Bankruptcy

Bankruptcy Fraud Attorney

A qualified bankruptcy fraud attorney can provide legal counsel in the event that a debtor is charged with falsifying information on a petition. No one wants assets seized to pay outstanding debts and the tendency is to hold onto as much property and disposable income as possible. Almost all fraudulent cases involve debtors who attempt to conceal assets from being liquidated to satisfy creditors. If trustees feel that a debtor has hidden finances, the penalty is imprisonment if found guilty. Proverbs 11:3 admonishes, “The integrity of the upright shall guide them: but the perverseness of transgressors shall destroy them.” Chapter 7 and 13 petitioners, as well as Chapter 11 business filers, have all been found guilty of hiding funds and property from the federal government. Fraudulent practices include transferring real property and large sums of money to children or relatives, filing multiple cases in different states to avoid paying creditors, and using stolen Social Security numbers and identities to open bank accounts under assumed names. Of course, not all bankrupt individuals are fraudulent; and some desperately need the debt relief afforded by the court system to reestablish fiscal stability. But, the criminal action of a few unscrupulous consumers threatens to jeopardize the civil rights of many.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) was legislated to prevent and penalize consumers and businesses filing fraudulent cases. Intentionally deceptive filings cost the government, taxpayers, creditors and debtors hundreds of thousands of dollars annually. Because of deceptive filings, insolvency as a legal means of providing consumers debt relief, has gotten a bad reputation and caused legislators and lending institutions to feed debtors to advocate stringent bankruptcy reforms. But the severity of the reforms have forced bankruptcy fraud attorneys, debt-relief agencies, petition preparers, creditors and debtors alike to take a good hard look at alternatives to traditional asset protection efforts. In light of new reforms, individuals may have to spend more for legal fees to find bankruptcy lawyer willing to handle cases.

When shopping for a qualified attorney, consumers should consult a local referral agency or state Bar Association, browse the Internet, or ask friends, relatives and coworkers to make recommendations. Filing insolvency can be a tedious undertaking; and the new laws can be confusing. Consumers should find bankruptcy lawyer who not only specialize in personal and business bankruptcy, but whose practice has longevity. Any law school grad can hang out a shingle, but debtors need to make sure to find bankruptcy lawyer who not only has the education, but the expertise and experience to deftly handle cases and provide more than adequate representation. The debtor’s financial future and integrity is at stake.

Corporate Financial Distress and Bankruptcy: Predict and Avoid Bankruptcy, Analyze and Invest in Distressed Debt A comprehensive look at the enormous growth and evolution of distressed debt, corporate bankruptcy, and credit risk defaultbrbrThis Third Edition of the most authoritative finance book on the topic updates and expands its discussion of corporate distress and bankruptcy, as well as the related markets dealing with high-yield and distressed debt, and offers state-of-the-art analysis and research on the costs of bankruptcy, credit default prediction, the post-emergence period performance of bankrupt firms, and more.brbrEdward I. Altman (New York, NY) is the Max L. Heine Professor of Finance at the Stern School of Business, New York University. He received his MBA and PhD in finance from the University of California, Los Angeles. Edith Hotchkiss (Chester Hill, MA) is Associate Professor of Finance at Boston College. She received her PhD from the Stern School of Business and her BA from Dartmouth College.Preface.pAcknowledgments.pAbout the Authors.pbPART ONE:/b bThe Legal, Economic, and Investment Dimensions of Corporate Bankruptcy and Distressed Restructurings./bpChapter 1: Corporate Distress: Introduction and Statistical Background.pChapter 2: Evolution of the Bankruptcy Process in the United States and International Comparisons.pChapter 3: Post–Chapter 11 Performance.pChapter 4: The Costs of Bankruptcy.pChapter 5: Distressed Firm Valuation.pChapter 6: Firm Valuation and Corporate Leveraged Restructuring.pChapter 7: The High Yield Bond Market: Risks and Returns for Investors and Analysts.pChapter 8: Investing in Distressed Securities.pChapter 9: Risk-Return Performance of Defaulted Bonds and Bank Loans.pChapter 10: Corporate Governance in Distressed Firms.pbPART TWO:/b bTechniques for the Classification and Prediction of Corporate Financial Distress and Their Applications./bpChapter 11: Corporate Credit Scoring–Insolvency Risk Models.pChapter 12: An Emerging Market Credit Scoring System for Corporates.

No one should attempt to file for debt protection without legal counsel, unless they have done a thorough study of the law and understand filing requirements. Information is readily available on the Internet and in the local library. Many debtors can find bankruptcy lawyer in the telephone directory who offer free initial consultations. Consulting with an attorney will give an individual more information about proceedings, legal rights, and alternatives to filing, so that they are able to make a qualified decision. Before an initial consultation, debtors should be well prepared. Consumers shouldn’t walk into the lawyer’s office empty-handed. Furnishing enough financial information should provide a good mental picture of the debtor’s financial status, help save time and hourly legal fees, and help the attorney arrive at a reasonable estimate. Debtors should prepare strong financial statements, including assets and liabilities, a listing of creditors, federal and state income tax returns, home mortgage balances, auto loan payments, and outstanding credit card debt. Attorneys will also want to identify the top seven secured creditor accounts — these will be the first to get paid. During the first consultation, debtors should be as honest and forthcoming as possible. Don’t try to hide assets or information which may be detrimental to the case. It does debtors no good to find bankruptcy lawyer who is competent and then attempt to conceal information that might result in a charge of fraud and jeopardize the lawyer’s career if discovered at a later date. The more information that consumers share, the better prepared the attorney will be before facing creditors, trustees and the judge during the actual proceeding.

