Chapter 7 Bankruptcy and the Decision to File

When you find yourself unable to pay your bills and unable to get through a meal at home or a television show without a phone call from a collection agent, it's time to take serious action. You may have thought about bankruptcy, perhaps you've done some research on the internet. But you have a reason to stop short of picking up the phone and calling a bankruptcy attorney to take that first step.

Just what is that first step?

The first step is easier than you might have thought. Simply call a bankruptcy attorney (there are plenty, so it's easy to find one close by) and set up an appointment for a consultation. Every bankruptcy attorney offers potential clients a free consultation. This is your opportunity to spend some time with a bankruptcy professional who can answer your questions and help you see more clearly what your options may be.

Most of the people I've spoken with about this have told me that they have spoken with friends, relative, their mechanic, plumber, and 3rd cousin about bankruptcy. Unless their friends, relatives, and third cousins are also practicing bankruptcy attorneys, it would be a fair assumption that the information they impart is far from accurate.

After many years of working with people in all areas of the debt relief industry, I've come to understand a few of the many reasons that people postpone contacting the one resource that can actually provide useful information. What I've discovered above all, is that a great number of people don't make that first call to a bankruptcy attorney because they think if they could afford to file bankruptcy, they wouldn't have a problem in the first place. Where would this kind of assumption come from? I think it might have come from a friend, relative, or third cousin.

Most bankruptcy attorneys who are experienced in consumer law and consumer bankruptcy understand the financial dilemma that their clients are facing. Therefore, they will almost always work with clients on a payment basis. Filing bankruptcy is not like getting a driver's license. The simplest of bankruptcies is an extremely complex process with a massive amount of paperwork that must be generated.

Your bankruptcy attorney, whether you are filing a chapter 7 bankruptcy or chapter 13 bankruptcy, will be able to start working on your case with a reasonable down-payment for the total retainer. When you meet with your bankruptcy lawyer for your free consultation, once they have established the fee for the bankruptcy filing let the attorney know that you will have to satisfy their retainer in payments. Be clear about how much you can afford and how long it will take you to pay the full amount. Be realistic about this; don't expect to stretch payments out over an extended period of time. A chapter 7 bankruptcy can take three to four months to complete, a chapter 13 bankruptcy can take considerably longer.

If the bankruptcy attorney is unable to accommodate you, assuming that your payment schedule proposal is reasonable, find another attorney. There is no point is trying to haggle with an attorney about his or her fee. The quality of a bankruptcy attorney cannot be measured by the amount of their retainer. It's rare that any two attorneys would charge the same amount for filing bankruptcy. The attorney's fee is not nearly as important as how you "feel" about working with a particular attorney. Your bankruptcy attorney will be working with you, and perhaps your spouse, in an area of your life that you hold very closely. It only makes sense that your bankruptcy attorney is someone that you are completely comfortable with and able to trust with your most critical personal financial information.

If you're waiting to find out just how much a bankruptcy filing will cost, I'm afraid that I will have to disappoint you. That's a topic for another article; however, very few if any attorneys will discuss their fee for bankruptcy over the phone. There are many good reasons for that, most importantly, no two bankruptcy cases are the same. The fact is that asking an attorney how much his retainer will be prior to the bankruptcy attorney having an opportunity to review all the particulars of your case, is much the same as telling your doctor that your arm hurts and then asking the doctor what he or she will have to do to make it stop hurting.

The point is that if you insist on not scheduling a meeting with a bankruptcy attorney until you find one that will commit to a "price" is not going to help you get relief from the creditors and collectors that will continue to harass you. If you wait too long, you will likely find yourself in court with any one of your creditors.

If you are struggling with debt, and the situation gets more out of hand with passing time, you owe it to yourself to find out if bankruptcy is the right choice. Most people who have filed bankruptcy will tell you that they wish they would have done it sooner.

David Miller is a freelance writer and marketing consultant. He has written extensively about bankruptcy, debt settlement, debt consolidation, and foreclosure.

Can I Keep My Car If I File Bankruptcy?

If the thought of losing a vehicle makes you wary of filing bankruptcy, I will tell you this: Don't worry - you don't have to lose your car in a bankruptcy! The bankruptcy code and state exemptions are designed to help protect your interest in your vehicle(s).

