Bankruptcy Fees

One of the first important aspects to cover in finding an inexpensive and affordable bankruptcy attorney is that some can be misleading when it comes to how much a bankruptcy costs. Depending on the state in which you reside the filing fee for bankruptcy can vary. Generally it isn’t more than a couple hundred dollars but often attorneys leave this portion out. Be sure when you are shopping around for a good bankruptcy lawyer be that you find out all the costs associated with your states requirements. Bankruptcy lawyers obviously have their own fees but also keep in mind there are other aspects such as taking a credit counseling class. Most lawyers won’t play games if they can see that you are a detail oriented person and are really looking to file bankruptcy. Just be adamant that you want to know exactly how much the process is going to cost from start to finish including all state requirements outside of their fee. From this point you should have a good idea if the bankruptcy fees are something that is practical for you or not and if relief under the bankruptcy code would make sense for your situation.

Bankruptcy Payment Plan

Many who are shopping around for a cheap bankruptcy lawyer will notice the bankruptcy payment plan option. This is a slightly misleading pitch that has many confused. While many lawyers in this field of law offer bankruptcy payment plans don’t mistake them for the fact that they will complete the bankruptcy proceeding and you can pay them after it’s done in installments. While many would really like to believe this is true it simply is not the case. However some attorneys do provide an option for potential clients to make a down payment and they will handle a client’s harassing phone calls. From there clients are instructed to stop making payments to their current creditors which often frees up a large cash flow to take of the attorney’s fees much quicker. Its import to be clear that all attorneys require payment in full in order to complete a bankruptcy but you can stop the harassment very quickly by making a down payment.

Best Strategy for Finding a Cheap Bankruptcy Lawyer

If you are looking to find a cheap bankruptcy lawyer there are some very fundamental ways to go about choosing an attorney in the most cost effective way. First off keep in mind those larger firms that processes a large volume of clients tend to be a great place to find a low cost bankruptcy. Because they are able to generate such a large pipeline of clients they are able to keep costs affordable. Usually these firms are comprised of a number of attorneys which helps to spread operating costs and overhead. This is similar to large retailers like Walmart who deal in bulk. Those that can process a large volume of orders can afford to take a smaller cut as they make up for this difference by doing a greater volume. Just be sure when obtaining bankruptcy advice from one of their often free consultations that you make sure it’s someone you are comfortable with. Many don’t realize how much work goes into a bankruptcy and how much time you are going to spend with your lawyer so choose wisely. Always remember that whether you can find inexpensive and affordable bankruptcy services or not the alternative of not taking advantage of any deft relief is much more expensive. If you are unsure whether to choose a chapter 7 bankruptcy or chapter 13 just be sure to utilize a free initial consultation about potential legal services as nearly all lawyers now offer a free bankruptcy evaluation.

Qualify for Bankruptcy-How Difficult Is It?

One of the first concerns for most is whether you can even qualify for bankruptcy. This really is something that only a qualified personal bankruptcy attorney can answer. Generally it has to do with debtor’s income in the past in comparison to debtor’s current monthly income. If a debtor’s current monthly income is less than what was being earned before this figure is figured into an equation allowing the attorney to quickly assess if you qualify for bankruptcy. Generally if you have had any sudden large changes in your income levels that have left you unable to make your payments then you are likely to qualify. 

Types of Bankruptcy-The Basics

When covering the bankruptcy basics are several types of filings that can be utilized. If you are one of the many who is confused regarding the main filings that most people use you are not alone. The main two types of filings that most people gravitate toward is either a chapter 7 bankruptcy or a chapter 13. Chapter 13 ideally is selected when someone has a house or property that they would like to ideally keep. A payment plan is arranged with reduced interest rates generally over a three to five year term such that the debts can be paid off. The drawback to this is that it’s usually a substantial amount more money up front for a chapter 13. Most people ending up filing a chapter 7 due to the fact that perhaps they are underwater on their place and want to get a fresh start elsewhere or they just simply don’t own any real assets. Chapter 7 generally is much more affordable and completely eliminates usually most of a person’s debts including garnishment. School loans and taxes typically are the only debts that can’t be included.

Bankruptcy Process-Getting the Ball Rolling

If you are wondering how the bankruptcy process starts after you find an attorney you are comfortable working with we will cover the first few steps. Generally the process officially starts by the filing of a bankruptcy petition after you take your approved credit counseling course. The lawyer usually starts by making a list of your creditors and the amounts owed as well as a list of your liabilities combined with assets. From there whomever you hire will be responsible for filing this petition which will put a halt to the phone calls as well as threatening letters. After hiring an attorney you should be instructed to direct all further correspondence from phone and mail to your lawyer. For many this can be a great relief and provide a much needed break from the around the clock harassment. From there final paperwork will be prepared for bankruptcy court to obtain your discharge.

