Deciding on the right Chapter under which you can file bankruptcy

April 16, 2012 By Leave a Comment

Bankruptcy is considered to be the last option if you are too deep into debt. This helps you to consolidate debt as you can discharge most of the debts through bankruptcy. There are mainly to Chapters under which you can file bankruptcy. These are the Chapter 7 and Chapter 13 with regards to individuals and their personal finance. But, you need to decide under which chapter you are going to file bankruptcy so as to get out of debt.

Deciding on the Chapter

Before filing bankruptcy itself, you will have to decide if it at all is going to make any sense with regards to your finances. There are various things that are to be considered. One is, if you are at all eligible to file the bankruptcy. Then, you will have to consider your finances and if your debt situation is bad enough for you to file bankruptcy. Bankruptcy though helps you to pay off your debts, it does affect your credit on a negative basis too.

Other than this, you will also be required to decide under which Chapter you are going to file bankruptcy. In case of Chapter 7 bankruptcy, you are supposed to lose almost all of your assets based on the debts that you have. This is because, the bankruptcy trustee uses almost all of your assets and liquidates those so as to pay off your creditor and lenders. In addition, you are also required to pass a Means Test. If you pass this test and only if your income is less than the Median income of the state you are in, you will be able to file bankruptcy under Chapter 7.

On the other hand, Chapter 13 is mainly about repayment of your debts. That is, it is simply a re-organization plan. In this, you are required to make the payments as per the plan designed by the bankruptcy trustee. The re-organization plan is designed based on your financial condition and your debts. In this, you are simply required to make the payments but the assets or property that you have is not liquidated to pay off your creditors.

Based on these differences, you will have to decide under which chapter you are going to file bankruptcy. Then, there are also other things that you will be required to consider. You will have to consider if the bankruptcy filing is going to help you avoid any judgment that is pending against you. You will have to determine if you will be able to retain your home if you file bankruptcy and what are your options for doing the same.

There are also the state laws depending on which you will be required to decide as to which is the better option for you – Chapter 7 or Chapter 11 and if you are at all eligible to file bankruptcy.

So, you can see that there are many things that you will be required to consider and weigh so as to decide if at all you should file bankruptcy. In addition, this is also going to help you decide as to which is the right Chapter under which you will be required to file bankruptcy.

Lawyers – Bad Credit – How can you still buy a house?

May 5, 2012 By Leave a Comment

The current times are not as bad for the housing market as it once was. Houses today are more affordable than what it had been even a few years ago. The main reason for this is the collapse of the housing bubble a few years ago. The prices for houses have declined in almost all parts of the United States and in some states this declining process is still on. Las Vegas and Nevada have especially seen a tremendous fall in their home prices; almost a whopping 70% less than what they were when the housing boom was at its pinnacle. All the factors indicate that buying a house today is far easier than what it was even a few years ago. However, the reverse is often true in today’s economy. The condition of the economy is not very good which has made many people take such decisions which have ended up in leaving black marks on their credit report.

Many a times you have had to take out a loan for any financial needs, and high interest rate on unsecured personal loans might have made you default on the loan and as a result you ended up with bad credit. Having a bad credit restricts you from getting any new loan, which also includes mortgage. Thus in order to take advantage of the great house prices you should find out the tricks of buying a home with bad credit. Don’t lose hope as there are a number of ways in which you can buy a house with bad credit. Here are some ways which you should keep in mind while shopping for your house.

Agree to put down a larger down payment on your house.
Buy a house with owner financing.
Buy a house through the option of leasing option.
Buy a house with lease option with conventional financing.
Have a cosigner with whom you can buy the house.
Take out an FHA mortgage.

All the methods mentioned above helps in decreasing the volatility that you bad credit shows. If the lender finds out that giving you a mortgage loan is safe enough and you won’t default on the loan, then you won’t have any difficulties in getting a mortgage. The above mentioned ways ensure this and thereby helps you in buying a house with bad credit.

