The mortgage crisis, the economic downturn, low housing prices, high unemployment rates, and high medical expenses – any one of these factors may have wreaked havoc on your financial situation. If you are drowning in personal debt, you may need a solution to your problems.

Many debtors have tried debt consolidation or they have withdrawn equity from their home to pay-off high interest loans, but it has not been enough to help them pay their weekly expenses and bills.

Bankruptcy may be an option for some debtors, but before filing for either Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, you should consider whether or not your debts can be legally discharged through bankruptcy.

Before filing bankruptcy in Texas, contact a bankruptcy lawyer who understands your Texas bankruptcy laws and can review all of your debts to make sure bankruptcy is right for you.

What debts are not discharged by filing bankruptcy?

Prior to filing for bankruptcy, you must determine your debt obligations and whether or not your debt can be discharged by filing in either Chapter 7 or Chapter 13 Bankruptcy in Texas. Below is a list of all debts that will not be discharged. If you file for Chapter 7 Bankruptcy in Texas, these debts will remain after the Texas bankruptcy court has discharged all of your qualifying debts. If you file for Chapter 13 Bankruptcy, these debts will be considered part of your Chapter 13 debt repayment plan and must be paid in full. Non-dischargeable debts include:

• Student loans which must be repaid unless the bankruptcy court determines that repayment will cause you “undue hardship”.
• Back child support payments must be paid.
• All penalties for personal injury or wrongful death claims must be paid if they stem from a DUI conviction.
• All fines for violating state or federal laws or penalties assessed for criminal restitution for a crime must be paid.
• All income tax debts from the last 3 years must be paid.
• All debts that were not listed on the bankruptcy schedules must be paid.

Debts for secured property that you wish to keep will also not be discharged by filing for bankruptcy. Under certain conditions, the secured property may be given to the trustee for them to liquidate and to use the proceeds from the sale to repay creditors.

If you qualify to file Chapter 7 Bankruptcy in Texas there are additional debts that may be determined non-dischargeable by the bankruptcy court if the creditor makes a challenge against the discharge:

• Debts you incurred on the basis of fraud.
• Cash advances or loans that were given within the last 60 days of filing for Chapter 7 Bankruptcy protection and are in excess of $1,150.
• Debts which are incurred from the malicious injury or willful injury to another person or property.
• Credit purchases of $1,150 or more for luxury goods or services made within 60 days of filing for Chapter 7 Bankrupty.
• Debts from embezzlement, larceny or breach of trust.
• Divorce decree debt or settlement amounts. The court may make an exception if they determine that you will not be able to pay them and the benefit you will receive is substantially higher then the harm to your ex-spouse.

Hiring a Bankruptcy Lawyer

For simple Chapter 7 Bankruptcy where you have no assets, it may be possible to file your own bankruptcy. If you have assets or property you wish to keep or if you need legal help to ensure your bankruptcy is correctly filed, a bankruptcy lawyer can help.

Bankruptcy lawyers understand bankruptcy laws in Texas and can make sure you include all of the necessary information on your bankruptcy forms, you understand bankruptcy laws and you get the information you need to file the right bankruptcy.

Human beings are complex bio-mechanisms wonderfully made, but not without flaws, “after all, we are just human.” Lawyers are human too.

According to a news article posted on the Orlando Sentinel website on May 18, 2011, a lawyer practicing law with Kaufman, Englett, and Lynd (KEL) has recently been barred from practicing in Bankruptcy Court in the Middle District of Florida until further notice.

The US Bankruptcy Court Judge also banned the firm from his court. Attorney William J. Sanchez, the banned attorney in question, has not had any disciplinary action in the last decade, according to the Florida Bar records.

In August of last year, Sanchez “filed a Chapter 7 bankruptcy on behalf of an Orlando couple. On Nov. 18th, Sanchez filed a motion for sanctions against Andreu & Palma PL, the law firm representing one of creditors the couple owed, for an alleged violation of federal bankruptcy laws. According to the motion, Andreu & Palma garnished the couple’s bank account, despite having been notified the couple had filed bankruptcy.”

Should Sanchez be barred from practicing bankruptcy law? He failed to appear in court despite a court order to attend the hearing. “Instead Andrea G. Dwyer, another lawyer with KEL, attended the hearing. Dwyer said Sanchez did not attend the hearing because he was attending to other matters, the order stated. It’s not immediately clear what those matters were, but KEL issued a statement saying in part that the firm is working to make amends with the Court.”

So, if you are considering filing for bankruptcy protection, you may want to do research to ensure you get the best legal representation. Trust is essential in the bankruptcy process.

