Bankruptcy

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Minnesota Deficiency Judgements Due To Mortgage Defaults Appear To Be Increasing!! Be Careful!

I recently read an article about the banks pursuing judgements after a short sale or foreclosure. The Minnesota home ownership center is FANTASTIC. They have lots of great information. Here is the link to their article:
Minnesota Home Ownership Center: Sued – After A Foreclosure

Open Source Documents-Unbelievable Resources-Find YOUR topic of Interest

If you’ve never visited http://www.Archive.org, you are missing a wonderful site.  From this site, you will find many resources that are out of copyright and you can download and use them as you wish.  You will find all the classics and some fun things as well.  Just for fun, I have the download of a book called “Little Gardens” which is a book about setting up a garden on a city lot.  This is just one of the MANY fun things you’ll find.  You can download and watch old music, movies, and cartoons as well.  Plan to spend some time on the site should you decide to visit, as it is very cool.  Click here to download the book Little Gardens

Mortgage Underwriting guidelines For Bankruptcy

VA and FHA tends to be much more lenient on approving a loan after a bankruptcy.  In fact, with FHA we can get you a new loan or refinance your existing loan if you have a chapter 13 bankruptcy and have had on time payments for the past 12 months.  VA generally requires 2 years from the discharge date.  Conventional loans (Fannies Mae & Freddie Mac) tend to require the longest time line from a bankruptcy-usually 3-7 years.  It all depends if you have a chapter 7 or a chapter 13 bankruptcy.  You can view the PDF of the Fannie Mae rules to see how they are currently underwriting when someone has had a foreclosure.

FannieBankruptcyFC.pdf

How To Recover From Bankruptcy In Half The Time

By Alexander Wennstrom

If you should pose the above-mentioned question to a bankruptcy law expert or attorney bankruptcy law professional, the answers might surprise you. Mostly those who have not been successful to fend off, stave or avoid bankruptcy, are looking for quick fixes. Once they realize that the blemish will be affecting their credit rating, ability to access financing, loans and other financial necessities like a check-book, savings account, bank loans, car loans, mortgages etc. they are more motivated than ever to turn a new leave, recover from this blemish in half the time, making every moment of bankruptcy recovery count, matter and making a difference, having positive impact.

Credit counseling services and debt consolidators all tote and advocate doing everything in your power to boost your credit rating, live some good habits, avoid errors and ills from before, returning to your spending and lending, financial administration, regardless of the personal bankruptcy, chapter 7 bankruptcy or business bankruptcy filing.

Bankruptcy attorney California practitioner shingles, business cards and adverts, online websites and even mega-sites, all tote and advocate very comprehensive bankruptcy services for those in desperate search of answers. Many focus on what to do every step of the way, planning, preparing, filing and even optimizing recovery strategies, phases and solutions.

Advice and input on and for home equity loan bankruptcy type instruments, remedies and hopes. Tips for securing a bankruptcy loan, filling out an application, amendment, appendices for the required bankruptcy form and documentation, for formally and legally filing bankruptcy, effectively starting the process (that could sometimes take as long as a year to wrap up) all get attention as does what to do and what not to do after filing, discharge etc. as the bankrupt regain their footing and try to claim and re-establish some freedoms, rights and privileges of lending, borrowing, access, rates etc.

Florida bankruptcy experts and markets have expanded in recent downturns in the real estate market, with increased in foreclosures. Many a Florida bankruptcy lawyer and even bankruptcy Los Angeles practitioners alike, are seeing more and more after bankruptcy challenges and recovery issues, with all this market-driven and sparked activity.

Securing a bankruptcy car loan or getting your hands on the required cash or choice, market-competitive after bankruptcy car loan rate, terms and stipulations, might prove a little more than challenging. It is hard to find those institutions willing to deal and do business with what most would consider to be a credit risk. Even something as standard as a car loan after bankruptcy, can prove to be almost impossible to get, unless you do some creative financing or are willing to pay higher rates.

The more you read this enticing title, (phrased purposely as a how to type question), invitation to the masses, suffering in the aftermath of their bankruptcy filing and recovery stages, the more you hope that there is really a way to actually do what it says!

Putting it into practice unearths numerous ways that this could be more like just a sounds-like-it-might-be-possible type teaser or hyped promise that no-one could really successfully live up to ore deliver on. Yet, there is some light at the end of the tunnel and some hope!

