Bankruptcy Classifications: Rules And Regulations To Note

Your decision for bankruptcy has been swayed by the multiple threatening phone calls from creditors and the stress developed due to debt. As you start to contemplate bankruptcy, many concerns fill your head, such as how it will change your future finances and especially your lifestyle. Many of these issues and worries can be answered by visiting a bankruptcy attorney, but even before you see a lawyer, you may want to familiarize yourself with basics of bankruptcy.

Bankruptcy Basics

The type of bankruptcy which you may register for will depend on your financial circumstances, but you will file under Chapter 7, 11, 12 or 13 depending on your qualifications. Most people who have personal financial dilemmas not tied to a business or a farm will file under Chapter 13 or Chapter 7. In order to stop any further phone calls or vicious letters from creditors, the court will provide you a restraining order once you register for bankruptcy. In addition to the restraining order, you will be forced to attend a mandatory credit-counseling class in order to help you handle your finances. As you visit with attorneys, you will see that they each will convey the same information, no matter if you visit a Downey or a Thousand Oaks Bankruptcy Attorney; this information is standard. Registering for bankruptcy has some drawbacks to it as well in regards to future finances. Most people who file for bankruptcy will find it complicated to open a new bank account, obtain a loan or purchase a new car. While bankruptcy may stay on your credit history for 10 years, it will eliminate a big amount of stress and huge debt, and increase the longevity of your health, which money cannot give.


Chapter 13

One of the most common kinds of bankruptcy, Chapter 13, is created for folks with a fixed income. Individuals who file for Chapter 13 bankruptcy will be allowed to keep their home, car and belongings, so long as they pledge to obey the court-approved repayment plan. The repayment plan is structured in order to help you provide the minimum payments without any hassle, but any missed payment can produce future consequences that your attorney will notify you of.

Chapter 7

Individuals who do not have a steady income, but a large amount of debt may qualify for Chapter 7. Individuals who petition for Chapter 7 will have all their debt wiped clean, but have their belongings sold off in order to settle some of the debt. Not all debt can be wiped clean by Chapter 7, such as a student loan or child support, as this is debt that must be reimbursed. Regardless of whether you visit a Simi Valley Bankruptcy Attorney or a Norwalk attorney, you will get all this information.

Rob R. Nichols is a Thousans Oaks bankruptcy attorney serving the San Fernando Valley. Nichols is a great Simi Valley bankruptcy attorney with fees as low as $795.00.

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The Country Remains In Danger - Bankruptcy Is A Means To Keep Up

It seems like the country has been on a hypothetical financial roller coaster currently as the unemployment rate began to decrease and individuals were starting to find stability once again, but the floor looks to have fallen out from beneath us as government spending and our national deficit have had a major effect on the job market as well as most every company out there.

People are still looking for a way out of financial disarray, and are running out of choices as we arrive at the fact that the worst might not be totally behind us. For those that still are not experiencing the relief they were hoping for, bankruptcy might be a realistic answer to help you get your debt under control and provide for your loved ones, while keeping as much of a secure and stable life as you can.


Conferring with a Woodland Hills bankruptcy attorney who can go over all of your options and decide with you if bankruptcy is the best choice is the first step to fortifying the financial safety of your loved ones. From there, you file the required forms with the court and start to work on your repayment plan, where you list the entirety of your income versus expenses, and how much you owe your creditors, and based on those figures, come up with a comfortable budget.

Though you will be covered by the umbrella of bankruptcy, and it could be frightning to imagine that looming over you for the following couple years; it's a place where you might feel more comforted, and less worried about how to make ends meet while dealing with your creditors. Ensuring that you're not by yourself, and helping you with any problems that could surface, a North Hollywood bankruptcy attorney will help you every step of the way while making your way through the bankruptcy process.

The most important thing is to help get you out from under a mass of debt, and do so in a way that may secure your financial well-being that much sooner without thinking of bankruptcy as a negative option. By thinking more about what's ahead, and less about how terrible it may seem at this point in time, you should provide yourself a better outlook when it comes to bankruptcy and what that could mean to you. By making the decision and filing now, you can save yourself a lot of heartache and stress, and still come out on top when it actually counts, so consider your options and do what is really best for you and your family.

