Posts Tagged ‘bankruptcy law’

Lessened Debts In Filing For Bankruptcy Florida

November 10th, 2010

People are always obliged to earn money, because it is our only guarantee that we can pay for our basic necessities. Of course, there are different ways in which people deal with employment since all of us were born and honed to possess different traits and skills. Thus, whatever work we go into might be in line with what we do best, or still, otherwise. For freelance workers, they do not have to report to offices often and can just work at their own pace and timing. With the different jobs offered come different rates in the salaries as well. Earning can be easy and manageable for those who are able to make a money making venture out of their passion, because then they would only deal with what they are best at. However, no matter what job people have under their belts, it is still known that it can be a very demanding obligation, way much harder than schooling because for the former, you have to do things right or you risk losing your job and your reputation. Hard work is needed to excel in one’s field. Thus, when one loses a job, it would be a big blow to the finances, that’s why others opt to file for bankruptcy Florida.

Surely, you may not know the word for word definition by heart, but in general, it involves money, debts, and the temporary lack of ability to pay for properties and possessions. And if you are wondering what the common reasons for filing are, then read along.

Well, it could be that a clean slate is wanted so that the debts accumulated by a person could be lessened, thus allowing for a fresh take on things financially. There are just those times when people feel that they have had enough of the last straw, and if only they could start all over again, they would do things right. Probably the said discharge of debts is likened to that feeling of helplessness, and then the seeking of new chances. Meanwhile, it bankruptcy Florida can also stop banks from taking your possessions away from you, which is in the form of your house being foreclosed or your car being repossessed. The loss of employment could also be a reason, because without the job, company benefits will be missed and the family will have a hard time coping up with the expenses. Filing is also done to at least minimize high medical bills once hospitalization happens among the family members.

The said causes are understandable, because sometimes we can never really tell how far our debts will pile up until we see the bill for ourselves. As with unexpected circumstances like losing a job, it would also be a big blow to the finances, and with a big family, everyone has to strive hard to provide the basic necessities of every day. It could be a struggle, and the pillars of the family who are the earners could lose their footing, thus there should be chances available to regain what has been lost.

So if one day in the future, you find yourself in helpless financial messes do not lose hope and instead, strive to work harder to earn better. Filing for bankruptcy Florida may only be a temporary solution, thus once you are granted the privilege to start over again, do things right.

Having trouble sleeping at night? File for bankruptcy florida for your peace of mind. Contact the nearest florida bankruptcy lawyer for more information.


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Chapter 7 Bankruptcy Is Not The Only Chapter

September 20th, 2010

Bankruptcy is the result of being unable to meet ones financial commitments.

Businesses and individuals are entitled to file for bankruptcy under chapter 7, which has the attraction of removing debt from the debtor at discharge.

The main drawback to chapter 7 is that, with a few exceptions, all personal assets are sold to provide funds for creditors in full or part payment. However, if an individual is under crushing levels of debt, losing everything and starting again can be an attractive proposition.

However, chapter 7 bankruptcy is not always an option, as a compulsory 2 stage means test has to be completed to ensure that the individual really does have no way of meeting his or her debts.

The way the means test works is to check and see if the debtor’s income is less than the median income for a same size family in the same state over the previous 5 months. If it is, the debtor can file under chapter 7. If not, a further test is applied, failure of which will result in a chapter 13 filing.

So, what are the alternatives to chapter 7?

First off, think about whether or not you really do need to claim bankruptcy at all? It can look like a simple option, and look very appealing when one is struggling to make ends meet, but the consequences are serious.

Perhaps the first thing an individual should seek to do, is to talk to those to whom they owe significant sums and see if any of these can offer a repayment holiday, or a deferral. Failing this, a simple rescheduling should be sought.

If a creditor is open to a revised payment schedule, then combine this with a debt counseling service to help formally arrange things. What you have then done is basically the same as a chapter 13 bankruptcy, but without the bankruptcy!

