Has The Bankruptcy Reform Helped at all?

In bankruptcy, the attorney assigned to the case is responsible for making sure all information provided by their client is accurate. They usually do this before filing any and all paperwork. However, they often miss something and simply take their client’s word for the truth. Once the case is filed, a bankruptcy trustee will go over all information supplied by the client, looking for inaccuracies or reasons to believe fraud may be involved.

The role of the trustee in bankruptcy is to protect creditors are treated fairly and to be sure all non-exempt assets are sold for the highest price. The money raised is then distributed to the creditors in accordance with their claims and the trustee in bankruptcy helps make this happen. They go to creditor meetings and can discharge debt if fraud is found on the creditor’s end.
With a Chapter 13 bankruptcy filing things are different. The trustee's job is more administrative. This is because there are no assets to liquidate. They make sure the court approves the new payment plan. The trustee will often accept payments from the client. They then distribute them to the creditors, according to the court approved payment plan.

Many people use bankruptcy because they need to be relieved from the financial burdens that they are unable to take care of now or in the future. Unfortunately, too many people may have taken advantage of the bankruptcy system, and in May of 2004, the Bankruptcy Legislation Amendment Bill was passed. This bill was designed to stop those that were using the bankruptcy system as a quick way out of paying their taxes, although they were financially able to pay them. There may have been very few people that were taking advantage of the ability to not pay their taxes; however, the ones that are taking advantage have had debts that were a considerable amount of money. Since the bill was unfair to those that were in actual financial debt, there was an amendment in December of 2005.

This amendment allowed for those that truly needed to be relieved of their burdens to conduct a means test, which would evaluate them to see if they were in true need of filing bankruptcy. This includes taking a debt counseling course, in which the filer must pay for themselves. If after completing these requirements you were considered unable to file for the Chapter 7 bankruptcy, you still have the option of filing for Chapter 13 bankruptcy. Filing for Chapter 13 is more difficult, but can be a necessity if you are in desperate need of relief. With these new laws in effect, those that need help can still receive it, while those that are using it for avoidance, can no longer do so.

Filing for bankruptcy can be quite frightening. When filing for bankruptcy there are many rules you must follow exactly in order. If you don't, you won't correctly file your bankruptcy. In addition, you should completely understand each of the separate types of bankruptcy you can file, before your file. If you’ve had no experience with bankruptcy you may find yourself overwhelmed with the tasks of filling out the right paperwork. If your bankruptcy papers are not filed in the proper manner, you can end up with a bigger problem than you started with.
If you want to ensure you are doing everything the right way, you may want to consult with a bankruptcy attorney. The easiest way to contact a good bankruptcy attorney is to get in touch with a bankruptcy firm. A bankruptcy firm is actually a group that employs lawyers who specialize in the process of bankruptcy.

When you're dealing with something as sensitive as filing bankruptcy, you want to be sure you’re doing it right. A bankruptcy firm can help you know what type of bankruptcy you qualify for and the proper steps you need to take to complete the process. In addition, the attorney can help prepare you if you need to go to court and can often help you protect some of your most precious assets (like your home and car). Overall, it is a prime idea to contact a bankruptcy firm before filing for bankruptcy.

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Survive Bankruptcy With The Help Of Good Bankruptcy Lawyers

It is one of those words that can make your stomach drop. It creates images of fortunes squandered, homes lost, and dreams shattered. Bankruptcy affects millions of people every year, but with the help of bankruptcy lawyers it does not have to be a financial death sentence. In fact, bankruptcy lawyers help people survive bankruptcy every day, and with their expert help, individuals and companies can often be back on their financial feet within a few short years.

Individual bankruptcy is initiated one of two ways; either by the debtor or the creditor. In the case of the former, the debtor wishes to escape from oppressive debt and seeks a new start, while in the latter scenario the creditor wishes to recover assets from a creditor who is no longer solvent. In either case, creditors, with the help of bankruptcy lawyers, will usually exercise one of two options; Chapter 7 or Chapter 13 bankruptcy.