Rob R. Nichols is a Woodland Hills bankruptcy attorney serving the San Fernando Valley. Nichols is a great North Hollywood bankruptcy attorney with fees as low as $795.00.

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How Divorce And Bankruptcy Are Related

Financial situations are often the cause of many marital problems, but for certain couples, claiming personal bankruptcy before divorcing may help them get their financial life back in order. For some there remains a poor stigma about personal bankruptcy, but if financial issues are part of the dissention in their partnership, bankruptcy can certainly make dividing up any marriage assets simpler.
Generally, before a couple goes through their divorce, they'll sit with their legal representatives to ascertain how any assets, in addition to liabilities are separated. Based on the kind of liabilities they've accrued over their marriage, filing for bankruptcy, as a couple, can lessen the quantity of liability one or both partners will shoulder throughout the proceedings. Nevertheless, if one partner has far more individual liability than the other, that individual may consider bankruptcy alone.
That's where it can get sticky, as the individual bankruptcy court may think bankruptcy by one of the partners is only an effort to hide assets that may otherwise be subject to the division of any assets. Since child support, spousal alimony and many other financial responsibilities can't be cleared during personal bankruptcy, couples find it much easier to go through with their bankruptcy before they declare divorce.
Frequently, when bankruptcy is finished, the couple will end up with fewer assets to split during the actual divorce. Also, some lenders look at the bankruptcy and up coming divorce as mitigating situations when one or the other applies for a financial loan. That is not to say credit will likely be readily extended, as the individual bankruptcy will place a mark on the two party's credit scores, however, some will be a little more understanding regarding the cause of bankruptcy.
Since credit reporting agencies are required to maintain separate credit history files on both spouses, if one declares bankruptcy, it may possibly not affect the other's credit worthiness that drastically. Additionally, a personal bankruptcy attorney can answer most queries about filing prior to a divorce, but Chapter 7 might not be a possibility if their earnings are high enough to support payments for a Chapter 13 filing. A pending divorce and the possibility of reduced assets are not usually taken into account for either kind of bankruptcy filing.


In the event you and your wife or husband are in financial trouble and are considering bankruptcy before you divorce, it's critical to seek help from a qualified bankruptcy legal professional. A bankruptcy law firm can help you understand what your best next steps are and help safeguard you from making the wrong move, in the incorrect order. To give yourself the best chance for enhancing your financial situation, choose an experienced bankruptcy lawyer before filing for divorce or individual bankruptcy.

Learn more about bankruptcy filing in Oregon and Washington from the Salem Oregon bankruptcy attorneys of Northwest Debt Relief Law Firm. Whether chapter 7 bankruptcy or Chapter 13 is right for you, Northwest Debt Relief Law Firm can help you get a fresh start and get your personal finances back on track.

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Chapter 7 or Chapter 13 Bankruptcy know the Difference

If someone is facing bankruptcy then he or she can file for bankruptcy to get out of the debt. There are many ways of bankruptcy filing depending on the process. These ways of getting out of bankruptcy are named as chapters. Chapter 7 and chapter 13 are two of those ways. Let me tell you about the differences between them. However, before understanding the differences, you must know that both the chapters serve the same goal of giving you relief from a portion or from the entire debts. Their approaches are different and that’s what I will explain to you now.

1. Repayment
The repayment methods are the biggest difference of chapter 7 and chapter 13. The chapter 13 is a debt repayment plan set by a court order. For this plan, a part of your debt will be paid to the lender. The chapter 7 is entirely different on this matter as there is no need to repay any debt. This is a plan to eliminate some of your debts. So you can surely see that with chapter 7 and chapter 13, you have different options for saving your entire or part of the debt.


2. Length of the process
The filing process of the bankruptcy takes some time. The time differs with the type of bankruptcy filing. The lengths of the processes are different for chapter 7 and chapter 13 too. The chapter 7 bankruptcy filing takes rather shorter time. It settles the matters within 6 months from the filing date. On the other hand, chapter 13 is a much longer process. It, at times, takes 5 years to settle the case.