Author’s Bio: Marie Lewis is a financial advisor for EasyFinance.com. She brings an unique perspective on personal finance, frugality and all kinds of consumer financial products and services.

Does bankruptcy trump debt management as a debt relief option?

April 27, 2012 By Leave a Comment

Are you credit card accounts being turned down to collection agencies due to missed payments? If answered yes, you need not worry as this is the indication that you have to take some solid steps to delete your fiscal worries once and for all. While there are debt management options that can assist you in repaying your entire credit card debt amount in easy and affordable monthly payments, there are some debtors who still wish to file Chapter 13 bankruptcy in order to give a fresh new start to their life. The debt management firms work in a similar way as the debt consolidation companies and surprisingly, the Chapter 13 bankruptcies are just nothing but a type of debt consolidation program that has a certain legal aspect to it. However, if you’re wondering whether to seek help of the debt management firms or Chapter 13 bankruptcy, here are some points that may make you feel in favor of the latter option.

The automatic stay: The moment you file Chapter 13 bankruptcy, you’ll receive immediate protection by the automatic stay, a bankruptcy Court injunction that will stop all the collection activities against you. This particular automatic stay will have the power to stop garnishments, foreclosures, repossessions, creditor harassments and even license suspensions. On the other hand, when you seek the help of a debt management program, the credit counselor may try to negotiate with the debt collectors to tell them not to call the debtor but there’s no guarantee as to whether these calls will stop.

Bankruptcy includes all kinds of debt: When you opt for debt management, the company will accept specific debts and doesn’t include debts like mortgage arrears or car payments or tax debt. However, all these debts can be included in Chapter 13 bankruptcy and you can repay the entire amount in small and affordable monthly payments and thereby safeguard yourself from all the creditors.

Reduces your debt by a drastic amount: If you opt for Chapter 13 bankruptcy, the bankruptcy attorney will certainly waive off 90% of the debt amount and you’ll be left to repay just 10% of what you owed. This will enable you to pay off your credit cards faster than what you could through a debt management program. Through a debt management program, you can just lower the interest rates and repay the entire amount in small and affordable monthly payments throughout a stipulated period of time.

Debt free within a certain time period: When you file Chapter 13 bankruptcy, you can become debt free within 2-3 years depending on the loan amount and the amount that is forgiven by the court. But in case of a debt management program, you’ll be dragged for a few years to become debt free.

Despite saying all this, when it comes to the effect on your credit score, debt management is certainly better than filing bankruptcy as the latter will stay on your credit report as a blotch for the next 7 years. So, if you don’t want to jeopardize your chances of getting new lines of credit at favorable rates in the near future, you may take help of the debt management firms.

Houston Bankruptcy Attorney

October 11, 2011 By Leave a Comment

Houston Bankruptcy AttorneyEverybody believes that being a Houston bankruptcy attorney is an easy task; you see them on television and read about them in magazines and you presume that what they do is exciting. Yes, it is exciting because of all the things that may happen at courtrooms but you are only seeing the tip of the iceberg for being a bankruptcy attorney entails a lot of responsibilities.

There are so many things that a Houston bankruptcy attorney should execute and that is to gather all the paper work from their clients. The lawyer will have to make sure that he has all documents that are needed to pass to the court so that the case will be quickly accomplished. That’s why it is imperative for the client to have a good relationship with the lawyer so that there will be ease on disclosing vital information regarding the real situation.

The lawyer will also serve as the primary guide of the client in dealing with his case especially if the client is not really used in this kind of situation. It is best that the bankruptcy lawyer and the client talk and discuss every possible option that will help lighten the situation. The bankruptcy attorney will have to follow legal acts to carry out the decision of the client and most of the time the lawyer is the one who files and records the decision of the client so that if ever there will come a time of miscommunication, both of them can go back to their notes to avoid misunderstanding.