Of course, it would be nearly impossible to explain all the nuances and variations of filing a bankruptcy and keeping your car in a single article. So, for the sake of brevity, I'm going to focus on keeping your vehicle in Iowa chapter 7 bankruptcy cases, which can be broken down into five key questions. In this post, I'll cover those five questions. Then in part two of Can I Keep My Car If I File Bankruptcy?, we'll actually apply those questions to some real life scenarios and show how they impact your ability to keep your car when filing bankruptcy.

Those questions are:

1. How Many Cars Do You Own?

This sounds simple, doesn't it? But you'd be surprised how easily people can misunderstand the concept of "own." The basic rule is: If your name is on the title to the vehicle, you have an ownership in the vehicle. I've had to clarify that point in all of the following examples:

"My name is still on the title to my ex-wife's car." Don't tell her I said this, but you own it.
"My buddy got an OWI and he can't register a car in his name so we put it in my name." Questionable judgment on your part, but you still own it.
"My kid bought a car and we put it in my name for insurance purposes." Congratulations, you own it!
"I have an old Camaro but most of the parts I have for it can fit in two medium sized boxes." Is the title in one of those boxes? Is your name on the title? Yes? Well, handle those boxes with care, 'cause you own it!
"I have six cars but none of them run." Six cars. Six titles. Six of your signatures on the dotted line? Jackpot, you own a fleet.
"I drive a car that my parents gave me after they bought it for me and I make the payments." They bought it. You're buying it. So who owns it? Check the name on the title - that's who.

The point is, it doesn't matter who drives it, where you park it, who's making payments, whether or not it runs, or even if it's all in one piece. What matters is whose name is on the title. If it's your name, then I am going to list the vehicle as an asset.

2. What is the Year, Make, Model, and Condition of Each of Your Vehicles?

For each car that you have an ownership interest in I am going to need to list the year, make, model, and condition. Again, none of that has any bearing on ownership, but I'll need information to help answer the next question.

3. How Much Is Each Vehicle Worth?

Based on your answers to the second question, I am going research the value of the vehicle at NADA.com, Ebay, and other resources to determine the value of the vehicle(s). Many times I will initially over value the vehicle.

I know I've over estimated the value of the car when I review the numbers with my client and they laugh at the figure I've come up with. That's often when they fill me in on secrets about the car, such as the driver's-side door that's held on with a coat hanger and you have to climb through the hatch to get into it. I always enjoy those stories. They remind me of the 1993 Geo Metro I owned while I was in college. Neither door could be opened from the outside. I'd climb through the hatchback to get in the car. From there I would open the passenger door and let my date in. I liked to think of myself as a gentleman for always getting my date's door. It must have worked, because I ultimately married one of the young ladies that I took out in that car. Yeah, I remember that car fondly - almost wish I still had.

Anyway, the point is, there can be adjustments to the value of the vehicle based on the vehicle's condition.

4. Are There Any Loans Against The Vehicles?

Car loans include any loan for which a car serves as collateral. In other words, the car is security for the loan. This type of loan is called a secured loan. Car loans can include a loan taken out to purchase a car (purchase money loan) or loans that are taken out where you pledge the title to a car you already own. An example of this would be asking the bank for a $1,000.00 loan and the bank agrees to the make the loan but they want the title to your car as collateral.

5. Is There Equity in The Car?

Equity is the value of the car minus any liens (money owed) against the car. For example, if your car is worth $10,000.00 and you owe $6,000.00 for it, you have $4,000.00 of equity in the car.

Of course, there's also "negative equity." For example, if you have a car that's worth $7,000.00 and you owe $9,000.00 for it, you have $2,000.00 of negative equity, or -$2,000.00. We also call this situation being "upside down."

Each time I analyze whether or not a client can keep a car while filing bankruptcy, I start with those five questions. Based on the answers they provide, I can pretty quickly tell a client if they will be able to keep their car. Sometimes even when it initially looks like the client can't keep the car, we can still do some wrangling and make everything work out.

Coming up in part 2 of Can I Keep My Car If I File Bankruptcy? we'll look at a few different scenarios and whether or not the client can keep the cars after answering the five questions.

