Increase In Bankruptcy Filings
• According to the Administrative Office of the U.S. Courts, bankruptcy cases filed in federal courts were over 1 million for the last 12-month period, up more than 30 percent when compared to the approximately 800,000 filings last year.
• Over the last year, business bankruptcy filings totaled 38,651, up 49% from the previous year.
• Over the last year, non-business bankruptcy filings total 1,004,342, up 30% from the previous year.
• According to the Federal Reserve, household debt is at a record high relative to disposable income.
• According to a study conducted by Harvard University, nearly 90% of all families with children who file for bankruptcy list 3 reasons as the cause:
1. Job loss
2. Divorce
3. Medical problems
If you need to consult with a CARLSBAD BANKRUPTCY ATTORNEY, call Jeffrey Larkin at 1-877-NEW-HOPE (1-877-256-3946) for your free consultation with a CARLSBAD BANKRUPTCY LAWYER.
For more details, Please visit our website: http://www.live-debt-free-now.com
Alternatives to Bankruptcy: Deed in Lieu of Foreclosure
A deed in lieu of foreclosure is the process of reconveying title of property back to the lender so the lender does not have to initiate the expensive and time consuming foreclosure process. In exchange for conveyance, the lender usually cancels all personal indebtedness associated with the defaulted loan, which is a deed in lieu’s greatest benefit. A deed in lieu also hurts a borrowers credit score less than an actual foreclosure does.
In order to be considered a candidate for a deed in lieu, the indebtedness owed by the borrower must be secured by the real property being transferred. It is not possible to transfer other real property that is not collateral secured by the loan. The deed in lieu agreement must be voluntary on both sides and presented in good faith. In theory, the current loan balance should be equal to the fair market value of the property being conveyed, or the lender could refuse to accept a deed in lieu. As a practical matter, however, lenders will analyze the economics of the situation and may accept a deed in lieu if the alternative is a costly foreclosure. There are many intricate details involved with a deed in lieu of foreclosure and consumers contemplating this option should hire counsel familiar with the process in order to obtain the desired results.
If you are considering bankruptcy, call the preeminent CARLSBAD BANKRUPTCY ATTORNEY Jeffrey Larkin at 1.877.25.NEW.HOPE (1.877.256.3946) for your free consultation with a CARLSBAD BANKRUPTCY LAWYER.
For more details, Please visit our website: http://www.live-debt-free-now.com
What Kind of Bankruptcy Should I File: Chapter 7 or Chapter 13?
For some individuals who have amassed an insurmountable amount of debt, filing for bankruptcy may seem like the only alternative left. There are two types of bankruptcy ordinarily filed by individuals: Chapter 7 and Chapter 13. Depending on the person filing for bankruptcy, either of these chapters will be more appropriate than the other.
Chapter 7 bankruptcy involves eliminating almost all debts while liquidating one’s non-exempt assets. Those non-exempt assets are turned over to a trustee, who then takes the value of those assets and uses it to pay off as much of the existing debt as possible. Some of the assets exempt from liquidation include retirement funds, certain real property interests, and certain motor vehicle interests .
Once the liquidation process has concluded, the remaining debt, excluding student loans; some taxes; child support; alimony and other exempt debt, is essentially wiped clean.
For individuals, Chapter 7 bankruptcy is usually reserved for those will little or no income. There is a threshold which determines if one qualifies for Chapter 7 bankruptcy. If the filer’s income is more then his or her state’s median income, then it is required that the filer must meet the requirements of a “means test.” That involves determining if the filer’s income over 5 years is greater than a quarter of the debtor’s unsecured debt, when that amount is at least $6,575, or greater than $10,950, the filer is presumed to be abusing the rights under Chapter 7 and should probably file under Chapter 13 instead.
