Archive for March, 2010

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What a Credit Counseling Agency Does and How to Choose One – Alternatives to Bankruptcy

Wednesday, March 31st, 2010

Credit counseling agencies are for people who have problems paying debts. If you can’t pay bills on time, have outstanding credit card debt, and want advice on money management, credit counseling agencies can help and are in some cases an alternative to filing bankruptcy.

Credit counseling services include:
-Money management education for debtors
-Budget and debt counseling
-House counseling
-Referrals

The Debt Management Plan
A DMP  is where the credit counseling agency negotiates with your credit card companies and other creditors. Typically, the credit counseling agencies goal is to negotiate for lower interest rates and monthly payments to your creditors. You will make a large payment to the agency, and they’ll send separate payments to all your creditors.

The Price
While some credit counseling agencies come at no cost, some do charge a fee (usually small). Also, you should be weary of using a credit repair clinic, who sometimes trick individuals into their services. In essence, credit repair clinics only do what you could easily do for yourself. They offer to fix your credit with services available to everyone. It’s best to avoid any company offering to repair your credit for free; most are scams.

Choosing A Credit Counseling Agency
There are a variety of ways to make sure you get the right services for your situation. Just as you shouldn’t hire the first bankruptcy attorney you find, you should research credit counseling agencies and compare them. Here are some notes on what you should look for.

-They must me a registered nonprofit (accredited nonprofit)
-Are a member of the NFCC or AICCCA
-Employ certified, professional counselors
-Provide counseling and education
-Offer more than one debt management option
-Are upfront about all fees
-Have a clean business record
Let’s go over some of these in more detail.

Certified Counselors
Credit counselor should have not only completed a training program within the company, but also passed a certification exam; the certification exam tests for understanding in counseling, budgeting, credit and consumer law, debt management, and bankruptcy law. You want this exam for your counselors to be done by an outside, independent agency such as Financial Counseling and Planning Education.

Counseling and Education
You want to go over all the details on your current economic status in person, by phone, or on  the web. It usually takes about an hour and you’ll go over income, expenses, debt, why you’re in a tough situation, and your future goals. After this session, you should get a budget plan, a list of steps and to begin, and notes on your options.

Fees
You should never pay more than $50 to establish your work with the the credit counseling agency, and future monthly payments should never exceed $50. Also, the agency must be made aware if you cannot afford these fees, and should waive them.

When Filing Bankruptcy
In some cases, you might want to actually file bankruptcy, whether it’s Chapter 7 or Chapter 13 bankruptcy. Sometimes you simply cannot pay back all these fees. In any case, you have nothing to lose and a lot to gain when working with debt counseling agencies.

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Bankruptcy Decisions – When it Makes Sense to File for Chapter 7 or Chapter 13 Bankruptcy

Monday, March 29th, 2010

It’s often depressing to look at your finances, see you’re in debt over your head, and admit you have to file bankruptcy. While in many cases alternatives to bankruptcy do exist, whether it’s Chapter 7 or Chapter 13 personal bankruptcy, it’s often clear filing bankruptcy is your best option. Does that mean your house will go into foreclosure? How bad will it be?

In many cases, filing bankruptcy is a logical, if somewhat scary decision you make when you’re out of options. If you are financially in trouble when it comes to your home, job, health insurance, and credit card debt, filing bankruptcy is wise.

This needs to be said because many individuals and families struggle for far too long before they admit they need to file Chapter 7 or Chapter 13 bankruptcy. It’s almost considered giving up. By the time you do make the decision, you’ve lost a lot already and you’re worse than you would have been if you’d made the decision earlier. That goes against why bankruptcy was created–for helping individuals rebound from tough economic times, joblessness, and outstanding debts.

So when do you make the decision? Instead of blaming yourself, file early and take advantage of the law. “You can use Chapter 7, the most popular type, only once in eight years, so draw up a ‘no kidding’ plan for living on your income when you’re finally clear,” says Jane Bryant Quinn for Newsweek.