Bankruptcy forums are full of people seeking answers about what their bankruptcy lawyers have or have not done. Many of the comments are indignant and accusatory. Their lawyer did not perform the job they expected, despite paying up-front money for their representation. Generally there was a lack of communication between the debtor and the lawyer.

Although I am sure not all lawyers are angels, I haven’t read one case where a blogger provided any blatant wrong doing on the part of their legal representative. Most complaints involved communication errors.

Why is this information important? Don’t be afraid to ask questions; be prepared to ask the right ones. Go to bankruptcy forum sites and learn about what others have experienced in bankruptcy.

This will give you valuable information on what to ask a bankruptcy attorney when you meet for the first time. Many attorneys will consult with you the first time for free or a small fee. The purpose for the meeting is to explore whether or not you need to file for bankruptcy and whether this attorney can provide you with the best service.

Most lawyers are hard working and take their job very seriously, but they are human. They are trained to communicate best when writing the details of the law. Get contracts and agreements in writing to eliminate some of the miscommunication errors. After all, lawyers are human too.

If you need relief from the stress of debt and you live in or around the metropolitan area of San Diego, California, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

Debtors, who have assets and an income that is more than the mean average for their state, may not be able to file for Chapter 7 Bankruptcy, but may, instead be required to file Chapter 13 Bankruptcy.

Chapter 13 Bankruptcy, known as the wage earner’s plan, is the second bankruptcy available to individuals. It enables individuals with regular income to develop a plan to repay all or part of their debts.

Under Chapter 13 Bankruptcy, debtors propose a repayment plan to make installment payments 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.

This personal bankruptcy story was posted on the internet in May of 2011: “If I do not qualify to file for Chapter 7 Bankruptcy, how can I decide if I should file Chapter 13 Bankruptcy or if I should attempt debt settlement? I may be able to get creditors to settle for 25% or less. Will Chapter 13 Bankruptcy significantly reduce the amount of debt I owe?”

This debtor asks the obvious questions which all debtors should consider before filing for Chapter 13 Bankruptcy. Debt settlement is a legitimate way to deal with your debts, but most debtors find it hard to negotiate with creditors.

Filing for bankruptcy gets your creditors to the negotiating table fast. Unsecured debt, even in Chapter 13 Bankruptcy, can be fully forgiven. Creditors know this and don’t want to wait to potentially get a fraction of what they are owed.

Many creditors don’t file claims to the trustee, who is responsible for the financial dispersion of the plan. When they don’t file a claim, they lose the opportunity to recover their debt. Every debtor must weigh these issues before deciding if they should use debt settlement to negotiate their debt.

Some bankruptcy lawyers will provide debt settlement services as part of their contract negotiations to file bankruptcy. They will try debt settlement first. If successful, the client usually saves the filing fees associated with bankruptcy, but if unsuccessful, the lawyer will file the bankruptcy on behalf of the client.

Filing for Chapter 13 Bankruptcy can be an affordable way to negotiate debt payments to your credits. It allows debts to be paid over a specified time. It protects your assets and prevents unfair collection actions.

Bankruptcy laws can be complicated and you may need legal help from a bankruptcy lawyer. If you need relief from the stress of debt and you live in or around the metropolitan area of Orange County, California, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

The housing crisis continues to be an obstacle to the economic recovery. Hundreds of thousands of homes continue to face foreclosure, but for a variety of reasons, mortgage companies are reluctant to foreclose.

If a mortgage company forecloses on a home they have the full responsibility of maintaining the dwelling. Adding additional dwellings to a mortgage company’s inventory does little to help the market. If the house sells at a loss this affects the net worth of the mortgage company.

Mortgage companies, who do not foreclosure, may have the benefit of having the homeowner continue to live in the home, and pay for upkeep insurances and taxes. The homeowner will also be responsible for paying any homeowner’s association dues. Technically, if the house is not foreclosed, the house still belongs to the homeowner, whether they are paying their mortgage or not. The homeowner’s association dues are the responsibility of the homeowner. Only filing for bankruptcy will temporarily prevent the association from collection.

The foreclosure deadlock may soon be coming to an end. According to a news article posted on the Huffington Post website on May 18, 2011, written by Shahien Nasiripour:

A set of confidential audits made by Washington DC federal auditors on the nation’s five largest mortgage companies accuse them of defrauding taxpayers in their handling of foreclosures on homes purchased with government-backed loans. “The five separate investigations were conducted by the Department of Housing and Urban Development’s inspector general and examined Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial, the sources said. The audits accuse the five major lenders of violating the False Claims Act, a Civil War-era law crafted as a weapon against firms that swindle the government. The audits were completed between February and March. The internal watchdog office at HUD referred its findings to the Department of Justice, which must now decide whether to file charges.”