Bankruptcy recovery in half the time, sounds too good to be true, almost. Mockingly hollow, just empty words, not feasible, possible, realistic or legal (?). What are your thoughts? Do you think it possible? How would you go about it? Are there ways to do it effectively?

Well, it is fair to respond to this controversial statement and claim, depending on how you read and interpret it of course, with a lot of skepticism, questions and doubts. Take a closer look at what we are dealing with here, though. There are mandatory aspects of the process to take into consideration. Certain aspects of the process simply take as long as it takes. The credit reports will have this entry as part of the public records, as per law and court ruling for period of 7-10 years for example.

Recovery, how to RECOVER from bankruptcy – what do you understand that term to mean?

What is bankruptcy exactly ? What is the nature, different types of filings, implications and durations of each? How are they similar? How do they differ? How do you deal with each of them in order to facilitate and expedite the recovery phase and time-frame?

How long does it take normally or typically for credit consolidation, repair, bankruptcy recovery?

Half the time means what exactly? What is the typical recovery time frame for these types of filings (both Chapter 7 and Chapter 13, personal, business etc.)

What is your measure of creditworthiness and how can you improve it?

These are the real questions and eventually even answers that can be inferred and turned into a set of practical tips and how to’s. The secret here is to ask the right type of questions. Educate and empower yourself about how credit reporting systems work for example and how to make them count in your favor, despite a recorded bankruptcy filing entry.

Records of timely repayment will also reflect well on you – you can increase your credit score after bankruptcy – opening a checking and savings account at the local bank

Most will tell you 7-10 years that you will have to wait and live with the one mistake and aftermath of bad judgment, worsening debt/credit and declared bankruptcy on your credit reports and negatively impacted financial standing, reputation, with little or no recourse of action or retribution other than letting time pass and keeping your nose clean. That simply is not entirely the whole picture or the only truth, path and remedy.

The encouraging words from any knowledgeable bankruptcy attorney are that you can finally do something pro-active about improving your credit scores, if you will and want to.

Utilizing bankruptcy recovery and credit repair strategies that work, can save you precious time and standing, in record and no time flat! Taking the first step sooner rather than later, with immediacy and urgency is extremely important. It shows that you are proactive and serious about your finances and getting your credit back, despite for example having a chapter 7 or 13 bankruptcy on your record.

Bankruptcy does not have to be a doomsday, inevitability type death sentence. It all depends on what you understand that recovery to mean specifically. If you are trying to get your credit and standing back like what you had prior to your filing, yes, that will take time, effort and some creative doing. BUT, if you are working towards merely again getting approved for loans, having credit and credit cards at your disposal, despite declaring personal bankruptcy, then you are ready to do so quickly, even in under eight to ten months if you set your mind to it.

Negotiating for better interest rates and terms, even for non-filers of bankruptcy, can be quite possible, with a little know how, insider information, processes, protocol and maybe even some representation, where you cannot do it yourself.

Getting a strategy together quickly and in the works, to embrace life after bankruptcy for all its has to offer, is what the real key and secret is.

A bankruptcy lawyer can take you through some of the legal implications and issues pertaining to your filing, recovery, rights and freedoms. If you have failed before to avoid bankruptcy, it is not an unforgivable sin, disarming you from all responsible financial decision-making and fiscal transactions.

You can still get credit, buy a car, home, get a loan, despite what you might think and look at when faced with the realities and intricacies, dynamics and implications of the on-file declaration of bankruptcy (regardless of type, how long it has been etc.). THERE IS HOPE!

Visit the site for more information if you are serious about getting out of debt and recover from bankruptcy: Avoid Bankruptcy [http://www.toavoidbankruptcy.com/bankruptcy/index.html]

Article Source: http://EzineArticles.com/?expert=Alexander_Wennstrom
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Top 10 Bankruptcy Mistakes

By Richard Waple

Bankruptcy mistakes can be very costly and all too often an individual filing bankruptcy will make inadvertent mistakes that jeopardize their chance of discharging their debts and retaining exempted property. Avoid these Top 10 mistakes and you will be well on your way to a successful bankruptcy filing.

1. Transferring Real Estate or Other Assets: Some people try and protect their assets by transferring them out of their name, but this strategy will not work in a bankruptcy proceeding. Recent property transfers must be disclosed to the bankruptcy trustee and the bankruptcy court may “avoid the transfer” and put the parties in the same position they were in before the transfer. Even if you don’t feel that the property or asset that your name is rightfully yours, the bankruptcy court may still “avoid the transfer”. It is often unnecessary to transfer any property or assets before filing bankruptcy as each state has bankruptcy exemptions designed to protect all or a portion of your assets.

