Category Archives: Bankruptcy

Bankruptcy Alternatives

BEFORE YOU DECIDE TO FILE, THINK ABOUT THE ALTERNATIVES TO BANKRUPTCY

Bankruptcy should be the last resort to getting out of debt. It will stay on your credit report for up to 10 years, guaranteeing that you will receive higher than normal interest rates on future financing close to the bankruptcy filing. Some debts will remain anyway such as recent IRS debt, student loan debt and debt incurred through fraud just to name a few. Bankruptcy may be better for someone who has little income, extremely high liabilities and no realistic way of paying those liabilities back within a reasonable time period.

HAVE YOU CONSIDERED?

There are steps to consider prior to filing that are alternatives to filing bankruptcy.

1) Negotiate with your creditors. It may be possible to work out deals with some of your creditors. Explain you current financial situation, your inability to realistically pay the entire debt and your willingness to pay a percentage of the debt over time. I have found that most credit card companies are rarely willing to make such arrangements. However, you never know until you ask. They may be willing to work with you if they feel that a bankruptcy is looming in the distance. They no that if you file bankruptcy, they will likely receive nothing in return.

2) Debt consolidation loans. This may be a way to payoff all of your unsecured credit card debts with one loan that can actually reduce your monthly outlay. If you do this type of consolidation loan, make sure that you do not use your credit cards during your repayment term. This can cause you to fall even further behind by incurring new debt on credit cards that were just reduced to zero by the consolidation loan. Caution! Do not take out a consolidation loan against your home. You may have just turned dischargeable credit card debt into secured debt that can cause you to lose your home if not paid back timely.

3) Consumer Credit Counseling Services. CCCS may be able to negotiate effectively with your creditors even after your efforts have failed. Those efforts may include reducing financing charges, lowering monthly payments and updating past due accounts. For credit counseling to be effective, you must be able to make consistent payments over a long period of time (40 60 months).

4) CCCS will also provide educational material in an effort to help you avoid financial pitfalls in the future. Make sure that you are aware of the charges that your credit counseling services charges and to what extent your payments will be going to your creditors.

5) Handling the debt on your own. If you have sufficient income, can budget effectively and can communicate with your creditors, you may want to handle the matter yourself. You will have to contact each creditor in an effort to work out some form of payment arrangement. While some creditors will be open to this offer, most will not be interested. Unless you can make arrangements with all of your creditors, there is nothing preventing one creditor from filing suit and collecting the debt through legal means.

Boat Loans After Bankruptcy

Boat is the dream of every coast living residents who are living near the sea or the rivers. There are many problems for fisher men as well as other persons who want to purchase a new boat, fishing rode, net or other articles, which are related with boat however they dont concern about new boat because we are ready with Boat Loans After Bankruptcy to help the fisher men as well as other persons. Lenders who are attached over internet are providing Boat Loans After Bankruptcy without checking the credit history of the borrowers thus fishermen can get Boat Loans After Bankruptcy easily and then they can go to the beach or the bank of river to fishing. Many lenders or credit agencies are ready to provide Boat Loans After Bankruptcy. You are to apply for Boat Loans After Bankruptcy over internet by filling an online application form and few details as per requirement of the lenders and experts of the selected lender will complete rest of the work. Besides this lenders who are providing boat loans after bankruptcy dont need the documents to fax or no need to check your credit history at the time of providing Boat Loans After Bankruptcy. Therefore, borrowers who are bankruptcy, they can get Boat Loans After Bankruptcy amount range from $5000 to $150,000 without any tension. There are many lenders attached over internet, they also provide Boat Loans After Bankruptcy through bad-credit-boat-loans online every time When you apply for Boat Loans After Bankruptcy then our lenders will provide you an online application to fill up, you are to fulfill your residence, name, contact number, email ID, account number, amount range, date of birth etc and remain task will be completed by the our experts of the lenders. Experts of the lenders will transfer the Boat Loans After Bankruptcy directly in your account within few hours. lenders want to tell you about the interest rate or repaying the Boat Loans After Bankruptcy. If you are a bankruptcy, however the rate of interest is average at your Boat Loans After Bankruptcy amount and the repayment process of Boat Loan After Bankruptcy may for 7years. If you are a good credit history borrower, the rate of interest is low at your Boat Loans After Bankruptcy, and you can repay the Boat Loans After Bankruptcy within 7years or 10 years. Thus you cant find such opportunity anywhere.

