Consequences of Bankruptcy

Consequences of BankruptcyReviewing legal resources on places like LegalZoom can help you to understand your rights and the consequences of certain legal courses. One place where this can be beneficial is when you are considering a course of action such as bankruptcy proceedings. While bankruptcy proceedings are intended to provide relief for individuals who cannot fulfill their financial obligations in certain situations, it is not a proceeding which lacks consequences. Before you decide that this is what you want to do, you need to have a basic understanding of what the long term impact will be.


Not Everything Will Be Discharged

Bankruptcy can only remove certain debts. This means that while you may not have to make payments on consumer items on your credit card, you are still likely to have to pay your home lender for the lien on your house. Otherwise, you risk losing it. The discharges which are permitted are typically of a personal nature and do not apply to those with secured creditors.

Loss of Credit Rating

Once you file for bankruptcy, your credit score goes down significantly. While you will be able to gradually build it up over time, it will remain on your record for many years to come. This can make obtaining additional financing very difficult as banks and credit institutions are going to be unlikely to trust you unless you can give them good reason to.

Restrictions on Purchases

After you go bankrupt, you must wait for two years before you can purchase a house. You cannot even be considered for another loan until those two years are up. At that point though, it is likely to still be difficult to obtain a loan. More than likely you will have to demonstrate that you have been employed and kept your debt under control, and in some cases, you may be required to make a significantly larger down payment.

Lack of Privacy

A difficult part about the bankruptcy process is that you will lose a significant amount of privacy. Bankruptcy proceedings require significant amounts of personal information including all of your financial information and bankruptcy schedules. While sensitive information such as account numbers and social security numbers will not be available to the public, the general proceedings and how you spent your money will be available to the general public if they choose to look into it in many states.

Required Sales

Depending on the situation and the kinds of creditors involved, you may still end up having to sell a certain portion of your property to make some of the payments. This depends primarily on whether you have successfully managed to exempt your property. This is one of the risks, however, which you will be far more likely to reduce by hiring a good attorney who can walk through the process and ensure that most of your property is exempted. If you do not choose to have an attorney, bear in mind that you may be required to sell certain things which would result in a net value which would help to pay your creditors.

Why Hire a Bankruptcy Attorney?

bankruptcy attorneyDealing with bankruptcy is always a difficult time. You have to manage it all while also trying to pick up the piece of your life once again. With such a massive loss and the need to get back up, you are going to have to have someone by your side, and not just for emotional support. You need knowledge and skills that make it possible for you to get through this with as few issues as possible. If you want to be sure that you have the most you can possibly have, you need a lawyer who can help you navigate this stressful time. A bankruptcy attorney in Utah will help you to get through this, even if you have quite a bit ahead of you. This is someone who knows bankruptcy and how to guide you from the very start, helping you to manage it all more easily.


Bankruptcy is filed when you are far too into debt to deal with it all. The constant calls from creditors and that massive amount of money owed grow heavy on your life, causing you several types of issues. You feel you have nowhere else to go and you are drained, both physically and emotionally, so bankruptcy is the best option. This gives you the chance to liquidate all that you own, unless it is an exception under the law, so that the creditors receive their money and you are no longer receiving their calls. This step is one every person can take in this situation, but you should have some knowledge behind you to ensure that you are making the choices that are right for you.


An attorney can help you during this time in several ways. The biggest, of course, is navigating you through the difficulties associated with this type of process. A lawyer knows the facts and the law and can use that knowledge for you. This type of benefit gives you the chance to come out of this ordeal in the best manner possible. You have someone who can understand everything related to your case and deal with it all effectively so that you see results that help you the most.


Sometimes, an issue may arise. Whether that is a problem with the process or a creditor contacting you when they should not, you need someone to deal with this so that you come out on top. Facing this alone, especially when you have little to no knowledge or experience regarding this matter, may not produce the type of result you are after. You need a lawyer who can manage every detail and increase your chances of success. Whether this is protecting your rights or ensuring that the process goes through without a problem, that lawyer is there for you.


