiring a bankruptcy attorney.
Another great benefit involved in hiring a lawyer is that the attorney then becomes responsible for dealing with all the paperwork involved. In the process of filing for bankruptcy there a hundreds and thousands of papers and documents involved. For an ordinary person it is very difficult to be able to fill them all out without making any errors. Since a lawyer is dealing with these documents on a daily basis he or she will know them like the back of their hand. The chances of making any errors in these papers will become close to zero when you hire a lawyer. With no errors your case will roll out very smoothly and you will be done with it before you even know it. whereas if you do not hire a lawyer you will most likely make plenty of errors at this stage that can seriously cause a lot of problems like even the loss of your personal property and valuables. So why take this huge risk when a bankruptcy attorney is readily available?
These days the fees of a bankruptcy lawyer has decreased a lot making them more affordable by the general public. Carefully analyze the different attorneys available in your area and then hire the most efficient and affordable lawyer and have your case solved in no time at all.




The Bankruptcy lawyer will definitely help those people if they have filed for bankruptcy so that, the common people do not get over burdened with the debt which will be impossible for them to pay back.
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What is a Bankruptcy Trustee?

When you file for bankruptcy, your case and your debts can come under the control of the court in the person of the bankruptcy trustee, whose job it is to ensure that bankruptcy laws are obeyed and that your unsecured debts are paid off as much as possible. However, the trustee's legal powers go beyond these simple administrative duties, as this person assumes legal control of your property and your debts as of the date you file for bankruptcy. To take an action without the consent of the trustee is to risk having your case dismissed.
Who is the Bankruptcy Trustee?
Shortly after you file your bankruptcy papers, you will receive a notice informing you of the name, business address, and business telephone number of your trustee. This person is appointed by the Office of the United States Trustee, a branch of the Department of Justice. A trustee may be a local bankruptcy attorney, or a non-lawyer who is knowledgeable about chapter 7 and chapter 13 bankruptcy and the rules and procedures followed by the court.
Once your trustee has been appointed, he or she may contact you with a list of documents to be submitted to this person, which may include bank statements, property appraisals, canceled checks, or perhaps other such documents, and the date by which these documents should be sent.
The U.S. Trustee
In addition to the trustee appointed to handle your case, another person called the U.S. Trustee will be involved, though most people who file for bankruptcy will never have to deal with the U.S. Trustee. Most of the time the U.S. Trustee will only take action if your chapter 7 bankruptcy papers and/or testimony at the creditor's meeting indicate that:
- you earn a monthly income greater than the state median
- your actual income is enough to support a chapter 13 repayment plan
- you are suspected of having engaged in some sort of illegal action which warrants investigation, or
- your case is the one in 250 cases randomly selected for audit
Should the U.S. Trustee take action in your case, all parties to the case will be notified of the proposed action.
Chapter 7 Bankruptcy
When you file for chapter 7 bankruptcy, your trustee will have a vested interest in your property, and how much you claim as exempt. The reason for this is that the trustee receives a commission on property that is sold in order to pay off unsecured debts. The trustee's commissions may be 25% of the first $5000, 10% of everything from $5000 up to $50,000, and 5% of any additional money up to one million dollars (though most of you won' t have to deal with that much value in your bankruptcy case).
If all of your property is exempt under the applicable state laws, than your case will be considered a "no-asset" case; in such a case your creditors will be told not to file claims since you don't have any property to sell off to pay them. In such a case, your trustee will not be too interested unless your papers indicate that you may be hiding assets. In the case that you do have nonexempt assets to be sold off, your trustee will manage the selling of these assets.
Chapter 13 Bankruptcy
If you file for chapter 13 bankruptcy, your trustee's role will be to oversee your payments under the repayment plan. In the event that you miss a payment, your trustee will help you get back on track, even give you a temporary reprieve if you need it. The trustee will also participate in any hearings on the value of your property. However, in most chapter 13 bankruptcies, you maintain complete control of your money and any property you acquire after your bankruptcy filing, so long as you are able to keep up your payment schedule. Your trustee can also amend your payment plan in the event that your income or property increases during the course of your case.



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What Is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?

