This horrible economy, call it a depression, recession or what you will, has many people struggling to make ends meet.  Many American families are facing the prospect of having to declare bankruptcy.  High costs of basic commodities such as food, gasoline and heating oil along with a shaky job market are leaving many families with no other option.  Even those who are able to pay their mortgages may be faced with the reality that their home is worth much less than what they owe, further adding to the problem.  Savings invested in the stock market have in many cases been depleted due to a dismal market.

All these factors have combined to leave many hanging on the precipice of financial ruin.  Though bankruptcy in many cases may seem like the best or the only option, it can have serious lasting effects on a family’s financial future.  Though bankruptcy can often dissolve many debts, it usually requires liquidation of many of the family’s assets and leaves them unable to acquire replacements in the near term.  New bankruptcy laws have also instituted requirements that may not be possible for a family to abide by.  If at all possible, bankruptcy should be avoided.

Bankruptcy’s effect on credit is disastrous.  Upon declaring bankruptcy, a person’s credit score basically drops to zero, just as if you have never had credit.  It will take years for a decent credit history to be rebuilt and in the meantime, loans are pretty much out of the question.  A bankruptcy will remain a matter of public record for 10 years and during that time, any credit one does obtain will come with a much higher interest rate and other limitations such as higher down payments.

Filing for bankruptcy itself can be quite costly.  You will have to pay all required filing fees, miss work to attend required meetings and will almost certainly need a lawyer.  Though some attorneys advertise affordable bankruptcy services, the term relative is subjective and will likely not seem affordable to you.  In short, the money you spend filing bankruptcy could be put towards satisfying creditors and avoiding it in the first place.

Fortunately there are some other options available to you.  Many nonprofit agencies exist to help you negotiate with creditors and reduce debts without formally filing bankruptcy.  They can help you reduce the total amount owed, reduce interest rates, eliminate fees and set up a consolidated monthly payment plan.  These measures are often enough to get people back on track and avoid the lasting effects of bankruptcy.

Keep in mind that some of these agencies do charge a fee for their services.  Often, the same results can be achieved by negotiating directly with your creditors.  The creditors want to ensure you are able to pay as much or more than you do.  They know that if you are forced to file bankruptcy that there’d a good chance they will never see a dime.  This is a great incentive for them to work with you.

If you find yourself slipping into the financial bottomless pit, don’t put off doing something.  The longer you wait the more desperate your situation will be and the harder it will be for you to avoid bankruptcy.

Going bankrupt is something that is hard to imagine happening to you. When bankruptcy does occur though, you have some options that you can try. For these bankruptcy options to work you will need to consider bankruptcy filing. The options will include chapter 11, 13, and 7.

Each of these types of bankruptcy filing allows you a breathing space while you try to sort out your financial mess. The most well used bankruptcy claims are chapters 13 and 7. In these two options you will be able to talk with your lawyer and find the best method for paying off your payments.

In general chapter 7 and chapter 13 bankruptcy claims ensures that you can’t be forced to pay further debts once you have placed a bankruptcy filing. For your creditors to stop contacting you it is essential that you file a bankruptcy claim.

Once the bankruptcy filing has been accomplished your payments will commence. These payments will be made depending on the type of bankruptcy that you have filed for. As both of these bankruptcy filings are very different it is best if you understand what happens when you file bankruptcy claims.

In the chapter 7 bankruptcy filing you agree to liquidate all of your disposable and non-exempt assets. These assets, money, and property are turned over to a court appointed bankruptcy trustee. This individual will start the process of turning your disposable assets into cash. Once the amount of money that you owe has been found, the trustee will distribute them amongst your creditors.

You should make sure that when you are preparing for bankruptcy filing that you have given your lawyer a list of all of your creditors so that the proper payments can be finalized.

This step in bankruptcy filing will wipeout all of your debts, excepting for certain non-dischargeable debts. You will however need to discuss with your lawyer the best ways to go about bankruptcy filing for chapter 7 and in some cases chapter 13.

The chapter 13 bankruptcy filing will allow you to make arrangements with your lawyer to pay off these payments as best as you can. The lawyer will examine your bankruptcy case history before you can begin the bankruptcy filing process. Once the filing has been finalized you have a period of 5 years to pay off your debt.

Bankruptcy filing is the best way to make sure that your bankruptcy claim is following in the proper path. Your lawyer should be able to advise you on the best route of bankruptcy to file for.

Today, American citizens and corporations are going bankrupt at unprecedented rates. Statistics show baby boomers are forced into bankruptcy more than any other group. According to a study conducted by the American Bankruptcy Institute, bankruptcy filings for individuals over age 45 have risen nearly 30-percent over the past decade.

Since 2007, the percentage of Americans going bankrupt has risen nearly 70-percent. Nearly 1.5 million bankruptcies were filed in 2008. Estimates show nearly 4.5 million people will file personal bankruptcy by the end of 2009.

Financial experts blame the mortgage crisis for the explosive increase of personal bankruptcies. Borrowers who entered into subprime and adjustable-rate home loans can no longer afford their mortgage payments.

