The new bankruptcy code is stricter and more inhibitive than ever before. Filing bankruptcy on your own is not as easy as it once was, but it is still doable using many online services. many services incorporate high-tech software that helps you fill out the bankruptcy documents and upon completion you can print them and file them with the court.Some courts even allow you to submit your bankruptcy forms electronically.There is a wealth of information available on the web about the new bankruptcy laws and how they could affect your situation.
Video: When is Bankruptcy the Best Option?
What Makes Your Bankruptcy Simple, and Not So Simple?
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What sort of Bankruptcy Attorney In Chi town Might help
In the world of public finance, Orange County, California, has long had an unfortunate distinction: In 1994, the county filed the largest municipal bankruptcy declaration in history, seeking court assistance to restructure $1.7 billion in debt. This month, however, Orange County finally lost its dubious claim to fame. On November 9, political leaders in Jefferson County, Alabama ? home of Birmingham, the state?s largest city ? asked a federal bankruptcy court to help the county restructure debt of more than $4 billion. The county?s debt burden stems from a disastrous investment in a local sewer system and amounts to nearly $7,000 for each of the 658,000 men, women and children who call the county home. That a bankruptcy declaration of such magnitude is possible has raised alarms nationally over whether more municipal crises may be on the way. In this explainer, Stateline examines what it means when a municipality files for Chapter 9 bankruptcy ? and why states should care. What is Chapter 9? It?s the portion of the federal bankruptcy code that applies to municipalities. Created by Congress in 1937, it allows municipalities to seek court protection in the event of fiscal crisis and is meant to ensure that basic government functions can continue while policy makers restructure their debt. Chapter 9 differs from other sections of the bankruptcy code, such as Chapter 11 and Chapter 13, which generally provide court relief to cash-strapped businesses and individuals, respectively. Who can file for Chapter 9? Only municipalities ? not states ? can file for Chapter 9. To be legally eligible, municipalities must be insolvent, have made a good-faith attempt to negotiate a settlement with their creditors and be willing to devise a plan to resolve their debts. They also need permission from their state government. Fifteen states have laws granting their municipalities the right to file for Chapter 9 protection on their own, according to James Spiotto, a bankruptcy specialist with the Chicago law firm of Chapman and Cutler. Those states are Alabama, Arizona, Arkansas, California, Idaho, Kentucky, Minnesota, Missouri, Montana, Nebraska, New York, Oklahoma, South Carolina, Texas and Washington. The remaining states all want a say in the process, in some cases requiring that municipalities receive state approval before they file. One of those states, Pennsylvania, is now in the process of challenging the bankruptcy declaration made by its own capital city, Harrisburg, in October. Georgia is the only state that does not allow its municipalities to file for bankruptcy under any circumstances. Georgia municipalities in severe fiscal trouble ?are left to work things out within the state political system,? says Paul Maco, a municipal bankruptcy expert and partner with the Vinson & Elkins law firm in Washington, D.C. That could include asking the legislature for emergency funds. States have plenty of serious fiscal problems, too. Why can?t they file for bankruptcy? States have not been granted that authority by Congress, nor have they sought it. The idea of allowing state bankruptcy was floated earlier this year by Newt Gingrich, the former U.S. House speaker and current presidential candidate, and Jeb Bush, the former Florida governor. In a Los Angeles Times op-ed, the two Republicans argued that bankruptcy would be a way for strapped states such as California and Illinois to tackle their enormous debts, particularly for public pensions and other retirement benefits. State leaders from both parties repudiated the idea. ?The mere existence of a law allowing states to declare bankruptcy only serves to increase interest rates, raise the costs of state government and create more volatility in financial markets,? Nebraska Governor Dave Heineman, a Republican, and Washington Governor Chris Gregoire, a Democrat, said in a joint statement. The last time any state came close to bankruptcy ? by defaulting on its loans? was during the Great Depression, when Arkansas racked up $160 million in debt on what was then a $14 million annual budget. How common are municipal bankruptcies? Very rare. Since 1937, when Congress added Chapter 9 to the federal bankruptcy code, about 620 municipalities have filed for bankruptcy. That?s fewer than 10 a year. In the last year alone, by comparison, there were nearly 12,000 bankruptcy filings under Chapter 11 and 418,000 under Chapter 13, according to the administrative office of the U.S. Courts. Most municipalities that do file for bankruptcy are special tax districts and small jurisdictions that do not issue public debt. Municipal utilities are a common example. What happens once a municipality files for Chapter 9? Municipal finances move into the jurisdiction of the courts, but not in the way that corporate or personal finances in Chapter 11 or Chapter 13 cases do. Under those sections, courts have broad leverage to control the finances of the company or individual to chart a path forward. In addition, creditors have more leverage, such as by foreclosing on the home of a bankrupt individual. In Chapter 9 bankruptcy, creditors cannot, for instance, foreclose on a municipal building to recoup the money they are owed. More importantly, the courts themselves have no authority to make spending or other policy decisions on behalf of the municipality. That power remains with the locality under the U.S. Constitution. Under Chapter 9, municipalities must come up with their own debt restructuring plans, and courts approve or reject it with input from other stakeholders. Source: stateline.org Source: filebankruptcyco.com Source: filebankruptcyco.com Source: businessbankruptcyco.com Source: bankruptcylawyersco.com Source: bankruptcycaliforniaco.com Source: debtreliefmag.com Source: debtreliefmag.com Source: debtreliefmag.com
Do Not File Chapter 13 if What You Need is Chapter 7
At first blush it appears that this lady was encouraged to file Chapter 13 when she really needed to be in Chapter 7, and that the only really beneficiary here is her lawyer.? On the other hand, what options did she have if she needed bankruptcy protection to stop a wage garnishment but she did not have the money to file Chapter 7??? Bankruptcy judges around the country have generally held that attorneys may not ?finance? Chapter 7 fees by taking post-dated checks or post-filing installments.? Should the lawyer be vilified because his client waited far too late to seek bankruptcy counsel and a low entry-fee Chapter 13 is the only practical option?