When to file Chapter 7 or Chapter 13 bankruptcy:
-When you still have assets to protect but you’re financially stuck
-Before you decide to pay back huge bills
-When tap IRAs and 401(k)s
-When you have outstanding medical bills (which can be canceled by bankruptcy)

Speaking of IRAs and 401Ks, you should never use these as an alternative to filing bankruptcy. After all, these are your future, and are meant to provide for you later, not now. These are mainly protected by bankruptcy, so ask your bankruptcy attorney about them.

Never wait for medical treatment–dental, eye, or otherwise–because you are out of money. These can be part of your Chapter 7 bankruptcy filing, or paid back in a reasonable amount of time with Chapter 13 bankruptcy.

Since you can use Chapter 7 bankruptcy once every 8 years, it’s a clear alternative to tapping into funds your future depends on.

So how do you make the decision between Chapter 7 and Chapter 13 bankruptcy? With new bankruptcy laws, Chapter 7 bankruptcy is off the table for many. Now, people are being told to file for Chapter 13 bankruptcy. In short, Chapter 7 bankruptcy clears the majority of your debt, from mortgages, to medical bills, to credit cards. There are some nonexempt items which you may lose here.

Chapter 13 bankruptcy is less about canceling debt and  more about creating a longer time frame for repayment. If you make too much money, you may be forced to file Chapter 13 bankruptcy instead of Chapter 7.

Choosing between the two calls for 1) research and 2) professional counsel. Hiring a professional bankruptcy attorney ensures your financial future will be safe.

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How Bankruptcy Can Eliminate Tax Debt

Friday, March 26th, 2010

If you’ve fallen behind in tax payments and have no chance of paying back the debt, it used to be you had few options. However, with the bankruptcy laws changing in recent years, you can now eliminate tax debt anywhere in the US with Chapter 7 bankruptcy. And with Chapter 13 bankruptcy you can pay in installments.

There is some fine print to those statements. The best thing you can do is a contact a professional bankruptcy attorney in your state who can consult with you on options. A bankruptcy attorney can tell you restrictions and requirements on eliminating tax debt by filing Chapter 7 bankruptcy. The attorney can also explain how Chapter 13 bankruptcy is now much more common than ever before.

Let’s go over the 5 requirements you have to meet in order to eliminate tax debt.

1-Your tax return must have been due at least three years ago. That means, if you file behind one year or two years ago, you cannot get the tax debt discharged yet.

2-The return then must have been filed at least two years ago with the IRS.

3-The tax debt must have been assessed a minimum of 240 days ago. The IRS must recognize the tax debt at a minimum of 240 days ago, in other words.  So if you file for bankruptcy and want the tax debt eliminated, the debt needs to have been present for 240 days or longer, and the IRS must have in some way recognized this debt.

4-The tax return itself must be completely truthful. If there are errors, intended or not, the tax return is fraudulent in many respects, and the debt cannot be discharged.

5-Last, you cannot be guilty of tax evasion.

As you can see it can get complicated. However, in a nutshell, all you really have to worry about is the time frame, that the  IRS recognizes the debt, that the tax return is correct, and you’re not guilty of tax evasion. That likely keeps most options on the table.

What a Bankruptcy Attorney Can Do
There are some more footnotes to this discussion.  You should at a minimum consult with bankruptcy attorneys. While it’s true you can discharge your tax debt completely with Chapter 7 bankruptcy, in some cases home owners may have to pay back in other ways. This is because you cannot discharge a federal tax debt. If the IRS reported a tax lien on your home, you may have to pay back that lien before you can sell it.

A professional bankruptcy attorney knows how to handle not only situations in the courtroom, but all the paperwork involved in handling back taxes. This can be quite complex. You may try and do it yourself, but a few mistakes and you may be in trouble.

But if you successfully file Chapter 7 bankruptcy, you can expect major debts to be eliminated. If you file for chapter 13 bankruptcy, debts like taxes can be paid over a more reasonable time frame. Choosing between the two is a discussion between you and your bankruptcy attorney.

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Student Loan Debt Help – From Types of Loans to Attorneys

Wednesday, March 24th, 2010

Student loan debts vary in terms of repayment plans. For the purposes of this article, we’ll discuss the more common federal student loans, how you can handle repayment, and what happens if you cannot pay or file for bankruptcy.

