This personal bankruptcy story and question was posted on the internet in 2011 in a bankruptcy discussion: “The main reason we are filing is because of a foreclosure on my husband’s old home which has been a rental. Our bank has sent notice to foreclose. My husband’s income cannot be garnished, his name is not on our primary residence and my name is not on any of it…I know an advantage would be that we could “cram down” our vehicle. We do not have a 2nd mortgage, nor do we have any late payments…Would you file if you were judgment proof?”

The debtor in the personal bankruptcy illustration wants to know whether to file or not. She mistakenly thinks there is such a thing as “judgment proof,” but the reality is, the only way you can become judgment proof on a debt is to get the debt discharged through a bankruptcy filing. A discharge means the creditor can never legally try to collect on the debt again. Therefore, in effect, you would be judgment proof from collections on that particular debt or debts.

What the debtor really should have asked is should you file a bankruptcy if you are collection proof? Being collection proof means you do not have any significant assets for a creditor to come after. When you are collection proof, a judgment will not help the creditor because there is nothing for them to get.

If you do have assets, a judgment from a lawsuit is a very powerful tool for a creditor to obtain. It legally enables the creditor to go after your assets by seizing, attaching liens, garnishing wages, or forcing you to give up your assets in a legal manner to satisfy their claim against you. In addition to the amount owed the creditor, judgments often award the creditor interest, some penalties, and some fees. All of these awards depend on which state you live and in which court the judgment was rendered.

Whether or not a you file for bankruptcy is ultimately your decision to make. No one can make the decision for you, but you can make an informed decision by learning about bankruptcy laws or consulting with a bankruptcy lawyer.

If you are truly collection proof and can tolerate the harassment that goes along with collections, it may be unwise to file for bankruptcy unless you have something to protect. After all, bankruptcy is all about protecting your assets.

After you file a bankruptcy, it may be up to 8 years before you can file again. So if you file a bankruptcy without need, you are making yourself vulnerable to creditors that can obtain judgments in the future. Many say the best time to file bankruptcy is when you are seeing the light at the end of the tunnel. That means you have a job, you are beginning to start financial recovery, and you need a fresh new start, free from all the collection activities.

If you determine you are not collection proof and feel the need to file for bankruptcy, contact us here at www.betterbankruptcy.com , 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 question was posted on the internet in 2011 in a bankruptcy discussion: “I keep reading about frozen bank accounts, and I am getting really worried. My family would not be able to survive without our money to pay bills and buy groceries. Are accounts automatically frozen?”

When you file for bankruptcy protection, the filing information is placed into the filing system of the U.S. Bankruptcy Court Clerk’s Office and becomes public information. Public Information Vendors collect the information and normally sell it to Credit Bureaus who then place it on their credit reports.

Most banks have access to the information because they subscribe to Credit Bureaus, and the subscription entitles them to run credit checks on potential or current customers. Even though banks have the ability to check your public credit records any time they feel the need, most banks will not access the information without a good reason like checking your credit for a loan.

Therefore, it is not likely that a bank will know you filed a bankruptcy unless they are one of your listed creditors or a part of non-exempt funds. Even if they do find out about the bankruptcy, each bank has its own policy about freezing accounts. There are a couple of banks notorious for freezing accounts under bankruptcy conditions, but many of the others select not to do so.

What some banks like credit unions are known for doing is taking cross collateral and using it to pay off a loan if they learn you have filed a bankruptcy. Cross collateral is any other account you may have with a bank or credit union while owing them money on a loan, secured or not.

A good rule of thumb in selecting a bank before you get into financial trouble is to ask about their freezing and cross collateral policies. Asking after you have filed a bankruptcy would probably raise a red flag. If you are concerned what the policies of your bank are, you might want to move your money to another account in an institution that has friendlier policies.

You also might have the support of the bankruptcy court when dealing with your account. You will have to list all of your accounts with the court, and depending on whether of not the funds in a bank account are exempt property in a Chapter 7 bankruptcy will determine how the court deals with the account.

