If you do not want to continue running your business or you think it is in difficulty and cannot continue to trade, then you need to get good information about your possible options. One area which you will need to consider is company liquidation. The purpose of this article is to explain in simple language what company liquidation is and when its use might be appropriate.

Liquidation is simply the term used to describe the process of closing a company down. The company's trading is stopped and its assets are sold and turned into cash or 'liquidated'. There are different types of liquidation depending on whether the company to be closed is solvent or insolvent. There are two simple tests to see whether a business is solvent. The cash flow test and the balance sheet test. The cash flow test asks whether the company is able to pay its creditors as and when the debts fall due. If the answer is no, the company is insolvent. The balance sheet test asks if there are more assets than money owed to creditors. If the answer is no, then the business is insolvent.

If the company to be closed is solvent the liquidation procedure to be used is called Members Voluntary Liquidation or MVL for short. Simply put, the members or shareholders of the business decide to close it. The directors of the company have to make a sworn legal declaration that the company is solvent and if assets need to be sold, to pay debts, this must be possible within 12 months. The business is closed and all outstanding creditors paid. Any remaining assets or cash is then the property of the shareholders of the business to do with what they wish.

You may question why a solvent business would be closed at all. There are a number of reasons why this would happen. Perhaps the owner may simply want to close it because they no longer want to run it. May be the company is a family business where the owners / parents have retired and children or family do not want to run the business. Alternatively, a group of companies may need to be rationalised requiring a solvent business to be closed and its assets transferred into another company within the group.

If a business is insolvent and no further investment can be found or other arrangements with creditors cannot be agreed, then action must be taken to close the company. There are two possible types of liquidation procedure in these circumstances:

The first of these is Creditors Voluntary Liquidation or CVL for short. A Creditors Voluntary Liquidation will normally be started by the directors and or shareholders of the business. The shareholders appoint an Insolvency Practitioner who will call a meeting of the company's creditors informing them of the company's insolvency and allowing them to appoint a liquidator of their choice. As such, the liquidation is approved by, and works for, the benefit of the creditors. The Liquidator's prime duty is to sell the assets of the company and distribute any proceeds to the company's creditors. The Liquidator will close the company, cancel any outstanding leases make any remaining staff redundant.

The second type of liquidation where a company is insolvent is called Compulsory Liquidation - more commonly known as Winding Up. The act of Compulsory Liquidation is started by an aggrieved creditor who has not been paid. Such action can be started by any creditor who is owed more than �750 which is not paid after a statutory demand for payment has been issued. The aggrieved creditor will employ a solicitor who asks the High Court to hear the argument why the company should be wound up. This is called a Petition. Notice of the petition must be given to the company. Then if the debt is still not paid, a 'hearing' is held in front of a High Court judge who then passes an order to wind up the company compulsorily. An Official Receiver (or Liquidator if appointed) will then close the company and sell any assets which will then be distributed across all of the company's creditors.

It is important to remember that the question of whether company liquidation is the most appropriate course of action can only be answered after a proper review of a company's circumstances. If as a Director, you believe that your business is in trouble, you should get further advice from an expert as soon as possible.

An important additional note for Company Directors in this area is that you must be aware that you must not continue to allow a company to trade which you know to be insolvent. If your company is eventually liquidated because it is insolvent, the Liquidator will have a duty to review the conduct of you as a Director to ensure that you have acted properly to minimise creditor's losses. If the Liquidator decides that you as a director have acted badly, they can accuse you of wrongful trading. If this is upheld, then you can be made personally liable for the company's debts from the time you knew the company was insolvent. As such, getting the appropriate advice about company insolvency is a must.

Author: Derek Cooper

About the author:
Derek is Managing Director of Cooper Matthews Limited (http://coopermatthews.com), and a member of the Turnaround Management Association UK
Cooper Matthews specialise in Business Recovery Services Advice offering provide straight forward insolvency advice for businesses with financial problems. They have significant experience in working with small to medium sized businesses.


Article source: Free Bankruptcy Articles.

Bankruptcy is a condition that nobody likes to be in but sometimes one cannot control the various conditions like fuel price hikes, inflation etc. that lead to the bankruptcy. Then one can either go for filing the bankruptcy petition or opting for the Individual Voluntary Agreement also known as IVA.

It is a debt resolving method approved by the government and you can apply for an IVA and go through whole of the process with the Insolvency Practitioner (IP). IVAs can help you in avoiding the trauma of filing for the bankruptcy. If your outstanding debt towards three or more creditors is more than �15000 then IVA can be of real help to you. If more than 75% of your creditors agree to the IVA then 75 % of your loan would be waived of and rest you will have to pay in the installments fixed agreed by you and your creditors. There will be no interest levied on the debt that is left after the agreement to the IVA. The monthly installments that you will have to pay will be according to your capacity.

Creditors are normally happy with the IVA settlement as they normally get more money through it than when you go for bankruptcy filing. It is beneficial to the applicant also as you would not have to part with your home or land property. All the installments can be paid through your monthly income. If at some point of time you feel the need for readjustment of your installments then there is a provision for that also. Along with all these benefits, there are other benefits also like there would no official notification issued for IVA like it is done in the case of bankruptcy. That will give you a peace of mind. All you need to do is find a good Insolvency Practitioner and then work out a deal that is good for both the parties.

Author: sturat.mitchel

About the author:
Sturat enjoys writing and sharing articles on topics like ivas and apply for an iva.

Article source: Free Bankruptcy Articles.

Bankruptcy has become a chosen route for more than 1.8 millions Americans to get a debt relief from their overwhelming debt problem, according to the reports found. However, filing for bankruptcy should be avoided seeing it drawbacks that may cause bad impact on your credit history. You should not choose to file a bankruptcy just get a debt relief before you explore other alternative options. There might be a solution to your debt problem other than bankruptcy filing.

Drawbacks of Bankruptcy

Why do you need to avoid bankruptcy? If you have read some of debt relief guides, you will find that most of these guides don't offer bankruptcy as the solution for debt relief. This is because its drawbacks follow you for years. A bankruptcy filing will be remarked in your credit report for 10 years. During this time, you may find hard to obtain loans, mortgages, and credit cards. If you really need a credit during the 10-year period, you may need to go for secured loans which may be more expensive to acquire. Even you are offered with an unsecured loan, you need to pay much higher interest rate than those offered to people with clean credit history; this is to compensate the risk faced by the lenders.

Obtaining attractive low interest-rate unsecured credit card may be impossible because most credit card companies reject applicants who have filed a bankruptcy. You may only be able to get secured credit card which the credit limit depends on the amount you deposited to secure the card. Moreover, secured credit card normally has higher annual fee and the issuer may charge an application fee.