Chapter 11 is suited for businesses. If a case under chapter 7 has been dismissed, then that means that the court feels that the company has sufficient income to repay at least part of it’s debts. Chapter 11 allows the company to continue trading, thus generating income, whilst at the same time repaying its creditors by way of an agreed and enforced repayment schedule.

It might be that because of these harsh economic times you might be considering declaring yourself bankrupt. If you would like more free information about declaring yourself bankrupt, visit www.declaringyourselfbankrupt.net.


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Divorce And Bankruptcy: Credit Card Debt

September 4th, 2010

A sad truth that any bankruptcy lawyer can tell you is that filing for bankruptcy and filing for divorce go together like peanut butter and jelly. As an Orlando bankruptcy lawyer, I have represented clients with money problems for many years and can tell you that many people file bankruptcy as a result of a divorce.

The issue of divorce and bankruptcy is so common with my clients, and the two are linked so well, I will be publishing more articles on the matter. However, this article will be devoted to the effect of filing bankruptcy and filing for divorce has on an individual spouse and any credit card debts they may owe.

The most important thing to remember when discussing divorce and credit card debt, is that the only ones party to your divorce are you and your spouse. That is, a third party, like your and your spouse’s creditors, are NOT part of your divorce proceedings and consequently, are not obligated to abide by your marital settlement agreement.

When separating, it is common for people to assign which debts each spouse will be responsible for after the divorce is finalized. These terms are often memorialized in a marital settlement agreement. This agreement legally binds the parities seeking the split-up to the terms included in the agreement. However, each spouse’s creditors rely on the credit card agreement, the car loan, the house loan, etc., that each spouse signed with the creditor at the time the credit was issued. Frankly, creditors could not care less how you decide to divide the debts between the two of you when you part, and the law is on their side.

Bottom lineIf you each were obligated to the creditor before the divorce, no matter how you decide to divide responsibility for the debt amongst yourselves, you are each still liable to the creditor after you part ways.

Hence, when one spouse discharges their liability for the debts by filing bankruptcy, the other non-filing spouse will continue to be responsible for it. In order to remove that responsibility, the non-filing spouse can attempt to settle the debt with the creditors in question, or end up filing bankruptcy themselves.

Bankruptcy and Divorce invite many complex legal issues. Over next weeks and months I will be discussing the common issues faced in Bankruptcy and Divorce in my blog.

For more information about filing bankruptcy, please check out this FREE E-COURSE from your Orlando bankruptcy lawyer. Also published at Divorce And Bankruptcy: Credit Card Debt.


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Know The Law: Bankruptcy

June 30th, 2010

Let’s imagine that Tom Martin owed a local hardware store $875 for tools and supplies. Unfortunately, Tom Martin was overloaded with debt, and he couldn’t pay off the amount he owed to the hardware store. Eventually, Tom decided to declare bankruptcy. He went about finding a good lawyer . And he filed for bankruptcy. After proceeding through the judicial system, the bankruptcy court erased all of Tom’s debts.

Nevertheless, Tom had for a long time been on good terms with the local hardware store, and he felt bad that the store had never been paid. So one day when he was at the hardware store to purchase some nails, Tom talked to the store owner, Jim Matthison. Tom told Jim he was sorry for having to declare bankruptcy, but that he just had far too many debts to pay. However, he told Mr. Matthison: “I never intended for you to get stuck. So I promise to pay you the full $875, just the same as if I had never declared bankruptcy.”

Well as it turned out, Tom’s finances never got any better. So although he promised Jim that he would pay him, Tom actually never paid anything on the debt. So after ten months, Jim, the store owner, employed an attorney himself. He then sued Tom for the entire $875 he had promised to pay. Once the case was heard by the court, guess he won: Tom, the debtor, or Jim, the hardware store owner?

Can the Hardware Store Enforce This Debt?

