Are You Considering Bankruptcy?

Hi Friends,

As I have been watching the news this week, I see that bankruptcy is at an all time high. You may be a homeowner in distress or an investor who is upside down. You may be considering filing bankruptcy. Just know that bankruptcy is not the end of the world. Many people file and start fresh and become wildly successful.

We found the following information on this government website – http://www.uscourts.gov/ to be helpful. Check out the site yourself for more information…

United States Bankruptcy Courts
Each of the 94 federal judicial districts handles bankruptcy matters, and in almost all districts, bankruptcy cases are filed in the bankruptcy court – the Federal Courthouse. Bankruptcy cases cannot be filed in state or county court. Bankruptcy laws help people who can no longer pay their creditors get a fresh start by liquidating their assets to pay their debts, or by creating a repayment plan.

Bankruptcy laws also protect troubled businesses and provide for fair distributions to business creditors through reorganization or liquidation. These procedures are covered under Title 11 of the United States Code .


Filing for Bankruptcy
When you file bankruptcy your creditors, court personnel, the media, and general public are notified. An official notice will be placed in the legal section of your newspaper stating that you filed and giving other creditors a chance to join in. The court will set a 341 hearing and the process will begin.

In 2005, the Bankruptcy Code was amended to require that anyone filing bankruptcy complete an approved credit counseling program before they file bankruptcy. Most people can now do the class online. Again, go to the website to find a list of approved agencies and complete the course before you file. It only takes a few hours.

Filing for Bankruptcy without an Attorney
Corporations and partnerships must have an attorney to file a bankruptcy case. Individuals, however, may represent themselves in bankruptcy court. While individuals can file bankruptcy without an attorney. To represent yourself means to file “pro se.” To buy additional time, many homeowners will file bankruptcy themselves, hire an attorney afterwards, the attorney will ask for a dismissal of the case and then refile, often buying 90 days or more before the individual must appear in court. Bankruptcy is not something to toy with. If you do file yourself, hire an attorney as soon as possible. Bankruptcy has long-term financial and legal consequences - hiring a competent attorney is strongly recommended.

Debtors must list all property and debts in their bankruptcy paperwork. If a debt is not listed, it is possible the debt will not be discharged. The judge can also deny the discharge of all debts if a debtor does something dishonest in connection with the bankruptcy case, such as destroying or hiding property, falsifying records, or lying. Individual bankruptcy cases are randomly audited to determine the accuracy, truthfulness, and completeness of the information that the debtor is required to provide. Please be aware that bankruptcy fraud is a crime.

Credit Counseling
Individual debtors are generally required to obtain credit counseling from an approved provider within 180 days before filing a case, and to file a statement of compliance and a certificate of credit counseling furnished by the provider. Failure to do so may result in dismissal of the case, however; in most cases, if you file bankruptcy without completing the credit counseling, the court will require completion of the counseling before your first hearing giving you time to stay within the guidelines.

Finding an Attorney, including Free Legal Services
Debtors are strongly encouraged to obtain the services of competent legal counsel. Even if you cannot afford to pay an attorney, you may be able to qualify for free legal services. For information about hiring an attorney, or about free (also known as "pro bono") legal services, contact your state or local bar association. Many law schools have legal clinics that offer free legal services. Court web sites often have contact information for bar associations and pro bono legal service programs, as well as important procedural information.

For information about such legal resources, check the American Bar Association's Legal Help page, the Legal Services Corporation, or the web site of the bankruptcy court where you intend to file.

If you are filing or involved in a bankruptcy case and do not have an attorney, the web site of the bankruptcy court where the case has been or will be filed may be of assistance. The Bankruptcy Resources page may be of help as well.

Again....it is not the end of the world...Knowledge is power - so take time to research this before you make such a HUGE decision...

Have a Blessed Day,

Dwan
http://www.theieu.com/