Bankruptcy

Bankruptcy Exemptions

Bankruptcy exemptions are used when a person files for one of the chapters. Filing is about getting control of one’s financial budget and debt. Many bankruptcy attorneys will suggest leaving the guilty feeling behind, and instead concentrating on the future; the fresh start of learning how to manage finances in a responsible and organized way. Not only do regular people file for personal bankruptcy, but large international organizations do as well. However, this doesn’t change the fact that people should keep financial promises. When a Christian agrees to pay a debt, as with using a credit card, they are also making that promise to God. The Bible says: “When thou vowest a vow unto God, defer not to pay it; for he hath no pleasure in fools: pay that which thou has vowed” (Ecclesiastes 5:4-5). Both the moral and financial issues of the situation must be considered when a person wants to go bankrupt.

The best part of debt forgiveness is learning and understanding what went wrong with the decisions that were made and to develop a plan of how to fix it. Exemptions are the items that are not included in a discharge. There are two major types: chapter 7 and chapter 13. Filing for chapter 7 requires the debtor to liquidate all unsecured debts minus the bankruptcy exemptions. Chapter 7 bankruptcy applies when the expenses a person has outweigh their income. A debtor will receive a discharge from all their unsecured debts within 7 months from filing. Filing for bankruptcy, chapter 13, forces creditors to negotiate. This type is filed when the debtor’s income outweighs their expenses and when a debtor is default on the non-bankruptcy exemptions such as mortgage, car payment, taxes, and child support. They must also have years of unfiled tax returns, and assets that are worth more than their available exemptions. Chapter 13 bankruptcy allows the debtor to pay off their debts at much lower amounts than actually owed, and it is considered paid in full.

Corporate Bankruptcy: Economic and Legal Perspectives This collection is the first comprehensive selection of readings focusing on corporate bankruptcy. Its main purpose is to explore the nature and efficiency of corporate reorganization using interdisciplinary approaches drawn from law, economics, business, and finance. Substantive areas covered include the role of credit, directors’ implicit bargains, nonbargaining features of bankruptcy, workouts of agreements, alternatives to bankruptcy, and proceedings in countries other than the United States, including the United Kingdom, Europe, and Japan. The editors’ introductions guide readers through each of the six parts, comprised of edited versions of papers combined with editorial notes to reduce the time required to absorb key ideas.

All that is exempt is a portion of the debtor’s personal property that can be kept, while all other assets are liquidated. These exemptions are dependent upon the status of the debtor. When filing for bankruptcy, the statutes change from state to state. For example: in Texas a single person can only exempt a total amount of $30,000 in property. A family n Texas can only exempt a total of $60,000 in property. In addition to the numerical worth, all household furnishings are said to be included in the property bankruptcy exemption. All food and clothing is also an exemption. Jewelry can be exempted as long as the worth does not exceed 25% of the state individual limit. More exemptions include farming and ranching equipment for farmers or those whose livelihood depend on the cultivation and sales of plants, or animals.

All smaller athletic equipment such as bicycles, tennis rackets, roller blades, and ski equipment are exempt. Athletic equipment that is not included are sailboats, jet skis, and powerboats. A two, three, or four wheeled vehicle is exempt for each member of the household that holds a drivers license. Household pets are exempt. Health aids such as wheelchairs, elevators, and air filtration systems are also considered bankruptcy exemptions. Many people filing for debt forgiveness wonder if life insurance policies are exempt, the answer is yes. Life insurance policies are exempt because they were established to support a beneficiary in case of death of the debtor. In addition to life insurance policies, all retirement financial accounts such as IRA’s and 401k’s are considered.

Credit After Bankruptcy: The Easy-To-Follow Guide to a Quick and Lasting Recovery from Personal Bankruptcy You can establish mainstream credit after bankruptcy.in less than eight months. 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 eight 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 card 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.

It is important to take a complete inventory of all assets to determine which type of bankruptcy is the right decision. It is also important to consider an alternate method for debt removal that does not involve filing for bankruptcy. Sometimes the assets are much more that the bankruptcy exemptions limit. In this case it may be wise to evaluate whether or not a different plan of liquidation can allow the debtor to pay their debt without having to obtain the stigma and bad credit of filing for bankruptcy that will stay with them for the next 7 to 10 years. Statistics show that personal bankruptcies are reaching record levels. This is not surprising since consumer debt levels are also reaching record highs.

Those that are younger should think long and hard about whether or not filing for bankruptcy is the best decision. Debt forgiveness causes serious damage to the credit report score, which is required to apply for any other loans or types of credit in the future. If a debtor is planning on buying a home or car within the next 7-10 years, going bankrupt will force them to pay much higher interest rates, which in turn renders the item purchased a lot more expensive than it is worth. Debtors should weigh all options and seek counsel before making any major decisions.

Bankruptcy

Establishing Credit After Bankruptcy

Establishing credit after bankruptcy can be a daunting task but is possible in varying stages and time frames, depending on what type of bankruptcy has been filed. Bankruptcy is a word, that most people would rather never have to entertain in their vocabulary, regarding personal finances. There are times, however, when this legal method of removing debts must be taken in order to have a fresh start unencumbered by financial responsibilities that can never be reasonably met. Chapter 7 and chapter 13 are the two options that individuals have when making the difficult choice to declare that they are going bankrupt. There are different legal requirements between the two and each has its own set of positives and negatives that anyone considering this option must carefully analyze.

Chapter 7 is relatively simple in that, anyone who claims this legal option has most of his or her debts wiped away without having to repay them in the future. There are, of course, times when this option is all there is left to choose and it is the best way to find a fresh start financially. Divorce, unforeseen tragedies, such as illnesses and loss of income, are just a few of the many things that can happen to force someone to go bankrupt after having tried all other avenues of reprieve. “But my God shall supply all your need according to his riches in glory by Christ Jesus.” (Philippians 4:19) This option has been looked at as a way to have a new beginning after being devastated by a mammoth debt load. While it is true that going bankrupt does offer a way to walk off from most debts, it also has its downside when refinancing after bankruptcy or rebuilding personal credit status.