Depending on a bankruptcy attorney in Utah is the best option for you. This is someone who knows the bankruptcy laws and how to make them work in your favor. Having someone with such knowledge and skill on your side gives you the opportunity to find success in the process. Coming out of something so stressful and difficult with more to your name than you thought possible is a great feeling, and a lawyer can make that happen.

Caught in The Bankruptcy Dilemma? Here is The Solution!

bankruptcy solutionThe year 2005 came with some noteworthy amendments in US bankruptcy law. It changed the very parameters of filing a bankruptcy. Earlier more than 90{77e4f13bffff39a77640d2f040ceda7a1e812745d41e2ba69a482d80ad5e3070} of people were able to get relief from their debts. However, the amended law has introduced some stringent practices and rules which are not very people friendly. To get a hang on the changed laws it is recommended to hire an expert bankruptcy attorney or bankruptcy lawyer. To understand how Bankruptcy laws work in this country, you need to be abreast with certain key areas which the law specifically covers. Chapter 7,13 and 11 are the three main chapters where bankruptcy is filed. And here is a quick brief about the outstanding features of these chapters.


Chapter 7:

  • Mainly applies to individuals, corporate and business partners
  • Covers liquidation of assets
  • Exempt properties are protected from being sold; these assets are known as exempt properties. Only the non-exempt properties are sold and the proceeds of the sale will be distributed to the creditors accordingly.
  • Believed to have adverse effects on your credit scores. (However, the impact can be gradually negated once you are able to revive your financial situation.)


Chapter 13:

  • Covers reorganization process for the majority of private individuals
  • In contrast to Chapter 7, the defaulter won’t lose financial and property assets
  • Interest rates on your mortgage or car loans reduced or temporarily halt foreclosures and collection of debts
  • There is a stipulated time period to restructure your finances and start afresh by delaying the repayment of loans.
  • This chapter is believed to be far less damaging on your credit score


Chapter 11:

  • Slightly uncommon, Chapter 11 is useful for an individual or business entity which wishes to continue its business.


The best way I see to handle your bankruptcy situation in any of the following chapters is to hire a notable bankruptcy attorney.  And the right time to do so is immediately after being notified about the situation. For those of you residing in New Jersey, Bhatt Law Group offer expert New Jersey bankruptcy attorney and lawyers for the aggrieved clients.

About Bhatt Law Group: For those residing in and around New Jersey, Bhatt Law Group is a name which many trust. Over the years, our expert NJ attorneys and lawyers have successfully filed bankruptcy cases. When you’re with us you don’t need to about your application anymore. We take optimum time and give specialized guidance to concerned clients through our talented NJ attorneys and lawyers. We believe that compassion, a keen knowledge of New Jersey bankruptcy law, attention to detail, and effective client communication is the key to our success.

Simply put – We get your job done right!

The Gritty Details of Chapter 13 Bankruptcy

If you are still earning a wage and have decided to file for bankruptcy using the chapter 13 option, as opposed to chapter 7, this article exists for you to understand all of the little details that are sometimes overlooked. Hopefully, this article will arm you well for your day in court.

chapter 13 bankruptcyIn order to qualify, you cannot have UNSECURED debts in excess of $360,475.00. “Unsecured” is defined by not having any specific collateral backing these debts. School loans are a good example of an unsecured debt. In addition, you may not have SECURED debts that exceed $1,081,400.00. “Secured” debts are those that are backed or secured with collateral. In addition, you cannot have had a bankruptcy petition dismissed within the prior 180 days to your present filing (which basically says that if your petition has been dismissed, you need to wait 6 months to try again). And the last thing is that you must receive credit counseling from a state approved counseling agency within 6 months prior to filing your petition. A word to the wise: if you think you might need to file bankruptcy, the first step you should take is attend credit counseling to get this portion right out of the way. Even if you don’t end up filing, it’s still helpful.