2. Transferring Credit Card Balances: Transferring a large amount of debt to one credit card can result in debt on the new credit card not being eliminated due to the large amount of debt incurred to one creditor right before filing bankruptcy. The new creditor may have a strong argument that the balance transfer should be presumed fraudulent, especially if the transfer was within 60 days prior to filing and over $1500.

3. Repaying Loans to Family Members: The bankruptcy code requires that you treat all of your creditors equally and does not want you choosing which creditors to repay right before filing bankruptcy. You can’t repay Uncle Bob the $2000 from when the furnace went at the expense of your other creditors. The bankruptcy trustee may pursue the relative for a portion of any funds recently transferred to them. You are required to list debts that are owed to family members, but assuming there is no discharge objection brought, the debt will be legally eliminated and you can repay the loan if you choose to.

4. Not Including All Your Debts on your Bankruptcy Petition: You are required by law to include all of your debts on your bankruptcy petition, even if you want to keep the debt. If you want to keep your house and automobile when you file a Chapter 7 bankruptcy, you usually will sign a reaffirmation agreement with the bankruptcy court excluding the discharge of those specific debts.

5. Ignoring Lawsuits: Many people fear lawsuits and don’t know what to do when they get a summons in the mail. In most cases, if you have already filed bankruptcy and receive a summons from a debt listed on your bankruptcy petition, your bankruptcy attorney should be able to fax your case information to the creditor’s attorney and get the case dismissed. However, if you are in the process of filing bankruptcy, but the case is not officially filed yet, it can be helpful to attend the designated court hearing and request a continuance to give you an opportunity to file for bankruptcy relief.

6. Withholding Information from Your Bankruptcy Lawyer: Bankruptcy Lawyers are often frustrated at 341 hearings when their clients are placed under oath and disclose new information that was previously withheld from their attorney. Bankruptcy lawyers need all the requested information to properly advise you and protect your income and assets. The horror stories about bankruptcy that we’ve all heard are frequently due to an individual failing to disclose vital information to a qualified bankruptcy attorney for proper advice and planning.

7. Cashing in 401(k)’s, IRA’s, and other Retirement Funds: Generally, 401(k)’s, IRA’s, and other retirement funds are protected from the reach of your creditors and are allowed to be kept during and after a bankruptcy. However, a common mistake is people cashing in their retirement accounts or obtaining a loan. The money that is taken out of your retirement account is no longer protected from your creditors, and you’ll likely owe penalties and taxes on any accounts that were cashed in.

8. Filing Bankruptcy when you are expecting a Large Tax Return: In many states, a tax refund is considered to be an asset that can be liquidated if the bankruptcy exemptions aren’t enough to protect it. Depending on the amount of the refund and the relevant state laws, it is often advisable for you to receive your tax refund and spend the proceeds on living necessities before the bankruptcy is filed. Many states offer a “wildcard” exemption that can be used to protect tax refunds among other things.

9. Waiting Until the Last Minute Before Filing Bankruptcy: The moment you file a bankruptcy an “automatic stay” goes into place which prohibits your creditors from any further collection activity against you, but it is unlikely that you will be able to recover any wages garnished or property taken before the filing of the case. Too many people wait until their creditors have already taken action against them before consulting with a bankruptcy attorney. It can take considerable time to prepare the bankruptcy petition, review the relevant documentation, and be certified by a trustee approved credit counseling agency. Once you have made the decision that bankruptcy is your best alternative, you should file as soon as possible to avoid anymore creditor harassment and allow yourself to put future earnings towards long-term goals and savings instead of chipping away at an insurmountable amount of debt.

10. Not Hiring a Bankruptcy Attorney: Fortunately, experienced bankruptcy attorneys are aware of all of these common mistakes and many more. Bankruptcy is a complex area of the law and the process has being further complicated with the new bankruptcy laws. Mistakes can be costly and a thorough case evaluation from a local bankruptcy attorney is the best way to identify any possible issues and develop a strategy to relieve your debt problems.

Richard Waple is the creator of http://www.bankruptcyhq.com, a bankruptcy information website containing insight and information primarily based on Richard’s experiences as a bankruptcy attorney with one of the largest consumer bankruptcy law firms in the nation.

