Alternatives to Bankruptcy Chapter 7
Credit Card Debt Settlement: The Bankruptcy Alternative
Discover how credit card debt settlement is helping millions of Americans avoid bankruptcy, start fresh, and take back control of their financial future.
With First Choice Debt Resolution You Have Access to:
Your own personal debt relief professional who will take over all collection communications
A professional debt settlement negotiator on your side who will reduce your debts 40-60%.
A debt-free life within 12-36 months
knock out your debt one at a time
Learn more about how debt settlement can provide you with credit card debt relief & save you from bankruptcy or so called "non-profit debt consolidation" companies. First Choice Debt Resolution, LLC has been voted one of the best debt-settlement companies in the country!!!
Debtors should be aware that there are several alternatives to chapter 7 relief. For example, debtors who are engaged in business, including corporations, partnerships, and sole proprietorships, may prefer to remain in business and avoid liquidation. Such debtors should consider filing a petition under chapter 11 of the Bankruptcy Code. Under chapter 11, the debtor may seek an adjustment of debts, either by reducing the debt or by extending the time for repayment, or may seek a more comprehensive reorganization. Sole proprietorships may also be eligible for relief under chapter 13 of the Bankruptcy Code.
In addition, individual debtors who have regular income may seek an adjustment of debts under chapter 13 of the Bankruptcy Code. A particular advantage of chapter 13 is that it provides individual debtors with an opportunity to save their homes from foreclosure by allowing them to "catch up" past due payments through a payment plan. Moreover, the court may dismiss a chapter 7 case filed by an individual whose debts are primarily consumer rather than business debts if the court finds that the granting of relief would be an abuse of chapter 7. 11 U.S.C. § 707(b).
If the debtor's "current monthly income"(1) is more than the state median, the Bankruptcy Code requires application of a "means test" to determine whether the chapter 7 filing is presumptively abusive. Abuse is presumed if the debtor's aggregate current monthly income over 5 years, net of certain statutorily allowed expenses, is more than (i) $10,000, or (ii) 25% of the debtor's nonpriority unsecured debt, as long as that amount is at least $6,000. (2) The debtor may rebut a presumption of abuse only by a showing of special circumstances that justify additional expenses or adjustments of current monthly income. Unless the debtor overcomes the presumption of abuse, the case will generally be converted to chapter 13 (with the debtor's consent) or will be dismissed. 11 U.S.C. § 707(b)(1).
Debtors should also be aware that out-of-court agreements with creditors or debt settlement services may provide an alternative to a bankruptcy filing.
What can Bankruptcy do to my Credit?
Both the Bankruptcy Code and the Fair Credit Reporting Act (which regulates what a consumer reporting agency may include in your credit report) are Federal law, so the same rules apply to all states.
A consumer credit report may include information on a Chapter 7 and Chapter 13 bankruptcy for 10 years from the commencement of the case. We have been advised that at least one major consumer credit reporting agency removes information about Chapter 13 after only 7 years although it is not legally required to do so.
Most other credit information may be reported for 7 years, except for civil suits, civil judgments, and arrest records can be reported for at least seven years, but may be reported longer if the governing statute of limitations is longer. For example, in Arizona, a court judgment is effective for 5 years. However, it may be renewed at the end of that time for another 5 year period, and again after that period. As a result, a renewed civil judgment could be reported for as long as it is effective.
Bankruptcy is on the Rise.
Total bankruptcy filings in the United States increased 31 percent in 2008 over calendar year 2007, according to data released today from the Administrative Office of the U.S. Courts (AOUSC). Bankruptcy filings totaled 1,117,771 for the 12-month period ending Dec. 31, 2008, a significant increase over the previous year's total of 850,912. The 2008 filing total marks the first year since the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) that bankruptcies have surpassed 1 million.
Bankruptcy filings will reach 1.4 million or even more this year, especially if Congress changes the law to permit homeowners to modify home mortgages via chapter 13.
The 1,074,225 consumer filings during the 2008 calendar year represented a 31 percent increase over the 822,590 recorded during the same period in 2007. The 714,389 consumer chapter 7 filings during the 12-month period ending Dec. 31, 2008, comprised 67 percent of the total consumer filings for the 2008 calendar year, up from 61 percent the previous year. The consumer chapter 7 total for 2008 represented a 43 percent increase over the 500,613 consumer chapter 7 filings during 2007.
