AUTO INSURANCE INFORMATION

Deciding to file for bankruptcy is never an easy choice to make. You must first weigh the pros and cons, and determine what type of bankruptcy you can file.

There are two major ways to file bankruptcy and you should know that it is not an easy process. You can do it on your own if you understand the laws and the two different types of bankruptcy you can file. First there is chapter 7; chapter 7 bankruptcy is the conversion of assets into money. This allows you to payoff debts quickly. With chapter 7 bankruptcy you sell your assets to pay your creditors and within a few months you have charge offs on your credit. Chapter 13 is the next method used to file bankruptcy in the United States. Chapter 13 is the repayment plan with little or no interest. This means that you file chapter 13 with the courts, then all of your debts are compiled and you are set up on a repayment of those debts to take place each month until it is paid off. This is the advised way to go if you have a steady job but just cannot make all your monthly payments.

When considering both of these options you may be overwhelmed by what is best for you and your situation. The best advice is to seek out legal council that can assist you in determining which type of bankruptcy you should file as well as help you with filing the papers with the courts.

When it comes to choosing an attorney to represent you in your bankruptcy case you want to ask some important questions to aid you in your decision. Do not consider fees and payment prices alone, as you should focus on other factors that are just as important if not more important.

Important Questions To Ask

Ask each attorney you speak with how long they have been in practice and what level is their experience as an attorney. Ask for the attorney’s qualifications and what areas they specialize in. Asking about fees and payments is also needed for your choice in choosing your bankruptcy attorney. Also ask yourself some questions. Questions such as does the attorney seem competent? Is his office staff organized and punctual? If you are able ask some questions about the attorneys client relationships. Law does prohibit an attorney from speaking about clients unless he has been given the permission from the client. These questions can allow you to make a solid choice on who will represent you.

Comfort And Confidence

When meeting with your attorney does he or she seem to be considerate of your concerns? Do you feel comfortable speaking to your attorney about all aspects of your bankruptcy decision? Do you personally feel confident that your attorney will be able to perform all his or her duties in your bankruptcy case? If you feel discomfort of any kind you may want to continue reviewing possible attorneys for your case. You have to feel safe enough to put your financial concerns in the hands of your attorney. This will allow the process of bankruptcy to be much less uncomfortable and to proceed much more fluidly for a positive experience.

When a person gets really behind on their bill payments it may seem as though every five minutes someone is calling and asking for money. In many cases,

explaining the circumstances that caused the person to be behind in payments and asking for suggestions on how to keep up on payments will be enough information to satisfy these callers. Many debt settlement companies are willing to work with the debtor to see what can be done to satisfy this debt, but not all of them feel the same way. Some get tougher and feel if they intimidate a person they will send a payment sooner. Some bill collectors go to great lengths to live up to their reputation, in spite of consumer protection laws that are meant to protect people against hostile action.

While creditors have the right to attempt contact on past due bills, they cannot harass anyone for non-payment. According to the law, using foul language or calling constantly with the intent to annoy the debtor into making payments is considered harassment. Creditors cannot be calling at odd hours or calling work, after they have been advised not to do so or calling friends and family members without permission is also considered harassment. Harassing phone calls, especially those containing threats of violence do not have to be accepted by anyone. If the only way out of the financial mess is bankruptcy, then the calls will come to an end.

If attempting to work things out with debt settlement companies fail and bankruptcy is filed, all collection efforts including debt collection calls, by the creditor or their agents must stop, in accordance to the Fair Debt Collection Practices Act. Continuing to make contact after being informed of a bankruptcy filing, they may face fines and penalties. Informing them that an attorney is representing a debtor requires all contact to go through the attorney.

In most cases (especially in foreclosure) if the house payments are behind, there is a good chance utility bills and shutoff notices and coming in more frequently. Filing for bankruptcy can prevent the shutoff of utilities in Chapter 7, eliminating the past due balance and in Chapter 13, paying the amount past due through the court-approved plan.

While in most cases student loans are not dischargeable through bankruptcy, eliminating a lot of other debt through Chapter 7 may allow money to be available to meet the obligations. In Chapter 13, if your finances qualify for this type of filing, consolidating student loans into one payment made to the court may be a possibility.