According to the article, the five firms have already offered $5 billion to compensate for all the claims. All 50 state Attorney Generals have jumped into action making claims on behalf of their states. Some speculate the firms will have to pay as much as $20 billion before it is all said and done.

All of the government entities involved will certainly fight for the revenue, but others argue the money should be returned to the debtors who lost their homes in the illegal foreclosures.

Rather than punishing banks for their misdeeds, the current administration is focused on helping troubled borrowers, hoping to stem the tide of foreclosures and increase consumer confidence.

Many state officials want the firms fined and the money paid to the state, No one knows who will win the battle for control of the funds, but it is unlikely that the funds will help with the current foreclosure crisis.

If you are facing foreclosure filing for bankruptcy may offer you protection. If you need help filing for bankruptcy, contact a bankruptcy lawyer.

If you need relief from the stress of debt and you live in or around the metropolitan areas of Riverside or San Bernardino, California, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

 The foreclosure backlog has created one obvious advantage for some homeowners; they may be able stop making mortgage payments and pay other bills. The backlog has created a disadvantage to some homeowners who have loans on homes with home owner association (HOA) dues. The homeowners may want to move on with their lives even to the point of being willing to surrender the house, but they won’t be able to escape the responsibility of paying the HOA dues. Surrendering your house won’t end your responsibility to pay the HOA. Only foreclosure and title transfer can end your responsibility to pay the dues.

In addition, filing for bankruptcy will not always end your responsibility to pay some of the HOA dues. 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, stops certain lawsuits, foreclosures, utility shut-offs, evictions, repossessions, garnishments, attachments, and debt collection harassment. Creditors can no longer contact a debtor directly but must go through the U.S. Bankruptcy Court trustee in order to deal with their debtors.

If you are filing Chapter 7 Bankruptcy, and your bankruptcy has been discharged, the dues to that point might be forgiven, but HOA dues occurring post bankruptcy discharge are your responsibility as long as the title to the home has not been transferred. Surrendering the home does not transfer the title, only a foreclosure can do that.

Some homeowners who have surrendered their homes are remaining in the homes because of the backlog, and they look at paying the HOA dues as a type of rent on the property. But if you have decided to move on and out of the home your still own, to avoid harassment or the chance of being sued, it is probably wise to maintain HOA payments until the house is no longer in your name. Remember, any new HOA charges after your bankruptcy has been discharged are collectible. With a judgment against you over any charges like HOA dues, and in a state that permits garnishment, your wages could be garnished each month for the dues.

For homeowners who who want to surrender their home, they should avoid getting caught up in the HOA trap if possible. Think before you surrender. With the inventory of homes on the market not currently selling, it may be years before your mortgage company will foreclose on the property. There is no advantage for most mortgage companies to foreclose because when they do, the HOA dues are an added expense for them which is not recoverable when they sell the home. So, until foreclosure comes, you might want to consider enjoying the property almost rent free.

If you are considering surrendering your home due to loss of income, unexpected medical bills, or a divorce you may need the help of a bankruptcy lawyer. As a general rule of thumb, you are financially bankrupt if your current sustainable income will not pay all of your living expenses, pay interest on outstanding loans, and reduce some of your principal on those loans while paying on them for five years. The bankruptcy formula should include mortgage payments and HOA dues.

If you need relief from the stress of debt and you live in or around the metropolitan area of Boston, Massachusetts, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

According to a recent analysis made by Trans-Union, one of the big 3 credit reporting agencies, the analysis showed 30.4 percent of subprime households were behind on their mortgage payments but current on their credit card payments. Only 12.3 percent of consumers were late on their credit card payments but up to date on their home loans.

Why would homeowners be more concerned with paying their credit card debt than ensuring they have a place to live? Strangely enough, a significant number of Americans are willing to lose their houses but save their possessions.

Traditionally, home loans have been paid first, but with the current housing crisis many families owe more than their home is worth and seem less willing to sink more money into their devalued home. It has become easier for homeowners to rationalize defaulting on their mortgage, especially if the mortgage payment is eating up a large percentage of their income. If the homeowner has little equity in their home they may not lose much if they give up their home.

Foreclosure notices may flood the homeowner’s mail box after a few missed payments, but a foreclosure may stretch over months or years. Homeowners may take advantage of this time to catch up on other types of debt payments. Credit cards can often help satisfy the immediate demands for food and utilities, so it makes sense most consumers, who are financially strapped, will try to keep the credit card balances paid.