In the event that a debtor is charged with filing a fraudulent claim, finding a good bankruptcy fraud attorney will be a priority. Debtors may want to consult with the lawyer who first represented them in the original proceeding. If the original bankruptcy attorney cannot take the case, they may recommend someone skilled in defending fraudulent claimants. The local legal aide office or state Bar Association may also be consulted to find bankruptcy lawyers who specialize in fraudulent claims. Working with a lawyer expected to aid in the debtor’s defense requires mutual trust, commitment and confidentiality. The bankruptcy fraud attorney must feel confident that the accused debtor is innocent of charges; and the debtor must feel that the attorney is going to provide a vigorous, targeted defense. In order to dispute charges of fraud, debtors should give lawyers full disclosure of personal and business finances, paying special attention to the court’s concerns. In turn, lawyers should offer realistic expectations of outcomes and prepare debtors to address any indescrepancies, questions or concerns the court may have. Compiling enough accurate and honest fiscal information will give a bankruptcy fraud attorney sufficient ammunition to build a solid case in defense of an innocent, but hopefully wrongfully accused debtor.

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Bankruptcy

Chapter 13 Bankruptcy Laws

Chapter 13 bankruptcy laws have been changed to require more tests, which make qualification for filing more difficult than it was before. Of primary importance is the new disposable income test. Debtors must have regular income to qualify, and must propose a three- or five-year plan and show an ability to pay to the plan for the entire time. Under the old laws, judges were allowed to determine the reasonableness of living expenses according to individual circumstances and historical data. The new Chapter 13 bankruptcy laws require the judge to calculate disposable income based on a single standard for an approved budget for all people with no allowance for special needs, disabilities, incapacities, or costs of commuting.

Apparently, it was abuse that spurred the passage of the new Chapter 13 bankruptcy laws. Now, anyone considering filing under any of the various legal channels must attend an approved course that provides credit counseling, budget investigation, and financial analysis, and the course must be concluded within 180 days before filing his case with the Bankruptcy Court. There are no guidelines in the law for how much should be charged for tuition for this course, but there are free classes online, and some nonprofit organizations that are subsidized by major credit card companies are offering the course. For the attentive student, the course should give an improved vision of his or her financial status and goals, and the tools for avoiding getting into financial trouble again. This is significant, since the Chapter 13 bankruptcy abuse lawmakers were particularly concerned about was repeated filings of petitions by an individual

Chapter 13 bankruptcy abuse under the new laws is probably not impossible, but very much less likely to happen. If there is a presumption of abuse by someone filing under Chapter 7 (which would wipe the slate clean), his case will automatically be changed to a 13 (requiring a plan of payment). The presumption of abuse depends upon the outcome of the means test now in place. Debtors who net more every month than their state’s median income would be subject to a means test. If the debtor has at least $166.67 in current monthly income after the allowed deductions, abuse is presumed no matter the amount of the debtor’s unsecured debt; or, if the debtor had at least $100 of such income, abuse is presumed if he has sufficient funds to pay at least twenty-five percent of non priority unsecured debt over five years. There is a clause that allows rebuttal of the presumption of abuse if there are detailed documents proving special circumstances requiring additional expenses, or adjustment of current monthly total income.

IRS standards are used to calculate what debtors can claim as monthly living expenses, which would include food, clothing, personal care, and entertainment, depending on the debtor’s family size. An increase up to five percent of that national standard can be allowed if it can be shown that it is reasonable and necessary. The new Chapter 13 bankruptcy laws require the debtor must file a certificate of credit counseling and repayment plan within 180 days of filing. (This requirement is waived for debtors who are disabled, incapacitated, or on active duty in a military zone.) The debtor must also submit the following: (1) a statement demonstrating debtor has received and read Sec. 342(b) notice; (2) pay stubs for the previous 60 days; (3) a statement of projected income after discharge or dismissal of the case, or increases in expenditures; (4) itemized monthly net income; (5) his most recent IRS return; (6) provide tax returns each year of the proceeding; (7) an annual income/expense statement; (8) disclosure of qualified education savings accounts and tuition programs; and (9) if requested by trustee, a photo ID. (Whew!) And that isn’t all. Debtors must perform their intent to surrender, reaffirm, or redeem debt secured by property of the estate within 30 days after the first date set for the meeting of creditors. There are some other provisions fitting particular circumstances, and the best source for that information would be a good attorney. In fact, having a good attorney may be the only way to completely avoid the pitfalls of inadvertent Chapter 13 bankruptcy abuse.

Previous Chapter 13 bankruptcy abuse has been addressed by several provisions, and they are: increased protection for secured debtors; prompt filing of schedules and other information; adjustments to ensure that creditors receive notice of filings; require plans to extend for five years for debtors with incomes over the statutory limit; and limit the shelter to real estate assets. Also the time between filing Chapters 7 and 13 has been expanded to eight years. Further, non dischargeable debts have been expanded. The Court has to trust that the debtor will comply with the requirements under the law, and the debtor trusts that he will be protected and his work will be appreciated. Scripture mentions trust in the Lord: “The LORD recompense thy work, and a full reward be given thee of the LORD God of Israel, under whose wings thou art come to trust.” (Ruth 2:12)

Clearly, the new Chapter 13 bankruptcy laws have made filing under that provision more difficult, and have given greater protection to creditors. For debtors who are in the position of really needing the protection of these provisions for getting out from under an excessive debt burden, this is probably not a total deterrent. Good attorneys will be able to evaluate an individual’s position and explain the requirements thoroughly, so one can navigate the proverbial rough waters with some certainty. On the other side of the coin, Chapter 13 bankruptcy abuse should certainly be substantially reduced.

Bankruptcy

Chapter 13 Attorney

A chapter 13 bankruptcy attorney is the person to call for professional assistance in deciding to go bankrupt and how the whole process works. The attorney will work with clients so that filing will help them rehabilitate their credit through the restrictions and limitations of the court. When filing, debtors pay off some debts, but it is on much better terms, i.e., lower or no interest. Also, clients don’t have to sell assets under a Chapter 13 if they are working and can make payments. The United States Code allows up to five years to pay off creditors, and the process is completely supervised by the court. The chapter 13 bankruptcy attorney will make sure the debtor’s interests are protected.