Stop Foreclosure With Bankruptcy

In many cases a foreclosure can be stopped with a chapter 13 bankruptcy. This would of course be highly dependent on how far into foreclosure proceedings you are. It is also governed by the state which you reside since each state has its own individual laws. If you’re simple looking to delay foreclosure with bankruptcy a chapter 7 usually your best option as you can usually delay proceedings for at least a few months. Be sure to take advantage of a local attorney’s free consultation. There are many that are standing by to answer questions and offer valuable bankruptcy advice. They can be an invaluable asset to get your questions answered on your particular state laws and the best course of action for you to follow.

Bankruptcy Forms

There is however a number of websites that supply bankruptcy forms. These can be acquired for a reasonable fee which can be utilized to help speed up your filing process. This can really help make it much easier to file bankruptcy without the help of an attorney. Currently there are two types of sites. The first type allows you to prepare the bankruptcy filing online and then print the paperwork out. The next type of sites is ones that allow you to download the forms direct to your computer offering the assistance of a bankruptcy paralegal. 

Bankruptcy Cheap-Hire A Bankruptcy Paralegal

If you are like most you are looking for the cheapest bankruptcy possible. Hiring a bankruptcy paralegal is something that many people inquire about in an attempt to save money. After all if you’re considering filing it’s generally due to lack of funds. There are however some important points to understand before you go down the path of hiring a paralegal. Just keep in mind that if you choose to utilize this avenue, bankruptcy paralegals by law cannot give you even the slightest legal advice and can only offer limited instructions. This can be frustrating as most are very used to being able to ask a question from anyone and get an answer. It is because of this that many resort to just hiring a bankruptcy attorney.

Bankruptcy Attorney-Why You May Need One

Many this day and age due to the complex nature of bankruptcy law and bankruptcy court, quickly find that trying to file bankruptcy without an attorney isn’t worth it. If you have any substantial assets it’s often best to go about choosing an attorney who specializes in this field of service. Often if you can’t come up with all legal fees at once they will work out a payment plan. Remember the majority of clients are financially strapped so they usually are flexible in working out a payment plan. While you as an individual do have the legal right to file a bankruptcy petition without an attorney, it’s not uncommon that many miss crucial steps along the way which compromise their ability to capitalize on all the legal protection available. If you are not sure what is the best route for your to take be sure to take advantage of a free bankruptcy review in your local area as lawyers are standing by to help answer your questions as well as provide free information. Whether you are looking to file chapter 7 bankruptcy or chapter 13 most find that filing bankruptcy with a bankruptcy attorney to be a much less stressful avenue to pursue. At the very least they can help answer the majority of your bankruptcy questions and give you piece of mind regarding your next step.

Debt Counseling-Consumer Credit Counseling Option

Debt counseling is becoming a more popular option by the day with many professional debt settlement program centers springing up across the country. Filing for bankruptcy now requires consumer credit counseling due to the recent bankruptcy law changes of 2005 it certainly should be an option to explore to see if it makes sense for your situation. The advantage would be that when undergoing debt counseling you have a professional to help negotiate your payments as well as interest rates. If you find a reputable trustworthy counselor that knows what they are doing they can make a large amount of progress quickly on your behalf as they know what to say and who to call to negotiate the best repayment rates possible to help you avoid bankruptcy. The only downside would be that often most who are finally to the point of looking at bankruptcy often even reduced interest rates or payments aren’t even close to enough to afford. Regardless they do help a large amount of people yearly so by arranging an appointment for a consult you can decide if it makes sense for your situation. Just bear in mind that debt counseling typically does damage your credit score however often not as bad as a bankruptcy.

Debt Consolidation Loans-Why You Should Consider

Debt consolidation loans are an avenue that many turn to which is a great option to consider for getting out of debt as well as helping to avoid filing bankruptcy. This is arguably the best way to avoid bankruptcy as it generally rolls all debts into one monthly payment. Not only is this often the best way to avoid bankruptcy but it also is one of the best ways to actually get a handle on your overall financial outlook. With one monthly payment it’s easier to make sure you’re on time with payments and often is a much better interest rate than credit card companies provide. Many have turned to this option over the years arguing it’s the best way to pay off your debts. Just bear in mind that this option also comes with increased risk as typically a debt consolidation loan is based home equity and is based on a second mortgage. Just be sure you can make the payment as if you fail to do so you can put your home at jeopardy which can make a bad situation worse.

