In today’s economy, bankruptcy is no more surprising as people who were financially very strong in their whole life have fallen into the pit of bankruptcy all of a sudden. Foreclosures are going on everywhere, and more and more people are filing up the paperworks due to the downfall of the economy. In such a market, the job of a bankruptcy attorney is of very high demand. Bankruptcy Plano style is now an overwhelming occurrence. There are many financial organizations in which professional help is being offered to help people in need.

You should know exactly what you are planning to do if you are considering the bankruptcy option. Many people believe that once you do bankruptcy, you are no more able to live your life in a normal manner. You can live your life in the same way like you used to live earlier, but you need to have a proper control on your finances. Once you do a bankruptcy, it just changes your lifestyle, not your life. Your lifestyle changes because now you won’t buy the same things like you used to earlier. It can be a little traumatizing to some people but this change is definitely for good reasons.

Under what conditions will someone want to file for bankruptcy? When you are considering a bankruptcy, you are showing to the government that there is no way you can pay your bills back and you need help in covering everything to continue living normally. If you are mainly worried about your unsecured debts, there are different programs through which you can make manageable payments and take care of everything yourself. But if you have a bankruptcy status, it can be quite difficult to cover your necessary bills and other luxuries that you enjoy.

In order to avoid bankruptcy, you can follow few things so that it does not hinder you. It is very important to have a savings account that can be used only during emergencies. It can easily take care of different emergency situations like the car troubles or large unexpected bills. If you do not have this habit of saving emergency funds, then you must start it immediately.

Bankruptcy can often sound scary, but it is generally manageable if you are getting consultation in the right direction. It may be very embarrassing to those who have never faced monetary crisis but you have to accept the fact. Bankruptcy is now a common trend from bigger corporations to smaller individual families. But don’t be worried, it just needs a little planning and patience and you will be able to come out of this stigma.

Visit http://www.uscourts.gov/FederalCourts/Bankruptcy.aspx for more information regarding bankruptcy.

Bankruptcy is such a taboo subject in American society that most people don’t know much about it besides its role in Wheel of Fortune game play. Because of the lack of discussion there is regarding bankruptcy, many people carry with them ideas about the process that do not reflect reality. In order to clear out the confusion for our readers, we contacted Macey Bankruptcy Law who were so kind as to provide us with the following list of seven major misconceptions about filing for bankruptcy:

Misconception #1: Bankruptcy is a death sentence to credit.

Indeed, traditional lines of credit are likely to be inaccessible by you post-bankruptcy. But the process will make you the target for high-interest credit card providers who will start sending you applications almost immediately. These can be key to rebuilding credit, but also dangerous to those just coming out of filing for bankruptcy.

Misconception #2: Bankruptcy causes you to lose everything.

One commonly held belief about bankruptcy is that by committing to the process you forfeit ownership of everything you own. Every state’s law is a little different, but a basic rule of thumb is that your home, household goods, and clothing are immune from government seizure. Your car can also be excluded, assuming it’s valued less than a certain set amount.

Misconception #3: Bankruptcy removes all debts.

Government-guaranteed or government-issued student loans, unpaid alimony and child support, and payments decided in court are all going to stick with you post-bankruptcy. If you borrowed from Uncle Sam to go to school or ripped off Aunt Edna to pay for a trip to South America, don’t expect bankruptcy to save you from paying them back.

Misconception #4: Bankruptcy is a one-time deal.

The minimum time one can re-file for chapter 7 bankruptcy is eight years, while re-filing chapter 13 requires a two year wait. If you plan on going from one to the other, the wait is four years. One way or another, bankruptcy can legally be filed a number of a times by a single party. Whether that’s a smart way to go through life is a different story.

Misconception #5: Bankruptcy is only available to a select number of people.

You may be surprised to learn that bankruptcy law is directly controlled by Congress per the Constitution. As such, the specifics over the years have maintained a strict adherence to the founding principle that bankruptcy should be available to anyone with the financial burdens that justify its existence.

Misconception #6: Bankruptcy does not include taxes.

