Archive for the ‘Bankruptcy’ Category

Protecting Secured Creditor’s Rights In Bankruptcy

There are several protections under Bankruptcy Code for individuals or groups that have supplied services or goods to a debtor on credit before a debtor’s bankruptcy filing date. When done properly, a trade creditor can increase the chances of receiving a distribution from the bankruptcy estate by invoking these protections. If the trade creditor does not take action, the debt might be defined as an unsecured claim. There are several different ways in which a creditor can be protected during a bankruptcy case.

What is a Request for Administrative Expense?

The first protection is offered under Section 503(b)(9) and it is known as a Request for Administrative Expense. If you have sold goods to a debtor within the 20 day period before the bankruptcy case is filed, you can apply for your claims to be considered an administrative expense priority. This is only eligible for goods and not services.

What is a Reclamation Demand?

You may also consider the potential for a Section 546(c) Reclamation Demand. This section is broader than the first example since it is expanded the goods sold in the 45 day period prior to the filing of the petition. In this scenario, however, the rights of sellers to reclaim goods are often subject to prior interests of secured parties. A reclaiming seller will have to file on time for the reclamation demand but he or she might also need to file an adversary proceeding to prevent the debtor from using the purchased goods or from commingling the goods with other supplies.

What is Post-Petition Assertion of Mechanics’ Lines?

Finally, another option for a secured creditor is the Post-Petition Assertion of Mechanics’ Lines. States have all adopted laws regarding the protection of creditors whose labor, services, equipment or materials were used to improve the land of the debtor.

Even when a secured creditor takes all these steps, it is important that no other action is taking during the bankruptcy case to impair these rights. For example, a debtor might take action to sell property free and clear of liens, and this sale would include mechanic’s liens.

From the perspective of secured creditors, there have been actions taken to protect their interests when a debtor files for bankruptcy. When used properly by an experienced attorney, the provisions listed above can be extremely helpful in moving a case forward and having the interests and rights of the creditor at the forefront of a bankruptcy case. A creditor must take action by speaking with a qualified attorney from the outset.

Tips on Successfully Filing Georgia Bankruptcy

Why file bankruptcy? Filing Chapter 7 or Chapter 13 bankruptcy is not giving up; it gives you a second chance financially. And thousands of Georgia residents file successfully for bankruptcy every year.

If you plan to file for Chapter 7 bankruptcy in Georgia, it’s important to know that the new bankruptcy laws are making it harder to file. Many individuals who make too much money–the median income for Georgia residents–are now forced to file under Chapter 13. Chapter 13 bankruptcy really isn’t bad, especially if you fear home foreclosure (it can actually save your home).

Now, for a Georgia resident, if you make under $40,691, about the median income for single residents in the state, you can file under Chapter 7. If you make more than $40,691 as a single resident, you will be forced to file under Chapter 13 in Georgia.

Here is a quick breakdown of Georgia bankruptcy limits so you can file successfully file with Georgia bankruptcy court.

The following is the median income table applicable for bankruptcy cases filed in Georgia after November 1, 2009:

Family Size 1: Annual Income $40,691
Family Size 2: Annual Income $55,258
Family Size 3: Annual Income $61, 104
Family Size 4: Annual income $68,502

After this, you add $6,900 to each additional family member. Bear in mind, this is the Georgia median income, not the same as other states. If you make too much based on these figures, which likely will change, you may be forced to file Georgia Chapter 13 bankruptcy. This includes all residents of the state.
Is bankruptcy right for you?

Chapter 7 bankruptcy can clear a lot of debt and give you a fresh start, mainly by eliminating credit card debt in a matter of months. Filing Chapter 13 bankruptcy is different, as no debts are canceled–you give yourself more time to pay back debts such as on your home, car, and credit cards.

Filing Chapter 7 bankruptcy requires a professional bankruptcy lawyer to walk you through the steps. For one, filing Chapter 7 means you have to fill out a lot of documentation. This includes many documents from the six months prior to filing for bankruptcy:

-Bank statements, investments, IRA’s, 401k’s, pensions, and other economic statements
-Utility bills such as heating and service bills
-Proof of household income, including pay stubs
-House expenses

After you’ve figured out what you’re eligible for and what to file, the next step is to hire a professional bankruptcy attorney who can help you remove or pay back debts by filing. A good bankruptcy attorney saves you money, doesn’t cost you money. You can find local lawyers on the State Bar of Georgia website.