All about Bankruptcy and You This book tells you in Plain, Understandable English how to: (A) Wipe out your debts, (B) Stop collectors and end the hassles, (C) Stop lawsuits including FORECLOSURES (D) Actually save your home, or, (E) Live in your home for up to a year with no payments and have all the debt connected to your home eliminated or discharged with a bankruptcy. (F) Eliminate debts from judgments & garnishments. It also tells you how to put money in your pocket by doing a profitable bankruptcy while saving yourself over 4 times the amount of the debt you discharge with the bankruptcy. Additionally, it tells you how to save up to $4,000.00 legal fees and do it all without an attorney by using a qualified preparer for just a couple hundred dollars or by doing it yourself if you”re so inclined. Finally, it shows you how to more quickly rebuild your credit after the bankruptcy. This book Spills the Beans and tells you the truth about bankruptcy. USE THE LAW TO YOUR ADVANTAGE!

Those who go bankrupt will endure having the legal action reported on all financial reports for ten years. Those who are fortunate enough to still have a job after losing so much will have to learn to live totally on a cash basis and pay as they go. They will have no credit to maneuver with and must depend on any emergency cash they set aside for unexpected bills or needs. Establishing credit after bankruptcy can be difficult because most credit institutions view those who have claimed a chapter 7 as high financial risks. In fact, those who file for chapter 7 are viewed more negatively by creditors than those who file for a chapter 13 since chapter 7 allows debtors to walk away from most debts. After 10 years of no credit, a person may begin to rebuild a financial status. However, for transactions such as refinancing after bankruptcy, most will pay very high interest rates for several years before receiving reasonable interest due to improved, personal credit.

For individuals who file for chapter 13, the legal requirements are quite stringent regarding income, repayment stipulations and personal lifestyle. This legal option requires the person who goes bankrupt to subject themselves to court appointed management of personal finances which includes expenditures on housing, food, transportation, education and other family matters. Court managed repayment schedules are also stipulated to pay back creditors over a period of time which can help in establishing credit after bankruptcy. This option is otherwise known as ‘reorganization’ and refers to redistributing personal finances according to a court mandate. A person may suggest to the court what he or she will need to live on including any educational costs for children and any unusual expenses. With the court approval of this amount, the rest of the income is divided among existing creditors. A pay off period for chapter 13 reorganization lasts from 3 to 5 years. A poor credit rating will remain on most people’s records for up to 7 years with this method.

Corporate Bankruptcy: Economic and Legal Perspectives This collection is the first comprehensive selection of readings focusing on corporate bankruptcy. Its main purpose is to explore the nature and efficiency of corporate reorganization using interdisciplinary approaches drawn from law, economics, business, and finance. Substantive areas covered include the role of credit, directors’ implicit bargains, nonbargaining features of bankruptcy, workouts of agreements, alternatives to bankruptcy, and proceedings in countries other than the United States, including the United Kingdom, Europe, and Japan. The editors’ introductions guide readers through each of the six parts, comprised of edited versions of papers combined with editorial notes to reduce the time required to absorb key ideas.

Most creditors view this form of legal option in a more positive light because of the attempt at repayment that is obvious when bankrupt individuals choose a chapter 13 legal filing. Interestingly, though, while those who file chapter 13 may not hit the bottom in establishing credit after bankruptcy, because of their efforts, a person who files chapter 7 has a better chance at repairing their credit earlier. Since chapter 7 entails an almost complete wiping of financial debt from a debtor’s financial record as well as no court mandated financial controls, a person who goes bankrupt can begin to work on refinancing after bankruptcy and other issues as soon as is feasible. Those who claim chapter 13 must wait until their court mandated supervision is over before attempting to repair any personal credit.

Some of the basic ways to repair credit for both options is to always pay all bills on time, apply for a credit card as soon as possible, and to have a positive attitude to face all the difficulties ahead. If a legal filing was necessary because of some issue such as an ill family member or divorce, it is helpful to notate it in any applications for refinancing after bankruptcy or for any other reason. Creditors can be helpful to those who consistently commit to establishing credit after bankruptcy and do not give up when high interest rates or problematic financial questions occur. It is possible to live through a legal filing and go on to have a stable, financial future for those who are determined and dedicated.

Bankruptcy

Employment After Bankruptcy

Debtors need employment after bankruptcy, but many may be denied job opportunities simply because of past financial failure. A bankrupt individual is like a teenager who is repeatedly turned down for jobs because he lacks experience. But if he keeps on getting turned down, he will never get the experience he needs. Somebody has to take a chance on the youngster and give him his first job. Likewise, employers must be willing to take a chance on hiring someone who has been bankrupt. Many businesses tend to shy away from employing individuals who have filed for consumer debt protection because they often deem them to be financially irresponsible. But when it comes to finding work, no one needs a job more than someone who has had to file bankruptcy, especially when indebtedness is due to joblessness. And while the U.S. Bankruptcy Court forgives debtors who have debts discharged under a Chapter 7 petition, some prospective employers do not. But forgiveness of debt is a Biblical principle beautifully illustrated in the 18th chapter of the Book of Matthew. “Then the lord of that servant was moved with compassion, and loosed him, and forgave him the debt.” (Matthew 18:27). Although consumer debt protection provides a legal solution for individuals who find themselves unable to honor financial obligations, the effects of bankruptcy on employment opportunities may place job seekers in serious jeopardy, unless employers are willing to give them a second chance.

Finding employment after bankruptcy can be quite a challenge! Applicants applying for work in banking, retail merchandising, government, security, and outside sales have always been routinely screened by prospective employers to verify clean credit records, clear criminal background checks, and negative drug tests. However in recent years, extensive screening, including credit checks, has become the norm for increasingly more occupations. An individual may possess all of the qualifications, but if a Chapter 7 or 13 proceeding appears on the credit report, they may be denied the job. The Fair Credit Reporting Act requires consumer reporting agencies to divulge information (good or bad) about job applicants to business owners requesting it. Since Chapter 7 and 13 bankruptcies remain on a consumer’s report for as much as ten years, debtors with blemished financial records face real obstacles when seeking employment after bankruptcy. The best recourse is to inform interviewers regarding any discrepancies that might be found in credit reports or background checks before they discover them. Fortunately, some companies realize that bad things do happen to good people. They may choose to overlook negative financial histories and hire a bankrupt individual based on past work performance, experience, and professional qualifications.

