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Arizona Bankruptcy Attorneys and the ABCs Of Chapter 13 Bankruptcy
Arizona Bankruptcy Attorneys presents the following article about the ABCs Of Chapter 13 Bankruptcy. Arizona bankruptcy laws differ from federal bankruptcy laws so it is important to contact an Arizona bankruptcy attorney to assist you with your bankruptcy questions and legal representation.
Chapter 13 bankruptcy is just another way to reduce your debt but to do so while keeping some of your valuable assets. Arizona bankruptcy lawyers can help you handle a chapter 13 bankruptcy and walk you through the process so everything goes as planned as goes as quickly as possible. You might be wondering whether a chapter 13 bankruptcy is something you would be able to go through. And, if you are over your head in debt and don’t know what to do but aren’t interested in losing your big assets like your home then a chapter 13 bankruptcy is the perfect opportunity. Phoenix, Arizona bankruptcy lawyers will explain to you that by filing this type of bankruptcy you make a plan to pay back your debts over a period of time, which is usually three to five years. The great thing is that you can keep valuable assets that are not covered by exemptions. With a Chapter 13 individuals will be making monthly payments and in some cases biweekly payments so anyone filing for this type of bankruptcy needs a constant source of income.
There is then a confirmation hearing in a court of law. At this meeting the proposed repayment plan will be reviewed and it will be determined whether or not the plan meets the Bankruptcy Code. The biggest difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy is that in 13 individuals keep their property and assets and make payments based on their income in order to pay off creditors.
With this type of bankruptcy the debtor does not see his debts erased but rather must make appropriate payments until the plan is achieved and a discharge is received. While the debtor is in repayment he will be protected by things such as garnishments, lawsuits, and any other type of action by creditors. More debts are eliminated under the Chapter 13 plan than under the Chapter 7 plan.
You need to evaluate your financial situation and determine which bankruptcy is the best option for you. You will want to talk with a lawyer to get some guidance to ensure you are on the right path and making the best decisions for you. After reviewing your financial situation, your assets, and your income stream you will be able to make the best decision. Make sure all your questions are answered before going ahead, though.
By: Caitlina Fuller
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Arizona Bankruptcy Attorneys and the ABCs Of Chapter 7 Bankruptcy
Arizona Bankruptcy Attorneys and the ABCs Of Chapter 7 Bankruptcy. Arizona bankruptcy law does vary from federal bankruptcy laws. Contact an Arizona bankrupcy attorney to ensure you understand how those differences may affect you and your potential bankruptcy.
We have all heard about bankruptcy, but not many of us know the details. There are four types of bankruptcy but we will be discussing Chapter 7 bankruptcy. This type of bankruptcy is basically liquidation where the debtor hands over all assets so they may be sold and the resulting cash may pay off the creditors. Once this occurs then all the debts that are dischargeable will be discharged in a time frame of about four months. Most people who file chapter 7 bankruptcy do so when they don’t have any assets to speak of so there really is nothing to sell off or lose and there is a fast start to a new life with no debts.
The reason Arizona bankruptcy lawyers work with people to file Chapter 7 bankruptcy is to help people get out from under the burden of their debts. Fortunately, if you are in debt so far over your head that you can’t handle the stress anymore then consider consulting Phoenix bankruptcy lawyers to help you get out of the mess. Once you contact a lawyer they will be able to walk you through the process of filing for bankruptcy and eliminating your debts almost immediately. There are several reasons why people file for bankruptcy and they include large expenses that are completely unexpected that place an unusual burden on the individual as well as overextended credit, marital problems like divorce, as well as unemployment and medical expenses that are too much to pay.
A study conducted by Harvard showed that at least half if not more of US bankruptcies were a direct result of medical bills. This may happen to you because nobody knows what the future holds and accidents happen every day. So, don’t worry too much if you have to file bankruptcy because you will eventually be able to rebuild your credit.
Many banks are now responding to the many Americans who have filed bankruptcy and helping them rebuild their credit. Secured credit cards are simply credit cards that are secured by an amount of money as a guarantee. So, if you paid a security of $200 then your credit would be $200. As you prove your ability to pay then your credit is increased slowly but surely and your credit score increases over time. Amazingly, two years after a bankruptcy has been discharged debtors are frequently given mortgage loans that have equally good terms as others in the same financial situation who have never filed bankruptcy.
By: Caitlina Fuller
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Dealing With Your Home When Bankruptcy Looms
Dealing With Your Home When Bankruptcy Looms
Arizona Bankruptcy Attorneys presents the following thoughts about bankruptcy and your home. Remember, Arizona bankruptcy laws differ from federal bankruptcy laws so you should contact a bankruptcy attorney in your area for detailed information.