An embarrassing problem faced by many is wage garnishment by creditors. The employer will know about the financial problems and some employers have policies about the number of garnishments they can tolerate before job action is taken. Bankruptcy can put an instant end to garnishment procedures, even though the wages are subject to a prior court ruling.

Bankruptcy can be an effective tool in stopping collection action or fraudulent claims. If the amount claimed to be owed is inaccurate, filing for bankruptcy will eliminate the debt, regardless of the amount.

The Bank of England’s monetary policy committee (MPC) has chosen to lower interest rates for the remainder of December, it has emerged.

At its

monthly meeting in London today (December 6th), the MPC voted to reduce the base rate of interest attached to personal loans, credit cards and other borrowing products by a quarter percentage point to 5.5 per cent. This is the first time that the committee has cut rates since July 2005. According to the body, the decision was taken due to slowing economic growth, deterioration in the wider financial markets and a tightening in the supply of loans and other types of credit to both households and businesses. However, as a result of the announcement, a number of consumers could find that pressure on their spending will lessen during the coming months as charges on borrowing such as personal loans fall.

Meanwhile, the Bank reported that inflation on the consumer price index stood at 2.1 per cent over the course of October. It was suggested that increased food and energy prices are set to keep inflationary levels above target in the coming months, which in turn could impact upon people’s ability to service other areas of their finances such as loans, mortgages and credit cards.

Commenting on the MPC decision, Simon Rubinsohn, chief economist for the Royal Institution of Chartered Surveyors (Rics), said: “Today’s rate cut will provide some much needed relief for the 1.4 million homeowners who are due to refinance their mortgages over the next year or so. Higher money market rates resulting from the credit crunch threatened to lift the monthly out-goings for many of these borrowers which in turn could further crimp consumer spending during the course of 2008.”

However, the Rics economist added that although it would be wrong for homeowners to “ignore the inflation risk”, many people should be able to cope with “the sharp jump in food and oil prices”. Mr Rubinsohn added that the institution expects the MPC to cut rates again in the early stages of 2008.

Stephen Leonard, director of mortgages for Alliance & Leicester, added that today’s decision “is excellent news” for all homeowners, especially those who are due to find their short-term fixed-rate deals are set to expire. As a result of the move, consumers may find that their ability to make payments on mortgages, loans and other commitments is not under as much pressure following the Bank’s previous moves to increase the base rate five times since August 2006.

The director added that such moves could also help prospective first-time buyers to get on to the property ladder as mortgages will become more affordable. He said: “Having enjoyed historically low fixed rates, this move to reduce the cost of borrowing will be a welcome one.”

As a result of today’s decrease, now could be an ideal time for those consumers who are currently struggling to handle their finances to apply for a loan. In taking out a personal loan, many people may find that it helps them to manage their money. According to Lloyds TSB’s recent consumer barometer, a record 73 per cent of Britons believe that, in general, costs have increased over the last 12 months. Rises in mortgage payments, food prices and utility bills were reported to have taken place over the course of this year, with a cheap loan being one possible way to meet such expenses in the coming months.

Under pressure from retailers and other companies claiming losses from increased bankruptcy filings, congress took steps a few years ago to make it more

difficult for individuals to file for bankruptcy. Initially, bankruptcy laws were designed to help people, whose financial debt got out of control and were meant to be a method of giving them a new start.

However, over the years many were taking advantage of the bankruptcy laws to continually file bankruptcy as often as allowed by law to get out of paying their financial obligations. This overuse of the system led to more stringent rules to protect creditors often the loser in cases with people who worked the system to their advantage. New laws were designed to prevent those from simply getting out of their obligations.

For those who fall into out-of-control debt, the bankruptcy laws exist to help them make a fresh start. Providing the need for financial and debt management as part of the bankruptcy process will provide the needed help while sifting out those individuals who use the bankruptcy laws to simply create debt and have it wiped out by the court periodically.

In most instances the laws still allow for discharging all legally dischargeable debt for those whose only way out is through bankruptcy. However, it also makes it tougher to meet the demands of the new laws. This may prevent some people from filing for bankruptcy, either Chapter 7 or Chapter 13 from seeking the help offered through bankruptcy, only making their financial life more miserable.