In most states, Jim, the hardware store owner would prevail. The judge would probably rule that the bankruptcy court barred the enforcement of the debt, but it never erased the moral obligation to pay the debt. Therefore, the judge would rule that the actual debt, coupled with the moral obligation to pay, is sufficient consideration to support the new promise to pay.

In some states, courts have said that in such situations like this, the new promise made by Tom revives the old debt he originally owed to the hardware store. In other words, the moral right continued to exist. It was only the remedy that had been barred by the bankruptcy court.

This is all in accord with an established rule of law that an earlier debt constitutes sufficient legal consideration for a promise made later to pay that debt. This rule of law applies not only to bankruptcy situations, but it also applies to debts that have been barred from enforcement by the statute of limitations. In most jurisdictions, a creditor has four years to file suit on a debt that is overdue. If the person waits ten years, he or she will be barred from collecting on the debt. However, after ten years, if the debtor makes a new pledge to pay off the old debt, then this new pledge is not barred by the statute of limitations.

John Allen Farrer, is a retired lawyer who has written extensively on various legal issues. He recently wrote a helpful report on finding lawyers, the title of which is “How to Find a Good Attorney.” For a limited time, you can receive a free copy of this report by going to his website, Finding the Best Lawyers


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Bankruptcy Law – Chapter 11

May 15th, 2010

Chapter 11 is a plan under the Bankruptcy Code in most cases regarded as appropriate for businesses which include corporations, partnerships or sole proprietors because of the complexity and length of the procedures as well as the fees involved. Also, you will find distinctions in the procedure for the three groups of debtor. As with other bankruptcy types, individuals, or husband and wife, electing chapter 11 bankruptcy will have to undertake credit counseling. Corporations’ personal assets are not included in chapter 11 bankruptcy proceedings other than the stocks from the company, but partnerships could find personal assets involved and sole proprietors can assume both personal and business assets being susceptible to rulings. Cases specified as ’small business’ may proceed at more rapid pace and be susceptible to less official demands than other cases, but becoming a small business debts must be below roughly $2.2 million and also have no creditors’ committee involvement.

Filing under chapter 11 could be at the debtor’s discretion or it may be an involuntary petition filed by creditors. All debtors must produce to the court with full disclosure statements of of every debt and asset (though the extent of the disclosure statement differs dependant upon the type of debtor) and pay fees totally more than $1000 in addition to a repayment or liquidation plan.

Filing a voluntary chapter 11 petition means the debtor stays in charge of the business and is called the ‘debtor in possession’. The debtor in possession has got great responsibilities to handle and move the case along. any delays may very well have negative consequences. A US trustee maintains a close supervisory role over the case on the operation of the business requiring reports on all work related activities which include operating expenses and income. The US trustee is capable of having the case converted under the Bankruptcy code should the debtor in possession be found to negligent in proceeding with confirmation of a plan or else neglect to report properly on the activities of the business. Furthermore the United States Trustee is paid by the debtor in possession. Additional officials may be associated with complicated on-going chapter 11 petitions such as a case trustee or an examiner who works with the trustee. Creditors’ committees could possibly be formed of unsecured creditors to work with the debtor in possession and may also hire other experts with the courts discretion.

Chapter 11 requires that a repayment plan must outline what types of claims need to be sorted out and in what way they will be addressed. The plan with the disclosure statement have got to provide enough information for creditors to determine the viability of the plan. There is a possibility to vote by ballot for all creditors who cannot necessarily anticipate full repayment within the plan. Additionally, creditors are able to provide different plans.

Following filing, you have the normal period where an automatic stay comes in to act pertaining to the actions on most creditors. Nevertheless, creditors have the ability to petition the court for the right to foreclose on property under special circumstances most notably in the case of single asset real estate debtors. This type of action on by way of creditors as well as other possible motions related to stays can be forestalled by the confirmation of a plan or commencement of repayment of interest on the debt owed to the creditor.