If you meet the above requirements, that is essentially like pre-qualifying for a loan. Next, you have to file a big list of things with the court in a timely manner. Those are: a schedule of assets and liabilities; current expenses and income; and unexpired leases and contracts. You will also need a statement for your completed credit counseling; a statement of you financial affairs; a statement of your current monthly net income; and a statement of any potential increases in either net income or expenses (or both. You’ll need to have proof of income for the previous 60 days from an employer, and a record of any federal or state tuition accounts. Whew. Sounds like a lot. Well there’s more.


To able to compile most of the above list, you will need to compile several other things to help create that list of items. Those are: a list of all creditors, the amounts they are owed, and the nature of what is being claimed; a list of any and all property that you currently hold; a highly detailed schedule of all of your monthly expenses; and the source of your income, the amount you receive, and the frequency with which it is paid.


The court is going to charge a mandatory $46 miscellaneous administrative fee, and a $235 filing fee. There are no ways out of this, and it is governed on a federal level, so you will not have any state discounts (or hikes) to lean on.


Keep in mind that you must collect all of the above information for your spouse, even if he/she is not also filing for bankruptcy. The court needs to get a complete picture of the “household’s” total income generation ability.


If you can handle all of the above-and do it in a timely fashion-you are ahead of the game and this will likely be a smooth process.

Small Business Bankruptcy and Its Outcome

The majority of people who incur business debt opt to file a personal Chapter 7 bankruptcy and take in all of their personal and small business debts in the filing. More often than not, there usually is no ground for an LLC or a Corporation to file a bankruptcy separately for the reason that – one the business cannot be ministered a discharge, secondly the trustee liquidates (sells off) the corporate assets condition to the fact that their worth is more than the debt amount to be paid by the business but this is hardly ever the case, and lastly ithands out official notice to business creditors that the business is closed, even though the creditors typically by now know that fact as explained by Minneapolis bankruptcy lawyer.Small Business BankruptcyThe one best benefit of a small business bankruptcy in a single personal Chapter 7 bankruptcy is that it lets you to save money by using one petition to discharge your personal debt; together with your personal guarantee of business debt, suggests the Minnesota bankruptcy attorney.

After filing your bankruptcy, you will have to go to attend a 341 meeting also acknowledged as a ‘meeting of creditors’ more or less one month later. The trustee possibly will raise some questions in relation to your business at this meeting of creditors where your creditors will also given invitation to be present so that they too can interact and raise some questions about the financial condition of your. This is an important step for you to obtain bankruptcy maintains Minneapolis bankruptcy lawyer

In case, there is any property or other possessions that have not been exempted, and are left over from the company, the trustee is authorized to get them together and put them up for sale at some point after the meeting of creditors. After the creditor has a 60-day period to raise objection you will be given your discharge. Your case will be closed following the distribution of all proceeds collected from the liquidated assets by the trustee.

In case you are a business owner who is thinking about bankruptcy, you should definitely consult an experienced Minnesota bankruptcy attorney to appraise various alternatives.

Filing for bankruptcy is something that needs your complete attention. Such financial matters are best taken care of by professional bankruptcy laywers. Minneapolis bankruptcy lawyer will help you file a Chapter 7 or Chapter 13 bankruptcy petition and also advice you on how not to disrupte your credit score.

Use This Advice To Do Well In Hard Times

personal finance adviceMost people realize that the key to a secure, peaceful future is to make consistently wise decisions in the realm of personal finance. Perhaps the best way to accomplish this task isto make sure you possess as much knowledge as possible on the topic. Study the tips that follow and you will be well on your way to mastering your financial future.

All your credit cards should be paid in full each month. When you aren’t paying the full balance on your credit cards, you end up usually getting hit with high-interest charges. Make sure whatever you purchase that there is enough to pay for it at the end of the month. If you aren’t paying your credit cards in full, you end up basically giving throwing away a lot of money.

