While many people use Chapter 7 to eliminate their credit card debt, your case may also clear other types of debt. Most unsecured debts may be included in your filing, including:
•Credit card debt
•Medical bills
•Payday loans
•Utility bills
•Personal loans
Unlike some programs, you won't have to pick and choose. If you have credit card bills, medical bills and payday loan debt you may include and eliminate all of them in a single Chapter 7 case.
Even if you're behind on your mortgage payments a Chapter 7 filing may still help. If you're back on your feet, clearing these debts may help you catch up on mortgage and car payments, while Chapter 7's protections may help you secure your property.
Wednesday, August 18, 2010
How Chapter 7 Stops Creditor Harassment, Protects Your Property
Chapter 7 does more than just clear your debt. The bankruptcy laws are designed to protect you from creditor harassment, and protect your property from a forced sale, foreclosure and repossession.
The bankruptcy automatic stay puts an immediate stop to:
•Creditor phone calls, letters and harassment
•Repossession
•Wage garnishment
•Foreclosure
•Lawsuits
This typically kicks in when you file, and protects throughout your case.
Chapter 7 exemptions provide long term protection, outlining the types and amounts of property that are fully protected from forced sale. This is why there is rarely ever a forced sale of any property in a Chapter 7 case.
Find out how the automatic stay and exemptions may help you protect your future. Get a free case evaluation with a local Chapter 7 bankruptcy lawyer near you, Day and evening appointment's available,contact us at 916-988-8001.
The bankruptcy automatic stay puts an immediate stop to:
•Creditor phone calls, letters and harassment
•Repossession
•Wage garnishment
•Foreclosure
•Lawsuits
This typically kicks in when you file, and protects throughout your case.
Chapter 7 exemptions provide long term protection, outlining the types and amounts of property that are fully protected from forced sale. This is why there is rarely ever a forced sale of any property in a Chapter 7 case.
Find out how the automatic stay and exemptions may help you protect your future. Get a free case evaluation with a local Chapter 7 bankruptcy lawyer near you, Day and evening appointment's available,contact us at 916-988-8001.
Federal Holiday - Labor Day
All divisions of the Bankruptcy Court will be closed on Monday, September 6, 2010 in observance of Labor Day.
Thursday, August 5, 2010
New Bankruptcy Laws Actually Encourage Greater Losses Due to Increased Foreclosures
The passage of the tough new bankruptcy laws in 2005 was supposed to benefit consumers in the form of reducing losses to lenders by making it harder to file bankruptcy. But two new reports released this week show that the new laws not only cost consumers more in terms of credit card debt, but may actually be encouraging greater losses to banks due to increased foreclosures.
According to new research, after the 2005 bankruptcy reform went into effect, both personal bankruptcy filings and credit card company losses sharply declined.
At the same time, while upfront annual fees on credit cards have been all but eliminated, fees have been climbing and becoming less transparent over the years, and there is no evidence that the 2005 bankruptcy reform reversed this trend...over-limit fees and late fees have been climbing since well before bankruptcy reform, and that this trend continued after the 2005 bankruptcy reform.
Industry consolidation in the credit card market enabled the top card issuers to avoid losses from "price wars" by reducing rates to attract new customers.
The credit card industry might also be able to avoid price competition because of complex, multi-tiered pricing that can make it difficult for customers to comparison shop. These fees and interest rates--complex in their own right--are presented in a form that is difficult to understand. Customers faced with such complex pricing systematically miscalculate and underestimate the cost of credit card debt.
A 2006 report from the Government Accountability Office (GAO) that found not only that bank fees and penalties are continuing to rise for card holders, but that credit card disclosures and explanations of fees are deliberately written in manners that make them hard to understand. The GAO also recommended in a separate report that credit card issuers use existing technology to customize card disclosures to individual cardholders, particularly those with high balances or frequent late payments.
The fact that after bankruptcy reform, interest rates and fees continued to rise and grace periods continued to fall, even though credit card companies reaped tremendous gains from declining bankruptcy losses demonstrates that the credit card market is not price-competitive. This lack of price competition explains why the benefits of bankruptcy reform accrued exclusively to credit card lenders and were not shared with the average American family, and why...bankruptcy reform was a failure.
Negative Impact
Another effect of the bankruptcy laws is the increase in foreclosures and defaults by mortgage holders who can't afford to make payments on their homes. The more stringent bankruptcy code, by restricting financial relief available under the bankruptcy code and by increased the costs of filing bankruptcy, appears to have increased the number of individuals walking away from their homes, their mortgages, and their other financial obligations without seeking the protection of the bankruptcy court.
Under the new law, most individual filers would not qualify for Chapter 7 bankruptcy, which allows for the liquidation and erasure of most debt. Instead, they would be forced to file under Chapter 13, which requires regular payments of at least some of their debt to creditors.
The more stringent requirements of the new laws may be causing homeowners to "walk away" and let their homes go into foreclosure rather than attempt to file for bankruptcy. The restrictions on bankruptcy filings and subsequent increase in foreclosures puts downward price pressures on neighborhoods where many homes are in default or foreclosed upon.
