Finance, Loans and Debt » Bankruptcy

A Short Guide On The Types Of Bankruptcy

Admin — Fri, 21 May 2010 11:53:00 +0000

If you’re considering filing for bankruptcy, one of the first things that you need to do is to explore your options and see what types of bankruptcy are out there. Bankruptcy can be hard to deal with, but you can mitigate its effects by knowing which type would suit you best. Although it can require a lot of effort on your part, make sure to take the time to really research on each and every bankruptcy type so that you’ll know how you can handle each one. Here is a short guide that might help you out.

Filing for personal bankruptcy? Then there are two types of bankruptcy that you’ll need to deal with. First we have chapter 7. You can consider filing for bankruptcy under chapter 7 if you’re stuck with a bunch of unsecured loans that you cannot possibly pay for any more once the secured loans have been paid off. Filing for bankruptcy under chapter 7 requires that your liquid assets will be submitted to the courts so that they can decide on whether you’re eligible for this type.

Another bankruptcy type that you can consider is chapter 13. This is perfect for those who still have the capacity to pay off a majority of their current loans, but with serious implications on their living conditions. This is a much favorable type compared to the other one as it provides you with a chance to rebuild your credit again, one step at a time. Since there is a provision that states you pay off your debts in a specific time period, it can give you enough time to put your finances back on track again.

So there you have it. Now that you know the 2 types of bankruptcy, use this information to your advantage. Choose one that will specifically meet your needs. And please, if you can, learn how to avoid bankruptcy by taking better control of your finances.

Steps To Take If A Creditor Attempts To Collect After A Bankruptcy Discharge

Admin — Tue, 18 May 2010 13:36:13 +0000

One of the main reasons you filed bankruptcy is to stop harassment by your creditors. You went through an intimidating process and dealt with an abundance of paperwork so you would have a fresh financial start and find relief. Even after you have received a court-approved discharge on your debts, however, it is possible that some creditors and collection agencies will still make attempts to collect the debt from you.

If this happens, consult with your Minnesota bankruptcy attorney and follow these four steps to stop threats and harassment from creditors after your bankruptcy has been finalized.

Keep Track of all Your Bankruptcy Records

You can count on your Minnesota bankruptcy lawyer to retain copies of all your pertinent bankruptcy filings and paperwork. The court will also keep this paperwork on file and you will be provided with copies for your records as well. Store these records in a secure place, preferably a safe or safe deposit box. It’s a good idea to scan them so you have a digital record as well as a paper one. These records are what you need to prove that the debt in question has been discharged.

Document Any Attempts to Collect

If you are being contacted by creditors either at home or at work even though your debt has been discharged, keep a record of each of their attempts to contact you. Write down the date, time of contact, the name of the company making the collection attempt and the representative’s name, phone number and email address.

When the creditor contacts you the first time, inform the representative that the debt has been discharged by the bankruptcy court. Do not supply any further information pertaining to your bankruptcy, your financial status or your income . You should then refer them to your lawyer for information about your bankruptcy in Minnesota.

Inform Your Attorney

It is against the law for creditors to attempt to collect debts that the bankruptcy court has discharged. Your bankruptcy attorney may decide to contact the creditor and supply proof that the debt in question has been discharged. The attorney will also send a cease and desist letter that will serve as a reminder to the creditor that they are breaking the law when they continue to attempt to collect a debt that has been discharged.

You May Need to File A Motion in Court

If the creditor continues to persist in his collection efforts, it may be necessary to have your Minnesota bankruptcy lawyer file a motion against the offending creditor. This motion will ask the court to move in your behalf and the creditor could, if found guilty, be ordered to pay a fine.

Bankruptcy is a legal way to get a fresh financial start and you have no legal obligation to pay any debt that has been discharged. Speak to your bankruptcy attorney immediately if any of those creditors continue to pursue collection efforts.

Why You Should Think Twice About a Bankruptcy Filing

Admin — Thu, 04 Mar 2010 08:00:42 +0000

Although bankruptcy is often touted as the only way to wipe the slate clean when it comes to your troubled finances, the truth is that many financial professionals are quick to caution their clients against it. These advisers take a cautious approach not because they believe that bankruptcy can’t be a viable option, but because there are so many other alternatives to bankruptcy. The simple truth is that people whom have actually been through the process will tell you that it’s far from a painless procedure, nor will they confirm the wild claims that bankruptcy is guaranteed to wipe the slate clean. On the contrary, they will likely tell you that it’s an emotionally challenging ordeal to claim bankruptcy. It’s far from a happy ending that will allow you to skip off merrily into the sunset. In fact, bankruptcy is among the top 5 negative life changing events that humans can experience along with things like divorce, illness, disabilities and losing a loved one. Although it seems ridiculous to compare the bankruptcy process to losing someone close, the truth remains that a bankruptcy filing can leave a lasting effect on your mental and financial well being.

Fortunately, there are quite a few different options available for those looking to repair their finances apart from bankruptcy. Strategies like credit counseling, debt repayment plans, consolidation loans and even cutting up your credit cards can be worthwhile options. If you are stuck on bankruptcy, however, it’s essential that you contact a certified professional, preferably a bankruptcy attorney. A qualified attorney can help you decide the best options based on your individual situation and can assist you with how to claim bankruptcy should that be your best option.

Claiming bankruptcy can be a worthwhile option for many people, though it’s important to understand that alternatives do exist. Gaining a thorough understanding of the options can place you in a much better position and can help you attain your ultimate goal of repairing your finances.