Friday, February 9, 2007

Bankruptcy Laws

The US congress passed a set of uniform laws to govern how bankruptcy is dealt with. In these bankruptcy laws, or the bankruptcy code, there are ways to protect the debtor from being harassed while they are trying to pay off their loans. The different methods that can be used are set out in certain chapters of the bankruptcy code.

These bankruptcy chapters such as chapter 11, chapter 9, and chapter 13 are recognized by the judicial courts to be bankruptcy laws that each state must work with. While the main body of these bankruptcy laws can’t be changed there are various amendments that can be done. These amendments in turn become part of the bankruptcy laws.

From time to time Congress will change the various sections in the bankruptcy code to account for the trends and occurrences in today’s business environment. To make sure that you understand what these new bankruptcy laws are and how they affect you it is best to consult with a lawyer.

You should make sure that you are looking at these bankruptcy laws only if you have no other recourse for getting out of financial difficulties. As bankruptcy is a very complicated process you should use this measure only as a last resort.

Since congress can change the bankruptcy laws to reflect our varied lifestyle expenditure you will find that these laws can make it difficult for you to declare bankruptcy even if you are in non-solvent position to pay off your creditors.

One of the other effects that can be found in the changes that have been made to the chapter 7 bankruptcy laws is that all debtors must have credit counseling. This counseling will help the debtor understand what they can do to avoid getting into debt again. In the counseling sessions you will be given alternative routes to take with regard paying off your debts.

This credit counseling must be gone through before you can file for bankruptcy. To have this credit counseling you can only use agents that have been approved by the government. Of course you should have received a certificate that states that you have gone through with a credit counseling session.

During the credit counseling you may be presented with a plan to pay off your creditors. Whether you agree with this plan or not you will need to present this plan to the bankruptcy courts.

According to the bankruptcy laws you will need to visit this center when your bankruptcy case has been filed. This counseling session will be for you to learn about personal finance management. You must present a certificate from this session of counseling to have your debts discharged fully.

While bankruptcy laws can help protect the person who is in debt trouble, there are instances where the bankruptcy laws can cause more financial hassles than they were intended for. Therefore bankruptcy should be a last resort only.

Wednesday, February 7, 2007

Bankruptcy Illinois

Going bankrupt is a nightmare that not all people might experience. While the bankruptcy code can’t be altered by any state there are different procedures for each state. For anyone who is living in Illinois, the matter of bankruptcy Illinois courts system will decide on.

You should however prepare for the court proceedings when you first start thinking about claiming bankruptcy. As bankruptcy is very complicated you might want to ask a bankruptcy lawyer to explain the bankruptcy Illinois act.

This way you will understand what the Illinois courts require from you before they can state that you are bankrupt. As the bankruptcy code has changed in 2005 you will need to go through credit counseling at an approved counseling agency at least 6 months before you file for bankruptcy.

You will also need to go through with a financial management instructional course after you have filed for bankruptcy. Before you start the process of bankruptcy filing you will need to gather all of the documents that bankruptcy Illinois courts require.

These documents will include any deeds and titles to land and vehicles that you own, loan documents, your tax returns for the last 2 years, property and assets, all debts – both secured and unsecured – with the names of the creditors listed, monthly living expenses, major financial transactions for the last 2 years. You will also need to itemize your current income sources.

Once these have been readied and you have talked with a reputed bankruptcy lawyer you can take the means test, to see if you qualify for a chapter 7 or chapter 13 bankruptcy filing.

The means test will be administered by your lawyer and you will have the right to a chapter 7 bankruptcy filing. The means test will be based on your monthly income and expenses. If your monthly income and expenses are more than the average for Illinois wage earners you can’t file for chapter 7 bankruptcy.

Instead you will be able to apply for chapter 13. In this chapter you can keep all of your assets and property and pay off your creditors. You will be using the wages that you have left from your monthly expenses.

The bankruptcy Illinois act allows the debtor to file for chapter 13 even if they qualify for chapter 7. Once you are ready for either a chapter 7 or a chapter 13 bankruptcy Illinois hearing then you have to answer all of the questions that the bankruptcy trustee and your creditors will ask from you.

While the bankruptcy Illinois act is not that hard to prepare for you should make sure that you have everything readied before you start applying for bankruptcy. Having all of the items that you need for your bankruptcy hearing ready, will help you to choose if you want a chapter 7 or 13 bankruptcy filed.

