Economics Finance

During times of society-wide financial crisis, individuals of all walks of life may suffer the consequences of job-loss, rising debt, and inability to pay important bills like mortgage payments, auto loans and other debts. When it comes to financial struggle, even those who at one point were considered to be “well-off” may face serious difficulty repaying their creditors and protecting their assets.

Although many people have a stereotypical vision of bankruptcy proceedings and the people who seek protection under U.S. bankruptcy law, the truth is that any individual in any vocation may find himself/herself in serious financial trouble. If an individual finds that it is too difficult to repay debts and maintain proper payments, he or she may consider filing for bankruptcy protection under the law.

Life-altering events like loss of spousal support, job-loss, rising debts, mortgage rate adjustments, and other actions can cause severe financial strife. People may find that their bills and debts outweigh the amount of income they bring in on a monthly basis and can eventually find that they are severely delinquent on their bills and payments. Continue reading ‘High Incomes and Bankruptcy Filings’ »

Trying to survive financial hardship is undoubtedly one of the biggest challenges anyone can face in life. It seems that one unfortunate event follows another until you and your family find yourselves in an endless cycle of financial turmoil and unbelievable stress. What makes everything worse is not knowing where to turn.

For many families, bankruptcy has been the only option for escaping their financial problems. In this article, I don’t plan on covering all of the pros and cons of declaring personal bankruptcy. Rather, I would like to focus on reassuring those who have already decided that bankruptcy is the right move for their family. Instead of helping you decide whether to further investigate bankruptcy (which I do in other articles), I wish to focus on some of the emotional issues surrounding bankruptcy.

It seems like having financial problems can be a stigma that is very difficult to remove, and declaring personal bankruptcy can be the cause of much shame and emotional stress. Although this is perfectly understandable, it really is not necessary. Continue reading ‘Is Bankruptcy Really an Admission of Failure?’ »

Despite the social stigma and horror stories attached to the word, ‘bankruptcy,’ it is actually a viable and legitimate means of putting an end to incredibly desperate financial problems. Of course, for some people it will be the best route to take, while for others, it would be more advisable to seek out bankruptcy alternatives first. Whichever way you do it, whether you proceed or not, you should ensure that you have weighed up all your options first as it comes with long term consequences.

Bankruptcy should always be the last resort and, as such, you should have exhausted all other bankruptcy alternatives by the time you come to file. Resolving your financial problems without resorting to bankruptcy could prevent a nasty blemish on your credit rating and be better for your long term financial security.

The best place to start when it comes to solving problems without bankruptcy is to get together all documentation relating to your income, your monthly expenditure and your outstanding debts. This can be a tricky task but it is absolutely imperative before you can even begin to consider your options, to know exactly the position that you are in at the very present. Continue reading ‘Try These Bankruptcy Alternatives Before You Decide to Declare Yourself Bankrupt’ »

If you are in a position where you are considering bankruptcy and have done some research, then there is a good chance that you will already have heard of the bankruptcy means test. This is something that was introduced as part of the reforms to bankruptcy code back in 2005. Essentially, this is designed to work out whether or not someone really does need to declare bankruptcy.

You will only need to undergo a bankruptcy means test if your income is above the median income for the state in which you are filing. It is worth noting that your income will be considered your wages, retirement income, any tax refunds, any money you inherit, compensation you might have claimed and gifts. Social Security benefits will be exempt, as will reparations received as a result of being a victim of terrorism. But for all included sources of income, you need to add them up for the past 6 months and double this figure. Continue reading ‘Bankruptcy Means Test – How is it Measured and Will it Affect Your Bankruptcy Appeal?’ »

If you are considering filing for bankruptcy you might have previously been too embarrassed to ask for help or advice. Unfortunately, bankruptcy still has something of a social stigma attached to it, particularly amongst the older generations and people simply do not like to talk about topics with a stigma attached. This means that a number of people are misinformed about certain facts relating to filing for bankruptcy.

