Giacoletto Law Office, PC has been providing a range of legal representation in areas of criminal law and personal injury law.

http://www.scglawoffice.com

The Miami Bankruptcy Center, a law firm, undertakes a wide range of bankruptcy cases under Chapter 7 and 13.

http://www.miamibankruptcycenter.net

There are a lot of myths floating around out there about bankruptcy. One that we hear all the time is that in a Chapter 7 bankruptcy, the trustee or court will take everything you own and distribute it to creditors. In the vast majority of California Chapter 7 cases, the debtor is able to keep all of their property through the state exemptions. For instance, retirement accounts are generally protected, as are household goods and furniture. Determining which exemptions apply and how to use them can be tricky, so consult with a bankruptcy attorney before you determine that you have too many assets to file a Chapter 7 petition.

Dykstra's Mansion

Dykstra rose to fame with the New York Mets but they traded him to the Phillies where he became a fan favorite for his uncompromising playing style and crazy antics. When the Mets wanted to traded him back the Phillies declined the offer.
After retirement in 1996 Dykstra managed his own stock portfolio, and served as president of several of his privately held companies, including car washes; “Team Dykstra” Quick Lube Centers; a fueling facility; a real estate development company; and a new venture to develop several “I Sold It on eBay” stores throughout Southern California.

With money received in these ventures he was able to purchase a 6.7-acre Thousand Oaks, California estate from hockey legend Wayne Gretzky for about $17.5 million in 2007.

In September 2008, Dykstra began a high-end jet charter company and magazine marketed towards professional athletes. The magazine was part of a business plan to offer financial advice to professional athletes.

In 2008 with a net worth estimated at $58 million things appeared wonderful for Dykstra.

It seems that Dykstra made some decisions along the way that, in reflection, he probably regrets. Only Dykstra knows for sure whether or not these decisions were made intentionally to deceive others including close family members.

Lenny’s brothers accused him of fraud, and according to some reports, he even defrauded his own mother out of $13,000, when he begged to use her credit card to pay for jet fuel.

A former business partner in California car washes claims he was owed $4 million. Former Dykstra employees including pilots say they were asked to pay for jet fuel with their own credit cards and were not paid back. He failed to pay rent on his magazine’s Park Avenue offices, bounced checks and neglected to pay printing costs.

These poor decisions certainly do not sound like the business practices of somebody that planned on giving financial advice to other professional athletes.

From the outside looking in, Dykstra’s empire was crumbling long before any others knew about it. He continued trading on his name and “borrowing” from those that trusted him to shore up his mounting financial responsibilities until he hit the outfield wall.
At the beginning of 2009 ESPN.com reported that Dykstra was involved in at least two dozen law suits in previous two years.
In July 2009, Dykstra filed for California Chapter 11 Bankruptcy listing fewer than $50,000 in assets against $10 million to $50 million in liabilities.

How could anybody go from $58 million in assets to potentially $50 million in liabilities in such a short period of time?
In the past he has been lauded for his business acumen so surely he knew something. He didn’t just wake up one morning with all that debt.

All the signs were there, he chose to ignore them and by doing so he lost everything to the extent that his wife file for divorce and by August 2009 he was living out of his car and in hotel lobbies.

Back to the original question what do you have in common with Lenny Dykstra? It doesn’t matter whether you’re famous baseball player where thousands pay money to see you work or a lonely long distance truck driver you are both protected by the very same California Bankruptcy Laws.

The California Bankruptcy Law doesn’t discriminate between the famous and the unknown, or whether you have $50 million or $500,000 in debts.

According to leading California Bankruptcy Attorney, Louis Scott Brenes, you must take action quickly because the situation does improve with delay. Delay has a tendency to compound the problems as it did in Dykstra’s case.

For Dykstra the writing had been on the wall for a long time, but for whatever reason, he chose to ignore it. Deep down he knew but his ego stopped him from taking action. If he had, he may have saved one of his homes and his family.

Don’t make the same mistake Lenny Dykstra made. Don’t “bury your head in the sand” and wait for your creditors to send you notes of forgiveness and good luck. THEY WON’T !

For more information California Bankruptcy Law call Louis Scott Brenes at 877-218-7963 or go to http://www.aboutbankruptcyincalifornia.com

Nuñez Law Corporation is a legally assisting clients that guides and advocates clients in matters of bankruptcy law
http://www.nunezlawfirm.com

Thanks to Miami Bankruptcy Lawyers for sponsoring the following blog post

The Queen of Sky was born in January 2004 when Ellen Simonetti began her blog, “Diary of a Flight Attendant,” to help cope with the September 2003 loss of her mother. She was later fired for blogging. Everyone who blogs and works in corporate America needs to hear her story, it's on course to end happily.

Simonetti was a Delta Air Lines flight attendant and dubbed herself “Queen of Sky.” Like so many other bloggers, blogging was a therapeutic release to cope with her mother’s death to cancer. I recently chatted with Queen of Sky to learn about her experience and where the road is leading her.

JA HUBER: You started your blog, “Diary of a Flight Attendant” in 2004 it's now called, “Diary of a FIRED Flight Attendant.” What happened in September and October of 2004?

QUEEN of SKY: One day in late September 2004, I came home to a bunch of messages on my answering machine from Delta supervisors. They said to call them urgently about my trip the next day. I called them back, thinking perhaps my trip (to Rome) had canceled. Instead, they simply told me I couldn't fly the trip. I asked them why and they came back after a pause and said, “It's about some pictures on the web.”

I was in complete shock and when I hung up the phone. I immediately deleted all pictures of me and coworkers in uniform from my blog. After I was notified a week later I had been officially suspended without pay (because of my “inappropriate” pictures in uniform on my personal blog), I did some research on the internet and found plenty of other MALE Delta employees in their uniforms on the web (MySpace, AOL Hometown, Match.com, etc.), who were saying not so flattering things about themselves and their employer. So I filed a sex discrimination complaint with the EEOC (Equal Employment Opportunity Commission).

Delta fired me over the phone two weeks later. [You can listen to the recording on her blog]. I then filed a lawsuit against Delta in September 2005, but they filed BK (bankruptcy) a week later and my case is still pending.

JA HUBER: What advice do you offer bloggers as a result of your experience? 

QUEEN of SKY:  My advice is to stay anonymous or keep your blog set on “friends only.”  Remaining anonymous is harder than most people think. I never used my airline's name in my blog prior to being fired. And some people who have never used their employers' names and have not posted pictures of themselves have also been found out and terminated. So the only really safe stance is not to blog at all, especially if you work for a very blogophobic company. Otherwise, check your company's blogging policies first.

JA HUBER: It's been two years since you were terminated from Delta and you've become a bit of a “cyber celebrity.” How do you feel about this? 

QUEEN of SKY: I'm just glad I don't get recognized on the street. I'm actually a very shy person.

[Hearing her story as a fired woman in her thirties and being a single woman myself, I had to ask…]

JA HUBER: As a sassy, single woman, what are you doing now to earn an income? 

QUEEN of SKY: I've just self-published my book [Diary of a Dysfunctional Flight Attendant: The Queen of Sky Blog], which I am selling on my website (www.BlogBasedBooks.com). I'm presently trying to get it into bookstores around the USA. My first review comes out in December's Airways magazine.

[Queen of Sky has also been using her savings and loans to get through to this point].

JA HUBER: Tell me about your book, Diary of a Dysfunctional Flight Attendant: The Queen of Sky Blog. It's a novel in blog format, correct?

QUEEN of SKY: Yes, it's the world's FIRST novel in blog format. It's based on the first nine months of my blog, which led to my termination. It's a very fun read, especially if you're interested in the ins and outs of being an international flight attendant. I'm very proud of it, because it's so unique. And all the response I've gotten from readers so far has been very positive.

JA HUBER: What have you learned about yourself over the past two years?

QUEEN of SKY: I've learned you have to stand up for yourself, because no one else will do it for you. I've learned I am one strong woman and you have to keep fighting for what you believe. Also, since I know who I am and where I am in my life, I have decided not allow my values or artistic vision to be compromised. The latter is why I chose to self-publish my book. The big publishing houses were not too keen on the novel-in-blog-format idea.

JA HUBER: What is the one thing you want the world to know about you? 

QUEEN of SKY: I will not accept unjust and unfair treatment (which includes incorrect and unfair judgments about me based on misrepresentations of my character) and I will fight it to the end. 

JA HUBER: Finally, what's on the horizon for the Queen of Sky?

QUEEN of SKY: Well, hopefully “Queen of Sky” the movie starring Drew Barrymore! 

[Note: visitors to her blog are welcome to vote in the pole as to who should play Queen of Sky in the movie version]

Queen of Sky’s blog, “Diary of a Fired Flight Attendant,” is a journal of sassy-quirkiness and grounded-seriousness as Simonetti moves forward with her life.

More info here: Miami Bankruptcy Lawyers

A quick shout out to Bankruptcy Attorneys Miami for sponsoring this Associated Content Post!

My mother always told me that life could be difficult. However, I never knew what difficult was until I entered the “squeeze years” of my life. I am a 54-year old divorced, working mother who lives with a teenager, has a 33-year old son in the middle of a divorce and bankruptcy, and tries to be a good daughter to my aging mother who was recently widowed.

My life gives new meaning to the term “being stretched in all directions.” Whenever I describe my life to friends, the response I receive is usually a shocked silence. I understand. My life sounds like a bad soap opera. The reality is that life rarely follows a discernible pattern. It simply happens and as it happens, you must decide how to react. I have decided to wade through it with as much humor and dignity as possible.

How I Came to This Place

Four years ago I moved back to my hometown for two reasons, to spend more time with my grandson and to help my parents cope with increasingly overwhelming yard and house responsibilities. The primary reason I wanted to be with my parents, however, was to be present for them with my love and support while my dad died slowly from bone cancer. During the next three years I did their yard work, helped my mother take care of my dad, and held my dad's hand.

Dealing with a Grieving Parent

My parents had lived in the same house in the country for 40 years. After my dad's death, my mother wanted to sell the house and move into town to be closer to me. Since my dad was the undisputed king of the pack-rats, there was a 40-year accumulation of “stuff” that had to be dealt with; a full basement, a full garage, a full barn and an acre of land covered with old building materials that had mostly rotted.