“The righteous shall inherit the land, and dwell therein for ever” (Psalm 37:29). Despite the fact that our earthly possessions mean little in the long run, the debtor is allowed to keep all of his property under Chapter 13. Currently, a bankruptcy lawyer will take into account the debtor’s regular monthly payments such as house and car notes, and utilities when deciding what the monthly payments will be. After the attorney has worked out a plan with the court, the client begins making payments 30 to 45 days after the case begins. Payments are made to the trustee who has been appointed by the court, and he disburses the funds to the creditors. The creditors are required by law to strictly follow the terms of the repayment plan. They can no longer look to the debtor directly for payment. After the payment plan is filed, there will be a confirmation hearing before a judge. Clients may appear at the hearing, and if they have a problem with the plan, objections are permitted. The judge will hear both sides before confirming the plan. Once the plan is confirmed, payments can begin.

The ability to make the monthly payments is a necessary part of a Chapter 13, so the client must be gainfully employed, or at least have prospects of future income. Those who need to file because of job loss and trouble finding employment may have to file under Chapter 7, or find some other way out of indebtedness, such as consolidation or an equity loan. When consulting a Chapter 13 bankruptcy attorney, he will lay out the options and will know his client’s ability to obtain new loans or credit without the court’s permission. The debtor’s bank may be one of those which offers “secured” credit cards, those with a certain amount of money put on it by the cardholder. Two years after going bankrupt, clients will once again be eligible for mortgage loans on the same terms as someone who never filed for bankruptcy with a bankruptcy lawyer.

When the new rules for filing are in place, the plan will be based on total income, without the payments mentioned above being a consideration. This is going to make it harder to file unless the debtor’s income is below the local poverty level. It may require the client to sell their house and car, and move to a less expensive neighborhood in order to meet the debt payback requirements. Consultation with a Chapter 13 bankruptcy attorney will provide the details about filing before the new rules go into effect, and what to expect if debtors wait.

Any bankruptcy lawyer will say that any of the chapters should be a last resort, because it is there to allow debtors to get out from under and make a fresh start. Although the record of going bankrupt stays on a credit report for ten years, it won’t be that long before filers can get credit again. The more time that passes afterward, the better the chances for obtaining credit. It is expected that after filing, filers will be more careful with managing debt in the future. However, should filers find difficulty again, they are allowed to file for protection again in six years.

Chapter 13 Bankruptcy: Keep Your Property & Repay Debts Over Time Chapter 13 Bankruptcy: Keep Your Property & Repay Debts Over Time

There are some important facts a good bankruptcy lawyer will point out concerning the process: Clients get legal protection from creditors; most of debt can be eliminated; financial ruin can be stopped, enabling a fresh start. The counselor will also say that debtors will still have some debt to pay, will have to go to court, and the disadvantages to not filing. Filers can find a local law firm either on the Internet or in the local telephone book. Asking around if friends and family can recommend one is also a good idea. Most options are reputable, but debtors need to be sure that the counselor is licensed and has a solid reputation. Before taking any action toward bankruptcy, filers should consult with a good Chapter 13 law office to determine if this is the best action for the particular situation.

Bankruptcy

Chapter 11 Bankruptcy Procedures

When a commercial entity is suffering from debilitating debt, but believes there is a way to recover and become profitable again, a Chapter 11 bankruptcy may be an option for consideration. Chapter 11 bankruptcy procedures allow businesses to restructure or reorganize their debt and continue to operate without the heavy burden of past due bills and pressing obligations. But, when filing this legal maneuver, debtors are subject to court supervision.

When businesses consider filing for Chapter 11 bankruptcy, they will need to know that a financial plan has to be submitted to the court overseeing the processes. Not only will the court have to approve the financial plan submitted, but it will also be involved in all major financial decisions throughout the bankruptcy. The court appoints a trustee and forms committees that will be help guide the company in accomplishing the goals and time lines set forth by the different committees. The final financial plan that is constructed by the trustee, the company and its shareholders, and those that make up the committees is also subject to approval by the creditors.

How To File For chapter 11 Bankruptcy Relief From Your Business Debts With Or Without A Lawyer How To File For chapter 11 Bankruptcy Relief From Your Business Debts With Or Without A Lawyer

Because Chapter 11 bankruptcy procedures allow for companies to continue to operate, even selling and trading stocks, during the restructuring period, this filing is used by most publicly held businesses that are experiencing detrimental financial woes. A chapter 11 bankruptcy allows the managers and stock holders to keep some control over the day to day business transactions. With a new financial plan and more freedom to accomplish the business at hand, companies in Chapter 11 have a good chance of regaining strength and turning their financial statements into positive documents.

During the restructuring process, the company in question may find it difficult to obtain credit or to negotiate future business dealings. Because of this limitation, often the court and various committees involved will place orders for new creditors to receive priority in payments. This will encourage other businesses to extend credit based on the security offered by the court and restructuring. The order of payment priorities are generally: new creditors, goods and service suppliers, then stock holders. However, the court makes the final decision on what creditors receive payments and in what order of precedence.

Bankruptcy and Insolvency: Practice and Procedure Forms and Exhibits : 1996 Cumulative Supplement Bankruptcy and Insolvency: Practice and Procedure Forms and Exhibits : 1996 Cumulative Supplement

The time line for Chapter 11 Bankruptcy procedures can vary. The size of the business filing a Chapter 11 Bankruptcy can determine the amount of time involved. Large companies with complex financial dealings could take several years to reorganize. Smaller businesses have restructured and emerged profitable again in just a few months. In some cases, companies are not able to restructure and these companies ultimately liquidate their assets.