Sam Marks graduated from Drake Law School after completing undergraduate work at the University of Iowa. After passing the bar, he developed a general law practice that included work in criminal, family and juvenile law. As time passed, he began focusing specifically in the areas of bankruptcy and consumer protection.

Sam is frequently asked to provide lectures to attorneys, business professionals and the public on the topics of bankruptcy and consumer protection and how these issues affect other aspects of the law. He enjoys these presentations and the opportunity they provide to discuss current events the legal system.

Retirees Put In Bankruptcy From Their Adult Children

In the past, once the kids became of age they moved out, got a job and supported themselves. Lately, there has been a reemergence of adult children moving in with their parents. It's easy to understand some of the reasons for this phenomenon. With our current economy, many young adults and families went out and over extended themselves buying their dream home just to find out that the bottom dropped out of the market and they could no longer afford it. After losing their home to foreclosure and filing for bankruptcy, they have no other choice but to move in with mom and dad. Over the last 15 years, the word no was virtually nonexistent. When an individual applied for a credit card, the question would be how much would you like your limit to be? Never would it be, can you afford it? The reality check came when in 2007 the bank started noticing that all the paper they were holding was worthless. What they had created was a giant credit and real estate bubble that was ready to burst. Then it happened, and the rest was history. The real estate bubble affected all factions of the economy all the way down to the local municipalities.

Now, after many of these young families have moved in with their retired parents, the parents have had to start looking for work because of having the extra mouths to feed. When they retired, they knew how much money they can count on for their expenses each month, which didn't include paying for their adult children. With all these extra expenses and no jobs to be found, many of these retirees have been forced to hire a bankruptcy attorney to protect what's left by filing for bankruptcy. Usually, by the time this happens the parents have tapped into their home equity which was previously paid off. They have also run up their credit cards hoping that the situation would change and get better. When you're on a fixed income it's impossible to cover the expenses of any additional people. At some point, they find themselves unable to pay their bills and being buried under a mountain of debt. Since they refinanced their home, there's a chance they might even be in danger of losing it to foreclosure. The only option at this point is to file for bankruptcy.

What's sad is, these retired parents are not filing bankruptcy because of overspending on unnecessary luxury items, but just having too much love for their children and not being able to say no. Looking back, if the kids had just seen the warning signs and contacted a bankruptcy attorney before it was too late all this might not have happened. What's even worse is, this story is being repeated throughout the country and getting worse. Before ending up in a bankruptcy filing, the parent on a fixed income needs to make the tough choices and lay some ground rules before allowing this to happen. It's tough to expect an individual to go back to work at retirement age to support an additional family, especially if the kids aren't even looking for work or unwilling to work because the jobs available don't pay enough.

Discussing this matter with a bankruptcy attorney will help everyone understand that all the members of the family have to help and pool their resources. Trying to solve one person's financial trouble will just drag another one down.