A good personal finance tip is to make sure you have a will in place. The last thing you’d want is for your family to miss out on getting their proper inheritances because the right paperwork hadn’t been filled out. Protect yourself and your family financially by writing up your own will.

Use a smart payment method. Are you a sales shopper who loves to boast about the great deal you got on a new pair of shoes? Did you pay for them with a credit card? Well, consider this: a pair of shoes on sale for half price will probably cost you more than full price, if you charge it and make minimum payments on the credit card! Pay cash instead, or pay-off your card each month to avoid finance charges.

Do not buy a new car unless, you have several thousand dollars you would like to throw away. The typical new car purchaser loses between $5,000 to $10,000, as soon as the car is driven off the sales lot. A good used car is a much better investment. The money saved stays in your bank account.

Before you say “I do,” take an honest look at the way you and your intended look at handling personal finance issues. Money can be the number one topic that couples argue about. However, if you and your loved one have an open discussion before you walk down the isle, it can pave the way for a smooth financial future.

Get a piggy bank and put a few dollars in it every week and forget about it. Make that your fun money. After a few months, use it to have a nice, fun night out. That way, you won’t feel guilty about having a night of entertainment because the money was already removed from your budget and accounted for.

If you are looking to purchase a new car, go for one that is fuel efficient. Not only are they better for the environment, but fuel efficient cars will save you tons of money on gas. Just be aware that many cars that were not made in recent years are not fuel efficient.

Whenever possible, make the money in your wallet hundred dollar bills or the largest possible denominations where you live. Having big bills in your wallet will make you feel a little better about the money you have. You will be far less likely to spend them unless you absolutely have to.

Solid grounding when it comes to personal finance is often the keystone of a happy life. The best way to prepare is to make the right types of decisions when it comes to money is to make a real study of the topic in a comprehensive manner. Read and revisit the concepts in the preceding article and you will have the foundation you need to meet your financial goals.

Tips That Can Help You Make Your Personal Finance Successful

Personal Finance tipsTo help you manage your finances better you should not spend more money than you are bringing in. Too many people fall into the trap of buying something now and worrying about it later. In other words, do not put money on your credit cards, if you cannot afford to pay it back right away. The following article offers great money managing tips that can advise you on when, and when not to, use credit cards.

Learn to live frugally as a way of life. Consider going with only one car for your family. Your car is probably the second most expensive item in your budget, after your home. This can be a short-term strategy to help you catch up on bills and build up your savings, or an ongoing lifestyle change.

If you find it extremely difficult to set aside money for savings every month, think about having your employer do it for you. Some employers will give you the option of splitting up your paycheck. Part of it will go into your spending account, and the other part into your savings account. If that isn’t an option, have your bank automatically direct a certain amount to your savings account from your spending account every month.

One important goal of your personal finance strategy should be a commitment to saving for your financial future. The earlier you begin to save for a secure financial future, the better. Regular deductions from your paycheck can be deposited directly into a savings account at your bank. Even a small amount can make a big difference in the long term.

A great personal finance tip is to start taking advantage of coupon services such as Groupon.  Groupon is an amazing way to save money on everything such as products, services, and even trips. Relying on groupon when making your purchases will save you more money than you can even imagine.

Refrain from going out with your co-workers to restaurants on lunch break. These bills can cost upwards of 10 to 15 dollars per day and can put a real dent in your expenses over the course of the year. Bringing lunch to work is just as efficient and does not cost a lot of money.

Have your own garage sale, when you feel like you’ve accumulated too much stuff. If your house has gotten smaller because you have a lot of junk taking up too much room, you can always sell it to your neighbors for a little bit of profit.

Streamline your financial life by moving into a smaller home. Even though you may be able to pay a larger mortgage, take the smaller one and build up your savings, instead. A smaller home means lower maintenance costs, less furniture to buy, and a comfortable, cottagey feeling that could even, bring your family closer together.