My mother, who was consumed by grief, was so overwhelmed she had no idea what to do. Because I am an only child, there was no one I could share the responsibility with. I had no idea what to do or where to start; but start I did, one box at a time, one carload at a time, for six months of evenings and weekends.

During those six months of dirty, mind-numbing work, I never allowed myself to get angry or bitter. Instead, I embraced the experience for what it was, a trip down memory lane. For in the midst of all that garbage, there were moments of pure joy when I would find some wonderful old toy or other object from my childhood. I would stop what I was doing and show my mother my prize and we would reminisce about another place and time. It was a time of healing and bonding for both of us.

Dealing with an Adult Child's Issues

Once everything was finished, my mother put the house on the market, sold it, and bought a lovely mobile home in town. While getting my mother ready to move, my son and daughter-in-law separated and declared bankruptcy. I was physically and emotionally spent from my experiences of the past months. However, I supported my son's decision and helped him make other living arrangements both physically and financially.

My son depends on me to fulfill certain needs. I understand this as I have some of those same needs with my mother. However, I have learned I have only so much energy, time and resources available. Some days I have more than others. I am always able to offer him love and laughter. Usually, that's enough.

One Day at a Time

I have a teenager who gives new meaning to the word “moody,” a son who fluctuates between sadness, anger, and a beer bottle, and a mother who fluctuates between grief, anger and depression. They are all struggling and need me to be present for them in whatever ways I am able.

Though I am constantly challenged by their needs, I have learned that I CAN be present for them if I first make time for myself. I have learned how to say no without feeling guilt. On Saturdays, I go browsing at the local Goodwill store and every evening I carve out an hour of time to read or take a walk. These “me-times” save my sanity, relieve my stress and keep my sense of humor intact. The “squeeze years” can be brutal, but I don't have to be.

Click our link:Bankruptcy Attorneys Miami for more info

A quick shout out to Bankruptcy Lawyers Miami for sponsoring this Associated Content Post!

Bankruptcy confirmation is required for debtors seeking Chapter 13 protection. Often referred to as 'reorganization bankruptcy' Chapter 13 allows debtors to retain valuable assets and develop a repayment plan to pay off outstanding creditor debts.

Bankruptcy confirmation hearings are necessary to comply with new bankruptcy laws enacted by Congress in 2005. The Bankruptcy Abuse Prevention and Consumer Protection Act require all debtors to repay a portion of their debts when possible and undergo credit counseling through an approved U.S. Trustee agency.

Once bankruptcy petitions are filed, debtors must undergo the means test; a financial tool which compares debtor's income to their states' median income. When debtors earn more than median levels, BAPCPA requires the filing of Chapter 13 bankruptcy and establishment of a confirmed repayment plan.

When earnings fall below median income levels, debtors might qualify for Chapter 7 or 'liquidation bankruptcy' which discharges all outstanding debts.

Debtors are required to submit repayment plans through the bankruptcy court at the time of filing or within 15 days after submitting their petition. Chapter 13 payment plans document the payment amount and schedule. The judge will approve, disapprove or make changes to the repayment plan during the bankruptcy confirmation hearing.

Chapter 13 payments are generally established on a biweekly or monthly schedule. Payments are submitted to the bankruptcy court Trustee who in turn distributes payments to individual creditors.

Once bankruptcy petitions are filed, creditors are notified and a 341 creditors meeting is scheduled. Creditor meetings allow debtors and creditors to meet face to face and discuss the financial setbacks which caused the person to become bankrupt.

Debtors are given the opportunity to explain their situation and ability to repay debts. Bankruptcy lawyers can negotiate with creditors to reduce outstanding balances, lower interest rates, or eliminate penalties and late fees.

Information obtained at 341 creditor meetings is given under oath. Should debtors falsify information they can face criminal charges and their bankruptcy petition will be denied.

Bankruptcy repayment plans generally last three to five years. Debtors must pay Chapter 13 payments in addition to normal monthly expenses. One unexpected financial setback could easily cause debtors to fail out of bankruptcy.

If this occurs, creditors can petition the court seeking bankruptcy dismissal. If approved, debtors lose protection from the court and creditors can commence with collection proceedings.

BAPCPA requirements have made it nearly impossible to file bankruptcy without legal counsel. The new laws require lawyers to submit statements regarding clients' financial status and accuracy of information provided; placing them at risk for legal ramifications if clients are untruthful.

Many bankruptcy lawyers switched to new areas of law, making it challenging for consumers to locate legal counsel. Attorneys who remain in this profession charge higher rates to cover increased business insurance premiums and potential litigation fees.

Filing personal bankruptcy can provide financial relief, but it should be used as a last resort. Before seeking out a lawyer, consider bankruptcy alternatives such as credit counseling, debt consolidation or debt settlement.

More info here: Bankruptcy Lawyers Miami

The Following Blog Post is from Associated Content and sponsored by Miami Bankruptcy Lawyers

If you are in debt and you are considering bankruptcy, you need to learn how to file bankruptcy. This process is meant only for those who are in a severe situation of debt. You must qualify to declare bankruptcy. Once you learn how to file bankruptcy, you can repair your debt problem and move on with your life.

Get a lawyer that specializes in bankruptcy. He will help guide you through the process and take care of a lot of the messy work. For example, he will talk with your creditors so that you can stop being harassed by them and collection agencies. He will also get things started and file your petition.

You will be appointed a trustee by the courts who will take care of your case. He will decide which chapter of bankruptcy you will file. You can file either chapter 7 bankruptcy, liquidation, or chapter 13 bankruptcy, reorganization. Most people are familiar with chapter 7, but it is now more difficult to file chapter 7 where your debts are discharged.

When you learn how to file bankruptcy, you must understand that you aren't getting off free. If you file chapter 13, you will still need to pay your debt. The difference is that your payments will be broken down so that you are able to afford them. Also, you will still need to pay off loans that are exempt including your mortgage, student loans, etc. Also, if you file chapter 7, all your liquid assets and other nonexempt assets will be taken to help pay off your debt. You avoid this if you reorganize your debt.

You will have to attend a meeting of creditors where you creditors are able to ask you questions. This sounds intimidating, but it won't take a long time. They just need to make sure you are being honest about your situation. Your trustee will finish up the rest of the arrangements and you will either have your new payments to make or your debts will be discharged. If your debts are discharged, your creditors will have 60 days to challenge the decision.

When the process is finished, the bankruptcy will remain on your credit report for 10 years. This will impact how easily you will be able to get a loan. Now that you know how to file bankruptcy and you understand what goes into it, you can make a decision. Will you declare bankruptcy or not?

Click our link:Miami Bankruptcy Lawyers for more info

The Following blog post is sponsored by Miami Chapter 7 Lawyers

Almost ten years ago my husband and I went bankrupt. Going bankrupt was something we had never imagined would happen to us. But first I and then he contracted a long-term illness and were unable to work. We went through our savings, cashed in an annuity; sold our second car and anything else we could spare. We were now on social security disability and no matter how hard we tried, we were unable to pay our creditors. The phone calls started day and night, as we grew more frantic. Finally, we faced the fact that we needed to file for bankruptcy.

We saw a bankruptcy attorney who started the process of bankruptcy. Soon the phone calls stopped. (I have since found out that you can write your creditors requesting that they stop calling and contact you only by mail and that this stops the phone calls.)

We were concerned that we would lose our one remaining car or even our home but bankruptcy allows you to keep property that is necessary for daily living. Extra cars or real estate probably does have to be liquidated but each case is different.

We filed for chapter 7 bankruptcy and, even with the new laws, this will still be the most common form of bankruptcy. One difference in the new law is now you must take an approved credit-counseling course before proceeding with bankruptcy. Your attorney can help you find a course.

But how do you find an attorney? Frankly, we found one in the yellow pages. We chose an attorney who specialized in bankruptcy and the cost was $1000. Today, the cost runs from about $1500 to $2000. If you know someone who has gone bankrupt, you might ask him or her for a referral. If your bankruptcy is simple, any competent attorney should be able to handle it.

Finally the day arrives when you go to court. Bankruptcy is handled in the federal courts so you will go to a federal court before a federal judge. This sounds scarier than it is. Basically, the court is a big room filled with about 200 people in the same boat as you. The cases are discharged in about two minutes per person.

After you have been to court, a strange thing happens. We were inundated with car loan offers. We had absolutely no credit and yet, here were all these people wanting to loan us $30,000 so we could buy a new car. We did not bite. After just getting out of debt, we certainly didn’t want to get right back into it.

The hardest thing about bankruptcy is that you have no credit and probably no credit cards. It is difficult to operate in this society without a credit card, although it is easier now that there are debit cards. You can get a credit card through your bank by securing it against a certain amount of money—as low as $200. Credit card companies will also begin to offer you credit cards, but beware. These cards can cost you a bundle. Not only are the interest rates very high but there are a number of charges: the set up fee, the yearly fee, the one time fee, the fee on the fee. If you add up all the fees, they can run up to $300 and more.

A bankruptcy lasts ten years before it is discharged. We are almost at that magic point.

Click our link:Miami Chapter 7 Lawyers for more info

The Following blog post is sponsored by Miami Bankruptcy Attorneys

Filing and being granted a Chapter 7 bankruptcy serves to discharge (eliminate) all debts. Chapter 13 requires the debtor to repay fully those debts which can be paid, and others paid in part or possibly not at all, depending on one's income level and assets.

If a filer's income is greater than the median income for the same size family as theirs in their state, they may not qualify for a Chapter 7 filing provided their disposable income would have room for repayment of some part of their unsecured debt, after subtracting specified allowed expenses.

A debtor with more than $1,010,650 secured debt and $336,900 unsecured debt is not eligible to file for Chapter 13 bankruptcy.

Home owners might want to consider filing for Chapter 13 if they are behind on their mortgage because that filing allows the debtor to keep the house and repay the missed payments included in the repayment plan over time.

There are certain debts that cannot be discharged regardless of which type of bankruptcy is filed including alimony, child support, and certain tax debts. A creditor has the right to try to convince the court that their debt should not be discharged.

Chapter 7 Bankruptcy – An Overview

Chapter 7 bankruptcy is considered to be a liquidation process. It cancels all debts, but allows the court to liquidate (sell) the debtor's property to repay a portion of the debt.

Filing and administrative fees cost $299. There will usually be one appearance at the courthouse. With the advent of the new laws, debtors must now complete credit counseling with an approved agency. (see www.usdoj.gov/ust, “Credit Counseling and Debtor Education”).