Kinds of Federal Loans
The two kinds of federal loans are FFEL(Federal Family Education Loans) and Federal Direct Loans. FFEL loans are made by private lenders and guaranteed by the government. In this case, if you default or file bankruptcy, the lender is reimbursed by the government. “Federal Direct Loans” pretty much speak itself: they are direct loans from the U.S. government.

Other Loans
There are also school federal loans, where the school issues a federal student loan. Repayment plans depend on the school. Lastly, there are private loans, which are made with federal funds and come with the least options for repayment. You typically need to discuss with the lender repayment options, along with what happens if you default or file bankruptcy.

If You Think You’ll Default on the Debts
If you do default, it’s best to find out in advance. For repayment plans, you don’t want to wait until you’re far behind on payments, as many of the following options will not be available to you. Also, you are not locked into any plan, typically being able to switch your plan once a year.

Repayment Plan Forms
Standard repayment plans are offered by your lender, where you make payments for up to 10 years. You pay less interest here, but your monthly payments are higher.

Graduated repayment plans are common too, mainly because you can start small (when you’re in school) and start paying more over time (as you get work).

An extended repayment plan allows you to pay smaller amounts for up to 25 years. You need to have a balance of more than $30,000.

Last, income-based repayment plans are unique in that, as it sounds, you can pay based on how much money you are making. If you had a job but lost it, the income would go down, and therefore the monthly payments would go down.

Default and Bankruptcy
If you think you’ll fall behind in payments and might default, it’s best to act early. If you fall far behind, the government can take money from your income tax return, garnish your wages, or even take back federal benefits (if you’re on social security, for example).

The best move is to hire professional counsel if you fall far behind and cannot catch up. In most cases, you cannot file Chapter 7 bankruptcy and get your student loans discharged. This is where a professional bankruptcy attorney can help you.

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Is Filing California Bankruptcy Right for You?

Tuesday, March 23rd, 2010

Deciding if California bankruptcy is right for you is clearly one of the biggest financial decisions of your life. While bankruptcy can solve many problems, it’s not the only alternative. There are many other ways to get control of your finances.

You can learn more by hiring a professional California bankruptcy attorney to go over your case. Even a brief consultation with a lawyer could save you a lot of headaches.

Before deciding if bankruptcy is right for you, let’s go over the bankruptcy basics.

For individuals, you’re going to be filing Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankrupt has for years been the more popular one, but new bankruptcy code has made it difficult for many to file under Chapter 7 in California and across the nation. Now, Chapter 13 bankruptcy is often advised.

Chapter 7 bankrupt liquidates your assets, clears you of most debts, and does so within a matter of months. Chapter 13 bankruptcy pays back assets over time, and you usually don’t lose much if anything as long as you stay with the repayment plan. If you feel you cannot pay back outstanding debts, Chapter 7 bankruptcy is wise. If you don’t want to lose your home and have income coming in regularly, get with a Chapter 13 bankruptcy attorney who can go over the advantages of Chapter 13 bankruptcy.

Now let’s go over the decision making process of California bankruptcy.

Alternatives
There are many alternatives to actually filing bankruptcy, including working with debt counseling agencies. This is another point where professional counsel is valuable. You often have more options than you think.

Limits on Bankruptcy
Did you know that if you have enough income, you may be forced to file Chapter 13 bankruptcy? That’s what was alluded to earlier: sometimes you are forced away from Chapter 7. On the other hand, if you wanted to save your house or car, you might think Chapter 13 is the way to go. If your debts are too high and your income too low, you will likely have trouble filing. These are things you should really study as filing bankruptcy is not usually a quick fix.

Debts Canceled
Not all debts will be canceled, even if you file Chapter 7 bankruptcy. Some debts can be canceled but do not limit what the creditor can do to take back property. This is a called a secured debt, and  some items can be lost.

Credit Cards
There are many good things about filing bankruptcy, especially in times when you feel debts are piling up. You can, for example, wipe your credit card debts by filing Chapter 7 bankruptcy. This is perhaps the biggest benefit of filing bankruptcy, as credit card debts and interest rates sometimes only grow.