Adherence to the requirements of a confirmed plan normally results in discharge of debts accrued before confirmation. But, under chapter 11, only individuals are granted discharge as a result of confirmation of a liquidation plan.

Audus Zinkman is an expert on San Antonio Bankruptcy. He has worked in the legal field for over ten years. His main focuses are on San Antonio Chapter 11, Chapter 7, Chapter 12, Chapter 13, foreclosure defense, and credit card defense. For more information please visit his site, San Antonio Attorney.


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Chapter Seven – Bankruptcy Law

May 6th, 2010

Included in the Bankruptcy Code, chapter 7 is a bankruptcy option accessible to both individuals and businesses on filing a petition and all required declarations associated with the debtor’s assets and income. You’ll find fees amounting to some hundreds of dollars associated with filing the petition. However, payment with installments can be negotiated, enabling the debtor to lengthen payment as long as 180 days. Chapter 7 is usually, though not completely, a voluntary option.

A precursor to filing a bankruptcy petition if you are an individual is credit counseling from a credit counseling agency that’s operating with the proper approval. This counseling must’ve taken place within just 180 days of filing the petition. In the scenario that there is a creation of a plan to deal with the debt, this plan must be produced when submitting the required documentation with the court.

Chapter 7 provides immediate relief for the debtor as a result of putting a stop for a time to any sort of actions on the part of the creditors to recuperate the debt. Also, filing a chapter 7 brings about assets as being classed as exempt and nonexempt. Those categorised as exempt, for instance mortgaged property, are not part of the liquidation process under chapter 7 being secured by other creditors.

As chapter 7 offers the liquidation of assets in accordance with a prescribed hierarchy in order to be sure the suitable return to unsecured creditors, filing a petition presupposes that the debtor will release possesion of estate assets not protected by exemptions, including property. While individuals can anticipate having a few or each of their debts discharged, a measure which lets them resume their lives, this is simply not available for businesses involving partnerships or corporations. As you would expect, existing commitments such as mortgages on property are not able to be discharged.

Under chapter 7, a bankruptcy trustee is to be assigned to address the disposal of nonexempt assets so as to see the claims of creditors. These nonexempt assets could possibly be money or property which is free of liens and capable of being sold.

The bankruptcy trustee sets up a meeting among all the creditors recognized by the debtor that the debtor can be pressent. At this meeting the debtor will likely to be subjected to questioning from both the creditors and the trustee. In the case of the creditors, the questions will more than likely pertain to financial concerns, such as debtor’s assets. The trustee, nevertheless, is going to be concerned to make clear legal matters relevant to creating a full disclosure to the court so as to facilitate the discharge of debts.

If proof can be offered to the court that the debtor has adequate income, the debtor may decide on reaffirmation of a specific debt, before discharge. In this instance, there is an arrangement made between the debtor and creditor to handle the debt that enables the debtor to retain possession on the property and restructure payments.

Also, in the case of individual debtors, assuming there is no failure to disclose information or mislead the court, the majority of debtors can expect to get a discharge of some or all of their debts. Chapter 7 is suitable for dealing with consumer debt.

Audus Zinkman is an expert on San Antonio Bankruptcy. He has worked in the legal field for over ten years. His main focus is on San Antonio Chapter 13, Chapter 7, Chapter 12, Chapter 11, foreclosure defense, and credit card defense.


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Is My Home Loan Invalid

April 22nd, 2010

Home equity is the present marketplace value of your house minus all debts incurred towards it. One big advantage of investing in real estate is that the property price goes up steeply over time. If you’ve got an high-priced homestead and you’ve paid most of the mortgage, you might want to obtain some benefit from the present value in the property by taking one more loan towards it. Mostly people opt for this financial product for repairing their house, or pay other bills like medical expenses, or educational expenses. Even so, a home equity loan creates a lien towards your homestead, and reduces the actual household equity.