Anyone who has already received a bankruptcy discharge in the past six to eight years may not apply for Chapter 7 (depending on which type was filed). Those deemed eligible for a Chapter 13 repayment plan as determined by the new formula based on income, expenses and debt burden are no longer eligible for Chapter 7.

Filing for bankruptcy puts an “automatic stay,” known as an “Order for Relief,” that prevents creditors from further collections activity. That puts a temporary protective order out on garnishments, bank accounts, tangible property and assets, welfare benefits and cut-off from utilities.

A court appointed Trustee determines how much if anything creditors can be paid. Secured debt may be subject to repossession or foreclosure. In the end, this bankruptcy process discharges all debts except those deemed as non-dischargeable by the court.

There are six types of bankruptcy, but the most commonly known are Chapter 7, liquidation for individuals and businesses, and Chapter 13, repayment rehabilitation for individuals. Chapter 11 is most commonly used for reorganization by businesses.

The most common are Chapter 7 and Chapter 13. Recent changes in the bankruptcy laws have established more stringent qualifications for those wanting to file under Chapter 7. Generally, Chapter 7 is a liquidation type bankruptcy. Property that is not exempt under state laws may be taken and sold to repay debts under Chapter 7. Under Chapter 13 Bankruptcy (reorganization) the debtor may keep their property but must arrange to make monthly payments over a specified period of time to repay all or a portion of the debt.

More info on Miami Bankruptcy Attorneys can be found on our main site!

The Following Blog Post is from Associated Content and sponsored by Bankruptcy Attorneys Miami

In 2005, a charade took place on the floor of the House and Senate. It is now called the “Bankruptcy Abuse Prevention and Consumer Protection Act” (BAPCPA). Proponents willfully deceived the American people in arguing that the bill would 'protect consumers' from those who abuse the system.

The new law strengthened bankruptcy laws not for we the people, but for creditors who make it a business practice to exploit American consumers for the purpose of profit and gain.

Assault on the Middle Class

I have never wondered why our congressmen and women are called “Representatives,” nor is it a mystery as to why the body of government to which they are elected is called the “House of Representatives.” It is our Congress' sole duty to serve the interests of the people who sent them to Washington.

The framers of our Constitution gave Congress the power “to establish… uniform Laws on the subject of Bankruptcies throughout the United States, (Article I, Section 8)” not for the protection of creditors, but in order to protect hard working citizens. However, the BAPCPA is a perversion of ideals.

When signing the act into law, President Bush said, “In recent years, too many people have abused the bankruptcy laws. They've walked away from debts even when they had the ability to repay them. This has made credit less affordable and less accessible, especially for low-income workers who already face financial obstacles. The bill I sign today helps address this problem.”

His words could not be further from the truth. Less than 2% of all bankruptcies filed were filed under fraudulent motives.

Unlike when they issue credit, the credit companies perform a number of income, asset and debt verifications when a consumer files for bankruptcy. They have the right to interview the consumer, while under oath, and they receive a representative from the US government to look out for the interests of the creditors during the bankruptcy proceedings. All of this before the BAPCPA.

What the actions of the Congress and the President have done, in actuality, is place the “low income workers” in a state of financial bondage. If their jobs are lost, if they get sick, if a spouse dies, they cannot file bankruptcy protection to protect their assets thanks to the true constituency of the House and Senate; the greedy gluttonous creditors, who now can and do take their home, vehicles, and any other assets.

BAPCPA Constrictions: Income as a litmus test to file Chapter 7

As a former professional credit counselor, I was a training specialist for the largest non-profit credit counseling agency in the country. I developed training material to ensure that my agency was certified by the Executive Office of the United States Trustee (EOUST).

At one time, I referred several of my clients to seek legal advice regarding a Chapter 7 bankruptcy on a daily basis. I am intimately familiar with the circumstances surrounding bankruptcy and the provisions of the BAPCPA.

A Chapter 7 Bankruptcy allows a consumer to receive full debt relief from creditors, and write off unsecured debts. If the debtor owns assets, the assets may be used as compensation to creditors.

The BAPCPA prevents average Americans who need creditor protection under the full extent of the law from receiving this right that the framers of the Constitution clearly envisioned by requiring applicants to earn less than the median amount of income for the state. Taking into account even part-time employment, this number is always below any livable wage, often times less than $19,000 a year. All other consumers are forced into a constrictive Chapter 13.

In a Chapter 13, consumers are forced to pay all income that is in addition to their housing and food costs to a trustee, who in turn disburses it to the creditors. This provides no emergency income in the event of the smallest surprise, such as a flat tire. As a result, two thirds of Chapter 13 bankruptcies fail in the first year.

BAPCPA supporters ignore the facts in falsely claiming that the bankruptcy system was ever abused. The top three causes for the filing of Chapter 7 Bankruptcy are medical expenses, which typically surround medical emergencies, such as cancer or automobile accidents; divorce, and reduction of income, and layoffs. All of these causes for bankruptcy are completely out of the control of the consumer and are subject to misfortune, random chance, and swaying markets.

The typical scenario…

Suppose a two income family (the Johnsons) has an income of $100,000 a year. The husband makes $50,000 a year at the Post Office, while the wife makes $70,000 a year as a programmer. They have two children, two cars, and a mortgage. Their savings, debts, and expenses are reasonable for their income.

Then, the wife's job is moved overseas – to India – for example. For a while, the Johnsons use their savings to stay afloat, and perhaps begin to use credit cards to help afford gasoline and groceries.

After a while, time runs out. Mrs. Johnson can't find a job in her salary range. The jobs simply no longer exist. She is forced to accept a job at a $40,000 pay cut. Mr. Johnson takes a part time job to make up for lost income, but Mrs. Johnson must stay home with the kids after school. The increasing cost of daycare simply outweighs any benefit that taking second job would have had.

Struggling, the family can afford to pay their mortgage, utilities, and car payments. With help from their church, they can even afford enough food for their children to eat. However, they cannot afford their Credit Card payments.

Now imagine if Mr. Johnson passed away and there was only enough life insurance to cover the bills.

What if Mrs. Johnson got cancer, and could not work?

Even in the face of these types of hardships, many American families could persevere and overcome such financial adversity if it were not for the creditor's policies, which literally force consumers in to a position where they require bankruptcy protection.

Unfortunately, under the BAPCPA, the Johnsons would lose their home, and their vehicles, because their Chapter 13 payment would be too high in all three scenarios.

None of these situations are fictional; they are all based on real events.

Adding Injury to Injury

In its lines and lies, the BAPCPA contains an unfunded mandate. It requires that consumers participate in a credit counseling session with an accredited agency. The mandate is unfunded, because Congress provided no funds to pay for the counseling.

Credit Counseling agencies typically provide free counseling to all consumers. This is because a certain percentage of those who go through counseling will elect to participate in a debt management plan (DMP); the number is approximately 25%.

The creditors of these 25% pay for a portion of the DMP through what is called “fairshare.” Consumers pay for the rest of their own program through an initial setup fee and/or monthly fees.

These consumers are also coming to a Credit Counseling Service because they think that they can avoid bankruptcy. None of them want to file – no one does. Studies prove that over 90% of Americans think that filing bankruptcy is immoral. As a counselor, when it was a clients only option, I often had to talk them into it just to avoid losing their home.

With bankruptcy counseling, however, the consumer already has no option. There is not a chance that they will go on a debt management plan, and the counseling agency is forced into a position where they have to charge for a service that the consumer does not need in the first place, and that the agency doesn't want to provide.

Ivan Hand Jr., the president and chief executive of Money Management International Inc. (MMI), the nation's largest credit counseling organization, and this reporters former boss, told the Washington Post, “Typically, consumers are too far gone by the time they get to us.”

Of the 15,000 bankruptcy counseling sessions that MMI conducted within the first four months of the law going into effect, only 43 consumers were eligible for a DMP, and of those only four signed up.

The President of the Consumer Credit Counseling Service of Greater Atlanta also reported that virtually none of the 12,539 sessions it had conducted found debtors that qualified for anything other than bankruptcy.

Immoral Practices of the Credit Industry

It is a common practice for creditors to increase a consumer's interest rates upon an inspection said consumer's credit report and discover that the consumer has additional creditor debts. These types of interest rate hikes often times exceed 29.0% APR.

The rationale behind such a move on the part of the creditor is that they believe that the consumer will inevitably file bankruptcy, so they may as well force the consumer into making a minimum payment that only covers interest and does not effectively reduce the principle balance charge accounts. Now, with Chapter 7 nearly impossible, the interest rates continue to rise.

On numerous occasions, the creditors charge interest rates that are so high that the finance charges actually exceed the minimum payments. Before long, a consumer who was making their creditor payment in full and on time is now over-the-limit due to extreme finance charges is subject to hefty over-limit penalties. Such penalties make bad situations worse, and forces consumers into the dire position where they are unable to purchase food, or even afford their housing and utility payments.

It is irresponsible for the men and women currently seeking the office of the President of the United States, whose constituency is the people, to leave in place laws that reward creditors for their own irresponsibility and insatiability.

I hereby submit that creditors are not responsible in the issuing of credit. When applying for a home loan, a mortgage lender or brokerage will perform a budget analysis and verify the income of their potential customers. The question needs to be asked, why do creditors not also verify proof of income and a consumer's capacity to repay debt before issuing high-limit unsecured revolving charge accounts? From the candidates, the answer must be demanded.

Exploiting the elderly, children, and the under-educated

Every day elderly American citizens on a fixed Social Security income, the labor of whom this country was built upon, receive letters from creditors offering high-limit credit cards. These are Americans who are retired; because of their age, and perhaps also because of illness, they cannot work, and because of the nature of their limited income they often times cannot afford necessary medications, an adequate amount of food, or to turn on their heat in winter and their air conditioning in the summer. To these Americans the gifts of credit cards are received as “a miracle from God,” as I was told so often by elderly consumers.

It is only until the creditors increase their minimum payments do these consumers realize that they cannot afford to juggle a debt load that will take over forty years to pay off making the minimum payments, which is an absurdity to a seventy year old consumer.

Opposite of the class of our citizenry who laid the groundwork for today's America, the creditors also find easy prey in America's future; our high school and college students. At the age of eighteen, when most teenagers are either preparing to graduate from high school or go into college, they are bombarded by a barrage of offers for “free money” from a never-ending slew of credit card companies.

