Will Filing Bankruptcy Ruin My Credit?

Many people considering filing bankruptcy ask “Will Bankruptcy Ruin My Credit?”. Myths surrounding bankruptcy and credit reports fly around the internet faster than the latest celebrity gossip. What are the real ramifications to your credit if you file bankruptcy? What will bankruptcy do to your credit?
When you file bankruptcy, the bankruptcy filing is reported to your credit report. The credit report agencies list a bankruptcy filing on your credit report for up to 10 years. Why?
Your credit report is supposed to be an accurate depiction of your credit history and filing bankruptcy impacts your credit in many ways, surprisingly, many of them positive.
Many people considering filing bankruptcy think a bankruptcy will stay on their credit report for up to seven years. In fact, bankruptcy can stay on your credit report for up to 10 years. Where do people get the 7 year time period? Under the old bankruptcy law, a debtor could not file two successive chapter 7 bankruptcy in a 7 year period, this is probably where people came up with the 7 year time period.
The actual effects of bankruptcy on your credit may be much shorter than the 10 year time period. Many people are shocked to find credit card offers flooding their mailbox shortly after they file bankruptcy. Why would someone extend credit to a debtor who has filed bankruptcy? As Marlon Brando once said in the Godfather “It’s business.”
Creditors do not make money if they don’t lend money, it’s that simple. Savvy creditors know that once a debtor files a chapter 7 bankruptcy, they are unable to file another chapter 7 bankruptcy for 8 more years (under the new bankruptcy law). If a debtor decides to file a chapter 13 bankruptcy, chances are good the creditor will be paid back through the court ordered repayment plan.
Peter Jacoby writes for the bankruptcy articles for the Legal Help Online network.

Why You Need a Bankruptcy Attorney and How to Choose One

Bankruptcy is a specialized section of the law. It is a legal process involving issues ranging from simple to the complex. With the changes to the bankruptcy law, it may be more difficult to file for one. If you are considering bankruptcy, it would be wise to hire a bankruptcy attorney who can guide you through the process.

When you hire a bankruptcy attorney, you are not just hiring someone to prepare and file your papers. More importantly, a bankruptcy attorney provides you with advice on legal issues and makes sure your rights are protected.

A bankruptcy attorney will:

* Educate you on bankruptcy laws, your rights and responsibilities including your options and the consequences of bankruptcy.
* Assess your financial situation and help you decide the best option to take.
* Walk you through every step of bankruptcy filing and all the new regulations.
* Represent you in court.
* Deal with your creditors.

Here are some important things to consider when interviewing a prospective bankruptcy attorney:

* Fees - Ask if the bankruptcy attorney will charge you a fixed fee and be certain as to what services are covered in that fee. Find out if there are any additional fees that you have to pay. The average fee of a bankruptcy attorney is around $800 to $1000.00.
The cost is just one of the things to consider but should never be the deciding factor in choosing a bankruptcy attorney.

* Expertise - Look for someone who is experienced in bankruptcy cases and is who is up to date and familiar with all bankruptcy procedures. Find out how long the bankruptcy attorney has been in practice and how many cases similar to yours has he handled.

* Service - Will the bankruptcy attorney assist you in every step of the process? Will he go with you at court meetings? Will you be working with him mostly or with a legal assistant?

* Communication - In choosing a bankruptcy attorney, go with someone you can speak to with ease. Communication is very critical so you have to be comfortable in asking your bankruptcy attorney questions. Study how he responds to you and if he makes an effort to make sure you understand everything.

Bankruptcy laws differ in each state so be sure to find a qualified bankruptcy attorney in your area. Once you have made your selection, be sure that all agreements are in writing. Read all documents carefully. Be honest with your lawyer and do not withhold any information that is relevant to your case. Be involved. It is your case and your life. Your bankruptcy attorney is there to assist you but you should play the central role.

