Personal Bankruptcies
by admin on July 26th, 2009
filed under Finance
Personal Bankruptcies are rare but not unique. Before opting for bankruptcy you should be very clear about its meaning, when to opt for it, the right process for declaring bankruptcy, and what are its implications.
Bankruptcy is not the end of the world (as considered by many) but is a chance to make a new beginning. It is a merciful process by which even a severely indebted person can disentangle himself from all of his obligations. However, before opting for bankruptcy a person should exercise all the options and if there is no other option left then only he should declare the bankruptcy by filling a petition with the help of a qualified bankruptcy attorney with a statement of his assets and liabilities as well as of his creditors. Basically, by filling bankruptcy a person lets the court system take over his finances and appoint someone to make an estimate of his debts and explore different ways to repay them. As soon as a person files for bankruptcy and the court approves the petition, all his transactions would get frozen from then on and all his creditors will be notified to not to make any attempts to recover their money from the debtor. After a certain period of time, when the debt has been satisfactorily resolved under the agreement set forth in the bankruptcy proceedings, a discharge is issued releasing the debt and the debtors are duly ordered to stop collection of discharged debts, including legal action and all communications with the debtor. During this period the bankrupt person can avail limited credit only as the legal system and his financial statement will not allow him to enjoy credits beyond a certain limit. Once the total debt amount estimated by the court has been paid, these limits are withdrawn.
In US one can file either Chapter 7 (for irreversible insolvency) or Chapter 13 (for temporary insolvency) bankruptcy. Under Chapter 7, the bankrupt is permitted to retain exempted assets and property. However, the recent tax obligations and the debts to government units are not exempted. Those having steady source of income can only file chapter 13 bankruptcies. Basically, this kind of bankruptcy indicates that the bankrupt is willing to pay his debts within 5 years. Accordingly, his existing assets are not liquidated. Chapter 12 a variation formulated in 1986 is very similar to Chapter 13 bankruptcy. It is applicable to those people who qualify as ‘family farmers’ (people or families who depend on farming for their livelihood) and has a higher debt ceiling than Chapter 13. The social and corporate stigma attached to filling for insolvency has also been removed by the new amendments in US laws. By making this matter confidential the US government has provided an incentive to the bankrupt party to make another attempt at financial solvency.
While filling for bankruptcy it is essential for anyone to provide full disclosure of his assets and liabilities otherwise the person will be considered as fraud and penalties will be imposed on him. Hence, by being honest one can definitely restructure his finances with the help of bankruptcy.
Kelly Liyakasa Posted: Many Americans Run Into C...
by admin on June 15th, 2009
filed under Finance
Many Americans run into credit card debt like a bad habit. There are many options in winding your way out of nasty credit tangles, such as applying for a no annual fee credit card that won’t add an extra burden onto your already dismal debt nightmare. Some are also turning to bankruptcy as a way out of financial fiascos, but what must you need to know before taking this route?
Bankruptcy Facts:
• Bankruptcy is defined as a legal declaration of a person or persons inability to pay off creditors.
• At times, a creditor may issue a bankruptcy petition against those who owe them cash.
• A “stay” is when a debtor is protected from any further credit accusations for the remainder of the bankruptcy filing process.
• Reorganization bankruptcy-allows those in debt to partially pay off their debt while straightening out their money woes.
• Liquidation bankruptcy-This means exactly what it says—a debtor’s assets are passed off to creditors to settle what they owe.
• A debtor doesn’t have to be broke to file for bankruptcy…think Donald Trump.
• The main reason to file for bankruptcy is usually that a debtor cannot keep up with payments, therefore plunging into deeper debt.
• When you file for bankruptcy, it stays on your record for about 10 years. That’s lengthy, but impermanent.
• You will face high interest rates on loans and mortgages of any kind.
• It is considered bankruptcy fraud to pay back one creditor and ignore another under the Bankruptcy Code.
• Bankruptcy filings dropped nearly 70% last year according to the Administration Office of the U.S. Courts.
Although a declining number in those petitioning for bankruptcy is great news, many citizens still face late payments, high interest rates and unresolved debt. Maybe you forgot to pay off that speeding ticket you got in Long Island one night in college. Whatever your circumstance, bad credit can take its toll on every aspect of your life.
A recommended first step to a new credit beginning is to apply for a no annual fee credit card. These are among the best credit cards to choose from, as yearly payments are non-existent. 6StarReviews.com is a site that documents Discover More Card in their no annual fee credit card reviews.
Discover More offers money-strapped cardholders cash back bonuses, as well as the option to cash in or get gift certificates for their rewards points. A great way to heal your credit history is to stop paying when you don’t need to!
Posted by Milton Henyon
Simon Volkov Posted: Probate Court Is a Speciali...
by admin on June 5th, 2009
filed under Finance
Probate court is a specialized court which mainly attends to matters regarding the estate of a person who has died. Depending on the state in which you reside, this type of court might also be referred to as Orphans Court, Court of Equity, Court of Ordinary or Surrogate Court.
The primary function of Probate Court is to make certain the assets of the decedent are properly disbursed to beneficiaries. A probate judge oversees the estate to enforce directives left by the decedent in their Last Will and Testament.
If a person dies Intestate (without leaving a Will), the probate judge assigns someone to administer the estate. Typically, this is a family member. However, in cases where no family members exist or cannot be located, the judge can authorize a court appointed estate executor.
Probate courts came into existence in the United State in 1784, with the first court established in Massachusetts. While several amendments have been made to the Constitution in regard to the authority of probate court, its main function has always been to provide distribution of assets and enforce equity law.
Equity law refers to any order which directs an individual to act or refrain from acting. The difference between equity law and laws regulated by courts of law is that court regulated laws pertain to legal doctrines or statutes, while equity laws are regulated by general guides known as “maxims of equity.”
Within the United States, probate laws are regulated by each individual state. Although these laws vary from state to state, the vast majority require a decedent’s estate to be overseen by an appointed estate executor or administrator. Estate executors are responsible for filing necessary documents including inventory, accounting and tax forms and the distribution of probatable assets to beneficiaries and heirs.
In addition to estate administration, probate courts oversee cases which require the enforcement of equity law. Common equity law cases include the institution of guardianship for an individual found to be incompetent of handling their affairs. Probate courts also oversee involuntary commitment of mentally ill patients to a state hospital.
Adoptions are oftentimes handled through the probate court system. Generally, individuals who engage in the adoption of a minor child are assigned an Assessor who will visit the home and gather information about the adoptive parents and living conditions. In most states it is mandatory for adoptive parents to appear in Probate Court for the final hearing.
Oftentimes, birth certificates are kept on file through the Probate Court. Depending on the state and jurisdiction of the probate court, individuals seeking information about unrecorded births, lost or destroyed birth certificates, or certificates which have not been properly or accurately files must contact the Probate Court to obtain or change information.
Probate courts also oversee applications for legal changes of name and marriage licenses. Typically, there is a nominal fee charged at filing and the process usually takes four to six weeks.
Last, but not least, probate courts oversee civil actions relating to probate including contesting of a Will, determination of beneficiaries, and presumption of death. Although most cases presented in probate court do not require a jury, civil action cases typically require a jury trial for proper disposition.
Posted by Milton Henyon