Eighteen and nineteen year olds do not yet have the life experience to understand such financial concepts that are necessary in order to responsibly manage one or more unsecured revolving accounts. After all, they do not even possess the responsibly to consume alcohol, which is why the drinking age is twenty-one.

For the creditors to take responsibility for their own actions would be as simple as requesting a recent pay stub from a consumer to verify that the income is available, along with standard credit checks which are already in place.

The McCain Response

In 2005, I attempted to contact both of my Senators, including Arizona Sen. John McCain, who is again running for President. I provided them both with facts about how the bill would hurt working class Americans. Yet, in light of the issues, McCain calls the legislation, “…an important step toward a fair and balanced approach to restoring personal responsibility to our federal banking system,” saying nothing of the person responsibility of the creditors, who prey on the weak.

McCain expressed his “surprise” that bankruptcies were being filed in record numbers at a time of “low unemployment” and “high wages.” Perhaps he meant low unemployment in the Philippines, China and India, where many of our jobs have gone. As for high wages, he could only be referring to his campaign contributors, because wages for average Americans are at an all time low.

View the full letter here. The content of the letter is unaltered.

*Only my personal mailing address is blacked out and replaced with the URL of this website. The backside of the letter has been added to the front.

Thomas Jefferson's forewarning

One President once said, “I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a moneyed aristocracy that has set the Government at defiance.

“If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.” It was Thomas Jefferson, and he said it in an 1802 letter.

I urge all world citizens tell the presidential candidates to heed the warning of Thomas Jefferson, the drafter of the Declaration of Independence, the third President of the United States, and key founding father.

If they act in support of the BAPCPA to strengthen bankruptcy laws for the creditors and weaken them for citizens, then you they will have ignored Jefferson's warning from 200 years ago, and you will have brought his fear to realization.

Please, do not let America's sons and daughters wake up one day homeless, not in this country, which was founded on principals of liberty and equality; as opposed to the exploitation and prejudice that the credit industry fosters for profit.

Be sure to visitBankruptcy Attorneys Miami at the main site!

http://www.shriverandgordon.com
Shriver & Gordon, P.C., Attorneys at Law, is a Georgia based law firm representing clients in matters concerning family law.

The Following Story is sponsored by Miami Bankruptcy Attorneys

The Queen of Sky was born in January 2004 when Ellen Simonetti began her blog, “Diary of a Flight Attendant,” to help cope with the September 2003 loss of her mother. She was later fired for blogging. Everyone who blogs and works in corporate America needs to hear her story, it's on course to end happily.

Simonetti was a Delta Air Lines flight attendant and dubbed herself “Queen of Sky.” Like so many other bloggers, blogging was a therapeutic release to cope with her mother’s death to cancer. I recently chatted with Queen of Sky to learn about her experience and where the road is leading her.

JA HUBER: You started your blog, “Diary of a Flight Attendant” in 2004 it's now called, “Diary of a FIRED Flight Attendant.” What happened in September and October of 2004?

QUEEN of SKY: One day in late September 2004, I came home to a bunch of messages on my answering machine from Delta supervisors. They said to call them urgently about my trip the next day. I called them back, thinking perhaps my trip (to Rome) had canceled. Instead, they simply told me I couldn't fly the trip. I asked them why and they came back after a pause and said, “It's about some pictures on the web.”

I was in complete shock and when I hung up the phone. I immediately deleted all pictures of me and coworkers in uniform from my blog. After I was notified a week later I had been officially suspended without pay (because of my “inappropriate” pictures in uniform on my personal blog), I did some research on the internet and found plenty of other MALE Delta employees in their uniforms on the web (MySpace, AOL Hometown, Match.com, etc.), who were saying not so flattering things about themselves and their employer. So I filed a sex discrimination complaint with the EEOC (Equal Employment Opportunity Commission).

Delta fired me over the phone two weeks later. [You can listen to the recording on her blog]. I then filed a lawsuit against Delta in September 2005, but they filed BK (bankruptcy) a week later and my case is still pending.

JA HUBER: What advice do you offer bloggers as a result of your experience? 

QUEEN of SKY:  My advice is to stay anonymous or keep your blog set on “friends only.”  Remaining anonymous is harder than most people think. I never used my airline's name in my blog prior to being fired. And some people who have never used their employers' names and have not posted pictures of themselves have also been found out and terminated. So the only really safe stance is not to blog at all, especially if you work for a very blogophobic company. Otherwise, check your company's blogging policies first.

JA HUBER: It's been two years since you were terminated from Delta and you've become a bit of a “cyber celebrity.” How do you feel about this? 

QUEEN of SKY: I'm just glad I don't get recognized on the street. I'm actually a very shy person.

[Hearing her story as a fired woman in her thirties and being a single woman myself, I had to ask…]

JA HUBER: As a sassy, single woman, what are you doing now to earn an income? 

QUEEN of SKY: I've just self-published my book [Diary of a Dysfunctional Flight Attendant: The Queen of Sky Blog], which I am selling on my website (www.BlogBasedBooks.com). I'm presently trying to get it into bookstores around the USA. My first review comes out in December's Airways magazine.

[Queen of Sky has also been using her savings and loans to get through to this point].

JA HUBER: Tell me about your book, Diary of a Dysfunctional Flight Attendant: The Queen of Sky Blog. It's a novel in blog format, correct?

QUEEN of SKY: Yes, it's the world's FIRST novel in blog format. It's based on the first nine months of my blog, which led to my termination. It's a very fun read, especially if you're interested in the ins and outs of being an international flight attendant. I'm very proud of it, because it's so unique. And all the response I've gotten from readers so far has been very positive.

JA HUBER: What have you learned about yourself over the past two years?

QUEEN of SKY: I've learned you have to stand up for yourself, because no one else will do it for you. I've learned I am one strong woman and you have to keep fighting for what you believe. Also, since I know who I am and where I am in my life, I have decided not allow my values or artistic vision to be compromised. The latter is why I chose to self-publish my book. The big publishing houses were not too keen on the novel-in-blog-format idea.

JA HUBER: What is the one thing you want the world to know about you? 

QUEEN of SKY: I will not accept unjust and unfair treatment (which includes incorrect and unfair judgments about me based on misrepresentations of my character) and I will fight it to the end. 

JA HUBER: Finally, what's on the horizon for the Queen of Sky?

QUEEN of SKY: Well, hopefully “Queen of Sky” the movie starring Drew Barrymore! 

[Note: visitors to her blog are welcome to vote in the pole as to who should play Queen of Sky in the movie version]

Queen of Sky’s blog, “Diary of a Fired Flight Attendant,” is a journal of sassy-quirkiness and grounded-seriousness as Simonetti moves forward with her life.

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Thanks to Bankruptcy Attorneys Miami for sponsoring the following blog post

There is a lot of confusion over the new bankruptcy laws that went into effect in October of 2005. Now that more than a year has passed, people who were not considering bankruptcy before the new laws went into effect may be considering it now. Of course, the most powerful recourse for individuals contemplating bankruptcy is still filing for Chapter 7 protection. However, filing for Chapter 7 protection is not as simple under the new bankruptcy laws as it was under the old. Here is how you can determine if you are eligible to file for Chapter 7 under the new bankruptcy laws.

The new bankruptcy laws governing Chapter 7 set forth criteria for filing, whereas under the old bankruptcy laws, eligibility was chiefly in the judge's discretion. Unless you are a disabled veteran whose debts were incurred during active duty or unless your debts came primarily from the operation of a business, you will be required to meet these criteria in order to be found eligible to file for Chapter 7 bankruptcy protection.

First, you must measure your “current monthly income” against the median income for a family of your size in your state. It is important to note that your “current monthly income” is your average income over the six month period just before you file, not your income at the time you file. Once you have calculated your current monthly income, you must compare it to the median income for your state. (You can find the table at the United States Trustee's website, listed in the Resources section below.) If your income is less than or equal to the median income, you are eligible to file for Chapter 7 bankruptcy protection. If it is higher than the median, you must pass the “means test” in order to qualify.

The “means test” determines whether you have enough “disposable income” to repay some or all of your unsecured debts over a five-year repayment program, (i.e. under a Chapter 13 bankruptcy plan). “Disposable income” is money left over after subtracting certain allowed expenses (e.g. rent, utilities, food) and required debt payments (e.g. student loans). Note that the amounts for your allowed expenses are determined by the IRS and may be less than you actually spend.

Once you have subtracted your certain allowed expenses and required debts from your current monthly income, what you have left is your disposable income. If your disposable income is less than $100, you pass the means test and are eligible to file for Chapter 7 bankruptcy protection under the new laws. If your disposable income is more than $166.66, you fail the means test and are not eligible to file for Chapter 7.

Of course, it is more important than ever that you file your Chapter 7 bankruptcy petition with the aid of an attorney. And it is also more important than ever that you select an attorney who knows the new bankruptcy laws and doesn't simply handle bankruptcies for extra income, or as a side job. A good bankruptcy attorney will provide you the best opportunity for being eligible for Chapter 7 bankruptcy protection under the new laws.

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The Following Story is sponsored by Bankruptcy Lawyers Miami

The all-round economic turmoil is causing untold hardships on millions of people, who are getting increasingly frustrated by the turn of events. Even people with good intentions of paying off their debts, are forced into the swirling waters of loan indebtedness due to sudden events like unemployment, prolonged illness or divorce proceedings. The bleak economic situation coupled with unexpected happenings in the personal life is taking a heavy toll on individuals, who are increasingly turning to filing bankruptcy petitions unable to cope up with the stress.

Even though most of the bankruptcy filings are due to mismanagement of personal finances and wasteful spending of money, some are drawn into it due to the economic condition. Initially, most will try to solve their problems by using the credit cards, which is only a temporary solution. Once the due dates for credit card payments come, the problems mount irrevocably.

One way to tackle bankruptcy problems is to consolidate all your loans which eliminate some of the expensive loans to an extent. This way you can have the benefit of paying lower monthly payments every month. If this is the case, you can safely come out of the financial mess without filing bankruptcy.

If the problems persist even after consolidation and you are mired in problems without solution in sight, then bankruptcy will be the only options. It provides some solace from the harassing debtors, be it the bankers or the mortgage lenders. It all boils down to your financial situation, before the filings. This should be your last option as the consequences of bankruptcy are many, which must not be overlooked for short term peace of mind.

