For people in dire financial straits who are considering bankruptcy, one major hurdle or deterrent can be the question of the cost to declare bankruptcy. But few people actually know exactly what it will cost to declare bankruptcy. This article tackles that subject.

The first thing to consider is the court costs. At present, those are $274 for Chapter 7 and $189 for Chapter 13 bankruptcy. This might seem a little excessive considering the fact that the very reason you require such a service is because you are in a difficult financial situation. However, when you consider the potential of what bankruptcy can do in terms of relieving your financial stress, these costs seem far more reasonable. (more…)

One of the biggest concerns in contemplating the filing of a Chapter 7 bankruptcy is how to go about reestablishing credit after the discharge is (hopefully) received and the bankruptcy case closed. Of particular importance is that the debtor regain the ability to qualify for a car loan and, ultimately, that he or she might in the not too distant future qualify for a mortgage loan. Here are some relatively simple steps to help achieve those goals:

1. Start small, but steady: As soon as your case is closed, apply for a credit card with a very low spending limit. Even if that limit is as modest as, say, $250, this fact is much less important than the fact that you must stay completely current on the account. Meaning that you should not merely make the minimum payment every month; rather, you should pay the entire account balance in full, and well before the due date. This will help you establish with the credit reporting agencies a track record of repaying debts reliably and on time. (more…)

Contrary to popular belief, despite changes made in 2005, bankruptcy is still a possibility for the vast majority of people for whom is was prior to the congressional changes of that year. But as with any financial decision, it is one that should be carefully thought out. And you cannot possibly make a decision before educating yourself on the pros and cons of declaring bankruptcy.

And when it comes to the pros and cons of declaring bankruptcy, the obvious place to start is with the major benefit and reason that people opt for it in the first place. The possibility of having your debts completely wiped out, being gifted a fresh financial start and the opportunity to essentially start again in financial terms. This can be such a huge relief to those who have been dogged with unmanageable bills for months and months and who have been terribly frightened for their future. However, bankruptcy will not eradicate all bills. While it will deal with credit card bills and medical bills, as well as other unsecured finance, it will not wipe out, generally speaking, student loans, criminal fines, alimony or child support. (more…)

The credit industry simply hates to see someone declaring personal bankruptcy. After all, for those who provide unsecured finance, this means that they are unlikely to see that money repaid, in the case of chapter 7. As such, many credit industry figureheads tend to make out those who are declaring personal bankruptcy as being scam artists who simply want to evade their debts and avoid responsibility to paying them. They make out that anyone who decides to declare personal bankruptcy is someone who will avoid repaying their debts at the expense of other hard working Americans.

This, of course, is not the case. Anyone can get in over their head financially. Even the federal government has!! But the point is that, while consumers should absolutely take complete responsibility for their bad spending habits, people who declare bankruptcy often have no other choice. If you are in a situation whereby, even with all the possible changes you can make to your spending habits, you would still be entirely unable to pay off your outstanding debts in the foreseeable future, then you probably have little choice but bankruptcy.

And let’s face it, it’s been widely acknowledged for a number of years now, that credit providers have been guilty of irresponsible lending, choosing to lend people more than they know they will feasibly be able to afford to pay back. While this does not eradicate the need for the borrower to hold their hands up and take responsibility, it certainly goes a long way to accounting for many of the problems.

Bankruptcy is not for deadbeats and wasters. It is a last resort for people who have gotten in over their heads, for whatever reason. And let’s face it… nobody wants to declare bankruptcy. It’s not anyone’s first choice. It’s just a fact of life for those who cannot afford to repay their debts.

Want to know how to manage your debt without losing control? Get the right information on Declaring Personal Bankruptcy before you make the important decision. To get the facts on bankruptcy, simply Click Here

If you are one of the many Americans researching and considering declaring yourself bankrupt, then you have probably already heard about the relief that it can bring from financial problems that have been getting you down for months. Of course, it has its advantages as a legitimate and viable means of granting you a fresh financial start. But declaring yourself bankrupt does not come without catches!