After hiring an attorney, you can successfully file bankruptcy in Georgia federal courts. These are Georgia Middle District Court, Georgia Northern District Court, and Georgia Southern District Court. They follow the same bankruptcy code used by all states, but these courts will factor in the median income for Georgia residents.

Debt Bankruptcy

If you’re struggling with debt and you’re worried about who you should turn to and what to do next then you should try reading this, it’s informative and really helps lay out your options so you can decide what you want to do about your debt. Debts may be crushing you and you may not know where to turn or who to go to. You might have got loans off friends and family to cover credit cards, gone to short term loan companies sold your gold and taken your possessions to highstreet pawnbrokers and still be nowhere close to paying back what you owe and those debts just keep mounting up.

I found this really helpful. If you’ve been worrying about your spending, if you have credit card bills which are mounting up and you can’t afford to buy food without getting into more debt then you should look it over, I hope you find it as useful as I did!This piece is a useful and informative article which describes what you should do if your debts are getting out of control. If you’ve been worrying about money, even considering declaring yourself bankrupt, you should read this. It helps!We all worry about debt and making repayments, especially around this time of year but if you’re in serious trouble and you can’t seem to find a way out of your debt then this article offers some practical advice about what you can do to get yourself free.

Money worries never seem to let up, I don’t think I’ve finished paying for last Christmas & now I have to find the money for this one! But if you’re in real financial trouble and you just can’t seem to find a way free of your debt then you should try reading this, it has some good advice.Financial troubles seem to be dogging everyone but I read this and started to feel better. It’s informative and succinct, it’s like the writer understands about debt and knows how to help. If you’re in trouble with cards and loans I recommend it.

Bankruptcy is a scary notion. No one would want to rush into it but so many people seem to be having trouble with money that for some it must seem like the only solution. If you have money troubles then I recommend you read this. It seems that since 2008 everyone has found themselves in some sort of financial trouble, bankruptcy, debt, the worry of keeping up repayments. If you’re in serious trouble this piece is good as it really gives you some options to think about.

Economic Recession – Turning Loses Into Profit

You have heard many times the term “economic recession.” What does this term mean to the economy? To the country? To you?

In regular terms, when a country runs through negative growth for more than six months at a stretch, economists and the National Bureau of Economic Research (NBER) would label the period as a state of recession in the economy. Fortunately recession does not usually last more than one year, which is why it is important that you are able to hold your own until the storm passes over.

But many people loose their foothold and become unemployed, or suffer huge losses in business wavering close to, or even welcoming, bankruptcy. Debt and credit management in these times becomes a huge challenge.

What is the definition of a successful business? Anything that solves a problem or offers a solution to an existing troublesome situation is the ready-made formula to success. In good times any business would do; however, when you are passing through economic recession you need more than a good business to keep you going.

How many businesses can you think of that fits such a description? There is one business which is designed to turn losses into profits, whether you are living in regular times or any type of recession: the credit repair business.

This is one business that is not negatively affected whether the economy is on the upswing or downturn. Whatever be the indicators, a credit repair business will be making profits for you. In fact, in recession times, when people are struggling to balance their income and expenditure, credit and debt management become very critical … and therefore the importance of your role as well as your business will grow during such times.

As a credit professional you will find your contribution not only profitable, but very rewarding as well! The reason is that you will be indeed helping people cope with financial problems that would have otherwise completely destroyed them. Your talents and contribution stands between their bankruptcy, damaged credit score and financial insolvency.

This is one business that will not have you worrying about your livelihood when an economic recession sets in. As mentioned earlier, not only you will experience a definite growth in your business where all others would be struggling to break even, but also in popularity as people will see you as a facilitator to financial stability when the economic downturn would make it seem impossible.

The beauty of the credit repair business is that you can practice it as, and when, you are comfortable doing it. You can have a full fledged job and still do very well with this business in your free time. You can make it a part time engagement, or your full time engagement … and work from home.

Whatever you choose, you will find that this is a profession where you generate wealth at an amazing pace, whatever the economic conditions. This business is the secret many have discovered and profited from during economic recession.

There is nothing more important than financial management when the economy cycle reflects negative indicators. Now that you know the secret, make full use of it and use the credit repair business to recession-proof your life!

Which is the More Effective Partner Customer Proposition or Debt Unification?