The important point to note is Bankruptcy is not a panacea for all your ills and will not provide complete comfort from all loans. Surely, all your credit card and consumer loans would be waived, but still you have the responsibility to pay your student loans, alimony, child support, criminal fees and IRS bills. For a complete understanding of bankruptcy laws, you can take the services of a reputed lawyer, who can enlighten you on the pros and cons of bankrupt filing.

The social stigma attached to bankruptcy and the poor availability of credit thereafter should be given serious thought before filing a petition. The life after bankruptcy will not be the same at least for the first five to seven years. Moreover, you have to start your life all over again with little help coming from any source. You have to build your credit history again from scratch, which is difficult but not impossible to achieve. The suspicious eyes of the lenders have to be tolerated which may cause embarrassment time and again. This may cause some suffering that has to be endured in bankruptcy filings. If age is not on your side, these things are difficult to cope. All these factors must be kept in mind while filing any bankruptcy proceedings.

You can resort to bankruptcy after exhausting all other options only as a last step just to get some peace of mind.

You'll find more info on our main site Bankruptcy Lawyers Miami

The Following Story is sponsored by Miami Bankruptcy Lawyers

Bankruptcy confirmation is required for debtors seeking Chapter 13 protection. Often referred to as 'reorganization bankruptcy' Chapter 13 allows debtors to retain valuable assets and develop a repayment plan to pay off outstanding creditor debts.

Bankruptcy confirmation hearings are necessary to comply with new bankruptcy laws enacted by Congress in 2005. The Bankruptcy Abuse Prevention and Consumer Protection Act require all debtors to repay a portion of their debts when possible and undergo credit counseling through an approved U.S. Trustee agency.

Once bankruptcy petitions are filed, debtors must undergo the means test; a financial tool which compares debtor's income to their states' median income. When debtors earn more than median levels, BAPCPA requires the filing of Chapter 13 bankruptcy and establishment of a confirmed repayment plan.

When earnings fall below median income levels, debtors might qualify for Chapter 7 or 'liquidation bankruptcy' which discharges all outstanding debts.

Debtors are required to submit repayment plans through the bankruptcy court at the time of filing or within 15 days after submitting their petition. Chapter 13 payment plans document the payment amount and schedule. The judge will approve, disapprove or make changes to the repayment plan during the bankruptcy confirmation hearing.

Chapter 13 payments are generally established on a biweekly or monthly schedule. Payments are submitted to the bankruptcy court Trustee who in turn distributes payments to individual creditors.

Once bankruptcy petitions are filed, creditors are notified and a 341 creditors meeting is scheduled. Creditor meetings allow debtors and creditors to meet face to face and discuss the financial setbacks which caused the person to become bankrupt.

Debtors are given the opportunity to explain their situation and ability to repay debts. Bankruptcy lawyers can negotiate with creditors to reduce outstanding balances, lower interest rates, or eliminate penalties and late fees.

Information obtained at 341 creditor meetings is given under oath. Should debtors falsify information they can face criminal charges and their bankruptcy petition will be denied.

Bankruptcy repayment plans generally last three to five years. Debtors must pay Chapter 13 payments in addition to normal monthly expenses. One unexpected financial setback could easily cause debtors to fail out of bankruptcy.

If this occurs, creditors can petition the court seeking bankruptcy dismissal. If approved, debtors lose protection from the court and creditors can commence with collection proceedings.

BAPCPA requirements have made it nearly impossible to file bankruptcy without legal counsel. The new laws require lawyers to submit statements regarding clients' financial status and accuracy of information provided; placing them at risk for legal ramifications if clients are untruthful.

Many bankruptcy lawyers switched to new areas of law, making it challenging for consumers to locate legal counsel. Attorneys who remain in this profession charge higher rates to cover increased business insurance premiums and potential litigation fees.

Filing personal bankruptcy can provide financial relief, but it should be used as a last resort. Before seeking out a lawyer, consider bankruptcy alternatives such as credit counseling, debt consolidation or debt settlement.

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Should a person file bankruptcy? This a personal decision greatly influenced by the amount of serious debt and your ability to meet the original payments or pay the full amount. Being hassled by creditors when you are broke is nerve wracking for starters. Secondly, the decision to file should not be made solely to stop demanding creditors. Though filing temporarily stops creditors from engaging in out-and-out enforcement lawsuits, secured creditors can apply for “relief from the stay” and then continue their efforts to repossess or foreclose. Furthermore certain kinds of debts among them, student loans, alimony and support obligations, drunken driving restitution, and debts incurred through fraud can't be discharged in bankruptcy.

Depending on your circumstances, bankruptcy may or may not make sense for you. If after the bankruptcy you will be no better off than you were before, why do it? The decision as to whether and when to file a bankruptcy petition should be based upon the facts of your individual case.

New bankruptcy laws are expected to limit the value of the homestead exemptions. Also, new Ch. 7 restrictions will prevent anyone earning over the state median income from filing, Ch. 13 payments will be increased, and judges will lose judicial discretion imposing mandatory sanctions upon debtors in many new circumstances. These new laws narrowly missed passage each year since 2001, and may become effective at any time. Now, more than ever, timing and planning are critical.

Most Ohio bankruptcy attorneys who special in consumer/debtor cases offer free initial consultations. Virtually all private attorneys welcome opportunities to meet qualified potential clients. After debtors become familiar with current requirements, initial consultations offer an excellent opportunity to explore options and receive free legal advice, before deciding upon any course of action. If you have considered filing, make a detailed list of questions. Meet with several lawyers. By comparing costs, benefits and options without obligation, your most profitable path will become clear.

There are specific chapters of the federal bankruptcy law. US bankruptcy Court proceedings for individuals are usually files under Chapter 7 which is known as straight bankruptcy, and involve taking most of the borrower's property. Basically, the court appoints a trustee to sell off the assets and distribute the cash among the creditors. Proceedings under Chapter Thirteen (known as wage earner's bankruptcy) involve the borrower proposing a plan for repaying a portion of the debt in installments from the borrower's income.

Once the US bankruptcy court process ends, the borrower is no longer liable for their debts. This occurs when the bankruptcy court enters a discharge order in a Chapter Seven case or the borrower has paid the debts due to the credit granters according to a plan in a Chapter Eleven or a Chapter Thirteen case. What this means is that the court has discharged the borrower from the debts that they incurred. The borrower then starts over again with a clean financial slate, but the record of the bankruptcy will remain on the borrower's credit record for up to ten years; which can cause problems with some creditors and lenders.

Bankruptcy may be the best or only, solution for those suffering from extreme financial hardship. However, it should be utilized exclusively as a last resort, since it always has long lasting consequences. Be sure to consult a bankruptcy lawyer before resorting to filing bankruptcy as a means of solving your economic troubles because it is not a good to ever go into US bankruptcy court representing yourself as you are not as familiar with bankruptcy laws as lawyers are.

While it is possible to file a bankruptcy case without the assistance of an attorney, it is extremely difficult to do so successfully. Hiring an attorney is recommended. The court is not able to give legal advice or help you fill out the forms.

You are strongly encouraged to consult with an attorney in order to determine the rights and obligations that apply to your individual situation. Those considering bankruptcy should be aware of the following: Filing for bankruptcy protection is not free. How much does it cost? The filing fee for a Chapter 7 is $200.00 .The filing fee for a Chapter 13 is $185.00.

Not all debts are dischargeable. Such as Secured creditors retain some rights which may permit them to seize property, even after a discharge is granted. Spousal and child support obligations and most tax debts are not dischargeable.

Within 15 days of the filing of a bankruptcy petition, schedules of the debtor's assets and liabilities must be filed. Failure to timely file the appropriate schedules may result in dismissal of the bankruptcy and the barring of the debtor from filing again for 180 days (six months).If a case is not dismissed and a discharge is entered by the court, the debtor is prohibited from being granted another discharge under chapters 7 and 11 within six years. Fraudulent information or acts by the debtor are grounds for denial of a discharge and may be punishable as a criminal offense. Married people file a joint petition. A joint filing is the filing of a single petition by an individual and the individual's spouse. Only people who are married on the filing date may file a joint petition. Unmarried persons, corporations and partnerships must each file a separate case. If you are an individual and have a business which is not a partnership, corporation, or business trust that is a registered entity in a state or foreign country, you should list the business as a “dba” (doing business as) on your petition. However, yours will not be considered a joint petition because the business is not an independently-recognized legal entity.

If you need to start your case quickly, you can file only those documents indicated as minimum documents required for filing. All additional documents must be filed within the time indicated. Your failure to timely file additional required documents or seek an extension of time to do so may result in dismissal of your case, denial of discharge, or the imposition of sanctions.

The clerk's office does not supply Official Bankruptcy Forms or sample plans. However, Official Bankruptcy Forms may be purchased at local stationery stores or downloaded from this web site http://www.uslegalforms.com under bankruptcy forms.

Type the information on the forms, if possible. A response is necessary for every question. If your answer is “none,” and there is no “none” box to check, put “N/A.” Use continuation pages when you run out of room. Sign each form where required. If filing a joint case, make sure that your spouse signs too.

Prepare your creditor matrix (a mailing list of all your creditors) according to the matrix format instructions. The clerk's office uses an Optical Character Reader to scan matrices and if you do not follow the instructions exactly, the scanner will not be able to read the matrix properly. Mailing matrices MUST be typed.

After a debtor has filed for bankruptcy protection, creditors are notified of the filing and the existence of the automatic stay by the bankruptcy court. Creditors will be given information regarding the 341 meeting, as well as deadlines for filing proofs of claim. The hearing is not presided over by a judge but an administrator. Creditors will be allowed to ask a few questions but more detailed interrogations are not permitted and must be reserved for discovery or a hearing presided over by a judge. The proper place to file for bankruptcy is the local bankruptcy court where the debtor resides or owns property.

The length of time needed to complete a bankruptcy depends upon the type of case filed. In a typical Chapter 7 bankruptcy case, a discharge will granted after the time period allowed for challenging the discharge has elapses, usually sixty days after the first date set for the 341 meeting. This usually means a discharge is granted about four months after the petition for bankruptcy is filed. In a Chapter 13 bankruptcy case, because the bankruptcy plan is usually anywhere from three to five years, the discharge is granted after the plan has been completed.

