Austin Bankruptcy Lawyer

What You Need to Know About the Bankruptcy Process  0

Bankruptcy payments are a required step for going through the bankruptcy process. Those who file bankruptcy need the best possible representation throughout their filing.

broken piggyThey might not seem pleasant, but bankruptcy payments are a much better option than losing everything. Many consumers who are considering filing, or who are already in the process, have questions about the bankruptcy payments they will have to pay as a result of their filing.

Obviously, your bankruptcy payments will differ vastly from anyone else’s, depending on the amount and type of debt, the chapter filed, and your debt-income ratio.  If you need advice and aggressive representation for your filing and how to make your bankruptcy payments, contact a lawyer right away.

Bankruptcy Attorney

An experienced attorney can, based on the information you provide about your financial and legal situation, explain how your procedure will develop, as well as inform you about which debts you will either be obligated to make bankruptcy payments on, or may choose to pay if your income allows.

For example, if you are filing chapter 7, liquidation of your assets will enable you to pay off as much of your debt as possible and make the highest bankruptcy payments as you can.

Your lawyer can also tell you whether any of your debts will survive your bankruptcy and how the bankruptcy payments will likely be organized.  It is your attorney’s responsibility to minimize the amount of debt that needs to be repaid after the liquidation of your assets, but some debts, like tax debts, will not be waived.

Similarly, in a chapter 13 filing, your attorney will explain how your assets need to be reorganized in order to repay your creditors, as well as which debts will not be waived and therefore must be supported by a repayment plan in the form of bankruptcy payments.

If your income allows, your attorney will assist you in constructing a bankruptcy payments plan for your home.  As your case proceeds, your legal representative will represent you in order to obtain court permission for this type of bankruptcy payments plan.

Your chances of minimizing bankruptcy payments as well as maximizing your chances of retaining your home with a viable repayment plan, are greatly enhanced with the aid of an attorney.

Bankruptcy Options  0

Everybody who needs to file chapter 7 or chapter 13 bankruptcy needs reliable information about these bankruptcy chapters.

bulbFirst of all, it is important to know that each of the bankruptcy chapters of the United States Bankruptcy Code is designed to offer consumers with a specific set of circumstances protection under the laws described in the various bankruptcy chapters.

As most people know, whether a consumer or corporation has to file chapter 7 or chapter 13 is not a matter of choice; it depends on the debtor’s specific situation, including the type and amount of debt, whether he possesses valuable assets, and what his income is.

In order to determine which of the bankruptcy chapters applies, debtors are obliged to take a mandatory means test before filing their bankruptcy petitions with the bankruptcy courts. If a consumer doesn’t agree with the outcome of the means test, he can appeal the decision in an attempt to qualify for one of the other bankruptcy chapters.

Chapter 7 is different from chapter 13 and because it involves the liquidation of a debtor’s assets in order to pay off his creditors. Chapter 13 involves a reorganization of the debtor’s assets and debts.

A liquidation bankruptcy reverts to selling a debtor’s items because the court determines, based on the debtor’s income, that he does not have sufficient funds to support a repayment plan to pay his creditors over an extended time period.

Both the other bankruptcy chapters are based on the debtor’s ability to make monthly payments to his creditors, which usually allows him to retain certain valuable assets as well as, in the case of corporations, stay in business.

All proceedings regulated in chapter 7 and chapter 13 are supervised by the bankruptcy courts to ensure that the specific rules and regulations are followed by every individual or corporation that files for bankruptcy.

Bankruptcy Attorneys  0

With over 1.5 million consumers expected to file bankruptcy this year in the United States, the demand for trustworthy information on bankruptcy, as well as experienced bankruptcy attorneys who provide quality services is higher than ever before.

gavel When looking for information on bankruptcy look to our nationwide network of highly qualified bankruptcy attorneys who are committed to providing superior services for all consumers who need to file.

The attorneys in our network are knowledgeable and capable of providing information on bankruptcy about all the different chapters and how they apply to both individual consumers’ and businesses financial situations.

With their vast understanding of both federal bankruptcy laws and state laws, the information on bankruptcy our attorneys offer is invaluable as are their services.

The professional guidance and legal representation of our attorneys as well as sound and current advice about information on bankruptcy, make our network a one-stop resources for those considering bankruptcy.

If you are a consumer and or a business owner in search of information on bankruptcy, or quality representation for your filing, our network offers a convenient online referral system that connects you to qualified and experienced attorneys in your area, all of which can offer all the information on bankruptcy you need to know.

Because our attorneys all have a proven track record of successfully representing private and corporate clients and doling out information on bankruptcy to all who need it, you can be sure to find the best possible legal representation.

attorney gloves

In addition, our network of attorneys understand that for consumers who are thinking of filing, or who are in the process of filing, current and reliable information on bankruptcy is key to understanding the situation they are in.

For this reason, we are dedicated to providing the most up to date and sound information on bankruptcy to consumers by means of frequently updated articles, FAQs and news to keep you informed.

This information on bankruptcy includes general background on the various chapters, as well as news about any changes to bankruptcy legislation that are important to consumers.

No matter what your situation and which chapter you need to file, our information on bankruptcy provides both sound and dependable legal services for consumers and companies in need of bankruptcy services throughout the United States.

How bankruptcy affects your credit score  0

bankcruptcy and credit scoreFiling for bankruptcy is a serious option which has to be implemented after much deliberation and forethought. Many people do not rush to file a bankruptcy claim simply because they fear the consequences of such action on their credit score rating. In fact, many financial planners would advise you to file for bankruptcy as the alternatives would hurt your credit scores even more.