Bankruptcy is a word that men and women do not want to be associated with. Try as they may to outrun it, bankruptcy reaches individuals somehow when their repayments accumulate one after the other.

It is the failure of an entity, be it an individual or a business, to pay debts. Default is failure to negotiate an account.

A lot of people can agree that declaring for bankruptcy is far better than committing default. Although bankruptcy does mention that a particular person or business is incapable of disbursement, the procedure consists of a clear setup in which the debtor’s property is redistributed to administer to the existing personal debts. With this, there is, at least, ease for the debtor that absolutely nothing else is owed.

If the debtor owes about $ 1,000 or if the worth of the debt goes over that of his resources, the debtor is a candidate for bankruptcy. The debtor might be anxious that all his possessions will likely be repossessed and be left with nothing; this is in fact not true. Remittance, child sustenance, or maintenance repayments are not included in particular circumstances as an example.

Consumer proposal in Ontario could be a more reasonable choice to bankruptcy as this does not in fact cause the debtor losing some of his invaluable assets. Customer proposition is basically a budget organization method that aids a debtor to manage his accounts to the point that he can then pay them without delay. A debtor makes a sleek plan with a professional to invite creditors to either expand repayment terms or accept a portion of the personal debt as full settlement.

With consumer proposal Ontario locals getting, debtors no longer have to submit for bankruptcy, keeping assets safe. Debtors can also no longer be constantly talked to by their creditors or be in threat of getting subpoenas filed against them. Debtors can probably at the same time be allowed to provide for their various other necessities apart from merely investing his income on financial debts.

There is also debt consolidation Ontario homeowners think about when preventing bankruptcy. Debt consolidation is taking all your personal debts and shrinking them into a singular debt. You might organize a plan with your creditors to make this more advantageous for everybody. For much more details, see IC. GC. ca/eic/site / oca-bc. nsf/eng/ca02156. html.

Free Yourself From Financial Burdens In Ohio

All the US states have their methods for tackling with bankruptcy. The methods used by the US states are based on frameworks related to common bankruptcy codes. However, the definition of bankruptcy law is unique for a state and it has close relation to the different parameters in the state.

There has been amendment in Ohio bankruptcy law for including the new Federal bankruptcy law introduced during 2005. In the amended Ohio bankruptcy law, you are required to undergo credit counseling sessions from recognized counseling agencies before 6 months of filing the bankruptcy. New Ohio bankruptcy-law also requires you for undergoing through instructional courses of financial management after filing bankruptcy in the state of Ohio.

Prior to commencing with the procedures of filing bankruptcy, Ohio bankruptcy law requires you to gather every document relevant to the bankruptcy case. The document includes a list that consists of information related to your current source of income, monthly expenses for your living, details of major transaction related to finances in the previous two years, unsecured and secured debts, tax returns of previous two years, any loan outstanding at the current stage and any property, asset or title deed that has not been exempted. Your lawyer should have this itemized list at the time of bankruptcy filing.

After the completion of the paperwork, you can communicate to your lawyer for bankruptcy filing. Ohio bankruptcy law requires you for completing a certain means test prior to the application for chapter 13 or chapter 7 bankruptcy.

Individuals qualified for chapter 7 bankruptcy can submit all their assets to bankruptcy trustees. Bankruptcy trustee then liquidates these assets for paying your outstanding debts. After payment of the debt, Ohio bankruptcy law requires you for producing a certificate from any government recognized agencies. The certificate confirms your participation in the instructional course of financial management. This procedure is as strict as the one in Florida bankruptcy law but its completion clears you of your financial burdens.

In case of chapter 13, you are given different means for paying off your financial debts without the submission of your properties and assets, which are not mortgaged to your lenders. Here, you are provided with a 5-year period for discharging your debts. The plan for discharging the debts will be approved by the court. After the finalization of repayment and your completion of the instructional course on financial management, Ohio bankruptcy-law declares you free from your debts.

Doing a Short Sale or Filing For Bankruptcy?

A short sale and a bankruptcy are two very different processes. As a bankruptcy lawyer in Scottsdale, I have seen people choose short sales and bankruptcies for all types of different reasons. Be it from a personal liability standpoint or a tax standpoint, there are a lot of reasons why bankruptcy or a short sale might be tools that we would want to use.