The Ohio Bankruptcy System is divided into 2 federal districts. Each of these districts are subdivided into divisions which serve specific counties

The Ohio Bankruptcy Court for the Northern District is comprised of five divisions serving 40 counties. Toledo Division covers the counties of Williams, Defiance, Paulding, Van Wert, Mercer, Fulton, Henry, Putnam, Allen, Auglaize, Lucas, Wood, Hancock, Hardin, Ottawa, Sandusky, Seneca, Wyandot, Marion, Erie, and Huron County. Cleveland Division covers the counties of Loran, Cuyahoga, Lake, and Geauga County. Youngstown Division covers the counties of Ashtabula, Trumbull, Mahoning, and Columbiana County. Akron Division covers the counties of Medina, Summit, and Portage County. Canton Division covers the counties of Crawford, Richland, Ashland, Wayne, Holmes, Stark, Tuscarawas, and Carroll County.

The Northern District provides copies of records, local rules, schedules and official filing instructions. The instructions provided are general, and are not a substitutive for legal advice. For instance, the information provided does not adequately explain the benefits and burdens of each chapter for debtors or the long term effect of filing. The Code is specific: judges, clerks and personnel are prohibited from providing what may be construed as legal advice. This rule of law applies equally to debtors, creditors and parties in interest. With new laws looming on the horizon, now, more than ever before, qualified legal advice is a necessity before initiating any suit. County bar associations all typically provide referrals to local attorneys.

The Ohio Bankruptcy Court for the Southern District maintains three offices which serve 47 counties. The southern District maintains offices in Cincinnati, Columbus and Dayton. The Courts jurisdiction extends over the counties of Darke, Preble, Butler, Hamilton, Shelby, Miami, Montgomery, Warren, Clermont, Logan, Champaign, Clark, Greene, Clinton, Brown, Union, Madison, Fayette, Highland, Adams, Delaware, Franklin, Pickaway, Ross, Pike, Scioto, Morrow, Knox, Licking, Fairfield, Hocking, Vinton, Jackson, Lawrence, Coshocton, Muskingum, Perry, Morgan, Athens, Meigs, Calla, Guernsey, Noble, Washington, Harrison, Belmont, Monroe, Jefferson County.

The Southern District provides examples of petitions, schedules, forms, local rules and official instructions that may be useful when filing. Be aware that instructions provided are general, and are not a substitutive for legal advice which may provided by a qualified attorney. The Code prohibits judges, clerks and personnel to provide debtors with information that may be construed as legal counsel. This provision applies equally to debtors, creditors, and parties in interest. Individual filing pro se may call trustees and inquire about case status. Trustee offices generally explain the basis of all objections filed.

The majority of courts allow either electronic filing or paper filing. A small number of courts only allow electronic filing. Likewise, a small number of courts only accept paper filings. The trend however is clear: all courts will eventually accept only electronic filing and will probably continue to accept diskettes at the clerk's office rather than requiring only online submission. The goal adopted by the U.S. Court system apparently requires the elimination of paper documents by 2010.

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Thanks to Miami Bankruptcy Attorneys for sponsoring the following blog post

In 2001 and 2002, Wes Wannemacher charged $3,200 on a new Chase credit card to pay for expenses related to his wedding. Over the next six years, he paid about $6,300 dollars toward that debt, yet in February 2007 he still owed $4,400.

How could he pay nearly double his original debt and still owe more than $4,000?

As he explained in testimony before the Senate Permanent Subcommittee on Investigations, Wannemacher was socked with $4,900 in interest charges, $1,100 in late fees, and 47 over-limit fees totaling $1,500, despite going over his $3,000 credit limit by a total of $200 on just three occasions.

Credit cards have become a fixture of U.S. economic life, with the average American household owning five different cards. While the credit card industry has provided many consumers with easy access to credit, it has also created enormous problems and contributed to record levels of personal bankruptcy filings.

The number of bankruptcy cases filed in federal courts rose 12.8 percent in the 12-month period ending March 31, 2006, according to statistics released by the Administrative Office of the U.S. Courts. Bankruptcy cases totaled 1,794,795 for that period, compared to 1,590,975 bankruptcy cases filed in the 12-month period ending March 2005.

But what exactly is bankruptcy?

Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as “liquidations” or “reorganizations.”

Chapter 7 bankruptcy is the liquidation variety where property is sold (liquidated) to pay off as much of your debt as possible, while leaving you with enough property to make a fresh start.

Chapter 13 is the most common type of “reorganization” bankruptcy for consumers where you repay your debts over a period of years.

Both kinds of bankruptcy have numerous rules, and exceptions to those rules, about what kinds of debts are covered, who can file, and what property you can and cannot keep.

There are several key changes to the new bankruptcy law, called the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). The three major changes to the law that will affect the most people are the ticket in, the means test, and the ticket out.

The “ticket in” is simple a credit counseling session that the person wishing to file bankruptcy must attend. You must attend this credit counseling session six months prior to applying for bankruptcy.

The bankruptcy court determines whether or not you can qualify for chapter 7 bankruptcy. Under the new law, your income will be tested by a two-part “means test”. The first test is a formula that exempts certain expenses (rent, food, etc.) to determine if you can afford to pay 25 percent of your unsecured debt, such as credit card bills. Next, your income will be compared to your state's average income.

The court will not allow you to file chapter 7 bankruptcy if your income is above average for your state and you are able to pay 25 percent of your unsecured debt. Under the new bankruptcy law, the court may allow you to file under chapter 13, though.

If your income falls below your state's average but you are able to pay 25 percent of your unsecured debt, you may be able to file chapter 7, but the bankruptcy court will still have the authority to require you to file chapter 13 instead if the court believes you would be abusing the system by filing under chapter 7.

The “ticket out” for the new bankruptcy law is attending a financial education class from an approved provider before your bankruptcy can be finalized. The United States Trustees Office approves the class providers.

Also under the new law, the court will apply living standards derived by the IRS to determine what is reasonable to pay for food, rent, and other expenses to determine how much you have available to pay on your debts.

So, your life will be dictated by standards that may be unrealistic for your family by the state standards and the laws lobbied for by the credit card companies. Not to mention the long term damage a bankruptcy does to your credit rating and future lend ability. So bankruptcy should only be considered as a last ditch effort of debt relief, left only for the desperate.

Be sure to visitMiami Bankruptcy Attorneys at the main site!

A quick shout out to Bankruptcy Attorneys Miami for sponsoring this Associated Content Post!

It's odd that only a day after members from both the Goldman and Brown family appeared on the Oprah show to talk about their fight to obtain the rights to O.J. Simpson's infamous book 'If I Did It' that he'd be back in the news. However, this time, it's not due to domestic violence charges, murder or a book. The police are now looking at him in connection to a recent robbery at a casino-hotel.

The casino-hotel in question is the Palace Station Hotel and Casino located just west of the Las Vegas strip. It includes a 430-room Courtyard Hotel and a 500-room, 21-story hotel tower. This Las Vegas staple stays open 24 hours a day. O.J. was allegedly on it's premises during the time of the robbery.

The theft allegedly occurred on Thursday, September 12 in one of its rooms. Sports memorabilia were said to be stolen from a customer's hotel room. A spokesman for the Las Vegas police, Jose Montoya, told the press that O.J. Simpson was questioned in regards to the matter. No other details were offered to the press. However, new information surfaced once a witness, Thomas Riccio, contacted a local news station.

In an interview with a reporter affiliated with the Las Vegas television station KVVU, Thomas Riccio began to speak out about the events surrounding the theft. He works for Universal Rarities, an auction house out of California. According to Riccio, a customer contacted him recently about some personal items belonging to Simpson. These items had been confiscated from Simpson because he owed this particular party money. Apparently, O.J. disagreed that his personal memorabilia would be an even exchange for his debt. As a result, he (along with others) went to the hotel room of this anonymous party and re-claimed the goods.

Although Simpson was questioned by the Las Vegas police afterwards, he was not arrested on any charges. The police are still investigating the details of this event. As a result, O.J. is now stuck (at his own free will) in Las Vegas until the probe is over. Unfortunately, his inability to leave town goes in conflict with a court appearance pending in Miami, Florida.

O.J. Simpson was supposed to testify in a bankruptcy case for his oldest daughter. However, due to this recent event, he is unable to attend the hearing. This led to its cancellation. No news yet of any future dates.

Source for story:
http://www.cnn.com/2007/US/law/09/14/simpson/index.html
http://www.cnn.com/2007/US/law/09/14/simpson/index.html
http://www.wnbc.com/entertainment/14113527/detail.html?rss=ny&psp=entertainment

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The Law Offices of Carlos Santos II has been offering legal representation in several areas of bankruptcy law and the like.

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The Following Story is from Associated Content and sponsored by How to File Bankruptcy

“A great city is that which has the greatest men and women.”- Walt Whitman (1819 – 1892)

A Life of Its Own

In many ways a city is a living entity. It is continually evolving in feature, landscape and character. Changes in the “econo-industrial” landscape of a particular region are not uncommon and when they happen over a long period of time people rarely take notice. If brought on too rapidly however, they can cause a kind of socioeconomic culture shock.

Imagine a tree growing from a sapling over the course of several decades. Passing by the tree on a regular basis, most people wouldn't pay much attention to it because the changes occur so slowly. Now imagine if that tree were suddenly hit by lightning – forever altering its appearance.

It's the same tree, but starts growing in different directions. The changes in the tree's appearance and character stand out more in this case because they happened so quickly.

That's how a city evolves as well and that is exactly where the Miami Valley is today – evolving. It's just happening more quickly than people would like and it affects more than just one industry or town.

The Dayton and surrounding regions have been dependent on manufacturing for over a century and have now been thrust into a rapid state of change. Oddly enough, that change did not come as quickly as most people would like to believe.

More than two decades ago Dayton's largest manufacturing employer, General Motors, was experiencing similar problems to those going on today. In 1989, author Maryann Walker published a book on the subject called, “Rude Awakening – The Rise, Fall and Struggle for Recovery of General Motors.”

With a title that sounds like it could have been printed last week, Walker's book documents how the auto maker nearly collapsed once before because of a company culture and operating methods that made no adjustment for changing times.