The rapid decline in property values and instability of mortgage lenders has nearly eradicated the opportunity for borrowers to refinance mortgage notes. When borrowers cannot meet mortgage obligations or obtain refinancing they are forced into going bankrupt in an effort to avoid foreclosure

The failure of mortgage lending institutions and Wall Street escalated consumer panic. Multi-billion dollar corporations and independent business owners were forced to either close their doors or enter into bankruptcy. Skyrocketing unemployment, loss of healthcare insurance and credit card company crackdowns created financial ruin not witnessed since the Great Depression.

Unemployed homeowners and those with subprime home loans with balloon payments were unable to refinance or obtain a second mortgage. Their only option was to file for bankruptcy protection. This opened a new can of worms; partly caused by the new bankruptcy laws enacted in 2005.

The Bankruptcy Abuse and Consumer Protection Act was created as an attempt to curtail consumers from going bankrupt to erase credit card and unsecured loan debts. Prior to BAPCPA many consumers filed bankruptcy under Chapter 7. Referred to as ‘liquidation bankruptcy’, Chapter 7 allowed consumers to liquidate assets to repay outstanding debts. Outstanding balances were written off and consumers obtained a clean financial slate.

Today, BAPCPA requires debtors to undergo credit counseling through an approved U.S. Trustee Program agency. Additionally, debtors are required to repay a portion of debts through the development of a Chapter 13 repayment plan. The amount of debt to be repaid is determined through the means test; a financial tool that compares debtors income to their states’ median income level.

When debtors’ income falls below median income levels they might be allowed to file for Chapter 7. Otherwise, they must file for Chapter 13 protection and adhere to established chapter 13 payments which typically last between three and five years.

During Chapter 13 bankruptcy, debtors’ must contribute a large portion of disposable income toward repayment of debts. They are not allowed to incur any new debts without permission from the court. Chapter 13 payments are paid to the bankruptcy Trustee, who in turn distributes installments to creditors.

If debtors are unable to adhere to the repayment plan, creditors can petition the court and request dismissal of the bankruptcy. If this occurs, debtors fail out of bankruptcy and lose all protection of the court. Creditors can commence with collection action including foreclosure.

Going bankrupt is never a joyful experience. It is stressful and emotionally draining. However, it is important to keep a positive outlook and become educated about money management techniques to prevent financial catastrophes from occurring in the future.

Going bankrupt is never a happy event. It can be stressful and emotionally draining. However, it is important to realize there is life after bankruptcy. It is also important to retain a positive outlook and search for options and solutions to overcome future financial hardships.

There are many methods that you can use to clear yourself of the many debts that you have. These methods can include going to bankruptcy courts, but you will need to know what is recommend for the bankruptcy courts in your state. The Texas bankruptcy laws of 2005 require that you go through with credit counseling before you apply for bankruptcy.

The Texas bankruptcy laws have incorporated this new bankruptcy act in their laws about debtors and creditors. In this law you will have to attend a court approved credit counseling agency sessions for at least 6 months before you can receive a certificate that will let you to apply for a bankruptcy hearing.

Once you are certified from the counseling agency to begin the process of bankruptcy you should contact a bankruptcy lawyer. This person will have to give you a means test. This means test is part of the new Texas bankruptcy laws.

The means test will determine what your financial status is so that you can apply for chapter 7 or 13 of the bankruptcy code. Depending on the means test and if you have less than $6000, after monthly living expenses, rent, food, loans and medical bills, have been deducted from your income for the next 5 years then you can qualify for chapter 7.

Otherwise you must apply for chapter 13 bankruptcy from the Texas bankruptcy laws. For chapter 13 you will need to have your repayment plan with all of the repayment details stated clearly. This should be given to the court so that they can look it over.

This way the court will be able to see if you are sincere in your desire to repay your debts. Once the court is sure that you will be able to repay all or most of your debts that you have owing, you will be able to file for chapter 13 bankruptcy.

Once the bankruptcy process for both chapter 7 and 13 has begun you will need to gather the various paperwork and documents that you need. This paperwork is required by the Texas bankruptcy laws.

The documents that you should include for your bankruptcy declaration will include an itemized list of your current income sources, the major financial transactions that you have carried out for the last 2 years, and your monthly living expenses.

You will need other items to satisfy the Texas bankruptcy laws act. The secured and unsecured debts, along with any property and assets that aren’t exempt for the Texas bankruptcy laws must be handed with the title deeds.

Once this information has been handed over to your bankruptcy lawyer you can file for bankruptcy. The Texas judicial courts will issue an automatic stay order against your creditors. This will allow you to pay these individuals over a court defined period of time.

The Texas bankruptcy laws are designed to help people in severe financial difficulties. This aid will allow you settle your debts and have a fresh start.

Product Description
A comprehensive look at the enormous growth and evolution of distressed debt, corporate bankruptcy, and credit risk default

This 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 po… More >>

Corporate Financial Distress and Bankruptcy: Predict and Avoid Bankruptcy, Analyze and Invest in Distressed Debt , 3rd Edition