Deciding to go bankrupt
For most people, bankruptcy is the final course of action in dealing with serious debt problems once all other alternatives have been exhausted. Despite the negative connotation BANKRUPTCY is an excellent solution because it immediately removes the burden of serious debt. However, the biggest potential loss when bankruptcy is declared is undoubtedly your home. That is, if you own a home. For most people their home is their largest and most significant asset. It is usually fear of this loss that prevents thousands of people from declaring bankruptcy when they should. Many debt management companies exploit this fear in order to keep debtors in debt management plans which have no long-term benefit for the debtor. Of course, bankruptcy can never be an easy decision for anybody with financial problems; however, if it is the best option available to help a debtor regain their financial freedom then it should be pursued.
If bankruptcy is the only option available then, as a homeowner, they must sell their home and use any profits to reduce their debts before declaring bankruptcy. But what if the homeowner cannot sell his home? This is a situation that is very likely in our current housing market climate, yet a homeowner could simply hand over the keys to the mortgage company and move out. As we all know moving out like this represents the unthinkable for homeowners. If moving out in a financial crisis was that simple then many eviction companies would be out of business.
Now, if any homeowner is in this position they should be aware of the limited actions they can take to protect their property. Before I explain the options available in keeping and or staying in a property when declaring bankruptcy, it is important to understand what happens to a property in bankruptcy.
The Impact on Property
When a homeowner declares bankruptcy, technically the ownership rights or the ‘title deeds’ of the homeowner will be transferred to the courts/trustee. This simply means that the courts will automatically become the new owners of the property, therefore giving them the right to sell the home. It is the proceeds of any eventual sale that will be shared out amongst the creditors. However, before this happens there is a 12 month period of grace during which the bankrupt homeowner has the opportunity to find a new home or salvage his home through a third party.
For a jointly owned property, where, for example, a male spouse is the only person declaring bankruptcy, it will be only his portion of ownership that is transferred in bankruptcy. The spouse’s partner is not technically affected with regard to her share of the home; however, she will be affected if the trustee decides to sell the house after the 12 month period of grace. The trustee can use the law to force a sale in order to cash in the spouse’s share of the property for his creditors.
Options for the homeowner
Because the main consequence of bankruptcy is the loss of highly valuable saleable assets, it is incredibly difficult to safeguard them. Therefore the two options I will proffer in helping you safeguard your property are weak however they could be advantageous, depending upon your situation. The first option is called the sale and rent back option. It is a very simple solution: you sell your property to an investor and then rent it back so you don’t have to move out and incur the extra cost of finding a new home. Again any profits from this deal should be used to reduce your debts. This solution should be pursued before you declare bankruptcy because it will be difficult to use this solution once you are bankrupt. The reason for this is because the value of the home at which you get this deal will usually be well below the market rate. The Trustee in bankruptcy cannot sell the bankrupt property below market rate because his interest is to get as much money as possible from the sale to satisfy creditors.
Another option is to ask the court when bankrupt to sell the property to a family member or a third party who has the resources to help you. This can help ensure that you stay in your home albeit with a different and or familiar owner. Therefore if the opportunity arises to buy back the property in the future, it will be possible. If you are thinking of transferring your house to family or friends before going bankrupt, forget it, because the bankruptcy laws give the trustee the power to look into gifts or assets transferred below market value. Assets transferred between 5- 7 years before declaring bankruptcy may be immune from this scrutiny, however, a recently transferred asset will sound alarm bells and raise suspicions that could lead to a criminal prosecution if it is discovered that you are not being completely truthful about your financial affairs.
I acknowledge that the solutions put forward are not guaranteeing foolproof protection for your home; however, one presents the opportunity of buying back your home in the future. The other also provides you with the choice of staying in your property rather than uprooting your family from your home and your children from their local schools. At the very least they provide the illusion that you still own your property.
12 Month Grace Period
Another question that might arise may be what happens if or when the 12 month period of grace elapses? What if the property cannot be sold? In answer to the first question; the trustee will start to look for a preferred buyer, and if the property cannot be sold a charge will be put on the property until it is so, although it is important to note the that ownership can revert back to the bankrupt debtor after a certain number of years if it is not sold; however, this is very unlikely.
For any homeowner looking to declare bankruptcy, seek professional advice first. The action you take prior to declaring bankruptcy is extremely important, since it may help in speeding up the administration process and also help you when presenting your bankruptcy petition. Bankruptcy is not the end of the world but rather a way to clear away current financial problems and create the opportunity to start afresh. Therefore the sooner you take action and declare bankruptcy, the earlier you will be released from the burden of serious debt.
