Filing Bankruptcy and Really Wanting to Keep Something – Reaffirm It

It’s no secret that Americans are in love with their cars and all their stuff. Over the years, all of this stuff has been bought on credit making people not realize that this stuff they think they own really isn’t theirs. When someone comes to the end of their rope financially and needs to file bankruptcy, one of the hardest things for them to do is to let their stuff go. Most will fight tooth and nail to figure out a way to hang on to a car they can’t afford or that new 80 inch big screen. What they need to understand is, if you don’t pay for it you don’t own it. This is what the court believes and just because it is sitting in your driveway, it’s still not yours. That’s why many individuals find ways to kick the can down the road only to face the inevitable bankruptcy filing years later. They continue to waste money on payments knowing deep down there is no way they’ll be able to hang on for much longer. There is a way to keep something when filing bankruptcy. That is reaffirming the debt. Reaffirming the debt in a nutshell is removing the debt from the bankruptcy and signing a contract with the creditor that the person will continue to pay until the debt is paid off. The downside to this is there is no way out if they lose their job or their financial situation gets worse. They will be at the mercy of the creditor to collect on that debt.

Nowadays, most creditors require an individual filing to submit a reaffirmation agreement during their bankruptcy filing. Even in a Chapter 7 bankruptcy, any debt that is secured by the property like an automobile or a house, the lender will make sure that that is reaffirmed so there is no question after the bankruptcy discharge. All a reaffirmation agreement is, is a contract guaranteeing the person will be responsible for the debt after the bankruptcy discharge. It is true, the lien holder still has the ability to repossess the property or file a foreclosure on a home if the person decides to not pay for it.

When a person is filing Chapter 7, they should decide whether or not to let any questionable property go in the bankruptcy filing. This is the time to let it go because all liability will be included in the bankruptcy discharge. If the car loan is upside down or the car is in bad shape, this would be the time to give it back to the lender and look at for new car. If the person decides to reaffirm the debt and the car dies immediately following the bankruptcy discharge, they will be responsible to continue paying on a loan for a car that doesn’t work. This could be devastating for someone that is trying to recover from filing bankruptcy. This is something that should be discussed with the bankruptcy attorney and consider their advice. For someone that is worried about getting credit and being able to buy another vehicle, usually after the bankruptcy filing this will be one of the easier loans to get. The only problem is, interest rates and the price of the vehicle might be a little bit higher. This is also a good way to start rebuilding credit after filing for bankruptcy.

People need to remember that all that stuff is not important. Possessions can come and go and they don’t make one happy. Sometimes many people post bankruptcy will find that it is freeing to let it all go and start over. Over the years many wealthy men have had to let it all go, hit rock bottom, only to find themselves back on top of few years later.

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Importance of Understanding Business Liquidation

If your business is going through financial calamities, then maybe liquidation is the only option left. However, it is one of those issues, which you would never like to discuss with anyone. Liquidation is a straightforward process but if it is something that you have not faced before, which is why it can be horrifying for you. We all have read about liquidation in books and have even heard tons of liquidation cases too but not many of us know about its bitterness.

Liquidation is sometimes the only solution. It is the process in which you will limit your liability as a director and will wind up the operations of the company. However, it is not as simple as it seems because there are certain obligations and legal procedures that are attached with it. Some people need advice on company liquidation and honestly, it is better to get a useful piece of advice when you are unable to find any way out of your financial pressures.

Some people doubt that liquidation is the best option for their business. It would be better to find company insolvency experts to look for the odds and to analyze each option to make a final decision. Before calling an attorney, you must be assured that whether your business should be liquefied or not. You need to access how much debt is secured and how much is not before you start with the process of liquidation. When you will disclose all the information to the insolvency expert then he will be at a better position to help you. Some businesspersons do not trust their insolvency experts and they keep things secret. This can ultimately be bad for them because in this way, the expert will not be able to help them in the right manner.

There is a solution to every problem and so is the case for business debts. There are ways that you can handle the debts in the right way to save your business assets from liquidation. Experienced professionals, who have handled the debt cases, can resolve your debt related problems by accessing your situation. You will be satisfied with liquidation if you will get the appropriate advice from your liquidation expert. There are tons of legalities associated with the process of liquidation. Instead of being bombarded with jargon, the company insolvency experts will help you in understanding these terms.

Liquidation can be voluntary and compulsory. Voluntary liquidation is simple and initiated by the shareholders and directors. Compulsory liquidation is the process that is initiated by the creditor when the company is not in a position to pay its debts. It is usually the last resort left. For both types of liquidations, getting professional advice is going to be better. It is easy to find insolvency experts now but hiring an experienced one is recommended here. Some of the experts also intend to make more money out of the defaulter so be sure that you do thorough research before hiring any.