Top States with Bankruptcy Filings
Tennessee - The total number of bankruptcy filings rose to 42,893, an increase of 18.6 percent compared with 2007. The eastern district (Tri-Cities region) was up 30.8% from last year. Some expert argue the methods use to tabulate the numbers might be some of the cause. To quote, "there's no clear reason why the state has persistently led the nation in bankruptcy filings...the bulk of those were for Chapter 13, a court filing under which a person's debts are restructured...Tennesseans repay about $160 million to creditors, out of about $6 billion paid annually in the U.S."
Nevada #2 in the nation. Foreclosures are high, Casinos file for bankruptcy and the State continues to lose people. As a consumer, you can file for bankruptcy in Nevada under either:
- Chapter 7 (Straight Bankruptcy) to wipe out all debts except those listed and get an immediate fresh start or
- Chapter 13 (Wage Earner Bankruptcy) to set up a repayment plan to pay back your debts over several years' time.
Georgia The already busy bankruptcy courts in Georgia had even more filings as the mortgage meltdown and job losses sent consumers to the courts looking for relief because of heavy debt loads. Bankruptcies went up 23 percent in the first quarter of 2008, compared to the second quarter of 2007. Georgia is third in the nation for filing bankruptcies, behind Nevada and Tennessee.
Alabama For Alabama, for cases filed after February 1,2008, the median income for a single wage earner is $36,192; for a family of two, it is $44,918; for three, $51,103; and for four, $62,015. Add $6,900 for each individual in excess of 4.
Indiana Bankruptcy in Indian has continued to increase every single year. Although the bankruptcy rate has dropped from the following years, we have now seen a steady upward movement in the recent years.
Michigan If your monthly income and expenses are more than what is the average for Michigan employee earners you can't file for chapter 7 bankruptcy. Instead you will be able to apply for chapter 13.
In the Michigan bankruptcy law chapter 13 allows you to keep all pf your assets and property. You can pay off your creditors using the wages that you have left from your monthly expenses.
Ohio Filing for bankruptcy in Ohio does not cancel all of your debts. You may be required to pay the following: Alimony & Child Support, Taxes, Student Loans, Purchases of luxury items within 90 days of filing, Fines owed to federal or Ohio government agencies, Debts accrued as a result of fraudulent activity, Recent Cash Advances .
Kentucky Kentucky Bankruptcy Exemptions This list of exemptions updated January 2009. All law references are to Kentucky Revised Statutes unless otherwise noted.
Federal bankruptcy exemptions are not available in Kentucky.
Homestead Real or personal property used as a family residence up to $5,000. Sale proceeds are also exempt. (427.060)
Insurance- Annuity contract proceeds up to $350 per month (304.14-330)
Fraternal benefit society benefits; casualty insurance or cooperative life benefits (427.110)
Group life insurance proceeds. (304.14-320)
Arkansas Bankruptcy Laws - Arkansas WAGE GARNISHMENT EXEMPTION $500 head of family; $200 if single. Since federal law offers better exemption, it applies:
MAXIMUM INTEREST RATE
Legal: 6% or 5 points above the federal discount rate
Judgment: Contract rate or 10% per annum, whichever is greater
STATUTE OF LIMITATIONS ON ENFORCEMENT
Open Account (credit card): 3 years
Written Contract: 5 years
Sale of Goods: 4 years
Domestic Judgment: 10 years (judgment is renewable)
Foreign Judgment: 10 years
Illinois
Federal Offsets:
Debts owed to the federal government may be dischargeable;
Income taxes may be dischargeable if return has been filed and tax liability is at least 3 years old. Example: Bankruptcy filed July 27, 2002, taxes owed for 1998 are dischargeable if no extensions to file were granted;
Non tax debts are dischargeable unless they would be nondischargeable on generally applicable grounds, such as fraud or theft.
Do not file for Bankruptcy; we are your Alternative to Bankruptcy. We work with you and for you. With our debt settlement program you will be on the ROAD TO DEBT FREEDOM. Contact one of our Debt Settlement Specialist Today.