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http://EzineArticles.com/?Top-10-Bankruptcy-Mistakes&id=549194

Cheap Fast Bankruptcy Loans!

By Kirthy Shetty

Bankruptcy stains a debtor’s financial life and reflects badly on his credit. He sometimes feels that all avenues for funding any further need in his life is closed for ever. But a cheap fast bankruptcy loan can help you out of your financial predicament and provide you loans after bankruptcy. Fast Bankruptcy loans can help you live in your dream home, drive a car of your choice or set up a new business after you have been discharged of your bankruptcy. Provided you have paid back all your creditors and cheap bankruptcy loan can help a bankrupt, post-bankruptcy.

Cheap Fast Bankruptcy loans: How does it work for a bankrupt?

Cheap fast bankruptcy loans are usually referred to people who have filed bankrupt by bankruptcy attorney and have discharged their bankruptcy in other words have repaid all their creditors and have emerged out of debt. However, it does not serve a bankrupt who has just been discharged of his bankruptcy recently, say less than two years. The reason being a lender does not want to jeopardize his cheap loan amount by making fast loan approvals to a credit challenged bankrupt.

It is quite challenging to take up a fast bankruptcy loan with in two years of bankruptcy discharge. The two factors that play a pivotal role in facing this challenge and approving you a cheap bankruptcy loan despite of recently discharged bankruptcy is that clean credit report and your down payment. While you have been declared bankrupt, if you have made your payments regularly then you will have a flawless credit and you can be a strong contender for cheap fast bankruptcy loan. With a sound down payment say 3-5% no lender will refuse a post- bankruptcy loan. Few bankruptcy advisors do add that its not enough if you have a flawless credit history and a down payment but also proof of constant income. Not all income is considered sufficient enough to obtain a post-bankruptcy loan.

IVA Spacialist – Chapter 7 and Chapter 13 bankruptcy

If you have filed for chapter 7 bankruptcy, then an online bankruptcy loan will be made to you only after your two year completion of bankruptcy discharge. Bankruptcy loan is approved fast to a chapter 13 bankrupt on condition that he has made his full payment to all his creditors.

Fast Bankruptcy loan: how to raise down payments?

In order to increase your chance of cheap loan approval before two year of bankruptcy discharge, you need to make some down payments.

Seek financial aid from your relatives or friends and repay them later with the help of second mortgage after you have obtained a bankruptcy loan or

Look out for down payment assistance online or

Request for grants online

Now, you no more have to feel financially stressed or run from pillar to post to raise funds post-bankruptcy. An array of online bankruptcy loan will ease your financial burden and get you fast loan after you have merged out of your debts. Your dream home or a dream car can take wings with uk cheap bankruptcy loan even after your bankruptcy discharge. Also avail of online quotes and compare the loan terms, conditions and rates before you take up a loan.

Get free bankruptcy advice and information online – Advice IVA

Read more on or inquire about bankruptcy alternative – Bankruptcy Alternative-IVA, Debt Consolidation, CCJ

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http://EzineArticles.com/?Cheap-Fast-Bankruptcy-Loans!&id=457928

Avoid Bankruptcy With 3 Effective Alternatives

By Dean Shainin

One must avoid bankruptcy while he still can. Filing bankruptcy may save one from his debts, yet this has serious demands and consequences so it shouldn’t be dealt with without due consideration.

Avoid bankruptcy and one also avoids its profuse demands.

So should one avoid bankruptcy?

This stringency in bankruptcy is (blamed) justifiable against Bankruptcy Fraud of those with the criminal intention of evading provision/payment for ‘debts’ although they have funds to use as payment – so-called petition mills, false oath, assets concealment, and fraudulent conveyance of property. Even the use of multiple-filings as ‘strategic’ bankruptcy (which is not a fraudulent criminal act per-se), is an all-precarious move, creating court-prejudice against the filer if evidence shows that the bankruptcy is being used strategically. Enough exasperating reasons for apt individuals to avoid bankruptcy, there are even more practical reasons to avoid bankruptcy: the filing cost, penalties, what you lose, finding an attorney, making a court-appearance, not to mention the obvious stigmas and disentitlements.

Even if one succeeds in the bankruptcy plan, being able to put up with the repayment plan until the end and even finding creditors granting credit at the end of the repayment period, the bankruptcy could still stay on the debtor’s credit history for 6-10years.