In 2005, the U.S. government seemed to agree with lobbyists for credit companies and determined that too many debtors were allowed to get out from under their self-created debt by filing for bankruptcy. Many were pointing to a few cases in which people with the means to make good on their obligations were simply filing for Chapter 7 bankruptcy and leaving the creditor holding the balance.

The new law, which was supposed to provide additional help to consumers in handling their credit load, also added many requirements, including the need to go through credit counseling services before filing bankruptcy. The counseling is also to provide alternatives to bankruptcy, attempting to move more people from Chapter 7 bankruptcy into a plan that will provide the creditors receiving payments through Chapter 13 filings.

The new bankruptcy laws added extra burdens for the debtor as well as the attorneys, which not only increased the amount of information collected for bankruptcy filings, but also included many new financial requirements that are beginning to resemble the current income tax code. In order to understand the new rules and regulations as well as the reporting requirements, many attorneys will need to specialize in bankruptcy.

There are also penalties in the new law for both attorneys and clients who willfully attempt to use inaccurate information in a bankruptcy petition. If a violation is found by the court, the attorney fees and client costs can be claimed by the court trustee, giving the trustees more incentive to more carefully review all filings in the court.

There comes a time when many people have no choice but to seek bankruptcy protection from their creditors. If going through a debt consolidation specialist

does not result in payments low enough to maintain a reasonable standard of living. When debts are overwhelming, bankruptcy through Chapter 7 may be their only alternative.

Many people may prefer to seek protection under Chapter 13 bankruptcy but before a court will approve the plan, it will have to be shown the individual can meet the financial demands of the plan. If a person is unemployed with no appreciable assets, going through a court repayment plan will not be an option. Additionally, if the person’s income is not sufficient to allow for living expenses while paying off their debts, it will also be rejected.

As an example, a person with $30,000 in debt, wanting to enter a Chapter 13 repayment plan for five years, the payments needed to satisfy the plan would be $500 per month. If their monthly income does not account for that amount plus approved living expenses, then the plan will be rejected.

Additionally, some creditors may be reluctant to enter into a loan consolidation plan through a private specialist, but have little choice in bankruptcy courts. However, they do not always agree to erase all charges unless specifically ordered by the court to do so. A person in a Chapter 13 bankruptcy proceeding can also, if they are unable to meet the payment obligations, petition the court for relief through Chapter 7 and liquidating assets to pay part of their debts.

New Bankruptcy laws have been enacted that make the process more labor-intensive and require a more thorough reporting of income and expenses by the debtor. While the basic process remains the same, getting into the court now takes a longer and more circuitous route. In the past, debtors could consult with an attorney and make their own decision on the type of bankruptcy they want to file.

Under the new laws, within six months of filing for bankruptcy the debtor must go through a qualified debt counseling service that provides alternatives to bankruptcy to insure the debtor is making informed decisions of filing for bankruptcy. Additionally, the decision to file Chapter 7 or Chapter 13 bankruptcy is now based on mathematical formulas, to determine if they can make the cut for Chapter 7.

This means test makes the determination based on income, family size and allowable expenses and through a complicated formula determines if the person has to means to pay their debt through Chapter 13 bankruptcy. While the means test may look fair on the surface, there are special circumstances and exceptions to the requirements that each client may be subjected to prior to filing for bankruptcy.

The new laws were designed to steer more people away from Chapter 7 bankruptcy and to Chapter 13 in which their debts will be paid through a court plan. Unfortunately, the new law does not take into consideration many factors that can affect individuals’ finances and does not offer safeguards against potential errors by counseling services. Before considering bankruptcy, consulting with an attorney can help a person make their best decision.

When a client and their attorney file for bankruptcy it is not automatically presumed that everything listed on the petition is the exact truth. Attorneys

generally will not file any claims knowing they are not accurate, but then again, the attorney is relying on the client’s honesty to insure all the appropriate information is available.