Bankruptcy and Insolvency Accounting, Volume 2 Bankruptcy and Insolvency Accounting, Volume 2

While Section 525 of the U.S. Bankruptcy Code prohibits discrimination against anyone solely on the basis of insolvency, employers have a right to selectively screen individuals before hiring them, and it is difficult to prove discrimination. Their concern is a legitimate one: Individuals working in financial, government, high security, or retail occupations are more at risk for embezzlement, bribery, fraud, or robbery if they have personal money problems. Business owners may feel that the temptation to steal company funds or to become involved in fraud is just too great for individuals undergoing financial hardship.

Employment after bankruptcy is not a “walk in the park. The effects of bankruptcy on employment opportunities even extend to employment with family members. In 2001, the Insolvency Amendment Act prohibited bankrupt individuals from being hired by a relative who manages or controls a business or enterprise. In addition, anyone whose case has not been discharged is also prohibited from owning or managing a business. If self-employment during proceedings and working for an entrepreneurial aunt or uncle are prohibited, the chances of finding gainful employment after bankruptcy become even slimmer.

When a worker files for consumer debt protection, the effects of bankruptcy on employment opportunities also include potential job advancement. Future promotions, merit raises, transfers and job security may all be in jeopardy. While consumers who file Chapter 7 have dischargeable debts wiped clean, those who file Chapter 13 are obligated to repay creditors on a court-ordered plan. Since they have a regular income, Wage Earner payments are usually deducted from the debtor’s paycheck to satisfy outstanding debts, which means extra paperwork and recordkeeping for the accounting department. Business owners don’t always want to make concessions for individuals who bring personal problems like indebtedness on the job.
In addition, the effects of bankruptcy on employment opportunities can include psychological issues. The stigma of financial failure places a heavy burden on debtors in a society where monetary success is paramount and lack of material possessions relegates one to a lesser social status. Indebtedness and insolvency also cause undue emotional stress, which can impede an otherwise productive worker from performing at an acceptable level. Debtors experiencing emotional problems as a result of indebtedness should consult with Human Resources. Larger businesses and corporations usually have an employee assistance program designated to deal with personal issues that affect job performance.

All about Bankruptcy and You This book tells you in Plain, Understandable English how to: (A) Wipe out your debts, (B) Stop collectors and end the hassles, (C) Stop lawsuits including FORECLOSURES (D) Actually save your home, or, (E) Live in your home for up to a year with no payments and have all the debt connected to your home eliminated or discharged with a bankruptcy. (F) Eliminate debts from judgments & garnishments. It also tells you how to put money in your pocket by doing a profitable bankruptcy while saving yourself over 4 times the amount of the debt you discharge with the bankruptcy. Additionally, it tells you how to save up to $4,000.00 legal fees and do it all without an attorney by using a qualified preparer for just a couple hundred dollars or by doing it yourself if you”re so inclined. Finally, it shows you how to more quickly rebuild your credit after the bankruptcy. This book Spills the Beans and tells you the truth about bankruptcy. USE THE LAW TO YOUR ADVANTAGE!

So what can a job seeker do to counteract the effects of bankruptcy on employment opportunities? Consumers who have filed due to financial crisis need not be paranoid about every interview or potential for disclosure. Hundreds of thousands of people have experienced bankruptcy, but gradually bounced back. Approach a prospective employer with confidence, professionalism and a smile. During the interview, the focus should be on the applicant’s skill level, job history and ability to perform. The first consideration on an employer’s mind is, “Can this person do the job?” Applicants should spend time extolling virtues and not vices. Paint a picture of past workplace successes and superior abilities, and exude competence. A positive attitude and a determined demeanor, along with a job-winning resume, go a long way in convincing an interviewer that, in spite of any blemished credit report, they have the right person for the job!

Bankruptcy

Do It Yourself Bankruptcy

When it comes to filing personal bankruptcy, careful thought and diligent preparation must be given to the process of completing a do it yourself bankruptcy. As though the pressure of unmet bills hanging over one’s head is not enough, added fears from the unknown consequences of this decision can loom like an insurmountable obstacle. However, there are several areas to consider which may reduce this uncertainty. With forethought and basic research skills, a person may deal successfully with this difficult situation. A willingness to consider the counsel of others will also result in confident decision-making in the area of personal finances and insolvency.

First, a decision must be made as to whether one should undertake a do it yourself bankruptcy. Obviously, if a person is in the situation where they are weighing this option, there is already the emotional pressure of dealing with unmet obligations. Details surrounding the process of bankruptcy — like knowing which type of bankruptcy best resolves a particular situation, and knowing how to go about filing personal bankruptcy — may involve a complicated process. The emotional aspect of these matters may necessitate advice from a more objective source. Also, it is wise to give thought to the effects of these legal actions upon one’s financial future. For these reasons, although one may be legally able to file for a do it yourself bankruptcy, it is probably not a good idea to do so without at least attempting to get a handle upon this course of action.

All about Bankruptcy and You This book tells you in Plain, Understandable English how to: (A) Wipe out your debts, (B) Stop collectors and end the hassles, (C) Stop lawsuits including FORECLOSURES (D) Actually save your home, or, (E) Live in your home for up to a year with no payments and have all the debt connected to your home eliminated or discharged with a bankruptcy. (F) Eliminate debts from judgments & garnishments. It also tells you how to put money in your pocket by doing a profitable bankruptcy while saving yourself over 4 times the amount of the debt you discharge with the bankruptcy. Additionally, it tells you how to save up to $4,000.00 legal fees and do it all without an attorney by using a qualified preparer for just a couple hundred dollars or by doing it yourself if you”re so inclined. Finally, it shows you how to more quickly rebuild your credit after the bankruptcy. This book Spills the Beans and tells you the truth about bankruptcy. USE THE LAW TO YOUR ADVANTAGE!