Finding a good bankruptcy lawyer will be crucial for the entire process. A lawyer should be informative and available, helping his or her client understand the legal acts taking place. Bankruptcy attorneys can be expensive and they will receive priority in payment during the Chapter 11 Bankruptcy procedures. Businesses struggling should speak with several law firms that specialize in bankruptcy laws before determining which law firm or attorney will work best with their individual financial picture.

Before filing for legal restructuring, businesses might want to consider alternatives for reorganizing. The new Bankruptcy Reform Act initiated by Congress mandates that individuals and businesses obtain credit counseling before filing for any chapter. Now, companies may want to initiate this incentive before obtaining a lawyer. Finding alternatives to a legal filing could be less expensive, less troublesome, and less damaging to reputations and credit reports. Though much of the stigma associated with a filing no longer exists, there are still consequences.

The Bible teaches individuals and businesses alike to seek godly counsel on important issues. Perhaps the Lord knows that when we attempt to control circumstances on our own, we often fail. When a business is struggling under the weight of heavy debt, seeking the counsel of professionals and other experienced business people can be wise. In business dealings, it will be tempting to take advise that may not be honorable, so seek the wisdom of Christian business leaders who put God’s direction as a priority in their counsel. “Where no counsel is, the people fall: but in the multitude of counsellors, there is safety.” (Proverbs 11:14) Also, carefully pray over all decisions about the company’s financial future. “Only by pride cometh contention: but with the well advised is wisdom.” (Proverbs 13:10)

Credit After Bankruptcy: The Easy-To-Follow Guide To A Quick And Lasting Recovery From Personal Bankruptcy bYour fresh start begins here!/b Lose the panic and the guilt. It’s time to use the proven steps in the best-selling bankruptcy recovery book to quickly and permanently recover…in months, not years. Reclaim your good credit, your good name, your purchasing power, and the good life you have temporarily left behind. iCredit After Bankruptcy/i is the leading resource for helping you tackle the No. 1 problem after bankruptcy - how to improve your credit scores so that you can get low-interest credit from mainstream lenders as easily as someone who’s never filed bankruptcy. Whether you’ve already filed Chapter 7 or Chapter 13 Bankruptcy - or are thinking about it - iCredit After Bankruptcy,/i is a proven system for managing your credit scores and qualifying for low-interest credit rates. You’ll also learn how to manage your money and your credit for a much healthier financial future.

A Chapter 11 bankruptcy filing is not always determined by the owner or owners of a business. In some cases the creditors may force a company to file. Filing a Chapter 11 is the best option to consider after all other avenues of reorganization have been exhausted. This filing will allow employees to keep their jobs and holds promise for future growth to the benefit of employees and stockholders. For more information on laws concerning Chapter 11 bankruptcy procedures, browse the Internet where various organizations explain the entire process involved.

Bankruptcy

Changes In Bankruptcy Laws

A record number of people filed for bankruptcy seeking protection from creditors, but with the coming changes in bankruptcy laws, future filings may decrease, or at least that is the hope of congress and the US bankruptcy courts. Record numbers of Americans are drowning in excessive debt. The answer to the stress and burden of obligations for many households has been to protect themselves legally with filing a Chapter 7 or Chapter 13. Yearly, the number of those filing against creditors has risen, and the government has taken notice. Bankruptcies costs the court and losing creditors millions of dollars. The new bankruptcy law in 2005 will attempt to curb some of the abuse.

With a Chapter 13 filing, consumers and families could reconstruct their debt and be bound to court procedures for a limited time. This chapter allows for some debt elimination and an organized method to getting other debt completely paid off. The court and a trustee oversee the entire process and prioritize repayment. Repayment schedules can extend for up to five years. Although Chapter 13 is a true legal filing, it is viewed as more positive than a Chapter 7, because it allows for creditors to regain some of their funds.

Bankruptcy and Insolvency: Practice and Procedure Forms and Exhibits : 1996 Cumulative Supplement Bankruptcy and Insolvency: Practice and Procedure Forms and Exhibits : 1996 Cumulative Supplement

Historically, a Chapter 7 filing has proven to be the most popular with consumers. With this avenue, there is the liquidation of assets to pay off debt. If there are no assets available, then debt is completely discharged and the family is given the opportunity to start completely over financially. The law varies from state to state, but most states protect certain assets from liquidation. These assets can include home equity, cars, and household items. Chapter 7 was constructed to aid persons in tragic or crisis situations, such as with the victims of the recent hurricanes. But, there has been extreme abuse of bankruptcy by consumers and now the biggest changes in bankruptcy laws effect those filing for Chapter 7 protection.

Most individuals that seek bankruptcy will now have to consider a Chapter 13, unless their income is below a certain level. These changes in bankruptcy laws will force consumers to repay debt to creditors. Other changes in bankruptcy laws have been executed as well. Those filing must now offer extensive paperwork and income proof within limited time restrictions. The amount of documentation and hassles are in place to not only properly prove the need, but to discourage consumers from abusing an easy process. The new bankruptcy law in 2005 also mandates that families receive credit counseling before filing and again after filing, to prohibit multiple filings. Personal credit counseling is intended to help consumers manage future finances more effectively.

Credit After Bankruptcy: A Step-By-Step Action Plan to Quick and Lasting Recovery after Personal Bankruptcy Whether you filed bankruptcy several years ago or last week, this book will show you how to make a dramatic and lasting recovery. Stephen Snyder and his wife, Michele, each had their Chapter 7 bankruptcy discharged in 1993. They were both so cash poor at the time that they had to borrow money from their families to file. Then, within six months they mortgaged a home at six percent, leased two new cars, and obtained bank loans, major bank cards, start-up capital for a small business, and more — all using mainstream credit and without the aid of high-interest credit companies. Today they give, save and invest 30 percent of their income and live off 70 percent. They consistently maintain a debt to-income ratio well below 20 percent. And, they are paying back their bankruptcy debt with interest.