One of the great lessons and ironies associated with [the new bankruptcy law] is that the new law by increasing the dollar value of assets susceptible to default has weakened many of the financial companies that sought the more stringent bankruptcy code.
Contact Steve Ruehmann at 916.988.8001 to talk to an experienced California Bankruptcy Attorney and visit us on-line at www.ruehmannlaw.com.
According to new research, after the 2005 bankruptcy reform went into effect, both personal bankruptcy filings and credit card company losses sharply declined.
At the same time, while upfront annual fees on credit cards have been all but eliminated, fees have been climbing and becoming less transparent over the years, and there is no evidence that the 2005 bankruptcy reform reversed this trend...over-limit fees and late fees have been climbing since well before bankruptcy reform, and that this trend continued after the 2005 bankruptcy reform.
Industry consolidation in the credit card market enabled the top card issuers to avoid losses from "price wars" by reducing rates to attract new customers.
The credit card industry might also be able to avoid price competition because of complex, multi-tiered pricing that can make it difficult for customers to comparison shop. These fees and interest rates--complex in their own right--are presented in a form that is difficult to understand. Customers faced with such complex pricing systematically miscalculate and underestimate the cost of credit card debt.
A 2006 report from the Government Accountability Office (GAO) that found not only that bank fees and penalties are continuing to rise for card holders, but that credit card disclosures and explanations of fees are deliberately written in manners that make them hard to understand. The GAO also recommended in a separate report that credit card issuers use existing technology to customize card disclosures to individual cardholders, particularly those with high balances or frequent late payments.
The fact that after bankruptcy reform, interest rates and fees continued to rise and grace periods continued to fall, even though credit card companies reaped tremendous gains from declining bankruptcy losses demonstrates that the credit card market is not price-competitive. This lack of price competition explains why the benefits of bankruptcy reform accrued exclusively to credit card lenders and were not shared with the average American family, and why...bankruptcy reform was a failure.
Negative Impact
Another effect of the bankruptcy laws is the increase in foreclosures and defaults by mortgage holders who can't afford to make payments on their homes. The more stringent bankruptcy code, by restricting financial relief available under the bankruptcy code and by increased the costs of filing bankruptcy, appears to have increased the number of individuals walking away from their homes, their mortgages, and their other financial obligations without seeking the protection of the bankruptcy court.
Under the new law, most individual filers would not qualify for Chapter 7 bankruptcy, which allows for the liquidation and erasure of most debt. Instead, they would be forced to file under Chapter 13, which requires regular payments of at least some of their debt to creditors.
The more stringent requirements of the new laws may be causing homeowners to "walk away" and let their homes go into foreclosure rather than attempt to file for bankruptcy. The restrictions on bankruptcy filings and subsequent increase in foreclosures puts downward price pressures on neighborhoods where many homes are in default or foreclosed upon.
One of the great lessons and ironies associated with [the new bankruptcy law] is that the new law by increasing the dollar value of assets susceptible to default has weakened many of the financial companies that sought the more stringent bankruptcy code.
Contact Steve Ruehmann at 916.988.8001 to talk to an experienced California Bankruptcy Attorney and visit us on-line at www.ruehmannlaw.com.
Wednesday, July 28, 2010
Alternative to Bankruptcy; Credit Restoration
Improve your credit rating by helping you correct or remove negative aspects of your credit report.
Our programs are designed to help people recover quickly from financial hardship resulting from a major life change. Our team of professionals help you do this without the time and hassle of working on your own.
Benefits to you:
- Significant credit improvement in as little as 90 days
- Can help you qualify for a home or a car loan
- Good credit will save you money on loan interest rates
- May improve your employability
- Is available to you any time
For a free credit restoration consultation, please call 916-988-8001.
Bankruptcy Attorneys and Foreclosure Prevention Attorneys
Our Bankruptcy Attorneys and Foreclosure Prevention Attorneys have options for every situation...you just need to call. Don't wait any longer, it may only get worse...
We know times are tough, you aren't sure what to do, but you know one thing, you need to do something. Maybe you are upside down in your home and tired of throwing good money at a bad problem, maybe you can't afford your house payments anymore due to an adjusting loan, you've tried talking with your lender and after months you have gotten nowhere and you are frusterated and scared.
Your bills are mounting, your credit cards are maxed, you are starting to receive creditor calls...it is time to let the experienced bankruptcy and real estate attorneys at the Litchney Law Firm step in and help you with all of your problems, we will steer you in the right direction for YOU. We are one of the few law firms that can assist with BOTH your real estate needs (short sales, foreclosure assistance, deed-in-lieu of foreclosure, rescission of foreclosure, etc) and/or your bankruptcy needs so whichever option fits you and your needs the best, you can rest assured that our experienced attorneys can assist you quickly and competently. And with our offer of a free consultation you have nothing to lose and everything to gain.
Call the Fisher & Reuhmann Law Office today to schedule your free one-on-one confidential consultation with one of our experienced and caring Bankruptcy and Foreclosure Prevention Attorneys.
(916)988-8001
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