In filing a bankruptcy, all your assets may need to be liquidized for debt payment. However, under the Federal law, some of your assets needed to support you and your dependents can be exempted. Such exemptions may include a portion of your IRA account and other retirement accounts which are subjected in case by case basis. Basically, you will lose most of your asset if you choose bankruptcy as your debt relief solution.

Alternatives to Bankruptcy

Since bankruptcy should be avoided, then what are the alternative options to resolve your debt problem? There are a few options to go for in getting a solution to resolve your debt problem. If you are out of your mind and do not know what can be done other than bankruptcy filing, then try to approach a credit counseling agency and get them to propose to you a few potential debt relief options that tailors to your financial situation.

Alternatively, you can also try to negotiate a payment plan with your creditors. Besides that, you can also get helps from professional debt-negotiation company to perform the negotiation on behalf of you. Most creditors would prefer to get some of the money you owe them rather than get nothing if you file a bankruptcy to erase the entire debt. So, your creditors may accept what you may offer to them through the negotiation process.

Summary

Bankruptcy filing is an extreme option that may seriously impact your future credit worthiness. You should avoid this option by exploring other alternatives for a better debt relief solution.

Author: cornie@debt-consolidation-1stop.info Cornie

About the author:
Cornie Herring is the Author from http://www.debt-consolidation-1stop.info Find more information & tips on alternatives to bankruptcy which will help you to get debt free without bankruptcy filing.

Article source: Free Bankruptcy Articles.

If you are a businessperson or an individual who has to clear off the debt that you have taken from various investors or creditors then a condition may arise where you are unable to pay off your debts. This condition is known as bankruptcy. In the British system it is also known by the name insolvency. In this condition you can file for the bankruptcy status with the court. When granted that status you would be saved from the various demands by your creditors. This will also help you to get a new financial start.

It is not that easy for anybody to file for the bankruptcy as one does not know about the legalities associated with this. One does not know what would be the after effects of the bankruptcy. One should be clear about this fact that filing for the bankruptcy does not always mean that the person is incapable of handling the business or the finances. In recent economic slowdown we have seen many examples of financial giants like Lehmann brothers going bankrupt. It could be all due to the factors that are not in control of a particular person. It might be that recent steep rise in the fuel prices could have lead to the downfall of your business. All these factors lead to the condition of bankruptcy so it should not be always treated as a black spot in your career.

You can take help of the various bankruptcy FAQ that are available on various legal websites or firms on how to go about the bankruptcy condition. From these bankruptcy FAQ's you will get to know that you can either go for the Individual Voluntary Agreement (IVA) or for filling the petition for bankruptcy. In IVA you will pay the creditors as part of the debt in a fixed period of time (maximum five years) from whatever financial resources are left with you. Bankruptcy FAQ's will tell you the details about IVA, bankruptcy petition and how you can approach the IVA through Insolvency Practitioners.

Author: sturat.mitchel

About the author:
Sturat enjoys writing and sharing articles on topics like bankruptcy and bankruptcy faq.


Article source: Free Bankruptcy Articles.

Bankruptcy is a condition that everybody wants to avoid. But sometimes due to poor financial management and sometimes due to the external factors which can not be controlled by the person people find themselves to be in a condition where they have to think of declaring bankruptcy. Most of the people do not know how to go about it or whether there are any other options available. In such a condition the bankruptcy advice is of great use.

First thing to do in such a condition should be to evaluate all of your assets and then find whether you will be able to pay of your loans or a major chunk of it. If such a thing is possible then go for it and ask for the time to pay of the remaining debt. If this thing fails then you should go for Individual Voluntary Agreement also known as IVA. In this you can strike a deal with your creditors where major part of your loan (up to 75%) can be waived off and you would be given five years to pay off the remaining part in fixed installments.

Even if this does not work out then you would have to go for filing the bankruptcy petition. In this many aspects related to your life like finances will come under the radar. All of your assets will be evaluated and your daily requirements to live will be left and rest all will be liquidated to pay off the debts. When this is done the creditors would not have any right to ask you for further money. You would be left over with the necessities like household things, motor vehicle and the things with which you will earn your living. This bankruptcy petition will be published in the newspapers and the gazettes. Normally after a one-year period you will be discharged of the bankruptcy and if you apply for new credit then it will be mentioned that you are a discharged bankrupt.

Author: sturat.mitchel

About the author:
Sturat enjoys writing and sharing articles on topics like bankruptcy advice and bankruptcy.

Article source: Free Bankruptcy Articles.

Often in life, we get a curve thrown at us and the end result is possible repossession of our mobile home. It is important to understand how this works. First thing to understand, how did you finance the mobile home, was it a personal loan or an actual mortgage. Each one is handled differently than the other depending if you were renting a lot or you owned the lot where the mobile home is located.

The first type of loan is when you rent a lot, it is a personal property loan on the unit. The second type of loan is when you own the lot, it is a mortgage tied into the land the home is situated on. With both types of loan options, the mobile home repossession will follow the same basic steps once the loan payments get behind and go into default. The mortgage loan will require pre-foreclosure and foreclosure whereas a personal property loan can result in a mobile home repossession, It is the same as repossessing a car or personal property like a washing machine. There can be extenuating circumstances, it depends upon your state.

Repossession of a mobile home is standard for most states but needs to verified with an attorney before you do anything that can affect you legally. After you have checked with an attorney the following could happen and is good information to have.

1. When the mobile is repossessed, generally the lender will sell it at a public auction. Because you are the loan holder, you will have to make up the difference between the loan amount and the sales price. Often, you can be charged for the repossession fee and legal fees involved. Often the resale value is lower than the loan due to poor resale value of a mobile home. It is not easy to stop a repossession, but to have any chance of doing so, you must take immediate action by hiring an attorney.

2. You could also get hit for the costs of cleaning the unit, any repairs and costs of the auctioneer.

3. Filing for bankruptcy can sometimes help prevent the repossession if you are dealing with an experienced Bankruptcy Attorney who knows the law. You will still be required to pay for it but it could be dealt with like in a Chapter 13 Bankruptcy where you make scheduled payments dictated by the courts.

4. There are times when anyone with their name on the title could be ordered to pay for the deficiency. The lender could also garnish your wages. This is why you need to consult with an experienced attorney to help you out of the situation.

5. If it is located in a rental trailer park, the landlord can have the unit removed for failure to pay the lot fee. The person on the title is responsible for all moving fees.

