Filing Bankruptcy - Dealing With the Stigma

By Gerard Simington

Falling on your face is rarely much fun. Announcing it to others is even less so. Well, bankruptcy is the metaphorical equivalent of falling on your face financially. Traditionally, filing bankruptcy has had a stigma attached to it. Let's take a look at that.

There is a particular commercial on television I happen to love. You might have seen it. It shows a man married to a beautiful wife with two kids. He lives in a nice house. It has a pool. He plays golf and so on. Then they do a close up of him and he says "I'm up to my eyes in debt. Help!"

While the commercial is good for a laugh, it is also incredibly accurate. Keeping up with the Joneses in America means living on the financial edge for most people. When things go bad, as they have recently, many people fall off of that cliff. In such a situation, bankruptcy is often the only choice they have left. If the potential stigma of filing causes you pause, there are a couple of things to consider.

The current economic climate is such that tens of millions of people are in financial distress. With things so bad, is there really still a stigma related to filing bankruptcy? How many people have lost their homes because they couldn't refinance when values dropped like a rock? The vast majority of them ended up in bankruptcy. What about people who lost their jobs? You know where they ended up. If there is still a stigma with filing bankruptcy, it has to be a pretty small one.

Let's assume the stigma of filing bankruptcy still exists. In fact, let's assume it is a horrible stigma - the equivalent of wearing a red B on your chest like in the Scarlett Letter. So what? Ask yourself this question. Who is going to know you filed bankruptcy? Nobody is going to know other than your lawyer, a judge and a few creditors who probably go by the name HSBC credit card company and Capital One credit cards company. Your friends and family are not going to know unless you tell them!

Ah, but won't filing bankruptcy ruin your credit? Yes! If you are considering filing bankruptcy, however, your credit is probably already shot up. You should file bankruptcy if you are insolvent. As a general rule, people in good financial shape don't file bankruptcy.

You have the legal right to file bankruptcy if you so desire. Are there downsides to doing so? Of course. If you are in a heap of financial trouble, however, bankruptcy often is your last best choice. The only way to know if it makes sense for your particular situation is to sit down and talk with a bankruptcy attorney.

Gerard Simington writes for BankruptcyAttorneysandLawyers.com - find New York bankruptcy attorneys and lawyers near you with our free directory.

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Disadvantages of Personal Bankruptcy Filing

By Peter Gitundu

Just like there are two sides to every coin, there are advantages and disadvantages to bankruptcy, and in particular, personal insolvency. It is said to be an option to filing for insolvency, but take note that it should only be considered when all else fails. You should then weigh the pros and the cons and see whether you really need to go the personal bankruptcy way.

Personal insolvency, like all other forms of relief from financial distress, puts you under a lot of scrutiny financially. Any firm you approach for lending will want to know about your credit history. At the mention of insolvency, many may shy away and not be willing to extend any loan facilities to you. If they do, they will charge you a high interest.

You may also receive a bankruptcy restriction order if the circumstances leading to your insolvency were activities of mere carelessness like gambling and speculation. If this happens, your name remains in the records for a period of 15 years. This will again affect your credit rating and most of your business transactions will be conducted through the bank.

With personal insolvency, you risk losing your family home. Remember that personal insolvency has been defined as a situation whereby you give up a portion of your property to get a discharge from your debts. Some of the assets you will have to give up are both the movable and immovable properties and this includes your own home. If your home is sold off and the proceeds are still not enough to cater for the debts, they will still come for more of your assets till you have nothing more that can be sold off.

Peter Gitundu Creates Interesting And Thought Provoking Content on Finance. For More Information On How To Deal With Bankruptcy, Read More Of His Articles Here DEALING WITH BANKRUPTCY. If You Enjoyed This Article, Make Sure You SUBSCRIBE TO MY RSS FEED!

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Considerations Surrounding Filing For Bankruptcy

By Jon Arnold

If you are considering filing for bankruptcy, you should weigh your options carefully before actually making this decision. Now, some may scoff at such a notion since time is certainly not something individuals in dire financial straits may have much of. When debts are out of control and creditors are calling in a seemingly endless fashion, it would seem bankruptcy would be the proper quick fix. Actually, it is not at all a quick fix as bankruptcy remains a very complex legal process that is certainly not for those unprepared for it.

There are those that may believe bankruptcy is a "do-it-yourself" process that can be handled in a relatively easy manner. At one point, this was the case but abuse of bankruptcy filings led to the passage of much stricter bankruptcy laws. As a result, it is a much more complex process than it had been in the past. Additionally, bankruptcy is not filed on the federal level and this means your particular state may have tougher requirements than what might exist elsewhere. In fact, nowadays you must be approved to file, and there is no guarantee that you will even be approved to file!