Always make every attempt to plan for the future. Keep at least three months worth of income in a readily accessible savings account, in case of emergency. Many times, unexpected accidents happen, which could interrupt your regular source of income. Adequate savings allows you to pay expenses, while searching for a new source of income.

An often forgotten financial tip is to claim as much as possible on your W-9 through your employment. This will give you what you deserve with each check so that you can save the money for yourself instead of loaning it to the government. If you file zero you are just giving the government money to invest.

As you can see from the article above, too many people spend money on items they really cannot afford. In order to properly manage your finances, you should not spend money that you do not have. Stick to the informative tips that you just read, and soon you will see your savings account get bigger.

12 Month Loans- Finances for short term daily needs!

Today when everything costs way too expensive getting a loan is the only option in fact it is very essential. Even salaried people undergo financial crunches. Fortunately lenders have introduced a financial facility known as 12 month loans for people who face diverse problems due to lack of funds. People can opt for secured as well as unsecured loans as 12 month loans are available in both these forms. A person can choose any of these forms depending on what loan amount he wants and for what purposes. Secured form of 12 month loans are low cost and people save a lot of money in this form. Unsecured loans give people the chance to get the desired money without pledging collateral.

12 month loansThe amount which a person can obtain with 12 month loans differs in the case of secured and unsecured forms. When a person opts for secured form, he has to place collateral as security in order to assure lenders that he would repay the loan amount in the stipulated time period. The secured form of loan can get borrowers $5,000 to $100,000 for a period of 3 years to 25 years.  On the other hand, unsecured loans do not require any collateral to be given by the borrower as it is unsecured in nature. This form of 12 month loans is beneficial for tenants and non homeowners. A person can obtain money in the range of $1,000 to $25,000 for a period of 6 months to 10 years with the unsecured form.

In the case of 12 month loans a borrower does not have to worry about his past credit mistakes if any. As there are no credit checks conducted in case of 12 month loans and so every kind of borrower is approved under this loan facility. Before applying for these loans borrower has to meet some terms and conditions. Any person who is 18 years of age and a UK citizen can apply for 12 month loans. Not only this, borrower must have a bank account in his name, permanent job with a decent salary. Fulfillment of these conditions leads to instant approval. 12 month loans can be easily obtained as approval is instant. The borrower has to fill an online form in which he is required to fill some details such as his name, age and address. Once the form is submitted, it is verified by the lender and the cash is then deposited in borrower’s account within 24 hours.

Whether You Want To Buy A House Or Have A Baby, You Need To Know Certain Things About Personal Finances

Knowing how to properly manage personal finances is not a skill that people are naturally born with. To get the most out of your money, and manage your finances in a way that protects your financial security, takes a lot of education and learning. The knowledge contained in this article is designed to help you better manage your personal finances.

Do everything you can to see if there are ways to save some money. What bills do you pay that you can try to make cheaper for your family? Could you cut down on the electric bill by paying more attention to usage? Have you checked with your insurance company recently to see if there is a savings waiting for you?

A good personal finance tip is to bring a frugal friend or a family member with you when you’re out doing your shopping. This is great because they’ll stop you from spending too much and prevent you from going on a spree. They are very level-headed and you will be surprised at how much money you can save.

Always push credit when paying with your debit card. Banks often charge processing fees that can really add up over the course of a year. By using your debit card as if it were a credit card, you can save quite a bit of money without much extra effort at all.

It is important to have an honest budget. Tracking your expenditures is extremely wise, therefore, a budget is key. However, many people do not tell themselves the truth about how much they are spending. Look at your checking account and build your budget off spending that is verifiable, not guesswork.

If you have several credit cards, you can raise your credit score by transferring all balances to one card. Lenders consider you a better credit risk if you have one larger balance than many accounts with smaller balances. Plus, with one lower monthly payment, you can add extra and pay off the account early.