There are also special provisions for natural disaster victims. Not all changes in bankruptcy law will apply to those who have financial difficulties due to hurricanes Katrina and Rita. The families that survived the hurricanes, but have been financially devastated, may not have to meet all of the new requirements. Some of the differences may include not seeking credit counseling and added consideration for these families’ increased expenses.

Experts cite that with the new bankruptcy law in 2005, the way consumers view debt should radically change. Now, bankruptcy should not be an easy option for negating a heavy debt situation. The hope from the government is that not only will costs and filings lower, but that consumers will seriously consider how much debt they carry in their financial portfolios. The changes in bankruptcy laws hold promise to do just that.

There has already been a drop in Chapter 7 filings with the new bankruptcy law in 2005, which went into effect in October of 2005. Perhaps the record number of filings documented in 2005 were in part due to consumers rushing to obtain protection before the new and stricter procedures went into play. The mounting debt problem in America is currently being addressed by several entities, credit extenders included. Credit cards are attempting to help bankruptcies decline by restructuring payments and minimum payments due. But, the attack against excessive debt must ultimately come from the consumer.

Credit After Bankruptcy: The Easy-To-Follow Guide To A Quick And Lasting Recovery From Personal Bankruptcy bYour fresh start begins here!/b Lose the panic and the guilt. It’s time to use the proven steps in the best-selling bankruptcy recovery book to quickly and permanently recover…in months, not years. Reclaim your good credit, your good name, your purchasing power, and the good life you have temporarily left behind. iCredit After Bankruptcy/i is the leading resource for helping you tackle the No. 1 problem after bankruptcy - how to improve your credit scores so that you can get low-interest credit from mainstream lenders as easily as someone who’s never filed bankruptcy. Whether you’ve already filed Chapter 7 or Chapter 13 Bankruptcy - or are thinking about it - iCredit After Bankruptcy,/i is a proven system for managing your credit scores and qualifying for low-interest credit rates. You’ll also learn how to manage your money and your credit for a much healthier financial future.

The question of bankruptcy for Christians is a difficult and complex matter. There are devastating circumstances that can lead families to seek legal protection. But, the Bible is clear that Christians are to be examples of Christ and demonstrate His character in all of their dealings. “And whatsoever ye do in word or deed, do all in the name of the Lord Jesus, giving thanks to God and the Father by him.” (Colossians 3:17) Perhaps with the changes in laws, Christians can seriously reflect on how excessive debt and unpaid bills mirror Christ’s image to the unbelieving world. Christians are to be in the world but not of it. Following the path of materialism, comfort, and convenience is following the path laid forth by the world.

Bankruptcy

Buying A House After Bankruptcy

Buying a house after bankruptcy can be a daunting task for many people who have undergone the trauma of losing almost everything. Close to 500,000 personal bankruptcies were filed this year which accounted for a significant rise in overall filings from the previous year. For individuals who must file for either chapter 7 or chapter 13, receiving mortgage refinancing with bankruptcy on their financial records can also be a difficult approval to attain without an adequate financial strategy. Whether purchasing a home or refinancing existing property, there is hope after experiencing the dreaded “B” word for most families.

There are two types of filings that have differing effects on the personal finances of an individual including mortgage refinancing with bankruptcy or any other concern. It is necessary to adequately analyze which is the best choice for anyone’s situation. Many times an individual is forced to file because of unforeseen financial circumstances due to illness, divorce, job loss or other serious events in a family. Necessary filings are not always due to poor money management, although the trend in the American culture lends toward unruly spending through credit card debt and personal loans. This has caused a rise in bankruptcies that account for filings that would not necessarily have occurred with good money management.

Personal Bankruptcy Simplified: File For Bankruptcy With The New 2005 Bankruptcy Act (law Made Simple) The first available do-it-yourself guide to bankruptcy using the new 2005 Bankruptcy Act, includes all of the necessary official forms and instructions. Valid in all 50 states and Washington, DC.

However, there are many households that sustain the effects of bankruptcies while having done all that could be done to avoid it. Sometimes when a family loses almost everything it may seem that their financial future and security is permanently at risk which also makes buying a house after bankruptcy seem impossible. It is not, however, too late nor impossible to maintain, repair and get ahead financially if the proper advice and actions are put into place. The basic purpose of filings is to provide a fresh start for the indebted and to hopefully repay some debts with liquidated assets. There are two types of strategies available to consumers who are considering this option.

Each can be filed in court for generally under $200 barring any attorney’s fees. Of course, it is usually wise to receive attorney advice for these types of transactions which add additional costs. Chapter 7 filings entail the common liquidation of assets and complete financial disclosure with strict adherence to laws and requirements and can restrict anyone from buying a house after bankruptcy for an extended period of time because of poor credit. Chapter 13 filings are used generally for a re-organization of the financial structure of an individual’s assets, financial obligations and budget. It also provides protection for the debtor in cases of complete financial loss of assets. For example, a foreclosure can be stopped, creditors held at bay and interest on back taxes put on hold.

Credit After Bankruptcy: The Easy-To-Follow Guide To A Quick And Lasting Recovery From Personal Bankruptcy Credit After Bankruptcy: The Easy-To-Follow Guide To A Quick And Lasting Recovery From Personal Bankruptcy

An automatic stop is held on creditors from claiming or forcing liquidation of assets, garnishing wages and a multitude of other financially disrupting actions. Many people use chapter 13 to provide extra time in which to make mortgage payments that they may be behind in or to give extended time in which to sell a home and pay off a mortgage. Mortgage refinancing with bankruptcy filed for chapter 13 is a bit easier than with chapter 7 filings. One feature that is very restrictive in receiving chapter 13 bankruptcies is the imposed budgeting requirements for all who file. In order to meet financial requirements for a chapter 13 filing, consumers must agree to mandatory budget management which will be legally overseen.