Dean Shainin offers online Bankruptcy and debt advice. For more information, articles, current news, tools and valuable resources on bankruptcy and debt solutions, visit this site: Bankruptcy Chapter 7

What You Need to Know About the New Bankruptcy Laws

While no one likes to think about the subject of bankruptcy, the fact is that more and more people these days are finding themselves contemplating filing bankruptcy. It is not hard to understand why bankruptcy filings are on the rise. The levels of debt are rising faster than are incomes, and more and more people are finding themselves at a loss and wondering what to do.

While bankruptcy can seem like the best way to get off to a clean start, it is important to thoroughly consider all other options before taking the serious step of filing bankruptcy. For one thing, a bankruptcy filing will follow you for years, and it may be difficult for those who have filed bankruptcy to obtain loans, lines of credit or mortgages until the bankruptcy is off their record.

Another reason to seriously consider alternatives to bankruptcy is the fact that the bankruptcy laws have recently changed. The bankruptcy filing system, and the rules associated with filing bankruptcy, have recently undergone a total overhaul, and this means that many debtors will be required to pay back a larger percentage of what they owe when filing bankruptcy.

The rules associated with bankruptcy are largely determined by the annual income of the bankruptcy filer. Those debtors whose incomes are higher than the average for their state may find themselves required to pay back more of the money they owe in a bankruptcy filing, so it is important for those in such a situation to consult with a qualified bankruptcy attorney before making a move.

Of course for many people filing bankruptcy is unavoidable, and for many people this last resort is truly a fresh start and a new lease on life. The key is to thoroughly research the bankruptcy laws for your state, and to thoroughly understand the rules that may apply to your situation. The bankruptcy laws vary quite a bit from state to state. In some states bankruptcy filers can keep a great deal of personal property and real estate, while in other states they are entitled to keep next to nothing. It is important to know where you stand before filing bankruptcy.

The purpose of these new bankruptcy laws, of course, is to cut down on past abuses of the system, and there is no doubt that these abuses have occurred from time to time. For honest people in debt, however, these laws may have some serious impacts. It is important for every consumer to become educated in just what these law changes will ultimately mean.

For more information on bankruptcy and bankruptcy law visit http://www.bankruptcyproblems.com

Weigh The Pros And Cons Before Declaring Bankruptcy

Bankruptcy occurs when a process is initiated whereby a debtor obtains court ordered relief from having to pay off his or her debts. It can be of great use in certain cases, but is not advisable for use by everyone that faces financial difficulties. In fact, there is no easy and quick answer to the question of whether to declare bankruptcy or not. It needs discussing with a credit counselor or a bankruptcy attorney who is best able to evaluate the costs as well as benefits of bankruptcy in a person’s individual financial situation.

The Type of Debt Can Influence the Ultimate Decision

Before one declares bankruptcy, the type of debt owed should be taken into consideration as it plays a significant role as do other factors that can influence the decision of whether to declare bankruptcy or not. There are certain initial considerations that can affect the final decision as well as the form of bankruptcy that a person chooses.

Some important initial considerations that can affect the decision whether to declare bankruptcy or not include whether the debts are dischargeable or not in bankruptcy, whether to keep part or all of the debt, relative costs as well as benefits of bankruptcy as also the financial future following bankruptcy. Also, one need to consider what effect declaring bankruptcy can have on one’s employment as well as prospective employment, and how credit records will affect one’s ability to rent or purchase a residence.

Sometimes, filing for bankruptcy may not provide relief and it would require advice from a lawyer or credit counselor to see whether or not one qualifies for discharge. Also, one may not want all of the debts to be resolved through bankruptcy, and if one regards certain personal items (such as cars) to be indispensable, choosing an option other than bankruptcy would be more advisable.

Declaring bankruptcy may not just wipe away everything from the slate and give a person the right to start all over again with a clean sheet. Debts need to be paid at least in part and one can also run the risk of having some personal property used to satisfy debt. Also, bankruptcy gets to be placed on one’s credit record and may remain so for seven to ten years.

All said and done, before one declares bankruptcy, one should weight the pros and cons as well as decide on which form of bankruptcy to choose. However, because of the nature of personal bankruptcy, many bankruptcy lawyers will offer their services on a voluntary basis, though for simple bankruptcies, a fixed fee may be charged for the entire case.