If part or all the property is non-exempt, the bankruptcy court trustee will seize the account and distribute the non-exempt funds to your unsecured creditors. If there is exempt money as part of the funds, you most likely can get the trustee to distribute the money directly back to you, and you can place the money in any bank you want, or not.

If the bankruptcy court trustee and judge have been made aware of a bank account that has been frozen, there is the possibility the court will use the automatic stay to force the banking institution to unfreeze an account, allowing the full effects of the bankruptcy proceeding to take place.

Whether or not your banking account is frozen, bankruptcy laws can be very complicated. It is a good idea to consult with a bankruptcy lawyer before filing. Contact us now, and we will help you locate a bankruptcy attorney in your area.

Sean Quinn filed for personal bankruptcy protection in Belfast, Ireland, on November 11, 2011. Quinn, according to Forbe’s Magazine, was “one of the wealthiest men on the planet, ranked 164^th in the world at the peak of his fortune.” His fortune was reported to be in excess of $6 billion dollars at the time of its peak.

When Quinn filed for bankruptcy, he listed debts owing the Irish Bank Resolution Corporation a sum of $3.85 billion in personal debts and an additional $1.85 billion from the Quinn Group, his family business.

Quinn first started the family business in the 1970s selling sand and gravel from a quarry off his father’s farm. Eventually, he parlayed the modest receipts from the quarry into other successful adventures resulting into a multi-billion dollar conglomerate that included mining, manufacturing, real estate, and insurance companies.

The financial empire Quinn built began to come apart during the 2008 financial crisis. He heavily invested in Irish real estate during the boon and leveraged derivative accounts associated with the Anglo Irish Bank, eventually owning up to 25% of its stock. When the stock market crashed and the real estate market plunged, all during the same time frame, the losses were more than Quinn could absorb. He was bankrupt!

According to news reports, Quinn accepted a certain amount of the responsibility for going bankrupt, but he also accused the lending bank and the Irish Government as having culpability in contributing. All agreed that the economy also played a major role in contributing to the bankruptcy.

This story serves to illustrate to the rest of us that bankruptcy can happen to anyone including the extremely wealthy. There are a wide variety of reasons people can go broke. The reasons range from unlucky events caused through no one’s fault to both sides of a financial agreement contributing to its failure.

Personal and business lending contracts are complicated legal instruments that require a risk from both parties entering into the financial relationship. Either side can make a mistake in calculating what they think their risk is in entering the agreement, and losses on either side can occur. Although these risks can be reasonably calculated, mistakes can still be made.

On the other hand, there are events that can happen to cause a bankruptcy that are just out of your immediate control. One of such is the economy. No one can accurately predict the fate of the world’s economy because there are too many factors that can change the conditions of the economy overnight. As an example, cataclysmic weather events, war, and energy crisis can have an effect on the economy of a country overnight.

Other events happening out of your control that can effect a bankruptcy can be personal medical conditions, divorce, sudden loss of income, catastrophic events, and a variety of other circumstances.

Bankruptcy can occur to anyone regardless of your status and through circumstances out of your control. When it does, it can create a very convoluted situation that might require a bankruptcy lawyer to help you untangle the mess. Contact us today, and we will help you find a bankruptcy attorney in your area.

This personal bankruptcy story was shared in 2011 on a bankruptcy forum website: “When granted noncollectable status, they tried but were unable to seize my union pension I receive in the form of holiday checks once a year. Twenty five percent is being withheld from the pension check I receive by the union for tax purposes…What will happen to the pension account as a result of discharged tax debts if I decide to file a Chapter 7 bankruptcy?”

A Chapter 7 bankruptcy is a type of bankruptcy that can be filed by individuals, corporations, married couples, and partnerships. When filed, a bankruptcy court trustee will take your non-exempt assets and liquidate them to pay off as much of your unsecured debt as they can. What debt is not paid off by the sell of your non-exempt assets will be discharged at the end of the bankruptcy process.