There are several layers of research which may be undertaken before filing personal bankruptcy. There is personal investigation, seeking the advice of free credit or legal counseling services and finally, consulting with a legal professional. Even if the decision has already been made to engage the services of a lawyer, a person would be wise to complete this process of investigation, if only to be able to ask the best questions and make the most of the time spent with legal counsel. If one is determined to undertake a do it yourself bankruptcy, a good start could involve investigating the financial situation. Draw up a list of unpaid bills and obligations. Resurrect those bank statements from wherever they are stashed and check on that long-neglected checkbook balance. This may seem like a grueling process, but remains necessary in order to ascertain exactly what is the current state of affairs in personal finances.

Another aspect of personal investigation is the study of matters necessary to the situation. Become informed in these areas by studying them in books, magazines, newspapers and on the Internet. There is a tremendous amount of information available for free in libraries and online. Not all advice is good advice; discernment must be exercised. Yet anyone may become at least conversant on financial matters which impact their lives. For example, there are different types of options available in filing personal bankruptcy. The most common is a filing under Chapter 7, in which a trustee sells the debtor’s assets and distributes the resulting profit to the creditors. Under Chapter 11, 12 and 13 filings, an attempt is made to restore the debtor’s financial situation after insolvency by using future earnings to pay debts rather than liquidate assets. Funds held in an Individual Retirement Account (IRA) may be protected from inclusion in liquidation.

The usefulness of wise counsel is apparent at this point. As Proverbs 11.14 says: “Where no counsel is, the people fall: but in the multitude of counsellors there is safety.” Many states and lending institutions offer financial and legal counsel for free or reduced cost. When counsel is readily available both in the area of personal finance and legal advice, it would seem foolish not to take advantage of such an opportunity. This is especially relevant when a home or business is at stake. At times, other important areas of life may be jeopardized by the threat of bankruptcy, such as one’s health or marriage. Surely maintaining these merits welcoming every advantage which counsel can provide.

Bankruptcy and Insolvency Accounting, Volume 2 Bankruptcy and Insolvency Accounting, Volume 2

With information and counsel close at hand, and do it yourself bankruptcy programs available at a reasonable cost, is it necessary to consult an attorney at all? Why do most of the paperwork oneself and then pay hundreds of dollars for a lawyer to basically tack on a signature, when some software could solve the problem far less expensively? This can be a difficult decision. Some people may be capable of getting a favorable result from utilizing bankruptcy kits or software. Of course, it would be important to obtain a reliable program which would not open a computer system up to unwelcome intrusion or malicious programs. Yet this, too, can be fairly easily accomplished. Software may be bought which allows the customer to utilize a bankruptcy program without having to download it onto their own personal computer.

It is sensible to do all the research one possibly can, and reasonable to try to reduce costs by doing most of the work involved in filing personal bankruptcy oneself. There are few joys that can be compared with being able to sleep at night, undisturbed by fears of losing one’s property and possessions. Working out a way to save a home or business can be very satisfying. Yet precisely because the object of one’s efforts is so important, legal advice should be sought to reaffirm a position. In this way, decisions can be made with confidence, and assets may be preserved for future use.

Bankruptcy

Declaring Bankruptcy

Declaring bankruptcy is the last resort for anyone experiencing financial setbacks for any reason. Sometimes there is just no alternative at some point other than claiming financial ruin. Other times, there can be poor money management and financial planning that leads to learning about bankruptcy the hard way. Tragedies such as divorce, job loss, or other unexpected circumstances can cause unwanted financial decisions. For consumers in a difficult financial situation, learning everything they can will be helpful in determining whether or not to choose that option.

Taking drastic action does not solve financial debt and wipe the slate clean as some consumers might mistakenly assume. There are many repercussions that affect anyone who necessarily files. Not to mention the emotional toll that declaring bankruptcy can take on a household, there are several other issues to consider before making that last resort financial decision. Debts that include back taxes or student loans do not resolve through filing. Also, child support obligations remain no matter what action is taken.

If a consumer, unfortunately, has also been involved in some sort of fraud that is related to a debt or debts, this action will not alleviate the pay back of that financial obligation. It is important to understand many issues that affect debt status if forced to claim financial ruin for whatever reason. Make sure to note that declaring bankruptcy does not alleviate debt strain in several areas and the other surrounding difficulties do not abate even after filing. There are several other issues that need to be considered.

Credit After Bankruptcy: The Easy-To-Follow Guide to a Quick and Lasting Recovery from Personal Bankruptcy You can establish mainstream credit after bankruptcy.in less than eight months. 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 eight 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 card 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.

A practical financial issue to consider when considering the choices is the fact that declaring can cost even more money on top of what is already owed. There are many fees such as lawyer’s fees and other expenses that are incurred during the process. Even if some relief from creditors and other surrounding pressures about bankruptcy, the after effects can follow you for years. When filing, it will remain on credit record for 7 to 10 years. This creates a snowball effect on finances for the future and can cost money in other areas that may be overlooked when thinking about bankruptcy.

It is difficult to receive housing loans or other types of loans after filing. This is a hard circumstance to be in, especially if this was a result of circumstances beyond personal control. The interest rates will be exorbitant and the loan terms will be much more stringent. Another issue to consider is the fact that sometimes even employment options can be affected. Some employers will not hire anyone that has declared bankruptcy and require that credit histories are acceptable before hiring.

Even for those who do no have good credit, but have not thought about bankruptcy as an option can have a difficult time getting approval for apartment rentals if the housing management requires stringent checks on consumer credit. It is very important to consider all the repercussions before choosing that option regarding personal finances. Even though it may seem that declaring bankruptcy is almost the end of the world for some consumers who are in a financial sink hole, there are still ways to begin to repair credit and work out of the financial entanglement.