It’s not easy having your back taxes forgiven during bankruptcy, but it’s not impossible. The tax burden needs to be no older than three years, and you better have every shred of documentation needed to back up your filing. The success rate is minimal, but many bankruptcy lawyers say it’s worth a shot, especially if you owe enormous amounts of money to Uncle Sam.

Misconception #7: Bankruptcy can cover premeditated bad purchases.

Using credit cards or committing other forms of borrowed spending with the intention of having it wiped clean by bankruptcy is a serious act of fraud and is not warmly welcomed by those entrusted with processing your claim. In fact, these people specifically look for signs of such criminal activity, so there’s absolutely no point to ever attempt such a short-sighted and selfish strategy.

Not much is said about the issue of bankruptcy because those who have filed don’t want to talk about it and those curious to know more don’t want to come off as being unwise with their money. The result is a lot of misinformation and misconceptions floating around in peoples minds regarding the process of bankruptcy. Whether you’ll never need to file or are debating doing do right now, it certainly pays to be aware of the facts when it comes to bankruptcy in the United States.

If you have decided of filing for bankruptcy because of overwhelming debts and there are no ways to come out of this mess, make sure that you are fully aware of its short term and long term consequences. You need to ascertain which type of bankruptcy is right for you. Chapter 7 bankruptcy will stay on your credit report for ten years. Qualifying for any new credit after filing for bankruptcy will be quite tough in the initial years. You never know if any kind of emergency shapes up in the future and you might need a lot of money. Be well prepared before you choose this option. Here are a few things to know before filing for bankruptcy.

Common bankruptcy types: In total, there are four types of bankruptcy. The most common is the chapter 7 bankruptcy which is liquidation or straight bankruptcy. In this process, all your assets and properties will be liquidated to pay off the existing debts. Another type of bankruptcy is chapter 13 bankruptcy in which a repayment plan is set for a certain period of time, usually within 3 to 5 years without liquidation of your assets and properties. Before filing for either type, you have to qualify in the means test. In most cases, people have to file for chapter 13 bankruptcy because they do not qualify in the means test and makes it difficult to file for chapter 7.

Hiring a lawyer: Many people wish to file for bankruptcy without hiring any attorney for assistance. While this is possible, it is always suggested to take the help of a professional bankruptcy attorney so that the legal complexities can be taken care of immediately and the filing process gets easier. If you cannot afford to pay the attorney fees, look for some free legal services in your area. You may contact your local bar association for information regarding their “pro bono”. You may also visit the nearest law school or legal clinics in your area.

Filing without an attorney: Partnerships and corporations require a lawyer to file for a bankruptcy case. Individuals can represent themselves without an attorney. Because of the varied state laws and the complicated system, sometimes the filing process without an attorney can often get too difficult. If you are not fully informed about the process, your individual rights may get compromised with one misstep. Besides, you may lose the legal protection and the benefits if proper documents are not filed correctly.

Credit counseling: Before filing for bankruptcy, you will have to undergo credit counseling with a government approved credit counseling provider within 180 days before the bankruptcy case is to be filed. Not filing the required documents will cancel the bankruptcy case.

Your personal finance will be in good shape if you have the right knowledge and skills to manage it. Not having the proper management on your financial decisions can go to the extent when you will consider filing for bankruptcy. And if you have already decided for it, you need a good attorney who specializes in filing chapter 7 bankruptcy cases.

Filing for Chapter 7 bankruptcy is an important step and it must be done correctly. There were major changes made by the congress in the bankruptcy laws few years ago. Due to the changes, the filing process has got more complex and requires a good lawyer. Some lawyers pointed that the bankruptcy laws have got so complex that they need to work very hard to understand it. Judges may still struggle to interpret it years from now.

An attorney is required in the process of filing chapter 7 bankruptcies. Few years back, it was possible to do it on your own, but nowadays, this is not feasible anymore because of the changes in the laws.