Tuesday, February 6, 2007

Bankruptcy Forms

When a person files for bankruptcy they will need to fill out bankruptcy forms that pertain to their case. These bankruptcy forms must be court approved and they must be valid. You can get these bankruptcy forms when you talk with your lawyer about the best way to solve your financial problems.

There are different places where you will be able to find bankruptcy forms but you should let your lawyer examine the forms before you start filing them. Sometimes to become familiar with the different questions that you will find in these bankruptcy forms you can use free downloadable bankruptcy forms.

As bankruptcy filing is a very complicated process you will need to discuss the different questions that are in these bankruptcy forms. It is best to ask questions about the different aspects of these forms as sometimes you may become very confused.

You should also find out what will happen to your bankruptcy claim once the filing process is concluded. As there are different types of bankruptcy you should make sure that you are filing a bankruptcy form that is applicable to your case.

You can find also see about using bankruptcy kits. These kits provide you with information about the different types of bankruptcy and what you need to fill on the various bankruptcy forms.

You should be aware that these bankruptcy forms will be very lengthy as there may be many pages of information and questions for you to fill out. In the process of looking through the different bankruptcy forms you may find that some of these forms state that you have no need to hire a lawyer.

The smart individual will be cautious with such claims as sometimes your lawyer will have trouble deciphering the terms that are being set out. To prevent your getting into problems you might want to see what your lawyer has to say about these different bankruptcy forms.

You can download the different instructions that are needed for bankruptcy forms and see what type of information that you need to have prepared for your lawyer. Having the various information and data ready can help you to fill your bankruptcy forms with a minimum of hassle.

So the next time that you are looking at bankruptcy forms you should see your lawyer. This way you can take advantage of the information that you have about bankruptcy and finalize the necessary bankruptcy forms.

Monday, February 5, 2007

Bankruptcy Filing

Going bankrupt is something that is hard to imagine happening to you. When bankruptcy does occur though, you have some options that you can try. For these bankruptcy options to work you will need to consider bankruptcy filing. The options will include chapter 11, 13, and 7.

Each of these types of bankruptcy filing allows you a breathing space while you try to sort out your financial mess. The most well used bankruptcy claims are chapters 13 and 7. In these two options you will be able to talk with your lawyer and find the best method for paying off your payments.

In general chapter 7 and chapter 13 bankruptcy claims ensures that you can’t be forced to pay further debts once you have placed a bankruptcy filing. For your creditors to stop contacting you it is essential that you file a bankruptcy claim.

Once the bankruptcy filing has been accomplished your payments will commence. These payments will be made depending on the type of bankruptcy that you have filed for. As both of these bankruptcy filings are very different it is best if you understand what happens when you file bankruptcy claims.

In the chapter 7 bankruptcy filing you agree to liquidate all of your disposable and non-exempt assets. These assets, money, and property are turned over to a court appointed bankruptcy trustee. This individual will start the process of turning your disposable assets into cash. Once the amount of money that you owe has been found, the trustee will distribute them amongst your creditors.

You should make sure that when you are preparing for bankruptcy filing that you have given your lawyer a list of all of your creditors so that the proper payments can be finalized.

This step in bankruptcy filing will wipeout all of your debts, excepting for certain non-dischargeable debts. You will however need to discuss with your lawyer the best ways to go about bankruptcy filing for chapter 7 and in some cases chapter 13.

The chapter 13 bankruptcy filing will allow you to make arrangements with your lawyer to pay off these payments as best as you can. The lawyer will examine your bankruptcy case history before you can begin the bankruptcy filing process. Once the filing has been finalized you have a period of 5 years to pay off your debt.

Bankruptcy filing is the best way to make sure that your bankruptcy claim is following in the proper path. Your lawyer should be able to advise you on the best route of bankruptcy to file for.

Sunday, February 4, 2007

Bankruptcy Code

Becoming bankrupt is not something that many people think about. There are occasions when this will happen and these individuals will need to file for bankruptcy.

The various chapters of bankruptcy like chapter 13, and chapter 11 are taken from the bankruptcy code. This code was established by the US congress.

These laws were put in place so that there was a uniform law about bankruptcy that could be found throughout the US.

These laws from the bankruptcy code are designed to protect the person who is in debt from further problems.