In the majority of bankruptcy cases the attorney filing the petition has already gone through the paperwork to determine if any claims being made are inaccurate. Once the case is filed, the trustee will go over all information supplied by the client, looking for inaccuracies or reasons to believe fraud may be involved.

The role of the trustee in bankruptcy to insure all creditors are treated fairly and that any non-exempt assets are sold for the most money, which is then distributed to the creditors in accordance with their claims.

The United States Trustee who is an officer of the Department of Justice appoints trustees. There are no state agencies involved in a bankruptcy proceeding as all matters are handled through the federal bankruptcy courts.
They will also participate in creditor meetings and has the power to discharge of debt if evidence of fraud or ineligibility is found with the creditor. Additionally, any actions required by new bankruptcy laws concerning money management and budget planning will also be reviewed by the trustee to insure the client is meeting all requirements. Typically, bankruptcy attorneys work with the same trustees on numerous cases and know how the paperwork needs to be filed to meet specific trustees’ concerns. Any concerns with how the trustee handles a case should be left up to the attorney to get answered.

The trustee’s role in bankruptcy differs with the type of bankruptcy filed. Whether Chapter 7, Chapter 13 or a Chapter 11 for businesses, his roles to determine the true value of any assets claimed and to protect the creditors from fraudulent claims, insuring they get a fair value of any assets. While a Chapter 13 trustee’s role is more of an overseer, they stay close to the case, representing clients to insure payments are received and distributed according to the court’s plan.

Trustees for Chapter 7 filings generally serve a one-year term while those working with Chapter 13 filings may be standing trustees serving a geographic area or a court region. Some clients may have confusion over the role of a bankruptcy trustee and believe they are more interested in helping creditors than insuring the client receives a fair chance. The In most Chapter 7 bankruptcies there are few assets involved, however if there are it is the trustee’s responsibilities include liquidating the assets and distributing the money.

With a Chapter 13 bankruptcy filing, the trustee’s job is more administrative as there will be no assets to liquidate. They will make sure the balances claimed to be owed by the client are true and have approval power over the repayment plan. Most attorneys will not file for Chapter 13 fir a client if they do not have the means of meeting the payment obligations.

The trustee will accept payments from the client and distribute them to the creditors according to the plan approved by the court.

There are many things that you can do in order to prepare yourself for bankruptcy, and in order to make sure that you are ready for what is going to happen next.

Getting counseling bankruptcy is the best thing that you can do in order to get yourself ready for the issues that will come up when you file for bankruptcy. You are going to want to think carefully about all of the issues that will come up, including what will happen to your family and to your property. At counseling bankruptcy, you will be able to have someone take a look at your various situations and tell you what you can do to make it all go more smoothly for you and for your property and family.

Often, mistakes are made when you file for bankruptcy simply because you don’t know what you are doing and are afraid to tell anyone that. Many times people are very proud, and even though they are filing for bankruptcy they don’t want to have any other help or ask any other questions, they feel that they can do it on their own. However, if you don’t take advantage of the counseling bankruptcy, you might find that doing it on your own simply doesn’t give you the best options. When you go for it completely on your own, you might find that you make mistakes, and end up owing more money. You also will find out that by going to the counseling bankruptcy, you will be able to get the best deal for your certain situation.

In order to file bankruptcy in the state of Delaware you are required to receive credit counseling with in a six-month period, prior to filing for bankruptcy. This was put into place after the Bankruptcy act of 2005. It became effective after October 17th, 2005. There is another requirement that is needed to file bankruptcy in Delaware and that requirement is a mean test. A means test is performed by taking your average income for the six months prior to filing bankruptcy and compares that to the median income for the state. Where your income level falls will depend on which chapter of bankruptcy you will be eligible to file. If your income level falls below the median, you are eligible to file chapter 7. If your income falls above the median, you will have to wait for further comparison results to provide you with your eligibility conclusion.

Each state offers a varying range of laws and procedures for bankruptcy filing, though the actual process of bankruptcy is much the same. It is mainly an administrative process that is held outside of the court. A bankruptcy judge carries the final decision on which chapter you are eligible to file. Depending on the details of your specific case and which chapter you do file may mean more time in or out of the physical court. Bankruptcy with a chapter 7 is taken care of outside of the court, while chapter 13 is carried more inside the court itself.