Even though this can be restrictive, it does provide a more sensible way of getting out of debt and eventually repairing poor credit in order to more quickly buy a house after bankruptcy. In choosing either scenario of bankruptcy options, there are of course repercussions to the financial status of any consumer. Many suffer from poor credit from 7-10 years and pay higher interest rates on many types of payments throughout that time. It is getting to be easier, however, to receiving mortgage refinancing with bankruptcy which is generally one of the main concerns for anyone going through a financial setback.

Most lenders prefer anyone who has experienced bankruptcy to wait approximately 2 years before buying a house after bankruptcy or before refinancing after bankruptcy. This provides creditors with an established financial payment pattern for the previous 2 years. Lenders are most concerned with current earnings and timely payments over the 2 years prior to receiving financing options for a home. It is becoming relatively easy to receive approval for loans after filing for bankruptcy since there are so many Americans who have sustained this difficult financial set back at least one time in their lives.

Corporate Financial Distress and Bankruptcy: Predict and Avoid Bankruptcy, Analyze and Invest in Distressed Debt A comprehensive look at the enormous growth and evolution of distressed debt, corporate bankruptcy, and credit risk defaultbrbrThis Third Edition of the most authoritative finance book on the topic updates and expands its discussion of corporate distress and bankruptcy, as well as the related markets dealing with high-yield and distressed debt, and offers state-of-the-art analysis and research on the costs of bankruptcy, credit default prediction, the post-emergence period performance of bankrupt firms, and more.brbrEdward I. Altman (New York, NY) is the Max L. Heine Professor of Finance at the Stern School of Business, New York University. He received his MBA and PhD in finance from the University of California, Los Angeles. Edith Hotchkiss (Chester Hill, MA) is Associate Professor of Finance at Boston College. She received her PhD from the Stern School of Business and her BA from Dartmouth College.Preface.pAcknowledgments.pAbout the Authors.pbPART ONE:/b bThe Legal, Economic, and Investment Dimensions of Corporate Bankruptcy and Distressed Restructurings./bpChapter 1: Corporate Distress: Introduction and Statistical Background.pChapter 2: Evolution of the Bankruptcy Process in the United States and International Comparisons.pChapter 3: Post–Chapter 11 Performance.pChapter 4: The Costs of Bankruptcy.pChapter 5: Distressed Firm Valuation.pChapter 6: Firm Valuation and Corporate Leveraged Restructuring.pChapter 7: The High Yield Bond Market: Risks and Returns for Investors and Analysts.pChapter 8: Investing in Distressed Securities.pChapter 9: Risk-Return Performance of Defaulted Bonds and Bank Loans.pChapter 10: Corporate Governance in Distressed Firms.pbPART TWO:/b bTechniques for the Classification and Prediction of Corporate Financial Distress and Their Applications./bpChapter 11: Corporate Credit Scoring–Insolvency Risk Models.pChapter 12: An Emerging Market Credit Scoring System for Corporates.

For those who are considering buying a house after bankruptcy or mortgage refinancing with bankruptcy, there is always hope in getting back on the right financial track. “Discretion shall preserver thee, understanding shall keep thee:…That thou mayest walk in the way of good men, and keep the paths of the righteous…For the upright shall dwell in the land…” (Proverbs 2:11,20-21) No matter what kind of circumstances any consumer finds himself, it just takes wisdom, good counsel and execution of a workable financial plan to climb out of any financial hole.

Bankruptcy

Buying A Car After Bankruptcy

Buying a car after bankruptcy can be a very challenging task depending on how long it has been since the individual filed. Most people understand when they file, that some of the repercussions include a poor credit score and trouble with future borrowing. Thus, getting a bankruptcy auto loan can be very difficult. Those who are considering purchasing a vehicle need to think carefully about this decision and weigh any and all options. There are many lenders who offer assistance to individuals in this situation, but some do not work for the benefit of the borrower. People need to become informed about the processes and procedures that must be completed before purchasing a vehicle after becoming bankrupt.

Bankrupt status on the personal record may tell lenders that the individual is not a dependable borrower. Once this is on the financial records, an individuals credit is marred for ten years. Fortunately, there is hope. Many people overcome their bankrupt status and go on to have a strong credit score. They even work on buying a house or buying a car after bankruptcy. The key is to work at improving credit as well as finding a reliable lender for bankruptcy auto loans. Since most bankers and lenders won’t work with previously bankrupt individuals, borrowers have to look for lenders who specifically offer loans for people with bad credit. These lenders can be found locally, through car dealers, and online. The Internet can be a very convenient way to pursue this, but individuals must watch out for scams. Using good judgment is vital, even before applying for any loans online.

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Different lenders for bankruptcy auto loans have different requirements. Naturally, there is an age limit, usually 18. Most also require that the bankrupt status be discharged. Others require that there be no repossessions on an individuals record within the last year. For bankruptcy auto loans, they also usually require a minimum monthly salary based on the consumers credit score. Individuals should not select the lender solely based on whether or not the consumer can meet the requirements. A trusted lender that the person is comfortable with should be chosen. The lender should be well known and legitimate. The Better Business Bureau can be very helpful in determining if there are any existing complaints against a lender.

The consumer should not only choose a good lender for buying a car after bankruptcy, but they must also choose a good loan. The individual must understand that most lenders for buying a car after bankruptcy charge higher interest on their loans than other lenders do. However, watching out for excessively high interest, prepayment penalties and outrageous fees is vital. Individuals need to make sure that the terms of the loan meet personal needs. Only looking at bankruptcy auto loans that have a reasonable interest rate will be helpful in choosing the best option. Someone might be tempted to get a loan with a higher interest rate because the loan is for a larger amount, but this could mean high interest payments. This will only increase the pay-off term. The individual should not be paying for a car long after the vehicle has died. They should look for a loan that will cover a reasonably priced car. Comparing the interest rates of several bankruptcy auto loans and not just a few will offer even more options. Most importantly, reading the loan contract before signing and asking questions will make the agreement much easier to understand.