In conclusion, whether you own the land or rent the lot, if you do not make payments, it will be repossessed. How it is handled should be in the hands of an experienced attorney. If you file bankruptcy, you could possibly keep the mobile home if the Bankruptcy is handled by an experienced attorney for this type of legal matter. It depends upon the laws in the State of residence governing mobile homes and repossessions. For further information about the your rights and about your state's specific repossession requirements, contact your state consumer protection agency or hire an attorney.

Author: Ron Lovell

About the author:
To learn more about your money and credit tips, visit our website at http://www.themoneydoctor23.com or http://www.debt23.com
Ron Lovell is available as a professional speaker to help educate your community or group function on the effects of Financial Stability.


Article source: Free Bankruptcy Articles.

You are immediately free from debt and will not be responsible for any of your pre-existing debts. It is a fresh start for you and your family to start again and build yourself up from a position of strength. You are immediately protected from all existing creditors who form part of your bankruptcy.

You should understand that it is extremely unlikely that you will be able to borrow money from a high street lender. It is not unusual for a self-employed person to obtain start up or project funding from a private source which is acceptable for an un-discharged bankrupt (providing the lender is aware of your circumstances).

Once you are discharged from bankruptcy (usually after 12 months, but sometimes sooner) you will be able to rebuild your credit file.

Bankruptcy restrictions

Following bankruptcy certain restrictions are placed on you. These are as follows:

* You lose control of your assets (house, savings, expensive car (over �2500)
* You cannot obtain credit for over �500 without the declaring that you are bankrupt..
* You cannot take any part in the promotion, formation or management of a limited company (LTD) without the permission of the court.
* You cannot trade in any business under any other name unless you inform all persons concerned of the bankruptcy.

Is my occupation affected?

If you go bankrupt then you will be automatically excluded from some professions:

• Member of the Law Society


• Estate Agent


• Insolvency Practitioner


• Stock Broker


• Pub Licensee


• You cannot act as a company director.


• Charted Accountant / Lawyer.


• Justice of the peace (JP).


• member of parliament.


• member of the local authority.

For some other professions, dismissal would be at your employer's discretion. Check your employment contract or consult your HR department or union.

Bankruptcy Pros and Cons

• All of your pre-existing debt is wiped off.
  
• Creditors can no longer hassle you.


• First-time bankrupts are usually discharged within 12 months (sometimes sooner).


• If you rent or live with parents you don't risk losing your home.

Author: Elliott Parker

About the author:
Elliott Parker is an advisor at Clear Insolvency.
Bankruptcy Information, IVAs and Debt Management Information and Assistance

Article source: Free Bankruptcy Articles.

With the widespread fear of terrorists ever-present, the rules of sending money transfers to Pakistan have changed drastically. Of the many ways to wire money, some are of course preferred over others.

Politics in the country of Pakistan have had a drastic affect on businesses that were once successful. What were once reliable options now look to be inconsistent. And with the country's current conditions, the best way to transfer money is by way of a credible institution.

One of the more reliable options is through the S.W.I.F.T. wire transfer system, or the Society for Worldwide Interbank Financial Telecommunication. S.W.I.F.T. does not store and manage accounts as banks do, instead the sole responsibility of S.W.I.F.T. is to move data from bank to bank. All transactions are chronicled with both banks involved, and are at times monitored by governmental agencies. A major drawback of systems such as these is that both parties are required to have a bank account with that particular institution. The sender must have an account in the country the money is being sent from, and the recipient must present their account number. This form is reliable and only takes about two or three days depending on the bank, but can bring on a dilemma if the person you need to get the cash to does not have a bank account.

If your recipient does not have a bank account, another feasible option is a location-based service. These businesses are located all over the world and charge a fee based on the amount transferred. Unfortunately, there is a restriction in place as to the amount you can wire. And although you could possibly send multiple transfers, it would significantly dent your wallet and some services allow no more than one transfer to the same person in a day.

The most dated form of cash transfer to Pakistan is the hawala. With roots in Islamic law and the good old-fashioned honor system, this service is now illegal after terrorists began using it for money laundering. With this option, the hawala broker charges a fee, and in turn the broker would call the location where the money was to be sent, then promise to reimburse the other hawala broker for completing the deal. This method is still being used today, but is no longs a legitimate, legal form of money transferring.

As it stands, the most practical way to transfer money remains through online fund transfers or a specialized wire transfer service.

Author: Money Transfer

About the author:
ATMCASH is a cheaper solution to send and receive money internationally. Its a easy, convenient, and the best value when sending money across the country or across the world. You can get money from over 1 Million ATMs worldwide. Send Money to Pakistan

Article source: Free Bankruptcy Articles.

According to the latest Insolvency Service figures for England and Wales published on 1st May 09, nearly 5000 companies went into liquidation in the first quarter of 2009. This figure is over 50% higher than the same quarter of 2008. Clearly the global recession together with the lack of available credit due to the credit crunch, is having a significant downward effect on business activity. Many analysts believe that the recession will continue until the end of 2009 at least and that its effects will continue to be felt well into 2010.

With increasing numbers of businesses finding themselves in serious trouble, more and more company directors and shareholders are faced with a decision whether to invest more of their own funds into the business to allow trading to continue. Even if such funds can be made available, they are best spend helping to develop and improve the current business model - e.g. on advertising, marketing, investment in plant etc. However, all too often the money is likely to be swallowed up paying for legacy debts. With this reality, potential investors are all the more likely to decide that the further investment is not sensible and the better option is to call it a day and allow the business to be wound up.

Clearly in the current economic climate, the focus from Government down is to promote trade and growth rather than business failure. As such, it is important to consider how businesses can be preserved and new investment can be focused on giving a troubled business a new lease of life. The process of business Phoenixing is widely regarded as a practical method of achieving this goal.

Phoenixing (also known as Pre-Packing) is the process by which the sound elements of a failing business can be packaged up and purchased by a new company. The new company then starts to trade in the same business space but without the burden of legacy debts and onerous or unwanted property or leases. As a result, investment funds are targeted specifically at investing in the growth of the business giving it the best chance of success.

The Phoenix process is relatively straight forward. Firstly the assets of a business including any good will are properly valued. A new company is formed and investment funds are deposited within the new business. A Sale and Purchase agreement is then drawn up detailing the assets of the old business and the amount required to purchase them based on the valuation. The old company is then liquidated. Immediately or shortly after the liquidation, the Administrator then effects the sale of the business assets to the new company as per the Sale and Purchase agreement. The proceeds of the sale are distributed to the old company's creditors.

