Facts about Personal Bankruptcy

Personal bankruptcy comes into focus when you as an individual admit to being unable to pay up your debts thereby asking a bankruptcy court to relieve you of your obligations or offer you better terms for repayments. Most people prefer declaring their inability to pay up debts so as to get a chance to start all over again even though it means that they have to give up most of their assets to settle the outstanding debts.

Personal bankruptcy can also be termed as a legal procedure allowing individuals to pay their debts and start afresh financially, saving them lots of embarrassing moments. You can either declare yourself bankrupt, also referred to as debtor’s petition or a creditor can put up a petition against you declaring you to be bankrupt. It is important to note that there is a specific amount of money that when you owe someone, he or she has the right to declare you bankrupt. This is also known as creditor’s petition and the amount varies from one place to another.

Soon after the court declares you bankrupt, all your creditors will be hindered from colleting any debts from you awaiting the decision of the court. In most cases the assets you own will be taken over and sold to help settle the debts that you owe your creditors. If the asset value tends to be below what you owe people, you will be issued with a repayment plan you have to abide by in paying the remaining debts.

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BANKRUPTCY – A SIGN OF THE TIMES

With today’s economy, people face many economic challenges such as job loss, resulting in foreclosure, repossession, and lawsuits. Many experts equate these tough economic times to the Great Depression of the 1930’s preceding World War II. As a result of these tough economic times, bankruptcy has truly become a sign of the times. More and more people have no alternative but to file bankruptcy. The good news is bankruptcy is a fresh start, it alleviates a lot of the financial stress that people are under, and it is easy to re-establish your credit afterwards. Unemployment rates are also at record highs. According to the U.S. Bureau of Labor Statistics, -The share of families with an unemployed person rose from 12.0 percent in 2009 to 12.4 percent in 2010, the highest level since the data series began in 1994.- With the unemployment rate being so high, employers are able to be very picky about who they hire. Many employers are requiring candidates to have a degree for positions that did not previously require a degree. Even employers such as local stores, McDonalds, and other fast food chains will not hire people who have previously held higher paying jobs but who are without work.

Not only did the unemployment rates hit record highs, but consumer prices have increased by at least .5 percent over the past year, with several areas increasing substantially more such as gasoline prices (19.2%).

According to MSNBC, in early 2010, foreclosure rates surged the first part of 2010 reflecting the largest increase in the past five years. -The number of U.S. homes taken over by banks jumped 35 percent in the first quarter- from the previous year. -In addition, households facing foreclosure grew 16 percent in the same period and 7 percent from the last three months of 2009.-

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Arizona Bankruptcy Lawyer- What Steps To Take Before Hiring A Bankruptcy Lawyer

You need an Arizona Bankruptcy lawyer. You have made the decision. You decided to file for bankruptcy in Arizona. What steps should you take before going to see a lawyer?

Planning is crucial for bankruptcy and people need to educate themselves about their debt and plan for their financial future. Bankruptcy is definitely a part of that.

So planning is the first step.
How much do you make? Ask yourself that question. And more to the point go and gather up six months of paycheck stubs. Do the math on that. How much do you really earn?

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Pros and Cons of Filing Chapter 7 Bankruptcy

Deciding whether to file for Chapter 7 bankruptcy can be a difficult decision. Chapter 7 bankruptcy is a type of bankruptcy that enables individuals and businesses to eliminate certain unsecured debt. Although Chapter 7 bankruptcy can provide necessary debt relief, it can also negatively affect your credit, your self-image, and your reputation. Consider the following list of pros and cons when determining whether Chapter 7 bankruptcy in Memphis is right for you.

Cons

Filing for bankruptcy is a serious decision that comes with severe financial consequences. The following are some of the most common negative consequences associated with Chapter 7 bankruptcy:

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Filing for Bankruptcy in San Antonio

Admit it – you’ve been thinking about bankruptcy. Perhaps you have credit card debts that are out of control. Maybe you are attempting to save your home from foreclosure or keep your car from being repossessed. The bills are piling up and the stress is killing you. The phone is ringing off the hook with bill collectors. Many people do not know where to turn for help. Radio and television ads promise instant debt relief but don’t deliver. There is only one sensible way to dig your way out of severe debt problems. The process begins by contacting a San Antonio bankruptcy attorney. There have been changes in bankruptcy law and you are required to follow all the rules you file for bankruptcy. A San Antonio bankruptcy lawyer can advise you on these requirements and let you know how the bankruptcy process works. Making a fresh financial start can only begin when you discuss bankruptcy with an attorney. Filing bankruptcy may free you from your terrible credit card debts, stop frightening home foreclosure and allow you to keep your family home. However, filing for bankruptcy has become a very complex process. It begins with making up your mind which method of bankruptcy makes sense for your personal debt situation.

Working with a San Antonio bankruptcy attorney will allow you to focus your energy on bettering your financial situation and work on rebuilding your personal credit history. You will not have to worry about meeting the various legal requirements or filling out paperwork. A bankruptcy attorney can also ensure that you do not anything or act in a way that would make the court dismiss your case and ruin your changes at starting again with clean financial slate. Your attorney can also advise you regarding which debts cannot be erased by bankruptcy. Child support, support of a former spouse, and most tax debts cannot be wiped away by bankruptcy. Student loans are also not wiped away during the bankruptcy process.

Here are a few items that a San Antonio bankruptcy attorney will tell you are big mistakes. They will lower your chances of getting a bankruptcy from the court. Make sure you don’t make any of these usual bankruptcy mistakes. Do not run up your credit cards just before filing. This looks very bad to the court. They will know you went on a spending spree that your never planned to repay. Do not attempt repay personal loans to your friends. Every creditor deserves an equal chance at getting repaid. You must give complete and correct information to the attorney and the court on your bankruptcy forms. Even if mistakes are made or things are left out by mistake, they can work against you in your San Antonio bankruptcy filing.

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