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 . . .

The Role of Bankruptcy Attorneys

When one is faced with such a serious financial problem that he or she is considering the option to file for bankruptcy, the smartest and safest thing to do would be to let the professionals guide him through the rough waters.?And that is where the role of bankruptcy attorneys comes in.

Bankruptcy allows individuals or businesses who are in deep debt - they owe more than they’re able to pay… to either work out a plan to repay the money over time or completely eliminate most of the bills. The bankruptcy attorneys or bankruptcy counsels are the most specialized, thoroughly educated persons to handle and deal with the legal sides of bankruptcy.

Bankruptcy attorneys are best qualified lawyers to assist those people filing for bankruptcy. Their keen services are sought by people filing for bankruptcy.

The two most common consumer bankruptcies are Chapter 7 and Chapter 13 bankruptcy.

Bankruptcy attorneys handle these types of bankruptcies extensively so a person can be sure that he or she is getting accurate legal advice when he or she files for bankruptcy. These lawyers know the complicated laws of bankruptcy and make the law simple so that the clients would understand what they are entering into.

The following are the most common roles of bankruptcy attorneys:
Bankruptcy attorneys will fight to protect the rights and property of the person filing for bankruptcy. Bankruptcy attorneys fight the aggressive and annoying creditors for their clients. They can help their clients keep their homes, vehicles and other properties.

A good and effective bankruptcy attorney will be committed to getting one’s debt relief and providing the client with valuable information, services and advice to get him into a better financial future. It is indeed essential that a person who will file for bankruptcy must choose his or her bankruptcy attorney wisely and sensibly, because it is a common knowledge that a client is bound by the mistakes and negligence of his counsel.

One of the helpful sources for finding bankruptcy attorneys is the Yellow Pages and the Internet. Both have a vast amount of information and it’s easy to find one because attorneys are usually categorized by their field of specialization.

Another way to go about finding a qualified bankruptcy attorney is from referral by those who are more familiar with the field, meaning to say their fellow lawyers.

Furthermore, a person looking for a good and competent bankruptcy attorney could ask for referrals from relatives and common friends who have undergone the same situation. In this manner he or she could also inquire onto the professional standing of the lawyer.

Above all, one who is considering hiring a bankruptcy attorney should not be hasty in his or her decision. He must consider if the lawyer makes him comfortable and is considerate about his problem.

Dean Shainin offers online Bankruptcy and debt advice. For more information, articles, current news, tools and valuable resources on bankruptcy and debt solutions, visit this site: Bankruptcy Chapter 7

The Myths and Facts about Personal Bankruptcy

Personal bankruptcy is a very undesirable situation. Often caused by sudden changes in your financial situation due to medical emergencies, unemployment, excessive debt or divorce, filing for personal bankruptcy should be considered as a responsible step towards regaining financial freedom. If you are considering filing for personal bankruptcy, here are some of the myths and facts about it.

Myth #1: You can not file for Personal Bankruptcy.
Contrary to this myth, changes made by the US Congress in 2005 allow any debtor to file for personal bankruptcy. Bankruptcy is also governed by state laws. If you file bankruptcy in Arizona, Arizona bankruptcy lawyers and Phoenix bankruptcy lawyers can help you determine whether you qualify for a Chapter 7 (liquidation of assets) or Chapter 13 (re-organization) bankruptcy.

Myth#2: Filing for Personal Bankruptcy is embarrassing.
If you do not file for bankruptcy, it will actually be even more embarrassing to be hounded by your creditors. Taking charge of your financial situation and owing up to your responsibilities is actually admirable and should be something to be proud of.

Myth#3: You will always have a bad credit score.
If you must know, the completion of personal bankruptcy proceedings will clear all previous credit record allowing you to begin with a new and clean slate. Many Phoenix bankruptcy lawyers and Arizona bankruptcy lawyers can guarantee this based on their extensive experience.

