Tag: Chapter 7 Bankruptcy - page 2

Reasons Behind Filing For Bankruptcy

Why do people end up filing for bankruptcy?  This is a question that is often posed to bankruptcy attorneys and the answer people expect to get back is that people just aren’t responsible with their credit cards.  This however, more often than not, is not the reason people end up faced with the option of bankruptcy.  In fact most people that are facing bankruptcy dread being there.  It isn’t a decision that has been made freely.  In fact, most people are almost forced into it after spending months on end of harassing calls from creditors and such.

One of the most commonly seen explanations for people looking into bankruptcy is because of illness or disability.  When a family member becomes ill the entire family has to adjust.  This may mean that the family is left without the same budget that they have become accustomed to.  An illness can fall on a parent or child contributing to a change in income.

Not only does the expense of medical care come into play but the loss of income when time off is needed to provide care.  This leaves many families falling behind on bills as payments that were being made were based off of the excepted income to stay the same.   This is a common development that bankruptcy attorneys see in family’s seeking debt relief under federal bankruptcy.

Another common reason that people find themselves filing for debt replied is unemployment.  When individuals are out of work and unable to find a source of income it becomes pretty difficult to pay your bills.  Often what we see is that people will go a period of time without a job and begin to fall short on paying their bills.  As payments start to add up, even after a person does find employment it is difficult to dig them out of the hole they have found themselves in.  For instance, a thirty thousand dollar debt at twenty percent interest is difficult at best to pay off when making only forty five thousand a year.  The debt starts to become overwhelming and leads to desperation.

About thirty percent of people that are going through bankruptcy have also divorce within the past five years.  The ramifications of a divorce aren’t often felt till a few years after the dust has settled on the process as a whole.  This is especially true of women who find they are raising children in a single parent home collecting less than needed to live and raise children.  They begin to fall back on the old standby of payday loans, credit cards and personal loans.  Eventually this catches up to them and they find that there is nowhere else to turn.

There are a number of myths that surround individuals finding they are at need to look into bankruptcy debt relief.  Don’t fall victim when it comes to categorizing things in a simplistic manner.  Most people going through bankruptcy are doing so because they are all out of options and they have nowhere else to turn.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Consult A Bankruptcy Attorney If You Are Thinking About Filing Bankruptcy

There is a certain appeal to bankruptcy.  By the time you have reached the point in which you are considering bankruptcy you have endured countless hours of harassing phone calls from debt collectors and have spent many sleepless nights stressing about making minimum payments.  The idea that you could move forward into a financial future that is wiped completely debt free or with a detailed court ordered repayment plan is tempting.  This is especially true when faced with an overwhelming debt and little means to pay the funds back.

Bankruptcy is of course more complicated than running a few numbers.  There are some long lasting affects that should be taken into consideration before filing for either Chapter 7 or Chapter 13 bankruptcy.  The impact that bankruptcy has on your credit lingers and impacts a variety of aspects within your life.

Not only does bankruptcy wipe most of your debts away it also makes it difficult to establish yourself financially for years to come.  It will be difficult to open new credit accounts, buy or rent a home, find a company for insurance, get a cell phone and even possibly impact your employment.  In fact most bankruptcy attorneys will tell you that bankruptcy should be considered as a final, extreme method to resolving your financial issue, only considered after trying other budgeting, credit counseling and financial efforts to remedy the situation.

In order to begin the bankruptcy process it is recommended that you seek counsel from an experienced, reputable attorney that specializes in bankruptcy cases.  In order to seek relief from bankruptcy you must first take a step towards credit counseling from a government approved organization.  This must have occurred within six months of filing.  A means test will be performed to confirm that your income does not exceed an amount specified by the state.

After this is accomplished, with help from your bankruptcy attorney you will properly fill out the forms applicable to your bankruptcy situation.  An attorney should be present with you throughout all proceedings going forth.

The type of bankruptcy in which you choose to file for will be directly related to your situation including the assets and property you own, including your home, your income and several other factors.  Those debtors with a consistent income are encouraged to look into filing Chapter 13 bankruptcy over Chapter 7.

Chapter 13 allows individuals with a consistent income to keep their homes and cars which may be lost under a Chapter 7 bankruptcy.  With Chapter 13 bankruptcy the bank will create a repayment plan to allow you to hold on to certain property.  You must repay certain debts such as outstanding child support, student loans, taxes and other debts that are specified by the court.

Chapter 7 bankruptcy essentially allows you discharge most all of your debts.  Property of value is collected and then sold off.  A trustee of the court will take the funds raised and split them accordingly to creditors.  Certain debts may not be written off such as child support, spousal support, student loans and such.

