Thursday 31 January 2013

How to Go About Converting a Bankruptcy Case to a Chapter 13 or Chapter 7 One?

In the recent times due to the economic slowdown and job cuts many individuals have been forced to file bankruptcy to get rid of creditors. Most individuals opt for filing bankruptcy under Chapter 13 in a bid to avoid the stricter Chapter 7. Chapter 13 of the bankruptcy law allows you to keep your belongings. In worst situations you might need to convert or rather be forces to convert to Chapter 7. Here we shall take a look at some of the common questions that cross your mind while converting Chapter 13 to Chapter 7.

Why Convert Chapter 13 to Chapter 7?

You might need to do so when your financial circumstances change and you are unable to make payments under Chapter 13. Alternately you might have opted for Chapter 7 to save a certain property but in the present circumstance you no longer wish to keep this property. However there are situations when the courts force you to convert to Chapter 7 and this is often termed as forced conversion. This happens when

  • You file a Chapter 13 plan on time or fail to make payments.
  • Cause unreasonable delay harming the cause of your creditors.
Is There Any Restriction on Conversion?

The law allows every individual to convert a Chapter 13 bankruptcy case to Chapter 7 at any time. However there is one major restriction you cannot convert to Chapter 7 if you have benefitted from a Chapter 7 discharge within the last 8 years.

Can I Qualify for Chapter 7 Bankruptcy Relief?

Whether or not you quality for the Chapter 7 bankruptcy relief will depend on certain grounds of eligibility. The biggest among all of these eligibilities is what is known as a Mean Test. Under this your income and expenses will be evaluated and the court will determine if you can pay some of your debts under Chapter 13. In case you can found to be able to do so you cant qualify for Chapter 7. However there are some cases where judges have allowed conversion of Chapter 13 to 7 despite the debtor failing the mean test. Needless to say if precedence is anything to go by in converted case the discretionary power of the judge does play a major role in deciding whether you can get your case converted from Chapter 13 to 7.

I Failed The Mean Test Earlier Can I Pass It Now?

Mean Test evaluates your financial circumstances. You might have failed to pass the test earlier but if your financial circumstances have changed you can pass this test.

What Is The Filing Procedure For Converted Cases?

In most cases the bankruptcy petitions that you filed during Chapter 13 become a part of your case when you seek to convert it to Chapter 7. However you can also amend it and list the debts that you have incurred in the after filing your Chapter 17 case. You will also have to file a Statement of Intention where you outline your plan with secured debts.

The smartest thing to do would be to seek help form a bankruptcy attorney who will guide you in the case.

Attorneyforbankruptcy.com is a leading law firm of California where you can hire most experienced california chapter 13 bankruptcy attorney and medical bills bankruptcy

Friday 25 January 2013

What are the various alternatives available to bankruptcy that can be considered before filing a suit?

Bankruptcy is a social stigma that is best avoided by the people of America. It is the last option people resort to. Everything has its pros and cons, but bankruptcy has more negatives than positives. The procedure involves you to make a public declaration that you are not able to handle your own finances. Also, you need to declare all your possessed assets and the bankruptcy courts take up from there with the supporting documents. Bankruptcy instigates a permanent damage to your credit report and the record remains for atleast seven years. Together with this the costs of fighting a legal battle are huge and the appropriate Chapter of bankruptcy that will pardon off most of your debts is hard to qualify for. People are lured in by the attractive loan rates and thus forget to maintain the balance between the monthly income and expenditure.

What are various reasons to find alternatives to bankruptcy?

Well, loss of assets after filing the suit is the main cause for people to look for greener pastures. Your fate is decided by the magistrate who passes the judgement on the basis of the information received by the Official Receiver. The stains of a previous suit filed won't allow you to get fresh loans and start a new life. The effects of bankruptcy can also be found on your personal as well as professional life. Even your social life gets affected. All these reasons are enough for you to try out some alternatives available to bankruptcy, so that you can make both ends meet.

There are various possible alternatives available which you should consider before filing bankruptcy. They are discussed below.