Pension funds are not normally seized or liquidated in a Chapter 7 bankruptcy. A union pension is treated like any other type of retirement account in the process. State and federal laws determine how retirement accounts are affected. For the most part under federal exemption laws, all retirement account funds are exempt from bankruptcy liquidation if they are exempt from taxation under sections 401, 403, 408, 414, 457, and 502 of the Internal Revenue Code.

That means a bankruptcy trustee cannot seize revenues paid you by the pension plan to satisfy unsecured debts if the retirement revenues fall under those IRS guidelines, but depending on the state you live, the affects on your retirement plan may vary if the revenues do not fall under the guidelines. There is normally no cap placed on the amount you can receive in retirement when your retirement account is exempt.

On the other hand, the pension money remaining in the account that has been withheld for tax purposes is treated differently. Discharged tax debts can only be tax debts that have been discharged under certain criteria. Taxes other than income, such as payroll taxes or fraud penalties, cannot be discharged. To discharge a tax debt, the tax return must have been originally due at least three years before you filed for bankruptcy.

In the case of the debtor who has asked the question in the illustration, the taxes in question are withheld income taxes the pension plan is required to withhold by IRS rules. These are current withholding taxes and would certainly not be subject to discharge in a Chapter 7 bankruptcy case or any other type of bankruptcy.

That means the pension fund administrator would be required to send the withholding taxes to the IRS at the end of the year to be processed as a part of your current income tax filing. The debtor would receive any refund he is due from his income tax return. The refund would not be a part of the discharged taxes and would be subject to any money currently owed the IRS, but the IRS would not be allowed to use the money to cover taxes that have already been discharged.

If you have similar circumstances and are considering filing bankruptcy, contact us today, and we will help you find a bankruptcy attorney in your area who will help you understand how these complex bankruptcy laws may apply in your particular circumstance.

Many of you are aware of the seven deadly sins in the Bible but you may not be aware that there are seven deadly sins found in filing for bankruptcy protection as well. Sin can be defined as missing the target. So, here are seven ways you can miss the target after filing for bankruptcy protection:

1. Committing fraud. Bankruptcy fraud is a crime. Common fraudulent acts under bankruptcy laws typically involve concealment of assets, concealment or destruction of documents, conflicts of interest, fraudulent claims, false statements or declarations, and fee fixing. You can be prosecuted for bankruptcy fraud, and if convicted, you can spend time in jail and/or be fined.
2. Failing to Appear at the Creditor’s Meeting. You are required to attend the creditors meeting to answer any questions the creditors or bankruptcy court has for you about your debts or income. You may get a reprieve the first time you miss the meeting if you have good enough excuse, but repeated misses may result in the bankruptcy court dismissing your bankruptcy.
3. Failing to fill out your paper work correctly. Any paperwork the bankruptcy asks you to fill has to be filled out correctly or it can be another cause for your bankruptcy to be dismissed. This also means you must provide all the information requested. If your bankruptcy is dismissed for this reason, you will have to refile again.
4. Failing to list all of your creditors. There is a time frame in which you can petition the bankruptcy court to add creditors you have forgotten, but once the bankruptcy has closed, any creditor’s debts left off your list cannot be discharged. Since it can be up to 8 years before you can file for bankruptcy protection again, the creditors can pursue you without the benefit of the bankruptcy court automatic stay.
5. Filing the wrong type of bankruptcy. There are various types of bankruptcies that an individual, corporation, or partnership can file. These bankruptcies are designed to meet various and specific situations depending on your level of income, assets, and expenses. Filing the wrong bankruptcy can cost you time and money.
6. Not filing in a timely manner. When you file for bankruptcy is just as important as knowing what type of bankruptcy to file. After you have filed for bankruptcy, you are not allowed to file again for a certain time frame. That is why it is important you know when to file. For an example, it is suggested by many that you should file a Chapter 7 only when you can see the light at the end of the tunnel.
7. Being ignorant of bankruptcy laws. Bankruptcy laws are very complicated, and where you may have heard “ignorance is no excuse in the eyes of the law,” not understanding what there is to know about bankruptcy laws can cost you time and money. That is why it is probably wise to consult with a bankruptcy lawyer who can help you understand how the laws might apply in your particular situation.