How to Avail a Chase Mortgage Loan Modification

Like so many homeowners, you may find yourself in the same drought. That is, trying to obtain a mortgage loan that covers all housing expenses yet is conveniently affordable making repayments. The security that a house is safeguarded and preserved is one of the most important thoughts every home owner has in mind. After all, investing in a house does not come easy. Getting a Chase mortgage loan modification might just be the answer to your mortgage troubles.
A Chase mortgage loan modification is a permanent alteration to the terms of mortgage to so as to make it more affordable for borrowers facing financial adversities. Chase loan modification has truly stepped out in terms of helping people out, specifically home owners in securing their homes. It has joined the government's new loan modification program in order to improve its services by letting borrowers change their mortgage in order to get monthly payments back under control, eliminating the chances of residences to be foreclosed. This is very beneficial to you since you not only get protection for your house as well as financial leeway but as well as a more affordable repayment amount.
Steps to Getting A Chase Mortgage Loan Modification
Chase loan modification serves a lot of home owners openly that is why the need to fully understand what goes around it and how the process works is very essential. Applying and qualifying for this loan must be completed with precise information to ensure your approval.
1.)Show them that you are in financial turmoil.
· Mortgage loan modifications are only given to people who are truly in dire need of support so it is your task to show them that you are in hardship. Show them proof.
· You can start out by asking help from a financial firm to help you put together a hardship letter stating that you are way beyond your means of supporting yourself, that your debts outdo your earnings and that you need to make a reassessment of your present loan condition. Present valid documents that will prove to them that you are paying more than 37% of your monthly income to your mortgage lender.
· To further make your evaluation easy, take the eligibility test of Chase website. It is a tool that gives a quick review whether or not you are qualified for a Chase mortgage loan modification.
2.)Check with a financial service.
· The application process for Chase modification is quite a hassle so it is best that you seek help from a professional and tell them that you are planning to avail a Chase loan modification. This way, the company will help you gather all needed requirements. Also, this allows you to get a cut back on interest rates.
3.)Make a budget.
· This is the most crucial step in Chase loan modification since this will determine your success in negotiating monthly repayments. So, it is advised that you set aside money just for this and for the mean time cut back on unnecessary splurges.
· If you can, make the amount of budget be the amount of repayment as well.
4.)Complete the application process.
· Once you have proven that you are suitable for obtaining such mortgage, now is the time to gather all required papers.
· As always, be honest when filing up the information form. See to it that it validates every supporting document you have.
· A Chase form usually lists down all details needed such as financial statements, bank statements, W-2 forms, etc. so make sure that you have all of it handy.
5.)Continue home loan repayments.
· Since your application is still being evaluated which normally takes about 30 days, maintain making payments so as to avoid any more debts to incur.
6.)Complete the trial period.
· Once approved, you are placed in a 3 month trial plan as a probationary period in order to help Chase programs ensure that you are able to make mortgage payments and that the terms work for you.
7.)Make on time repayments.
· When you surpass the trial period, final loan modification is given to you. This is permanent so see to it that you do not make any defaults on payments.
Chase mortgage loan modification is the best way to prevent foreclosure of homes. It is easy, fast and above all inexpensive allowing home owners retain their hard-earned investment.

Being Debt Free After Bankruptcy

The words "bankruptcy" and "debt free" generally are not mentioned together in the same sentence. Most people file for bankruptcy because they are in dire economic straits. Their debts far exceed their cash flow and net worth making it impossible to pay off their obligations. Because of this, they will file for bankruptcy protection. But, can doing so truly make you debt free? There are no easy answers to this question but history does show us that many have actually suffered through the pain of bankruptcy and then emerged completely and totally debt free.
In order to become debt free, you will need to file either Chapter 7 or Chapter 13. Chapter 7 bankruptcy entails liquidation but there is more to it than that. Namely, within this category of bankruptcy, it may be possible to have your unsecured debts discharged. By discharged, that means all or a portion of them will be completely eliminated.
With Chapter 13 bankruptcy, the process is a bit more complicated but the end result could very well be that you end up debt free. This form of bankruptcy entails setting up a repayment plan where your debt is restructured. You will be required to pay back your debts and end up debt free within 3 to 5 years. As with Chapter 7 bankruptcy, it may be possible to eliminate a host of your unsecured debt as the courts can discharge all or a portion of it in Chapter 13 as well. The entire process of Chapter 13 bankruptcy may take a longer amount of time but in the end you will not have the specter of debt hanging over you.
Of course, you also need to be able to move forward in an effective manner when you seek protection under the bankruptcy laws.
What does that mean? The meaning is nothing hidden. Once you have exited from bankruptcy, you need to curtail the activities that lead you into financial disarray in the first place. Most will agree with this assessment...in theory. However, they need to follow through with concrete actions in order to arrive at the desired result.
When you once again become debt free, you need to make the appropriate decisions which will ensure you stay debt free. If not then you will likely find yourself in the same difficult position you were in prior to entering into bankruptcy. Such a cycle would not exactly be the most appealing scenario to entertain. Yet, many do fall into such a problematic trap which could prove to be even more troubling the second time around.
In general, the entire process of Chapter 7 or Chapter 13 bankruptcy makes it possible to transition into a new lifestyle with new spending habits. Most will take advantage of the lessons of filing for bankruptcy as a means of discovering what is required to remain debt free from that point forward.
It is never easy to live a life that is completely debt free but those capable of eventually doing so can take solace in the fact they will never have to deal with the shackles excessive debt can attach to their lives.