Short Sale

If an attorney could secure the appropriate releases from a lender, then a short sale could certainly be a viable option for a homeowner who gets in over his head on a mortgage. And in most scenarios, a short sale will do much less damage to a person’s credit score than a foreclosure. But when compared to a bankruptcy, short sales might not always be the more favorable option for every client.


Whether or not you should file for bankruptcy depends on your specific financial situation. In cases where a person’s bank or lender refuses to negotiate on the terms of a mortgage or discharge any of the debt from a mortgage, filing for bankruptcy might very well be a better option to try than a short sale. In particular, if a person will still be left with a personal liability or debt after the short sale or foreclosure has gone through, then that is when bankruptcy starts looking like the better option.

Ultimately, the decision whether or not to file for bankruptcy depends on multiple factors that are going to be different for every individual. Among these factors, in my experience, are the client’s financial assets, liabilities, current income, and his desire to retain or dispose of the physical property in question. That’s why it is hard to make a blanket statement regarding which option is better than the other. A bankruptcy lawyer in Scottsdale would have to weigh all of these factors before offering his opinion about the topic to a client.

Bankruptcy is a right that everyone has, and in a lot of cases, it is the best decision. For many of my clients in recent months, bankruptcy has proven to be the better option. Rather than looking at bankruptcy as giving up, more people are now choosing to look at it as a form of protection that is offered to them by the government. While a person is in bankruptcy, he can shield some of his assets and future wages from creditors, which he would not be able to do through a short sale. In addition, some bankruptcy filers are able to work out plans that allow them to keep their homes.

Bankruptcy Lawyer

Generally, bankruptcy ends up being the better option to go with for individuals with a lot of personal assets at stake, along with anyone whose bank or lender refuses to negotiate on the terms of his mortgage. On the other hand, a short sale tends to be the better option for people who are concerned about their credit scores, because those are usually not affected very much by going through a short sale on a property.

If you’re struggling to make your monthly mortgage payments, then you should visit a qualified bankruptcy lawyer to discuss your options. For people living in the Scottsdale area, Mackey Law Firm PC is a firm that can handle all types of bankruptcy, short sale, and foreclosure cases.

File Bankruptcy and Take Control of Your Debts

Millions of Americans file bankruptcy each year, so why is it that many people still see bankruptcy as a failure? Corporations file bankruptcy as a way to restructure and reorganize coming out of bankruptcy leaner and stronger. This is perfectly acceptable but personal bankruptcy still carries a negative stigma for many. In today’s tough economy many people are in the situation where filing bankruptcy is a serious option to alleviate overwhelming debt. The thing to keep in mind is that if your unpayable debt is beginning to affect your life, your health, your family, as well as your credit rating, then filing bankruptcy just may be the wisest decision to regain control of your finances.

Filing bankruptcy truly puts the control in the hands of the debtor, which can be a welcome change after being hounded by angry creditors making unreasonable demands or threats for money. This is because when a person decides to file bankruptcy, it sends a clear message to their creditors that they have made every attempt to pay back their debt but are unable to. It also tells the creditors that the individual is turning to the legal system for the protection that bankruptcy offers them.

Filing bankruptcy has many advantages for an individual that has been struggling to keep their head above water. To begin with, once the bankruptcy petition is filed with the court, the automatic stay is put in place. The automatic stay legally prohibits debt collectors not only from harassing you but also stops all collection attempts completely. This includes lawsuits that are already filed, judgments, wage garnishments, and even foreclosure proceedings. With the assistance of a bankruptcy attorney the bankruptcy process can even protect many financial assets and personal property including one’s home. The two most common chapters of personal bankruptcy filed are Chapter 7 and Chapter 13 Bankruptcy. Which chapter of bankruptcy that one should file is best left to the expertise of the bankruptcy attorney. There are several factors that determine eligibility for bankruptcy and the chapter filed which is why an attorney is invaluable when filing. In a nutshell, a Chapter 7 Bankruptcy eliminates all unsecured debts such as credit cards, personal loans, and medical bills. It is not common for the debtor to lose assets in the process, unless they choose to give them up, due to exemption laws that protect personal property. A Chapter 13 Bankruptcy differs in that it is a repayment plan set up over the next three to five years where the debtor pays back the debt. The secured debts get priority in the payment plan with the unsecured debts getting anything left over after all else is paid off. If there are any unsecured debts left at the end of the scheduled payment plan then they are eliminated in the Chapter 13 discharge.