Keep All Your Property
One big advantage of Chapter 13 bankruptcy is the options you have the time you can buy. For instance, you might be falling behind on house payments, have other outstanding debts, but have a good job about to start. You might be able to pay back all these debts, including your house payments, over an extended period of time. Chapter 13 bankruptcy typically gives you 3-5 years to pay these back. If you love your home, and would do anything to keep it, Chapter 13 bankruptcy is a good option.

Personal Life
Filing California bankruptcy is a way to clear debts, save property, and give you a fresh start. However, it will not make all your problems go away, nor will it be easy to file for. The best thing you can do is hire a California bankruptcy attorney who can help.

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How a Bankruptcy Lawyer in San Diego Can Help You with Chapter 7 and Chapter 13 Cases

Friday, March 19th, 2010

Hiring a bankruptcy lawyer in San Diego is, along with filing bankruptcy, one of the best decisions you can make when feeling the weight of debt, foreclosure, and creditor harassment. There are many reasons to hire bankruptcy lawyers in San Diego. You can stop creditor harassment, be confident when you file, be confident in filing Chapter 7 or Chapter 13 bankruptcy, and get the fresh start you have a right to get.

So what  exactly does a bankruptcy lawyer in San Diego help with? We noted several key reasons hiring a bankruptcy lawyer is smart, but you should also know how to hire one.

How to Hire a Bankruptcy Lawyer in San Diego
Typically all it takes is a phone call or an email to get a lawyer of any kind, but not all lawyers are equal. You should definitely hire a lawyer specializing in bankruptcy, who works locally and knows California bankruptcy laws, who can help you through the process, who can help stop foreclosure of your home, and who can handle all the documentation and court hearings.

That’s not an easy task, so be thorough in researching your bankruptcy lawyer.

How Do They Specialize in Bankruptcy?
Did you know with recent laws it’s now harder to file Chapter 7 bankruptcy, and that many are forced to file for Chapter 13 bankruptcy? Did you know if your home or car is valued too high, it could be a nonexempt item and lost in a Chapter 7 bankruptcy? These are the type of things bankruptcy lawyers in San Diego should be clear with you on. For example, if you sell a nonexempt item and use it to buy exempt items, that is technically legal. A professional bankruptcy lawyer in San Diego can offer tips just like that.

What Help in the Hearing?
Before the hearing there is a lot of paperwork to do. That is actually more time consuming than the short hearing. While it may seem short, there’s a lot that goes on in any bankruptcy hearing, and you need a professional to handle all the details.

Prices of Bankruptcy Lawyers in San Diego
You can expect to pay a fee of some kind, but some bankruptcy lawyers will charge you just for a consultation. This isn’t always unfair, but you should be clear on that before speaking with them. While hiring a lawyer of any kind if never cheap, this is perhaps the biggest decision of your life and you need professional counsel.

Chapter 7 Bankruptcy San Diego
Since Chapter 7 bankruptcy is now tougher to file for, a bankruptcy lawyer in San Diego can help you successfully file and handle all items you own. It’s important to know what property is exempt and nonexempt in any Chapter 7 bankruptcy hearing.

Chapter 13 Bankruptcy San Diego
Sometimes Chapter 13 bankruptcy is in fact the best move. If you’re home is about to go into foreclosure and you’re willing to do anything to keep it, Chapter 13 bankruptcy in San Diego can not only save your home but sometimes cancel 2nd and 3rd mortgages on the home. It can also buy you more time.

Professional bankruptcy lawyers in San Diego mean the difference between success and failure in the process of getting a second chance, so be picky when you hire one.

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Benefits of Chapter 7 Bankruptcy in Las Vegas

Wednesday, March 17th, 2010

Chapter 7 bankruptcy, a liquidation proceeding designed to give you a fresh start, can help Las Vegas residents in a number of ways. Typically with Las Vegas bankruptcy, you’re choosing between Chapter 7 bankruptcy and Chapter 13 bankruptcy. You may have fallen behind on mortgage payments and risk foreclosure. You may have lost your job and benefits, and have big bills coming in you simply cannot afford on unemployment. Or you may have just made a mistake in your finances.