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Wipe Out the Holiday Debt Stress With a Bankruptcy Filing

Christmas is a very stressful time of the year but more than that is New Year’s. While people tried to fake their way through the holidays buying gifts they can’t afford for people they only see once a year. Once the new year rolls around, also come the holiday bills with it. When you thought you couldn’t be any more broke in December, you realize that you can when you get a pile of bills you can’t afford to pay. This is a cycle that happens to the majority of middle-class America every year. When we should be enjoying the true meaning of Christmas, we are more worried about going to parties and spending money we don’t have going further in debt. This is when people should really take a hard look at their lives and make the major changes necessary to get out of debt and become debt free. This seems like it might be impossible for most people but sometimes filing bankruptcy might just be what the doctor ordered.

The Christmas season is a tumultuous time and it’s really no surprise that filing for bankruptcy will be a very stressful time. The thing most people don’t consider is the stress they’re already under prior to the bankruptcy filing is probably way worse than the entire legal procedure. It’s like having a surgery, they worry coming up to it, many times, this is way worse for them than the procedure and recovery. People need to consider that these tough times will not last forever and there is a light at the end of the tunnel. Especially if all the debt is going to be wiped out in a Chapter 7 bankruptcy discharge. Sure credit might be a little bit tight initially following the bankruptcy discharge, but even that will return to those who stayed diligent getting their finances back on track. Getting all stressed out about the unknown is foolish because we don’t know what the next day will bring. Live one day at a time and when it gets really bad one hour at a time. My mom used to always tell me 90% of everything you worry about never comes to pass, so why worry.

There are some ways to eliminate stress while you are in the process of a bankruptcy filing. One way is to call your bankruptcy attorney and ask the questions that are bothering you. Many times getting those bankruptcy questions answered will calm your fears and help you sleep better. Another thing is not to dwell on the problems. Sometimes calling a close friend and venting about all your worries will do the trick. If necessary, try taking a walk and clear your head. If you don’t mind exercising, go to the gym for a few hours and exercise. It’s a well-known fact that exercising helps with depression as it sends endorphins to your brain. During this tough time, learn to enjoy music and the outdoors. Sometimes it’s nice to just pick up a book and go sit under a tree and enjoy the beauty of the environment. My dad always used to say when you’re upset go do a chore like washing your car and you will have the feeling of accomplishment in your life.

The bottom line is, worrying only leads to more stress and if you need to file bankruptcy, you can’t get around that, so you’ll need to make the best of it. Sit back and look to the future for the positives of filing bankruptcy like getting a jump start to become debt-free once again. Being debt free has become a lifestyle that people think is old-school. The truth is, it is much better than being buried in debt.

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Chill Out When Filing Bankruptcy

While no one really wants to file for bankruptcy sometimes it’s necessary. To be successful in a bankruptcy filing attention to details is very important. When a bankruptcy attorney tells her client to do something, it’s not an option, just do it. A person should always pay close attention to what they receive in the mail. Typically, when a person is filing for bankruptcy, they might throwaway just about everything that comes in the mail. At that point in time there is no good news that comes in the mail. When a person is filing bankruptcy many times the court will send important information regarding their case. Not opening the mail can possibly cause damage to the case and even risk losing the bankruptcy discharge. There could be a document deficiency sent out that could be easily rectified, but because the mail is not opened it gets overlooked.

The bankruptcy filing isn’t completed overnight and an individual needs to be patient and just chill out. Just because the bankruptcy petition has been filed it doesn’t mean that it is over. The whole process takes 4 to 6 months to file Chapter 7 bankruptcy and around five years for a Chapter 13. Patience is necessary to make sure the individual doesn’t drive the bankruptcy attorney nuts. Coming up to a bankruptcy filing is a terrible time in one’s life. Most people feel the stress of financial failure. Some deal with it better than others, but many completely fall apart. The decision that leads to filing bankruptcy will usually take some time with many financial mistakes along the way. There are many emotions during this time and that’s why in most circumstances it’s best to be represented by a bankruptcy attorney. An experienced bankruptcy attorney will be able to calm the fears of the individual and fend off creditors that continue to harass the individual. After the bankruptcy petition is filed, the person needs to calm down and understand that they are under the power of the automatic stay. All financial attacks will stop and there is no longer any reason to worry about phone calls and letters.

The last thing is to be prepared. Organization is very important to have a successful bankruptcy discharge. For someone that is unorganized it is time to change. The bankruptcy court will require a list of documents to be submitted. They won’t accept a box of papers in no specific order. All the documentation should be organized and submitted in the proper order. Most of the time, a bankruptcy attorney will stop working on a person’s case that is unorganized. They will wait until they gather all the documentation to complete the bankruptcy petition and then file it. People need to remember, the faster they get all the information in, the faster the bankruptcy will be completed.

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