"Can you please explain to me, what is the difference between a chapter 7 and chapter 13 bankruptcy?"
Well folks, I am often asked this question and, while I am more than happy to answer it, it requires that we go back to Bankruptcy 101.
Let's start with chapter 7 Bankruptcy.....
A person must first make sure that they qualify before filing. A person will qualify for Chapter 7 relief if either: (1) their income does not exceed the median income level for the state in which they reside; or (2) if their income is over the state median, the "means test" is satisfied. In addition to the income requirement, before a person can file for bankruptcy, they must receive credit counseling from an agency approved by the United States Trustee's office.
If you are ready to find out if you qualify for Chapter 7 relief, the first step is preparing the petition. Preparing a bankruptcy petition can be overwhelming and confusing and that is why we suggest that you let an experienced bankruptcy attorney assist you with this process. There are a number of detailed rules and procedures that must be followed to ensure that your petition is filed correctly with the court and that you allowed exemptions are maximized.
Once a petition is properly filed, the court will appoint a trustee who will be assigned to your case to collect all "non-exempt property," of which he or she will take these assets and distribute proceeds to appropriate creditors. This does not mean that a trustee will take all of your assets. In fact, a person filing pursuant to chapter 7 may even qualify to reaffirm specific debts which would then be exempt from capture and repayment by the trustee. For instance, by signing a reaffirmation agreement a debtor can continue to pay for a car loan or a mortgage on their home.
Under Chapter 7, the debtor does not make a payment to the trustee for his or her services and a filing debtor receives a discharge on all dischargeable debts.
So, then what is a chapter 13 bankruptcy........
Chapter 13 bankruptcy is sometimes referred to a reorganization bankruptcy and is very different from Chapter 7 bankruptcy. In a Chapter 7 bankruptcy, most debts are discharged and a person is given a "clean slate" to start over. However, those persons that do not qualify for Chapter 7 bankruptcy, or those that want to retain valuable assets, may nonetheless seek financial relief through a Chapter 13 bankruptcy filing. In a Chapter 13 bankruptcy, a person does not hand over any property, but must instead use their income to pay some or all of what is owed to creditors generally over a three to five year repayment plan.
The length of a person's repayment obligation will be dependent on how much they earn in relation to how much they owe. If a person's average monthly income over the preceding six month period prior to the date a Chapter 13 bankruptcy petition is filed is more than the median income for their state, they will be mandated to prepare and propose a five-year repayment plan. If however, a person's income is lower than the median, they may propose a repayment plan over three years.
No matter how much you earn, your plan will end if you repay all of your debts in full, even if you have not yet reached the three- or five-year mark.
Chapter 13 bankruptcy isn't for everyone. Because Chapter 13 requires you to use your income to repay some or all of your debt, you'll have to prove to the court that you can afford to meet your payment obligations. If your income is irregular or too low, the court might not allow you to file for Chapter 13.
If your total debt burden is too high, you are also ineligible. Your secured debts cannot exceed $1,010,650 and your unsecured debts cannot be more than $336,900. A "secured debt" is one that gives a creditor the right to take a specific item of property (such as your house or car) if you don't pay the debt. An "unsecured debt" (such as a credit card) doesn't give the creditor this right.
Like Chapter 7, before a person can file for Chapter 13 bankruptcy, they must receive credit counseling from an agency approved by the United States Trustee's office.
The most important and unfortunately most complicated aspect of a Chapter 13 filing is the repayment plan. This is a detailed list that will describe precisely how a person will repay each of their debts. There is no official form for the plan and therefore it is strongly recommended that you seek the advice of an experienced bankruptcy attorney when preparing your repayment plan documents.
A Chapter 13 plan is required to pay certain debts in full. These debts are called "priority debts," since they are considered adequately important to move to the head of the bankruptcy repayment line. Priority debts include child support, alimony, wages you owe to employees and certain tax obligations.
In addition, your plan must include your regular payments on secured debts, such as a mortgage or an auto loan, as well as repayment of any arrearages (past due amount(s)) on the debts.
A repayment plan must also illustrate that any disposable income a person has left after making required payments will go towards repaying any unsecured debts, such as credit cards. It should be noted that a person will not be required to repay these debts in full or at all in some cases.
If for some reason a person cannot finish a Chapter 13 repayment plan, if circumstances are warranted, the bankruptcy trustee has the power to modify the plan, or a court may discharge the remaining debts in full if "hardship" can be demonstrated. If the bankruptcy court won't let you modify your plan or give you a hardship discharge, you might be able to change to a Chapter 7 bankruptcy or seek permission from the court to dismiss your Chapter 13 bankruptcy, of which case a person would still owe any remaining debts, plus interest(s) creditors discharged while the Chapter 13 case was pending.