3. Asset and liquidation
The chapter 13 bankruptcy helps you to protect your assets. The chapter 13 procedure can help you to save your assets like home and car that are under foreclosure. Chapter 13 is not a bankruptcy of liquidation and that’s why you can save some of your assets. The chapter 7 bankruptcy is a liquidation bankruptcy and that’s how the court can liquidate your assets if they are not protected. The state can protect a portion of your car or home equity.

4. Repayment method
The chapter 13 and chapter 7 have different debt recovery method. In chapter 13 a repayment plan will be made for you and will be followed. In chapter 7 bankruptcy, your properties will be sold to repay a portion of your debt and the rest of the debt will be discharged for you.

Sacramento, California based bankruptcy attorney Kristy Hernandez received her B.A. in Political Science from University of California at Davis She received her Sacramento bankruptcy attorney for handling legal services of bankruptcy, Home loan modification, Foreclosure Defense, San Jose Tenant Eviction and also in Sacramento, Citrus Heights Bankruptcy Lawyer, and the surrounding cities.

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Before You Pursue Bankruptcy You Should Get The Facts About Advantages, Dangers

Bankruptcy may be a possible response to your financial problems and you’re maybe wondering how you could begin to get more information about it. Filing for bankruptcy is a measure that should be undertaken only when you are convinced that it’s the most beneficial alternative for you to take.

You won’t be ostracized for life if you choose to file for bankruptcy, but be forewarned that it’s no picnic, either. The first step for those who decide to file is mandatory counseling sessions with a government-appointed agency. You and the counselor will study your financial situation to decide whether or not filing is the best move for you.

Your counselor may find, after looking at all the facts, that you’re better off not filing for bankruptcy and setting up a realistic schedule to pay back the money you owe. Maybe you believe that you’d be wasting your time talking to a counselor, but it’s a step you must take and one in which you might learn something.

You don’t necessarily have to adopt the repayment schedule the counselor suggests, if that turns out to be the case, but you’ll receive it anyway. You may opt to ignore the advice you receive from the counselor, but you must let the judge who hears your case review it.

You’ll have another appointment with a counselor once your hearing gets under way, where finance management will be the subject. If you’re presented with a favorable outcome at the close of your hearing, you’ll be liberated from your debts.

While you’ll have a number of responsibilities and requirements to complete, so will the attorney representing you in the case. Attorneys must put their reputations at stake by assuring the court that the material you present in your hearing is reliable and factual.

L.A. residents declaring bankruptcy might engage a Woodland Hills bankruptcy attorney who would be responsible for the veracity of the information submitted. A Encino bankruptcy attorney can elucidate to you such difficult issues as how much wealth a client declaring bankruptcy will be allowed to keep.

Your lawyer can update you about the ways that the legal system will measure your personal worth. If you own a house or land, a lawyer can assess whether or not you stand to lose what you own in the sequence of a bankruptcy hearing.

Before you make one of the most weighty decisions of your life, be sure to connect with sound legal advice, because it can save you a great deal of difficulty later on.

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Routes For Preventing Going Insolvent

Lots of Americans are facing bankruptcy on a monthly basis. Make sure you have taken all steps possible before you actually file for bankruptcy.

One of the quickest, yet often overlooked first lines of defense is to get rid of your credit cards. Sometimes it might be crucial to hold on to a card in case of emergencies. Attempt not to go over an $800 limit on this one card. There is no need to keep more than one card per household. These days, most companies will set you up with online automated billing. Start using cash for all of your other daily needs. This not only limits what you can buy, it also shows you exactly what you spend your money on.

Another way to cut spending is by putting a stop to satellite TV. You can watch most shows on the net for free or they are available for instant streaming. You might try having a no TV night and instead play board games with the kids. If you are single, try turning off various distractions and sit down with a good story. You can pick anything from a Russian classic to a new comic book.