She even refers to GM of the 1980's as being a microcosm of American industry, a faulty and outdated business model that was copied by subsidiaries and suppliers. “The hard reality of General Motors,” Walker wrote, “is that its original systems have been designed for conditions that no longer exist.”

The company underwent a massive reorganization that began in 1984, but the damage had already been done. Walker wrote, “The bureaucracy and outdated organizational structure had become so strangled that it was virtually impossible to achieve a cooperative working environment.” Since division heads could not agree on the same course of action, most of what was wrong went uncorrected. The company started closing factories in the Dayton area even back then.

Of course, GM is not the only manufacturer to leave. Mead Paper and the printing plant for McCall's magazine left the city years ago. Standard Register, which develops software for automotive dealers, is now cutting its workforce as well.

In a final blow to the Dayton area, National Cash Register (NCR) has announced after 125 years it is leaving the city altogether. In the early1970's NCR discharged hundreds of workers when it shut down most of its Dayton factory operations.

Looking back, it is easy to see that companies have closed and people have lost jobs before, but Dayton and its neighboring communities are still here. What makes the current situation so unique and difficult is that entire industries are changing all at once. From Wall Street to Main Street, the recession affects people differently.

Those who own car dealerships, for example, have a unique perspective on the situation. While they may not employ as many people as a factory, thousands of dealer franchise owners are being forced into a spot from which they may never recover.

Not Your Father's Oldsmobile

Actually, Oldsmobile is gone now, so are Pontiac and many other American-made models. The landscape of the automotive sales market in the Miami Valley has undergone some earth-shaking alterations the past year. Dealerships that have been in business for more than 30 years are now scrambling for survival due to unprecedented decreases in sales and forced closures resulting from the bankruptcies of GM and Chrysler.

Unfortunately, several Dayton area dealerships, including Harmon Cadillac and Salem Chrysler Jeep, made the list of thousands slated for closure by both companies. General Motors has provided a “wind down” period to allow dealerships the opportunity to return stock and close down their businesses in an orderly fashion. Chrysler, however, is doing things differently, as Salem Chrysler Jeep owner Mary Kay Zappia learned during a conference call on May 14 when she was informed hers was one of the dealerships to be closed.

More than 40 years ago, Mel Zappia and his wife Mary Kay, freshly transplanted to the Dayton area from DeMoines, Iowa, set up shop to sell cars. Though Mel has passed on, Mary Kay and their two sons, John and Dan, have carried on the family tradition at the same location – 5010 Salem Avenue.

“They notified us that on the 9th of June that the judge ruled to accept the deletion of 789 dealers throughout the country,” Zappia said, commenting also that she has had to discharge a few workers due to budget cuts. “We have had customers in here with tears in their eyes. Many of them wrote letters to the judge before he ruled on the list of affected dealers.”

With no evidence to the contrary, Zappia strongly believes that the closures were, “arbitrarily chosen by President Obama's auto industry task force,” rather than having been based on the sales records of the individual dealerships. She is not isolated in her suspicions.

On June 12, the president of Chrysler, James Press, came under fire by members of congress in a special hearing to learn how the company selected the dealerships that were to be closed. Members of the special committee questioned Press alongside GM's CEO, Fritz Henderson, regarding the methods used to determine which franchises would be terminated.

Congressional leaders like Peter Welch, a Democratic representative from Vermont, argued that the selections were arbitrary with little or no opportunity for appeal. James Press disagreed stating that the selection of dealerships was, “not made by the White House, it was made by our company, Chrysler.” Either way, the result is the same – the closing of thousands of businesses around the country and more unemployed workers.

Zappia noted that regardless of this news, her business is still open for pre-owned vehicle sales and non-warranty repair work for all makes and models. “We are losing the Chrysler franchise,” she said, “but we'll keep doing what we're doing until we make a decision where to take things from here.”

The Zappia family is not alone, however, literally thousands of other franchises have yet to shut down and General Motors and Chrysler are not finished yet. Discussions are still going on about more factory and dealer closures, as well as the condition of retiree benefits. Plus, there is still the question of exactly what these companies will look like on the other side of the bankruptcy proceedings now that Uncle Sam is a major stock holder.

Out of the Frying Pan

During the 1980's GM, Ford and Chrysler were lagging behind import car companies whose market for small, more fuel-efficient cars was growing in America. In Dayton, GM workers had to deal with the frustration of layoffs and call backs on a regular basis in an effort to save money in the short term.

The company would lay off 30 to 40 people at once and then call them back to work some time later. Workers had no idea when a layoff would occur and when it finally came, all they could do was wait. Journeyman machine repairman and builder Marty Walling got tired of waiting.

Walling started out as an apprentice at the Inland Division of General Motors in 1977. In the 1980's he was doing well, but experiencing consistent layoffs.

“I got tired of the layoffs after the third time,” Walling said. “I had always dabbled in building and construction, so I left GM in 1982 and went to work for a builder in Beavercreek who was putting up a 126-unit condo development.”

“We were the new product in town so we were only building two or three units for the first couple of years,” Walling said. “But then it got to the point where we couldn't build them fast enough and we finally ran out of land.” The company then purchased other property for development and did some commercial construction.

“Builders got lackadaisical because anything we wrote at the time we got a contract on, which was probably because of how money came so easily,” Walling recalled. “Anyone could get a mortgage for anything back then. They were making loans on the hoods of cars.” But that wave would die out soon enough for many in the business.

According to the U.S. Department of Housing and Urban Development, in May of this year 491,000 new single-family homes were completed, a 9.4 percent drop from April. Walling may have escaped the final collapse of General Motors, but is he worse off now as a home builder? He doesn't think so.

Most builders agree that the higher end market ($350,000 and up) is still selling, albeit not as it was before. “Today our company's target market is the empty-nester,” Walling said, “with prices ranging anywhere from $170,000 to around $200,000, and 80 to 90 percent are cash buyers.”

Realtors insist it is a buyers' market, but it is still harder to get a mortgage than it was three years ago and that creates a problem for the empty-nester looking to trade up. “Even though these people can get a mortgage, someone in that stage in their life is not willing to do that if they can't get a buyer for their current home.”

One thing obviously affects the other, but the hope is that as more securely-based mortgages are written, the system will stabilize itself. At least that's the idea. Buying power is not just a limitation of home sales, however. It also affects local retailers.

Retail Space Available

It is common knowledge that retail sales have fallen substantially over the last couple of years. Cable TV news programs are loaded with stories about the latest retailer to go out of business or file bankruptcy, the most recent being Eddie Bauer.

It only stands to reason, after all, that when times get tough, people spend less – right? Not necessarily, according to Pamela Cochran, property manager at Town & Country Shopping Center in Kettering. “People are spending their money more wisely and Kettering is very loyal,” Cochran said.

Opened in 1951, Town & Country has the reputation of being the first shopping center, even among those in the industry. Cochran has been the property manager for the last 16 years. “Town & Country is operated by the third generation of the family that started it,” Cochran said. “It's in an excellent location, in what is considered to be Kettering's downtown area.”

“We have 41 tenants right now, about 75% of our capacity,” she added, “with two pending sales.” Walking through Town & Country, however, shoppers may notice a number of unoccupied shops, but not for the reasons one might think.

About every 10 years, the owners of the facility make changes to the building to update it wherever possible. This year, they had planned to remove the front of the building and make Town & Country an open-air shopping center. Two issues prevented the renovations and the economy came in second.

The number one reason for scrapping the project came from the community. “Our owners asked the community to tell us what they thought of the change and they asked us to keep it just like it is.” That's exactly what they intend to do, which actually worked in their favor, financially.

As the economy continued to dip, it made more sense to do some upgrades, rather than spend a great deal of money on changes that the buying public did not want. But, anticipating that the owners were going through with the open-air plan, some tenants chose to move or expand elsewhere, leaving behind empty stores.

People stop spending when they have nowhere to spend or when they have no job to provide them with the money to do so. With large-scale employers leaving or reducing their workforce, municipal governments are seeing a loss that goes beyond retail sales figures.

Dayton Mayor Rhine McLin agrees that more must be done to retain the businesses and jobs already. “Our biggest loss is from income taxes,” McLin said.

“In Ohio, the major revenue stream for municipalities comes from the income tax of those who work there.” When General Motors and NCR left the area, Dayton lost $2.5 million in income tax revenue.

It Is All Academic

What happens when the recession hits someone who has yet to begin a career? The Class of 2009 will certainly have a challenge as they go out into the workforce.

Dr. Jeannette Davy is a professor of business management at Wright State University's Raj Soin College of Business. She believes that creativity will be the secret of their success. “Graduates will need to be more creative in packaging themselves when applying for the jobs that do exist and are being created,” Davy said. “While new graduates don't have the experience in most cases, they have an advantage in that they may be cheaper to hire.”

The problem comes when people who have been without jobs for months or are now faced with long stretches of unemployment are willing to take jobs at lower pay. “Fewer of the high paying jobs in traditional industries exist,” Davy remarked. “New graduates are competing with people with much more experience who have lost their jobs.

Davy continued, “In order to find jobs, more and more of our graduates will have to leave the area. This will further contribute to the brain drain Ohio is experiencing.” That means graduates who want to stay in the area must be willing to make concessions – like slightly lower salaries or reduced benefits – which creates its own paradox. In order to entice a new graduate to stay in Dayton, employers would have to do just the opposite by offering better money and benefits that their competition.

To give graduates somewhere to work, city governments are trying to convince businesses to stay in the Dayton area, and even lure in some new ones. “The way we're going to get out of this is one job at a time,” said Dayton Mayor McLin.

She and other Miami Valley leaders are working to provide resources and support to small, high-tech startups. In theory, several smaller companies mean less risk to the overall economy than a few large employers – especially if some of them should fail. But there is still much to be done.

Is it tough out there? Yes, but it will get better. Are we there yet? Not quite. The Miami Valley still has a good bit of growing to do. Think of these changes not as “recovery,” but as growth or evolution.

It's just the next step in the life of the historic Gem City and all of her neighbors who depend on each other. In the end, it will be the actions of the people, not the wavering economy, that determine the overall effects of a difficult situation.

So, where do we go from here? Find out in Part III of our series, “Economic Transition in the Miami Valley.”