My name is Christopher H. Ariano and I am a Phoenix bankruptcy attorney and managing partner of Ariano & Reppucci, PLLC. We are a boutique law firm located in Phoenix, Arizona that focuses on the preparation and filing of consumer bankruptcy petitions. If you are in need of an experienced and dependable Phoenix bankruptcy lawyer, don't hesitate to contact me today.
The information contained on this web site may provide general legal information but is not intended to give legal advice or counsel on any specific legal matter. It does not create an attorney-client relationship and should not be relied upon in lieu of legal counsel. The links provided in this web site are for the information and enjoyment of on-line readers and do not constitute an endorsement of products or services represented there. The hiring of a lawyer is an important decision and you should consider the information contained on this Website as well as other factors in making your own decision.

Which Is Better, Chapter 7 Or Chapter 11?

The selection to file personal bankruptcy under chapter 11 or chapter 7 is best to be decided after you have considered the advantages and drawbacks associated to the scenarios from the borrower. Current income and costs incurred should also be considered.
Chapter 7, is much more suitable for consumers prepared liquidate their non-exempt property in turn for removing troublesome debt. The non-business consumer will be forced to take a means test to make certain the case is suited for Chapter 7 if they have a frequent monthly income, specifically if their particular monthly cash flow is above $11,000 annually. At $300 the filing costs for chapter 7 are relatively affordable. For those that find it hard to shell out that sum it is likely to be able to get the initial fees distributed over a period of four months. Chapter 11, involves primary filing charges of over $1000, although the judge will permit these to can be ameliorated over a longer time period. Due to the complexity of chapter 11, attorneys' service fees tend to be greater than for chapter 7 because of the issues involved and also the considerable time that should be committed to the case. Though Chapter 7 is accessible to organizations it's more suitable for folks.
Individuals may be more suited to the Chapter 7 Bankruptcy rules if they are ready to liquidate their property in order to get rid of debt. A stay is going to be instantly carried out which provides the borrower relief from the demands of creditors, once the papers are filed. Simply because Chapter 7 then assigns a trustee to handle the details, minimal involvement will be needed with the bankruptcy court. The remaining procedure progresses in a reasonable fashion after all declarations are revealed plus a complete disclosure from the borrower's assets is made accessible for the judge. As soon as that is completed all the debt is going to be discharged, enabling the individual or married couple to begin his or her financial lives over.
Chapter 11 allows for the retention of a organization and the decreasing or reorganization of debt, for small business, partnerships, or sole proprietors burdened with unmanageable consumer debt. All the while that the bankruptcy is in process, the borrower in control of their company and is operating the company throughout the time of reorganizing, is furnished the power to keep the business active performing specific things like borrowing money relevant to the business under specific court appropriate conditions. Debtors should consider this choice cautiously, nonetheless, because of the fees involved, the complexity of the method and the length of proceedings.
The debtor is going to be expected to create a pay back approach immediately after providing complete disclosure of all fiscal belongings info connected to the small business. Loan companies may also be permitted to file reimbursement strategies, under particular scenarios. The borrower in possession, with unique right to file a approach for within 120 days from the initial filing date, may retain charge of their business enterprise.
In Chapter 11 bankruptcy, considerable obligation on the borrower, as borrower in possession, to interact with the bankruptcy court, the lenders' committee and others who may possibly turn out to be included, simply because the US trustee isn't normally appointed to take care of the specifics and generally just assumes a monitoring role. It's wise to engage a legal professional, and other authorities that will become part of the courtroom proceedings, as a consequence of this complexity of all the people that will be included in a Chapter 11 bankruptcy case. A firm or partnership will be required to be represented by a lawyer simply because the trustee has the capacity to demand settlement on approximately a regular quarterly basis.
Chapter 11 bankruptcy offers simpler alternatives for smaller businesses and reduces the time period in contrast to what is required for larger operations. The approach is still complex and there's the likelihood, should do cause be proven, it could be converted to chapter 7. Sole proprietors and smaller firms that wish to steer clear of liquidation may also consider chapter 13 bankruptcy as a less complicated and less costly alternative to chapter 11.



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Why Do You Need Bankruptcy Attorneys?