Use A Debt Settlement Company for an Out of Court Settlement

Many these days are able to negotiate an out of court debt settlement with creditors as a bankruptcy alternative at a drastically reduced interest rate. Depending on whom your credit card debt creditors are will determine how difficult these negotiations can be. While certain creditors can be very difficult to deal with if you are able to get the right person on the phone the ability to negotiate with your creditors can be greatly improved. It’s not uncommon that creditors will settle for pennies on the dollar if you are willing to pay your debt in a lump sum. Generally negotiations result best when no payments have been made for a while so if this is the case in your situation you may fair well by attempting to return their calls.

A good time to file bankruptcy is right after you’ve received your latest tax return.  This way you can cash the return and put it away.  Otherwise, the court will often garnish or take the return to pay your creditors.  You can use those funds to pay your attorney, buy food, or simply store it in a safe place.

As stated, don’t put money in your bank account. No more than $99 should be left in your checking account because the court can take the funds and order it paid to creditors.  If you are working ideally take your paychecks down to your local Walmart and cash them.  Put the cash in a safe or secured place in your home and keep it low profile until you are through the bankruptcy.  Of course you need to tell your attorney exactly what you are doing.

You have to be honest with the court and you should disclose all details to your attorney.  There are things you can do with the cash that keeps it from being taken.  Buying food, paying certain bills, pre-purchase college classes or whatever else might be legal.  Check with your attorney but it is our opinion that you need to save every bit of money you can for survival after the process.  Better you have your money than the creditors.

Don’t take out loans or add more debt once you know bankruptcy is going to be a part of your future.  This can be construed as abusive by the court and they may deny your claim.  Do not go out and run up credit cards or run up credit related bills.  All of these things are unacceptable.

If a creditor is trying to repossess your car ideally put it in your garage or close friend or family member’s garage to keep it out of the public eye.  Once you file bankruptcy they can’t take the vehicle until the process is done.  If you need the vehicle put it away and deny the claim until the bankruptcy is done. I know this one is hard as the repo company may be banging on your door around the clock. He does have legal grounds to take it if he can get in your driveway or you leave it on the street so ideally don’t put it somewhere else safer.  Once the bankruptcy is filed he will have to leave you alone by law until the process is done.

Make sure you don’t transfer money to a family member to pay off debts prior to the bankruptcy.  You don’t get to choose what debts you will pay and the court can order the money to be returned. The major thing is to consult an attorney to make sure you’re not committing fraud. New law changes that occurred in 2005 have brought about some perhaps unknown new guidelines to be followed. Remember virtually all local attorneys offer free consultations. Be sure to take advantage of this aspect as it’s a great place to get your questions answered and find out the facts. For more preliminary information prior to visiting a lawyer check out this post on chapter 7 bankruptcy information.

With the new law in place you now have 3 additional areas that you must go through before being qualified for bankruptcy.  The Ticket In, Means Test, and Ticket Out Debtor Education sections have been added to the process.  These are mandatory sections to the process which must be completed for total approval.  As tedious as it sounds they aren’t that bad  and in some cases are even helpful to you.

The Ticket In Section must be completed a minimum of 6 months or less before applying for bankruptcy.  This is a program based on credit counseling and it must be done through a government approved non-profit agency that is licensed to perform the course. Areas covered would include budget planning, debt management, and they will help you evaluate your financial situation.  Take advantage of the time to plan your future.

After completion you will then have to go through a Means Test that is performed by the bankruptcy court that will evaluate in part if you qualify for Chapter 7 Bankruptcy.  Your income will be tested in two selected areas and from that they will determine the path you qualify for.

Your state’s income average will be the base that they use to make a decide if your income is below or above 25% of you state’s average income level.  If your income is above 25% of your state’s average then you will not qualify for a Chapter 7 and a Chapter 13 will be your next option.  Also, if you can pay 25% of your unsecured debt and your income is also below that average you will still be allowed to file Chapter 7.  The government wants to make sure that you aren’t taking advantage of the process.  Your personal hardship is also considered during the process.

The next portion of the new law that has to be completed is the Ticket Out Debtor Education section in which you have to complete another class.  This must also come from an approved source as authorized by the government.  The credit counseling for bankruptcy class is primarily a financial education class that is completed online. If you don’t have a computer of course it is offered via other means such as over the phone.

One  major section initiating a big change is regarding taxes. Debtors are required to have proof of having filed taxes for the last year in order to qualify for bankruptcy. This needs to be proved by providing copies of your tax returns. The idea being to keep people from cheating the system obviously.