The answer to Las Vegas residents interested in a second chance is using Chapter 7 bankruptcy to help.

How can you save your home from foreclosure or cancel certain debts? Chapter 7 bankruptcy is a legal way to 1) buy yourself time and 2) save your residence. Let’s go over these in detail.

Save Money with Chapter 7 bankruptcy in Las Vegas
Quite often you can live in your home for free after filing Chapter 7 bankruptcy. It may be only a few months, but often that’s all you need to find  some other residence. Also, you can technically cancel some of your mortgage debt, including the mortgage, 2nd mortgage, and even third mortgage. You can also cancel home equity loans.

There are many other ways to save money. You can negotiate with debtors if you plan to file bankruptcy. They might be willing to lower bills. In some cases, you might actually be able to handle your financial problems without losing nonexempt assets. Also, you may consider filing for Chapter 13 bankruptcy, as that’s the best way to save your home from foreclosure.

The bad news is, because of certain documentation filed with each home purchase, Chapter 7 bankruptcy does not save your home from foreclosure. If you file Chapter 7 bankruptcy in Las Vegas, your home is in danger. If you file Chapter 13 bankruptcy in Las Vegas, you have better odds of saving your home and canceling debts, but that costs more.

Eligibility Problems
Chapter 7 bankruptcy has changed in recent years, as many are no longer able to file it. Many are now filing Chapter 13 bankruptcy, which in essence gives you several months to save home and other property. Check with professional Chapter 7 bankruptcy lawyers to see if you’re eligible.

Major Advantages of Chapter 7 Bankruptcy in Las Vegas
We’ve noted some advantages and disadvantages of Chapter 7 bankruptcy, and pointed out problems with being eligible. It’s still clear Chapter 7 bankruptcy is the most promising route if you simply cannot catch up with bills. It takes a matter of months and you can cancel most of your debts. If you’re low income and your assets are of low value, you can expect to keep most of your possessions and be free of many debts.

The best news, however, may that by hiring a Las Vegas professional bankruptcy you can stop most if not all creditor harassment.

Chapter 7 bankruptcy, a liquidation proceeding designed to give you a fresh start, can help Las Vegas residents in a number of ways. Typically with Las Vegas bankruptcy, you’re choosing between Chapter 7 bankruptcy and Chapter 13 bankruptcy. You may have fallen behind on mortgage payments and risk foreclosure. You may have lost your job and benefits, and have big bills coming in you simply cannot afford on unemployment. Or you may have just made a mistake in your finances.

The answer to Las Vegas residents interested in a second chance is using Chapter 7 bankruptcy to help.

How can you save your home from foreclosure or cancel certain debts? Chapter 7 bankruptcy is a legal way to 1) buy yourself time and 2) save your residence. Let’s go over these in detail.

Save Money with Chapter 7 bankruptcy in Las Vegas

Quite often you can live in your home for free after filing Chapter 7 bankruptcy. It may be only a few months, but often that’s all you need to find some other residence. Also, you can technically cancel some of your mortgage debt, including the mortgage, 2nd mortgage, and even third mortgage. You can also cancel home equity loans.

There are many other ways to save money. You can negotiate with debtors if you plan to file bankruptcy. They might be willing to lower bills. In some cases, you might actually be able to handle your financial problems without losing nonexempt assets. Also, you may consider filing for Chapter 13 bankruptcy, as that’s the best way to save your home from foreclosure.

The bad news is, because of certain documentation filed with each home purchase, Chapter 7 bankruptcy does not save your home from foreclosure. If you file Chapter 7 bankruptcy in Las Vegas, your home is in danger. If you file Chapter 13 bankruptcy in Las Vegas, you have better odds of saving your home and canceling debts, but that costs more.

Eligibility Problems

Chapter 7 bankruptcy has changed in recent years, as many are no longer able to file it. Many are now filing Chapter 13 bankruptcy, which in essence gives you several months to save home and other property. Check with professional Chapter 7 bankruptcy lawyers to see if you’re eligible.