All about Bankruptcy and You This book tells you in Plain, Understandable English how to: (A) Wipe out your debts, (B) Stop collectors and end the hassles, (C) Stop lawsuits including FORECLOSURES (D) Actually save your home, or, (E) Live in your home for up to a year with no payments and have all the debt connected to your home eliminated or discharged with a bankruptcy. (F) Eliminate debts from judgments & garnishments. It also tells you how to put money in your pocket by doing a profitable bankruptcy while saving yourself over 4 times the amount of the debt you discharge with the bankruptcy. Additionally, it tells you how to save up to $4,000.00 legal fees and do it all without an attorney by using a qualified preparer for just a couple hundred dollars or by doing it yourself if you”re so inclined. Finally, it shows you how to more quickly rebuild your credit after the bankruptcy. This book Spills the Beans and tells you the truth about bankruptcy. USE THE LAW TO YOUR ADVANTAGE!

For those who are thinking about this path out of necessity, there is hope for repair through financial strategies such as securing co-signers for loans, retaining a zero balance credit card, and proving an acceptable income ratio to any debt still carried. Also, if you want a more aggressive way in which to deal with debt repair, there are many law firms and debt repair services that are knowledgeable about repair issues. Check out several options for the most credible debt repair source that understands about these issues. “Ponder the path of thy feet, and let all thy ways be established.” (Proverbs 4:26)

Although there are many cases in which wise consumers are put in circumstances that are not their making, many times bankruptcy can be avoided if a consumer is disciplined in money matters. There are many sources such as consumer counseling agencies, Christian ministries and debt counseling companies that offer financial management and budgeting education for consumers. Learning about debt management, household budgeting, saving, retirement planning and many other issues is important in order to provide a sound financial future.

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Bankruptcy

Business Debt Restructuring

Instead of bankruptcy, business debt restructuring could be a better choice for companies struggling to stay afloat in a sea of economic uncertainty. American businesses are taking a beating due to high interest rates, slower GDP (gross domestic product) growth, and lower profit margins. As economic indicators point to a recession, some industries are certain to face demise. But a distressed enterprise doesn’t have to file Chapter 11; corporate debt restructuring offers a lifeline to companies in crisis. Building a successful business takes years of sacrifice and sweat equity; and most owners would be hard pressed to submit to the humiliation of going broke after investing so much time, energy and money. Not to mention, the lengthy proceedings and creditors who can legally take ownership of a failing enterprise.

Chapter 11 commercial debt protection is a last ditch effort to keep the company running; but it’s an expensive one. Attorney’s fees can total $50,000 to $100,000; and court filing fees alone are over $1,000. Add the emotional stress and the time it takes to handle day-to-day operations while meeting with trustees and attorneys; and one can see why indebted entrepreneurs would want an alternative route to the harrowing process of commercial debt protection. Corporate debt restructuring is the debtor/business owner’s way of escaping bankruptcy. According to the Holy Bible, there is always an alternative method of avoiding situations that threaten to destroy us: There hath no temptation taken you but such as is common to man; but God is faithful, who will not suffer you to be tempted above that ye are able; but will with the temptation also make a way to escape, that ye may be able to bear it (I Cor. 10:13).

Debt restructuring agencies can help facilitate corporate turnarounds, negotiate settlements, and put companies back on a more solid footing. Sole proprietors, partnerships, limited liability corporations, and larger conglomerates can all benefit from the professional expertise provided by corporate financial manangement agencies. Such companies act as financial consultants for business owners and essentially, come in and do a thorough assessment of the company’s fiscal strengths and weaknesses. Services include reviewing outstanding accounts, vendor and creditor obligations, employee payroll, facility leases, advertising and marketing costs, vehicle and travel expenses, inventory, account receivables and account payables. The goal of the debt restructuring professional is to negotiate with creditors, vendors, suppliers, and state and federal governments to arrange an amicable settlement, reduction, or modification of contracts and terms of payment. In exchange for the creditor’s agreement to reduce or settle delinquent accounts, debtor/owners grant creditors equity, or part ownership, in the struggling enterprise. Creditor equity or ownership is limited to the monetary value of past due settled accounts.

All about Bankruptcy and You This book tells you in Plain, Understandable English how to: (A) Wipe out your debts, (B) Stop collectors and end the hassles, (C) Stop lawsuits including FORECLOSURES (D) Actually save your home, or, (E) Live in your home for up to a year with no payments and have all the debt connected to your home eliminated or discharged with a bankruptcy. (F) Eliminate debts from judgments & garnishments. It also tells you how to put money in your pocket by doing a profitable bankruptcy while saving yourself over 4 times the amount of the debt you discharge with the bankruptcy. Additionally, it tells you how to save up to $4,000.00 legal fees and do it all without an attorney by using a qualified preparer for just a couple hundred dollars or by doing it yourself if you”re so inclined. Finally, it shows you how to more quickly rebuild your credit after the bankruptcy. This book Spills the Beans and tells you the truth about bankruptcy. USE THE LAW TO YOUR ADVANTAGE!

Unlike a Chapter 11 court-approved restructuring plan, in which creditors can actually take over day-to-day management of the company, business debt restructuring allows the owner to continue managing the enterprise. Entrepreneurs who have built successful businesses only to find themselves facing failure can breathe easier knowing that professional help exists. Corporate debt restructuring advisors may formulate better management policies to pull the company out of the red, or arrange financing to cover outstanding account payables. They assess the firm from stem to stern to ensure that every facet of the distressed enterprise is overhauled to minimize loss and maximize profits. Inventory, product and service lines, employee compensation, liability and labor insurance policies, and overhead expenses are all scrutinized to find ways to cut costs. Corporate financial consultants also negotiate with commercial landlords to reduce rent or lease payments; extend installment credit terms; re-negotiate existing contracts for better profitability; and find funding sources or investors to take over outstanding promissory notes or lend much needed capital. Corporate debt restructuring agencies will also collect outstanding monies and delinquent debts owed to debtor/owners.