Much media comment has been focused on the Phoenix process particularly in the first quarter of 2009. One of the concerns raised is that the creditors of the old failed business are left with little hope of full repayment. Unfortunately this is often the reality. However, it is important to recognise that this situation is a direct result of the failure of the old business. Where a business is struggling, if additional investment is not forthcoming then it will fail and face liquidation. In this situation, it is highly likely that creditors will not be paid in full. As such, even if a Phoenix business is started, the position that creditors find themselves in is due to the old company failure and not a direct result of the Phoenix process itself.

In fact, the pre-packed sale of the old business assets to the Phoenix company may often get the best possible return for creditors. This is because the value of the business which may largely be made up of current contracts and good will, is often far higher if it can be sold as a package to a new Phoenix business. If the failed business is liquidated or put into administration, the subsequent value of simply selling any physical assets and distressed stock will almost certainly be lower thus getting a far worse return for creditors.

In addition to improved creditor returns, the Phoenix process offers other significant advantages. In particular, a new trading company is formed which has the ability and capacity to continue to trade with suppliers and customers this preserving future revenue streams for them despite their potential losses suffered from the previous failed business. Often the new Phoenix company will occupy the same premises as the old business thus protecting landlord's rents. In addition, employment is protected as the new business will want to take many of the old employees whose employment will be protected under TUPE (Transfer of Undertaking and Protection of Employment) rules.

Given the significant advantages, directors and shareholders would do well to consider the Phoenix process while deciding how to resolve the problem of a failing businesses. Clearly, Phoenixing is not right for all situations and independent advice must be sought from a business insolvency advisor. However, in these troubled economic times, all options for preserving business and employment must be investigated and Phoenixing is certainly able to aid this process.

Author: Derek Cooper

About the author:
Derek is Managing Director of Cooper Matthews Limited (http://coopermatthews.com), and a member of the Turnaround Management Association UK
Cooper Matthews specialise in Business Recovery Services Advice offering provide straight forward insolvency advice for businesses with financial problems. They have significant experience in working with small to medium sized businesses


Article source: Free Bankruptcy Articles.

As the recession continues to bite, more and more businesses are finding it difficult to continue trading. However, very often these difficulties are not because customers have stopped buying completely. Rather, they are buying in reduced volumes and asking for lower prices.

Facing these circumstances, many businesses could continue to trade if they did not have the burden of servicing legacy debts. Since the Enterprise Act of 1984, it has been possible to request relief from corporate creditors using a Company Voluntary Arrangement or CVA. With the agreement of creditors, a CVA allows a portion of corporate debt to be repaid at a manageable rate over a set period of time, the remaining debt being written off. However, this procedure has long been criticised by both creditors and insolvency professionals alike due to the high percentage of early failures. The main argument against the CVA is that the fundamental structure of the business and its management team do not change. As such, even if the burden of legacy debt is lifted, the reasons for past failures are not likely to be resolved in the future.

Given the criticism levied against CVAs, the process of Phoenixing (also known as Pre Pack sale in liquidation or administration) has become more widely considered as a practical way of saving a business. Simply put, the act of Phoenixing is where a new company is formed which then buys the assets, contracts and goodwill of the failing business for a reasonable market rate. The legacy debt is left within the old business which is then liquidated thus allowing the new Phoenix business to trade on, debt free.

Since the beginning of 2009, much comment has been made about the Phoenix process in the media. Very often this has taken a negative stance because of the fact that creditors are left with unpaid debts which may in turn lead them to suffer their own financial difficulties. However, what has been largely overlooked in these published arguments is the reason for the failing company is not the Phoenix process. The reason for the failure was the company's inability to continue to trade. In these circumstances, liquidation was extremely likely if not inevitable whether or not a Phoenix process took place. As such creditors would always have been out of pocket.

A further criticism of Phoenixing is that creditors are not afforded the right to reject the new company's proposal to purchase the business assets from the failing company. However, it is widely recognised that to go through an open process of sale due to failure (often using administration) often destroys many of a company's valuable assets such as good will and contractual obligations. In addition, discussing matters with creditors before a potential sale of assets opens the possibility of the creditor taking unilateral recovery action which may well be detrimental. As such, a Pre Packaged sale will actually deliver the best possible return to creditors. Creditors are afforded increasing protection in terms of getting the best deal when the old business assets are sold. In November 2008, the Insolvency Service published strict guidelines for this area in the form of SIP (Statement of Insolvency Practice) 16 which requires insolvency practitioners to ensure that proper market value is paid for the assets and a full report of why this was beneficial to creditors must be submitted to them.

The arguments for the Phoenix process are compelling. There is the obvious advantage that the new business is not saddled with the old company's debts. In addition, unlike a CVA, there is no obligation for debt repayment. Fundamentally and unlike the CVA, a Phoenix allows a new business to begin with the introduction of new procedures and ways of working. All or part of the management team may remain the same. However, inappropriate property location or lease agreements are not taken on by the new company giving it every chance of success. In addition, the new Phoenix company will offer a far better chance that employees' jobs are protected than if the business were simply liquidated. TUPE (Transfer of Undertakings and Protection of Employment) rules apply meaning that the maximum number of jobs are saved.

Given these advantages it seems certain that Phoenixing will be seriously considered by many business owners trying to manage the issues of a failing company. This is not to say that the process will be right in every situation. However, with increasing numbers of businesses under financial pressure and at risk of failure, Phoenixing must certainly be given serious consideration.

Author: Derek Cooper

About the author:
Derek is Managing Director of Cooper Matthews Limited (http://coopermatthews.com), and a member of the Turnaround Management Association UK
Cooper Matthews specialise in Business Recovery Services Advice providing straight forward insolvency advice for businesses with financial problems. They have significant experience in working with small to medium sized businesses.


Article source: Free Bankruptcy Articles.

It's an unfortunate fact that business owners sometimes have to file for bankruptcy protection. If you rely on your sole proprietorship for income, and the business isn't generating enough revenue for you to pay your bills, you may be considering personal bankruptcy.
What happens to your business, though? Does personal bankruptcy mean small business bankruptcy as well?
If you have a sole proprietorship, then your personal finances and your business finances are one and the same. Bankruptcy does not allow you to choose which debts will be included, and which will be excluded.
Your business assets will be scheduled along with your personal assets. Since most business assets will not be considered exempt, they will become the property of the bankruptcy estate, and will be liquidated to pay your creditors.
The liquidation of your business assets will mean, in most cases, that you will have to shut down your business.
If you want to keep your sole proprietorship running, you have a couple of options. First, you can consider filing for Chapter 13 bankruptcy instead of Chapter 7. Chapter 13 does not erase your debts, but it does provide a means for you pay your creditors over a period of time, while still meeting your day to day financial obligations.
You would repay both your personal and your business debts under Chapter 13 bankruptcy, and you would be able to continue running your business.
The other option is to incorporate your business before you file for bankruptcy. Keep in mind, doing this does not automatically mean that you will get to keep your business. The ownership will still transfer to the estate when you file bankruptcy, but you have the option of purchasing your stock back at market value. If your business does not have any inventory, and most of its assets are subject to bank liens, the market value of the stock may be less than the debt repayments you'd make under Chapter 13.