The last area the new laws cover is regarding protection from eviction. If you filed for bankruptcy in the past you are granted what’s known as a “automatic stay.” This would halt many legal actions against the debtor. Under the new law which has taken effect it as of 2005, it cannot halt evictions or delay them in many states.

It is always recommended that you consult with your local attorney to find out what the official laws are for your state. The good news is that consultations are typically always free so don’t hesitate to take advantage of that fact. Lawyers are standing by to answer your questions. However if your looking for further information on chapter 13 aspects check out this overview on chapter 13 bankruptcy rules.

Obviously the issuer of counseling course must be approved from the government. You must complete one class within a six month period before filing your bankruptcy and another class within six months after your bankruptcy has been discharged.  There might be some benefits to this new bankruptcy rule for some people but unfortunately statistics show that hasn’t had any sort of impact is lessening the amount of bankruptcies being filed as of late. This may be in part that many offer an online version of the course which many can skim over and pass without much effort.

During the counseling process that takes place before your bankruptcy is discharged, you will do a personal evaluation on your finances and look at options other than bankruptcy if there are any. Now mind you when they say its a counseling process there typically isn’t a person you’re going to be talking with in person or over the phone unless you want there to be. Most just simply opt for the online version which includes a video and periodic quizzes that a elementary kid could answer.

It’s clear that many simply hit play on the video’s and come back to take the final test at the end.  Many have remarked that the answers to the questions are typically common sense answers. But  if you actually take your time and review the information you can actually find some helpful advice that you could use in the future. It generally takes an hour or so for the first course before the bankruptcy and a little over an hour for the second portion.  If you can’t afford the evaluation you can request a waiver which occasionally is honored.   Finally, you’ll need to take the certificate to court that you get when finishing the evaluation.

With your follow up class after the bankruptcy you’ll take classes on managing money and using credit.  There is a fee associated with both portions of the course but again you can request financial aid on if you can’t afford it.  Don’t be too scared by the prices as many can be found in the thirty dollar neighborhood. You need to get this out of the way as soon as possible upon having your bankruptcy discharged because you don’t need this hanging over your head.  You can have trouble with the court if you miss the dead line so be sure to get it handled as soon as possible.  Be sure to print a copy for your records and email your attorney a copy as well for his records.

If you haven’t selected a bankruptcy attorney yet you may want to review this article regarding on choosing an attorney. This could save you a lot of aggravation and get many of your questions answered. Always remember most all bankruptcy lawyers offer free consults so be sure to take advantage of their free expertise.

The Dow rose 15% from 2000 to 2008 and the price of gold rose 250% while silver has gained 300%.  Now since 2008 the Dow has all but crashed while gold and silver hold their value.  You want to recover from your bankruptcy? Think strongly about investing in gold and silver and I mean invest now.

Both metals are good investment but silver is by far a better investment because the gains in coming years will be phenomenal.  Throughout history there has usually been 12 times more silver than gold however that ratio has since changed

This means that there was roughly 12 times more silver in circulation than gold throughout history. There is a lot to this story but in today’s world we are virtually out of silver for many reasons including the fact that we now use silver more than gold in several manufacturing processes.  Silver is considered the indispensable metal and is the most electrically conductive metal known to man, it is thermally conductive and also reflective.  It is a crucial metal. Gold on the other hand has more than 90 percent of the entire product ever mined still in existence.

The price of silver has been depressed for years but on a mass scale.  The dollar will continue to fade as it looses value and from there history tells us they will turn to gold and push the price up.  In this emotional climate the price of silver will explode.  The current exchange on silver to gold is 70 to 1.  Our estimates show that 1 ounce of silver could easily push over $500 an ounce!

What better way to recover from bankruptcy than to get a new vision. Instead of putting your cash in a savings account you should aim to develop at least six to nine months of living expenses silver coins. These can be obtained by visiting your local gold and silver retailer. Generally they will charge around two dollars above the current going rate of silver as their profit margin.

One final benefit to putting your savings in silver is that you must take the silver back to a dealer to exchange it for cash. This makes it tougher to make an emotional decision and spend the money as you have to drive a bit to exchange the coins back for cash. Typically they will issue you a check which you will need to deposit and wait for it to clear.  This makes for less likelihood to spend the money quickly on an emotional purchase.

Again always remember that throughout history gold and silver have consistently been the only items to hold their value. Perhaps that’s why the forefathers have it written into the constitution that its supposed to be the only legal tender for money. For other tips if you have yet to file bankruptcy be sure to check out this post regarding bankruptcy advice.

