Help Filing Bankruptcy

When consumers seek help filing bankruptcy, one of the first questions asked is, "What happens to my credit if I file for bankruptcy?".  This is a very serious concern, and one that you need to discuss thoroughly with a financial planner or a bankruptcy attorney.

For many, the thought of having their credit destroyed is understandably devastating.  Many of us have worked hard over the years to pay our bills on time, often paying at least the amount due, if not a bit more, or even the amount in full each and every month.  However, with a tough economy, lay offs in a variety of industries, rising medical costs and so many other financial and economic burdens and hurdles we are met with, even the best credit consumer can find themselves unable to juggle their monthly bills.

Furthermore, you should make sure that you have exhausted all of your alternatives to bankruptcy and ask you bankruptcy attorney how to avoid bankruptcy all together. 

Generally, bankruptcies have a life span of 10 years on credit files. After it has exceeded this time frame, it ought to be deleted from one’s file, but since the reporting bureaus and the creditor that furnished the account with them do not get any benefit for deleting it, naturally it becomes your own responsibility to ensure that it is removed.
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Help Filing Bankruptcy answers, "What is Chapter 13"?

• Chapter 13 is often referred to as “reorganization” or “consumer reorganization”.
• Chapter 13 is often selected by debtors who have valuable assets, such as their home and home equity, that is not covered by exemptions and that they want to   keep.
• In Chapter 13, a debtor creates a “plan” in which they will repay creditors via a trustee over a set time period, generally three to five years.
• A confirmation hearing is held in which the court will either approve or disapprove of the plan.
• In this plan period, the debtor will pay creditors overdue payments on assets and pay into the plan the equivalent value of any assets not covered by exemptions.
• Chapter 13 is a bankruptcy ideal for debtors who are employed and/or have an ongoing source of income to make the scheduled payements as per the plan.
• In Chapter 13, the debtor maintains possession of the property of their estate while they are making the payments for the duration of the plan.
• With Chapter 13, there is no immediate discharge of the debts.  Payments must be completed before the debt is considered discharged.
• While the debtors is making payments on their plan they are protected from garnishments or lawsuits from their creditors.
• Chapter 13 takes a considerable amount of thought and careful planning with a bankruptcy attorney to assist you with weighing the options.

Remember, these are generalities about Chapter 13 Bankruptcy.  Contact a bankruptcy attorney in your area for more specific information.  Furthermore, some states have bankruptcy laws that differ from federal laws that you need to be aware of to ensure that you make a sound, informed decision about how to best deal with your debt and your financial future.

Help Filing Bankruptcy answers, "What is Chapter 11"?

• Chapter 11 is usually referred to as “reorganization”.
• Chapter 11 bankruptcy is available to any business, whether a corporation or sole proprietorship, and to individuals, although it most commonly used by corporate entities.
• In Chapter 11, in most instances the debtor remains in control of its business operations as a "debtor in possession" but is still subject to the oversight of the court
• In Chapter 11, as a general rule the secured creditors, the creditors who have collateral or some kind of security interest in the property of the debtor, will be paid before unsecured creditors.
• In Chapter 11 it is possible that the business’s debts exceed its assets, and the bankruptcy restructuring results in the company’s owners being left with nothing.  At this point, the owners’ interests and rights are severed and the company’s creditors are left with ownership of the newly reorganized company.
• With Chapter 11, the court can grant complete or partial relief from most of the company’s debts and its contracts.
• Debtors may "emerge" from a Chapter 11 bankruptcy within a few months or within several years, depending on how the size and complexity.
• Under Chapter 11, the creditors have to end all collection attempts and post-petition collection is null and void.  This “automatic stay” is available under other bankruptcy filings as well.
• A Chapter 11 filing usually cases the company’s publicly traded stock to be delisted from its primary stock exchange like the NYSE, American Stock Exchange or the NASDAQ.
• Also, in most cases, the Chapter 11 plan, when confirmed, terminates the shares of the company, meaning the shares have no value.
• Chapter 11 bankruptcy cases are typically far more complicated and bankruptcy attorneys are needed to unravel the more complex debts, assets and inner workings of a company.

Remember, these are generalities about Chapter 11 Bankruptcy.  Contact a bankruptcy attorney in your area for more specific information. 

Help Filing Bankruptcy answers, "What is Chapter 7"?

• Chapter 7 is usually referred to as a “liquidation” of assets or “straight bankruptcy”.
• Chapter 7 is a court-supervised procedure in which the assets of the debtor is converted to cash (liquidated) and distributed by a trustee to the creditors.
• Exemptions are made for certain types of property.  For example, used household goods and personal effects are typically exempt as they typically have low resale value and would not be easily liquidated.
• Most Chapter 7 cases everything is considered exempt as the debtor has no significant nonexempt property and there are few assets to liquidate.  This is referred to as a “no-asset case”.
• If a debtor has significant assets to maintain and protect, they can discuss this with a bankruptcy attorney and possibly opt to file Chapter 13.
• Debtors can attempt to convert nonexempt property and their value into an exempt value, however, this takes careful planning as courts can look at this as attempting to defraud the creditors and this can negatively impact the debtor’s ability to obtain a discharge.
• Most Chapter 7 cases leads to a discharge for the debtor that releases them from any personal liability for certain dischargeable debts.  Some exemptions to the discharge can include child support, student loans and criminal fines and/or restitution.
• Typically a discharge is received within about 90-120 days after filing the Chapter 7 petition.   Some exemptions to the discharge can include child support, student loans and criminal fines and/or restitution.
• Chapter 7 can also be filed by a business which then ceases operations and a trustee sells all of its assets and distributes the proceeds to its creditors.
• Discuss your Chapter 7 options with a bankruptcy attorney.  Some states have different definitions of exempt and nonexempt property, for example, so legal counsel is important.
• Filing Chapter 7 will impact your credit, your ability to obtain loans (and certainly loans with advantageous interest rates) and even future employers will be informed when they include credit checks in the background check they perform for potential employees.