Responsibilties of a Houston Bankruptcy Attorney

It is also the responsibility of the bankruptcy lawyer to aid his client by giving professional bankruptcy advice so that the client is well-informed of what is the real situation. He must know that the client, being in a difficult situation cannot think very clearly that’s why he must assist the client to through the whole process.

Also, it is a must that the Houston bankruptcy lawyer is expert in the field of bankruptcy so that he can always orient his client of all the rules and regulations of bankruptcy law and to also help his client in making sound decisions regarding the finances that will surely be of help in the accomplishment of the case. You are also responsible in disclosing all the necessary information regarding your lifestyle and finances so that your lawyer will know everything and be able to come up with the best solution regarding your predicament.

Why Hire A Houston Bankruptcy Attorney?

And lastly, the Houston bankruptcy attorney must be really intent in solving the case by being responsible in the attendance of meetings and hearings. The lawyer will be the one to represent you in court that is why it is imperative that he attend meetings, conferences and dialogues regarding this matter. You must be able to depend and rely on your lawyer to go to these meetings so as to avoid misunderstanding of both parties – creditor and debtor. And if your Houston bankruptcy attorney is really responsible, the court and also the creditor will see your effort in solving your financial problem and that you have no intention of running away.

Bankruptcy Attorney Responsibilities

August 17, 2011 By Leave a Comment

Being an attorney is not an easy task. You are made to believe that attorneys are those types of people that know almost everything and will never fail. But being an attorney implies a lot of responsibilities.

There are things that a bankruptcy attorney should do. Bankruptcy attorneys ought to gather all of the documents from their clients that are required to file the bankruptcy case. The lawyer proceeds to complete and file the indispensable paperwork with the bankruptcy court and then the lawyer will forward all necessary documents verifying the client’s income and assets to the bankruptcy trustee. All these papers are vital to the accomplishment of the case since these are all requirements that must be accomplished. It is also good that the lawyer has been disclosed of all the information in regards to the assets and properties of the client so that the circumstances will be easier to bear.

Bankruptcy Attorneys Can Help

When the client has a crisis, the lawyer provides the client with all of the information needed to make a decision. He will try to balance all things so that the client won’t have any hard time making decisions and that the decision that the client will come up to is the best that he could come up to. The lawyer follows the legal actions to carry out the client’s decision, even if the lawyer doesn’t necessarily believe the decision is in the client’s best interest. Typically, lawyers file and record the client’s decisions on the subject of how the case should be handled to shun any issues of miscommunication, for there may be instances that through uncertainty there will also be misunderstandings.

It is the accountability of the lawyer to assist his client by providing professional legal advice. He has to make the legal proceedings even for his clients since the client is already troubled by the problems that he is facing and having a lawyer that really knows what he is doing is a great relief.

In addition, the lawyer needs to evaluate his client’s assets as per bankruptcy rules and regulations. Cases like this engage maintenance of lots of financial details and a lawyer should be equipped for these conditions.

Attending of meetings and confirmation hearings are part of the lawyer’s profession. In meetings, the lawyer and his client meet with the trustee. The meeting gives the trustee a chance to ask the client about the information provided to the bankruptcy court. Attorneys go to confirmation hearings for their clients to find out if the repayment plan will be approved by the trustee and the devised plan of the lawyer and the client will be realized. Bankruptcy attorneys also go to court if they file any motions on behalf of their clients or if creditors file motions in which one of their clients is an interested party. A dependable lawyer will have to make the time in attending these meetings for these are all important in helping the client in solving the trouble. If the lawyer fails to attend meetings, this will deeply influence the status of the case and instead of helping the client, will only make things worse than what they seem to be.

Bankruptcy Lawyers and Attorneys

August 10, 2011 By Leave a Comment

There are many types of bankruptcy lawyers or attorneys with different specializations or areas of concentration. But the most common type of attorney is those legal professionals who handle cases pertaining financial difficulties of an individual or an establishment. Bankruptcy attorneys are very in demand today for there are persons and establishments that are going [...]

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