A Bankruptcy Attorney's Perspective

Next step forward will be to check whether the business has to be liquidated or reorganized. Reorganization is supported by many of the attorneys because it can free up cash from paying old debt to finance current operations, and prevent the loss of vital assets or cash to creditor collection actions.

Chapter 13 will also allow you to "strip" a second mortgage, which will convert it to an unsecured debt (like a credit card). When your Chapter 13 is closed, you'll only owe your first mortgage. To be able to strip, your home must be worth less (based on a comparable market analysis) than what you owe on your first mortgage. Chapter 7 will not you strip a second (or third) mortgage.

Having to face a bankruptcy is a difficult thing to do. Unfortunately, it can happen to just about anyone. When your debt rises to an amount that exceeds the wages you make in several years it is time to consider a bankruptcy claim.

If you have any trouble making your payments, you should talk to your bankruptcy lawyer right away. If there are extenuating circumstances, your lawyer might be able to help, but you have to give him the opportunity to do so.

The recession that followed the banking collapse led to widespread unemployment and a complete loss of consumer confidence, which spread right across the economy. People who had taken out loans and credit cards during the good years suddenly found their interest rates going up, they found they couldn't move to lower rate cards, and so they often took out further consolidation loans just to pay the monthly repayments on the first set of loans- a vicious circle started to emerge for many.

You see, we should be very thankful that we are born in this modern generation because of the existence of the Internet. With the Internet, every information (whether about Bankruptcy Questions or any other such as bankruptcy reform act, sell a business, small business idea or even chapter 11 filings) can be found with ease on the Internet, with great articles like this.

Once you have filed for bankruptcy, you will have to do your best to build your credit all over again. Do not be tempted to allow your credit account to have nothing on it, so it will appear to be fresh. This will send a bad signal to anyone who is looking at it.

It is difficult; however, it is not impossible to discharge student loan in bankruptcy. There are many misconceptions that student loans are not discharged in bankruptcy. But it’s not true. You can get some or all of your student loan discharged in some cases.

The bankruptcy trustee is the designated representative of the bankruptcy estate who exercises statutory powers, principally for the benefit of the unsecured creditors, under the general supervision of the court and the direct supervision of the U.S. trustee or bankruptcy administrator.