What is bankruptcy?

Bankruptcy is one way of dealing with debts you cannot pay. The bankruptcy proceedings will free you from overwhelming debts so you can make a fresh start, subject to some restrictions; and make sure your assets are shared out fairly among your creditors. Anyone can go bankrupt, including individual members of a partnership.

How are you made bankrupt?

A court makes a bankruptcy order only after a bankruptcy petition has been presented. It is usually presented either by yourself (debtor’s petition); or by one or more creditors who are owed at least £750 by you and that amount is unsecured (creditor’s petition).

Bankruptcy petitions are usually presented at a county court near to where you trade or live or at the High Court in London.

What happens to my assets?

You will no longer control your assets.

You can keep the following items unless their individual value is more than the cost of a reasonable replacement: tools, books, vehicles and other items of equipment which you need to use personally in your employment, business or vocation; clothing, bedding, furniture, household equipment and other basic items you and your family need in the home. The Official Receiver or any insolvency practitioner who is appointed as trustee will take control of all your other assets on the making of the bankruptcy order. He will dispose of them and use the money to pay the fees, costs and expenses of the bankruptcy and then your creditors.

What happens to my home?

If you own your home, whether freehold or leasehold, solely or jointly, mortgaged or otherwise, your interest in the home will form part of your estate which will be dealt with by your trustee. The home may have to be sold to go towards paying your debts.

If your husband, wife or children are living with you, it may be possible for the sale in the bankruptcy to be put off until after the end of the first year of your bankruptcy. This gives time for other housing arrangements to be made. Your husband, wife, partner, a relative or friend may be able to buy your interest in your home from the trustee. Such a purchase would prevent a sale of the property by the trustee at a future date. Your spouse or any other interested party should be encouraged to take legal advice about the home as soon as possible.

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Tags: Bankruptcy, get out of debt, debt, money, finance, avoid bankruptcy, personal bankruptcy

Bankruptcy is a lawful phrase that most of us have heard quite often. Many of us usually
think that a someone has happened to be broke when they are bankrupt, yet that is frequently
not nearly close to the truth. We have this predetermined idea that in order for us to be
bankrupt, we are careless and lazy. In the actual world, it can be one of the most
accountable things that anyone can decide to do when it is really required. It is not a
simple choice for any of us to choose, but it can be the most suitable for some situations.

When you decide to declare bankruptcy, what you will actually be saying to your creditors is
that you have no way to repay all your debt. You will have to announce bankruptcy through your
attorney. If it happens that your condition is a legitimate one, you stand a chance to be freed
of your debt. All the creditors that you owe money will have no right asking for it any more.
This can sound grand at first but it does have its downsides as well.

You should know one thing though; having a thing like a bankruptcy apearinging on your credit
report for the following 6 to 10 years is not going to be beneficial to you in any way. It
will show there in big, bold, red writing on your credit report for a long, long period of time.
Because of bankruptcy, you will have difficulty obtaining credit cards, loans or making big
purchases even though, these things may have pushed you to declare bankruptcy in the beginning.

If you can show that you are making some real effort with your monetary condition, you could
find it not as much of difficulty to obtain financing but not very much though. Nevertheless,
it is an excellent way to take monetary responsibility of your own life. Besides that, you will
feel a very large weight being lifted off your back.

Credit card companies and other creditors where you owe money actually do have the right to say
NO to your bankruptcy claim. There are certain circumstances when they will very likely do just
that. For example if you have just spent money on a vacation, purchased something expensive or
used a credit card when out of work, or spent money subsequent to consulting with an attorney,
you will appear distrustful in creditors eyes and will most likely be denied. It is always wise
to seek advice from an attorney or debt counselor prior to taking the plunge and declaring
bankruptcy.

Tags: consolidation, get out of debt, loans, finance, debt consolidation

Tags: Bankruptcy, get out of debt, debt, money, finance, avoid bankruptcy, personal bankruptcy

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What’s the real reason behind bankruptcy? Are easy credit cards to blame? Good enough, credit after bankruptcy can be rebuilt over again once a debtor receives his discharge. Yet, it could still take several years before one can get back decent interest-rates on a credit card, mortgage, or car loan, and debtor cannot spoil credit after bankruptcy - not this time. It could take another 8 long-years before a person can file for another personal bankruptcy.