First of all, increasing numbers of people seem to believe that the changes brought about in 2005 when Congress overhauled the bankruptcy code simply mean that most people are now finding it impossible when filing for bankruptcy. This is not the case. While it is true that the changes of 2005 made the whole process a lot more complicated than it previously was, most who were eligible before the changes still are. And bankruptcy is a very legitimate and viable way for hard to do Americans to get a clean slate. Continue reading ‘Do Not Be Misinformed If You Are Filing For Bankruptcy – Get the Right Facts Before You Proceed!’ »

There are any number of financial crises that could lead a family to the edge of bankruptcy. It may be an unexpected medical expense that was not covered by health insurance, or it may be the result of a failed business in which the family invested personal funds and lost a lifetime of savings.

Of course, it can simply be the result of poor financial choices over a long time that have accumulated into a gigantic mess called bankruptcy. Spending more than you earn through the use of credit cards and personal loans can quickly add up and leave you buried under a mountain of personal debts.

The sad truth is that most people do not see this coming until it is too late. Then they find themselves owing tens of thousands of dollars to credit card companies, as well as other creditors (and even to the Internal Revenue Service). This doesn’t even include a mortgage, which is often another financial burden on top of everything else. Continue reading ‘The Many Causes of Bankruptcy’ »

In the today’s economic climate, an increasing number of businesses are suffering from financial stress. When debt is piling up, it can be difficult to determine if or when to file for bankruptcy protection. The following is concise overview of the issues surrounding bankruptcy, but you should always consult a professional before making any decisions.

When to file for bankruptcy? The short answer is you should try every other solution first.

For small business owners, a business bankruptcy can affect your personal finances. If your company is a partnership or sole proprietorship, you can be held personally responsible for your business debts. That means your personal assets can be used to satisfy your creditors! Of course, in these cases, you should seek every potential alternative in order to protect your personal property and assets. Moreover, a bankruptcy filing will probably make it harder to start a new business down the road. Not only will your assets be depleted, but you’ll also have the social stigma and financial baggage of a past bankruptcy.

However, even when your company is besieged by creditors, there may be non-judicial options available. Restructuring and financial workouts can help satisfy your debtors without filing for bankruptcy. In many cases, just informing your creditors that you’re considering bankruptcy is usually enough incentive to bring them to the bargaining table. These prevention methods facilitate the creation of a compromise between your business and debtors. Whereas a bankruptcy would likely result in the creditor getting nothing, these negotiations result partial repayment, Workouts and debt restructuring are an effective way of satisfying your company’s debts without the hassle, cost, or embarrassment of a filing bankruptcy. Continue reading ‘Corporate Bankruptcy – When Should a Business File For Bankruptcy?’ »

In recent years bankruptcy has seemed to be the choice of individuals and businesses to try and stay afloat in tough economic times. Is bankruptcy worth it though? Many people in recent years have asked themselves this question and today we are going to take a closer look at this so you have a good idea about it.

Bankruptcy ruins your credit and you will see it on your credit report for 10 years. Even after it does come off your credit report it will still be on record forever, so that is something that you will want to think about. The word bankruptcy has a great amount of guilt when it is mention these days. People have this stigma that you are not willing to pay your bills. Many times that is the furthest from the truth as most people want to pay there bills, but just cannot afford to anymore.

One of the misconceptions people have about bankruptcy is that the courts are giving you a free pass. That couldn’t be further from the truth. In most cases you will lose your home and your car as part of the court proceedings. There really is no free pass in bankruptcy court so if you can avoid it do by all means. Continue reading ‘Avoiding Bankruptcy Information’ »

Persons who are used to making higher salaries and taking home larger monthly paychecks may find themselves in serious financial struggles, even though it may be hard for others to understand or believe. When it comes to money and financial planning, even people who seem to have no issues with money may find it hard to pay their bills and maintain responsibility for their debts.

Financial strife can be caused by many different factors and can strike people who have high salaries as well as individuals working for low hourly wages. The market and flow of business can easily cause a person’s cash flow to rise and fall dramatically. If a company is forced to close it’s doors or lay off employees, persons who were used to making large salaries may just as easily find themselves standing in the unemployment line as others further down the corporate ladder.

Events such as the death of a spouse, serious injury and medical costs, layoffs and other expenses can quickly cause a person to lose control of his or her debts and may plunge them into a serious financial crisis. If he or she does not find alternate sources of income or a new job, the person may become delinquent on important payments and may face repossession, foreclosure, and other negative consequences. Continue reading ‘Income Limits and Bankruptcy’ »