Major Advantages of Chapter 7 Bankruptcy in Las Vegas

We’ve noted some advantages and disadvantages of Chapter 7 bankruptcy, and pointed out problems with being eligible. It’s still clear Chapter 7 bankruptcy is the most promising route if you simply cannot catch up with bills. It takes a matter of months and you can cancel most of your debts. If you’re low income and your assets are of low value, you can expect to keep most of your possessions and be free of many debts.

The best news, however, may that by hiring a Las Vegas professional bankruptcy you can stop most creditor harassment.

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Bankruptcy Helps Stop Phoenix Home Foreclosures

Tuesday, March 16th, 2010

This guide has pleasant surprises for homeowners in Phoenix who fear losing their homes through foreclosure. It’s timely news, as more and more home owners just like you are falling behind with bills. The reasons for filing bankruptcy in locations  like Phoenix aren’t always simple. You may have more than the home foreclosure to worry about, such as unpaid medical bills or car payments. However, the first and biggest step is to save your Phoenix home from foreclosure. The rest will also be helped, namely by filing for Chapter 7 or Chapter 13 bankruptcy in Phoenix.

How Bankruptcy Helps
If you’re behind on mortgage payments, instead of waiting for the lender to foreclose–selling your home–you can file for bankruptcy and get immediate legal help. Chapter 7 bankruptcy and Chapter 13 bankruptcy can either stall the sale of your home until you can work out an arrangement with the  lender, or buy you time and cancel some of the outstanding 2nd and 3rd mortgages.

Cancel outstanding mortgage payments? It’s how Chapter 13 bankruptcy helps. Let’s go over the details.

Chapter 13 Bankruptcy Helps Stop Home Foreclosure
Chapter 13 bankruptcy is usually for those who will do anything to keep their home and buy themselves time to make arrangements. Chapter 7 bankruptcy is still worthwhile, but Chapter 13 bankruptcy is smart for Phoenix home owners who can’t stand the thought of losing their home.

Chapter 13 bankruptcy in Phoenix technically does not cancel any outstanding debts, but buys you several years to pay back the late, outstanding bills. You will need enough money to pay back your initial mortgage payment if you want to do this.

But, if you have 2nd and 3rd mortgages, you can cancel this debt by filing for Chapter 13 bankruptcy. It’s a common process if your 1st mortgage secured the entire value of your home.

Chapter 7 Bankruptcy and Home Foreclosure
Usually, Phoenix residents should consider getting professional counsel before filing for either Chapter 7 or Chapter 13 bankruptcy. Why? You need to decide the fate of all your major property. If you decided you simply can’t catch up with past due payment and you need to cancel debts, buy yourself some time, and move on, Chapter 7 bankruptcy can do just that. You won’t keep your home, but you’ll be allowed to live there for several months before you lose it, giving you time to find new residence.

The Process of Filing for Bankruptcy
As stated, you do need to decide what’s best for you. There are advantages to both Chapter 13 and Chapter 7 bankruptcy filing. A Phoenix bankruptcy attorney can not only help you save your home, but cancel many debts you have, buy you time on  payments, and/or help you plan for the future.

Marijayne

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How to File Chapter 13 Bankruptcy in San Diego

Thursday, March 11th, 2010

The news is bad. You might lose your home through foreclosure, or you lost your job, or a loved one was in the hospital and the bills are piling up.

It doesn’t always work out that way, as each person’s reasons for filing any kind of bankruptcy are rarely the same. There are ways to 1) buy yourself some added time to pay back bills and 2) save your home from foreclosure. It’s file for Chapter 7 in San Diego, right?

That’s a decision this guide is going to help you make, along with how to file for Chapter 13 bankruptcy. If at the end of this post you think Chapter 7 bankruptcy is your only option, it’s time to call a professional bankruptcy attorney in San Diego. If you feel Chapter 13 bankruptcy is best, hiring professional bankruptcy lawyers is just as important.

Choosing Between Chapter 7 and Chapter 13 Bankruptcy in San Diego
This blog goes over these topics a lot, but all you need to know is where you’re at financially. If you face foreclosure of your home and want to keep it, filing for Chapter 13 bankruptcy in San Diego buys you years to pay back debts in installments and keep your home. If you feel you need to be rid of all your debts immediately, that 3-5 years just isn’t enough, filing for Chapter 7 bankruptcy in San Diego may be the best choice.