The Wells Fargo Wagon Doesn’t Come Down the Street – Bankruptcy Issues and Your Bank


If you have more than $5,000 in your Wells Fargo checking account when
you file a bankruptcy petition, be prepared. If such a situation occurs,
you may not have access to all of your hard-earned money. In many
cases, Wells Fargo will freeze your account until the bankruptcy trustee
tells them that it is okay to release it.


Why would this happen? It is due to a strict reading of the law. What
happens is that, when you file bankruptcy, you turn over legal ownership
of all your assets (including the money in whatever bank accounts you
have) to the bankruptcy trustee. So, essentially, it isn’t legally your
money any more. Wells Fargo Bank, in an effort to protect unappreciated
and defenseless bankruptcy trustees everywhere, wants to make sure that
the trustees’ money is kept safe from the depredations of debtors.


Wells Fargo Bank does have a legal justification for this with the case
Mwangi v. Wells Fargo, 432 B.R. 812 (9th Cir. BAP 2010).

Of
course, the vast majority of accounts with more than $5,000 in them will
be unfrozen with no payment to the trustee. That’s because the trustee
returns property to debtors that he can’t keep – stuff that is either
worthless or exempt from collection. In California, debtors are allowed a
“wild-card” exemption of up to almost $23,000. That means any
collection of assets, including cash in a bank, worth up to $23,000 will
be returned to the debtor.

There may be circumstances where a
debtor should file bankruptcy at a time when he has nonexempt cash in an
account, but those are few and far between. If Wells Fargo ever turns
over cash from a frozen account to a trustee, I will immediately think
of malpractice on the part of the debtor’s attorney.


So the Wells Fargo practice of freezing accounts, while
legally-sanctioned, appears to be useless except for the purpose of
inconveniencing people of lesser means.

In the meantime, my advice to would-be debtors: get your money out of Wells Fargo accounts.


Also, in lieu of such situations, always be mindful that there are
plenty of resources for debt counseling, bankruptcy and many other
financial problems. If you are having trouble with your finances, then
seeking advice from credible and professional entities is hardly every
anything less than beneficial. Even if such problems are unavoidable,
those same entities can provide you debt relief and bankruptcy services
that can help you in a bind.

California Bankruptcy Laws-Learning How to Use Them

With this article we will explain the application of the
California bankruptcy laws and its exemptions; laws and how they work.
These California bankruptcy laws are taken from federal bankruptcy laws,
title 11 of the United States Code.

Melisa Jackson is a former
client of Personal Bankruptcy Avoidance, and she was wondering about
some issues with the California bankruptcy laws, thus Martin Rogers, our
specialist in bankruptcy will help her with this interesting topic.

Melisa Jackson:

How are the California bankruptcy laws organized?

Martin Rogers:

The California State is divided into four (4) bankruptcy districts
with four (4) bankruptcy courts named after each district. These courts
are:

– California Eastern bankruptcy court

– California Northern bankruptcy court

– California Southern bankruptcy court

– California Central bankruptcy court

Melisa Jackson:

How does the state of California deal with bankruptcy?

Martin Rogers:

California
bankruptcy laws allow people to pay secured loans; letting the owners
of the property recover and sell it at the normal market price after
paying the whole debt. People can find the California bankruptcy laws
exemptions in the exemptions chart.

California bankruptcy laws accept different kinds of exemptions.
There are two systems, 1 and 2. Every costumer has the right to choose
which one suits them best.

Melisa Jackson:

How do California bankruptcy exemptions help people?

Martin Rogers:

As
I mentioned before, California bankruptcy laws accept different kinds
of exemptions; system 1 and system 2. By using system 1, people receive
exemptions in homestead as follows amounts:

– From around $45,000 to 49,000 if the person is single and is not disable in any way

– From around $72,000 to 74,000 for families, and

– From around $122,000 to 124,000 for senior citizens

people also receive exemptions in personal properties as follows

– Bank deposits up to $1,900

– Buildings materials up to $1,900

– Motor vehicles up to $1,900

And
other belongings that go up to $4,800. System 1 also covers all types
of insurances, pension plans and official benefits such as health aid
and compensations. System 1 also covers wages of a minimum of 75%.

