New Orleans Lawyer Blog » Bankruptcy

Debt Settlement

Mathews — Thu, 17 Nov 2011 07:19:39 +0000

If the debtors have an insolvent credit card debt, they have a best way for overcoming their debts in an easy way. This way provides many benefits like provision of Settlement program on a low payment without any losses, overcoming the debts without Bankruptcy, payment only after the debt has solved and no need of any eligibility requirements etc. These benefits are provided by the agreement known as the Debt Settlement which is a boon for the debtors to overcome their debts and creditors to get their amount without any overhead.

The Debt Settlement is a settlement of debts of the debtors with the creditors in the involvement of third party in a legal way. This settlement involves some procedures to successfully overcome the debts of the debtors with the creditors. Ultimately, the debtors are supposed to describe their details of the debts with the provider of the debt settlement. Then, the provider will give a proper way to handle the settlement of the debts and describe about their offers to the creditors. If the debtors and the creditors accept the settlement package, then the provider will provide a Debt Settlement between debtors and creditors. Through this debt settlement, the provider will handle the debts on behalf of the debtors.

The settlement package involves some steps to pay the debts to the creditors. First of all, the debtors are supposed to deposit the amount in their account and the settlement of debts starts if the deposit amount reaches 20% to 30% of the debts. The creditors can also have some offers to satisfy with the Debt Settlement. Finally, debtors can overcome their debts within two or three years in an easy way.

Changes as per the bankruptcy law 2005

Mathews — Wed, 29 Sep 2010 05:26:22 +0000

If managing your debt has become very difficult for you and multiple bills are giving you nightmares, then you must be considering debt solutions such as bill consolidation. However, if it has become difficult for you to make even the minimum payments towards your debt, then you can consider bankruptcy as the last option. As far as bankruptcy is concerned it is important for you to know that there are various types of bankruptcies that you can opt for.

The bankruptcy option is governed by various laws and they are subject to various changes. However, there were some changes made in 2005 that have made it difficult for some to file for bankruptcy. Some of the most important changes that have taken place after the 2005 bankruptcy law are as follows.

Restrictions imposed on the eligibility for chapter 7 bankruptcy.

As per the old bankruptcy laws you were free to choose the type of bankruptcy that you thought best for yourself. However, law passed in 2005 prohibits those with higher incomes from using Chapter 7 bankruptcy. Mostly people opt for chapter 7 bankruptcy that is liquidation, over chapter 13 that is repayment. This law sets various criteria’s for eligibility when it comes to filing for bankruptcy under chapter 7.

How much is your income

As per the law that was enacted in 2005, the most important step in figuring out if you are eligible for chapter 7 bankruptcy is to determine your current monthly income, against the median income for a household of your size in your state. In case your income is less than or equal to the median, then you can file for chapter 7 bankruptcy, but if it is more, then you have to pass the means test to determine if you are eligible or not.

You have to opt for the means test

The means test determines whether you have enough disposable income. This is done by subtracting certain allowed expenses and debt payments from your current monthly income. If the amount that is left over is below a specific amount, then you can opt for chapter 7 bankruptcy.

Compulsory counseling

As per the new law it is compulsory for you to complete credit counseling with an agency that is approved by the United States Trustee’s office, before you file for chapter 7 or 13 bankruptcy. This is done so that you get a fair idea of whether you actually need to file for bankruptcy or not. You can even come out of your problems using an informal repayment plan. At the end of your bankruptcy case, you’ll have to attend another counseling session, to learn personal financial management.

Credit counseling is required while filing “Chapter 7 bankruptcy”

Mathews — Fri, 21 May 2010 09:32:06 +0000

“Chapter 7 bankruptcy” is one of the best help options in mortgage debt that many debtors don’t want to nominate. Though, there are number of debtors those are left with no additional options but to file bankruptcy. Previously it was easy to filing a Chapter 7 bankruptcy but with the prologue of the new laws of federal bankruptcy, filing bankruptcy has turned into very strict. The latest federal bankruptcy law has been introduced to control the number of consumers those are filing bankruptcy.

It has also exaggerated the way in which you file Chapter 7. The Chapter 7 bankruptcy is also referring to as liquidation and straight bankruptcy. Consistent with the latest federal bankruptcy laws which were introduced on 17^th October in 2005, if you are scheduling to file bankruptcy, you have to go through a Means test.

According to the new bankruptcy laws, you will also be needed to grace with your presence credit counseling sessions. And this is applicable to both chapter 13 as well as Chapter 7 bankruptcy

Even though bankruptcy is a very good debt release option and many consumers loathe, it is often unhurried as an option that gives you a chance to fresh financial start. And there are number of banks or lenders that stare filing bankruptcy as a liable financial behavior as they know that the cost-cutting measure is still rolling under recession.

Search for a Bankruptcy lawyer:

Are you looking for a debt relief option? then filing bankruptcy can be the best one. Well, it depends. Better you discuss with a Chicago bankruptcy lawyer.