Bankruptcy shouldn’t be taken casually. Avoid bankruptcy, if at all possible, and make a smart fiscal move.

Different Effective Bankruptcy Alternatives To Consider

Bankruptcy is a legal term that allows individuals or businesses who in debt to others more money than they are able to pay to either work out a plan to repay the money over time or completely eliminate most of the bills.

Though most bankruptcies are granted, it doesn’t mean that it would be an easy way out of anyone’s debt. Extensive damages to credits and long term issues from bankruptcy will cause many problems in the years to come and it is definitely far better to explore different bankruptcy alternatives before making a decision to file for personal bankruptcy. Bankruptcy alternatives will help one person to save himself from further devastation.

The existence of various bankruptcy alternatives helps one to consider several options as to what they want to pursue other that personal bankruptcy.

The following are 3 bankruptcy alternatives one might want to consider other than personal bankruptcy:

1. Renegotiate secured loans as bankruptcy alternative:

Bankruptcy does not get rid of all one’s debt. If one’s debt has not completely caught up with you and ruined one’s credit already, he or she may be able to renegotiate these loans with creditors or take the loan elsewhere. This is the principle of renegotiating secured loans as bankruptcy alternative

2. Renegotiation of unsecured loans:

Another bankruptcy alternative is the renegotiation of unsecured loans. Unsecured loans are far more at risk and there may be more wiggle room in this bankruptcy alternative. Professional debt negotiation is another bankruptcy alternative

3. Professional debt negotiation:

Professional debt negotiation is another bankruptcy alternative. Here, debt negotiation companies do much of the work by developing and taking care of one’s case to the creditors.

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 Alternatives

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http://EzineArticles.com/?Avoid-Bankruptcy-With-3-Effective-Alternatives&id=302025

Bankruptcy Information – Common Courtroom Terms

By Rick Munster

Bankruptcy- Bankruptcy Terminology, 45 Terms to Know and Understand

Many debtors and creditors know little of the bankruptcy process. These terms are to help assist individuals in understanding bankruptcy. The terms provided are as defined from the Public Information Series of the Bankruptcy Judges Division.

TERMS & DEFINITIONS

Adversary Proceeding –

A lawsuit arising in or related to a bankruptcy case that is commenced by filing a complaint with the bankruptcy court.

Automatic Stay –

An injunction that automatically stops lawsuits, foreclosure, garnishments, and all collection activity against the debtor the moment a bankruptcy petition is filed.

Bankruptcy –

A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 on the United States Code (the Bankruptcy Code).

Bankruptcy Judge –

A judicial officer of the United States district court who is the court official with the decision-making power over federal bankruptcy cases.

Bankruptcy Mill –

A business not authorized to practice law that provides bankruptcy counseling and prepares bankruptcy petitions.

Bankruptcy Petition –

A formal request for the protection of the federal bankruptcy laws. (There is an official form for bankruptcy petitions.)

Bankruptcy Trustee –

A private individual or corporation appointed in all chapter 7, chapter 12, and chapter 13 cases to represent the interests of the bankruptcy estate and the debtor’s creditors.

Chapter 7 –

The chapter of the Bankruptcy Code providing for “liquidation,” i.e., the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors.

Chapter 7 Trustee –

A person appointed in a chapter 7 case to represent the interests of the bankruptcy estate and the unsecured creditors. (The trustee’s responsibilities include reviewing the debtor’s petition and schedules, liquidating the property of the estate, and making distributions to the creditors. The trustee may also bring actions against creditors or the debtor to recover property of the bankruptcy estate.)

Chapter 13 –

The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debt over time, usually three to five years.)

Exempt –

A description of any property that a debtor may prevent creditors from recovering.

Exemption –

Property that the Bankruptcy Code or applicable state law permits a debtor to keep from creditors.

Exempt Property –

Property or value in property that a debtor is allowed to retain, free from the claims of creditors who do not have liens.

Lien –

A charge upon specific property designed to secure payment of a debt or a performance obligation.

Liquidation –

A sale of a debtor’s property with the proceeds to be used for the benefit of the creditors.

Claim –

A creditor’s assertion of a right to payment from a debtor or the debtor’s property.

Complaint –

The first or initiatory document in a lawsuit that notifies the court and the defendant of the grounds claimed by the plaintiff for an award of money or other relief against the defendant.

Confirmation –

Approval of a plan of reorganization by a bankruptcy judge.

Consumer Debts –

Debt incurred for personal, as opposed to business, needs.