In order to prepare for fiscal management modification, debtor/owners should gather up-to-date files, including accurate customer account records, payroll records, federal and state income tax returns from at least three years prior. A listing of past due creditor accounts, banking and financial statements, vehicle expense reports, and inventories would also be helpful. A financial balance sheet is like a fiscal blueprint of a commercial enterprise. Listing assets and liabilities, profit and losses, and income and expenses will give the business debt restructuring company a true sense of the debtor/owner’s fiscal situation. Financial management agencies can easily assess where companies are losing money or need to cut costs by reviewing a profit and loss statement. Creditors’ names and addresses, account payment histories, and telephone numbers are also necessary for the agency to negotiate delinquent account settlement or reduction. Commercial debt settlement agencies must also be given a legal right, or power of attorney, to represent debtor/owners in negotiating and corresponding with creditors. Once agencies have contracted with debtor/owners and begin the restructuring process, creditors are prohibited from contacting debtor/owners directly. All communication is handled through the agency. Owners are free to manage companies and leave the business of resurrecting what was once a near-lifeless enterprise in the capable hands of the corporate debt restructuring firm.

Credit After Bankruptcy: The Easy-To-Follow Guide to a Quick and Lasting Recovery from Personal Bankruptcy You can establish mainstream credit after bankruptcy.in less than eight months. 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 eight 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 card 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.

To find a reputable agency, debtor/owners may browse the Internet, ask associates who may have gone through the process, or consult the local business directory. Much is at stake, so debtor/owners will want to do a thorough background check on agencies to verify qualifications. Owners should never be so stressed that they forget to do some homework and check agency references. The last thing a near-bankrupt enterprise needs is to entrust the company to a disreputable or dishonest firm. Owners should obtain a signed contractual agreement with the business debt restructuring company stipulating an hourly, flat rate, retainer, or commission fee; the type of services offered; and the term or length of time the agency expects to perform on behalf of the owner. It won’t hurt to check with the local Better Business Bureau to see if other clients have made complimentary or detrimental remarks about the agency. If there are questionable concerns, do not hesitate to seek legal counsel. If everything checks out, dealing with a reputable business debt restructuring firm can resuscitate a failing enterprise, help debtor/owners avoid bankruptcy, and keep the customers coming.

Bankruptcy

Debt Repayment

Credit Card Debt Repayment

Annually, credit card debt discharge totals almost $20 billion from Chapter 7 liquidations alone. But blatant charge card abuse amongst our nation’s population — from college students, to working adults, and silver-haired retirees — is wreaking havoc on card issuers, lending institutions, mortgagors, and retailers. Distressed debtors increasingly rely on credit cards, unsecured “plastic” cash, to bail them out of long-term secured obligations, such as home mortgages and auto loans. Living on borrowed money has become the norm and charge account abuse has become an American epidemic. Even at the risk of paying higher interest rates and fees, more consumers are depending on open-ended lines of credit to meet everyday living expenses. Groceries, fast food, dry cleaning and gas are all regularly charged, but no one seems to notice the extra fees, high interest, and penalties that can quickly accumulate. When borrowers constantly withdraw large cash advances to pay for big ticket items like house and car payments and casually use credit for everyday living expenses, the end result can only be financial ruin and eventual bankruptcy.

Chapter 7 bankruptcies force debtors to surrender personal property and disposable income to court-appointed trustees to settle outstanding creditor claims. Secured claims get first priority, while unsecured claims, such as credit card debt, usually get discharged. Over the last decade, borrowers have gotten wise to bankruptcy laws, fully understanding that credit card debt discharge goes hand-in-hand with Chapters 7 and 13 consumer debt protection. Some unscrupulous borrowers literally rob creditors blind by racking up thousands of dollars of valuable goods and services, only to file bankruptcy and benefit by unsecured credit card debt discharge. Since creditors hold no collateral, they have very little legal leverage when it comes to collecting. The courts sympathize with debtors who are unable to repay delinquent accounts due to legitimate circumstances; but the Bible speaks against those who buy on credit with no intention of repaying: “The wicked borroweth, and payeth not again: but the righteous sheweth mercy, and giveth.” (Psalms 37:21).

Credit After Bankruptcy: The Easy-To-Follow Guide to a Quick and Lasting Recovery from Personal Bankruptcy You can establish mainstream credit after bankruptcy.in less than eight months. 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 eight 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 card 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.

Unlike secured debts — mortgages, auto loans, student loans, alimony, child support and some taxes — mounds of unsecured claims can be wiped clean with one discriminate wave of the bankruptcy judge’s gavel; and creditors can do little to protest. Filing an adversary proceeding or alleging fraud against the borrower/debtor may be an option, but in a Chapter 13 proceeding, it may be to no avail. Credit card debt discharge in a Chapter 13 bankruptcy usually survives, even when fraud is suspected. Fraudulent charge accounts and filings have forced creditors and issuers to push for stricter bankruptcy reforms to prohibit debtors from abusing a system originally intended to help individuals who have a legitimate need for consumer debt protection.

When it comes to credit card debt repayment, creditors with unsecured claims, like delinquent charge balances, have a greater chance of settlement in a Chapter 13 proceeding. Petitioners’ repayment plans are structured to satisfy creditors from regularly earned income. Wage earners promise to repay all non-exempt claims in monthly installments over a period of three to five years, monitored and enforced by court-appointed trustees. The advantage to the creditor is that most, if not all, outstanding balances will eventually be paid. However, any amounts left unpaid at the end of the maximum five-year term are automatically discharged. Repayment through Chapter 13 also helps borrower/debtors reestablish responsible borrowing power more quickly. A repayment plan presents a clear record of consistent and faithful payments, including credit card debt discharge, which demonstrates to potential lenders a commitment to honor future financial obligations. But credit card debt repayment doesn’t have to depend on bankruptcy. Excessive spending is like a malignant tumor; sometimes it just has to be cut out! Wise consumers can take control over out-of-control spending by simply paying off one card at a time and cutting them up as soon as balances hit zero! Borrowers should avoid the temptation to apply for new accounts, even if issuers continue to make relentless appeals. Cash-strapped consumers may not be able to eliminate all delinquent accounts at once, but consistent payments on principals and interest will soon add up.