If you also find yourself in such a case of mounting debts and torturing creditors then perhaps you should take the first appointment you get with a bankruptcy attorney. For bankruptcy lawyers it is their business and they know about everything that goes around in it so they will be able to sketch out a viable alternative for you which you might not even think can be worked out. So give in an expert and let them help you.
Along with repaying your debts and the bankruptcy attorney can also guide you to sell off your property in order to repay the creditors. And if selling off your property is not exactly your idea of getting rid of all your debts the bankruptcy lawyers can also assist you in making an arrangement with your creditors approved by the court to repay them in a pre-determined frame of time. Again, if you hire a bankruptcy attorney they are updated with every last bit of information regarding the United States Bankruptcy code. Bankruptcy is not an easily gliding procedure it can really confuse nonprofessional so a bankruptcy lawyer really can make things easy and facilitate them for you. The most common procedures in bankruptcy proceedings are Chapter 7 wherein you follow the debt liquidation or reorganization. The other one is arranging for repaying the indebted money under the Chapter 9, 11, 12, or 13 bankruptcies.
If you are thinking of filing for bankruptcy, a bankruptcy attorney is recommended. The rules of bankruptcy have changed and new norms have been introduced which a nonprofessional cannot be expected to know about. Again, the new rules have made it only difficult to file for bankruptcies all the more reason you will need bankruptcy lawyers to make your experience more pleasant after everything that you are already going through. They will be able to suggest you ways to get rid of your debt mountains, deal with your property and assets in a way that will benefit you and give you more time at hand. Bankruptcy Attorneys also work with the creditors and give them the assurance that their funds will also get recovered back. So a bankruptcy attorney is obviously a person you are going to thank once you see the benefits of hiring them.



Usloanz.com is the Web site where you will find a trusted Bankruptcy Attorney who will help you make decisions regarding Chapter 7 Bankruptcy and Chapter 13 Bankruptcy that are right for you.

"Reformed" Personal Bankruptcy Law of 2005, Now Broken, Should Urgently Be Truly Reformed This Time