Credit Card Debt Settlement: The Bankruptcy Alternative
Discover how credit card debt settlement is helping millions of Americans avoid bankruptcy, start fresh, and take back control of their financial future.
With First Choice Debt Resolution You Have Access to:
Your own personal debt relief professional who will take over all collection communications
A professional debt settlement negotiator on your side who will reduce your debts 40-60%.
A debt-free life within 12-36 months
knock out your debt one at a time
Learn more about how debt settlement can provide you with credit card debt relief & save you from bankruptcy or so called "non-profit debt consolidation" companies. First Choice Debt Resolution, LLC has been voted one of the best debt-settlement companies in the country!!!
Debtors should be aware that there are several alternatives to chapter 7 relief. For example, debtors who are engaged in business, including corporations, partnerships, and sole proprietorships, may prefer to remain in business and avoid liquidation. Such debtors should consider filing a petition under chapter 11 of the Bankruptcy Code. Under chapter 11, the debtor may seek an adjustment of debts, either by reducing the debt or by extending the time for repayment, or may seek a more comprehensive reorganization. Sole proprietorships may also be eligible for relief under chapter 13 of the Bankruptcy Code.
In addition, individual debtors who have regular income may seek an adjustment of debts under chapter 13 of the Bankruptcy Code. A particular advantage of chapter 13 is that it provides individual debtors with an opportunity to save their homes from foreclosure by allowing them to "catch up" past due payments through a payment plan. Moreover, the court may dismiss a chapter 7 case filed by an individual whose debts are primarily consumer rather than business debts if the court finds that the granting of relief would be an abuse of chapter 7. 11 U.S.C. § 707(b).
If the debtor's "current monthly income"(1) is more than the state median, the Bankruptcy Code requires application of a "means test" to determine whether the chapter 7 filing is presumptively abusive. Abuse is presumed if the debtor's aggregate current monthly income over 5 years, net of certain statutorily allowed expenses, is more than (i) $10,000, or (ii) 25% of the debtor's nonpriority unsecured debt, as long as that amount is at least $6,000. (2) The debtor may rebut a presumption of abuse only by a showing of special circumstances that justify additional expenses or adjustments of current monthly income. Unless the debtor overcomes the presumption of abuse, the case will generally be converted to chapter 13 (with the debtor's consent) or will be dismissed. 11 U.S.C. § 707(b)(1).
Debtors should also be aware that out-of-court agreements with creditors or debt settlement services may provide an alternative to a bankruptcy filing.
What can Bankruptcy do to my Credit?
Both the Bankruptcy Code and the Fair Credit Reporting Act (which regulates what a consumer reporting agency may include in your credit report) are Federal law, so the same rules apply to all states.
A consumer credit report may include information on a Chapter 7 and Chapter 13 bankruptcy for 10 years from the commencement of the case. We have been advised that at least one major consumer credit reporting agency removes information about Chapter 13 after only 7 years although it is not legally required to do so.
Most other credit information may be reported for 7 years, except for civil suits, civil judgments, and arrest records can be reported for at least seven years, but may be reported longer if the governing statute of limitations is longer. For example, in Arizona, a court judgment is effective for 5 years. However, it may be renewed at the end of that time for another 5 year period, and again after that period. As a result, a renewed civil judgment could be reported for as long as it is effective.
Bankruptcy is on the Rise.
Total bankruptcy filings in the United States increased 31 percent in 2008 over calendar year 2007, according to data released today from the Administrative Office of the U.S. Courts (AOUSC). Bankruptcy filings totaled 1,117,771 for the 12-month period ending Dec. 31, 2008, a significant increase over the previous year's total of 850,912. The 2008 filing total marks the first year since the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) that bankruptcies have surpassed 1 million.
Bankruptcy filings will reach 1.4 million or even more this year, especially if Congress changes the law to permit homeowners to modify home mortgages via chapter 13.
The 1,074,225 consumer filings during the 2008 calendar year represented a 31 percent increase over the 822,590 recorded during the same period in 2007. The 714,389 consumer chapter 7 filings during the 12-month period ending Dec. 31, 2008, comprised 67 percent of the total consumer filings for the 2008 calendar year, up from 61 percent the previous year. The consumer chapter 7 total for 2008 represented a 43 percent increase over the 500,613 consumer chapter 7 filings during 2007.