All about Bankruptcy and You This book tells you in Plain, Understandable English how to: (A) Wipe out your debts, (B) Stop collectors and end the hassles, (C) Stop lawsuits including FORECLOSURES (D) Actually save your home, or, (E) Live in your home for up to a year with no payments and have all the debt connected to your home eliminated or discharged with a bankruptcy. (F) Eliminate debts from judgments & garnishments. It also tells you how to put money in your pocket by doing a profitable bankruptcy while saving yourself over 4 times the amount of the debt you discharge with the bankruptcy. Additionally, it tells you how to save up to $4,000.00 legal fees and do it all without an attorney by using a qualified preparer for just a couple hundred dollars or by doing it yourself if you”re so inclined. Finally, it shows you how to more quickly rebuild your credit after the bankruptcy. This book Spills the Beans and tells you the truth about bankruptcy. USE THE LAW TO YOUR ADVANTAGE!

For larger credit card debt repayment amounts, borrowers may consider taking a home equity loan. Equity is the cash value of property in excess of interest against it. Borrower/debtors who have owned a home for a considerable length of time have built up cash value, which may be borrowed through the mortgage company. Home equity loans, known as second mortgages, allow borrowers to refinance property for more than what is owed and usually at a lower interest rate than was originally financed. The mortgage company pays off the first mortgage and draws up a second one at the lower interest rate. The homeowner pockets the difference and can use the equity for credit card debt repayment. The drawback to using home equity loans is that the money regrettably, has to be repaid. Borrower/debtors may use home equity loans to instantly clear up short-term unsecured obligations, only to incur the long-term liability of an additional 15- to 30-year mortgage, plus interest. Most consumers would think it ludicrous to pay for a $65 trench coat over a period of 30 years at an annual percentage rate (APR) of 24 percent or higher! But that’s exactly what borrower/debtors wind up doing when they use long-term debt to pay for short-term charge card purchases. Eliminating revolving debt through disciplined and consistent payments over several years just makes a lot more sense. Distressed homeowners may fare far better by borrowing money from family or friends for credit card debt repayment and saving the home equity for financing college tuition or retirement.

Bankruptcy

Bankruptcy Courses

Bankruptcy courses are available for individuals interested in the legal profession. Understanding a credit report and legal issues that impact credit are covered in bankruptcy seminars. Educating on Fair Credit Reporting and Collection Acts are included as well as the Equal Credit Opportunity Act. Legal issues regarding consumer rights and how that relates to debt is included in these classes. Attending these programs to learn about all the different issues concerning credit and problems that lead to the alternatives of bankruptcy will prove to be very educating. “For the LORD giveth wisdom: out of his mouth cometh knowledge and understanding.” (Proverbs 2:6)

There are a number of important topics covered in bankruptcy courses concerning the relationship between creditor and debtor, such as collection procedures and negotiation of collections. Attorneys and credit negotiation companies will negotiate with creditors in debt reconciliation for debtors. Included in this education are ways to handle negotiations with debtors and consumers and how to be successful at doing it. Professionals in legal services have to be knowledgeable about debtor rights as well as consumer rights concerning debt collections. Negotiations between two parties must be satisfactory for both in order to be successful. Classes include key principles in negotiating. Credit Management studies and understanding personal negotiation style is part of the information learned at bankruptcy seminars. Consumers are looking for informed professionals who can help with credit problems and issues and will often look to legal services for credit repair and monitoring.

Credit After Bankruptcy: The Easy-To-Follow Guide to a Quick and Lasting Recovery from Personal Bankruptcy You can establish mainstream credit after bankruptcy.in less than eight months. 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 eight 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 card 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.

Understanding current bankruptcy laws and what they mean to consumers is covered in bankruptcy courses. The difference between filing Chapter 7 or Chapter 13 is explained in bankruptcy seminars. Chapter 7 is referred to as liquidation because assets are liquidated and proceeds are given to creditors. Chapter 13 helps the debtor to pay debts with the protection of the government. High credit card debt, medical bills, and other unsecured debt may be filed under Chapter 7. Chapter 13 allows the debtor to pay off debts with lower or no interest. Usually a reduction of debt is possible and the debtor is allowed so many years to pay back creditors under Chapter 13. Bankruptcy education usually covers all options and particulars. Anticipated questions by debtors are included in bankruptcy seminars. Possible evaluations might be made by the student in using a credit report to determine what kind of bankruptcy would be feasible according to credit history. Learning scenarios might include evaluating whether a debtor needs to file or if debt consolidation or negotiation would be the best choice.

In learning about filing one of the chapters, it is important to remember that every person’s circumstances are unique and should be handled that way. A thorough investigation would need to be done with the consumer for a complete understanding of their financial situation. After research and evaluation a determination or advice would be offered. A professional will make sure they understand all the facts before offering a conclusion. With bankruptcy courses one will learn that there is usually never a definitive answer. The facts are presented and discussed, then laid out in an analysis to the client with several choices. A legal professional will need to be able to answer any probable questions that might be asked by the debtor. The importance of understanding the process and all that it entails is why attending class is a good idea. Laws have changed so a refresher course is always a good idea. Learning customer service issues and how to handle a client who is distraught over their credit situation is also helpful. Each individual is unique and should be evaluated by listening to their perspective. Sometimes just having someone to listen and offer an unbiased opinion is very helpful in determining what the next step is. Some clients are anxious to stop harassment from impatient creditors. Under the law, harassment from creditors, debt collection agencies, and all collection activities towards the debtor must cease. Creditors have an opportunity to attend the court proceedings and participate in the session. However, there are fines given to creditors who continue to harass after debtors have filed.

All about Bankruptcy and You This book tells you in Plain, Understandable English how to: (A) Wipe out your debts, (B) Stop collectors and end the hassles, (C) Stop lawsuits including FORECLOSURES (D) Actually save your home, or, (E) Live in your home for up to a year with no payments and have all the debt connected to your home eliminated or discharged with a bankruptcy. (F) Eliminate debts from judgments & garnishments. It also tells you how to put money in your pocket by doing a profitable bankruptcy while saving yourself over 4 times the amount of the debt you discharge with the bankruptcy. Additionally, it tells you how to save up to $4,000.00 legal fees and do it all without an attorney by using a qualified preparer for just a couple hundred dollars or by doing it yourself if you”re so inclined. Finally, it shows you how to more quickly rebuild your credit after the bankruptcy. This book Spills the Beans and tells you the truth about bankruptcy. USE THE LAW TO YOUR ADVANTAGE!