If you are considering bankruptcy the first step you should take is to meet with legal representation.  They will offer you advice on how to proceed including those items that can hinder your ability to receive a discharge of your debt through bankruptcy.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.


Is It Finally Time To Talk With A Bankruptcy Attorney

How do you know if it is finally the time for you to throw in the financial towel and start a serious discussion about filing for bankruptcy?  The term itself is one that invokes an array of emotions: failure, sadness, defeat, relief, disappointment and more.  Bankruptcy doesn’t just involve individuals it is also something that can occur to corporate companies.  In a world where living in debt seems to be the norm how do you know when it is time to finally call it quits and meet with a bankruptcy attorney to seek relief.

When assessing if you are in the financial disaster zone there are a few questions to ask yourself.

1)      Is it only financially possible for you to make the minimum payment on your credit cards?

2)      Do you have bill collectors calling you on a regular or semi-regular basis?

3)      When you think about sitting down and working out a plan for your financial future are you scared?  Do you feel like your life is spinning out of control?

4)      Are you using your credit cards for necessities such as gas and groceries?

5)      Have you considered debt consolidation?

6)      Does it make you nervous to total the amount you actually owe?

If you have answered yes to more than one of the questions about it is possible that you need to give our financial situation a serious look.  Bankruptcy is a very viable solution when you actually owe more than you can afford on a regular basis.

The first step is to make a list of your liquid assets.  This should include items such as real estate, stocks, bonds, college savings accounts, non-bank assets, real estate and more.  A rough estimate of these figures should be good enough for these purposes.

The next step is to create a detailed list of bills and credit card statements.  When the value of your assets is less than the amount of debt that you owe one way out of this situation is speaking with a bankruptcy attorney and declaring bankruptcy.  This is not an issue that is ever easy.  Bankruptcy is not a simple, sure all for debt that is spinning out of control.

Bankruptcy can happen in two different manners.  The most common routes for individuals and corporations is to voluntarily consult with an attorney who will assist you through the proper channels in filing bankruptcy.  A second manner in which bankruptcy is filed is that creditors ask the court to order individuals into bankruptcy.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Mistakes To Avoid When Filing For Bankruptcy

If you are contemplating the need to file for bankruptcy then it is important to avoid these common pitfalls that can affect the success of your bankruptcy.  Some of the financial actions and various behavioral actions can affect your ability in achieving a Chapter 7 or Chapter 13 bankruptcy discharge.

By providing erroneous, partial or deceitful information on either your bankruptcy paperwork or at your 341 Meeting of Creditors you will be charged with perjury.  Misrepresenting the information that will be used in the judgement of your discharge can lead to criminal prosecution.  You also need to make sure that all of your bankruptcy paperwork is filled out correctly.  The bankruptcy attorney that is representing your needs to make sure that the paperwork is complete in full.  If any of the boxes are left empty you will need to make sure that amendments and additional paperwork is done to correct the issue.

Make sure to list all of the creditors and debt that you wish to discharge.  If at some point it is realized that an asset is not included a Chapter 7 trustee make choose to repossess the property.  The case may be dismissed if you forget any of the much needed schedules or forms that are needed.  If you forget a debt then this debt will not be considered in the discharge agreement.  Similarly if you forget to list an asset it may be taken away from you.  The process of completely filling out paperwork for your bankruptcy is needed to guarantee a smooth bankruptcy proceeding.

Next you must make sure that you have filed tax returns for the two years prior to filing for bankruptcy.  Better yet make sure you are up to date in filing all of your federal and state tax returns to ensure proper processing.  You will not be able to move forward with the bankruptcy proceedings unless you file the past tax returns.

You should also never continue to rack up new debt when you are about to file for bankruptcy.  Any debt that is racked up between seventy and ninety days prior to filing for bankruptcy this debt may be denied in the discharge of your bankruptcy.  Any luxury item that is bought on credit within ninety days of filing for bankruptcy in an amount greater than six hundred dollars may also be denied discharge as well.  Creditors may claim that there was an intention to deceive and that there was no intent to repay the debt.

There are several other unique situations your bankruptcy attorney will advise you to stay away from in the months before you begin the process of filing for divorce such as: moving assets around, selectively repaying only certain loans, ignoring impending collection actions or file for bankruptcy just before you are about to get a substantial payout or asset.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Hiring A Bankruptcy Attorney To Represent You

If you are considering bankruptcy the last thing you need is stress over hiring an attorney.  It is best to find a qualified individual to represent you throughout the bankruptcy proceedings.  Don’t thoughtlessly choose a bankruptcy attorney based on criteria such as their fees or the fancy advertisements.   Below you will find the five “musts” in choosing a lawyer to represent you.

