Dallas Bankruptcy Lawyers,Fort Worth BankruptcyMark Rubin Lawyer Author : Jim Knight The Bankruptcy Attorneys at Rubin & Associates P.C. understand the stress experienced by individuals in the Dallas Fort Worth area who are struggling with debt. Our goal as Bankruptcy Lawyers is to find a solution to relieve your financial stress.
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========================================================= Bankruptcy Your Credit Score Down the Road Bankruptcy is a proceeding in a federal court in which an insolvent debtor's assets are liquidated and the debtor is relieved of further. It is classified into two categories, liquidation and reorganization. There are four chapters in total which include from Chapter 7 to Chapter 13. Chapter 7 of the Bankruptcy Reform Act stands for liquidation, whereas Chapter 11 deals with reorganization. Bankruptcy is something which individuals try to avoid, as it devastates one’s credit and stops the borrowing channel. A lot of individuals think that paying off debts is a better option rather than filing for bankruptcy, as it affects the emotional life of the concerned individual. A feeling of regret and failure envisages the life of the individuals who file for bankruptcy, even several years after the filing. Before considering filling for bankruptcy people should consider their options very carefully. Firstly, the debtor should sit down with the creditor and settle a debt with them rather than filling for bankruptcy. If the debtor is already a few months late on the payment the negotiation process becomes much easier. If the debtor is lagging in making payments to the creditor on time, then the creditor has no choice but to negotiate and bring the amount of debt payable per month down, in order to recover the lion share of the money owed. The debtor should turn to a consumer credit counselor if he is unsuccessful in negotiating with the creditors. These professionals are capable of bringing down the interest rates and monthly payments. They know very well about how to get the job done. Under the new bankruptcy legislature, the debtor has to go through credit counseling, six months before filling for bankruptcy. This is done so that the concerned individual may explore it as an alternative to bankruptcy declaration. Declaring bankruptcy also affects the credit score of an individual. In such cases most creditors stop lending money. This is because of the severe risk of non payment that person represents based on his or her past. Bankruptcy lowers the credit score of an individual by a full 100 points, and sometimes even more. So initially, these are the risks involved. But eventually the degree of risk mitigates with time. If the creditor has got judgments against the debtor and has garnished that individual’s wages, then declaring
bankruptcy could stop the wage garnishment. By adopting this process, the debtor might also get some help in retrieving the garnished money. If someone is not in possession of any assets or the assets they own are worth very little compared to the debt they owe, then they might consider filing for bankruptcy. Also, if the assets of the debtor are secured with a loan, then he or she can file for bankruptcy in order to keep the assets such as a house or a car. Every situation is unique in its own way. If the debtor is seriously considering, filling for bankruptcy, then he or she should get in touch with a consumer law attorney to discuss their bankruptcy options. Consumer law attorney’s are professionals who review the facts of the concerned person’s situation and then help them decide whether or not filing bankruptcy is the appropriate option for them.
For more information Click Here Five Rules of Bankruptcy “Bankruptcy is a legal proceeding in which you put your money in your pants pocket and give your coat to your creditors.” Joey Adams (19111999), American comedian, actor and author. Bankruptcy is one of the most difficult events one can ever face in one’s life. The inability to repay one’s debts is a heavy cross to bear, and many suffer from the moral implications of filing for bankruptcy. However, in many ways, it gives one a second chance to stand on his or her feet again. If you have been assailed by the ongoing recession and have decided to file for bankruptcy, you need to be aware of the following five important rules of bankruptcy: 1. Know the difference between Chapter 7 and Chapter 13 bankruptcy Chapters 7 and 13 of the US Bankruptcy Code are the most common forms of individual bankruptcy filings. However, there is a lot of difference between them. While the former is a liquidation process where all debts are discharged, the latter is a reorganization of debt with a specified repayment plan. Also, under Chapter 7, only some property can be kept while the rest is liquidated, but under Chapter 13, most of the property can be retained as long as regular repayments are made. Additionally, a Chapter 7 bankruptcy remains longer in the credit report (10 years) as compared to one filed under Chapter 13 (7 years). In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was passed to make Chapter 7 filings more difficult to reduce abuse of the provision. Now, the debtor's income is calculated and then the resultant figure is compared to the median income of the state where he or she resides. Only if the debtor's household income falls below the median income for the state does the debtor qualify to file for Chapter 7 bankruptcy. 2. Know which bankruptcy to file for Now that you know the difference between Chapter 7 and Chapter 13 bankruptcy, you can decide which chapter to file under. If you are heavily in debt with practically no assets to speak of, Chapter 7 seems to be the better option, provided you qualify under the new restrictions. On the other hand, if you have temporarily fallen behind on repayments due to an unexpected event like loss of job or medical expenses, you should opt for Chapter 13. 3. Know how to file for bankruptcy Once you’ve finalized your decision to file for bankruptcy, it is recommended you approach a lawyer who deals
with such cases. Although technically you can file without a lawyer, the former is a better option so that all the formalities are adhered to. You can choose between a lawyer who charges a flat fee and one who charges a percentage of the debt. 4. Know the implications of filing for bankruptcy Realize that the record of bankruptcy will remain on your credit history for 7 to 10 years, making it extremely difficult for you to get any kind of loans. Even if you get one, the interest rate will be very high. 5. Know what to do after filing for bankruptcy After filing for bankruptcy, live within your means, do not incur additional debt, and make any scheduled payments the Bankruptcy Court orders. For more information Click Here
Published on Mar 28, 2011
The Bankruptcy Attorneys at Rubin & Associates P.C. understand the stress experienced by individuals in the Dallas Fort Worth area who are...