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The Following Story is from Associated Content and sponsored by Chapter 13 Lawyers

When the Bankruptcy Code was revamped in 2005 with The Bankruptcy Abuse Prevention and Consumer Protection Act, Congress added a provision that required consumers to participate in debtor education classes prior to filing bankruptcy. These classes were designed to accomplish several goals and initially frightened many individuals into rushing to file their bankruptcy petitions prior to the effective date of the law. Consumers and bankruptcy attorneys alike flooded the Bankruptcy Courts with thousands of petitions for bankruptcy relief to avoid this debtor education. It was feared that this new requirement was cumbersome and would over-burden the consumer who was desperate for bankruptcy relief. Many consumers even misunderstood and believed that they could not file bankruptcy or that the process was now so difficult they should not even attempt to file for bankruptcy relief. I am aware of this because I am a paralegal who works within this field and put in countless hours of overtime during the mad dash to file in the fall of 2005.

Even though filings did drop after the law went into affect, the 2005 legislation did not cause bankruptcy filings to stop completely. Moreover, the rumors about debtor education courses and classes being difficult, time consuming and over-burdensome are not true. Our clients have had no trouble obtaining their debtor education certifications and in fact, have commented that the process is not as difficult or time consuming as they had initially anticipated.

There are two steps that debtors must complete with regard to debtor education and credit counseling in order to file for bankruptcy relief and receive their bankruptcy discharge. (There may be limited and specific instances where these requirements are waived or modified and you should seek the advice of a bankruptcy attorney to determine if you qualify.) The first is your Credit Counseling Certificate – - debtors must have this certificate to file with their bankruptcy petition. Only agencies that have been certified by the Office of the U. S. Trustee are eligible to issue certificates accepted by the court. A list of Approved Credit Counseling Agencies is on the website for the U.S. Trustee Program. Each agency must disclose all fees up front but many of them offer online and telephone counseling to make the process quick and easy.

The second requirement is that debtors complete Debtor Education (personal financial management instruction course) prior to receiving a bankruptcy discharge. There are deadlines for completing this course that your attorney will review with you. These agencies provide courses in financial education and a certificate of completion that is then filed with the Bankruptcy Court. A list of the approved agencies for debtor education may be found on the website for the U.S. Trustee Program.

It is a myth that people cannot file for bankruptcy relief and that debtor education is too much of a hassle to be worth the trouble. The fact is that bankruptcy relief is available to debtors and debtor education has not hampered that relief.

NOTE: Information contained in this article is NOT legal advice and should not be relied upon as legal advice. This article was not written by an attorney. You should seek the advice of an attorney if you are contemplating bankruptcy.

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The Following Story is from Associated Content and sponsored by Miami Chapter 7 Lawyers

Also known as Wage Earner's Plan, Chapter 13 Bankruptcy is the most common type of bankruptcy filed in the United States. The reason Chapter 13 is the more popular choice is because it allows individuals to retain their possessions and repay their debts over a period of three to five years.

Many individuals facing foreclosure oftentimes resort to filing Chapter 13 Bankruptcy in an effort to save their home. While it's true, Chapter 13 can temporarily stop foreclosure proceedings, individuals must continue making mortgage payments in a timely fashion.

In addition to helping individuals retain their property and halt the foreclosure process, Chapter 13 Bankruptcy offers additional advantages including:

* Opportunity to reschedule secured debts to extend and lower payments
* Protects co-signers who are liable with the debtor on consumer debts
* Assign a Trustee to distribute payments to creditors
* Shield individuals from having direct contact with creditors

Chapter 13 Bankruptcy is available to all U.S. citizens. However, there are certain eligibility requirements that must be met. These requirements state unsecured debt must be less than $307,675 and secured debt less than $922,975. Additionally, United States Bankruptcy Law 11 U.S.C. 109,111 requires individuals to obtain credit counseling from an approved credit counseling agency within 180 days prior to filing.

Filing Chapter 13 Bankruptcy is a complicated matter and requires the assistance of a bankruptcy attorney. If an individual cannot afford an attorney, they may be entitled to pro bono legal assistance through their state or county Bar Association. This information can be located at the American Bar Association website or in your local Yellow Pages directory.

The first step of the Chapter 13 process begins by filing a petition with the Bankruptcy Court in the judicial district where you reside. You will be required to provide a list of assets and liabilities, current income and expenses, repayment plan and proof of credit counseling.

Approximately three to six weeks after petitioning the court, a meeting with your creditors will be arranged. During this meeting, creditors are allowed to ask you questions as to what circumstances caused you to fall behind in your payments and turn to bankruptcy. They can choose to either accept or reject your proposed repayment plan.

Creditors must file their claims against you with the court within 90 days of the creditor meeting. Some may dismiss your outstanding debt, others may reduce it, while others will not be willing to work with you at all. Once these terms have been met, a hearing on the debtor's Chapter 13 repayment plan will take place in front of a Bankruptcy Judge.

The Bankruptcy Judge makes the final decision regarding your repayment plan. He may accept, reject or make modifications to it. If the plan is approved, you must make regular payments to the Trustee who will oversee your account until the reorganized debts are paid in full. During the repayment plan, you cannot take on any new debt without first consulting the Trustee. An example of this would be if you needed to replace an automobile or obtain a loan for college tuition.

Chapter 13 Bankruptcy has undergone dramatic changes during the past three years. It is a complex and lengthy process that can significantly improve your financial situation and help get you back on track. However, it can also keep you on an excruciatingly tight budget. Before making a final decision, it's highly recommended to conduct thorough research via the Internet or by consulting with a qualified bankruptcy attorney.

Chapter 13 Bankruptcy manual and forms can be downloaded at U.S. Bankruptcy Courts.

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The Following Story is from Associated Content and sponsored by Miami Bankruptcy Attorneys

Looking for a bankruptcy alternative to eliminate debt without all the legal ramifications? If so, this article explores several strategies which can help you rein in your finances and obtain financial freedom.

Determining the best bankruptcy alternative requires some research to understand the pros and cons of each. The Internet is one of the best places to locate this information; however, caution should be used. Unfortunately, anyone can slap up a website and offer financial advice. Before spending your hard earned money, engage in due diligence and make certain the company or individual is a reputable source.

It is important to realize bankruptcy has far-reaching effects. First, and foremost, it adversely affects your credit rating and will remain on your credit report for up to ten years. Secondly, filing bankruptcy is expensive and requires the services of a qualified bankruptcy attorney.

In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act was enacted. BAPCPA requires debtors to repay a portion of their debts whenever possible. In the past, most debtors filed for Chapter 7 bankruptcy. This chapter allows debtors to liquidate assets to repay creditors. Remaining balances are discharged; providing debtors with a fresh financial start.

Today, the majority of people who file for bankruptcy are required to file for Chapter 13. This bankruptcy chapter allows debtors to keep assets such as their homes and automobiles, Chapter 13 payment plans place considerable financial constraints which can cause debtors to fail out of bankruptcy.

When this occurs, creditors can petition the court and request the case be dismissed. If bankruptcy is dismissed, debtors lose all protection from the court and creditors can commence with collection actions, including foreclosure.

Budgeting is perhaps the most under-rated, yet most effective bankruptcy alternative. Today, millions of Americans are living paycheck to paycheck. With skyrocketing unemployment rates, it can be extremely challenging to make ends meet.

Although some people do not earn enough money to cover all of their expenses, a large percentage of people facing bankruptcy are in trouble simply because they do not know where they are spending their money.

One way to track expenses is to carry a notepad and record every expense. From your morning cup of coffee to the fast food lunch, and the bag of chips to the pitch-in party, every expense should be accounted for. By tracking expenses, you can easily see where cutbacks need to be made.

In order to be successful with budgeting, you will need to review your expenses, develop a plan and engage in self-control. There are several budgeting techniques including the infamous “envelope” plan which became popular in the 1950s.

The envelope plan is relatively simple and requires little time. Simply write the name of each creditor on the front of an envelope. Determine how much you need to set aside from each paycheck to pay the bill. For instance, if you owe $2500 to a credit card company and want to pay it off within 12 months, you will need to set aside approximately $210 per month.

If you are paid on a weekly basis, place $52.50 inside the envelope. When the bill is due, you will have the funds available and will not need to struggle to come up with the full amount. The secret to success is to keep your fingers out of the envelope until you are using the funds to pay the debt.

Debt consolidation is another popular bankruptcy alternative. Most debt consolidation loans are actually home equity loans. With today's credit crunch, it has become increasingly difficult to obtain a debt consolidation loan. If you are fortunate enough to qualify for financing, realize debt consolidation loans can place your home at risk for foreclosure.

Debt consolidation loans typically use real estate as collateral to secure the second mortgage note. Should you become delinquent on the second mortgage, lenders can commence with foreclosure proceedings even if you are current on your first mortgage.

Additionally, home equity loans are usually repaid over a period of 10 to 15 years. It is important to calculate the true cost of debt consolidation before using your home as collateral. In most cases, Borrowers pay more in interest over the long run than they would have by paying off the unsecured notes in a shorter period of time.

Debt settlement is becoming a popular bankruptcy alternative. Debt settlement should only be considered when outstanding debts total more than $25,000. Although debtors can attempt to negotiate with creditors on their own, they usually obtain better results when working with a professional debt settlement company.

Debt settlers generally charge fees based on the total amount of debt owed. There is usually a start-up fee and a monthly maintenance fee. In some cases, these fees can amount to several thousand dollars. However, debt settlement companies can negotiate debt by as much as 60-percent. Should you decide to go this route, make certain you understand the pros and cons. Obtain everything in writing and have a lawyer review the contract before signing on the dotted line.

Credit counseling is a relative simple and affordable alternative to bankruptcy. Many people struggle financially simply because they were never taught how to manage their money. Credit counselors provide financial education which can help you get back on your feet. An added benefit of credit counseling is many professional credit counseling organizations can assist with creditor negotiations.

It's important to note BAPCPA requires individuals filing for bankruptcy to engage in credit counseling. The Department of Justice established the U.S. Trustee Program which provides a nationwide list of approved credit counseling agencies. If you are considering bankruptcy, but want to try credit counseling first, use one of the approved agencies so you won't have to undergo credit counseling twice.

These are but a few of the bankruptcy alternatives available. In some cases, bankruptcy is the only option. However, if you can find an alternative that provides the same results you can save a lot of money in legal fees and eliminate the burden of 10 years worth of negative credit reporting.

http://www.usdoj.gov/ust/eo/bapcpa/index.htm

http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm

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