How  to File for Chapter 13 Bankruptcy
You file a petition with the bankruptcy court in the San Diego area where you reside.

You must file, according to the US Courts: “a schedule of assets and liabilities;  schedule of current income and expenditures;  a schedule of executory contracts and unexpired leases; and a statement of financial affairs.

There is more to it than that, because after you must also file a certificate of credit counseling and a copy of a debt repayment plan you created through credit counseling. That means you need to show the court proof you’re actively working on creating a feasible budget to pay back assets, as no debts are being eliminated.

Next, you need to show evidence of payment from employers if you have any, within 60 days before filing. The last three steps are to show a statement of monthly net income,  note any expected increase in income, and any records you have in Federal or California (or your state) education accounts.

The Next Steps in Filing for Bankruptcy
There are more steps. The problem with filing Chapter 13 bankruptcy by yourself becomes clear here. It can be done and has been done, but hiring professional bankruptcy attorneys in San Diego can save you from making mistakes in documentation and at the hearing.

So you need to follow these steps too.
-Create a list of credits, debt amounts, and nature of their claims
-The source, amount, and frequency of your income
-A list of all your property, such as homes and vehicles
-A detailed list of all your monthly living expenses, from food to rent

Hire Professional Bankruptcy Attorneys in San Diego
Filing Chapter 13 bankruptcy is now more common than ever, though still most debtors try to file Chapter 7 bankruptcy, a liquidation. How to choose between types of bankruptcy, how to file all documentation, and how to handle creditors are all complex tasks. With the right bankruptcy lawyer in the San Diego area, you can focus on the future instead of the past.

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Alternatives to Chapter 7 Bankruptcy in New York

Wednesday, March 10th, 2010

With changes in bankruptcy laws, it’s not always wise nor possible to file Chapter 7 bankruptcy in New York. Filing Chapter 7 bankruptcy is now more difficult to get with new Federal regulations. Many are now told to file under Chapter 13. Chapter 13 bankruptcy is a good alternative to Chapter 7 in many cases.

So what’s the difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy in New York?

-Chapter 7 bankruptcy is a liquidation of debt and assets, while Chapter 13 buys you time
-Chapter 13 bankruptcy can save your home from foreclosure
-With Chapter 13 bankruptcy, you can extend payment schedule and lower payment fees
-With Chapter 7 bankruptcy, certain property is exempt from being repossessed
-Chapter 7 costs $299 to file with the court while Chapter 13 costs $274

That may be speaking more positive of Chapter 13 bankruptcy. The big difference is you can be cleared of debts with Chapter 7 (often preferred), while Chapter 13 bankruptcy allows you more time to pay back debt, typically over a 3-5 year period.

There are alternatives to Chapter 7 bankruptcy in New York beyond just Chapter 13 bankruptcy. Though Chapter 13 is now the second most common, Chapter 11 is wise for individuals actively engaged in business. For example, if you run a corporation, you can avoid liquidation and seek an adjustment of debts with Chapter 11 of the Bankruptcy Code.

Chapter 13 Bankruptcy in New York
You can also seek an adjustment to your debts via Chapter 13 bankruptcy in New York. If you owe money on a home and cannot pay it back immediately because of other circumstances such as medical bills, you can save your home from foreclosure. This is done by giving you the opportunity to catch up with past due payments through a new payment plan. This is good news for New York home owners facing foreclosure, as you can get immediate and extended help by filing with the courts for Chapter 13 bankruptcy.

Other Alternatives to Filing Chapter 7 Bankruptcy
While Chapter 11 bankruptcy in New York is not very common, for people running businesses it can be very beneficial, namely by saving your assets. You should also be open to “out of court” agreements with creditors or debt counseling services. You might be able to pay back debts in installments outside of a bankruptcy hearing–there is no reason you can’t–and many individuals choose this route instead of officially filing. And if the out of court agreement does not work, you still have the right to file for Chapter 7, Chapter 11, or Chapter 13 bankruptcy.

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