What was not reflected in the Trans-Union analysis is the relationship between those who are willing to give up on their mortgage responsibilities and bankruptcy. Foreclosures, although they can be legally drawn out, are inevitable. There will be a time, if you have defaulted on your mortgage, when you will be evicted from your home.

The mortgage companies do not forgive the deficiencies when they unload the foreclosed home. Depending on your state, the mortgage company or debt collection agency might have the legal authority to collect the deficiency judgment. If successful, they could garnish your wages.

Filing for bankruptcy protection may protect homeowners from wage garnishments and home foreclosures. If you are facing a home foreclosure, or uncertain creditor action and you need relief from the stress of debt, contact a bankruptcy lawyer. We can help debtors and homeowners who live in and around the metropolitan area of Detroit, Michigan. Contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who can answer your bankruptcy questions.

According to the Office of Advocacy in the U.S. Small Business administration (SBA), approximately 2.6% of small businesses have filed for bankruptcy in the past seven years. American Bankruptcy Institute data supports these findings and states that more than 323,000 businesses filed for bankruptcy from 2004 through 2010, and more than 39,000 of them were in California. This state’s share of all U.S. business bankruptcies has increased from 12.4% in 2007 to 15.7% in 2010, an indication that the recession hit California businesses harder than other businesses nationwide.

Small businesses can file for bankruptcy protection under Chapter 7 Bankruptcy, Chapter 11 Bankruptcy or Chapter 13 Bankruptcy. According to an SBA study, about 70% of businesses that file under any of these sections either emerge as a reorganized business or liquidate and start a new business, thus enabling small businesses to contribute again to the U.S. economy and job market. 

Chapter 7 Bankruptcy, commonly called a “liquidation bankruptcy”, is the simplest and quickest form of bankruptcy. It is available to individuals, married couples, corporations, and partnerships. A court-appointed trustee gathers and sells the debtor’s non-exempt property, and uses the proceeds from the sale to pay the creditors. Most Chapter 7 Bankruptcy cases are “no-asset” cases and the debtor will not have any non-exempt property for the trustee to sell. 

Chapter 13 Bankruptcy, known as the wage earner’s plan, is the second bankruptcy available to individuals or businesses. It enables individuals or a business 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 installment payments 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 the plan, creditors may not start or continue collection proceedings. 

Chapter 11 Bankruptcy, used primarily for business bankruptcies, is very similar to a Chapter 13 Bankruptcy but the trustee can run the daily business operations of the business. In Chapter 11 Bankruptcy, unless a separate trustee is appointed for cause, the debtor, as debtor in possession, acts as trustee of the business. 

If you have business that is in financial trouble, you may need to consider bankruptcy protection. Bankruptcy laws can be complicated, and you might need a bankruptcy lawyer to analyze your financial situation. 

If you need relief from the stress of debt and you live in or around the metropolitan areas of Riverside or San Bernardino, California, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

According to online news reports, for the first time we are seeing a large number of seniors filing for bankruptcy. Before 2007, the elderly did not frequently file for bankruptcy protection. Job loss remains the biggest reason for filing for bankruptcy but now seniors entering retirement are also filing for bankruptcy. We may see a higher increase as the first Baby Boomers reach retirement age in 2012.

Why are seniors filing for bankruptcy? They may be too old to continue to work at their current level and as their income reduces, they may be unable to maintain their current lifestyle. Other seniors have lost their retirement through various stock crashes and the housing market crash. This loss of income and investments may make it difficult for them to pay their car payments and high credit card debts. 

When the Baby Boomers begin to retire, they will do so in droves. There were over 70 million babies born between 1946 and 1964, representing the “Baby Boomer” age. Baby Boomers control over 80% of personal financial assets and more than 50% of discretionary spending. They are responsible for more than half of all consumer spending, buying 77% of all prescription drugs, 61% of over the counter medication and 80% of all leisure travel. When these people retire the economy may begin to slow. 

I was born in 1946, and I understand the current plight of the Baby Boomers. I have lost and gained my investments twice in the stock crashes, and I am currently working on my third recovery. I do not want to have to rely on Social Security Retirement benefits. It is not enough to sustain me, and I am not sure it will be solvent and available to me. 

A significant number of Baby Boomers face the prospects of bankruptcy. Many of us are one heart-beat away from bankruptcy. We still work, but any unexpected medical crisis may make that impossible. As for me, my current retirement includes paying off my house in four years, living on Social Security, a very modest retirement account, and working part time to supplement my retirement income. Any unexpected crisis and my wife and I may have to file for bankruptcy protection. 