Counselling of your Credit:

If you are on the look-out for an alternative, then you should consider Consumer Credit Counseling Service (CCCS), which is a specific type of debt management plan. Under this program, you have to make a payment to the CCCS firm, which in turn distributes the payments to your enlisted creditors. The main function of this firm is that it negotiates for lower rate of interests with the creditors. This in turn reduces your payments and adds more to the principal balance. For people paying a high interest rate this is a sure shot bet. The entire process of becoming debt-free is hastened. A CCCS program entitles you to pay 100% of your debts, plus the interest. The burden is not entirely removed, but the responsibility has just shifted. You are required to make a timely monthly payment. So, choose the correct option before proceeding. The statistics support the trend of people dropping out before completing the entire program. An average program might take upto five years. Although the program does not have a negative impact on your credit score, it is included in it and affects your credit rating during the tenure of your program enrollment. A bankruptcy lawyer practising in California will provide assistance to all your queries.

Settlement of Debts:

Debt negotiation is a form of debt consolidation process that reduces the total amount of debt. You can end up saving as much as 50% and your monthly payments will also get reduced. This program is brought into practice for people who face difficulties while paying their regular bills or start lagging behind. The average time taken for debt settlement to complete is three years. The entire tenure though does not require you to pay your creditors. This can have an adverse effect on your credit rating during the entire term. To avail a fast and cheap way to get rid of all the debts you can give it a shot. If you are trying to avoid Chapter 7 bankruptcy, then this process offers you a low monthly payment. A consumer debt consolidation attorney will take care of all the formalities on your behalf.

Assets Liquidation:

This is a great option to consider if you want to settle and clear out all your debts. Before going ahead, you should make a check for the tax implications for liquidating that asset. Also, you should enquire whether or not the court will hold that asset against you, if after all you file a bankruptcy suit. For example, you should not go about liquidating your retirement accounts as they are discharged if you file for a suit later on. Also, you would incur taxes and penalties by drawing them earlier than the term, plus you have to still end up paying the entire debt. Even equity in cars or property are exempt from collection by creditors if you have filed for bankruptcy. A debt consolidation attorney in California will bail you out with all the legalities involved.

Debt Consolidation Loan:

Theoretically, this is considered a good alternative, but in practice things are different. Many people are of the opinion that bankruptcy does not give you access to have enough equity to borrow against or does not have enough credit to access the equity, if it ever exists. For example, having an equity in a home will be effective in refinancing your mortgage to pay the debts, before you lag behind. Loans have become tough to get by, as there has been a tremendous change in the lending requirements. The lenders take into knowledge the debt-to-income ratio before dispatching any loan.

The above-mentioned procedures are some of the best practices which can be followed by people as alternatives to filing bankruptcy. There are many more methods available. To get a detailed insight you should contact an attorney to satisfy all your problems.

This post is shared by Attorneyforbankruptcy.com, which a leading law firm of California. Here you can have detailed information on california chapter 13 bankruptcy attorney and consumer dept consolidation.

Tuesday 22 January 2013

A Foresight into the Bankruptcy Filing Trends for 2013

According to recent statistics, there had been a downturn in the number of bankruptcy cases to be filed in 2012. That's some good news upfront, but on the contrary a bad one too for the people who are attached to the filing procedures. On putting an enquiry across different lawyers about the trend of filing cases in 2013 you will get different opinions and arguments. 

The general theory - for an economy to grow, the people residing in it must take risks for their businesses. This results in an indirect increase in the number of bankruptcy cases. The more debt people accumulate, the more reasons for them to go bankrupt. 

This can be the general idea of the common man. But, you can always have situations where you owe money to some people. So, whether you borrow money or not, you can always end up getting bankrupt and then filing a suit. Unpaid bills like medical care or rent, negligent accidents on your part, or a breach of contract can all lead to grim situations. The main concept that brings a variation in the volume of cases is that consumers incur debts and have difficulties paying them back.

The last quarter of 2012 has seen a resurgence in the economy trend and also in the spending capacity of consumers. There is a gradual growth and not an exponential one, though. The holiday season saw a dull retail sale sector, which did not have good numbers to boast of. Banking institutions also pulled back the latch on their credit card offerings during this period. Barring the student loans sector, there hasn't been an increase in the consumer borrowing as well. Thus, the economy is recovering, but in small footsteps. In other words, people have become comfortable spending money, but not when it comes to borrowing money. 

That's not a fair deal on the part of the economy as well. The American economy, like its Western counterparts, thrives on borrowed money. The trend goes that the consumers should continue to borrow for maintaining hard assets- buying stuff- and not just for consumption purpose. This will ensure that their households as well as their businesses will thrive in the long run. The geographical landscape has over 100 million households, so there will be at least 1-2% out of them who will falter and fail to balance their accounts as a result of financial ups and downs. 