Being a Texan brings you some particular advantages in this respect. Traditionally Texas laws are written with sole intention of protecting you and your homestead. Consequently, prior to 1997, there was no existence of home equity loan in Texas. Since, home equity loans are closed kind and of secured nature. “The debt is thus secured against the collateral – from the event that the borrower defaults, the creditor takes possession on the asset employed as collateral and may well sell it to satisfy the debt by regaining the amount originally lent to the borrower.”

On the other hand, finally the Texas estate laws were amended to permit home equity loans with provision with the strongest consumer protections from the United States. To make sure the validity of one’s home loan, you need to understand these provisions:

* Total amount of debt towards your house must not exceed 80% of its fair market value. For example, if your house is worth $70,000 and you have a mortgage of $30,000. You’ll be able to get a home loan of at most $26,000.

* You can consider one home equity loan at a time towards your home.

* You can consider 1 home loan per year.

* Part of your farmstead that is taxed as ‘agricultural land’ or ‘open land’ ought to not be utilize for obtaining a home equity loan.

* You must not take a mortgage from an unlicensed individual, unless he is providing ’seller-financing or related to you within the second degree’.

* Your lender will charge you closing fees, apart from the interest for that loan, but it should not exceed 3% of the principal amount of the loan.

* You are free to use the fund for any lawful purpose.

* The home loan needs to be secured only on your homestead, no other asset must be mortgaged for this objective.

* The loan may perhaps be closed only at the permanent office of a lender, a title business, or an attorney’s office.

* The loan can’t close until 12 days after you have made application for that loan and received a particular notice from the borrower’s rights.

* Before the day prior to closing, you must receive a final itemized disclosure from the actual fees, points, interest, costs, and charges which will be charged.

* After the loan closes, you’ll have three additional days to change your mind and cancel the transaction without having any penalty or charge. The loan proceeds must not be delivered ahead of this.

* The lender is not permitted to conduct a private foreclosure; all home equity loan foreclosures need to be ordered by a court.

A little thought on the above-mentioned provision will reveal that, these laws are written keeping you, the homeowner in mind. Still there are unscrupulous lenders who try to discover the loopholes and trap you into a foreclosure. Thus, it is wise to think and consider advice ahead of receiving a home equity loan. In the event you acquire a home equity loan to pay your credit card bill or other such unsecured loans, you are converting your unsecured loan to a secured loan. House becoming your most important asset, you have to consider utmost care.

The Author Provides Information on San Antonio Real Estate Law in the State of Texas. He is well versed in many areas including foreclosure law, commercial law, real property law, and credit card defense


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What Are The Various Forms Of Bankruptcy?

April 16th, 2010

Have you ever gone haywire in debt? Are your Creditors threatening to deal with your inability to pay up? If your answer is in the affirmative, you will need to get perfectly informed in regards to the topic of bankruptcy and its legal status these days. Ignorance on the law is never an excuse; hence you would like to know what to do when you’re drowning in the ocean of debt.

Indeed, the term “Bankruptcy” is a legal term utilized to describe the inability of an individual to spend his or her creditor. It also refers towards the inability of a firm or organization to pay up its creditors. In most cases, your creditor may well be a bank, a financial firm or even a wealthy person from who you borrowed some funds. Bankruptcy as a legal issue may very well be involuntary when your creditor initiates the legal action against you. On the other hand, it could possibly be voluntary when you are the initiator.

However, to be able to for you to be perfectly informed in regards to the problem of bankruptcy, you need for being at home with the different sorts in particular as it pertains for the US.

Really, from the US, bankruptcy is often a legal concern in the Constitution on the nation. The law governing bankruptcy is effectively spelt out inside the Article 1, Section 8, and Clause 4 in the United States Constitution. Here, the US Congress enacts uniform laws governing bankruptcy in all the States of America. This enacted law by the Congress is normally identified as Bankruptcy Code and it is appropriately located from the Title 11 in the great United States Code. You’ll need for being well informed concerning the several types of bankruptcy stated from the Code.