Myth#4: You can only file for personal bankruptcy once in your lifetime.
If you filed for a Chapter 7 bankruptcy, you will need to wait a period of 8 years before you can file for the next Chapter 7 bankruptcy. On the other hand, you can file for a Chapter 13 bankruptcy as often as your situation requires.

Myth#5: Personal bankruptcy means losing everything you have.
On the contrary, bankruptcy is designed to protect a debtor from losing all assets and at the same time find a way for all the debt to be settled. Phoenix bankruptcy lawyers and Arizona bankruptcy lawyers can provide you with the right information so that you will not end up losing any of your precious belongings.

Myth#6: Filing for personal bankruptcy is hard and impossible.
Anyone can file a personal bankruptcy. You will have no difficulties at all. If you want, you can hire Phoenix bankruptcy lawyers and Arizona bankruptcy lawyers to help you every step of the way.

Personal bankruptcy is a serious but effective solution to your financial problems. Before you file for one, make sure that you have explored all available bankruptcy alternatives.

Natalie Aranda is a freelance writer. She writes about laws and family.

The Different Types Of Bankruptcy

The laws regarding bankruptcy have changed recently, but there are still options available to you if your debt has grown out of control and you have found yourself unable to repay them. Bankruptcy laws give debtors a way to divide their assets among creditors and completely eliminate some debts after the assets have been distributed.

Due to the recent changes, you may have to undergo credit counseling prior to filing bankruptcy, but as a debtor you are entitled to file bankruptcy as a way to reorganize or eliminate your debts.

People wanting to completely eliminate all outstanding debts generally use Chapter 7 bankruptcies. Business can also file Chapter 7 if they plan to liquidate all assets and close permanently. Under a Chapter 7 bankruptcy, an individual may keep certain property such as a home, automobile, tools of trade, and various other properties.

Some property however, may be lost during the bankruptcy proceedings. A trustee will control the debtor’s assets during the bankruptcy process and those assets will be divided among creditors as the trustee sees fit. Upon discharge of the bankruptcy, the control of any remaining property is returned to the debtor and all outstanding debts that have not been reaffirmed will be gone.

Chapter 13 bankruptcy is for those who wish to pay all their outstanding debts but have found themselves unable to do so. Chapter 13 allows individuals to reorganize debts and structure payments differently so that the debtor can afford to make payments over time.

In the case of a business wanting to reorganize, Chapter 11 bankruptcy is the appropriate choice. Filing bankruptcy is a way out of debt for many people and businesses. Consult with a professional to make sure that bankruptcy would be the best choice for you before you make any final decisions.

Ken Austin is the webmaster at http://bankruptcy.creditreliefonline.com/ . To learn more about different types of bankruptcy and bankruptcy options, please visit the bankruptcy resource guide

The Bankruptcy Decision / Free Bankruptcy Kit

There are two kinds of individual bankruptcy: Chapter 7 and Chapter 13. Chapter 7 bankruptcy, named for the chapter number in the bankruptcy code, requires a full liquidation of all debts and cancels all no-exempt debts. Chapter 13 bankruptcy is essentially a court-mandated payment plan that sets up affordable monthly payments to your creditors,
The decision to declare bankruptcy is not an easy one. Unfortunately, many bankruptcy attorneys recommend bankruptcy to just about anyone they consult with. All too often frightened consumers are advised to declare bankruptcy just to avoid a few debts. This is a mistake. Bankruptcy should truly be a last resort as the legal system meant it to be. A bankruptcy appears on your credit for ten years, and although lending criteria are slowly changing, many lenders will not even consider an applicant who has had a bankruptcy. What’s more, a Chapter 7 bankruptcy can cost you most of your property. Before making a decision to declare bankruptcy, estimate how bad your situation really is. On a piece of paper, make a list of all your assets and the approximate value they could be sold for. On the other side, add up all of your debts. If the debts exceed the assets by a large percentage, you may wish to consider bankruptcy. On the other hand, if it seems that your situation may improve (you may get a new job or a second income), or if your assets are of greater value or close in value to your debts, a different approach may be appropriate.
Need To File For Bankruptcy?
If you need to file for chapter 7, 11, or 13, than use my free bankruptcy forms and free bankruptcy instructions download. Do it yourself and save $1200.00.
Free Bankruptcy Instructions and Bankruptcy Forms for chapter 7, 11 and 13 at: http://www.creditrepairinformationservice.com
None