While you are dealing with an attorney, make sure that you explain your financial situation very thoroughly so that he can build the best case possible. Browse through the internet and read various articles to stay updated about the bankruptcy process so that you have a better understanding with your attorney when he is preparing your case. Get all your financial records together so that you know exactly where you stand and help the attorney to prepare your case.

When people are overwhelmed by their existing debt related problems and have no ways to come out of this stress, filing for bankruptcy is considered to be the best option, even though it will severely impact your credit scores. Before filing for bankruptcy, you may consider a debt consolidation or a debt settlement program if one of these programs can solve the debt related problems. If all possible options have failed, then bankruptcy is the most beneficial choice. It’s very important that you get the accurate information regarding the process of filing bankruptcy.

Bankruptcy is decided at a certain point of time while you are deciding to settle the debts with your creditors or while you are incapable to meet the financial obligations. There are different types of bankruptcy and for that reason, it is especially vital to be acquainted with the fine points concerning assorted types and the most beneficial type to select. Filing for bankruptcy has its own set of advantages as well as disadvantages, so the individual should be well aware of his requirements according to his current situation.

Most of the people in debts either file for chapter 7 or chapter 13 bankruptcy. Chapter 7 is acknowledged as insolvency schedule. The assets of the individual are liquidated in this process and the rest of the balance is discharged. You can be free of all your debts within 4 to 5 months. Chapter 7 assists debtors with serious insurmountable debts.

Chapter 13 bankruptcy is another type of bankruptcy where a certain payment plan is worked out with the help of the bankruptcy trustee. This type of bankruptcy is good for those people who want to re-organize their pending debts, with a fixed payment plan over a certain period of time. You will not have to liquidate your assets in this type of bankruptcy. Before you apply for chapter 13, make sure that you have a good source of income so that you can pay off your debts in a payment plan in addition to dealing with the costs. Browse through the internet and you will get adequate knowledge on different types of bankruptcy and ways of filing for it.

Bankruptcy is a legal process governed by the federal laws that will discharge most of your existing debts with the creditors. There are some debts that will not get canceled in the bankruptcy process. If the most of your debts are the ones that cannot get legally discharged, will it be still worth filing for bankruptcy and have the blemish remark stay on your credit report for seven years?

When a debtor files for bankruptcy, the creditors are given a chance to recover a certain portion of their money as designated by the court. If the debtors do file for bankruptcy, creditors are legally required to stop all collection attempts which provides a temporary relief to the individuals. The real problems start after the bankruptcy is filed. It will be pretty tough to get new credit in the beginning years and if any lender offers you new credit, you will be charged very high interest rate on the amount borrowed. Your employer may not allow you to continue the job and new employer can refuse to hire you in his company. It will be difficult to find a place to live if you do not have a home.

One of the possible ways to avoid bankruptcy is to sell your assets and see if you come up with some money to pay off the existing debts. If you are going to file for bankruptcy, the assets will be liquidated anyway. It will be a good decision to arrange some money by selling your assets and repay your creditors.

If you own a car, try selling the car if it’s worth, and buying a less expensive car. You may be able to use the rest of the money towards paying your existing debts. If possible, try to have one car in the family if you have more than one. You will be surprised to see how much money you can save here.

If you own a home and have a mortgage, consider selling the home to live some place less expensive.

Sell any belongings that you don’t need. This will help you to arrange some money to pay off your existing debts without having to file for bankruptcy.

Increase your income: It is very important to have an extra source of income in order to relieve some of the money pressure that you are experiencing. For this, if you have to do a second job, do not hesitate. You need to be aware that you’re doing all this for a temporary period of time. Once your existing debts are paid off, you will have a better control on your life and you won’t need to take so much stress and fall into debts.

There are many ways to earn extra money like getting a job at night if you are working in the daytime. You can also find jobs on the weekend, or finding ways to earn money from home on your computer or selling some personal items on the ebay.

You can also find odd jobs like doing something for your neighbors (lawn mowing, dog walking, errand service), writing articles for the website owners who pay their content writers. Everyone has some experience and skills that can be used to make some decent money.