Within the Bankruptcy Code located at the Title 11 of the US Code, you’ll uncover 6 distinct kinds of bankruptcy. Let’s have a look at them

1. Straight Bankruptcy: that is contained in Chapter 7. It is the fundamental liquidation for people and firms. 2. Municipal bankruptcy: This really is contained in Chapter 9 and it is meant for municipal debts 3. Corporate Bankruptcy: that is contained in Chapter 11 and it is utilized by business debtors as well as other individuals having massive debts as well as other assets 4. Chapter 12 bankruptcy: this can be meant for farmers and fishermen 5. Wage Earner Bankruptcy: it is contained in Chapter 13 and it is meant for normal income earners who may have to repay their debts. 6. Chapter 15 bankruptcy: this is meant for international situations like foreign debts.

Well, the above are the basic sorts of bankruptcy inside the US. Oftentimes, they are simply referred to as “Chapter 7, 9 11, 12, 13 and 15 respectively. Hence, whenever you’re declared bankrupt, it is possible to get a relief from debt by filing a voluntary bankruptcy petition in line with any from the above varieties of bankruptcy that relates to your situation. You also should bear in mind that your creditor may be the one to sue you to court. In this circumstance, it becomes a voluntary bankruptcy.

In all, you don’t have to panic whenever you suddenly uncover yourself or your corporation bankrupt. You may need to get the services of an attorney to support you out especially in filing the suitable bankruptcy sort for your circumstance. Being bankrupt is by no means a crime. It is a situation that could be properly handled once you go about it the legal way.

Joe Willis is an expert on San Antonio Bankruptcy Law. He has worked in the legal field for over ten years. His main focuses are on San Antonio Chapter 13, Chapter 7, Chapter 12, Chapter 11, foreclosure defense, and credit card defense. For more information please visit his site, San Antonio Attorney.


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Bankruptcy Law Attorneys : Do You Need One?

November 7th, 2009

Lawyers who specialize in bankruptcy law are called bankruptcy law attorneys. They understand what is like to be in debt, and what it takes to erase this debt from a credit report.

It has become harder to file for bankruptcy in recent years as the bankruptcy laws have been changed; effectively the regulations have been tightened. These changes were made as part of an effort to deter people from spending frivolously and taking on debt that they could never realistically pay back. However, it is still quite possible to file for bankruptcy.

Personal bankruptcy comes in two main types. Each of these has a unique process to follow in order to file for bankruptcy under it. When gathering all your debt for filing purposes, make sure to be thorough and include everything that qualifies. Should you accidentally miss out some of your debts whilst filing for bankruptcy then, if your bankruptcy is approved, you will still be liable for those debts which you forgot about.

When do I need bankruptcy law attorneys? If you have decided that you should file for bankruptcy, the first thing you need to do is talk to a lawyer. The bankruptcy law attorneys will be able to help you determine if you qualify to file. They will explain what your options are in relation to the different kinds of bankruptcy. This initial meeting, or even the first few meetings, should be free. Therefore, you do not have to worry about wasting money on a lawyer that you will not end up using.

If you do qualify to file for bankruptcy, you will work together with the attorney to gather all the necessary documentation to prove the debts and their validity, along with your income and justification for inability to pay. When your documentation is in order, your attorney will accompany you to court so that you can present your case in front of a judge.

How to find bankruptcy law attorneys? There are plenty of bankruptcy law attorneys out there offering their services; in fact, so many that it can seem overwhelming . Recommendations from family and friends is the best place to start. If they personally have not dealt with any, they may know someone who has and who can offer a recommendation. Should that line of inquiry not prove to be fruitful, then next try looking through the local phone directory. There are also several different online directories where attorneys list themselves to make it easier for you to find them.

Do you need to find bankruptcy law attorneys? Look no further than www.miamilawyersandattorneys.com. A premier source for legal help in the Miami area. This website is spearheaded by Julio Martinez, the man behind well known business networking directories.


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