There was a decrease in the numbers due to changes in the law structure as well. The way credit card debt is accumulated and collected has changed. An end to "universal default" clauses has prevented families from upheaving interest rates on debt payments. This has made life easier. This means fewer number of defaulters, less collection calls and less lawsuits filed. The government has been indirectly forcing the banking institutions to adopt a more lenient lending structure that is easy on the part of the consumer as well. For more insights on the rules you should contact a Bankruptcy Lawyer in California. 

There is a theory that is dominating the minds of bankruptcy professionals in 2013. According to this theory, there will be a rise in the number of filings this year. The reason to support this is quite an obvious one. 2013 is exactly eight years after the bankruptcy amendments came into being, in 2005. The people who had been waiting to beat the odds and file Chapter 7 bankruptcy can now do so. To get assistance for cases contact San Jose Chapter 7 Bankruptcy Lawyer. 

The above theory can only be held true if the ones fighting for bankruptcy haven't lost patience and filed for Chapter 13 otherwise. There's a connection between some analysis as well. Bankruptcy volumes will see a surge with an increase in consumer credit expansion. So, the more the people borrow, the more the chances of them getting bankrupt. 

Attorneyforbankruptcy.com is a leading law firm of California where you can hire most experienced san jose chapter 7 bankruptcy lawyer and tax relief lawyers.

Monday 21 January 2013

What are the Myths that Surround Bankruptcy Laws: An Insight

Thousands in California file for bankruptcy throughout the year. This is due to the fact that they want to get rid of the debts and loans that have accumulated and can't be repaid.

Some are of the impression that filing for bankruptcy will hamper them in the future, some are of the opinion that they will never be able to ask for credit anymore. Normally the thinking that surrounds is that a person who can't resist the temptation of using credit cards generally files for bankruptcy. Though the actual reason might vary from person to person, the myths baffle everyone.
Below are some of the general myths that you might come across before filing for a bankruptcy suit:

Filing for bankruptcy will make me lose everything:
The first myth that needs to be removed from the minds of people is that filing for bankruptcy will make them lose every asset of theirs. This misconception is not true. Though the laws vary from state to state, there are some exemptions present in every law. Some assets are protected such as your house, your car to a certain value, household items, clothing, etc. Money can also be saved in terms of qualified retirement plans. If you are buried under a mortgage or a car loan, you can use them as long as you make the payments.

Will I ever get credit again?
Yes, you are entitled to get credit again together with offers from credit card companies. It won't be long before you are approached and thronged with such offers. Having a credit card with zero balance, on the day you file for bankruptcy, will do you no harm. This is due to the fact that you don't have to include it into the creditor's list as you don't owe any money on the card. This enables you to use the card even after bankruptcy.

Bankruptcy is generally filed by loser or failures:
This myth affects many. Bankruptcy is generally filed by people who undergo a life-changing experience. Going through a divorce, loss of a job, a serious illness or accident and reduction of income can result in people filing for such cases. Such people have unpaid bills accumulated for months on a trot and don't have a resurgent idea as well. Bankruptcy is their last option for relief as the debt can be erased which cannot be repaid.

What will everyone, related to me, say if I file for bankruptcy:
Don't be of this impression. Until and unless you are a prominent figure constantly tracked by the media, your filing a case will be known only by your creditors or people close to you. Though bankruptcy is a public record, one has to check the court records or legal newspapers to keep a track of you and this is unlikely to happen as the number of cases being filed is huge.

It's tough filing bankruptcy:
Getting in touch with an experienced California Bankruptcy Lawyer can solve your concerns forever. The attorney takes the pain in filing all the details on your behalf. So, the basic concern is to get hold of a good attorney.

Can I file for bankruptcy again?
Yes, you can. You can go about filing for Chapter 7 bankruptcy once after a gap of eight years. Where Chapter 13 is concerned you can file more often than not. The only hitch, not more than one case can be filed at the same time. You can file a Chapter 13 case after Chapter 7 one and don't have to play the waiting game for 8 years. For more solutions contact a Bankruptcy Lawyer in California.

Bankruptcy gets rid of all my debts:
This situation is true when a Chapter 7 case is filed where almost all debts, barring some are wiped out. Debts for child support and alimony, student loans, debts incurred as a result of fraud or drunken driving are in the list that can't be erased totally. Also, if you have defrauded someone and there has been a judgement against you, the debt won't be settled.