The worst effect, by far, will be the damage it does to your credit rating. It might not seem like such a big deal right now, after all if you are on the brink of declaring yourself bankrupt the last thing you are probably thinking about is taking more credit! But in the long term this could be an issue. Bankruptcy stays on file for ten years. And if, later on, you need to get credit or loans for any reason, you are going to have a hard time. And even in cases where it proves possible for you to obtain credit, you will be subject to a much higher rate of interest. (more…)

The failures of large corporations in recent years have garnered intense media attention: from the infamous Enron case to the more recent bank collapses, corporate bankruptcy often has negative consequences for a large number of people. Small businesses, on the other hand, usually go unnoticed by the mass media.

Despite the greater number of people affected in cases like Enron, the effects of small business bankruptcy can be much more severe on the owners and any employees. Since they have more limited means than larger companies, small businesses can be more susceptible to fluctuations in local economies. Local restaurants, for example, commonly go out of business during economic downturns, because people are less likely to dine out when the economy is weak.

If a small business owner does decide to file for bankruptcy, there are certain conditions under which the owner(s) may be able to file under bankruptcy laws used more often for individuals than businesses. Since many small businesses fall somewhere in between these two poles, special stipulations have been enumerated which determine which set of laws to use in these cases.

The US Bankruptcy Code provides several different bankruptcy path, each with different requirements. With the exception of Chapter 12, which is reserved for use by farmers and fishermen, both businesses and individuals can file under any of these chapters. Chapter 7 is the most common type of bankruptcy overall and is used extensively by both individual and businesses. In practice, Chapter 11 is almost always reserved for companies. Likewise Chapter 13 is largely for individuals.

A Chapter 7 bankruptcy case, often called a “straight” bankruptcy, is one in which the debtor liquidates certain assets to repay creditors and establishes a repayment plan. “Liquidating assets” here essentially means turning over saved money and/or selling possessions to pay the creditors back. Fortunately, exceptions are made for “essential” property. In many cases this means individual debtors will not be forced by the court to sell personal possessions, vehicles, etc. Often, however, such steps might be necessary to get funds, or a house (for example) might be repossessed. Chapter 7 cases are the most common.

In addition to Chapter 7 bankruptcy, it is possible for a small business, in particular a single-owner business, to file under Chapter 13. In order for this to happen, however, the owners must have less than approx. $300,000 in unsecured debt or $1,000,000 in secured debt. If the company’s debt exceeds these values, the owners must file under Chapter 11.

If a small business files under Chapter 11, there are certain conditions under which a normal Chapter 11 case can become a “small business case.” These are distinct from regular Chapter 11 cases in that there is no creditors’ committee (a group of creditors) overseeing the process. Such cases are usually filed when the court either does not appoint a creditors’ committee, or the committee fails to be sufficiently involved in the process. Additionally, businesses in cases like these must have less than about $2,000,000 in total secured and unsecured debt.

Bankruptcy law is very complex, and to non-lawyers can be very difficult to understand, and even more difficult to use. That’s why seeking the help of an experienced bankruptcy attorney is the best way to determine whether you and/or your business should file for bankruptcy, and then prepare a plan if you do.

In Florida, the West Palm Beach bankruptcy law offices of Eric N. Klein & Associates, PA have the expertise and experience you need. Contact them today.

Joseph Devine

If you are filing for bankruptcy, then the simple fact of the matter is that you are doin so because your finances are so poor that you have no choice. After all, it isn’t like you are filing for bankruptcy for fun and games! It is natural then that you would want to avoid further debts or bills of any sort.

It is often for that reason that so many people filing for bankruptcy ask about the possibility of going it alone, without the services of an attorney. Often these people have been advised by friends and family that it is possible, they sometimes know someone who has done it themselves successfully.

However, really, since 2005, skimping on your legal help just to avoid the bill is the equivalent of setting yourself up for a complete disaster.