Of course, the easiest way to circumvent dealing with all these complex issues would be to hire a bankruptcy lawyer. This means you will now be responsible for paying legal fees associated with the bankruptcy filing. Obviously, this could further drain your finances if the proceedings drag on and on. But, if you have no other options, you really do not have a choice do you? Well, when it comes to filing for bankruptcy, how do you know you do not have other options available? Often, even people that are in extremely serious financial difficulty have options available to them that could help them get out of debt in a much more efficient and less stressful manner than filing for bankruptcy. That is why it is helpful to undergo a bankruptcy evaluation prior to making any decisions to file.

A bankruptcy evaluation will look at your current financial situation and compare various other factors in regards to your net worth. From this, a clear opinion can be raised as to whether or not bankruptcy is the right option. If it is, then so be it. If it is not, then there is clearly no reason to engage in the long and complicated process of bankruptcy when a much better alternative would present a much better conclusion to the problem.

What are some of these better options? There are many and some are much easier than most would assume. For example, a debt consolidation loan may be enough to create breathing room for someone to get into better financial shape. In fact, even something as simple as lowering a minimum monthly payment may be all that is necessary. And, in serious situations, exploring the options available through a debt settlement offer is a viable alternative. Ultimately, the strategy you take will be based upon you own unique, individual situation.

The moral here is that filing for bankruptcy should never be the first priority for anyone in debt. Instead, it is best to explore all available options and arrive at the best possible decision.

For more insights and additional information about Filing For Bankruptcy as well as getting a free bankruptcy evaluation from a qualified and experienced bankruptcy lawyer in your local area, please visit our web site at http://www.bankruptcy-data.com

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Consequences of Bankruptcy

By Peter Gitundu

We have to be accountable for every course of action we take as we try to get out of a financial crisis. Many people file for bankruptcy when they come to a point where they have no hope financially. Wile this gives them some temporary relief from the burden of the debts, it comes with some consequences, both favorable and favorable.

Looking at the bright side, bankruptcy gives you a break from the constant harassment of your creditors. Once you file the petition, your creditors are notified and they are given an order not to try to recoup anything until the repayment process is put in place.

What is most discouraging about filing for bankruptcy is the fact that your image and credit rating will negatively be affected. Your name will be published in the gazette and anyone may just find out about your position. This affects you in the corporate world because you risk losing your job if you are in professions like law or you hold a leadership position in a company.

If you are used to living your life on credit, you will find it so hard to acquire loans from lending firms. You will be put under so much scrutiny and the mention of insolvency will raise eyebrows. If you hold a bank account in any bank, it will be closed down and you will be forced to open up another one for the sake of those transactions you carry out through the bank. Life will be tough in between the 10 years your name will be in the insolvency records, but be strong because you can work on rebuilding your credit rating, step by step.

Peter Gitundu Creates Interesting And Thought Provoking Content on Finance. For More Information On How To Deal With Bankruptcy, Read More Of His Articles Here DEALING WITH BANKRUPTCY If You Enjoyed This Article, Make Sure You SUBSCRIBE TO MY RSS FEED!

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Can I File Bankruptcy Again?

By Jay Fleischman

If you have filed bankruptcy in the past, and you've found yourself in financial trouble again, you're probably wondering if you are eligible to file for bankruptcy protection again. Filing for bankruptcy a second time is rarely a pleasant thought - but if you're struggling with debt, you need to know if this is an option for you.

In truth, there are no limits on how many bankruptcy petitions you can file; however, in order to receive a second discharge, you'll have to wait a certain amount of time between filings.
The amount of time depends on the type of bankruptcy you previously filed, and the type that you intend to file now. Here are the guidelines for bankruptcy filing eligibility:

· If you previously received a Chapter 7 discharge (which erased your debts, rather than restructuring them), you will have to wait 8 years before you can receive another Chapter 7 discharge. If your second filing will be for Chapter 13 protection (which reorganizes your debts), the waiting period is 4 years.
· If your previous bankruptcy was a Chapter 13, you'll have to wait 2 years before receiving another Chapter 13 discharge. If you're seeking a Chapter 7 discharge, 6 years must have passed since your Chapter 13 filing.

Keep in mind that the time periods are measured from filing date to filing date, not from discharge date to filing date.
Also, there are exceptions to all of these rules, so you may be able to file before the end of the waiting period in certain cases. If you are considering another bankruptcy, contact a bankruptcy attorney to find out if you qualify for an exception.