When looking at the facts one can’t deny that there are major problems in California.  The state’s pension fund is in crises as Calper’s currently has over $18 billion US dollars more in liabilities as the asset column continues to fall.

They have closed parks, poor roads, larger than normal classrooms, poor welfare services, and massive layoffs.  The unemployment level is out of control as there are nearly 10 counties with unemployment rates with over 20 percent.  This means that if you combined the unemployed people in Vermont, Nevada, and New Hampshire that it would equal the same number in California!

Recently it was reported that nearly a $60 billion US dollar bill for health care reform for retired people was brought to the state government.  This report comes out as several hospitals are being shut down.  They simply can not afford to stay open.  They are constantly filled with illegal immigrants who do not pay their bills thus adding to an already struggling state deficit as their southern border remains porous.  They have had patient deaths come about because they simply didn’t have the resources to provide care.  It has been estimated that 25% of Californians do not have health insurance if they are less than 65 years old.

To make things even more difficult they recently fired nearly 22,000 teachers throughout the state to save money.   California has been cutting billions from their educational system in an effort to help balance the budget.

Without federal funds the state simply can’t afford to go on.  The United States however has hit its legal limit on its borrowing capacity as its own commitments are coming due. The federal government is nearly on the verge of a default on its debt and doesn’t have more money to lend California.  The US Treasury can postpone the date on its commitments but not for long.  The US Debt is larger than most 1^st world countries according to the International Monetary Fund (IMF).  The world is on the verge of loosing confidence in the dollar.

So with that California is on its own when taking care of its massive financial problems.  I would say that they are definitely heading toward bankruptcy and the domino sadly won’t stop there as our entire country begins to feel the pains of poverty. It’s clear that even the Governator couldn’t fix this mess. I’m sure Arnold did the best he could but obviously many take issue with the way things have been handled up until now. Obviously California needs a bit more than a little chapter 7 bankruptcy information as things are getting uglier by the minute.

Many ponder where they should start looking in order to find a attorney. Of course referrals often produce the best results however most are not comfortable broadcasting to their friends and family the nature of their situation. The good news is that almost all local attorneys offer free consultations regarding bankruptcy. This is a great place to get your questions answered and find out if bankruptcy is right for you.

The part that many people fail to understand is that during your free consultation you need to be looking at this from an employer’s perspective. You really need to understand that you are interviewing them for hire even though it’s easy to fall into the trap of feeling like they are interviewing you. Remember that every bankruptcy attorney in town typically will offer you a free consult. I often advise people to get at least three or more different appointments with different attorneys. This is a good starting point as usually finding someone you can work best with seldom happens on the first visit.

Of course your initial consultation is a great place to get your questions answered. Be sure to come prepared with a list of questions. The lawyer usually will ask you a series of questions to establish your situation and see if you qualify. You should quickly be able to judge the lawyers competence if they know what they are doing. Of course there are levels of competence and this is why shopping around for a lawyer can be helpful.

Some bankruptcy attorneys are obviously better at their job than others as well as some are more personable than others. Keep in mind that you are hiring them. Just because they make you feel special that you qualify for a bankruptcy doesn’t mean they are a good lawyer. Look for one that is considerate about your situation and above all makes you feel comfortable as many you will find tend to deal with such a large volume of clients they become emotionless and cold.

Upon your initial visit make sure that you get all your questions answered regarding fees and costs associated with the bankruptcy. Take note of the attorney and their staff. Where they courteous and punctual?  It’s never a bad idea to ask what their particular specialization is and how long they have been practicing.  Don’t be afraid to ask as many questions as possible to make sure you get a good idea of how the process works and what you can expect from their particular bankruptcy service.

One final matter you may want to address is if they personally will be the attorney in bankruptcy court representing you or if your case will be represented by another junior member of their staff. This is an important distinction that many people aren’t aware of. Many people call around town and try to find a attorney who is the cheapest in town. While cost of course should be considered as a viable aspect make sure you are getting good value for your money.

Again the consultation is free so take advantage of it and get all your questions answered. Above all you want to make sure you’re comfortable with the attorney. Regardless if what chapter you are filing or if you’re just looking for chapter 7 bankruptcy information or trying to find out chapter 13 bankruptcy rules.

Its advised to simply due your due diligence. Just remember that should you choose to move forward you are going to be working closely with this person for a number of weeks so it’s important to take time to review a number of attorneys for bankruptcy. Try to find a attorney that is personable and experienced who seems to have your best interests at heart.