California
bankruptcy law System 2 is more different than System 1 because it
differs in some exemptions: homestead to $17,500 for all classes, motor
vehicle to $2,800, personal benefits to $17,500 and pension benefits
(only the ones qualified by ERISA) and this one goes up to $915.

Melisa Jackson:

Anybody living in the State of California can make use of the California bankruptcy laws?

Martin Rogers:

According
to the new California bankruptcy law that has taken effect on October
2005, anybody who wants to take advantage or make use of the California
bankruptcy exemptions, must prove to the state that he or she has lived
for as long as two years as a permanent resident in the state of
California. The person must have resided for that period before filing
for bankruptcy. Otherwise the person has to spend the 180 days prior to
the two year period.

The 2005 Bankruptcy Act within the
California bankruptcy laws states that it is required that all
individual debtors who file bankruptcy on or after October 17, 2005,
undergo credit counseling within six months before filing for bankruptcy
relief and complete a financial management instructional course after
filing bankruptcy.

Melisa Jackson:

Martin, what are the mandatory conditions to file for bankruptcy based on the California bankruptcy laws?

Martin Rogers:

On
a previous article of mine titled “Bankruptcy, Way Out or Deep
Problem”, a previous client of mine asked the same question in order to
know if he should consider filing for bankruptcy as a solution to his
financial situation, this is what I answered him:

“When you start thinking about filing for personal bankruptcy you
should live in a state for 90 days preceding the filing and you should
have less than $ 290,000 on total unsecured debt or less than $ 860,000
on secured debt. In October 2005 the new bankruptcy law went into
effect and established that consumers who earn less than the minimum
wage could still file for Chapter 7 personal bankruptcy. But people, who
earn more than that, need to apply for Chapter 13 bankruptcy type. This
one requires a repayment plan.”

Remember that bankruptcy as a
last resort tool can bring very unpleasant after effects. That is why
people must be certain of their decision and they should look for
professional advice.

Check these links to learn more:

http://www.personal-bankruptcy-avoidance.com/Bankruptcy/CA-California/Bankruptcy-CA-California.shtml

http://www.personal-bankruptcy-avoidance.com/Loans/CA-California/Loans-CA-California.shtml

Difference Between Bankruptcy & Insolvency

Getting bankrupt is one of the biggest nightmares for anyone of us. We work harder everyday, just to make out future safer and secured. Well, some of us get confused about the words bankruptcy and insolvency. To clear the doubts here is small attempt to make people understand the difference between the two words and their meanings.

Most of us tend to get confused, thinking that insolvency and bankruptcy are two words with the same meaning. The words are similar, but have a very thin line of difference between their meanings and so they are not parallel words with similar meanings but are two different words with an altogether different meaning used in very similar situations.

Bankruptcy: Bankruptcy, by definition is a word used more often for the individuals who have lost all their valuables, assets, property, etc. and are completely into debt.

Insolvency: On the other hand, Insolvency is a word used often in the business or corporate sector for any business or company that has failed and is in debt. When the cash inflow of the company freezes and is not able to meet its required financial commitments to continue its proper functioning, the company is called to be suffering from insolvency.

To understand these two words better, let’s go through their meanings in detail trying to understand them more closely by examining them under the various situations thus, trying to find options to avoid these conditions. Here are a few very basic points that have been given to help you avoid these extreme conditions and then emerge out of them without many problems.

1During these situations, the time just happens to fly off very soon. Thus, you shouldn’t waste your time in waiting and thinking about how to recover from this debt. Thus, to make your decisions effective and right, talk to your advisory about the problem and find a solution for the problem.

2Always plan your monetary strategies before you start your business and then later make a point to follow them without any blunder.

3There are various corporate groups who help to solve these problems by providing their assistance at very nominal charges or charge their fee, after the company is capable to earn again independently.

4Evaluation and a re-evaluation about the regular expenditures, assets, and other valuables is a must. This type of regular evaluation of the important documents helps you to get proper liberation in the later stages.

5Cut down you expenditures and never feel shy to discuss about the financial problems to your financers or creditors. Consider their suggestions and follow them to come out of this problem as soon as possible. A proper communication with the financers is a must as a lack of communication might make them have wrong thoughts about you.

6Honesty is your main element which will help to protect yourself. Honesty in your communication will help to improve the situation with the help of your financers and other creditors.