How actually bankruptcy works ?
Sometimes it can happen that the creditors can also force the companies or persons to claim for bankruptcy. It can happen when a creditor discovers that the owner who is in debt is selling of his or her company assets & even taking preparation to dismantle the company or his or her assets without any intension of paying the debts. In such situation the creditor himself forces the person or the company to claim a bankruptcy files to the court, or there are possibilities where the creditor can face the situation of bankruptcy while the debt owner is dismantling the assets without any intention to paying of the debts towards creditors.
What Happens When You File for Bankruptcy
Filing for bankruptcy has gained a reputation as something that only scoundrels and scumbags are driven to do, but it is simply untrue that only ?bad? people are the ones who are affected by the need to file for bankruptcy. Filing for bankruptcy is much more common than people would think. While it is definitely not a desired course of action, filing for bankruptcy is nothing to be ashamed of in today?s world. The state of the economy right now is absolutely dreadful, and it is important to remember that many people find themselves in undesirable financial situations through no fault of their own. If you or someone that you know and care about is thinking of filing for bankruptcy, then here are a few things that you should know about the whole process.
Is bankruptcy the answer to your tax debt or the IRS tax debt relief?
According to some information there are several people file for bankruptcy that has been successful in eliminating their tax problem with the Internal Revenue Service but not everyone can file bankruptcy in order to get away from their tax debt.? Depending on your situation because there are times Internal Revenue Service does not approve bankruptcy as the answer to their unresolved tax debt.
Debt Relief Articles: The Secret Power of Filing Chapter 7 Bankruptcy
You could ask just about anyone in the United States if they know what bankruptcy is and they will have an answer for you. Where the discrepancies lie is what is reality and what is rumor. In the past, filing bankruptcy carried a stigma of quitting or giving up. Many people thought individuals who would file for bankruptcy had no moral fiber, because they were walking out on their debts. The truth is, no one really wants to file bankruptcy. For most Americans, it was and still is a last resort. Some wait too long to file ending up in their own demise. What most people don?t understand are the real benefits of a bankruptcy filing. When someone becomes buried under a mountain of debt, they will do everything they can to kick the can down the road and shuffle their bills around. It starts out by robbing Peter to pay Paul and until there is nothing else left to rob from Peter, Paul gets nothing and ends up getting mad. It would be better off for these folks to avoid borrowing or selling personal belongings to make ends meet, because in the end filing bankruptcy will probably be in their future anyways. Bankruptcy was created to give good hard working Americans a second chance and a fresh start. It was not created to gather up every ounce of property and throw the individual out on the street to beg. That?s why Congress enacted bankruptcy exemption laws to allow Americans to protect some of their personal property and allow them to truly have a fresh start. When an individual comes to the place where they decide that filing bankruptcy is their way out of debt, they are surprised to learn of all the benefits from their bankruptcy attorney. The first thing they will find out about Chapter 7 bankruptcy is the power of the automatic stay. Immediately, after filing for bankruptcy petition and automatic stay is put in place stopping all legal proceedings against the debtor. Not only does it stop the creditor from calling constantly to collect on a debt, it will also stop foreclosure, repossessions, wage garnishments and lawsuits. This in itself is a good reason to file for bankruptcy because creditors are becoming more and more brazen with their collection tactics. There are laws to protect consumers from creditors, but most people don?t even know they exist. Creditors have been known to lie, threaten any even harass someone at their job. All of this is illegal but it doesn?t stop them. The automatic stay will stop this and of the creditor decides to disobey the stay, the individual should call their bankruptcy attorney and file a motion with the bankruptcy court for sanctions against this creditor. If the behavior continues, the individual could even be awarded damages. Most of the time, a letter from the bankruptcy attorney will stop it immediately. Since the real estate market imploded back in 2007, many Americans have been facing foreclosure and looking for a way to save their family home. Filing Chapter 7 bankruptcy will stop foreclosure, but in most cases only temporarily. In some situations, for someone that has a large amount of unsecured debt like credit cards, filing Chapter 7 bankruptcy will allow them to wipe out all the unsecured debt and possibly free up enough cash to be able to afford the house payment after all. The bottom line is filing bankruptcy might have something for just about everyone buried in debt, but you won?t know until you consult a bankruptcy attorney.
Kazor.com World Community News
? During this year every business is getting affected by the recession problem. Some business loses everything and has no money to pay his creditors. Creditors torched the debtor to take his money back every day so to stay away from all these things and also from legal actions, bankruptcy is the best way. ? Creditor complaint that his debtor is a bankrupt if a debtor has debts of more than ?750. ? A person can apply for a bankruptcy if he took a large amount from markets as well as big budget loans and have no capacity to pay them back.
Chapter 13 bankruptcy and co
In addition, you probably will not be able to co-sign a loan for another person. It is unlikely that your bankruptcy trustee will approve the co-signing, because it would effectively promise your income to a new creditor in the event that the person for whom you are co-signing fails to make the required payments. Further, your credit rating has suffered as a result of your bankruptcy filing, which means that you probably would not receive a very good loan deal.
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