Top States with Bankruptcy Filings
Tennessee - The total number of bankruptcy filings rose to 42,893, an increase of 18.6 percent compared with 2007. The eastern district (Tri-Cities region) was up 30.8% from last year. Some expert argue the methods use to tabulate the numbers might be some of the cause. To quote, "there's no clear reason why the state has persistently led the nation in bankruptcy filings...the bulk of those were for Chapter 13, a court filing under which a person's debts are restructured...Tennesseans repay about $160 million to creditors, out of about $6 billion paid annually in the U.S."
Nevada #2 in the nation. Foreclosures are high, Casinos file for bankruptcy and the State continues to lose people. As a consumer, you can file for bankruptcy in Nevada under either:
- Chapter 7 (Straight Bankruptcy) to wipe out all debts except those listed and get an immediate fresh start or
- Chapter 13 (Wage Earner Bankruptcy) to set up a repayment plan to pay back your debts over several years' time.
Georgia The already busy bankruptcy courts in Georgia had even more filings as the mortgage meltdown and job losses sent consumers to the courts looking for relief because of heavy debt loads. Bankruptcies went up 23 percent in the first quarter of 2008, compared to the second quarter of 2007. Georgia is third in the nation for filing bankruptcies, behind Nevada and Tennessee.
Alabama For Alabama, for cases filed after February 1,2008, the median income for a single wage earner is $36,192; for a family of two, it is $44,918; for three, $51,103; and for four, $62,015. Add $6,900 for each individual in excess of 4.
Indiana Bankruptcy in Indian has continued to increase every single year. Although the bankruptcy rate has dropped from the following years, we have now seen a steady upward movement in the recent years.
Michigan If your monthly income and expenses are more than what is the average for Michigan employee earners you can't file for chapter 7 bankruptcy. Instead you will be able to apply for chapter 13.
In the Michigan bankruptcy law chapter 13 allows you to keep all pf your assets and property. You can pay off your creditors using the wages that you have left from your monthly expenses.
Ohio Filing for bankruptcy in Ohio does not cancel all of your debts. You may be required to pay the following: Alimony & Child Support, Taxes, Student Loans, Purchases of luxury items within 90 days of filing, Fines owed to federal or Ohio government agencies, Debts accrued as a result of fraudulent activity, Recent Cash Advances .
Kentucky Kentucky Bankruptcy Exemptions This list of exemptions updated January 2009. All law references are to Kentucky Revised Statutes unless otherwise noted.
Federal bankruptcy exemptions are not available in Kentucky.
Homestead Real or personal property used as a family residence up to $5,000. Sale proceeds are also exempt. (427.060)
Insurance- Annuity contract proceeds up to $350 per month (304.14-330)
Fraternal benefit society benefits; casualty insurance or cooperative life benefits (427.110)
Group life insurance proceeds. (304.14-320)
Arkansas Bankruptcy Laws - Arkansas WAGE GARNISHMENT EXEMPTION $500 head of family; $200 if single. Since federal law offers better exemption, it applies:
MAXIMUM INTEREST RATE
Legal: 6% or 5 points above the federal discount rate
Judgment: Contract rate or 10% per annum, whichever is greater
STATUTE OF LIMITATIONS ON ENFORCEMENT
Open Account (credit card): 3 years
Written Contract: 5 years
Sale of Goods: 4 years
Domestic Judgment: 10 years (judgment is renewable)
Foreign Judgment: 10 years
Illinois
Federal Offsets:
Debts owed to the federal government may be dischargeable;
Income taxes may be dischargeable if return has been filed and tax liability is at least 3 years old. Example: Bankruptcy filed July 27, 2002, taxes owed for 1998 are dischargeable if no extensions to file were granted;
Non tax debts are dischargeable unless they would be nondischargeable on generally applicable grounds, such as fraud or theft.
Do not file for Bankruptcy; we are your Alternative to Bankruptcy. We work with you and for you. With our debt settlement program you will be on the ROAD TO DEBT FREEDOM. Contact one of our Debt Settlement Specialist Today.
[http://www.1debtres.com]
No comments:
Post a Comment