There’s a good reason why the current bankruptcy law requires filers to undergo a financial-management or credit-counseling course. This rule not only places emphasis on debtors avoiding bankruptcy, but also helps debtors learn how to manage their credit and debt in the future. The bankruptcy record could stay in a person’s credit statements until 10years; and if the ex-bankrupt ever wishes to buy a $150,000-house or get a $75,000-job then the bankruptcy note could hang about for the record, and with the up-to-date record-keeping technologies used by credit-agencies, the bankruptcy record could settle - forever. So what else could be done about credit after bankruptcy?

It’s still possible to get credit again. (If someone’s that good in filing bankruptcy then he must also be good with credit.) Banks and mortgage or credit institutions have become better at cooperating with people who have gone through a personal bankruptcy. They now hand ‘secured’ credit cards that the debtor (with deposit and guarantee) can use to begin his process of credit restoration. Within as-little-as 2 years banks can start giving regular credit again. It can’t be tarnished though. This time it’s a ‘secured credit’ - difficult for a next bankruptcy. The debtor must now ensure that his credit card billing-statements include information on how long it takes to pay off the credit card balance at a certain interest-rate if making only minimum payments. A credit card is still one of the tools that can be used in the creation of a financial future.

Any transfer of financial capital is quite dependent on credit, and this in turn is dependent on the reputation or creditworthiness of the holder who takes responsibility for the funds. Credit after bankruptcy is especially helpful (like loans) in building a positive financial history anew. Credit cards can enhance the debtor’s ability to receive a private loan, buy a car, rent an apartment, get a job, and eventually try to buy a house. It also holds the advantages of securing emergencies and cash backs. Above all, it gives the holder an enhanced personal responsibility and independence.

Yes, credit can grant loans, yet it can also give debts. The time to worry about debts is now! Re-building credit after bankruptcy is a must. Re-build, cut, save, stick with. You don’t want to end up in the same situation and have to file bankruptcy after rebuilding your credit.

Tags: debt, debt settlement, loans, bad credit, personal finance

Tags: Bankruptcy, get out of debt, debt, money, finance, avoid bankruptcy, personal bankruptcy

Considering bankruptcy ought to be a last option in attempting to resolve any debt problems. Realizing the conditions for bankruptcy, what kinds of debts bankruptcy won’t be able to discharge, as well as the long term effects it can have on credit records, may help people to decide right when considering bankruptcy.

Practically, a person knows that it’s not right to file for bankruptcy when he is not bankrupt, that is - he has the means to pay for his financial obligations. The new assumption is that if a debtor can make payments, then he must pay his debts. If he can’t possibly pay all his debts, then that’s the time for considering bankruptcy. It shouldn’t be a problem turning to a Chapter13 Bankruptcy for assistance, and protection, if a person has a regular income that only needs reorganization, so he can repay all or only a part of his debts. Also under the Chapter13 Bankruptcy are the advantages of stopping a mortgage foreclosure wherein the lender demands immediate payment of a huge sum (even the entire loan amount) due to missed regular payments, as well as freeing you of lesser debts to have more disposable income to keep up with your mortgage, allowing you to keep your (non-exempt) properties from being sold to discharge your debts, and also ‘cramming down’ some secured debts (not purchased less than one year) that demand higher debts than the original price of the commodity you owe.

Yet, there still are significant concerns in considering bankruptcy:

Bankruptcy may be an efficient instrument for debtors, yet it cannot eliminate all vital debts like child support, alimony, most tax debts, student loans, and creditor-secured debts. Considering bankruptcy then should take into thought the value of these debts instead of viewing bankruptcy only in terms of using it as an exploitable financial remedy.

Nevertheless, bankruptcy is a meant for removing or reducing unsecured debts like credit card debt (not all) and other unsecured debts of minor value. Also, bankruptcy is just the thing intended for putting off serious creditor harassment and legally putting payments on hold due to temporary crises or unforeseen circumstances.

Again, bankruptcy cannot help in escaping important (but undermined) debts such as child support and alimony obligations, neglected tax debts, reconcilable student loan debt, or lien-secured (property-replaceable) debts. Other debts that cannot be possibly discharged are debts not listed in the bankruptcy papers, debts for property damage, personal injury or death caused by inappropriate behavior (e.g. drunk-driving), fines and penalties imposed for law-violation (traffic-tickets and criminal reimbursement), recent income-tax debts, luxury goods, and debts incurred through fraud, such as lying on a credit application or passing-off borrowed property to use as collateral for a loan.

What’s the real reason behind bankruptcy?

Are easy credit cards to blame?