I can use my credit cards, file for bankruptcy and never pay for the things I've purchased: This is practically a very grim situation as this can go against you and can be considered a bankruptcy fraud by you. There can be a legal judgement that you might have to face as creditors can object to it and if it is proven then the entire case may get diluted.

Above are some of the myths that surround bankruptcy laws and are often seen to scare people. Citizens consider them to be real and go against filing a bankruptcy suit. Don't feel afraid and contact a San Jose Chapter 7 Bankruptcy Lawyer to get proper assistance and solutions for all your queries.

Attorneyforbankruptcy.com is a leading law firm of California where you can hire most experienced california chapter 13 bankruptcy attorney and tax relief lawyers.

Tuesday 15 January 2013

How to tackle Credit Card Debts Before filing for Bankruptcy?

In the present scenario, it is common to have credit cards. Taking loans over your credit card is quite obvious and this can sometimes land you in tough times ahead. Citizens opting to file for bankruptcy in California should take notice of this aspect as well. There are many queries that can crop up in your mind while using your credit card, just before filing for bankruptcy. The first one that takes space is:

"When should I stop paying my credit card debts?"

Well, the answer to the above is immediately. If you are making payments towards your credit card debts and simultaneously filing for bankruptcy, then you are doing no good to your money. In fact, you are just wasting the amount.
Wait, Wait..! There are some consequences that you should go through before considering to stop making your payments.

The first priority of a client is to get in touch with a bankruptcy lawyer in California. You should work out the details together with the prospective date of your filing the suit. This is important as every individual will not qualify for the same bankruptcy case. Some will have to qualify for Chapter 7 case first, or might have to decrease their payments if involved in a Chapter 13 case. Filing for bankruptcy within 30 days will have a less impact. Some might have to postpone their filing to eliminate a preference payment issue. So every case has its own dimensions and solutions. 

The second scenario is that if you miss one payment towards your credit card, then you can expect collection calls to start troubling you. Creditors will start making calls to each and every place, wherever they have a probability of finding you. Your lapse can be their gain and can cause additional trauma on your mind. The creditors know this and thus tend to create more pressure on you. Once you have filed for bankruptcy, these calls will stop automatically. 

Thirdly, your credit score gets damaged on your missing a payment. Filing for bankruptcy will do no good to your credit score either, but missing a payment can cause further damage. Some attorneys are of the opinion to stop making credit card payments for six months or longer on a trot until there's a legal judgement pending. Though bankruptcy puts a final stop to lawsuits, collection actions and discharging of the credit card debt, there is no relief from your previous shortcomings.

Lastly, you might not be interested in filing bankruptcy as time progresses. You might stop making the payments and later on change your mind. On doing so, you will have to face late payment fees, default interest rates and harassment. So, file your suit before you stop making the payments. 

Tackling credit card debts requires experience. So, you should get in touch with a California Bankruptcy Lawyer before taking any decision. Expert assistance is provided with reviews over your finances and solutions for delay in filing your bankruptcy.

Contact Attorneyforbankruptcy.com to hire professional bankruptcy lawyer in california. Here you may hire most exprienced tax relief lawyers and also get detailed information on debt consolidation in california

Friday 11 January 2013

What are the Hazards Involved in Filing Chapter 7 Bankruptcy Without an Attorney?

Recent statistics have thrown light over the fact that about 9 percent of the Chapter 7 bankruptcy cases filed are done without hiring an attorney. For a majority of the procedure involved in filing the suit, without the attorney, it is noticed that clients are using paralegal or typing services. But, they are not allowed to advice you legally. All that they can do is to type the forms involved and charge a maximum of $200 for the service. 

Filing for a case where you represent yourself is not that easy. You don't have the legal know how on how to go about dealing with the situations. Even a complex case of Chapter 7 bankruptcy can be handled better if a California bankruptcy lawyer is involved.