Bankruptcy Lawyer Essentials

Many individuals choose an attorney based on their fees.  This can be one element in the decision process but must not be the key factor in deciding on an attorney.  Depending on where you are located bankruptcy attorneys can charge between one thousand and three thousand dollars to process either a Chapter 7, liquidation or Chapter 13, personal reorganization.

Reputable bankruptcy attorneys will never quote a fee over the phone.  The cost of the bankruptcy should include considerations specific to your current situation.  An attorney’s flat fee will include a consultation that reviews and analyzes the client’s current financial situation, preparing the bankruptcy petition, reviewing the petition with the client, meeting with creditors, following up with creditors all the way through the discharge of the bankruptcy.

Theoretically, any lawyer can process your bankruptcy however it is best to hire only an attorney specializing in bankruptcy to handle your proceedings.  An attorney that limits the number of specialties they focus on is a better bet than one that dedicates their practice to ten different areas of law.

Look for a practice where the attorney you initially meet with is the same one that will represent you at the bankruptcy hearing.  Many shady firms exist in which they churn and burn cases without taking into consideration each of the clients specific needs.  These firms are infamous for haphazard legal work, clients who are discontent as well as trustees and judges that don’t necessarily trust their intentions.

Don’t ever choose an attorney that isn’t easy to talk with.  Sharing private financial information is uncomfortable enough let alone if it is uncomfortable to speak with the attorney.  The amount of information shared between the client and attorney significantly decreases if there is uneasiness between them.  Filing for bankruptcy is an emotional process.  Open communication is a must in the client/attorney relationship.

It is not impossible to hire a lawyer that specializes in bankruptcy who is reasonably priced, reputable and easy to talk with.  Filing for bankruptcy is not a process that can happen overnight and neither should be hiring an attorney.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Creating A Life After Bankruptcy Second Installment

In our previous installment on life after bankruptcy we discussed the curveball filing for bankruptcy can throw at you.  In this installment we will continue to review ways in which you can rebuild your financial life after filing for chapter 7 bankruptcy or chapter 13 bankruptcy.

Bankruptcy attorneys recommend that individuals who have filed for bankruptcy begin to re-establish their credit as soon as they possibly can.  One way to accomplish this is by establishing a personal line of credit that is secured through a savings account.  This helps to establish credit without the risk of spending more than you have available to spend.  The one element to remember is that the interest you will pay for the line of credit will far outweigh what you will earn in interest on your savings account.

Hold off on buying a car until you have built there has been time to establish credit again.  It takes about two years to get to the point when you should start searching out loans such as home loans and automobile loans.  Continue re-building credit during this time to ensure you can obtain a loan when you start looking into larger financial purchases.

If a credit card is obtained use it only for emergency situations.  Do not card hop between credit card companies either.  Stick with one or two companies to help improve the long term credit record that is being established.

Be cautious of scams after filing for bankruptcy.  Many scams exist and scam artist prey on individuals who they believe to be susceptible.  Vulnerability is often a symptom experienced after an experience like bankruptcy.   Don’t give into it.  Never believe that anyone that promises to fix your credit.  There is no magic method in establishing credit after your bankruptcy is settled.

Rebuilding credit after bankruptcy takes time.  While you are re-establishing your financial life be wary of any offers that sound too good to be true.  Your bankruptcy attorney will recommend taking time before accepting any offers of extended credit or instant credit fixes.  Research all companies offering anything.  It is more likely than not that a quick online search will offer you a great deal of information on any and all companies that are known to be scam artists.

After researching an offer, if there is still any doubt don’t go further with the deal being presented.  Walk away from offers that aren’t a hundred percent above board.  When re-establishing your credit it is your financial reputation on the line be sure to protect it at all costs.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Creating A Life After Bankruptcy

Bankruptcy can literally throw a curveball into your life when you really need a fastball up the middle.  It may look like a dead end at the end of a long bumpy road but in reality bankruptcy is the yellow brick road to getting your financial life back on track.  When you go through with a bankruptcy no matter if you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy there is a process in which to get back on your financial feet.

It is crucial that you begin by creating a budget.  Take into consideration the source and amounts of income coming in verse the debt source and amount of debt going out each month.  When creating a budget it is crucial to set a realistic goal of saving and spending.  The most important piece in any budget is saving as much as you can and decrease the number of disposable expenses that is feasible.