The Portable Bankruptcy Code & Rules, 2007 Edition: 2007 Edition (portable Bankruptcy Code & Rules) The Portable Bankruptcy Code & Rules, 2007 Edition: 2007 Edition (portable Bankruptcy Code & Rules)

Before buying a car after bankruptcy, evaluating whether or not the purchase can be put off will be important. The consumer should try to get credit back on track before making a rash purchase after becoming bankrupt. Taking the time to look over other options will be helpful. The consumer can also consider borrowing a friend’s car, taking a bus or making repairs on a current vehicle while working on his or her credit record. It will be possible to see a credit score improve simply by paying at or over the minimum balances on time consistently for a number of months. Since the individual has gone through this financial situation, they are likely on a budget. This will be very good to maintain since it will assist in paying your debts off. Although loans can help a credit score, it never helps to obtain a loan with high interest. It only costs more money.

Creditors Rights In Bankruptcy (bankruptcy Practice Series) Creditors Rights In Bankruptcy (bankruptcy Practice Series)

If the individual is still in a bankrupt state, it is best not to pursue a bankruptcy auto loan. After being discharged, it is important to take the time to pray about what may have gone wrong with personal finances. God can give the wisdom and guidance that is needed to determine exactly what got the consumer into this predicament in the first place. Pursue future purchases and loans carefully. This may not be the best time to pursue new loans or credit accounts. “To every thing there is a season, and a time to every purpose under the heaven.” (Ecclesiastes 3:1)

Bankruptcy

Business Bankruptcy Liquidation

Thousands of corporations file for business bankruptcy liquidation each month. Some give up entirely and file for Chapter 7 bankruptcy, in which the business is effectively ended and assets are sold to repay creditors. Others attempt to file for Chapter 11 bankruptcy, where an effort is made to reorganize an ailing organization so that creditors may be repaid and the corporation returned to profitability. Under Chapter 11 filings, committees are appointed to attempt to assist with a business plan which will reverse downward trends and maximize returns to creditors. At times, even this process fails and the business is reduced to calling upon the services of asset liquidation companies. Many topics must be considered when a business is in this situation. Comfort may be taken in the following thoughts from Proverbs 37:23-24 — The steps of a good man are ordered by the Lord: and he delighteth in his way. Though he fall, he shall not be utterly cast down: for the Lord upholdeth him with his hand.

At least in the beginning of such considerations, an owner may be wondering whether or not a person can avoid bankruptcy by his/her own efforts. If the debt is not too significant, perhaps a solution can be worked out. A realistic budget of expenditures must be constructed to understand exactly the circumstances the corporation is facing. Certain questions must be weighed, such as whether expenses can be reduced or income increased by other means. Are there items which may be sold by the owner or with the help of asset liquidation companies? A further consideration may be whether one has the time and energy to try to renegotiate debts with creditors oneself, in the hopes that they would rather steadily receive a smaller payment on their investment than get involved with the time and money issues which bankruptcy procedures would require. Finally, can the debt be repaid in a reasonable amount of time?

The Portable Bankruptcy Code & Rules, 2007 Edition: 2007 Edition (portable Bankruptcy Code & Rules) The Portable Bankruptcy Code & Rules, 2007 Edition: 2007 Edition (portable Bankruptcy Code & Rules)

Bankruptcy procedures are complicated and it is usually advisable to retain a knowledgeable attorney who has specific experience in this area. After all, significant assets may be riding upon the outcome of these choices. It would also be wise not to take out equity loans which could endanger personal assets such as a home. Most states provide that under business bankruptcy liquidation, a certain percentage of one’s home equity is kept from being available to creditors. However, if a person of his own accord takes an equity loan upon himself, there is no such protection.

Conscientious employers may take note that certain retirement benefits are exempt from creditors. Check the Internal Revenue Code for details. Pension rollovers to an IRA up to 1 million dollars are usually protected. At times, such protection may even be increased by bankruptcy courts. One other item to take note of when conducting business affairs under the pressure of impending business bankruptcy liquidation is that an employer should not cease making premium payments to health insurance plans. Aside from continuing to pay premiums for ethical reasons, by specifying that a certain percentage of an employee’s salary will be put aside for these premiums, one could become liable to lawsuits if such an agreement is not honored.

Credit After Bankruptcy: The Easy-To-Follow Guide To A Quick And Lasting Recovery From Personal Bankruptcy Credit After Bankruptcy: The Easy-To-Follow Guide To A Quick And Lasting Recovery From Personal Bankruptcy

Business debt counseling may be an alternative one can pursue. Be sure that the firm is reputable, though, because some services may be far more interested in their own financial future than that of their clients. A recognized service may be able to help with budgeting and renegotiation of debts. Creditors are more likely to stop harassing phone calls and threats of legal action if they have some prospect of repayment. More time can then be devoted to running the business. Needless to say, a counseling organization should be able to clearly explain in written form the exact terms, interest rates and special fees which may apply to the specific situation.

In some cases, turning to asset liquidation companies may provide relief. A reliable company will have expertise in prevailing market conditions, and will be able to give advice for strategies the corporation can use to avoid business bankruptcy liquidation being imposed by a bankruptcy court. They will likely have connections with potential buyers of excess inventory. Also, they may be enlisted to deal with sales tax and other legal issues, thus freeing a company owner to utilize the time to improve a corporation’s financial situation. Certain asset liquidation companies may provide for security issues, such as removing sensitive information from company equipment. Some may also be willing to become involved with the disposal of equipment according to environmental or hazardous waste guidelines, or even arrange for such items to be donated to non-profit or charitable organizations.