New York bankruptcy lawyer Jay S. Fleischman is the Managing Attorney of Fleischman Consumer Law Center. He has helped thousands of New York consumers end their bill problems and get back their good credit. Go to http://www.NewYorkBankruptcyHelp.com to learn more about your options, ask questions, and get more information.

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Bankruptcy Laws That Are Debtor Friendly - Why It's Easier For Congress to Throw Money Up in the Air

By Alex Wathen

My perspective may be different than in Washington, but as a San Antonio bankruptcy attorney I cannot agree with how things are done on Capitol Hill. Back in 2005 the Bankruptcy Abuse Prevention and Consumer Protection Act BAPCPA passed with the blessing of 74 senators both Republican and Democrat. Now that our economy has gone south it still seems to difficult for Congress to do the right thing. They do not hesitate to spend trillions of dollars on bailouts benefiting corporate America, yet they cannot seem to enact simple reforms that benefit regular Americans such as those who need to modify their home mortgages.

The mortgage modification bill only garnered the support of 45 senators, none of whom were Republican and a number of Democrats also defected. The stimulus on the other hand even got Republican votes. The problem is that the stimulus bills have mortgaged all of our futures throwing money up in the air and hoping it will land in the right place. The mortgage modification bill would cost the tax payers very little but would not only benefit consumers but it would also fix the mortgage industry and cut their losses from empty homes. The industry cannot fix itself because their hands are tied behind their backs due to contracts with the investors who bought securities backed by the mortgages.

In this morning's weekly radio address, President Obama emphasized the need to pass the credit card disclosure bill. This bill even though it sounds good is of marginal help to consumers. While it would put the breaks on retroactively changing interest rates on existing balances and require more upfront disclosures, it will only take a small dent of out the credit card debt of most consumers. Even if Congress would fail to pass it consumers would still get these benefits in the form of a regulation rather than a statute.

The question is why did Obama not stand up for the mortgage modification bill. Why did he not help line up the votes in the Senate. How could he not use any political capital to get the nine Democrats who voted no to vote yes including recent convert Senator Specter. How about the two moderate Republican Senators from Maine? Obama did not deliver passage of S. 61 because it was not a priority to him. Ironically that the one thing that could probably have made the most difference for the economy and the most people in distress was not a priority for our President. That is sad indeed.

Alex Wathen is a San Antonio bankruptcy attorney with offices in San Antonio and Houston. He is Board Certified in Consumer Bankruptcy Law by the Texas Board of Legal Specialization and serves on the Board's Bankruptcy Exam Commission. He also represents clients in a number of bankruptcy appeals. He frequently argues cases before federal courts of appeal and is a frequent speaker at seminars. You can follow him on Twitter at SABankruptcy, as well as FedCourtAppeal and FightTexTickets.

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Bankruptcy and Marriage

By Joseph Devine

When two individuals join in a marital contract, it is said that their two lives become one. Although this is true with the matters of the heart, it is unfortunately also true when it comes to finances. In some cases, a married couple may find themselves entering into complicated territory when bankruptcy is introduced into the equation.

Questions raised by marriage and bankruptcy often include issues about who is liable for which debts, what creditors can reasonably expect to collect, and what happens when bankruptcy is filed before marriage or after divorce. For many people, it is often unclear what effect bankruptcy will have on their finances when marriage is factored into the equation.

Bankruptcy Filed Before Marriage

If a person files for bankruptcy before marriage, the judgments against the individual typically stay with that person into marriage. The spouse's assets are usually unaffected, but any applications for joint credit will be affected by the past bankruptcy filing. Any actions requiring credit together will be affected by the bankruptcy, even though it occurred before the marriage.

Bankruptcy Filed During a Marriage

If a person is married but files for individual bankruptcy, the court will often look at the finances of the person who filed, but also those of the spouse. A married couple may also file for joint bankruptcy, during which the financial situation and assets of both parties is usually thoroughly reviewed.

Bankruptcy Filed After a Divorce

Divorce proceedings are typically complicated affairs, and such situations can be further complicated by bankruptcy. When a married couple divorces, joint property is often divided and is considered separate property in the future. Divorce courts will often determine if the two individuals are still personally liable for joint debts, and if not, the non-filing spouse is typically not required to pay anything.

It is essential that any person who is considering filing for bankruptcy examine their financial situation carefully and consult a legal professional about any questions that may arise. For more information regarding marriage and bankruptcy, visit the website of Boston bankruptcy lawyer Joshua Spirn & Associates.

Joseph Devine

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