Posts Tagged ‘Chapter 7’

Finances: The Effects of Declaring Bankruptcy

December 29th, 2010

By Lance Williams

What options are available to you when you can no longer pay your bills? What if you absolutely have nothing left to sell, no valuables left to pawn, not a cent to your name? If any of these scenarios sound familiar to you, then it may be time for you to seek out a reliable bankruptcy attorney. If you don’t know where to get one, go onto Google.com and type in Las Vegas bankruptcy attorney, if you are in Las Vegas, it’s as simple as that. But this decision is one that should not be taken lightly, but for those facing a certain set of circumstances, it offers distinct benefits. In order for you to know what you are getting yourself into when declaring bankruptcy, a few of the major effects are listed below.

One of the most obvious affects of declaring bankruptcy is the opportunity of starting with a clean financial slate. Your debts are essentially wiped out; giving you the opportunity to start over financially.  You must keep in mind, however, that your declaration may be on your record for a number of years. If you file Chapter 7 or Chapter 10 bankruptcy the declaration will show up on your credit reports for up to 10 years. These declarations on your consumer credit report may make it difficult to apply for credit » Read more: Finances: The Effects of Declaring Bankruptcy

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Finances: Declaring Bankruptcy

March 21st, 2010

By Victoria Knight

Victoria Knight V2

The thought of declaring bankruptcy and being free of your debts or having the option to repay them slowly with he courts protection may seem tempting but be warned, it can have long term effects on your life in terms of credit, mortgage rates and credit card offers.

Filing for bankruptcy

The first thing you should do is seek the services of a reputable bankruptcy attorney. Your local or state bar associations should be able to refer you to one. When you go meet the attorney, remember to take all your financial documents such as bank statements, paycheck stubs, copies of any mortgages and car loans and any outstanding bills.

Your petition (bankruptcy paperwork) must contain every debt you owe. If you’re found lying in your petition, even by inadvertent omission, you could be fined or sent to jail.

Your attorney will ask you about your secured debts; these are debts in which creditors hold a security interest in your unpaid assets such as mortgages and cars, if these are unpaid, they can be repossessed. He will also ask you about your unsecured debts such as credit cards and various bills.  Some debts which don’t get removed by filing bankruptcy are child support, delinquent taxes and student loans.

You must disclose any earned income within the last six months otherwise your case will be rejected. » Read more: Finances: Declaring Bankruptcy

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Finances: Can Bankruptcy Stop Foreclosure?

March 15th, 2010

By Victoria Knight

Victoria Knight V2Greater numbers of people are looking for ways to save their homes from going into foreclosure. The housing market and over-extended borrowers have created the perfect storm, leaving many people trying to save their homes. Many people look to consolidation, debt management, finding good money market rates for borrowing and other means to try to free up monthly income. Sometimes the debt is still too much, house payments get missed and then the notices start arriving that foreclosure proceedings have begun. Understanding how bankruptcy can affect the foreclosure process is key to figuring out what avenue works best for you.

For most people, there are two types of bankruptcy. The one that most people think about is Chapter 7. In a Chapter 7 bankruptcy, all debts are frozen while reviewed by a court. The court decides what debts can be dismissed and what assets must be turned over to satisfy other debtors. The most common bankruptcy type that is actually filed is Chapter 13. Chapter 13 bankruptcy allows the borrower to make payments to the debtors. It is a way of trying to stop legal action and regain control over the financial situation. Both types of bankruptcies have the desired effect of stopping bankruptcy, but there are key differences.

When a person files for bankruptcy, all legal action and collections are stopped by a ‘Stay’ order. This is a court order that does not allow creditors to pursue further debt collection or legal action against the borrower. This order is what stops foreclosure. The lender must appeal to the court to have the Stay order lifted. It is important to remember that you are living on borrowed time during the period of the stay order. It is during this time that you must make arrangements for your home.

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