Contemplating bankruptcy? A competent bankruptcy consultant can make filing Chapter 7 and 13 petitions a lot less stressful. Consultants are attorneys, lawyers, and legal assistants who are knowledgeable about U.S. Bankruptcy Court requirements and can help consumers compile, process and file accurate and timely petitions to resolve indebtedness. Debtors can expect to pay a bankruptcy consultant a moderate fee, which can be set up on a payment plan. Cash-strapped consumers may be tempted to file on their own, but the legal fees incurred are well worth the money. Because laws have changed, a knowledgeable consultant can accurately interpret the law to a client and efficiently prepare the reams of paperwork required for filing.
Facing bankruptcy can be a formidable challenge. Harassing phone calls from creditors and the threat of impending foreclosures, repossessions and wage garnishments can make personal insolvency an ordeal. But a qualified bankruptcy consultant can ease the anguish and frustration for debtors who elect to file. A professional financial consultant is the debtor's advocate, someone who supports and pleads their case in the proceedings court room. As the Greatest Advocate of all time, Jesus Christ lives eternally to plead the case of anyone who sincerely seeks to turn from sin and receive salvation and a right standing with God: "My little children, these things write I unto you, that ye sin not. And if any man sin, we have an advocate with the Father, Jesus Christ, the righteous." (I John 2:1). Dealing with a financial crisis can sometimes lead to a soul searching assessment of one's spiritual condition.
Once an individual or business has decided to file for insolvency, seeking bankruptcy assistance from a qualified consultant, or advocate, is paramount. A knowledgeable consultant will work closely with the debtor to prepare detailed listings of assets and liabilities, gather information about outstanding loans and payments, and accurately assess monetary values of automobiles, real estate holdings, and personal property. Financial attorneys and paralegals can help individuals and businesses determine the correct chapter to file and advise their clients as to what can be expected after the proceedings are finalized. Consultants also provide bankruptcy assistance in working out negotiations with creditors as an impartial third party, acting as a "buffer" and powerful liaison between the client and creditor.
If a consumer elects to file a Chapter 7 petition, also called a liquidation, a court-appointed trustee will collect the debtor's assets, with the exception of certain exempt property. The trustee then sells, or liquidates, these assets and distributes monies collected to the debtor's creditors. The court then grants a discharge to the debtor and he or she is released from those discharged debts. Unfortunately, not all debts can be discharged. Back taxes owed to federal and state governments, child support and alimony payments, government student loans, and mortgage payments are all non-dischargeable debts. While Chapter 7 Bankruptcy offers what some term a "fresh start," the proceeding can be intimidating since creditors have a constitutional right to enter the debtor's property and lay claim to assets they consider adequate payment for outstanding monies owed. A good bankruptcy consultant can lend sympathetic and professional support as a debtor endures the potentially humiliating process of distributing his or her assets.
Unlike a Chapter 7 petition, debtors filing under Chapter 13 usually have a regular income and are capable of repaying outstanding debts in accordance with a court-ordered repayment plan -- usually over a period of up to five years. The advantage of the filing Chapter 13 is that debtors get to keep some valued possessions. Chapter 13 petitions also afford debtors the opportunity to reorganize personal finances and eventually recover from a financial collapse. However, one distinct disadvantage of filing Chapter 13 is that many debtors fail to complete the repayment plan in the allotted time, thereby defaulting on their court-ordered proposal. Outstanding debts may become due and payable in the event of debtor default. In addition, a record of a Chapter 13 proceeding also remains on the debtor's consumer credit file and may adversely impact their ability to obtain future financing. Some banks and financial institutions may look more favorably on a consumer who has filed Chapter 13 and attempted to repay outstanding debts, rather than one who has filed Chapter 7 and had most of the debt discharged. Consumers should seek legal counsel on the advantages of filing either of these two types of petitions.
Debtors seriously considering filing a petition for financial insolvency can find bankruptcy assistance by surfing the Internet. Because we live in a global society where help is only a mouse click away, debtors no longer need to employ financial counselors in their own backyard. Virtual consultants can help file insolvency cases online, communicating by telephone, email, and regular U.S. postal service. If individuals prefer a more hands-on, face-to-face approach, the Internet will have listings for consultants, attorneys and lawyers in your local vicinity. Another good place to look for bankruptcy assistance is in the local telephone directory. Look under "attorneys." Most bankruptcy consultants will schedule an initial consultation free of charge. Other resources for finding bankruptcy assistance include family and friends, legal referral services, and human services agencies. Once a decision has been made to file and proceedings have begun, debtors can expect harassing phone calls from collection agencies to cease and threats of foreclosures and repossessions to be silenced. A professional bankruptcy consultant, acting as the debtor's advocate, can help turn a negative experience into an invaluable lesson, hopefully never to be repeated.