Under pressure from lobbying credit companies, Congress passed some huge overhauls to the Bankruptcy Code in 2005. This was designed to ensure that bankruptcy could not be abused by those who were unwilling to repay debts rather than unable. While most people who were eligible for bankruptcy before 2005 remain so, there are a number of new added complications. One of these is the means test, which is designed to establish whether or not you really do need to declare bankruptcy.

Even in the eyes of the professionals, this new set of laws is complicated and the specialist bankruptcy attorneys spend a lot of time ensuring they are up to date with this ever evolving code. So you can imagine it would be close to impossible for an individual without substantial legal background and experience of bankruptcy law to even know where to begin. Do not try and save money where the legal fees are concerned. If you want to be successful, you just have to bite the bullet.

Find out what is involved in Declaring Yourself Bankrupt before you make the decision. To get facts on bankruptcy, Click Here

Being in debt is hugely stressful and the constant calls from creditors demanding money that you simply do not have is most definitely something that will probably keep you awake at night! Being hassled repeatedly by those demanding money is terribly stressful. If you are in a position where it seems highly unlikely that you would be able to pay off the debts, even with changes to your spending habits, within a few years, then you are likely to be looking at the possibility of bankruptcy. And there is a provision in deciding to declare bankruptcy that eases that stress hugely.

This relief is known as the bankruptcy automatic stay and gets your creditors off your case. The second that you file your bankruptcy petition with the court, this bankruptcy automatic stay means that no creditors or debt collectors at all are permitted to contact you. Any ongoing wage garnishments are completely stopped and any foreclosures or repossessions under procedure are also stopped immediately. (more…)

If you are in a situation where you are simply unable to pay off your outstanding debts and even with significant changes to your expenditures you will be unable to pay them in the foreseeable future, then the chances are that you really should think about declaring yourself bankrupt. However, many people even knowing that this is the best move for them are put off by the cost of declaring bankruptcy. Some are completely unaware of the cost of declaring bankruptcy but just assume it to be higher than it actually is.

The court fees are relatively small. Chapter 7 bankruptcy incurs a fee of $274 and Chapter 13 bankruptcy incurs a fee of $189. Now, this might seem a fairly hefty fee for someone who has pretty much nothing, but consider the fact that bankruptcy can secure your long term financial freedom and this is pretty good! (more…)

There is no doubt that bankruptcy can provide much-needed debt relief, particularly if you are overwhelmed with debt problems. However, it is normal that you might be concerned about its potential impact on your job and career. However, unless it is a clear violation of the terms of your contract of employment, it would be illegal for your current employer to sack you simply because you have filed for bankruptcy. Your employer could be prosecuted in such a scenario. However, when you are talking about prospective employers, they are a completely different kettle of fish. To start with, it’s pretty standard for financial, gaming and government employers to conduct background checks.

In spite of the global recession, there has been a marked increase in organisations that are checking out the credit reports of prospective employees. These employers may not want to employ you, particularly if they have taken the time to perform such checks. The reason for this is that such employers are of the view that reliability and creditworthiness go hand in hand. They tend to view how you handle things personally as a probable sign of how you would handle their company’s assets.

They may therefore be of the opinion that people who are unable to take responsibility for the financial affairs may end up blaming other people for their own failings and mistakes. Basically, these employers will want to be assured that you will not be a high risk investment if you are hired. So even though there are laws that forbid an employer from discriminating against a prospective employee solely because the applicant has declared bankruptcy in the past, the possibility exists that the employer may choose to look elsewhere. However, there are also many employers that do not do any such checks, and don’t care whether you’ve been bankrupt before.

Now you might be thinking that filing for bankruptcy rules you out of the running for jobs that require background checks. Not necessarily. You should never underestimate or overlook the ability of employers to be sympathetic. They are human after all. If the only negative thing on your credit file is the bankruptcy, then you stand a much better chance than if you have lots of other negative things in your report. Having bad credit is bad, but personal bankruptcy IS a solution. Filing for bankruptcy demonstrates that you identified a problem in your financial life and took steps to rectify it. Bankruptcy hasn’t ruined your employability. It has made landing your dream job more difficult, but by no means impossible. (more…)