Contingent Claim –

A claim that may be owed by the debtor under certain circumstances, for example, where the debtor is a cosigner on another person’s loan and that person fails to pay.

Creditor –

A person to whom or business to which the debtor owes money or that claims to be owed money by the debtor.

Debtor –

A person who has filed a petition for relief under the bankruptcy laws.

Defendant –

An individual (or business) against whom a lawsuit is filed.

Discharge –

A release of a debtor from personal liability for certain dischargeable debts. (A discharge releases a debtor form personal liability for certain debts known as dischargeable debts (defined below) and prevents the creditors owed those debts from taking any action against the debtor or the debtor’s property to collect the debts. The discharge also prohibits creditors from communicating with the debtor regarding their debt, including telephone calls, letters, and personal contact.)

Dischargeable Debt –

A debt for which the Bankruptcy Code allows the debtor’s personal liability to be eliminated.

Disclosure Statement –

A written document prepared by the chapter 11 debtor or other plan proponent that is designed to provide “adequate information” to creditors to enable them to evaluate the chapter 11 plan of reorganization.

Equity –

The value of a debtor’s interest in property that remains after liens and other creditors’ interests are considered. (Example: If a house valued at $60,000 is subject to a $30,000 mortgage, there is $30,000 of equity.)

Liquidated Claim –

A creditor’s claim for a fixed amount of money.

No-Asset Case –

A chapter 7 case where there are no assets available to satisfy any portion of the creditor’s unsecured claims.

Non Dischargeable Debt –

A debt that cannot be eliminated in bankruptcy.

Objection to Discharge –

A trustee’s or creditor’s objection to the debtor’s being released from personal liability for certain dischargeable debts.

Objection to Exemptions –

A trustee’s or a creditor’s objection to a debtor’s attempt to claim certain property as exempt, i.e., not liable for any prepetition debt of the debtor.

Party in Interest –

A party who is actually and substantially interested in the subject matter, as distinguished from one who has only a nominal or technical interest in it.

Plan –

A debtor’s detailed description of how the debtor proposes to pay creditors’ claims over a fixed period of time.

Plaintiff –

A person or business that files a formal complaint with the court.

Preferential Debt Payment –

A debt payment made to a creditor in the 90-day period before a debtor files bankruptcy (or within one year if the creditor was an insider) that gives the creditor more than the creditor would receive in a chapter 7 case.

Priority –

The Bankruptcy Code’s statutory ranking of unsecured claims that determines the order in which unsecured claims will be paid if there is not enough money to pay all unsecured claims in full.

Proof of Claim –

A written statement describing the reason a debtor owes a creditor money. (There is an official form for this purpose.)

Reaffirmation Agreement –

An agreement by a chapter 7 debtor to continue paying a dischargeable debt after the bankruptcy, usually for the purpose of keeping the collateral or mortgaged property that would otherwise be subject to repossession.

Secured Creditor –

An individual or business holding a claim against the debtor that is secured by a lien on the property of the estate or that is subject to a right of setoff.

Secured Debt –

Debt backed by a mortgage, pledge of collateral, or other lien; debt for which the creditor has the right to pursue specific pledged property upon default.

341 Meeting –

A meeting of creditors at which the debtor is questioned under oath by creditors, a trustee, examiner, or the United States trustee about his/her financial affairs.

Typing Service –

A business not authorized to practice law that prepares bankruptcy petitions.

United States Trustee –

An officer of the Justice Department responsible for supervising the administration of bankruptcy cases, estates, and trustees, monitoring plans and disclosure statements, monitoring creditors’ committees, monitoring fee applications, and performing other statutory duties.

Unscheduled Debt –

A debt that should have been listed by a debtor in the schedules filed with the court but was not. (Depending on the circumstances, an unscheduled debt may or may not be discharged.)

These terms are for the general public to have a better understanding of bankruptcy and the terminology that accompanies the filing or inquiry of a bankruptcy.

Article written by Rick Munster

Rick Munster is the Media Planner for http://www.DebtReductionServices.com

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http://EzineArticles.com/?Bankruptcy-Information—Common-Courtroom-Terms&id=80348

The Myths and Reality of Avoiding Bankruptcy

By Cole Collins

The reasons to avoid bankruptcy.