Taking The Plunge Into Bankruptcy

Bankruptcy is one of the most difficult things a person has to do. The decision to file bankruptcy is a hard one. Is it moral to wipe your slate clean through bankruptcy? Is there any way for you to avoid bankruptcy? While everyone has their own opinion on bankruptcy, bankruptcy is often the only option some people and families have. So, what do you do when you are in the midst of being bankrupt? What are your options at this bankruptcy point?

Many people who are considering bankruptcy have already tried and failed at consolidations, loans, and other methods of paying off their debt. Bankruptcy seems like the only option. Most of those who need to file bankruptcy can’t even afford to pay off the minimum balances on their credit cards, home payments and even car payments. Whatever has gotten them to this place of being bankrupt doesn’t even matter. The fight to get out of debt is what leads them to bankruptcy court.

For those who know that bankruptcy is their only answer, they should seek out a bankruptcy attorney to help them with their bankruptcy case. Laws in each state governing bankruptcy are different. Each state has its own bankruptcy requirements. And, bankruptcy laws are often changing. It is important to find a bankruptcy attorney to help you find the way out of your bankrupt situation. While in most cases it is a simple matter of showing proof of income and debt, others bankruptcy cases involve the loss of possessions and goods as well. There is no easy way to clear bankruptcy from your life either. On your credit report, bankruptcy can stay there for up to ten years. You can not outlive your bankruptcy claims quickly. Being bankrupt and filing bankruptcy are decisions that will affect your entire life. Make decisions about bankruptcy with a bankruptcy lawyer. A good informational resource on bankruptcy is www.thesmartattorneys.com.

S A Baker is staff attorney at http://www.thesmartattorneys.com

Simple Steps for Filing Bankruptcy and Getting Fast Debt Relief

If you recently experienced major financial problems, it might be a good idea to consider filing for bankruptcy. If you are seriously considering filing for personal bankruptcy, then you should at least know what the steps are for filing personal bankruptcy and getting fast relief from your financial troubles.

The first thing you have to do is to organize all your personal financial information. They would include all your secured and unsecured debts, deeds to your real estate properties, tax returns, car titles and other documents that might be relevant to your finances. For more convenience, you can get your full credit report.

After making sure you have all the important financial documents with you, you will have to complete personal bankruptcy forms. The forms will actually describe your present financial situation and most recent transactions. At this point, you can hire Arizona bankruptcy lawyers or Phoenix bankruptcy lawyers to make sure you answered each question on the form correctly and decide on which type of personal bankruptcy to file, a Chapter 7 bankruptcy or Chapter 13 bankruptcy.

A Chapter 7 bankruptcy will leave you with no assets but all your debt will be wiped out. On the other hand, if you file for a Chapter 13 bankruptcy, you get to keep all your exempted assets and pay your creditors within a period of 3 to 5 years under the supervision of the bankruptcy court.

If you want to file for a Chapter 13 bankruptcy, you will have to submit a repayment plan proposal together with your petition. You will have to pay a filing fee: $200 for a Chapter 7 bankruptcy and $185 for a Chapter 13 bankruptcy. Once the personal bankruptcy petition is filed, all your creditors are prohibited from contacting you and staking claims to your assets. One month after, you and your Arizona bankruptcy lawyers or Phoenix Arizona bankruptcy lawyers will be summoned for a meeting with your creditors to negotiate and answer questions. A compromise should be reached and if not, the bankruptcy judge will likely to mediate. If an agreement is reached, you should expect a notice from the bankruptcy court after four to six months, discharging the personal bankruptcy.

Completion of a personal bankruptcy will give you a chance to begin with a clean slate. You can start re-building your life, making sure that you have learned from such an experience.

Natalie Aranda is a freelance writer.She writes and blogs

Next Page »