In order to see where you stand in a bankruptcy claim you should speak with a qualified bankruptcy attorney. They will be able to provide you with the requirements by state and what information is needed from you. Your income, debts and assets will have to be reviewed to see which procedures will be put in place to free you from your debts. You can find a bankruptcy attorney in your local phone book or by searching online. Speak with a bankruptcy attorney today and you could be well on your way to financial freedom.

Deciding to file for bankruptcy is never an easy choice to make. You must first weigh the pros and cons, and determine what type of bankruptcy you can file.

There are two major ways to file bankruptcy and you should know that it is not an easy process. You can do it on your own if you understand the laws and the two different types of bankruptcy you can file. First there is chapter 7; chapter 7 bankruptcy is the conversion of assets into money. This allows you to payoff debts quickly. With chapter 7 bankruptcy you sell your assets to pay your creditors and within a few months you have charge offs on your credit. Chapter 13 is the next method used to file bankruptcy in the United States. Chapter 13 is the repayment plan with little or no interest. This means that you file chapter 13 with the courts, then all of your debts are compiled and you are set up on a repayment of those debts to take place each month until it is paid off. This is the advised way to go if you have a steady job but just cannot make all your monthly payments.

When considering both of these options you may be overwhelmed by what is best for you and your situation. The best advice is to seek out legal council that can assist you in determining which type of bankruptcy you should file as well as help you with filing the papers with the courts.

When it comes to choosing an attorney to represent you in your bankruptcy case you want to ask some important questions to aid you in your decision. Do not consider fees and payment prices alone, as you should focus on other factors that are just as important if not more important.

Important Questions To Ask

Ask each attorney you speak with how long they have been in practice and what level is their experience as an attorney. Ask for the attorney’s qualifications and what areas they specialize in. Asking about fees and payments is also needed for your choice in choosing your bankruptcy attorney. Also ask yourself some questions. Questions such as does the attorney seem competent? Is his office staff organized and punctual? If you are able ask some questions about the attorneys client relationships. Law does prohibit an attorney from speaking about clients unless he has been given the permission from the client. These questions can allow you to make a solid choice on who will represent you.

Comfort And Confidence

When meeting with your attorney does he or she seem to be considerate of your concerns? Do you feel comfortable speaking to your attorney about all aspects of your bankruptcy decision? Do you personally feel confident that your attorney will be able to perform all his or her duties in your bankruptcy case? If you feel discomfort of any kind you may want to continue reviewing possible attorneys for your case. You have to feel safe enough to put your financial concerns in the hands of your attorney. This will allow the process of bankruptcy to be much less uncomfortable and to proceed much more fluidly for a positive experience.

Overwhelming debt doesn’t just happen overnight. The majority of the American public live from paycheck to paycheck. It only takes one accident or illness

to put you behind in your debts. Once you are behind it is possible that you may never catch up. This does not make you a bad person, just one that is in need of rescue. That help can come in the form of a bankruptcy. If you are like most people you have no idea how to do this and what is involved.

Filing bankruptcy is done through the court system. It is possible for you to do this on your own, but not very advisable. If you decide to do this on your own, you need to research this process. There are do-it-yourself kits on the Internet and companies that offer this service. You will need lots of patience to attempt this and hope you don’t make mistakes.

Your first decision in getting ready to file bankruptcy is what type you want to file. Chapter 7 bankruptcy involves selling your assets and dividing the proceeds among your creditor. Chapter 13 is working with your creditors to stop their interest and accepting smaller payments over a period of time. This is not a decision that you want to rush into. You can find information on the Internet, in your local library or by consulting with other people.

If you don’t think you can handle doing it yourself, your safest bet is to contact a lawyer who deals with bankruptcy. They will have the forms that need to be completed and will know how to handle these issues in the court system. Even with an attorney, a bankruptcy will take time but when it is completed you know that everything was done, as it should have been. Bankruptcy may not be what you want to do but if you have to, then do it correctly.