Using a frugal approach to spending can be a powerful method of keeping your personal finances under control. A few simple changes in your spending can make a dramatic difference. Purchase a used car instead of a new one. Shop around for a cheaper cell phone plan. Look for ways to make your home more energy efficient.

Make sure to always have enough cash on hand in case of an emergency. It is recommended that you have enough in your savings account to cover six to nine months worth of expenses. That way you will be covered in the event that you lose your job or you become injured.

As was mentioned earlier, people are not born knowing how to properly manage their personal finances. Successful financial management is a skill that is learned. Read this article several times to take in all of the information that it contains, and then apply what you’ve learned to your own situation and see how it can improve your life.

Credit Consolidation – 4 Of The Most Popular Methods Being Used

Given the state of the economy, and with no end in sight, more and more Americans are using credit consolidation as a way to cope with their debt problems. The rate of which new businesses are opening up in this market is hard to keep track of these days. There is one thing for sure though, the numbers are huge. There are 4 methods being used by consumers that we will be explaining here that could possibly help anyone get their finances back on the road to recovery.

credit consolidation umbrellaRefinancing or a home equity line of credit (also known as HELOC) is a way to achieve credit consolidation that we will discuss first. This strategy was once very popular, until recently that is. It seemed as though by some sort of magic that one day homeowners woke up to find the price of their home had skyrocketed and banks were begging them to take their money, wow what a great option this was. Talk about crashing and burning, it seems as though we did a complete 360 in record time. No matter what part of the country you live in (with very few exceptions) the value of a home is decreasing and the prospects of getting a loan (for most people) are dwindling, making this option not as attractive as it once was. Before we go any further I would be negligent if I didn’t discuss the one huge factor with this that quite frankly scares the heck out of most people I speak to. As we all know by now, when we least expect it, the unexpected happens. The reason why I am mentioning this is because if something unforeseen should occur in your life (job loss, tragic loss in family that results in loss income, illness etc.) this could put your home in jeopardy. So before jumping in the water head first, take everything under consideration first before deciding.

Credit consolidation can also be achieved through a debt settlement program. The simplicity and ease of finding then joining them are making credit consolidation services like these extremely popular these days. Before you ask I can tell you right now that yes, you can and will be entitled to many exciting benefits by simply enrolling into a program. First off you know those late fees and interest charges that they have been jamming you up with, well you can kiss them goodbye. There will be a nice chunk of your debt wiped out as if it never existed. Finally that will all mean you will get out from this debt sooner rather then later. Living debt free, how cool does that sound. Unfortunately its that time again. There is a downside to this as well. As long as you are in the program and have not actually completed it, you can expect to take a hit on your credit rating. It sure beats bankruptcy, and takes less time to recover from. After successfully completing and fulfilling your end of the program that you joined, you will see your rating being restored to where it once was.

Another way people are using credit consolidation to help with their finances is through a DMP or debt management plan. Consumers will enjoy such benefits as reduced interest rates, those bothersome phone calls will stop, no more over limit fees and late charges, plus payments will be combined to form a single monthly payment. I almost forgot to mention the fact that as you use these types of credit consolidation services your credit (rating and worthiness) will not be affected in a negative way. It will generally take the average consumer about 3-5 years until they become free from their debt.

The next plan is probably used the least out of all the credit consolidation methods we will be speaking about. Have you guessed it yet, that’s right, it’s the personal loan. These are unsecured loans, meaning in all likelihood it will be much tougher to get one and the amount you receive will be much smaller then you will probably want. Being that your home will not be used as collateral, that will mean the risk will fall on the lender of the loan. The consumer will in turn be charged at higher interest rates. Now you know why this was put last and why its not among the most popular ways being used. I guess the one plus would be you would not need collateral, therefore you would not be putting your house in jeopardy. If your trying to regain control of your finances then you may want to check out at least one of the 4 credit consolidation services or methods we just discussed.