Remember, these are generalities about Chapter 7 Bankruptcy.  Contact a bankruptcy attorney in your area, for more specific information.  Furthermore, some states have bankruptcy laws that differ from federal laws that you need to be aware of to ensure that you make a sound, informed decision about how to best deal with your debt and your financial future.

Help filing bankruptcy starts with knowing if you should and could file for bankruptcy.  Bankruptcy is a serious step, it has long term impact on many aspects of your financial life and well-being.  All alternatives to bankruptcy must be seriously explored and you should know if you can and how to avoid bankruptcy if that is possible.

However, for some consumers, they are at the end of the road, and they have exhausted other solutions to their financial problems.  In this case, your best bet is to consult with a bankruptcy attorney in your area, one that can work with you on how to best address your debt and explain how your situation will work within your state’s bankruptcy laws.

Remember, you are not alone.  There are many consumers that have and will emerge from bankruptcy with a fresh start and a completely different outlook on life, debt, finances and much more. 

Before filing for bankruptcy, it is always advisable to consider all the other available alternatives that may work for you. They include talking to your creditors and having them agree to accept a lesser amount as the total debt settlement.
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Help filing bankruptcy gets no more basic than helping you find the right attorney for your financial situation and potential need to file bankruptcy.  This will be the person who helps walk you through not only an emotional process, but a process that can be complex and complicated as well.

While the following information is tailored to a Dallas resident who is looking at how to file personal bankruptcy, much of this information is truly universal and you need to ensure that you find a good bankruptcy attorney in your area who can walk you through your state’s bankruptcy laws, as they may differ from the federal bankruptcy laws.

Furthermore, a good attorney will ensure that you indeed understand that there may be alternatives to bankruptcy and they can provide you with resources on how to avoid bankruptcy proceedings.   

Bankruptcy is a heartbreaking situation, and in these difficult economic times it is no surprise that many people who thought they were financially solvent are now finding themselves in situations where they have to declare bankruptcy. If you are a Dallas resident and find that you are faced with the definite or possibility of having to declare bankruptcy, you might want to consider hiring a bankruptcy attorney to assist you. You can do a bit of research using the Internet, where you will find sites for many Dallas bankruptcy firms.
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Even if you have previously filed for bankruptcy, you may need help filing bankruptcy a second time.  These are tough economic times for many consumers and business owners alike.  It is possible to declare bankruptcy a second time, discuss your questions and concerns with how to file personal bankruptcy with a bankruptcy attorney in your area.  

You may also want to understand how you may be able to avoid bankruptcy and what alternatives to bankruptcy exist for your unique situation.  Bankruptcy laws do differ state to state so you need to ensure you are well-versed in the bankruptcy law of your state, and well-represented for the legal side of your bankruptcy filing. 

If you’ve filed for bankruptcy before, and have found yourself in more financial trouble, you may wonder if you can file again. Find out the rules for filing a second bankruptcy here.
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Help Filing Bankruptcy presents the following article that outlines what the bankruptcy court process entails.  If you have more questions about bankruptcy, you can consult any of the resources on our site or contact a bankruptcy attorney in your area for more information.   

In the United States, bankruptcy court is operated as part of the Federal judicial system. However, it is important to understand that every state has their own laws relating to bankruptcy. This created some unbreakable barriers for creditors and debtors when they were dealing with different states. As a result the Federal system was designed to take a higher power than any such state laws. This is the reason why every person or business who files for bankruptcy has to do so in Federal Court.

Right now the Federal system operates in 94 judicial districts. Each district is responsible for bankruptcy court for a specified area of the United States, Washington DC, and Puerto Rico. Federal judges are appointed for each judicial district by the United States Court of Appeals. Their goal is to take the individual circumstances into consideration and then apply the state rules as well as the Federal rules that apply.

They are responsible for determining the process of liquidation relating to a person’s or businesses debts. Each Federal judge is appointed for a period of 14 years and then reviewed for another term after that. They also decide if the bankruptcy should be classified and operated in the civil or criminal division. Once that decision has been made the case is placed on the docket for a hearing to take place with both the debtor and the various creditors.

Almost all cases involving bankruptcy are classified as civil matters. There are some exemptions that have to be taken into consideration though. If the debt has resulted in a criminal act taking place by either the debtor or the creditors it can be prosecuted to the full extent of the law. Sometimes if the debtor was involved in a criminal act to get the accounts then it will be assigned to criminal court as well. Such cases are then assigned to the criminal division.

More than 1,650,000 cases of bankruptcy were filed in 2005 with almost all of them being assigned to the civil division of a Federal bankruptcy court. You will need to seek the assistance of legal counsel to file the bankruptcy on your behalf in the Federal court. From there a review of your case will be scheduled.

By: Caleb Liu

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