The primary purpose of bankruptcy is to allow a debtor a fresh start of his or her financial life again. Recently, the law has changed. There are further evaluations of a person’s financial state, and more requirements for obtaining the debt discharge. Some states have varying exemptions for bankruptcy. The debtor should closely examine the exemptions in their state of residence. In addition, the debtor’s attorney will go over the entire bankruptcy process and any specific state exemptions as well.

The State of California has two different sets of exemptions regarding the bankruptcy process. The debtor must choose one set of exemptions, and the qualified bankruptcy attorney will be able to assist in the decision of the right set of California exemptions for the debtor.

Both sets of California bankruptcy exemptions are separated into asset, homestead, personal property, insurance, pensions, public benefits, tools of the trade, wages, and miscellaneous categories. The debtor should become intimately familiar with all of these categories of California bankruptcy exemptions. The debtor’s attorney will be able to determine whether which set is the correct one to employ for the bankruptcy process.

Most of the California bankruptcy exemptions are easy to understand and can be found through online sources and a qualified bankruptcy attorney will be able to assist the debtor. The tools of the trade category refers to tools, implements, materials, instruments, uniforms, books, furnishings, equipment, vessel, motor vehicles from $5,000 to $10,000 total if used by both spouses in same occupation. The motor vehicle cannot be claimed if under tools of trade exemption.

When you take the time to view the statistics of bankruptcy you will be alarmed and shocked. In a years time form 2006 to 2007 the number of bankruptcy

filings increased by 39,365. On June 30th, 2006 it was recorded that for the year a total of 91,674 people filed for bankruptcy. On June 30th, 2007 it was recorded that for the year a total of 91,674 people had filed for bankruptcy.

The rises in chapter 7 bankruptcies are steadily climbing and are not showing any chance of ceasing. The numbers of those who have filed for bankruptcy are the highest since the new bankruptcy laws of 2005 were set in place. The highest bankruptcy rates by state include Tennessee, Utah, Georgia and Alabama.

Other bankruptcy statistics are just as jaw dropping. Comparing Non-business to business filings you may be surprised. In 2006, the number of bankruptcies was 597,965 for Non-Business cases. Only 19,695 bankruptcies were filed by businesses in 2006.

When it comes to personal bankruptcies over half of those who file have experienced a serious health condition. Two out of three fliers have lost their job and 44% of filers are couples. More women than men file for bankruptcy. Women are rated at 30% while men rank at 26%. Sadly less than 9% of those who file for bankruptcy have not suffered job loss, medical expenses or divorce. These cases are often due to poor financial choices. The top ranking cause of bankruptcy is credit card debt.

You would imagine as we evolve in society that we would have a better understanding of how to control our finances or have methods set in place to help us prevent us from filing bankruptcy. Perhaps future statistics will show a decline in bankruptcy, as financial management courses are available. Only time will tell.

Too often people are led to believe that bankruptcy only occurs due to irresponsibility and poor money management. When in fact one of the top rated causes of bankruptcy is due to medical bills. Studies have shown that out of 1.5 million bankruptcies, half of those were due to out of control medical bills. Three quarters of these individuals were covered by health insurance. With outrageous prices for medication, hospital stays and other medical treatments it is easy to acquire a medical bill in the thousands.

With many Americans struggling to make ends meet while earning money to be considered middle class, medical bills can become a nightmare. Even by making constant payments it is near impossible to pay of harassing bill collectors. There have been examples of people who file bankruptcy who are excellent bill payers, have nice homes, drive nice vehicles and work hard to care for their families. For one woman this was her life until she was stricken with cancer. Medical bills took over her life financially and she was forced to choose bankruptcy for debt relief.

Other instances include an infant becoming stricken with the flu. The child was suffering from a high fever, not drinking fluids or eating as well as showing seizure like symptoms. The parents rushed their child to the emergency room for treatment. The child was cared for and regained its health with no complications. Though the child was healthy once again the parents became overwhelmed in medical bill debt. They were forced to file bankruptcy in order to regain financial control.

Life carries unexpected events, especially when it comes to human health. For cases like those listed here, frivolous spending but an illness that was unexpected did not bring on bankruptcy. This can easily explain why medical bills are a number one cause of bankruptcy filing.