Time, once again, to reform the new 2005 reformed bankruptcy laws, and to reform the new reformed Chapter 7 bankruptcy? Or even the Chapter 13? On October 17 2005, amidst the highly charged atmospherics of high drama, robust promises and expectation, the new bankruptcy law, the Bankruptcy Abuse and Consumer Protection Act or BAPCPA, which had been enacted by Congress largely at the prodding of the Credit and financial industries, among other special interests, was promptly put into effect. Generally called the "reform" bankruptcy law, the law had been touted as something of a bankruptcy cure-all that was going to fix a "broken" bankruptcy system in America, most especially, reverse or drastically reduce the high volume of bankruptcy filings and the increased use of bankruptcy by American consumers in resolving their debt problem. The overarching, dominant argument and premise expressed by the banking and financial industry advocates and supporters of the reform law, and by its sponsors in the Congress, was that the growth in bankruptcy was due to "fraudulent bankruptcy filings" by consumers and the "excessive generosity" of the old bankruptcy system which, it was said, encouraged "abuse" and allowed a great many number of debtors to repudiate debts that they could quite well pay, at least in part.
A Congressional Research Service (CRS) report on the matter summarizing the "Legislative Goals of [the] Consumer Reform," summed it up this way:
"The high volume of consumer bankruptcy filings during the 1990's fuels the argument that the current law is too lenient, i.e., 'debtor-friendly' bankruptcy. Proponents of consumer bankruptcy reform cite many reasons in its support. The legislation is intended, among other things, to make filing more difficult and thereby thwart "bankruptcies of convenience"; to revive the social "stigma" of a bankruptcy filing; to prevent bankruptcy from being utilized as a financial planning tool; to determine who can pay their indebtedness and to ensure that they do; to lower consumer credit interest rates; and, to maximize the distribution to both secured and unsecured creditors. To effect these goals, the proposals implement a "means test" to determine consumer debtors' eligibility to file under chapter 7."
That was in October 2005 that the new law came into effect. Fast forward to today in March 2009, however, only less than 4 years after the passage of the new rules of the 2005 BAPCPA law that toughened the system for bankruptcy filing and made it far more costly (it more than doubled the legal fees charged by attorneys for bankruptcy filing) for debtors to file for bankruptcy. And we find that American debtors, once again, are fast returning to the same rate of bankruptcy filing as the pre-2005 levels. And the informed expert projections are that we'll land right back pretty soon at the same old "square one" in bankruptcy filing - back to the old "bad" high pre-2005 bankruptcy filing levels which the 2005 "reform" law just enactment by Congress was meant to cure and reverse. For the month of February 2009, for example, there were over 103,000 bankruptcy filings nationally. Spread over the 19 business days of February 2009, the filing rate is 5,433 filings per day - which represents a 22.0% jump over the January 2009 filing rate, and a year-over-year increase of 29.9% as compared to February 2008. In deed, by some expert predictions, the nation will register a rate of 1.4 million bankruptcy filings for the current 2009 calendar year.
Clearly, the "reformed" BAPCPA law has woefully failed in its avowed fundamental mission and purpose - discouraging American debtors from using the bankruptcy system in settling their debt problems by making the process tougher and more expensive and hassle-filled, and reversing the escalating or high volume trend in bankruptcy filings.
WHY THE 2005 LAW FAILED
The fundamental reason why the 2005 law has come crashing down so soon, can be traced directly to one basic reason: the whole BAPCPA scheme had been based on a premise that is badly flawed, in deed false, and totally unsupported by facts or evidence or research, but based largely on mere raw emotions and ideological thinking. Essentially, Congress, while conspicuously discounting the independent research-based evidence of scholars such as Harvard's Elizabeth Warren and others (see, for example, Sullivan, Teresa A., Elizabeth Warren, and Jay Lawrence Westbrook. As We Forgive Our Debtors. New York, Oxford University Press, 1989), ultimately bought the more emotional argument of the banking and financial industries that rampant "fraud and abuse" was to blame for the high volume of consumer filing, and that to stem that tide the law needed to be made more stringent so as to curb "bankruptcy of convenience" by debtors.
That fundamental premise happens to have been totally false and grossly in error, however. At the heart of it, the notion that most American debtors file bankruptcy because though they really have the means to pay up their debts, they just do not wish to pay and merely want to cheat to get out of their debt obligation, is directly contradicted by so many studies and emperical evidence on the subject. But, even more closely today, it is directly contradicted by current events. Americans have, again, turned around and resumed flocking to the Bankruptcy courts in record numbers precisely today at a time of clearly serious national economic downturn, joblessness, financial distress and depression, for a great deal of them. Why? Because they wish to or love to cheat? Clearly, NOT that! Clearly, the 2005 reform law failed woefully to take into account the central role that the overall health and soundness of the "fundamentals," or, even more accurately, the lack of it, involved in the nation's as well as an individual debtor's economic and financial condition - his employment, overall financial obligations, etc - could often play in whether or not the debtor ultimately pays back his or her debt.
"After October, 2007 [marking the two years anniversary after the new 2005 law], there was very little 'inventory)'' of consumers ready to file for bankruptcy relief," explains Etaoin Shrdlu, one analyst on the subject, writing in Credit Slips, an online bankruptcy forum. "The Code [the bankruptcy law] changed, but the economic factors leading to bankruptcy have not. If anything, they're getting worse. [That's why] I think that within the next couple of years we'll be back at the same filing levels we had in 2003 and 2004."
Elizabeth Warren, the Harvard Law School professor and author of several books on bankruptcy, probably sums up the point best, this way:
"The credit industry did its best to drive up the cost of filing [for bankruptcy] but when families are in enough trouble they will fight their way through the paper ticket and higher attorneys' fees to get help," adding that "The word is now leaking out [once again] that the bankruptcy courts are open for business."
In sum, today, as we now see, the 2005 bankruptcy law is clearly badly flawed, if broken, right from the beginning. Congress, it's now obvious, needs urgently to completely redo this law to truly reform the egregious flaws of the 2005 "reformed" law - this time correctly, we hope.
Among many other important considerations that the new, truly "reformed" law must include, perhaps the most critical of them all is this: AFFORDABILITY OF BANKRUPTCY; finding low-cost bankruptcy. Whereas the 2005 law sought to arbitrarily restrict or exclude qualified bankruptcy candidates from filing for bankruptcy largely based on false premises by making it more difficult and expensive for them to file, such new law should provide effective mechanism that enables virtually EVERY honest American debtor, once clearly economically unable to meet the debt obligations but overburdened with debt and otherwise qualified, to have low-cost bankruptcy filings. Even finding non-lawyer pro se alternative to lawyer. American debtors should never be forced to have to forfeit their sacred constitutional right to bankruptcy as Americans, to seek the relief of bankruptcy from their debt burden and get the rehabilitative fresh start that bankruptcy offers for a life after debt - AFFORDABLY.



