Bancruptcy is a common misspelling for 'bankruptcy', but either spelling means financial ruin. For most people just thinking about bankruptcy conjures up a host of emotions ranging from fear, stress, anxiety and shame.
What's ironic is when celebrities and the wealthy file for bancruptcy no one gives it a second thought. When the average Joe seeks out bankruptcy protection, everyone perceives them as a failure. Why is it okay for people of status to take advantage of the laws meant to protect us, but a strike against hard working, law abiding citizens?
Avoid Bankruptcy, Bankruptcy Attorney Albuquerque, Bankruptcy Attorney Tampa,
It is important to realize that many people are facing enormous financial struggles. Between the economic recession, unemployment, skyrocketing cost of living and subprime lending, Americans are scraping by trying to make ends meet. More and more people are finding they have no choice but to file personal bankruptcy in order to escape financial chaos.
While it is true bankruptcy provides debtors the opportunity to reduce or eliminate outstanding debts, many Americans are unaware of the new bankruptcy laws implemented in 2005. The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) require debtors to repay a portion of their debts through a Chapter 13 repayment plan when possible.
In the past, debtors typically filed for Chapter 7; liquidation bankruptcy. This chapter of the U.S. Bankruptcy Code allows debtors to liquidate assets to repay creditors. Remaining balances are written off; allowing debtors to start fresh with a clean financial slate.
Today, debtors must undergo the 'means' test; a financial tool used to compare debtors income against their states' median income level. If debtors earn the same as or more than the median income, they must file for Chapter 13 protection and present a repayment plan to the court.
Chapter 13 repayment plans require debtors to contribute a large portion of their disposable income toward outstanding debts. This payment is usually made to a bankruptcy Trustee who disburses payments to creditors on a monthly basis until debts are paid in full. In some cases, a bankruptcy judge will request automatic payroll deduction.
Although employers cannot terminate an employee who has filed bankruptcy, they usually frown upon court-ordered payroll deductions. Not to mention, it is rather embarrassing for your employer to know your personal financial business.
One huge drawback of Chapter 13 repayment plans is the fact most people fail out of bankruptcy in less than one year. When debtors are unable to adhere to their repayment plan creditors can petition the court and request dismissal. If the judge concurs, debtors lose protection from the court and creditors can commence with collection actions.
Prior to making the decision to file bancrupty, it is important to investigate all options available. There are several bankruptcy alternatives which can provide the same results. Alternatives to bankruptcy include debt consolidation, debt management, credit counseling and budgeting.
Should you decide bankruptcy is your only saving grace, you must work with a qualified bankruptcy attorney. BAPCPA requirements are stringent, complex and confusing. Just one wrong form could prevent you from obtaining the protection you need. Don't take the risk of having your case thrown out because you weren't adequately represented.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Dallas Bankruptcy Lawyer
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment