Avoid Bankruptcy Blunders

admin — Thu, 16 Jun 2011 04:58:38 +0000

Filing for bankruptcy is not an easy task, especially if you are unfamiliar with bankruptcy laws and court procedure. Failure to include the correct information, or submit the proper documents may result in a rejection of your bankruptcy filing.

There are several reasons why a court may reject your bankruptcy filing. One reason includes failure to pass the Means Test. The purpose of the Means Test is to ascertain how much disposable income you have. If you have too much income, you may not be eligible for Chapter 7 bankruptcy.

If you are eligible, there are additional requirements you must complete before your case can be discharged (ie. relief from all debts). This includes submitting tax documents, completing a credit counseling class, etc. Once you submit the appropriate paperwork, you will be required to attend a creditors’ meeting. Failure to attend the meeting may result in a dismissal of your case. Also, once you have filed for bankruptcy, a creditor or the trustee could challenge your discharge should you fail to properly disclose all your assets.

Thus, a court could easily reject your bankruptcy filing because of a mistake or omission in your paperwork. It is important to contact an experienced bankruptcy attorney to help you with your filing and to ensure that you are meeting all the requirements.

No Stigma for Filing Bankruptcy

admin — Wed, 08 Jun 2011 04:10:24 +0000

The thought of bankruptcy and your first instinct is to cringe at the prospect. Nobody wants to admit the need to file bankruptcy because of the negative connotations attached. However, these days bankruptcy does not have to leave you feeling ashamed or guilty. Personal bankruptcies are often the result of unexpected events, such as home foreclosures or job loss. It is important to realize that during these tough times bankruptcy is a positive solution to an otherwise tragic circumstance. If you are eligible for bankruptcy, it can cure or eliminate your debts and may even save your property from foreclosure. Also, all is not lost after you file for bankruptcy. Most debtors believe bankruptcy has the lasting effect of damaging their credit score. Not true. While your bankruptcy will remain in your credit report for up to 10 years, re-establishing your credit score will not take nearly as long should you maintain positive spending habits. Additionally, studies revealed that credit card offers were available to debtors immediately after their bankruptcy was discharged.

People who are contemplating bankruptcy should consult with an experienced bankruptcy attorney before they file. Bankruptcy laws are not only complex, but proceedings can be time-consuming and stressful if you are unaware of local rules. A bankruptcy attorney can advise you as to what type of bankruptcy you are eligible for, what to expect, and what will happen to your debts and property should you file. Thus, it is important to have a bankruptcy attorney to help you navigate the process during this tough time.