Do not miss the target. Contact us today and we will help you find a bankruptcy attorney in your area.

Millions of dollars was just recently made through your efforts to scare yourselves during the Halloween season. I have wondered why Americans are so enamored with getting scared and often paying good money to do so. I suppose you like the adrenalin associated with being suddenly frightened but in a controlled way. The frightening may allow you to temporarily escape the everyday hum-drum of life’s experiences and awaken your senses by making you aware you are alive.

Life itself sometimes has its own way of frightening you. There is probably nothing more scary than life’s own drama, especially when it comes to your personal finances.

One of life’s scary and financially worse case scenarios is when you suddenly realize you have gone bankrupt. This financially frightening moment usually occurs when you lose control of your finances, and ironically, the adrenalin associated with such is usually not the type of experience you like to be reminded you are virtually alive.

The feelings experienced from going bankrupt are real and hard to control, but when you get down to really analyzing your fears about bankruptcy, the scariest part about bankruptcy is the fear of the unknown. It has been said you have nothing to fear but fear itself, so knowing what to expect before, during, and after bankruptcy can help alleviate the stress associated with suddenly being frightened by any perceived financial calamity.

Going bankrupt is not the end of the world. This financial phenomenon has happened ever since there was a means to barter, it has happened to people regardless of their status in life, and it will continue to happen as long as there is a way to obtain credit from one human being to the next. The only scary part about the phenomenon is not knowing how to handle your financial predicament once you learn you are bankrupt.

You use to be placed into debtor’s prison, but today, the only prison you can be placed into for financially going bankrupt is the prison of your own mind. Our Founding Fathers saw to it that Americans should have a way out of bankruptcy when they gave Congress the power to legislate bankruptcy laws. These laws allow any American who has gone bankrupt a legal remedy to help solve bad financial situations in a humane and fair way. That way is to file for bankruptcy protection.

There are several types of bankruptcies available to individuals, corporations, or partnerships to help meet the need of eliminating a bad financial situation. These bankruptcy types are designed to help alleviate financial problems at the level you financially are while allowing you to humanely keep what assets are needed in order to survive.

The bad financial situation is normally finalized during the bankruptcy process, and once the process is finished, you no longer legally owe the debts that caused the financial problems in the beginning. Therefore, you have either solved your financial problems through a payment plan or you have been discharged of any further responsibilities to pay. Having been discharged, you can financially start over.

There is no need to be afraid about the bankruptcy process, but because the laws can be complicated, common sense indicates you might need a bankruptcy lawyer in order to help you understand how these complex laws may apply in your particular situation. Contact us today and we will help you find a bankruptcy attorney in your area.

According to the Bureau of Labor Statistics (BLS), the rate for non-farm unemployment has remained steady for the past quarter holding between 9.0 and 9.2 percent. What the figures fail to reveal are the total number of Americans without a job.

The BLS counts those who are currently unemployed as those persons who do not have a job, have actively looked for work in the prior 4 weeks, and are currently available for work. That definition means those that have currently given up on looking for employment and not on the current unemployment roles are not counted in the total number of Americans considered unemployed.

So, where are all of those people unemployed but not counted as unemployed? It is estimated that 1.5 million people will be homeless in the next few years within the United States. The foreclosure crisis, economy, and job market are what many feel has been contributing to the rise. Also, there are countless numbers of other US citizens now living with their families who have long dropped out of seeking the hope for employment. So, this year, a job is reason for Americans to be thankful this Thanksgiving.

Another reason to be thankful is that we still live in one of the greatest countries in the world, despite all our current financial problems. The United States has the best economy in the world, you are free to travel anywhere in the United States, roads are good, the health care system is one of the best in the world, the basic necessities in life are affordable, we enjoy the right to be free thinkers, United States technology is second to none, you get good a education in America from kindergarten to college, you are free to change careers and learn a new skill, we have some of the lowest taxes in the world, you have the freedom of speech, our justice system is second to none, there are a diversity of people to interact with, we enjoy freedom of religion, we have some of the most beautiful landscaping God ever created, and we are protected by the Bill of Rights as guaranteed in the Constitution of the United States.