The number of people filing for bankruptcy in 2006 was 617,660 – in 2007 that number increased to 850,912. Bankruptcy is turning into the most convenient option for people who are facing severe financial problems. However, strikingly, the majority of these people are ignorant of two very significant factors. One, bankruptcy is not the best solution for all people who are burdened by debt. Two, bankruptcy has long term consequences that can have a negative effect on your life forever.

What is bankruptcy and why you should avoid it

The definition of bankruptcy is a federal court process that exists to help businesses and consumers repay their debt or eliminate their debt under the protection of bankruptcy court. The term bankruptcy comes from the Italian work ‘banca rotta’ which means broken bench. District courts take care of bankruptcy filings and procedures under the Federal Bankruptcy Act.

Types of Bankruptcy

There are eight chapters of the Federal Bankruptcy Code. These consist of Chapter 1, Chapter 3, Chapter 5, Chapter 7, Chapter 9, Chapter 11, Chapter 12 and Chapter 13. Chapters 7 and 13 are the most popular bankruptcies filed by debtors.

Bankruptcy Drawbacks

The following are a few drawbacks to filing for bankruptcy:

• Credit History: Bankruptcy is one of the worst things that can happen to your credit history. It stays on your report for up to 10 years and stays in court records for 20 years. The damage it creates goes further than just your credit report; it severely limits your ability to receive a loan and employment as banks and employers typically judge you by your credit report.
• Repossession: Discharging a bankruptcy can cause you to lose valuable assets and money.
• Social status: Personal bankruptcy can ruin your social status.
• Business reputation: Businesses that file for the protection of bankruptcy stand to lose more than their reputation, they also lose all chances to grow their business. Their credit rating will deter banks from qualifying them for future business loans.
• Financial: The most serious consequence to bankruptcy is the closing of all your bank accounts, credit cards, and more. Anything you are currently buying through financing or leasing, like your car, will be returned to the owner.
• Life conditions: People who declare themselves bankrupt will find it difficult to buy a home, rent an apartment, get insurance, or buy a car. These conditions are extremely difficult in today’s world.

Because of these reasons and more, it is worth it to avoid bankruptcy for a more secure future.

Why do people file for bankruptcy?

• Unemployment: The sudden loss of a job definitely has an impact on the decision to declare bankruptcy. In order to keep a certain standard of living, people who are unemployed are more apt to accept more debt without the ability to pay it back.
• Divorce: When a couple separates or divorces, one or both parties typically tends to suffer financially. This seems to also be directly related to the rise in bankruptcy.
• Credit Cards: There is a direct correlation between the number of accounts used by an adult and the rise in the rate of filing for bankruptcy. The more cards that a person has, the more debt will be accrued.
• Debt-income ratio: This ratio is the percentage of a consumer’s monthly gross income that goes towards paying debts. As this rate rises with the general public, the filing rate for bankruptcy has also risen.

Common Myths About Bankruptcy

Bankruptcy seems like an easy way out of debt, but the reality is a lot worse than most people realize. Following is a list of common bankruptcy myths:

• You will eliminate all debt: Bankruptcy will not get rid of all your debts. There are some that cannot be discharged in bankruptcy like taxes, child support, alimony, student loans, etc.
• You will have a new beginning: Bankruptcy does not put you back at square one – it actually puts you at a negative beginning. As bankruptcy will be reflected on your credit report for 10 years, creditors will not be able to offer you credit terms – and if they do, they will cost a lot in interest.
• You can still keep some accounts out of bankruptcy: There are very strict bankruptcy laws that include stiff punishment if you try to hide or not include any accounts. The only ones you don’t have to include with filing for bankruptcy are ones that you will have paid off before you file.
• It’s easy to file for bankruptcy: Filing is extremely time consuming, as well as expensive. Recent law changes also make it much more difficult to file as well.
• Debts are removed for free: Bankruptcy makes you debt free only by liquidating your assets – which could mean losing your home, car, etc.

Is debt consolidation better than declaring bankruptcy?

Debt consolidation can actually make you debt free with more benefits. It can be a permanent solution to your burdened finances, while bankruptcy only provides temporary relief. Consolidating your debt can reduce your monthly payments by 40-60%. Your credit report will be repaired as soon as your debts are paid for – not for the next 10 years like with bankruptcy. You will also be free from the hounding of creditors. In short, bankruptcy should only be chosen when there is no other choice. Debt counselors can help with these decisions as well.

For more information on avoiding bankruptcy or if you need immediate debt relief please visit debtrelief.us.com Use the debt calculator to see how much debt you can eliminate.

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