Author: Jay Fleischman

About the author:
New York bankruptcy lawyer Jay S. Fleischman is the Managing Attorney of Fleischman Consumer Law Center. He has helped thousands of New York consumers end their bill problems and get back their good credit. Go to http://www.NewYorkBankruptcyHelp.com to learn more about your options, ask questions, and get more information.

Article source: Free Bankruptcy Articles.

If you are considering filing for bankruptcy, but you own an incorporated business, you're probably wondering if your personal bankruptcy will mean small business bankruptcy as well. Especially if the business is a viable revenue source, you want it to keep operating after your bankruptcy discharge.
The common belief is that personal bankruptcy won't affect an incorporated entity. After all, you incorporated your business to separate your personal liability from your business risks, right? If incorporation protects you from corporate liability, shouldn't it also protect the business from your personal liability?
Unfortunately, the business is not protected if you file for bankruptcy protection. Although you do not technically own the corporation's assets, you do own the stock. Since stock is just ownership rights to the business, your stock (and the ownership of the corporation) will transfer to the estate after you file for bankruptcy protection.
Because the estate then owns the stock, the trustee can liquidate the assets of the company to pay your creditors. Once the assets are liquidated, the corporation will most likely have to cease business operations - just as if you had filed for small business bankruptcy.
If you want to keep your business operations going, you do have the option of buying back the stock from the estate at fair value -the liquidation value of the stock. Since the liquidation value typically isn't very high, especially if the corporation's assets are subject to a bank's lien, this can be a good option for eliminating your personal debt while still keeping your business running.
If you are considering filing for personal bankruptcy, it will be worth your time to determine the fair value of your corporate stock, so you will know how much you will need to buy back your business from the estate once your bankruptcy petition is filed.

Author: Jay Fleischman

About the author:
New York bankruptcy lawyer Jay S. Fleischman is the Managing Attorney of Fleischman Consumer Law Center. He has helped thousands of New York consumers end their bill problems and get back their good credit. Go to http://www.NewYorkBankruptcyHelp.com to learn more about your options, ask questions, and get more information.

Article source: Free Bankruptcy Articles.

Filing for bankruptcy is considered to be the measure taken when somebody fall into the pits of financial ruin, then falls into that pit's pit - that's how bad it is. Now if you find this concept a little hard to understand, here's what you've got to know: bankruptcy is the state of an individual where he is no longer capable of paying off his debts, so he files for such as to 'appease' or settle with the people he owes. Yeah it's as simple as that, but are you aware that there are different chapters that you can be classified under? If you did, then I'll ask you this: which is the worst amongst all of the bankruptcy chapters? To many, it'd be none other than chapter 7 bankruptcy.

The chump having to file under chapter 7 bankruptcy is forced to sell all of his assets (declared and the ones not exempted), which would be real bad for the business, why? Because having to liquidate your goods would mean that there'll be no way for your venture to continue operating you big dummy. Common sense would have told you that, right friend? Anyways, moving forward, let's explore chapter 7 bankruptcy further: first off, matters here are taken into the hands of a bankruptcy court, naturally. A trustee will be needed here, mainly because he's the guy that'll be making the arrangements for the disposition of your assets.

You're left with no choice, since your creditors are pissed, so liquidating would be your only option. The money that is reaped from the 'sales' will then be forwarded to the people or lending organizations, or whoever you borrowed from (taken that they're legit) to settle the amounts you owe them. There are some exemptions, in the sense that there are some assets that won't be needed to sell off, but it'll depend on the laws of the state you belong to. The next thing that we need to tackle in regards to chapter 7 bankruptcy is eligibility. You see, not everyone will be given the 'privilege' for filing under the said chapter; there is a certain criterion for you to oblige with.

Here it is: the means test. Hold on, what the heck is that, you ask? Well think of it as the 'formula' that'll determine whether or not you can qualify for such a state. There are two elements that will be used for computing, namely your income and expenses. What's done here is the expenses are subtracted from the income, and the result will be the one thing that will determine your eligibility. You see, if the result is less than the median income of the state, then you will be more than qualified to file under chapter 7 bankruptcy.

But if the result is greater than the median income of the state, then tough luck, go file under a different chapter. Now you're probably wondering how much the whole procedure of filing under chapter 7 bankruptcy is gonna cost you, right? Taken that you are interested, it's going to cost you anywhere from 250 to 350 bucks, depending on your case. There'll also be a long-term cost, but it'll be thoroughly discussed by your lawyer, unless you already knew that.

Author: Rick Goldfeller

About the author:
The author of this article Rick Goldfeller is an underground Financial Analyst who has been successfully running campaigns for several wealthy clients. Rick finally decided to go public and share his knowledge and experience through his website http://www.finanzine.com. You can sign up for his free newsletter and join his coaching program.

Article source: Free Bankruptcy Articles.

If you own a business that is registered as a partnership, and you find yourself in the position of having to file for personal bankruptcy protection, what happens to your business? Does personal bankruptcy have to mean small business bankruptcy as well?
Owning a partnership means that your personal and business finances are one and the same. It also means the same for your partners. Each partner is responsible for the entirety of the business's debts.
Since your personal debts and your business debts are the same, they cannot be separated when you file for bankruptcy protection. This means that your personal assets and your business assets will both be listed in your bankruptcy paperwork.
Many of your personal assets will be considered exempt under a Chapter 7 bankruptcy - meaning that you will get to keep these assets even though you are wiping out your debt. Unfortunately, this is usually not the case when it comes to business assets. Most of these assets will become the property of the estate, and will be liquidated to pay your creditors for your debt.
Unless your partners can replace these assets, this usually means that your partnership will have to shut down.
There are a couple of options that can save your business, though. First, you can file for Chapter 13 bankruptcy protection instead of filing chapter 7. This gives you the ability to repay your debts over a period of time - usually 3 to 5 years. Although Chapter 13 doesn't erase your debts, it will allow you to keep your business assets so that you and your partners can continue operating the business.
The other option is to incorporate the business. This will help separate your personal and business liability. While the estate will become the owner of your share of the business when you file bankruptcy, you have the option of buying back your stock at fair market value. Often, the fair market value will be less than the amount of debt you owe, so it can be a less expensive way of obtaining debt relief while still maintaining your business.