By: Paul Odunaiya
Article Directory: http://www.articledashboard.com
Paul Odunaiya is an insolvency specialist and the managing director of Qsolvency LTD, which trades as online-debt-advice.co.uk. Paul has over 5 years’ experience in helping individuals and businesses in financial difficulties navigate their way out of serious debt.
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Buying A Home After Bankruptcy
Buying A Home After Bankruptcy
By: Kevin Chern, J.D.Arizona Bankruptcy Attorneys presents the following article on buying a home after bankruptcy. Contact a bankruptcy attorney in your area to better understand what bankruptcy entails. There are so many fears about bankruptcy that it is vital to have sound legal representation to understand all of your options.
It’s true that most lenders will see you as a credit risk immediately after bankruptcy, but that doesn’t mean you won’t be able to buy a home. Home loans are somewhat less risky for lenders than unsecured loans (like credit cards or personal signature loans) because the lender will have your home as security.
Even so, every reputable lender wants to be able to expect that a loan will be repaid as scheduled. Fortunately, your credit score is based more heavily on your recent track record than the more distant past. That means that if you can start rebuilding your credit quickly after bankruptcy, control your expenses, and start showing a strong payment history, you won’t look like such a risk to those creditors.
Some studies suggest that within 18-24 months after a bankruptcy discharge, you can qualify for a loan on the same terms you would have received if you had not filed bankruptcy. In other words, most lenders will be much more interested in your down payment, the stability of your income, and the relationship between the loan payments and your monthly income than in your past financial troubles.
In shopping for a home, here are some general rules you should follow:
Shop around for everything as carefully as you do for the house itself. Your home is likely to be the largest investment you’ll ever make, so it pays to be a smart shopper. Comparison shop for your mortgage and your real estate broker as well as your home. And don’t base your decision solely on the interest rate: factors like the amount of the down payment, the length of the loan, insurance requirements, and associated costs and fees can be just as important.
Use a mortgage broker–an independent contractor who works with several different lenders to find the best loan for you. A mortgage broker has two important things that you may not: professional expertise and direct access to hundreds of loan products. That means a mortgage broker can help you find the most efficient and cost-effective method of financing for you. Mortgage brokers have also pioneered the "subprime" credit market, using innovative loan programs to allow borrowers who have previously filed for bankruptcy to start enjoying the benefits of home ownership.
Look for cash-back deals. Despite what you may have heard, real estate brokers’ commissions are not set in stone. The real estate brokerage industry is competitive, and many brokers and real estate web sites offer cash-back or rebate programs if you agree to work with their preferred real estate agents. You may be able to save thousands of dollars on commissions with these programs.
If you’ve filed bankruptcy and you want to purchase a home, the bottom line is that you have to do your homework. That means rebuilding your credit, but it also means taking the time to research your options and get the best loan and the best terms for your particular situation. If you make that investment, you may be pleasantly surprised with your ability to buy the home you want after bankruptcy.
About The Author
Attorney Kevin Chern is President of Total Bankruptcy and former managing partner of the largest consumer bankruptcy law firm in the United States. His book, ‘Life After Bankruptcy,’ shows former debtors how to preserve their ‘fresh start’ after bankruptcy.
(C) 2006, Total Bankruptcy, Inc.
This article may be reproduced in its entirety without limitation and without notice, except that any reproduction must include the entire article, which may not be modified in any way, and must include the author bio information contained herein, including the URL and, if published online, a live link to the URL included therein.
This article was posted on February 20, 2006
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Bankruptcy Myths Busted
Bankruptcy Myths Busted
Arizona Bankruptcy Attorneys presents the following article that helps to debunk some of the common bankruptcy myths. If you want more information on these issues, or have other concerns, contact a bankruptcy attorney in your area to get more information. Bankruptcy, while seemingly scary, is a process that you can easily navigate with the right legal representation.
The average American knows very little about bankruptcy. Most people probably are aware of bankruptcy’s ability to dissolve debt and give the debtor a fresh start. Some of the information you might have heard is correct, but some is not. The purpose of this article is to dispel some of the most common bankruptcy myths.
1. Even if I file for bankruptcy creditors will still harass me and my family.
This is absolutely false. Bankruptcy law provides for an automatic stay. Simply, as soon as you file for bankruptcy a hold is put on all your outstanding debts and any creditor attempts to collect those debts. The law prohibits a debtor to attempt to collect, possess, or even contact the debtor in regard to the debt. If a creditor does not follow the rules, the debtor may have an action in the form of punitive damages. Basically, punitive damages are meant to punish a creditor for not following the procedures set out in the bankruptcy code. Whether a debtor has a cause of action against a creditor should be left to an attorney to answer. However what you need to know is this; once you file for bankruptcy, creditors must leave you alone or suffer the consequences.