Benjamin Anosike, Ph.D., has been dubbed by experts and reviewers of his many books, manuals and body of work, which deal largely on self-help law issues, as "the man who almost literally wrote the book on the use of self-help law methods" by America's consumers in doing their own routine legal chores - in uncontested divorce, will-making, simple probate, settlement of a dead person's estate, simple no-asset bankruptcy, incorporation, etc. A pioneer and intellectual and moral leader of the 1970s-based "you do your own law" movement and a lifelong vehement advocate and veteran of historical battles for the right of the American consumers to perform their own tasks in the area of routine legal matters, Anosike was one of the pioneers who fought and survived (along with many others of courage) the lawyers' and organized bar's stiff war of the 1970s and '80s against American consumers and entrepreneurs who merely sought, then, to use, write, distribute or sell law-related self-help books and kits for non-lawyers to do their own law, upon the lawyers' claim then of such matters being purportedly "unauthorized practice of law" or "practicing law without a license" Anosike holds graduate degrees in labor economics and management and a Ph.D. in jurisprudence. Characterized by a review of the American Library Association's Booklist Journal as "probably the most prolific author in the field of legal self-help today," Dr Anosike is the author of over 26 books and manuals (and countless number of articles) on various topics of American law, including 4 volumes on personal and business bankruptcy filing, in a lifetime of dedication. For more on the subject matter discussed in this article, or on how to get a low-cost, affordable bankruptcy filing, or the author's other books and manuals, visit this site: www.Afford-Bankruptcy.Com [http://www.afford-bankruptcy.com/]

An Introduction to the Chapters of Bankruptcy

If you are facing a dire financial situation, there is a chance that filing for bankruptcy protection has crossed your mind. If this is the case, there are a few things that you should know about. First and foremost, you need to understand the different types of bankruptcy that are available to you.
There are three common chapters of bankruptcy that are often spoken about. They are Chapter 7, Chapter 11, and Chapter 13. If you end up filing bankruptcy, it's virtually a certainty that it will be one of these three chapters. The chapter that you will ultimately choose depends on many complex legal and financial factors, so it's difficult to accurately determine which one is best for you without careful analysis. But hang on -- don't reach for the calculator just yet -- first, it's important that you have a basic understanding of each chapter's purpose, their consequences, and the differences between them.
Often referred to as a liquidation bankruptcy, the most common form of bankruptcy is Chapter 7. In a Chapter 7 bankruptcy, you will be able to discharge all of your debts that are eligible. Certain debts such as student loans, child support, and some tax obligations are un-dischargeable; meaning that you will still owe these debts upon conclusion of the bankruptcy.
The reason that Chapter 7 is referred to as a liquidation bankruptcy is because of the way in which your assets are handled. Yes, unfortunately, they are liquidated. All assets that are not exempt are auctioned away and the proceeds are distributed among your creditors. Each and every state has its own rules and procedures as to what assets you will be able to exempt or keep out of the hands of the bankruptcy trustee. A good example of this is Florida's homestead exemption. In Florida, your primary home, or homestead, is exempt from a Chapter 7 bankruptcy; and as such, will not be taken and liquidated by the trustee. In practice, many Chapter 7 bankruptcies are asset-free once all of the available property exemptions are made.
The second most common type of bankruptcy is a Chapter 13. This is often referred to as a repayment or reorganization bankruptcy. When a person files under this chapter, their attorney will look at their current financial situation and develop a plan for repayment of debts over the course of three to five years. The monthly payments will be made to the bankruptcy trustee and paid on a proportionate share based on priority status of the creditors.
Determining the monthly payments is a complex event. You will need to look at your current income and any expected income, then subtract out reasonable and ordinary expenses such as rent, electrical bills, food expenses, etc. At this time you will be left with what is called disposable income, and that money will be used to pay the creditors as they stand on the preferred payment order. In many Chapter 13 bankruptcies your unsecured creditors will need to take a total payment amount that is less than the current balance of the debt.
The other bankruptcy that is common is a Chapter 11 bankruptcy. This is very similar to a Chapter 13, but is used mostly for corporations. With the recent economic downturn many companies have sought protection and debt restructuring under this chapter of the bankruptcy code. Some of the more famous are Blockbuster Video and General Motors.
Now that you've been introduced to the most common chapters, you should have a better understanding of bankruptcy and the direction you're heading in. If you feel overwhelmed with information, don't worry, that's completely normal. Bankruptcy is a complex legal process and its full comprehension is a daunting challenge. Luckily, there's no shortage of lawyers and financial consultants available to help.



In the process of filing bankruptcy, navigating the court system and properly filing the paperwork is a challenging task. That's why it's always a good idea to consider retaining a bankruptcy lawyer. When your financial future is on the line, the help of an experienced professional is truly invaluable. Visit our homepage to schedule a free consultation with a Tampa bankruptcy attorney.