Author: Jay Fleischman

About the author:
New York bankruptcy lawyer Jay S. Fleischman is the Managing Attorney of Fleischman Consumer Law Center. He has helped thousands of New York consumers end their bill problems and get back their good credit. Go to http://www.NewYorkBankruptcyHelp.com to learn more about your options, ask questions, and get more information.

Article source: Free Bankruptcy Articles.

Occasionally debtors digg themselves a hole so deep that they possibly could be pressured into filing for bankruptcy.

Only as a last choice would that be advisable; it stays on a persons credit report for at least seven years and could make it more difficult to purchase or even rent a home, to purchase a car, to apply for just about all kinds of credit, etc..

The two most usual kinds of bankruptcy are Chapter 7 and Chapter 13 bankruptcy. At this moment we are going to discuss Chapter 7 bankruptcy.

In a Chapter 7 bankruptcy there is no repayment program. Whatever assets that the debtor owns that are not excused - and this varies in each state - are sold off to pay back debtors and the majority of debts are wiped clean. Assets might include TV sets, computers, auto's, pieces of furniture, articles of clothing, home, bike, jewelry...there is an abundant list of things which could be taken and auctioned off.

After Chapter 7 bankruptcy the debtor in all likelihood will still owe on income taxes, school loans, alimony, child support, and some kinds of court judgments including injury caused by driving under the influence.

Although it may appear ideal to wipe clean all of one's debts and start over, Chapter 7 bankruptcy isn't an everlasting solution for some people. There are also moral and ethical implications to think about.

And as a matter of fact, some folks might find that their income is too high to qualify for Chapter 7 bankruptcy, in that event they would have to to file for Chapter 13 bankruptcy, which involves a five year repayment plan.

The judge will evaluate a number of components when choosing whether to allow for the filing of a Chapter 7 bankruptcy. They don't want people to rack up enormous amounts of consumer debt, like going out and buying expensive toys like new boats, big screen TV's, Sea Doo's, etc. - and then try and wipe away their responsibilities with a bankruptcy.

Some possible extenuating circumstances can be medical bills, disability, unemployment, etc.. Sure enough there can be logical possibilities why an individual might have to file for Chapter 7 bankruptcy.

It's up to the bankruptcy judge as to whether or not he or she will allow the filing of a Chapter 7 bankruptcy plan. The judge has the option of changing over the case to a Chapter 13 bankruptcy or dissolving it entirely.

Prior to filing any type of bankruptcy it would make good sense to consult with a bankruptcy attorney to find out which kind of bankruptcy is most suitable to file, or whether there are more effective options than a bankruptcy filing. Just keep in mind that asking a bankruptcy attorney if you should file for bankruptcy is like asking a child if they would like a new toy. Of course they are going to likely recommend that you file.

In the majority of cases, bankruptcy is not the best option. When folks get to this point, debt is usually not the problem. It is usually an income crisis. If the money was there and or coming in on a regular basis, they could widdle there way out of debt through negotiation with creditors. The best thing to do is to sell off or amputate all the indulgent things in your life you bought because you wanted it and not because you needed it, and work out either a payment plan with creditors, attorneys or lenders or better yet if you are really behind negotiate settlements on your delinquent debts for pennies on the dollar. Additionally, you should do whatever you can to get the income up such as take on another part time job until you can pay down the debt and get your life back in order.

Author: Alan King

About the author:
Alan King is committed to helping people successfully get out of debt using a practical common sense approach. To learn more on how to become debt free in as little as 3-5 years no matter your income visit http://www.onlinewaystowealth.com/

Article source: Free Bankruptcy Articles.

In terms of consumer bankruptcy (non-commercial) filings, there are two principal types - Chapter 7 and Chapter 13 bankruptcy.

Chapter 7 bankruptcy calls for doing away with nearly all of a persons debts, but calls for an enormous sacrifice - virtually everything that the debtor owns is sold off to pay back debtors, and it is just about certain that if the individual declaring Chapter 7 bankruptcy possesses a home, they'll lose that home.

Chapter 13 bankruptcy lends a person the chance to keep their home, as long as payments can be made.

Chapter 13 bankruptcy calls for structuring a repayment plan which can typically last up to 5 years.

Most folks are qualified for Chapter 13 relief if their position is such that their unsecured debts are lower than $336,900 and secured debts are less than $1,010,650.
Examples of Secured debts are those similar to a mortgage or a vehicle.
Unsecured debts are typically debts similar to credit card bills, and some loans that do not have collateral.
When somebody files for Chapter 13 bankruptcy shelter, they agree on a payment program with their creditors and pay back that over the course of five years At that point, the creditors should cease collection action against the debtor.

As soon as the debtor files for Chapter 13 bankruptcy protection, debtors are supposed to end their collection activities. It doesn't imply that they won't get their money returned or that the debtor no longer owes the proceeds.
The debtor usually will have to go to a 341 meeting. There they will have to lay out a list of all of their debts and indebtedness, their income, how their income is generated, and their assets. The creditors could also show up at this meeting. A trustee is designated by the court and will also be present at this meeting. There are no concluding or final decisions made at the meeting. The purpose of this meeting is to determine and gather all of the facts in the case.

Just like in a Chapter 7, the debtor still must repay taxes, student loans, child support, certain types of lawsuit judgement against them, and other various types of obligations.
Chapter 13 is typically going to be the better alternative for debtors since it allows for them to hold back more of their assets and to continue to stay in their house if they own a house.

Author: Alan King

About the author:
Alan King is committed to helping people successfully get out of debt using a practical common sense approach. To learn more on how to become debt free in as little as 3-5 years no matter your income visit http://www.onlinewaystowealth.com/

Article source: Free Bankruptcy Articles.

At its most basic level, Chapter 7 bankruptcy is a means of filing for legal protection from creditors. Some assets, such as a car that you own outright, are exempt from being taken; other assets may be taken by a trustee and liquidated to offset your unpaid debts. At the end of the bankruptcy process, you should receive a Discharge, which frees you from the obligation of paying for your debts (except for certain non-dischargeable debts, such as Federal student loans).

In most Chapter 7 cases, all assets are exempt, so this is often the quickest and easiest way to obtain relief from your consumer debts.