Bankruptcy is a totally negative option which will have an adverse impact on your credit score for many years. The Fair Credit Reporting Act requires that the information pertaining to bankruptcy should be declared in the credit report of an individual for upto 7 – 10 years from the date of filing. The number of years it is declared depends on whether you file for bankruptcy under Chapter 7 or Chapter 13.

The Impact of Bankruptcy

The extent of the impact on your credit score will depend largely on your credit status. If you already had accounts going into collections, filing a bankruptcy claim would not make a big dent in your credit score. However, the impact is greater for those with a good credit rating.

According to FICO, a person with a fairly good rating of 600-650 might experience a drop of about 150 points, while those with the highest ratings of 700 -800 will see their credit score taking a plunge of 220 -250 points. The final credit score, whatever the outcome, will be around 500 -540.

Bankruptcy under Chapter 7 and Chapter 13

Chapter 7 is the fastest and easiest method to discharge all your debts. Your properties and assets are disposed to pay your debts. If you hadn’t sufficient assets or income, your debts will be discharged and the accounts will show zero credit. On the other hand, Chapter 13 bankruptcy claim will last several years as it involves a three to five year payment plan. Your bankruptcy information will appear in your credit report long after you have discharged your debts.

credit scoreThe immediate impact of the bankruptcy claim will be a drop in credit rating. Not everyone will have a major hit on the credit score rating. After the discharge of debts in your bankruptcy case, the credit bureaus will take into account the proportion of credit discharged when computing. However, as long as the bankruptcy particulars are mentioned in the report, you will have difficulty obtaining credit. Especially, property and auto loans will be out of your reach. Soon after your bankruptcy claims are discharged, you might receive several offers from creditors for various loans. However, these credit facilities will come at a higher interest rate.

How to remedy the situation

Soon after the discharge of the bankruptcy time, dedication, perseverance and patience are the most important factors required to remedy the effects on the credit score. There are many options available post-bankruptcy to improve the credit score.

  1. Increase your credit score by obtaining a secured credit card.

This credit facility is the easiest to obtain as credit card companies do not incur any losses or bear any risks. The credit card is obtained against a lump sum deposit. All payments are made from the money deposited. Care has to be taken to ensure you do not spend most of the money. You also need to topup the deposit to continue using the card.

  1. Apply for an auto loan

This will not be possible immediately, but with perseverance and better payment history, your credit score will increase to a fairly good rating in perhaps two to three years post bankruptcy. Automobile dealers would prefer to give auto loans if you have a fairly good credit score as the loan is secured by the vehicle.

  1. Keep your old accounts active

Credit history is an important segment of your credit report and contributes about 15% of your credit score. The longer the account is active, the greater the positive score. These accounts are not affected by your bankruptcy application.

  1. Limit opening new accounts

New accounts history provides 10% of your credit score. Unless absolutely, try not to make applications for new credit at once. It is advisable to spread out the period of new applications to limit the dent on the credit score.

filing bankruptcy and your credit score

Although the history of your bankruptcy application remains in your credit report for a specified number of years, it will gradually disappear from the report as loans are discharged.You can monitor your finances and with better debt management, improve your payment history. This will in turn lead to better credit scores. It will require plenty of time and dedication, but you can still obtain loans or credit facilities for mortgages, cars.etc after four or five years.

Bankruptcy Explained  0

Knowing information on bankruptcy is essential for providing sound and current information about bankruptcy to consumers.

Many people whose debts are so overwhelming that they cannot afford to pay them off, are in the situation that bankruptcy is their only way out.

information on bankruptcyUnfortunately, there is far from one solution that fits all and the information that can be found on the Internet is staggering and oftentimes incorrect or out of date. In order to give the consumer the clearest and most comprehensive information possible, it’s important to use information on bankruptcy that is accessible, accurate and up-to-date.

If you face deep debt and need this most drastic form of bankruptcy, consult information on bankruptcy that’s available as soon as possible to make sure you are informed enough to make the right bankruptcy choice for your situation.

The bankruptcy experts and lawyers you can find by researching information on bankruptcy, have extensive experience in successfully handling filings for clients.
When you retain the services of a bankruptcy lawyer after looking through information on bankruptcy, he will further explain what your legal position is and how this affects your filing.

The information on bankruptcy you find and your lawyer will inform you whether you need to file chapter 7, chapter 11 or chapter 13.

Mandatory Bankruptcy Steps

You can start taking the steps necessary before you can file your petition.

Mandatory steps before you may file bankruptcy include credit counseling and a means test, which should be outlined in the information on bankruptcy you find.

Once completed, a bankruptcy petition is prepared, consisting of all necessary bankruptcy forms as well as supporting documentation, and file it with the courts, another process which should be outlined in information on bankruptcy resources.

The information on bankruptcy you compile will help and your lawyer will represent you in your communications with the court and the Trustee who is appointed by the court to oversee your case.

When you have to attend the meetings and court hearings, your lawyer will represent you and make sure you understand exactly what is happening, supplementing information on bankruptcy you’ve compiled.

If you have any questions, concerns or objections to the procedure, your lawyer will address them.

If your consumer’s rights are being threatened by creditors, your lawyer will protect you by taking all necessary legal action to stop them, plus you should educate yourself with information on bankruptcy.

With the sound knowledge of information on bankruptcy to support you, you can rest assured that your bankruptcy filing will always be handled professionally and with your very best interests in mind.