Although the list to be thankful for living here in the United States could continue on, there is one last thing that we at these bankruptcy sites feel as Americans we should all be thankful, and that is the fact America is no longer a place that practices debtors prisons. It is your Constitutional right to file for bankruptcy protection if the need arises. Filing for bankruptcy is a legal proceeding designed to allow the honest person or business to work their way out of a bad financial situation, or in some cases, to start afresh.

If you have recently experienced a sudden loss of income through losing your job, and you feel there is nothing at this time you can be thankful, try to remember to be thankful for the country in which you live and the possibility for being able to start over. Contact us today, and we will help you find a bankruptcy attorney in your area to help you make the start.

Filing a bankruptcy will stay on your credit report for up to 10 years, so it should not be surprising that some filers want to know what the steps and time frame for building good credit are after you have filed for bankruptcy.

How fast you build credit after filing a bankruptcy depends on the type of bankruptcy you file, the amount of steady income you have, and whether you are willing to risk getting back into debt.

Some people can start building their credit back the moment they file for bankruptcy. Filing a personal bankruptcy is viewed by some creditors as a reasonable response to handling a bad financial situation, and most creditors are aware of the fact you cannot declare bankruptcy again for up to eight years. Therefore, some creditors are willing to extend you credit but with a much higher interest rate.

Expect the process of rebuilding your credit to take time. It probably will not happen in months and it may even take a few years. Here are four suggestions you might want to follow that may help you in rebuilding credit:

1. It will not do you any good to try and rebuild credit if you do not learn the basics of handling money. Begin to rebuild credit by resolving not to ever over extend yourself in debt again. Learn to live on a budget and live within your means. Know what your necessary living expenses are and how much steady income you make a month. Try to set aside ten percent of your gross monthly income for a cash reserve until the reserve equals one full year of your salary.
2. Pay all your bills on time every month. That means you need to know what your utility bills will be. Most utility companies will help you by allowing you to cost average your bill. Make mortgage and rental payments on time. Today, most credit reports include renting and leasing as part of your credit history.
3. Try to avoid making the mistake of getting into time contracts with service providers like cable companies, phone companies, and the like. Instead look for service providers with open ended contracts where you can stop the service at your discretion. If needed, use prepaid phones until you get a handle on learning to live within a budget. Most contractual service providers do not help you build credit, but they can sure ruin your credit if you fail to make their payments, and failing to do so, can lead to high interest and penalties.
4. After you have learned to handle a budget for about 6 months to a year and have built a cash reserve, then look into establishing a line of credit. You will be surprised at how man credit card opportunities you will get even when you are still in bankruptcy. If you take one of the new high interest credit cards, resolve to never pay late fees, penalties or interest. That means pay your credit card bills on time.

Bankruptcy laws can be complicated, and common sense indicates you might need a bankruptcy lawyer in order to help you understand how these complex laws may apply in your particular situation. Contact us today and we will help you find a bankruptcy attorney in your area.

At the close of a bankruptcy filing, all unsecured and non-exempt debts that were not satisfied by the bankruptcy process will be discharged. That means the debtor no longer has a legal obligation to pay the debts. The bankruptcy is over, finalized, and protection for the debtor is guaranteed by the the determining laws and terms of the discharge.

The whole bankruptcy system was set up so that there is a finalization between the creditors and debtors to end once and for all their financial arrangement. When a US Bankruptcy Court discharges a bankruptcy proceeding, they are in effect saying everything was satisfied and finished. The power of a bankruptcy discharge is very strong.

Yet, bankruptcies are a matter of public record. Credit reporting is also a matter of public record. When a bankruptcy has occurred and been filed publicly, public records vendors obtain the information and sell it to the credit bureaus. The bureaus place the information onto the credit report of the filing debtor. This information is processed and scored on the credit report, usually having a negative impact on a debtor’s credit score.