The process begins when your attorney files the bankruptcy petition, along with a list of your debts and assets and a summary of your recent financial history. If all of your assets are exempt, your attorney will also file a 'no asset report' that can help expedite the Discharge and Final Decree process.

It is important to make sure that all of your creditors are listed, and that the information about your creditors, debts, and assets is accurate and complete. Inaccuracies and omissions can cause significant delays, making your stress and worry carry on much longer than necessary.

You will be required to attend a creditors' meeting, where the trustee will question you under oath about your debts and assets. Creditors may also question you, but this rarely happens.

After the creditors' meeting, your creditors will have 60 days to object to the discharge of your case. During this time, you will also have to complete a financial education course, which is available through several approved providers (you can even take the course online). If you complete the course on time, and there are no objections filed, the court will issue the Discharge and Final Decree shortly after the 60 day period has passed.

Once you have received a Discharge, you are free and clear of your debts - and you can start rebuilding your life!

Author: Jay Fleischman

About the author:
New York bankruptcy lawyer Jay S. Fleischman is the Managing Attorney of Fleischman Consumer Law Center. He has helped thousands of New York consumers end their bill problems and get back their good credit. Go to http://www.NewYorkBankruptcyHelp.com to learn more about your options, ask questions, and get more information.

Article source: Free Bankruptcy Articles.

If you file a Chapter 7 bankruptcy in New York, you might be wondering how it will affect your tax refund. There are several factors that determine whether you can keep your refund, or whether you will lose it under the Chapter 7 filing:

1) If you're a homeowner, and have taken the homestead exemption (in New York, this exemption is currently $50,000 per filer), you cannot claim a tax exemption. If you are owed a refund at the time of the Chapter 7 filing, it will be paid to the Chapter 7 trustee.

2) If you filed Chapter 7 after January 1, but before your tax refund is disbursed, the refund will be paid to the Chapter 7 trustee.

3) If you filed your taxes jointly with your spouse, but you are the only one named on the Chapter 7 filing, you will usually lose only half of the tax refund.

4) Tax refunds are pro-rated for Chapter 7 filings made before January 1. If you file bankruptcy on July 1, you will get half the refund, and the trustee will get the other half; if you file on October 1, you wil only get to keep one-quarter of the refund.

5) If you file Chapter 7 after you receive your tax refund, and you spend the refund, you usually won't have to pay it back unless you used it to make a preferential payment to a debtor (e.g., a credit card company, a relative who lent you money). If the refund was used to pay for ordinary expenses, you won't have to worry about the trustee coming after it.

6) If you didn't take the homestead exemption, or you are not a homeowner, you can claim an exemption of $2,500 per filer in New York. Any refund over this threshold will be paid to the Chapter 7 trustee.

Finally, keep in mind that future tax years will not be affected by your Chapter 7 filing - only the tax year in which the bankruptcy petition was made.

Author: Jay Fleischman

About the author:
New York bankruptcy lawyer Jay S. Fleischman is the Managing Attorney of Fleischman Consumer Law Center. He has helped thousands of New York consumers end their bill problems and get back their good credit. Go to http://www.NewYorkBankruptcyHelp.com to learn more about your options, ask questions, and get more information.

Article source: Free Bankruptcy Articles.

If you feel that an IVA is not the right option for you or you do not qualify for an IVA then there are other options for your to explore.

Here are your alternatives to an IVA.

Bankruptcy: Bankruptcy will clear all your unsecured debts completely, you could lose any higher valued assets that you have, if you are a home owner then you could face losing your property. There are certain occupations that will be affected by bankruptcy also. Once bankrupt your creditors will no longer be able to take action against you so all creditor hassle, bailiff threats and debt collection agencies will stop. You can be discharged from bankruptcy within 12 months due to the enterprise act 2002.

Debt Management: A debt management plan will require you to make one lower affordable monthly repayment over a certain period until the debt is paid off. Due to its informal nature, it offers no legal protection against your creditors and no debt will be wiped off. Freezing and stopping Interest and charges cannot be guaranteed either. Debt management will lower the monthly repayments and is suitable for people to use in the short term. Debt management may be suitable for people who do not qualify for an IVA and may not be suited for bankruptcy.

Debt Consolidation loan: A debt consolidation loan will enable you to consolidate all of your debts into one secured monthly repayments. In theory you are getting one bigger secured loan to pay off all your unsecured debts and be left with just one lower monthly payment and interest rate than your current debts. You need to make sure that you will be able to afford the repayments as failure to do so will put your house at risk of being repossessed. A debt consolidation will help out with making your monthly repayments lower but you are just shifting the debt to one bigger debt that could put your house at risk.

Unsecured Lending: If you are exploring debt solutions then usually this may not be an option as you could already have a bad credit rating and find it hard getting a sensible interest rate. If you have tried your bank and have been declined then you will probably find it difficult to obtain credit elsewhere at a decent rate. If you are thinking about unsecured lending as a solution to your debt problem, all you are doing is shifting the debt to a bigger one and if you are not able to keep up with the repayments then you are back to square one.

Author: Elliott Parker

About the author:
Elliott Parker is an advisor at Clear Insolvency.
Bankruptcy Information, IVAs and Debt Management Information and Assistance

Article source: Free Bankruptcy Articles.

It could be that bankruptcy is the most suitable debt solution for you if your debt has become unmanageable and you can't keep up your monthly repayments.. You may of been told that bankruptcy should be considered as a last resort, and that you should try an IVA (Individual Voluntary Arrangement), IPP (Informal Payment Plan) or DMP (Debt Management Plan) first, however this isn't always suitable. What's right for you depends entirely on your circumstances as these are all solutions to the same problem, but tackled differently.

What sets bankruptcy apart from the other debt solutions is the potential to wipe off 100% of your debt and have you discharged from bankruptcy within 12 months. Once discharged you no longer have the bankruptcy restrictions placed on you.

Favourable circumstances concerning bankruptcy

• People with no assets,


• People living in either rented accommodation or with friends and family,


• Those whose livelihoods would not be lost or affected by Bankruptcy

There's no risk of bailiffs coming round and taking any of your belongings. Once you enter into the protection of a bankruptcy order, creditors can no longer harass you for your debts as they are no longer your responsibility. You can keep the tools of your trade, your car (providing it's not over �2500), household goods, clothing, bedding and furniture.

If you own your own property it will not be seized from you if it is in negative equity. However, if there is equity in the property then it will be seized.