Underneath are listed some of the problems faced by individuals while filing bankruptcy without taking aid from an attorney. They are:

Prebankruptcy Analysis:
  • No need for filing a suit: Some people lack the basic know how on the purpose of filing a suit for bankruptcy. They don't have a clear understanding of what all is involved in filing a case and what impacts can this have on their lives.
  • Lack of legal know how: People lack the basic knowledge on which chapter of bankruptcy to file on. Basically there are two chapters involved, Chapter 7 and Chapter 13, but both vary and have important differences. You should therefore have a proper know how on which one to file under, as a wrong choice may land you in losing valuable property assets or you might not be able to discharge certain debts.
Paperwork Disabilities:
  • Failure of filing proper documents: Recent findings throw light over the fact that self-represented cases lack proper filing of documents. Copies of the original bankruptcy forms are available online and you can get those printed for your filing convenience. But, many courts have their local rules and forms. So, it is advisable for you to check out the local courts for your benefit as well.
  • Choice of inappropriate property exemptions: Chapter 7 and Chapter 13 deal a lot with property exemptions. Common state and federal exemptions are available on the Net, but it is advisable to go through the current state law exemptions as well. Filing on your own involves all these considerations to be taken into notice by you.
  • Credit counselling and financial management are not the same: Chapter 7 and Chapter 13 require you to receive credit counselling from an approved jobholder before filing the suit. You also have to undertake a financial management course before getting a discharge. There is a common failure to understand these legalities and produce the appropriate certificate. This can lead to a situation where your petition can get dismissed or you might not get a discharge.
Easier said than done, filing for bankruptcy on your own involves a lot of risks and hazards. This calls the need for you to contact a San Jose Chapter 7 Bankruptcy Lawyer for all the legal assistance. There are some more hazards involved which can be best explained on taking the appropriate advice from experienced professionals. 

Attorneyforbankruptcy.com is a leading law firm of California where you can hire most experienced san jose chapter 7 bankruptcy lawyer and tax attorney san jose.

Wednesday 9 January 2013

What are the various grounds that provoke people to file bankruptcy?

Filing bankruptcy is the last measure an individual can resort to if he/she is not able to pay the debts at all. It is the extreme step taken, to save the insult that an individual has to go through, for not being able to repay the loans taken. You generally tend to use this method when the amount to be repaid exceeds your income. Getting declared bankrupt is a viable practice as the government then takes control of the pending debts and liabilities. Generally, there are two ways of filing bankruptcy namely, Chapter 7 and Chapter 13.

Chapter 7 is a commonly used practice for filing bankruptcy. It deals with the situation where a debtor can sell-off its assets and pay back the creditors. Chapter 13 on the other hand, allows you to keep your assets and pay the loans at a lower interest rate or at no interest rate at all.

Enlisted below are some of the main reasons that provoke people to file bankruptcy.
  • On the Grounds of Medical bills: The commonest of all reasons that invoke a sense to file a suit, is the increasing number of medical bills. According to recent studies by Harvard University and published in the journal Health Affair shows that 62% of all the personal bankruptcy cases filed are due to medical bills. This is the case because the limit up to which you are medically insured has exceeded. Savings are also wiped out as a result. The last option available is to file medical bill bankruptcy.
  • Due to Unemployment: This reason gives rise to various other reasons for filing bankruptcy. Economic downturns easily affect your work status and can lead to unemployment. Loss of work can have adverse effects on your mental as well as emotional stability. This loss in income reduces the ability to pay your bills and debts on time and thus affects your credit score. So, you should opt for filing bankruptcy instead of exhausting your savings.
  • Marital Distress: Sometimes the reason to file bankruptcy is divorce. On dissolving a marriage, both the petitioners tend to get affected leading to a situation where the debts increase and there is a simultaneous loss of income as well. Even the liabilities are reduced to half. Together with these, there is child support, alimony and legal fees involved. All these leads to high mental stress. Largely, the debt loan is not equally divided and the burden falls on a single spouse, forcing him/her to pay the entire amount.
  • On the Basis of Credit Cards: Excess usage of credit cards can also result in adverse situations. These situations can further lead a person to file a case of bankruptcy. Credit cards create a tendency in people to spend more than they can actually do with real cash. This leads to excessive spending. In addition to  this, high interest rates and late payment fees increases the amount of debt incurred and adds to the burden.
  • Business Overturns: Several companies crop up and several close down every day. Business decisions gone wrong and horrible ventures can lead to situations where you will have to file Chapter 7 bankruptcy. Flow of money is severely affected in all cases. This can lead to closing down your business and hence resort to getting declared bankrupt.
The above stated reasons are commonly seen and observed for people to file bankruptcy. Proper knowledge on all the legalities involved is limited. This calls the need to contact an expert Bankruptcy Lawyer in California.

This post is shared by Attorneyforbankruptcy.com, which a leading law firm of California. Here you can have detailed information on california bankruptcy lawyer and consumer dept consolidation.