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Bankruptcy Tips And Helpful Alternatives

September 23rd, 2022

Before you file bankruptcy,Guest Posting it is a good idea to look into other alternatives if at all possible. New bankruptcy laws make it more difficult to file than it used to be.

Why Has Filing For Bankruptcy Doubled?From the period of 1994 to 2004, filing for bankruptcy has doubled. Bankruptcy filing has spun out of control with consumers being targeted with easy credit. This has become a major cause for bankruptcy cases.

New Bankruptcy Laws?There is now a new law for bankruptcy that was passed called the “Bankruptcy Abuse Prevention and Consumer Protection Act”. People struggling to pay their credit debts are now going to have to deal with this new bankruptcy law.

Bankruptcy Can Stay On Your Credit Report For 10 YearsFiling for bankruptcy can be on your credit for up to a decade. It’s a good idea to look into alternatives for bankruptcy. Buying anything on credit can be a real challenge for many years after you file bankruptcy.

Alternatives To Filing BankruptcyContacting creditors is an alternative to bankruptcy. Instead of filing for bankruptcy, you work out payment options with your creditors. In many cases they are very willing to work with you. It’s to their advantage to keep you as a customer. The creditors know the alternatives for bankruptcy will bring them more profits if you don’t file for bankruptcy.

Getting a debt consolidation loan is a good alternative for bankruptcy. Financial services can combine all your debts into one loan payment every month. A consolidation loan as an alternative for bankruptcy, can help pay off debts. For bankruptcy consolidation loans, you can shop online for the best terms and rates. Lenders are very competitive to earn your business online.

You may also consider a debt workout for bankruptcy alternatives. With a debt workout, an attorney contacts your creditors and makes arrangements. In most cases the monthly payments will be less than if the credit account was settled in full. For some cases they want the payment in full, but over a longer period of time than originally stated on the credit agreement.

Bankruptcy alternatives are a good idea to consider, before you rush off to file for bankruptcy. If you look into some of these alternatives, at least you will know you tried your best to avoid bankruptcy. Having bankruptcy on your credit report for 10 years can be a long time.

Cheap, Affordable Bankruptcy Without Lawyers – Beat the New Higher Bankruptcy Costs and Save on Fees

March 21st, 2022

Higher Bankrupt Costs Since the New Law, So How Can Debtors Get Cheap Affordable Bankruptcy Without Lawyers?

WHY THE NEW BANKRUPTCY LAW WAS ENACTED

On October 18, 2005, the new bankruptcy law, called the “Bankruptcy Abuse Prevention and Consumer Prevention Act of 2005″ (BAPCPA), went into effect in the United States. At that time, there was no anticipation that a rising higher bankruptcy costs would sooner result with the new law. However, recent reports find that the new law brought such results, and that there are more American debtors going bankruptcy without lawyers.

The new law had been prompted principally by the general clamor and intense outcry and lobbying of the well-financed, well-organized, and properly connected but powerful, American banking and credit card industries and the bankruptcy lawyers, who had contended that the old bankruptcy law was supposedly “too soft on debtors,” and that the “excessive generosity” of the old bankruptcy system supposedly encouraged abuse and allowed many undeserving debtors who, they said, could well have afforded to pay their debts, to take undue advantage by using Chapter 7 bankruptcy to avoid repaying their debts.

That claim was NOT at all true. In deed, almost every credible study that had been conducted on the subject, and most experts that testified before Congress, had held otherwise. However, Congress disregarded such evidence. In stead, it promptly responded by passing the BAPCPA law, any way.

In consequence, the stated and yet unmistakable purpose of this law was essentially to discourage debtors from filing bankruptcy by making it more stringent and expensive to file. The new law was to do that by forcing people who, it was said, could actually “afford” (through a determination by a complex “means test” calculation) to repay some of their debts, into filing for bankruptcy under Chapter 13, instead of under Chapter 7 – that is, the type of bankruptcy (Chapter 13) which requires that the debtor will repay at least some, if not most or all, of their debts.

HAS THE NEW LAW ATTAINED ITS ORIGINAL OBJECTIVE?