Bankruptcy courses cover many different aspects of credit issues. A credit report is analyzed in class. Personal information, public records, credit history, and financial records are evaluated. Each person may obtain a free annual copy of their credit report by requesting it from the three major credit bureaus. Dissecting the credit report, students take each section and evaluate credit worthiness. Learning about credit report scoring is also evaluated in bankruptcy seminars. Some cover aspects of reestablishing credit. This information will be invaluable to the debtor who is anxious to reestablish credit worthiness after filing bankruptcy. It is possible to reestablish credit by applying for a secured credit card. As creditors start reporting to the bureau on newly established accounts credit scores usually start rising, as long as the payments are paid on time and credit limits aren’t maxed out.

Bankruptcy

Corporate Bankruptcy Attorney

When a company needs a corporate bankruptcy attorney, the owners should become familiar with the types of firms that represent companies through financial difficulties to determine which firm would best represent the needs of the company. Because bankruptcies are some of the most complex areas of law in the United States, companies need to bring in experts who can help the firm find its way through those laws. In fact, when filing, the lawyer will need to deal with contract law, tax law, corporate law, and real estate law. If the failing company owns real estate or has other assets, the importance of hiring business bankruptcy attorneys is even greater to preserve these assets. Once the firm files for protection under these laws, the court will administer immediate legal protection from creditors; however, the paperwork for the filing must be done correctly or the court may refuse to hear the petition, leaving the company open to further action from the creditors.

Credit After Bankruptcy: The Easy-To-Follow Guide to a Quick and Lasting Recovery from Personal Bankruptcy You can establish mainstream credit after bankruptcy.in less than eight months. 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 eight 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 card 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.

During most bankruptcies, the company will devise a plan to handle its debt and yet still continue doing business to be able to make profits and thereby be able to adhere to the payment plan agreed to in the court’s proclamations. This means that the company must have a plan that recognizes its obligation to repay the debt owed and at the same time give enough breathing room to conduct business. The most common type of petition to file is called a Chapter 11. The other types of bankruptcies are for people other than businesses. For example, Chapters 7 and 13 refer to individuals and chapter 12 refers to farmers. A decline in sales can lead a business to amassing debt it cannot repay, so a corporate bankruptcy attorney will not only examine and advise the business on how to approach the court, but also will urge the business leaders to change business practices so that the downward trend will take an upward turn. That means that the company may also need to hire experts like corporate accountants to show it where the business practices need to change to optimum sales advantage. Sometimes, the downturn is due to a sudden loss of revenue that makes it difficult to pay suppliers and other creditors. This could come from contracts with other firms that are not longer renewed, some wrongdoing on the part of an employee that results in a lawsuit or government fines, or even a drop in stock prices. At this time, creditors may force the company into filing, especially if the creditors find that the owners are selling off assets to pay debts. Business bankruptcy attorneys can help owners file in emergency situations where these creditors are harassing them.

A corporate bankruptcy attorney can advise the organization it represents on how the laws are written in the state in which the organization is located. This is an essential part of the representation; therefore, business bankruptcy attorneys should practice in the state in which the petition will be filed. An important distinction in developing a plan with the courts is to understand the difference between secured and unsecured debt. Secured debt is that which is connected to assets such a property. Unsecured debt is debt such as credit cards which are not backed up by assets. Unsecured debts can be discharged, or eliminated by the courts. That is not possible with secured debt. A debtor has two options: either he can make the payments and make up the back payments or let the asset by repossessed. Creditors can have legal rights to the secured debt, making claims on the organization’s assets. But complications can arise if the assets have claims on them such as loans or liens against property. Creditors may take out liens against intangible assets such as patents, trademarks, or intellectual property. Even if property has a lien, a creditor can still repossess it under certain terms. The court will also pay secured debt first in a settlement.

All about Bankruptcy and You This book tells you in Plain, Understandable English how to: (A) Wipe out your debts, (B) Stop collectors and end the hassles, (C) Stop lawsuits including FORECLOSURES (D) Actually save your home, or, (E) Live in your home for up to a year with no payments and have all the debt connected to your home eliminated or discharged with a bankruptcy. (F) Eliminate debts from judgments & garnishments. It also tells you how to put money in your pocket by doing a profitable bankruptcy while saving yourself over 4 times the amount of the debt you discharge with the bankruptcy. Additionally, it tells you how to save up to $4,000.00 legal fees and do it all without an attorney by using a qualified preparer for just a couple hundred dollars or by doing it yourself if you”re so inclined. Finally, it shows you how to more quickly rebuild your credit after the bankruptcy. This book Spills the Beans and tells you the truth about bankruptcy. USE THE LAW TO YOUR ADVANTAGE!

The corporate bankruptcy attorney will arrange for a debt adjustment, or a plan to repay the debts that the organization can handle with the current financial situation. Some of the debt may be discharged, leaving the company with less of a credit burden than before. A discharged debt is one that can be erased through the action of the court. A non-discharagable debt must be repaid, even though the terms may change. During a Chapter 11 petition, the business can continue to function normally, while maintaining control of its assets as bankruptcy attorneys help the owners reorganize the debts. In 2005, the repayment time allotted changed. Before 2005, businesses had an almost unlimited amount of time to reorganize. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 changed that by imposing a 120-day limit for a firm to come up with a viable plan that the court can accept. If the debtor has not submitted a good plan in that amount of time, the creditors can file their own plans, forcing the firm to repay according to their plans. That, of course, may put the firm in even further distress. This new law also requires that the filer must have lived in the state of filing for two years. Each state also requires different time limits for reorganization plans, qualifications for exempt assets, and limits on income subject to liquidation. In the past, many companies shopped around for a state with the best regulations concerning court’s decisions, but because of the new two-year rule, businesses can no longer do this.

Hiring a corporate bankruptcy attorney is a serious decision which should be taken after careful advisement. The Bible tells us to seek good counsel, “Every purpose is established by counsel: and with good advice make war” (Proverbs 20:18). Check out the business bankruptcy attorneys in your area and choose one who is honest and diligent in representing the claims of his client.