2. If I file for bankruptcy it may cause more family troubles than I already have, maybe even divorce.
This is also false. There are two ways a debtor can file for bankruptcy voluntary and involuntary. Voluntary filing is done by the debtor. The debtor talks to an attorney or files a petition pro se and gets the bankruptcy process started. In an involuntary bankruptcy, the creditor forces the debtor into bankruptcy often times unwanted by the debtor. Voluntary filing is the result of a family discussing their options with each other and possibly an attorney and making an informed decision on the merits. Divorce is often associated with a bankruptcy with the latter filing. Voluntarily filing for bankruptcy gives the debtor a chance to set his terms and allows the debtor a free choice for the bankruptcy.
3. If I file for bankruptcy the trustee will seize all of my assets and sell them to settle my debts with creditors.
Again this is false. While it is one of the duties of a trustee to sell assets in the estate, the trustee cannot necessarily reach all of your assets. There are many factors that must be examined before this happens. The type of bankruptcy as a lot to do with how much the trustee can seize. For example, a chapter 13 is a reorganization bankruptcy. Simply, the debtor keeps the majority if not all of his assets, and forms a repayment plan to satisfy interested creditors. Even in a chapter 7 filing the debtor gets to keep many assets. These are called non-exempt assets. The debtor’s house, car, clothing, furniture, life insurance, etc. are all non-exempt assets. These are just a few of the main assets. An attorney will be able to arm you with the information you need to keep even more personal property a debtor thought possible.
4. If I file for bankruptcy now, I will never be able to file again.
Surprise, this too is false. Filing for bankruptcy does not make you ineligible to file again. Without going into too much detail, just know the bankruptcy code allows a debtor to file for bankruptcy more than once. There are a few things different most importantly possibility of discharge, however you can file for bankruptcy again if you already have filed.
5. If I file for bankruptcy I will never get credit again.
This is simply false. If this were true then nobody would file for bankruptcy. Americans depend on credit and this is no different than a debtor who has filed for bankruptcy. Several banks now offer credit on a secured basis to potentially risky customers. The debtor would put up a small amount of money so as to secure payment in the future. Once the debtor proves his ability to pay, credit limits get higher. As little as two years after a chapter 7, a debtor is eligible for mortgage loans on terms equal to someone who has not gone through bankruptcy. Creditors look more to a debtors stability, as opposed to the fact you filed for bankruptcy.
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Simple Steps For Filing Bankruptcy And Getting Fast Debt Relief
Simple Steps For Filing Bankruptcy And Getting Fast Debt Relief
Arizona Bankruptcy Attorneys presents the following article about the simple steps of filing bankruptcy to get out of debt. Remember, bankruptcy is a huge decision, with long term implications on your credit and is never an easy decision for consumers to make. However, with the right Arizona bankruptcy attorney, you can discover all of your options and make the right decision for you.
There are also alternatives to bankruptcy. Obtain the Credit Repair Bible and find out how you can take your credit matters into your own hands and repair your credit.
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 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.
By: Natalie Aranda
Article Directory: http://www.articledashboard.com
Natalie Aranda is a freelance writer. She writes and blogs. Once the personal bankruptcy petition is filed, all your creditors are prohibited from contacting you and staking claims to your assets.
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How To Rebuild Credit And Recovery From Personal Bankruptcy
How To Rebuild Credit And Recovery From Personal Bankruptcy
Arizona Bankruptcy Attorneys presents the following article on recovering from bankruptcy. It is possible to repair and rebuild your credit and get back on a path of financial soundness after bankruptcy. Contact a bankruptcy attorney for more information on how bankruptcy affects you long term, and how Arizona bankruptcy laws differ from federal bankruptcy laws.
Many of us have had a few bumps in our credit before, but overall they didn’t affect our credit scores too much. Then, there are those folks who have had serious credit problems and even filed for personal bankruptcy. For these people there is help out there, including Arizona bankruptcy lawyers and Phoenix bankruptcy lawyers.
Most people that have a personal bankruptcy need a lawyer to help them improve their credit while there are others who can salvage their credit score through hard work and dedication. The following tips will help you rebuild your credit and recover from personal bankruptcy.
First of all, you need to make sure you make all of your payments on time. When you make your payments on time you will be on your way to improving the effect of personal bankruptcy on your credit report. Having a late payment here or there will smudge your credit report a bit, but chronic late payments and missed payments will really have a negative impact. If you have a bankruptcy on your credit report and are trying to recover from it then it is even more important for you to make a fresh start with your credit and make all payments on time.
