Former President Thomas Jefferson, the author of the Declaration of Independence, although born into one of the wealthiest families in North America, was deeply in debt when he died.  Jefferson’s trouble began when his father-in-law died, and he and his brothers-in-law quickly divided the estate before its debts were settled. It made each of them liable for the whole amount due, and that turned out to be more than they expected. Jefferson sold land before the American Revolution to pay off the debts, but by the time he received payment, the paper money was worthless amid the skyrocketing inflation of the war years. British General Cornwallis ravaged Jefferson’s plantation during the war, and British creditors resumed their collection efforts when the conflict ended. Jefferson suffered another financial setback when he cosigned notes for a relative who reneged on debts in the financial Panic of 1819. Only Jefferson’s public stature prevented creditors from seizing Monticello and selling it out from under him during his lifetime. After his death, his possessions were sold at auction. In 1831, Jefferson’s 552 acres were sold to James T. Barclay for $7,000.

Whether you  live in or around Greenville, Spartanburg, or Anderson, South Carolina, whether you are rich or famous, poor or infamous, or even if you are the former President of the United States, bankruptcy can occur to anyone for a variety of reasons. It can happen to you.

Bankruptcy is defined as a legally declared inability or impairment of ability of an individual or organization to pay its creditors. Any event like a loss of job, illness, or divorce can cause you to face a bankruptcy. The fault can lie with a partner or an outside source, but if you do not have the income to pay your living expenses and all your creditors within a five year period, more than likely you are bankrupt.

The Associated Press claims that bankruptcies filed in the US in 2009 totaled 1.4 million, which includes both businesses and individuals. That would be a 300% increase since 2006. In South Carolina, there were 9,750 cumulative filings, up 15% from 2008. The trend knows no state boundary.

There are two types of bankruptcies- voluntary and involuntary. An involuntary bankruptcy occurs when a creditor forces you into bankruptcy by filing for legal proceedings, but the most common bankruptcy is the voluntary type where a business or an individual realizes their predicament and files for proceedings.

An individual can file either a chapter 7 or a chapter 13 bankruptcy. A chapter 7, commonly called liquidation of your assets, is normally the simplest and quickest form of bankruptcy. It is available to individuals, married couples, corporations, and partnerships. A chapter 13, commonly called a wage earners plan is available to individuals, and it enables those with regular income to develop a plan to repay all or part of their debts.

If you have an income and qualify for a chapter 13, there are certain advantages for filing one. These advantages are: to save your home from foreclosure; to reschedule secured debts; to provide protection for co-debtors; to consolidate your loans under one plan; to keep non-exempt property; to extend certain tax obligations, student loans, or other such qualifying debts; and to qualify for bankruptcy relief. Filing a chapter 7 will not afford you these various opportunities listed. So, if you have assets you want to keep, you currently have an income, and you want to try to pay your creditors as much as what is reasonable, you may want to consider filing a chapter 13 bankruptcy. But, if you do not have many assets, you do not have a mortgage, you just want to get out from under the burden of your debts, and you qualify, you may want to consider filing a chapter 7 bankruptcy.

If you have found yourself facing the fact your income will not support your living expenses and current bills, you may have to consider filing for bankruptcy. After all, it can happen to you. If this is the case, please consider allowing a bankruptcy lawyer to properly help you understand how these complex laws may apply in your situation. If you have determined that bankruptcy can and has happened to you, and you live in or around Greenville, Spartanburg, or Anderson, South Carolina, contact us today and we will help you find a bankruptcy attorney in your area that will help you with any questions you may have on bankruptcy law.

Most of the time, I hear very valid concerns about why a person would not file for bankruptcy. The number one concern I hear is that if they file, they will ruin their credit. Although ruining your credit is a valid concern, more than likely if you are considering filing bankruptcy, your credit is already damaged. Another valid concern is that filing for a bankruptcy means you are reneging on your bills that you have every intention of paying. So, if these concerns are valid, why would anyone file for a bankruptcy?

There are a variety of good reasons to file for bankruptcy. Due to no fault of your own, you may have gotten yourself into a situation that bill collectors are hounding you, your wages are being garnished, your utilities have been cut off, and/or you are getting foreclosure notices on your home mortgage. These are all good reasons to file for a bankruptcy. You may now ask the question, how could I get into a situation like these due to no fault of my own. You could have gotten ill and medical bills have piled up beyond your ability to pay them off, you or your spouse could have lost your job losing necessary income to maintain your lifestyle, or you could be experiencing a divorce. All of these things can happen through no fault of your own. When they do, bills and living expenses continue on. There are a variety of bankruptcies that you can file and filing for bankruptcy is not necessarily a cure all. The two most common bankruptcies filed by individuals are a chapter 7 and a chapter 13.