If you are at your wit’s end and you keep getting collection notices you may want to make an appointment with a Woodland Hills bankruptcy attorney to see what your options are. Some people unfortunately use this as the last resort instead of seeking out a lawyer before things get too bad. Before seeing a Thousand Oaks bankruptcy attorney, check their credentials and get references. Never blindly pick a Woodland Hills bankruptcy attorney without checking them out. A bit of questioning can go a long way to prevent problems.


Once you have seen your Van Nuys bankruptcy attorney, converse with your friend or spouse about your options. Know all the pros and cons of filing for chapter seven and make sure you can handle them all. Also be sure to discuss every detail with your family and maybe a few close friends. Don’t be ashamed; instead, be proud of yourself for knowing that you are making a good decision before matters get too much out of hand.

Now you won’t be all by yourself in these hard times. The reality of the job market today makes it difficult to save for a future. Remember that you are just human and you aren’t in this by yourself.

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Bankruptcy advice and help going bankrupt

We provide some simple bankruptcy advice and help if you are thinking about declaring yourself bankrupt.

If you hear or see the word bankruptcy it is normally enough to send waves of panic through your whole body.

This is because if someone suggests declaring yourself bankrupt the image it conjures up is often one of failure and losing everything.

However once you find out the real facts about bankruptcy, you may discover that it is the best way to deal with your debts and turns out to be a real life saver.

What is bankruptcy?

Declaring yourself bankrupt means that you make an application to the court to say that you are unable to repay the debt that you owe.

Once the court declares you bankrupt all of your unsecured debts are taken away from you straight away. Your creditors must then stop all their debt collection actions against you. Part of the bankruptcy procedures includes giving information about your income and living expenses. Based on this if you can afford to do so you will be expected to make a payment towards your debts for up to three years.

One of the major worries that people have about going bankrupt is that they think they will have to sell everything they own. This is nonsense. You are allowed to keep all of your normal household goods. However it is true that if you own an expensive car you might have to sell or downsize.

Many people also worry about losing their home. If there is equity in your property declaring yourself bankrupt may put the property at risk. However if you have little or no equity it is highly likely that there will be no affect on your home and you will be able to keep it.

Declaring yourself bankrupt

If you want to declare yourself bankrupt you will need to follow three main bankruptcy procedures.

The first bankruptcy procedure you will need to go through is the completion of the necessary application forms.

It is very important that you complete the bankruptcy application forms correctly as the information you give will form the basis of decisions about whether you are asked to make a monthly payment towards your debts and what happens to assets such as you house.


Once your forms are properly completed the second bankruptcy procedure involves you taking them to your local country court (or the Royal Courts of Justice if you live in London).

You should go to court in person. You will be asked to pay a court fee and may have to have a brief private meeting with a District Judge. If you have completed your forms correctly you will be declared bankrupt on the day.

The third bankruptcy procedure is a meeting with the official receiver. The meeting will normally take place on the telephone a week or so after you have been declared bankrupt.

This meeting is important as the official receiver will want to make sure they understand the information you included in your application form. It is the official receiver who makes the decisions about what will happen to your car and if you will have to make a monthly payment, not the court judge.

Help going bankrupt

For many people, bankruptcy can be a very effective way of getting out of debt and will result in the majority of their debt being written off.

Bankruptcy is often ideal if you are not a home owner. However even if you do own your own home it you may well be able to keep your house particularly if there is little or no equity in it.

However to understand exactly what bankruptcy will mean for you it is important to get proper bankruptcy advice.

It is also very important that you carry out the bankruptcy procedure of completing your applications forms correctly. As such if you are at all worried about this you should get bankruptcy help from an expert.

Following this simple bankruptcy advice may well result in you making a sensible decision to declare yourself bankrupt rather than struggling to repay your debt for many years using a different debt management solution.

James Falla is a debt management solutions expert and author. He has fourteen years of experience of helping people with the process of declaring themselves bankrupt. In 2004 James co founded Thomas Charles a specialist debt management solutions company where he personally helped hundreds of clients declare bankruptcy. James is now the managing director of and senior debt advisor for Wilmott Turner Financial Services which operates debt solution websites such as http://www.beatmydebt.com/

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