Avoid Personal Bankruptcy

It is also occurring more and more because people are getting laid off left and right. You never know when your job can be next; therefore it is important that you have a back up plan so that you are not entirely dependent on your day job.

People tend to think that just because they have a great job that pays the bills they do not have to worry about anything financially. After all you never worry about anything until it affects you. Well research shows the personal bankruptcies are on the rise.

I personally believe that people need to learn how to manage their finances. We were never taught in school how to balance a check book or why we should not be willing to use credit to make our purchases.

Unfortunately it is something that you have to learn on your own. Unless you are willing to make the committment to learn how to make your finances better; then chances are nothing is going to ever change in your life.

While it is true that personal bankruptcies are on the rise; it does not mean that you have to be constantly worried about your finances.

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Written by bankruptcy attorney, Jeena Cho

The short answer is, you could but it’s a very bad idea. Here are 12 reasons why filing your own bankruptcy is a bad idea by 12 different bankruptcy attorneys around the country.

1. Because you could lose your home and car and other assets if you do not know how to properly analyze and apply your case to the complex bankruptcy code.
2. Because California has its own exemptions and improper use can result in loss of property.
3. Because of possible complication with fraudulent transfers and preferences.
4. Because your case may be dismissed.
5. There can be complications when filing without and attorney…… loss of assets, denial of discharge, additional stress wondering about what is going on and how to navigate thru the processes….. etc…….
6. Filing ch7 is like jumping out of a plane for your finances.  When you pull

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Why do you need these forms?

After bankruptcy, the people you used to owe money to are not allowed to try to collect.  They can’t call, can’t sue or garnish, and they are not supposed to bill you, either.  That rule applies to all the debts (except for things like taxes or child support.)  That includes your car or your mortgage–people you might want keep paying (if you want to keep the house or car.)

Usually (not always) your bank will start billing again on the car loan if you send them my form letter.  And nearly always, the mortgage company will keep discussing a loan mod with you if you send them my form letter.

That’s what these two forms are for.  I’ve already signed them–just type in your information and print them out.  They should help.

If you’ve filed for Chapter 13 bankruptcy in New York, or are thinking of filing Chapter 13 bankruptcy, you’re probably worried about what happens to your Chapter 13 Plan if your fortunes take a turn for the worse. After all, Chapter 13 bankruptcy will stop creditors from harassing you and allow you to keep your property, but it can still be a struggle for to keep up with the Plan if anything happens to reduce your income.

Even if you could easily afford the payments when your Plan was confirmed, unforeseen circumstances like a job loss or a health problem could make it impossible to keep up with the payments. If you can’t keeping making your Chapter 13 Plan payments U.S. Bankruptcy Code has a provision called a Hardship Discharge that provides relief for debtors who can’t continue with a Chapter 13 bankruptcy.  The hardship discharge is provided for in 11 U.S.C. 1328(b).

If you can’t complete the repayment plan, consider asking the court for a hardship discharge. In most ca Read more…

Bankruptcy Credit Report information is essential before filing for Chapter 13 which should be your last resort. The essential action you do BEFORE filing for Bankruptcy is to get a Credit Report on your financial situation. From here there are many debt reduction strategies you can enact well before you hit the fatal Chapter 13 button, however if you do have to file for bankruptcy then be sure to know the best way to go about it.

Bankruptcy Credit Report – Get and Review your Credit Report.
The three main sources of obtain your Credit Report from are Experian (formally TRW), then Equifax, and Trans Union. They will provide information on your Credit including all loans, such as House and Car loans. They will also have information on your Credit Credit debts and any other smaller loans. If you don’t ask for you Credit Score you can obtain these Credit Reports for Free.

Debt Reduction Bankruptcy Credit Report

There are so many avenues you can pressure to find out ways around filing for Bankruptcy. Remember that If you file for Bankruptcy then your record will stay on public records for up to ten years, It will stay on Credit reports for around seven. Read more…

If you’ve got a default judgment against you for an unpaid credit card debt, personal loan, medical bill, or similar debt then you may be thinking that filing for bankruptcy will solve the problem.  New York consumers may want to seriously consider the full story first.

A default judgment is a common reason for New York residents to consider filing for bankruptcy. In New York a judgment creditor has the right to freeze your bank account, take part of your wages, and continue to add interest on the amount due at a statutory rate until the debt is paid in full.

If you’re living paycheck-to-paycheck as is, the prospect of having to surrender a portion of your income isn’t appealing.  And given the high cost of living in New York, every dollar counts.

It’s true that filing for bankruptcy will stop the income execution (wage garnishee), lift the hold on your bank accounts, and give you some breathing room.  But even the bankruptcy discharge won’t eliminate the impact of that default judgment against you.

A judgment is a matter of public record, and creates a statutory lien on any real estate you own as of the date on which the judgment is filed.  Your bankru Read more…