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The final question as to whether a proposed plan will probably help a business or not is a decision that can only be made by the corporation’s owner. Individual factors are involved in deciding which course of action should be pursued. If it is decided that filing for bankruptcy is the best choice, the advice of a lawyer is recommended because several options are generally available. Each has its advantages and drawbacks; there is no ‘one size fits all’ solution. One thing to consider is which debts will be discharged by each type of business bankruptcy liquidation. Sometimes a combination of filings may be in order. In this case, care must be exercised to plan around the restrictions involved in filing for a particular type of insolvency. In certain cases, a number of years must elapse before one is able to file again.

Bankruptcy

Business Bankruptcy Attorneys

Depending on who’s filing, business bankruptcy attorneys can be friends or foes. Lawyers play important roles on both sides of Chapter 11 cases; and debtor and creditor are equally entitled to expert legal representation. Each party comes to the table with specific goals and objectives; but it’s up to the lawyers to persuade the judge and plead the client’s case. In a Chapter 11 petition, the debtor attorney’s main goal is to protect debtor assets; while the creditors’ lawyers seek to get as many secured and unsecured claims paid as possible. Chapter 11, or business reorganization, requires the debtor in possession to submit to the court a viable plan to restructure company management for greater profitability. But the plan has to be approved by creditors, who have the right to reject proposed restructuring and engage in adversarial proceedings. Attorneys are there to present, contest and advocate opposing views of debtors and creditors.

The bankruptcy courtroom is much like a boxing ring: the debtor is in one corner and the creditor, or creditor committee, is in the other. The stakes may be high. After all, the debtor’s business is on the line and creditors want to be compensated. Like a seasoned trainer who knows all the tricks of professional boxing, attorneys are on hand to provide expert blow-by-blow instruction on how to win. Good business bankruptcy lawyers plead the debtor’s case, citing heavyweight reasons why the client should be granted the right to continue operating a financially-troubled company. Part of the burden of proving the debtor’s ability to pay creditors under reorganized management also rests firmly on the attorney’s shoulders. Presenting the debtor’s case before trustees, creditor committees, and the judge requires mental dexterity and a determination to win. Business bankruptcy lawyers hired by creditors may be equally formidable in contending for client’s rights to receive payment and restitution for unpaid debts. A creditor’s lawyer doesn’t want to have a claim dismissed or thrown out because of a technicality. Creditor lawyers are prepared to go to the tenth round to ensure a knockout victory and get debts discharged. As debtor and creditor trade blows, the bankruptcy court judge is there to referee the proceedings, ensuring that neither contender throws a punch below the belt.

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Debtors and creditors should choose business bankruptcy attorneys who are knowledgeable about corporate law, specialize in Chapter 11 filings, and have a good track record of successful discharges and satisfied clients. Attorneys help debtors in possession file Chapter 11 reorganization plans with the local court. A Chapter 13 proceeding requires a trustee to perform an accurate accounting of debtor assets, examine and determine the validity of creditor claims, and file reports; however Chapter 11 debtors can act as self-appointed trustees. They are responsible for accurately tabulating assets, reporting secured and unsecured creditors, and filing monthly operating reports of the failing enterprise. Business bankruptcy attorneys can provide invaluable oversight, legal advice, and assistance in expediting debtor findings.

Whether the company is a sole proprietorship with an individual owner; a corporation with multiple invested owners or shareholders; or a partnership with two to three owners; the business bankruptcy lawyer will work to ensure that all debtor assets are protected, with the exception of those that are non-exempt. Under Chapter 11, personal assets of corporate shareholders are not at risk. Shareholders’ risks are limited to the amount of capital invested in the corporation. However, a sole proprietor’s business and personal assets may be in jeopardy, unless a homestead exemption is filed. Bankruptcy law makes provision for debtors to retain personal exempt property and still honor obligations to creditors. In Old Testament Biblical times, individuals would give, or pledge, to creditors a personal garment as collateral for borrowed monies. Mosaic law required that the item be returned by that evening: “If thou at all take thy neighbour’s raiment to pledge, thou shalt deliver it unto him by that the sun goeth down. For that is his covering only, it is his raiment for his skin wherein shall he sleep? And it shall come to pass, when he crieth unto me, that I will hear; for I am gracious.” (Exodus 22:26-27) Experienced business bankruptcy attorneys can provide legal counsel to help protect debtors’ personal resources while ensuring creditor demands are legally met.

Creditors’ lawyers also advise them regarding legal rights and obligations, including cessation of collection efforts upon receipt of the debtor’s notice of bankruptcy. Lawyers represent creditors at 341 hearings, held 30 days after the debtor files the Chapter 11 petition, and can help creditors file objections to the proposed reorganization plan and negotiate with the debtor’s attorney. Should creditors object to the debtor’s plan or treatment of claims, attorneys may conduct adversarial proceedings, lawsuits against debtor within the original Chapter 11 case.

Creditors Rights In Bankruptcy (bankruptcy Practice Series) Creditors Rights In Bankruptcy (bankruptcy Practice Series)

To find experienced business bankruptcy lawyers, debtors can consult a local chapter of the American Bar Association, browse the Internet, or check out the telephone directory. Consumers should select an attorney based on prior business bankruptcy experience. Not all lawyers handle cases for corporations or partnerships. The advantage of having Internet access is that debtors and creditors can shop online for legal assistance before committing to a contractual agreement. Most business bankruptcy lawyers will offer free initial consultations and stipulate work to be performed for an hourly or flat rate fee. Consumers should not be shy about getting referrals from trade associates, family and friends. In spite of high-powered marketing and glitzy ads, satisfied customers are business bankruptcy attorneys’ best advertisements.