How bankruptcy affects you

Once declared bankrupt you will be subjected to certain bankruptcy restrictions. You will not be able to obtain credit over �500 without informing the lender that you are bankrupt. Realistically, you will have difficulty obtaining any credit during the 12 months that you are bankrupt, but once discharged it will become increasingly easier and a discharged bankrupt will still be able to have a mortgage in the future.

Bankruptcy will be recorded on your credit file for 6 years from the day that you were made bankrupt, despite the fact that you will be discharged from bankruptcy after 12 months.
Certain occupations are also excluded from bankruptcy

Some occupations are affected by bankruptcy and it is your responsibility to check your employment contract if you are at all unsure. Click here to see if your occupation is affected.

What do you need to do?

Seeking professional advice is the best way forward. You can complete an enquiry form and one of our advisors will call you back. Alternatively you can contact us directly.

Start to gather all details of your creditors and what you owe, as well as a rough idea of your expenses. You will need this information later. If you're not sure who your creditors are you can find them on your credit file. Request your credit file here.

Author: Elliott Parker

About the author:
Elliott Parker is an advisor at Clear Insolvency.
Bankruptcy Information, IVAs and Debt Management Information and Assistance

Article source: Free Bankruptcy Articles.

If you have decided to file Chapter 7 bankruptcy, one concern that has probably crossed your mind is whether you will be able to keep your car after the bankruptcy. After all, life goes on... you still have a job to drive to and errands to run - so you want to make sure that you are still going to have a means of transportation.

If you are not making payments on your car, the answer is simple - you can use an exemption to keep your car, just like you would for any other asset.

On the other hand, if you are still making payments on your car, the issue is a bit more complicated. There are several ways you can handle your car note, depending on whether or not you really want to keep the car. Whatever you decide, your decision will be communicated through a Statement of Intention (SOI), which is sent to your lender and filed with your bankruptcy paperwork.

If you don't want to keep the car, you can simply walk away from the note by indicating your intent to surrender the car on the SOI. If your vehicle is leased, you will use the SOI to reject (break) the lease.

Suppose, however, that you want to keep the car. You can either pay a lump sum to purchase the car outright (called a 'redemption'), or continue making payments on the car through a reaffirmation or ride-through option. A reaffirmation is a new contract with your lender; a ride-through is a continuation of the same contract - the choice is up to your lender. Either way, you will state your intention to continue making payments on the SOI.

One caution about reaffirmation: If you reaffirm a car note, but the car is worth less than the note, you'll be on the hook for the difference if you can't make your payments. Losing a car is bad... but losing a car and still having to make payments on it is terrible!

Author: Jay Fleischman

About the author:
New York bankruptcy lawyer Jay S. Fleischman is the Managing Attorney of Fleischman Consumer Law Center. He has helped thousands of New York consumers end their bill problems and get back their good credit. Go to http://www.NewYorkBankruptcyHelp.com to learn more about your options, ask questions, and get more information.

Article source: Free Bankruptcy Articles.

If you're considering filing Chapter 7 bankruptcy, you're probably wondering how long the process will take - after all, you want to get on with your life and make a fresh start, so you're in a hurry to get the stress and worry of debt behind you as quickly as possible.

If you're filing a 'no asset' case - that is, all of your assets are exempt under state bankruptcy laws - the filing can be completed in a rather short period of time... often four to six months. The trustee will file a 'no asset report' after meeting with your creditors and making sure that you provided reliable information for the filing. It's important that you provide accurate information during the information-gathering and filing process, because mistakes or inaccuracies can significantly delay the court's Final Decree.

After the 'no asset report' is filed, your creditors will be given the chance to file objections to the discharge of your case. Objections can also lengthen the time it takes to receive a Discharge and Final Decree, but in 'no asset' cases, objections are relatively rare.

There are a few other things that can affect how long a Chapter 7 bankruptcy takes. Redemptions and reaffirmations should be taken care of as soon as possible after the no asset report is filed; likewise, the financial management course should be completed in a timely manner to avoid delays... or worse, a Final Decree without a discharge from your financial obligations.

If non-exempt assets are involved, it is difficult to gauge how long the Chapter 7 will take. If there are no issues raised against you, you can receive a Discharge (which is what most people are really after), but the Final Decree cannot be issued until the trustee has determined the disbursement of your assets. Often, this process can take many months, or even years.

Author: Jay Fleischman

About the author:
New York bankruptcy lawyer Jay S. Fleischman is the Managing Attorney of Fleischman Consumer Law Center. He has helped thousands of New York consumers end their bill problems and get back their good credit. Go to http://www.NewYorkBankruptcyHelp.com to learn more about your options, ask questions, and get more information.

Article source: Free Bankruptcy Articles.

The cost of bankruptcy is one of the most immediate concerns for people who are considering it - after all, how can you pay to have an attorney handle a bankruptcy filing when you don't have the money to pay your bills? Since collectors have probably been hounding you for months and getting every penny they can out of you, it's understandable that the cost of bankruptcy would be a major worry.

There are a number of factors that determine what you will pay in attorney's fees for filing bankruptcy - the prevailing rates and number of bankruptcy attorneys in your area, the complexity of your situation, and the type of bankruptcy you will be filing. Also, some attorneys charge a flat fee, while others quote fees on a case by case basis.

While cost is certainly a major concern for you right now, it's not always the best idea to just hire the cheapest bankruptcy attorney you can find. 'You get what you pay for' is a maxim that certainly applies here. If you run into unforeseen complications with your filing, you want to be sure that your attorney will have the experience and expertise to keep things on track. A seasoned attorney probably won't be the cheapest around, but he or she will be there to answer questions, deal with complications, and make sure that you end up free and clear of your debt.

Some attorneys allow clients to pay their fees in installments - if you can't come up with the entire fee, this might be a good way to get the bankruptcy process started. Just keep in mind that paying in installments might delay your filing. Some states also have programs that provide volunteer attorneys to handle your bankruptcy case at no cost.

Once you choose an attorney, make sure you get a statement of your fees in writing - this way, you will know the exact cost of your bankruptcy filing.

For many people, the cost of bankruptcy seems like a huge obstacle. However, if a creditor offered to wipe out all your debt for just a few hundred dollars, you'd likely jump on the chance. Essentially, bankruptcy offers the same opportunity.

Author: Jay Fleischman

About the author:
New York bankruptcy lawyer Jay S. Fleischman is the Managing Attorney of Fleischman Consumer Law Center. He has helped thousands of New York consumers end their bill problems and get back their good credit. Go to http://www.NewYorkBankruptcyHelp.com to learn more about your options, ask questions, and get more information.


Article source: Free Bankruptcy Articles.