After bankruptcy you learn that cash is actually the best method of spending that you can use.  Paying with cash allows you to only purchase those things that you absolutely need.  It allows you to save for those items that aren’t necessary; allowing you time to really consider the purchase.  It isn’t that credit needs to be feared, as eventually you will need to rebuild your credit in order to purchase a home or car, credit is not necessary to live on a daily basis.

After bankruptcy it is vital that you pay all of your bills on time.  Even the smallest of bills, including utilities should always be paid on time.  Overdraft fees and bounced checks show up on your credit report and affect your overall credit rating.

Keep a constant eye on your credit report.  Equate it to being on a diet.  When you are on a diet it is crucial you check in on your weight regularly the same is true of your credit.  As you are building your credit it is important to see the increase in your score on a regular basis.  The numbers increasing will only help to boost your pride exactly like seeing the scale decrease increases your ability to continue to lose weight.

This may seem like an oxymoron but apply for a credit card to help you establish your credit.  There are a few options: a secured credit card which works like a debit card or an unsecured card however get one where you only are approved for a very small credit line.  Don’t accept credit line increases until you are one hundred percent sure that your budgeting skills are on track.

This is just the beginning.  In our next installment we will continue exploring rebuilding your financial life after bankruptcy.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Rebuilding Life After Bankruptcy

The task of rebuilding your life after you have filed for bankruptcy can seem quite overwhelming.  It is important to recognize that your life is in the midst of a transformation.   Bankruptcy allows individuals to start over; it provides a clean slate where you are in control of your life unlike your previous life which was being ruled by your debt.  This article will talk about restructuring your credit rating, finances and emotional health.

Individuals, who have recently filed for Chapter 7or Chapter 13 bankruptcy need to come to terms with their pasts, put it behind them and begin to chart a course of action to regain financial stability.  Bankruptcy offers a second chance to individuals.  A key element to ensure this second chance is not wasted is commitment.  Commit to recovering.  The post bankruptcy steps listed below will help to preserve the calm that you feel right after bankruptcy.

The first thing individuals must realize is that they are not alone.  Let go of any shame or guilt that you may be feeling.  Many individuals find themselves in a financial predicament where they must seek protection with bankruptcy.  There is no reason to be disappointed or to allow the feeling of humiliation to takeover your future.  To ensure success you must move forward with a positive mindset.  Make peace with your past and let it go.  There are many reasons that people declare bankruptcy: medical bills, divorce, losing a job and various other personal stumbling blocks.  Learn from the mistakes that were made and move towards your fresh start do not allow yourself to dwell in the past.

The next step individuals must take after bankruptcy is to create a realistic financial house with a professional support team in place.  It is time to create a budget and concentrate your efforts on making a plan that allows you to pay your bills on time, build an emergency fund and account for the future.  Live under your means to ensure that you never find yourself in an unpredictable financial situation again.

Next it is crucial that you begin to rebuild your credit rating.  The simplest way to achieve this is through paying your bills on time.  Once you have begun routinely paying your bills on time it is important to establish a line of credit.  This may mean taking out a car loan or obtaining a small line of credit.  It is important to note that after bankruptcy you make need a cosigner and may be required to pay higher than average interest rates.  It will take some time but you will once again prove yourself to be credit worthy once again.

Remember to fact check.  Never believe anything you hear about bankruptcy without fact checking with your attorney.  There are many myths and misconception that surround the bankruptcy process.  Bankruptcy attorneys are the best source of truth.

One of the most well known myths is that filing for bankruptcy will automatically disqualify you from receiving a mortgage for ten years.  This is false.  It is also not true that when you file for bankruptcy you have to wait at least seven years to obtain a credit card.  In fact ninety six percent of bankruptcy filers are offered a new credit card within the first year of declaring bankruptcy.  Separate fact from fiction with help from your bankruptcy lawyer.  They can help guide you through all of the falsehoods that surround building a financial future after bankruptcy.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Bankruptcy and How The New Laws Affect You

If you are considering personal bankruptcy it is important to understand the laws and how they affect your situation.  New bankruptcy laws have been put into place to help individuals get out of their current situation before they have to resort to filing for bankruptcy.

New bankruptcy laws make credit counseling mandatory within one hundred and eighty days of an individual filing for bankruptcy.  Individuals must relay all pay stubs that are received within the sixty days prior to bankruptcy be filed with the court.  All creditors owed are entitled to a copy of the individuals most recent tax returns.  Filing individuals must attend financial management classes after filing for bankruptcy.

Before filing for bankruptcy under the current laws it is important to take a long hard look at your financial situation.  Answer the following questions honestly to determine if you really should consider bankruptcy and which option is best for you.

