With a large number of Americans still looking for work, we can expect to see the numbers of those filing for bankruptcy to continue to rise over the next couple years. The hardest part of a bankruptcy filing is the planning. Usually, most Americans use a bankruptcy filing as a last resort for overwhelming debt. Most people that wait till the last minute to file for personal bankruptcy don't have any time to do any kind of planning. It would be much better when people get into financial trouble that they would take the time to consult a bankruptcy lawyer about this situation. In many cases, there might be other alternatives and filing bankruptcy might not be in the cards at this time. Having the knowledge of what to do and even better what not to do prior to filing bankruptcy is well worth the time spent on a consultation. Before deciding to sign up for a payment plan, refinance your house or even worse, borrow money from friends and relatives one should consult a bankruptcy lawyer to avoid making a mistake that has severe consequences.
When people don't plan for filing bankruptcy, they don't realize the landmines they might be stepping on that will blow up during the bankruptcy filing. They are just trying to survive by whatever means. With changes to the bankruptcy code that went into effect back in 2005, a person has to qualify to file Chapter 7 bankruptcy. To pass the means test the person filing for bankruptcy will have to show an income below the median income for their state. Many people in financial trouble run to their pension and borrow money prior to filing bankruptcy, not realizing that this becomes income according to the bankruptcy code. Now, the person who might be unemployed at the time, is now showing a large amount of income in a short period of time and no longer qualifies to file Chapter 7 bankruptcy. This could've been easily resolved by speaking with a bankruptcy lawyer prior to making this faux pas. There is a way around it as the bankruptcy lawyer will just have the debtor delay the filing. They will have to wait a period of time for this sum of money to drop off the radar so their income is low enough to file for bankruptcy. The problem is, when someone stops paying their bills, they are a target by their creditors to file lawsuits before they have a chance to file for personal bankruptcy. If the creditor can get the debtor into court, they can get a judgment against the debtor and begin garnishing their wages. This just creates another roadblock for the bankruptcy lawyer that can be resolved after the bankruptcy is filed with the court.
In a perfect world, the US should teach young adults about financial planning and using a personal bankruptcy filing to give them a basic education on the process. This would give young people an idea of how the bankruptcy process works if they ever ran into financial difficulties. One thing is for sure, if school taught the benefits of filing bankruptcy, the credit industry would spend millions on lobbyists to make it stop.
Sabtu, 23 September 2017
Selasa, 05 September 2017
Free Bankruptcy Forms Available To Debtors Without a Bankruptcy Attorney
As the economy continues to struggle, many Americans are feeling the pressures of being buried under mountains of debt. Living paycheck to paycheck is a reality for many as they try to hold on hoping that things will turn around and get better. All it takes is for one unexpected circumstance to happen such as a sudden illness or major car repair and these individuals finances will be sent spiraling out of control. Filing bankruptcy can offer a solution to individuals such as these.
Making the decision to file bankruptcy is certainly a serious step and the individual needs to take into account all of the possible ramifications that come with a bankruptcy filing. For example, filing bankruptcy will affect the debtor's credit rating and alter their ability to borrow money or obtain credit for a period of time in the future. Rebuilding one's credit is not impossible but it requires time and diligence on the part of the debtor. But if an individual finds themselves in a situation that they are not in control of their finances and in terrible debt then bankruptcy will give them a much needed second chance. Some people are so deep in debt that they have a difficult time even coming up with enough money to pay for a bankruptcy attorney. So what then do these individuals do?
It is important to realize that filing bankruptcy is a person's legal right and they also have a right to represent themselves in a bankruptcy case. The place to begin is right on your own computer. There is a wealth of information on the internet about bankruptcy. The debtor can even download the bankruptcy forms for free online from the US bankruptcy court website. The debtor will need to really do their homework and research the bankruptcy laws for their district as they tend to vary not only from state to state, but from district to district. With the changes to the bankruptcy code back in 2005, filing bankruptcy became more complicated. The bankruptcy petition almost doubled in size and became more difficult to fill out. It has landmines that if it is not filled out properly the case can be dismissed without a discharge. There was an addition of mandatory credit counseling and financial management courses that needed to be completed prior to the discharge. A means test was added to qualify a debtor to file Chapter 7 bankruptcy or they would be forced into a Chapter 13 bankruptcy. Exemption laws for protecting property and assets became more involved. Basically filing for bankruptcy became more convoluted for the average individual wanting to file pro se, or on their own. With that said, it is more complicated, but not impossible to file pro se. If the debtor is confident in their ability to research and navigate the internet for bankruptcy information and then download the free bankruptcy forms, then they will certainly save money. The only costs for filing will be the court filing fees which run around $199 nationwide and the cost of the required bankruptcy courses which are around $30-$50 per course. An individual that is really strapped for cash may apply for a fee waiver from the court and even receive a fee waiver or discount from the credit counseling company.
Making the decision to file bankruptcy is certainly a serious step and the individual needs to take into account all of the possible ramifications that come with a bankruptcy filing. For example, filing bankruptcy will affect the debtor's credit rating and alter their ability to borrow money or obtain credit for a period of time in the future. Rebuilding one's credit is not impossible but it requires time and diligence on the part of the debtor. But if an individual finds themselves in a situation that they are not in control of their finances and in terrible debt then bankruptcy will give them a much needed second chance. Some people are so deep in debt that they have a difficult time even coming up with enough money to pay for a bankruptcy attorney. So what then do these individuals do?
It is important to realize that filing bankruptcy is a person's legal right and they also have a right to represent themselves in a bankruptcy case. The place to begin is right on your own computer. There is a wealth of information on the internet about bankruptcy. The debtor can even download the bankruptcy forms for free online from the US bankruptcy court website. The debtor will need to really do their homework and research the bankruptcy laws for their district as they tend to vary not only from state to state, but from district to district. With the changes to the bankruptcy code back in 2005, filing bankruptcy became more complicated. The bankruptcy petition almost doubled in size and became more difficult to fill out. It has landmines that if it is not filled out properly the case can be dismissed without a discharge. There was an addition of mandatory credit counseling and financial management courses that needed to be completed prior to the discharge. A means test was added to qualify a debtor to file Chapter 7 bankruptcy or they would be forced into a Chapter 13 bankruptcy. Exemption laws for protecting property and assets became more involved. Basically filing for bankruptcy became more convoluted for the average individual wanting to file pro se, or on their own. With that said, it is more complicated, but not impossible to file pro se. If the debtor is confident in their ability to research and navigate the internet for bankruptcy information and then download the free bankruptcy forms, then they will certainly save money. The only costs for filing will be the court filing fees which run around $199 nationwide and the cost of the required bankruptcy courses which are around $30-$50 per course. An individual that is really strapped for cash may apply for a fee waiver from the court and even receive a fee waiver or discount from the credit counseling company.
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