With the help of bankruptcy lawyers, individuals can assess their financial situation and pursue the bankruptcy option that affords them the best possible outcome. For some, Chapter 7 might be their only realistic option. Also known as straight bankruptcy, or liquidation, Chapter 7 bankruptcies allow the debtor to keep some property while non-exempt property is sold with all proceeds going toward the creditors. In the process, many other debts are discharged, while some remain – such as child support, taxes, legal fines, and many student loans, to name a few. In many cases the creditors have very few assets that are eligible for liquidation. In those instances, bankruptcy lawyers may suggest Chapter 7 because it will allow the creditor to start over quickly with minimal losses of personal assets.

Some creditors have much to lose – such as a home or automobile - and they would like to avoid losing them. In that case, bankruptcy lawyers may advise their clients to pursue Chapter 13 bankruptcy. Also known as reorganization, Chapter 13 bankruptcy allows a creditor to repay some or all of their debts, usually under more favorable terms such as less interest and waived fees. However, it is more difficult to qualify for Chapter 13 protection because the creditor must have sufficient disposable income to qualify. With the help of bankruptcy lawyers, debtors in Chapter 13 arrangements have three to five years to pay their creditors while enjoying the protection of the bankruptcy court – the creditor cannot make ongoing attempts to collect on the original debts during this time. However, the debtor cannot obtain additional debt during this time, so both parties are restrained by the court.

If you are in serious debt and are facing bankruptcy or foreclosure then you should immediately consult with competent bankruptcy lawyers. The details and qualifications for all forms of bankruptcy – including some not mentioned – are very complex and require expert counsel that only qualified bankruptcy lawyers can provide.

About the Author: For easy to understand, in depth information about bankruptcy lawyers visit our ezGuide 2 <a target="_new" href="Lawyers.">Lawyers.'>http://lawyer.ezguide2.com">Lawyers</a>.

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How Does Your Bankruptcy Affect Home Mortgage Refinancing?

There are a few basic concepts one should know when looking into refinancing a mortgage after a bankruptcy. Most importantly, you need to know the two different types of personal bankruptcy that you can declare. Chapter 7 Bankruptcy, often called “straight bankruptcy”, is an attempt for someone financially overextended to liquidate most of their assets to satisfy creditors, keeping only a few personal assets needed for the basic necessities of life such as an economical car, personal clothing, etc.

In Chapter 13 Bankruptcy, your assets are not liquidated. Instead, you come to an agreement with an appointed trustee where late charges and other penalties are eliminated and you start a payment plan to repay much of the debt owed. This process can take over a year or two, but will allow you to retain belongings (and property). Also, it is looked at more favorably by lenders because you are attempting to repay your debts, not just write them off. Lenders will look at both the date the bankruptcy was filed and when it was discharged.

A Chapter 13 Bankruptcy “buyout” is a refinance loan, taking out a new loan to cover the existing mortgage and some or all of the other debts. This is basically considered a “cash-out” refinance. Most Chapter 13 Bankruptcy refinance loans are limited to roughly 85% of the value of your home.

When refinancing out of a Chapter 13 Bankruptcy, or soon after a Chapter 7 or Chapter 13 Bankruptcy, you will almost certainly be working with a sub-prime or “non-prime” lender. These lenders specialize in helping borrowers with blemished credit histories. Often, borrowers refinancing near the time of a bankruptcy will seek the assistance of a mortgage broker, many of whom have experience with this type of loan. If possible, it is best to wait at least two years after the discharge of your bankruptcy to refinance your mortgage. This will help you to receive a better interest rate. Start now to pay your bills on time and in full. This will help to repair your credit and give you even better chances of a lower rate.

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What is a Chapter 7 Bankruptcy?

Chapter 7 of the Title 11 of the United States Code (Bankruptcy Code) governs the process of liquidation under the bankruptcy laws of the United States. (In contrast, Chapter 11 governs the process of reorganization of a debtor in bankruptcy). Chapter 7 is the most common form of bankruptcy in the United States.