Bankruptcy HelpBankruptcy help is available online from many sources, mostly attorneys, who will help determine which type of bankruptcy an individual should file and whether or not this route should be taken at all. Bankruptcy services that actually help a debtor avoid having to seek these services will be less hassle in the long run. Sometimes circumstances occur which make bankruptcy the only solution for a debtor, and bankruptcy services are essential. If the debtor loses his job through illness or accident, for instance, and medical bills pile up beyond his capacity to pay.
Consolidation of debt is the most common means of getting credit under control. Lumping all the indebtedness together into one package over a set period of time at one interest rate will cost less than paying several creditors at different interest rates over an indefinite period of time. If you are making minimum payments on credit cards, that time period could be the rest of your life! Some bankruptcy services will negotiate with creditors for a lower amount, and then consolidate the debts so you have one monthly payment plus an overall lesser amount to pay back. Either of these methods will help a creditor get out of debt in many instances--so long as he/she avoids building up other debt at the same time.
There are two different types of personal bankruptcy that a debtor can file: Chapter 7 and Chapter 13. Chapter 7 allows the disbursement of most or all debts at the time of the court ruling by settling with creditors for a lower amount than the bill and selling assets to pay them. Bankruptcy help through this method will have a greater negative effect on credit ratings, and will appear on a credit report for ten years. Also, filers of Chapter 7 are considered greater credit risks. Firms offering credit help will explain that with a Chapter 13 personal filing, debts are paid off through a method called reorganization. For three to five years the debtor must live on a very strict budget while the debts are being paid off. At the end of the reorganization, debts are considered paid in full. Chapter 13 personal bankruptcies remains on a credit report for five to seven years. The debtor's bills may be reduced and interest eliminated in order to get them paid off in time, and only with the court's permission will new credit or loans while in the program be allowed, so as not to defeat the whole purpose of debt reorganization.
Bankruptcy services exist to help the person who is hopelessly in debt to free himself or herself of the debt and start fresh. By law, all action against a debtor must cease as soon as filing has taken place. Lawsuits, wage garnishees, and even telephone calls demanding payment by creditors must cease. When bankruptcy help guides a debtor into personal financial trouble, the spouse will not be held responsible if they were not parties to the contracts signed. It only takes two years after filing for a debtor to be eligible for mortgage loans as good as those who never filed. God wants us to lead the best life we can while on earth. This means taking care of the money He has entrusted to us in the best way possible. If that means seeking counsel to figure out the best way to get out of trouble, then that is what needs to be done. Matthew 22:37 says to Love the Lord your God with all your heart and with all your soul and with all your mind. This is the best thing anyone can do to get on the right track with everything in life, especially finances.
Filing is a three-step process: First, file a document with the federal or state court declaring the filer insolvent (no cash or assets) to pay bills; arrange a repayment plan with the court; and settle debts with creditors so they get some of their money back. Bankruptcy services will say there are both pros and cons in filing. The pros are to get legal protection from harassing creditors, it takes care of most of the debt, if a home is involved, it may not be in jeopardy, it stops financial ruin, and gives a chance for a fresh start. On the other hand, some debt will have to be paid, court appearance is required, there may be a loss of assets, and the paper will list the rulings.
By getting bankruptcy help, the debtor can dispel some of the common myths that are out there. For instance, some people believe creditors can still harass them after filing for bankruptcy, and this is absolutely false. A creditor must follow procedures or he will be punished for his actions. Another myth is that the trustee will seize all the debtor's assets and sell them to pay off debtors. While the trustee may sell some assets, things like his home, car, clothing, furniture, life insurance, etc. are non-exempt assets that cannot be seized. The final myth is that someone can file only once in his or her life. None of these myths are true. Credit will be able to be reestablished, which is a concern for many who are considering filing for bankruptcy protection. Even with the information remaining on the credit report for some time, those who have filed are often considered better risks than someone who has not. After rendering these services, a fresh start is the reality.