There are currently four main types of bankruptcy laws that are taken from the bankruptcy code. You will recognize these bankruptcy laws as chapters.

Chapter 11 is one of the bankruptcy laws that can be found in the bankruptcy code under the heading chapter 11.

The different chapters within the bankruptcy code provide information for people who are in debt. The various ways that the law can work to keep you safe from undue hassles can be found within the pages of the bankruptcy code chapters.

While the US government has provided the framework for these laws of the bankruptcy code each state has the right to pass other laws that will work in accordance with the bankruptcy code.

The states can only provide other laws that are compatible with their state’s laws. Otherwise the states themselves don’t have the power to govern how the bankruptcy code works.

There are many different and new laws that you can find when you look through the bankruptcy code. One of the new laws that you will find is the altered state of the debtor-creditor relationship.

While the different states can’t alter the basic rules of the bankruptcy code they do have the right to interpret how these bankruptcy claims are filed and acted on in their respective states.

If there is a major change to the bankruptcy code this change will be passed by congress. One such change that has taken effect alters the rules of bankruptcy for chapter 7. In this part of the bankruptcy code all debtors must prove that they have the right to file for bankruptcy.

They will be allowed to file for bankruptcy only if these people have fulfilled a counseling session. This step has been taken to ensure that the bankruptcy code is not being misused by the various individuals who want to avoid paying their various debts.

As the bankruptcy code has been placed for our protection it is best if you treat these laws with respect.

Saturday, February 3, 2007

Bankruptcy Facts

Since bankruptcy is a situation that seems to be hitting more people it is best to know some bankruptcy facts. These facts can help you to understand what happens when you claim to be bankrupt. The first fact that you will need to understand is that filing for bankruptcy is not the end of the world.

Bankruptcy is a way for you to suspend the different debt collections that are being carried out in your life during the time that you have somehow managed to collect lots of debts. Once you have filed for bankruptcy the court will grant an automatic stay order.

This stay order will prevent the different debt collection agencies from trying to collect their debts while the court is looking into your tangled up finances. According to the known bankruptcy facts, during the time of your bankruptcy money cannot be collected from you by your creditors.

These individuals will need to talk to your lawyer to find information about the debt payment. These creditors can however petition the court for relief from the stay order. This relief order will provide them with the ability to collect any secured debts that you have written over to them. This is the only way that these creditors can collect money, property and assets from you.

By knowing about bankruptcy facts like this you can make sure that you are careful about assigning your property as security to credit companies. There is another bankruptcy fact that you should know about. In this fact once your bankruptcy payments have been fully paid off you will be discharged from further debt payments.

At this point former creditors will no longer have any claim on you and they can not force you to pay any more of the former debts. However if you do happen to get into credit difficulties with these same creditors once more they will have the right to seek compensation for these new debts that you have incurred.

As you look through the various bankruptcy facts and advice, you will see that in most cases your assets that can be turned into cash must be turned over to a bankruptcy trustee. This court appointed person will make sure that you are paying off your debt in a reasonable manner.

You disposable assets once they have been liquidated will be distributed amongst your creditors. This is also another way for you to discharge your bankruptcy charges. There are many other bankruptcy facts that can help you to avoid being in trouble with the various people to whom you owe money. You just need to talk with your lawyer for help.

Friday, February 2, 2007

Bankruptcy Chapter 13

The US Congress passed a law that established a set of uniform laws to govern how bankruptcy was handled.

Understanding The Chapters

These laws were placed under a system called the bankruptcy code. In this code there are chapters that pertain to various issues in bankruptcy.

One such chapter deals with allowing the debtor to start a new life whilst they pay off their future debts. This bankruptcy chapter 13 is one of the popular bankruptcy laws.

In bankruptcy you generally need to find some way of living while at the same time you pay your creditors what you owe to them. This sounds a civilized way of dealing with this mater but the truth is otherwise.

In most cases creditors will try to force you to pay them the various amounts that you owe.

This form of force payment can range from a simple letter to harassment via telephone calls and even visits from your creditors.

With bankruptcy chapter 13 you have the best way of stopping this force payment and you are given a way to live again.

With a bankruptcy chapter 13 filing, for the person who has gotten into a debt which seems to be eating up their life’s earnings, this law allows the person to find a reasonable way of paying off their debts.