But lo and behold, today, it is now some 5 years later into the new bankruptcy law. The actual results and effects of the new law are just beginning to emerge. And the question is: has the BAPCPA law actually attained the basic objective for which it had supposedly been originally designed?

Actually, on one major goal of the law – the goal of discouraging debtors from filing bankruptcy and drastically curtailing the rise in bankruptcy filings by debtors – the BAPCPA law has, to date, turned out to be a woeful failure. In deed, as we speak today, there is a NEAR RECORD RISE IN BANKRUPTCY FILING. For example, in the 12-month period ending June 30, 2010, bankruptcy filings rose 20 percent, according to statistics released by the Administrative Office of the U.S. Courts. A total of 1,572,597 bankruptcy cases were filed nationwide in that period, compared to 1,306,315 bankruptcy cases filed in the previous 12-month period ending June 30, 2009, making it the highest number of filings for any period since the BAPCPA law went into effect in October 2005.

How the New Law Has Made Bankruptcy More Cumbersome and Costly for Debtors

It is, however, on the second major consequence caused by the law, that its impact has become far more profound for the average debtor or bankruptcy filer. Namely, on the fact that the new law has made bankruptcy far more cumbersome for the debtors, and has simply brought rising higher bankruptcy costs, causing debtors to seek cheap affordable bankruptcy without lawyer.

Historically, the ability of the average debtor reasonably to file for bankruptcy and to be reasonably discharged of his/her debt burden, and to obtain a fresh start to begin life anew relatively unhindered by the past debts, has been a fundamental but vital and long-standing part of the American law and life. In deed, that right is one of a handful of fundamental rights specifically named by the original U.S. Constitution and guaranteed under it. However, contrary to that fundamental American value, the new bankruptcy law of 2005 introduces into the bankruptcy system, perhaps for the first time ever, elements which drastically limit the extent of the exercise and enjoyment of this basic right by the average debtor. It does this by placing an array of new hurdles, financial as well as legal, on the path of the overburdened American debtor who seeks the “fresh start” protection that bankruptcy has traditionally offered the American debtor.

Some Examples of How the New Law Has Done this. The new law:

• Now makes it harder for debtors to discharge certain types of debts.
• Forces a greater proportion of debtors to repay their debts.
• Imposes special responsibilities and restrictions uncommon even on bankruptcy lawyers and Bankruptcy Paper Preparers (e.g., lawyers are now required to personally vouch for the accuracy of the debt and financial information their debtor clients provide them, and to do more paperwork ), handing lawyers an excuse to jack up their fees for bankruptcy even higher than before.
• Imposes tremendous restrictions and undue scrutiny upon the Bankruptcy Paper Preparers (the name given by the Bankruptcy Code for non-lawyers who help debtors with their bankruptcy paperwork), the net result of which has now been to discourage affordable assistance for bankruptcy filers and thus chase them into the offices of bankruptcy lawyers who charge some 50 times the fee of the BPPS to do basically the same thing for the debtor.
• Require debtors to undergo credit and budget counseling, and
• Subject bankruptcy filers to a mountain of paperwork, documentation and procedures that could be quite daunting for anyone, in order to file for bankruptcy.

EExorbitant Lawyers’ Fees for bankruptcy Filers the Biggest
Consequence of the New Law

Today, some 5 years after the operation of the new BAPCPA law, it is almost crystal clear now that the biggest consequences of these new array of hurdles brought about by the new law on the American debtor, is that there has been rising higher bankruptcy costs with the new law and an exorbitant lawyers’ fees for bankruptcy filers, and which has caused the debtor to seek cheap affordable bankruptcy without lawyer

Bankrupt Cost Higher

For example, according to a study released in January 2010 by Katherine Porter, associate professor of law at the University of Iowa, and her colleague, Ronald Mann, a professor of law at Columbia University, titled “Save on Bankruptcy fees,” (primarily because attorney fees and court filing fees have risen so dramatically under the new law) most debtors in current times simply find it too expensive to file for bankruptcy. For example, the average lawyers’ fee for a simple bankruptcy in parts of the country today, has reportedly shut up to a whopping sum of $2,500 for a simple Chapter 7 bankruptcy, and about $4,500 for a Chapter 13, among other new complications now to be confronted by the debtor who wishes to file for bankruptcy.