Individuals can file for bankruptcy in a federal court under Chapter 7 ("straight bankruptcy",or liquidation) or Chapter 13 (a "reorganization", or debt adjustment case). (Although individuals can technically file Chapter 11 bankruptcies, those filings are rare.) In a Chapter 7 bankruptcy, the individual is allowed to keep certain exempt property. Some liens, however (such as real estate mortgages and car loans), survive. The value of property which can be claimed as exempt varies from state-to-state. Other assets, if any, are sold (liquidated) by the interim trustee to repay creditors. Many types of unsecured debt are legally discharged by the bankruptcy proceeding, but there are various types of debt that are not discharged in a Chapter 7. Common exceptions to discharge include child support, income taxes less than 3 years old and property taxes, most student loans (unless the debtor prevails in a difficult-to-win adversary proceeding brought to determine the dischargeability of the student loan), and fines and restitution imposed by a court for any crimes committed by the debtor. Spousal support is likewise not covered by a bankruptcy filing.

Bankruptcy discharge stays on the individual's credit report for up to 10 years for most purposes. This may make credit less available and/or terms less favorable, although high debt can have the same effect. That must be balanced against the removal of actual debt from the filer's record by the bankruptcy, which tends to improve creditworthiness. Consumer credit and creditworthiness is a complex subject, however. Future ability to obtain credit is dependent on multiple factors and difficult to predict.

Another aspect to consider is whether the debtor can avoid a challenge by the United States Trustee to his or her Chapter 7 filing as abusive. One factor in considering whether the U.S. Trustee can prevail in a challenge to the debtor's Chapter 7 filing is whether the debtor can otherwise afford to repay some or all of his debts out of disposable income in the five year time frame provided by Chapter 13. If so, then the U.S. Trustee may succeed in preventing the debtor from receiving a discharge under Chapter 7, effectively forcing the debtor into Chapter 13.

It is widely held amongst bankruptcy practitioners that the U.S. Trustee has become much more aggressive in recent times in pursuing (what the U.S. Trustee believes to be) abusive Chapter 7 filings. Through these activities the U.S. Trustee has achieved a regulatory system that Congress and most creditor-friendly commentors have consistently espoused, i.e., a formal means test for Chapter 7. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 has clarified this area of concern by making changes to the U.S. Bankruptcy Code that include, along with many other reforms, language imposing a means test for Chapter 7 cases.

Creditworthiness and the likelihood of receiving a Chapter 7 discharge are only a few of many issues to be considered in determining whether to file bankruptcy. The importance of the effects of bankruptcy on creditworthiness is sometimes overemphasized because by the time most debtors are ready to file for bankruptcy their credit score is already ruined.

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What are the main purposes of Bankruptcy?

Bankruptcy laws serve two main purposes. First, Bankruptcy law gives creditors some payment on their debts if a debtor (the one who owes the debt) can afford to pay them. Second,  Bankruptcy law gives debtors a fresh start, by canceling many of their debts, through an order of the court called a discharge.

There are four types of Bankruptcy available to individuals:

• Chapter 7 (a liquidation-style case for individuals or businesses),
• Chapter 13 (a payment plan or rehabilitation-style case for individuals with a regular source of income),
• Chapter 12 (a payment plan or rehabilitation-style case for family farmers and fishermen), and
• Chapter 11 (a more complex rehabilitation-style case used primarily by business debtors, but sometimes by individuals with substantial debts and asset).

The two most important types of cases for consumers are chapter 7 and chapter 13. Both provide for some possible payments to creditors, a discharge for debtors and supervision by a trustee. Chapter 7 involves surrendering some of your property (at least in theory) in return for a discharge of many of your debts. The trustee sells any non-exempt property and pays your creditors. In chapter 13, you keep your property but must commit to a three- to five-year repayment plan. You then obtain a discharge of most of the debts not paid in the plan.

In both types of Bankruptcy most creditors must stop efforts to collect debts after your case is filed. This protection is called the “automatic stay.” In a chapter 7, this relief is often temporary.