A Chapter 7 bankruptcy, commonly called liquidation of your assets, is normally the simplest and quickest form of bankruptcy. It is available to individuals, married couples, corporations, and partnerships. A trustee that is appointed by the court will gather and sell your non-exempt property, and he will use the proceeds from the sale in order to pay your creditors. Most chapter 7 cases are “no-asset” cases, meaning you do not have any non-exempt property for the trustee to sell.

A chapter 13 bankruptcy is the second bankruptcy available to individuals and is also called a wage earner’s plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor’s current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period “for cause.” If the debtor’s current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years. During this time the law forbids creditors from starting or continuing collection efforts.

The moment you file a  bankruptcy, a judge will order all collecting actions to cease, an important feature called the automatic stay. The automatic stay, applicable to all types of bankruptcy filings, means that the mere request for bankruptcy protection automatically stops and brings to a cessation certain lawsuits, foreclosures, utility shut-offs, evictions, repossessions, garnishments, attachments, and debt collection harassment. That means all creditors will have to go through a trustee in order to get any of their claims back.

Choosing the appropriate bankruptcy to file can be a complicated and tricky process. It means you will have to deal with any concerns you have about filing a bankruptcy. You will need a bankruptcy lawyer in order to properly understand how these concerns may apply in your situation. If you determine you are in need of relief from the stress associated with debt and you live in or around Las Vegas, Nevada, contact us today and we will help you find a bankruptcy attorney in your area that will help you with any questions you may have on bankruptcy law.

This personal bankruptcy story was posted on the internet in December of 2010 as a comment in a discussion on bankruptcy: “Well…After spending day and night for about the past 5 days, I put my petition in the mail this morning and should be there tomorrow. Now I can sit and worry if I screw anything up. In particular the Land Contract thing….another poster told me to get an attorney, which I don’t have $1700 and I had to file quickly because my wages will be garnished next week and I cant afford to have that. Anyway, since the land contract was never recorded, on the statement of intentions I filled out the unexpired lease part because I don’t really have any claim to the property. I’m hoping I made the right choice. I suppose I could always file an amendment. Good lord I’m driving myself nuts..lol”

The debtor in this personal bankruptcy illustration is filing his own bankruptcy. Anyone has the right to do just what this debtor did. You can go to the US Bankruptcy Court website at: http://www.uscourts.gov/FederalCourts/Bankruptcy.aspx , and they will offer you information and online help for filing. You can learn all kinds of things about how our bankruptcy system works at the website. What you must remember in visiting the sight is that the Court is obligated only to help you find information and answer questions you may have with the system. The Court is not obligated to give you advice on what they think you might do. As a matter of fact, the Court has just as much responsibility to inform the creditors of their rights under the law as they do any debtor. Filing for bankruptcy is a legal proceeding that is designed to protect both creditor and debtor and to allow the honest person or business to work their way out of a bad financial situation, or in some cases, to completely start fresh. The only way the Court can do that is by being impartial when it comes to our bankruptcy laws.

If you have good sound reasoning abilities, can read, and absorb a lot of detail, depending on the complexity of your own situation, there is a good possibility you can successfully and efficiently file for your own protection. But like the debtor in our illustration alludes, if you don’t really understand all the details, then you may be sitting yourself up for some sleepless nights worrying about any legal mistakes you have made in the process. There is also the possibility you may not have maximized every legal advantage because you did not know the right questions to ask. That is why it might be wise to invest in a bankruptcy attorney who can help you with questions related to your particular situation. The attorney will not only help answer your questions but can be your advocate in representing you through the process.

Many attorneys will provide you with a free consultation to see if you are in need of their services. Normally during the initial consultation, you can learn a lot about your situation, what to expect through the ordeal, and the cost associated with the attorney’s services.  Some attorneys will even work out a payment system you can afford. Regardless, you can check out more than one attorney to find the one you feel most comfortable.

There is no easy way out of a bad financial situation. They can happen to anyone, and the way out of them amounts to a lot of hard work and determination to overcome. Maybe you have found yourself in a difficult financial situation, and you are considering bankruptcy as an option. If this is the case, you are going to need a bankruptcy lawyer to properly help you understand how the complex bankruptcy laws may apply in your situation. So, if you determine you are in need of relief from the stress associated with debt, contact us today. We will help you find a bankruptcy attorney in your area that will help you with any questions you may have on bankruptcy law.