The next tip is to keep the amount of debt you have as low as possible. You want there to be as much room as possible in your debt to credit ratio. That way when creditors look at your credit report they can see that although you have a previous personal bankruptcy on your credit report you are now managing your credit responsibly.
Another suggestion is to keep your old lines of credit open instead of closing them. This sounds pretty crazy because you want to close as many accounts as possible to control your spending. However, when you close those accounts you will negatively impact your credit score because your available credit limit will be impacted, and this affects your credit score.
As you can see just because you have a personal bankruptcy does not mean that you will never be able to get credit again nor does it mean that you can’t improve your credit report. So, take the tips suggested above and implement them. Then keep track of your credit score on a regular basis to see how your credit score improves every month!
By: Natalie Aranda
Article Directory: http://www.articledashboard.com
Natalie Aranda is a freelance writer.
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Free Debt Consolidation Services
Arizona Bankruptcy Attorneys brings you the following information and advice on debt consolidation services. Be sure to do your research and contact a bankruptcy attorney in your area for more information or for referrals.
There are alternatives to bankruptcy. Empower yourself to know them all, and obtain the Credit Repair Bible. This resource can assist you in dealing with your debt and repairing your credit on your own. It is a a small investment, however, it can bring you huge dividends when you are on your path to a more solid financial future and free of debt and credit issues.
If you are struggling with debt and in need of assistance. it can be close to impossible to swing paying out yet more money in order to get some help. Fortunately there are Free debt consolidation services available - a number of which would be to your advantage to check out.
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Credit Card Debt Assistance
Arizona Bankruptcy Attorneys offers the following information on eliminating your credit card debt. Credit card debt can be incredibly overwhlelming, yet you do have options. Contact an Arizona bankruptcy attorney for more information and to understand what you can do to get on the path for a more sound financial future.
There are alternatives to bankruptcy as well. Obtain the Credit Repair Bible and find the variety of ways that you can take credit and credit repair into your own hands and fix your credit issues.
For many, credit card debt is synonymous with weight gain - easy to gain but hard to get rid off! However, with proper planning, hard work, and discipline you can get out of your credit debt and remain debt free for the rest of your life.
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Bankruptcy Exemptions That You Need To Take Into Consideration
Bankruptcy Exemptions That You Need To Take Into Consideration
Arizona Bankruptcy Attorneys and Bankruptcy Resouces offers this article about Bankruptcy Exemptions to keep in mind. Arizona has some very specific laws that differ from federal bankruptcy laws so contact an Arizona bankruptcy attorney for more information regarding your potential bankruptcy filing.
If you are looking at the prospect of filing any type of bankruptcy, you need to be aware of the various bankruptcy exemptions. Many of them may apply to your individual circumstances. In basic terms all businesses and individuals who file for bankruptcy have to list all of their assets. Some of them may be protected by law from creditors taking them as repayment.
The legal definition of bankruptcy according to the Merriam Webster’s Dictionary of Law is the administration of an insolvent debtor’s property by the court for the benefit of the debtor’s creditors. The same source sites the legal definition of bankruptcy exemptions as the act of exempting or state of being exempt or one that exempts or is exempted.
The issues that surround bankruptcy laws are very detailed and complicated for the average person. The amount of legal jargon incorporated into the guidelines can make your head spin. It is hard to grasp the basic concepts when you can’t decipher the information you are reading. It is very important that you are able to protect some of your assets from your creditors.
To help you understand all of this, it is highly recommended you work with a reputable legal entity. Make sure you get a free consultation from at least two different quality sources. This way you can compare information. You want legal representation that has experience in the field of bankruptcy. You also want someone who is willing to take the time to treat you as an individual.
Each case involving a bankruptcy, whether it is for a person or a business, has to be filed in a Federal court for processing. Yet many of the rulings that relate to a bankruptcy filing are determined on a state level. Since the rules for each state vary somewhat, it complicates the issue even further. Therefore, it is important to know that the bankruptcy exemptions you can claim are affected by the type of bankruptcy you file and the state you live in.
Here is a list of the choices you can file under. Keep in mind that your legal representation should clearly go over all of the ones that apply to you. They should also discuss the pros and cons each one has to offer you. Knowing about the bankruptcy exemptions that will apply to your own case can help you decide if this is the course of action you need to take.
1. Chapter 7: Liquidation
2. Chapter 9: Reorganization for municipalities
3. Chapters 11 and 13: ReorganizationBy: Caleb Liu
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