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Understanding Chapter 13 Bankruptcy

Chapter 13 bankruptcy is one type of bankruptcy. There are various types of bankruptcy and understanding each type is important. Chapter 13 is available only in certain situations and only those who are best qualified for this type of bankruptcy should file under it.

The Chapter 13 Bankruptcy

So, who can file for Chapter 13? Well Chapter 13 can be filed by individuals who have a steady and secured source of income.

A Chapter 13 is a repayment plan. Debts are not wiped clean. Instead the individual agrees to a plan in court that established repayment of debts. Creditors also must agree to the plan, which is based on the individual’s income.

Steps in Filing Chapter 13 Bankruptcy

The new bankruptcy laws require you to first seek counseling about your credits. You will then need to file paperwork before the process of Chapter 13 begins.

After that process is done, your income and debts are gone through and a payment plan will be drawn out according to your income. However, both the creditors and you, and most importantly the court have to agree with the plan.

As you can see, this is a lot of work and also time consuming as there are a lot of paperwork to be done and also court hearings to attend. However, the best suggestion I can offer you is that you should have a lawyer who can help you with negotiations with creditors. This may not be easy but trust me, it is worth the trouble. This way, you have nothing to worry about.

It may take up a lot of you time before it gets finalize but you will be on the winning end after all the trouble you went through.

Things to Know About Chapter 13 Bankruptcy

Have you ever wondered why you should file a Chapter 13? It is just a repayment plan, so why don’t you just consolidate your debts instead? Well, the answer is you can get the court’s involvement in the process.

As mentioned above, you should file for Chapter 13 instead of debt consolidation because the court can protect you. Other than that, you will also have more options. The court will ensure that you are able to afford the repayment plan and thus treated like a willing party.

Other than that, another advantage of filing for bankruptcy is that you are protected from creditors when you file for bankruptcy.

Of course, as with bankruptcy in general, it is always best to avoid it if possible. You can start with trying to get creditors to work with you and then only move to bankruptcy if you are feeling threatened with losing assets and court proceedings.

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It Is The Bankruptcy Court That Handles All Matters Relating To Bankruptcy

Article III of the U.S. Constitution establishes the judiciary as one of the three separate as well as distinct branches of the federal government along with the legislative and executive branches. Federal courts are considered the guardians of the Constitution because their rulings help protect the rights as well as liberties as guaranteed by the Constitution. An independent judiciary is fundamental to obtaining fairness as well as justice for all citizens of the United States.

94 Federal Judicial Districts

There are 94 federal judicial districts that have bankruptcy courts that handle all matters relating to bankruptcies. It is not possible to file a bankruptcy case in a state court, and bankruptcy laws help people that cannot pay their creditors get a new start through the liquidation of their assets in order to pay off their debts, or through the creation of a repayment plan.

Bankruptcy courts and laws work together in order to protect troubled businesses as well as helps in providing orderly distribution to business creditors through different means including reorganization or liquidation. The procedures that need to be followed in a bankruptcy court are covered under Title II of the Bankruptcy Code. Most cases that are filed fall under the three main chapters of the Bankruptcy Code and these are Chapters 7, 11 and 13.

The United States bankruptcy court is a federal court that deals with all manner of bankruptcy cases, and bankruptcy judges in each of the 94 federal judicial districts in regular active service constitute a “unit” of the applicable United States district court. Bankruptcy judges that preside over the bankruptcy court cases are appointed for a fourteen year term by the United States court of appeals.

In technical terms, the US district courts are authorized to handle bankruptcy cases, though each such district needs to refer bankruptcy matters to the bankruptcy court. Initially at least, all matters relating to bankruptcy are handled by the bankruptcy court.

However, if circumstances are unusual, the district court can withdraw the reference or take the bankruptcy case away from the bankruptcy court and decide upon the matter itself. Most of the bankruptcy matters are handled by a bankruptcy judge sitting in a bankruptcy court who may pass decisions on these matters which will be final except for appeals to the district judge who may review such decisions.

About the Author: Simon Peters is the owner of On Bankruptcy, it is THE best source for advice on the subject on bankruptcy, nothing to sell, just information . . .

Source: www.isnare.com

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