Is it reasonable to expect that your debt can be paid off completely within three years while maintaining a tolerable standard of living?  If the answer is yes then you are most likely on a solid financial foot and just need to adjust the way you are currently living to fit your current situation. If you cannot reasonably expect to be debt free in three years with a bit of adjusting to your current spending than you should look into the option of bankruptcy.

With chapter 7 bankruptcy many of your debts are forgiven immediately.  You will need to surrender any and all non exempt property.  It is important to note that ninety six percent of filers do not lose any assets when filing for chapter 7 bankruptcy.  Chapter 13 bankruptcy allows you to pay a portion of your debt back over the course of three to five years.  The type of bankruptcy you can file for will be dependent upon your current finances.

If your median income is greater than the median income for your state you may chose to file chapter 13 bankruptcy with a five year repayment plan.  A chapter 7 bankruptcy with an income greater than the state median may be dismissed if your debt is mostly consumer debt and you flunk the Means Test.  If your income is lower than the state median then you automatically fail the Means Test.  This means if you choose chapter 13 bankruptcy your repayment plan will only span three years.  You will not be committed to spending all of your disposable income to a five year repayment plan.

Do you need time to catch up on your mortgage? Do you have nonexempt property you wish to keep?  Do you owe taxes or support payments that you need time to pay off without the hassle of creditors?  The rules vary from state to state but generally homesteads, pensions, cars and household goods are all exempt.  If you answered yes you may consider chapter 13 bankruptcy.  If your income is greater than the state median you have to pay on your repayment plan for five years; if it isn’t the three year plan is your only option when filing for chapter 13.  If you answer no to these questions than chapter 7 bankruptcy is the better option.

To get more information on bankruptcy and the process, call to set up an appointment to meet with a qualified bankruptcy attorney today.  Your financial future depends on hiring the right person to represent you throughout the bankruptcy process.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Things You Should Consider When Filing Bankruptcy

The economy is not in good condition. Which has a recession comes an unavoidable increase in unemployment and private debt levels. A lot of debt can bring about bankruptcy causing all of its ill-effects. Read on this informative article for information about bankruptcy and whether it is the correct choice.

If you are intending to file bankruptcy, avoid taking large cash advances from bank cards thinking that the debt will probably be erased. This can be illegal. Its fraud and you may still produce paying it back despite declaring bankruptcy.

The most effective bankruptcy attorneys have a solid reputation. Necessities such as lawyers you wish to look for. Once you’ve a short listing of attorneys, find out if they offer free consultations. Take all of your financial records with you for your appointment. A great attorney will answer any questions you might have about the process.

You no longer need to lose your entire assets even though you register for bankruptcy. Many times you will be allowed to keep the personal property. These personal items include clothing, jewelry, household furnishings, electronics and other similar items. This relies for the laws in your city, the bankruptcy type that you file, and your unique finance situation, but it may be easy to retain your home, car and other large assets.

Consolidate a summary of your balance. You need to gather every debt you realize you have, simply because this list may be the kick off point to get a bankruptcy filing. Search your financial records to make sure that every amount on the list is precisely correct. Avoid rushing over the bankruptcy paperwork if you want each debt discharged, you must make sure the numbers are right.

If you are seriously considering filing bankruptcy, make sure that you make contact with an attorney. There are plenty of activities to do during bankruptcy and which may be hard that you can understand all on your own. Legal counsel dedicated to personal bankruptcies can assist and make sure everything is being handled correctly.

Before ultimately deciding if they should register for bankruptcy, be sure to weigh the different options accessible to you. Legal counsel that are experts in bankruptcy law will help give you advice of additional options, like repayment plans and reducing rates of interest to ease a number of the burden. Explore loan mod plans if you need to deal with an imminent foreclosure. Your creditors will likely be willing to work with you to allow you to repay your financial situation. They could possibly take additional fees off your account, cut down your interest, and even extend the loan’s payment term. When all has been said and done, creditors want their and discover repayment plans better to failing to get paid in any way.

The economy isn’t fit right now, and although things are slowly recovering, it is possible to large numbers of people underemployed along with debt. Even if you do donrrrt you have a stable income, might even have the ability to avoid bankruptcy. Simply remain persistent and positive. Opportunities could eventually cross your path. Keep these thoughts close and this will allow you to have an enhanced likelihood of avoiding the requirement to file bankruptcy. All the best.

Dickron “Zeke” Bohikian and Kurt Steinke are bankruptcy attorneys that specialize in chapter 7 and chapter 13 bankruptcies in Michigan. Contact today where you will find useful info about hiring a bankruptcy attorney.