Chapter 13 bankruptcy involves restructuring one’s debts for filers who still have an adequate amount of income. It allows the filer to restructure payment plans of debts over a period of 3 to 5 years. During that time, creditors cannot begin or continue collection processes. The payment of debt plan under Chapter 13 is advantageous because it lowers the amount owed to creditors and the filer pays the consolidated debt to a trustee who then distributes the payments to the appropriate creditors.
The requirements for bankruptcy filers to file under Chapter 13 are less stringent than those filing under Chapter 7. Individuals qualify for Chapter 13 bankruptcy proceedings if the unsecured debt owed is less than $336,900 and the secured debt owed is less than $1,010,650.
For a free consultation with a CARLSBAD BANKRUPTCY ATTORNEY call Jeffrey Larkin at 1.877.25.NEW.HOPE (1.877.256.3946). Jeffrey Larkin is one of the top CARLSBAD BANKRUPTCY LAWYERS around. Call him today!
For more details, Please visit our website: http://www.live-debt-free-now.com
Answers to the 10 Most Common Questions About Bankruptcy
1. What is bankruptcy?
Bankruptcy allows individuals or businesses (debtors) who owe others (creditors) more money than they are able to pay to work out a plan to repay the debt over time or completely discharge the debt
2. Who can file for bankruptcy?
With a few exceptions, any individual or business owing money to a creditor can file
3. What type, or chapter, of bankruptcy should I file?
The selection of which type to file depends on your particular circumstances and whether or not there are assets available to repay all, or part, of the debts owed. Bankruptcy laws can be tricky and involved, so determining if you should bankrupt and what type of bankruptcy you need should be made with the input of an experienced bankruptcy lawyer.
4. How often can I file for bankruptcy?
Depending on the previous chapter of bankruptcy you filed and the chapter you are seeking to file now, the number ranges from every 2 to 8 years. Filing bankruptcy can adversely affect your ability to obtain future credit, rent housing and even negatively impact a job application, so any decision to file must be carefully considered.
5. Do I have to have a certain amount of debt to file for bankruptcy?
No. However, some situations may not warrant bankruptcy. If you financial situation is temporary, arrangements with individual creditors may be more suitable.
6. Can all types of debt be discharged by bankruptcy?
No. Generally the following types of debt cannot be discharged:
o Debts for taxes
o Debts for money, property or services obtained fraudulently
o Debts that are owed to a spouse, former spouse or child for alimony, maintenance or support of such spouse or child in connection with separation, divorce or other court order
o Debts not listed or waived by the debtor
o Debts owed for willful and malicious injury
o Debts for government-sponsored educational loans unless undue hardship can be shown
o Debts for death or personal injury caused by driving under the influence of drugs or alcohol
o Debts incurred after a bankruptcy was filed
7. Will I lose my home if I file for bankruptcy?
Not necessarily. The factors considered are:
o What state you are in
o The status of your loan (current or foreclosure)
o The type of bankruptcy you are filing (Chapter 13 provides more protection than Chapter 7 as long as payments are current)
8. How long will the bankruptcy stay on my record?
The bankruptcy will remain on your credit report anywhere from seven up to ten years.
9. When do I have to stop using my credit cards if I am planning on filing for bankruptcy?
As soon as you anticipate filing bankruptcy, you must stop using your credit cards. Bankruptcy law allows the review of questionable purchases for potential fraud. If a purchase is made 40 days prior to filing or cash advances taken within 20 days of filing, the debt may possibly be excluded from the bankruptcy.
10. Will bankruptcy stop all the harassing phone calls and mail from bill collectors?
Yes! An “automatic stay” will take effect when you file your case. It will stop the creditor harassment.
If you need to consult with a CARLSBAD BANKRUPTCY ATTORNEY, call Jeffrey Larkin toll free at 1-877-25-NEW-HOPE (1-877-256-3946. Mr. Larkin practices as a CARLSBAD BANKRUPTCY LAWYER and is one of the premier BANKRUPTCY ATTORNEYS in all of San Diego County. Call for your free consultation today.
For more details, Please visit our website: http://www.live-debt-free-now.com