If you are a senior or Baby Boomer who is facing bankruptcy, you may need legal assistance from a bankruptcy lawyer. If you need relief from the stress of debt and you live in or around the metropolitan areas of Greensboro, Winston-Salem, or High Point, North Carolina, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

This personal bankruptcy story was posted on the internet in May of 2011, 

“Bankruptcy has a negative stigma, but it is necessary for some people. I lost my job with a major pharmaceutical company in the spring of 2009. My husband and I made $90,000 per year. After losing my job and taking whatever job I could get, we were making just around $47,000. Our mortgage payment alone cost 75% of our income. We had a $520 per month truck payment, no consumer credit debt, and we had all of our housing, food, and student loan payments to pay. 

We knew we could not afford our home. We could not sell our home for what we paid, and we spent all of our emergency and savings within the first 6 months. We accumulated about $8,000 in credit card debt due to emergencies. We stayed in your home until February of this year (2011) and after two years of trying to stay afloat, we decided in 2010 to file bankruptcy and foreclose on our home. 

We now live in a 1200 sq. foot apartment for $750 per month, we pay only $250 per month for our vehicle, our utilities have greatly decreased, and we are able to save money. Once our debt is discharged we will begin rebuilding our credit, which we are already doing by reaffirming our vehicle payment and paying my student loans. 

Do not let anyone tell you that bankruptcy is never the answer; it is simply not true. It needs to be used properly and you need to understand its impact. People automatically feel you will completely destroy your credit score (very true) BUT and a big BUT, if you are paying your mortgage, vehicle, and credit cards late your credit is already destroyed! If you feel bankruptcy might help you, seek the advice of a lawyer and understand the facts.” 

This debtor has given some very sound advice to those of you who are bankrupt. Even though filing for bankruptcy carries a stigma, bankruptcy is not the end of the world. Filing for bankruptcy is a legal proceeding designed to protect both creditor and debtor and to is designed to allow debtor to work their way out of of a poor financial situation. 

Bankruptcy is certainly a legitimate and necessary move for many who find themselves bankrupt. You have the right to file for bankruptcy protection. Bankruptcy is a tool used by our society to alleviate a debt between two parties. 

Like the debtor suggested, if you feel you are bankrupt, contact a bankruptcy lawyer. If you need of relief from stress and debt and you live in or around the metropolitan areas of New Haven or Meriden, Connecticut, contact us at www.BankruptcyHome.com . We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

Individuals naturally want to beat the system. Inevitably, someone always asks a question in bankruptcy forums regarding how to beat the system.

This personal bankruptcy story was posted on the internet in May of 2011, “I’ve been an employee at a consulting company for 11 yrs. This company has some employees and contractors working for them. If I was self-employed instead of an employee, would 1099 earnings be subject to wage garnishments for unpaid credit card judgments?”

This debtor wants to know if he can “beat the system” by converting his employment status to self-employed. The company already hires contractual services for the same work. Assuming the exchange is doable, what types of legal challenges are involved?

First, if the debtor has no legal employer (except for himself) it will be difficult for a creditor, who has won a lawsuit, to garnish his wages. Why, because there are no wages to garnish. The former wages of the employee would have been converted to contractual income and attaching a levy on that type of income would be difficult.

However, a successful creditor may place a levy on any of the debtor’s accounts; if the creditor can find them. In addition, the creditor can ask the court (where the lawsuit was filed) to attach liens on the debtor’s assets. A lien could be collected with the interest accrued at the time of the sale of asset, especially if that asset has a title or deed. Creditors most likely would not be able to foreclose or repossess the assets without a court order.

Armed with judgments, collection agencies pose a problem for the debtor. Some aggressive collectors in non-garnishment states have attached liens on vehicles, seized the vehicles, and held them until their bills were paid. There may be legal ramifications for these actions, but possession seems to be nine-tenths of the law.

Trying to beat the system can be a costly and nerve-racking. Unless your telephone number is unlisted, expect your phone to ring. Harassment is common under these circumstances, and at some point, you may need to ask yourself if it is worth the effort to beat the system.

If you want to beat the system, then you should learn to use the system to your fullest advantage. Filing for bankruptcy is the ultimate weapon you have to prevent wage garnishments. Filing a bankruptcy will cause all collection actions to cease through an automatic stay. Automatic stays will automatically stop certain lawsuits, foreclosures, utility shut-offs, evictions, repossessions, garnishments, attachments, and debt collection harassment. Once a debt has been discharged through bankruptcy, the creditor can no longer legally seek payment for the debt.

If you are considering filing for bankruptcy, you may need help from a bankruptcy lawyer. If you need relief from the stress of debt and you live in or around the metropolitan areas of Little Rock or North Little Rock, Arkansas, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.