Bankruptcies can legally stay on your credit report for up to 10 years. Each credit violation that may have contributed to a bankruptcy may also be reported to the same institutions, and each account will have its negative effect on the credit score. These accounts can legally remain on your credit report for up to 7 years unless something happens that changes the situation.

Filing for bankruptcy is one situation that changes the status of credit accounts already reported on credit reports. These facts probably prompted this personal bankruptcy question posted on the internet in 2011 in a bankruptcy discussion: “A bankruptcy cannot be wiped off your credit report until after 10 years, but can the accounts discharged in a bankruptcy be taken off your credit report before the 10 years is up?”

A credit bureau will normally notate each affected credit account in some way to indicate the account was discharged in bankruptcy. Unless you voluntarily petition the credit bureau to remove the accounts or force them through some type of litigation, they are not required to remove the information as noted until 7 years has passed.

Credit bureaus do make mistakes and sometimes do not always receive or record the information provided by a discharge in bankruptcy. When this happens, it is your responsibility to bring the error to the bureau’s attention. That is why many think it is a good idea to monitor your credit reports. Credit reports play a very important role today in our ability to financially function in the United States.

Bankruptcy laws can be complicated, and common sense indicates you might need a bankruptcy lawyer in order to help you understand how these complex laws may apply in your particular situation.

If you live in or around the metropolitan area of Toledo, Ohio, contact us here today at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area that will help you with any questions you may have on bankruptcy law.

Is there a way to get down payment assistance on a HUD foreclosure but have a conventional loan?

My understanding is that the only way you can get government down payment assistance is through getting an FHA loan. I do not know of any government assistance programs where you can get a mortgage down payment to place on a conventional loan.

Do you have to have ‘cash only’ at a foreclosure auction?

Foreclosure laws are governed by the state in which the foreclosure occurs. The bidding procedure during foreclosure auctions vary from state to state. In some states, bidders are required to bring the full amount they want to bid in the form of cash or cashier’s check to the auction. Other states may require you to bring only a certain percentage of the bid amount to auction and pay the rest within a certain time frame if you are the highest bidder. You might want to check with the local Sheriff’s Department handling the auction to find out the terms of payment before you consider bidding.

If foreclosure proceedings are started but the loan was reinstated will it show negatively on a credit report?

Most all foreclosures begin when you are in default on your mortgage contract to make payments on the agreed loan amount. Late and defaulted payments will most likely be reported to the credit bureaus and placed on your credit report. The actions usually have a negative impact on your credit scores.

Although a reinstatement of the contract can imply you have caught back up on your payments including any interest and penalties, the credit scores will still normally be negatively impacted and reflect the late transactions in some way. If the bureaus have been made aware of the reinstatement, they can notate this on the report.

Can foreclosure and bankruptcy be taken off your credit report if you didn’t have to go through with the foreclosure and bankruptcy?

Once a bankruptcy is filed, it most likely has been reported to credit bureaus by public record vendors. The bankruptcy record can legally remain on your credit reports for up to 10 years.

You can petition credit bureaus to remove the bankruptcy or foreclosure record from their reports by providing documentation of the facts of why they should. Some bureaus might voluntarily remove the information from the report, others may not, and others may notate the information with some explanation like the bankruptcy or foreclosure has been satisfied.

Nevertheless, a problem arises for removal from the report in the fact a bankruptcy was filed in the first place. That fact might indicate there may have been default problems at one time. Defaults of payments normally violates the mortgage contract. Even though you corrected the problem, your credit has already been impacted.

The only other way you might get a credit bureau to remove the bankruptcy and/or foreclosure from a report is through litigation, a timely and costly process.

Bankruptcy laws can be complicated, and common sense indicates you might need a bankruptcy lawyer in order to help you understand how these complex laws may apply in your particular situation. Contact us today and we will help you find a bankruptcy attorney in your area.