You can get credit after bankruptcy and rebuild over again once a debtor receives his discharge. Yet, it could still take several years before one can get back decent interest-rates on a credit card, mortgage, or car loan, and debtor cannot spoil credit after bankruptcy - not this time. It could take another 8 long-years before a person can file for another personal bankruptcy.

Remeber it’s probably the easy credit cards that caused the problems in the first place and or ones lack of education in regards to financial concerns. You do not want to repeat your mistakes when re-building your credit.

Tags: money, get out of debt, personal finance, avoid bankruptcy, bankruptcy

Tags: Bankruptcy, get out of debt, debt, money, finance, avoid bankruptcy, personal bankruptcy

Profits of commercial or business enterprises, whether a partnership or corporation, may at some point, go under. In this case, a petition for bankruptcy may be filed voluntarily by the indebted enterprise, or it may be involuntarily petitioned and taken to court by the creditors. Hence, the Chapter 11 Bankruptcy is mostly used to answer the debt liabilities of the concerned businessmen.

In the Chapter 11 Bankruptcy, also called, and officially Code-entitled Reorganization, the bankrupt commercial enterprise may still continue to operate his business in a desire that this may solve the indebtedness at the same time. Yet, this may be legally allowed only after the enterprise’s creditors and the court have approved to the business’ comprehensible plan to reorganize and repay the debts.

Under the Chapter 11 Bankruptcy, the court-approved plan of reorganization may only be granted after the indebted business has presented his business reorganization plan within 120 days of filing the bankruptcy case. Included in this is the indebted’s written disclosure statement, a sufficient document containing information concerning the enterprise’s assets, liabilities, and business affairs, provided for his creditors so they may be able to evaluate the feasibility of the reorganization plan. The final court-confirmed draft of the reorganization may include reduction of the debts by repaying only a portion of its obligations and also while completely discharging other debts altogether.

Under the Chapter 11 Bankruptcy, the indebted enterprise may also eliminate his other problematic contracts and leases, as well as recover his assets, and also rescale their business operations in order to return to its normal productivity. Upon the accomplishment of this bankruptcy petition for relief, the indebted business enterprise automatically assumes the identity of ‘debtor in possession’ referring to him as a debtor who keeps possession and control of all his commercial assets independently without the backing of an appointed case trustee while still undergoing the reorganization payment plan not exceeding 3-5 years.

In most cases, the business and all its property will not be taken control over by a US court trustee unless the judge decides its necessary. The indebted enterprise will remain a ‘debtor in possession’ until his payment plan of reorganization is finally court-confirmed, and, it is only after the indebted’s bankruptcy case is dismissed that it is procedurally converted to a Chapter 7 bankruptcy, or remains a Chapter 11 bankruptcy case with an appointed trustee.

Large businesses often use this type of business bankruptcy, wherein the debtor is allowed to keep his assets and continue the operation of the business as supervised by the court. Chapter 11 offers a lot of flexibility to a business who is considering business bankruptcy but its complexity makes it an expensive option.

However, in Reorganization, the establishment does not only survive, but in essence also becomes revitalized - restructured - reorganized.

Tags: avoid bankruptcy, money, loans, personal finance, debt settlement

Tags: Bankruptcy, get out of debt, debt, money, finance, avoid bankruptcy, personal bankruptcy

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The easiest way to eliminate debt completely is to file for bankruptcy. Instead of finding the ways and means to pay off your debts in full, you can just utilize this legal process to be absolved of them right? HOWEVER, as long as you have the funds, you will still be required to pay all your creditors based on a schedule determined by the bankruptcy court. Bankruptcy records pertain to all the documentation that comes with filing for bankruptcy.

There are essentially three methods of looking up bankruptcy records. First, you can simply go to the bankruptcy court and request for the bankruptcy documents of the company or individual concerned. Another method is by getting in touch with a national information retrieval company. You will need to pay them a small fee to get the bankruptcy documents for you.

The third method is by looking for these records in a number of online databases. You will have to subscribe to these databases to get the bankruptcy records that you want to access. If the records that you obtain through any of these three methods remain insufficient, you can always ask for support documents from the county recorder’s office.

Why You Should Access Bankruptcy Records

One of the more common reasons why you would want to access bankruptcy documents is to determine a person’s or company’s track record, especially if you are planning to engage in business with them. If you are signing a contract with a company or individual whose background is unfamiliar to you, checking their financial background is always advisable.

Another reason why accessing bankruptcy documents is required is when you are thinking of filing a lawsuit against someone. The bankruptcy court will issue a stay on the bankrupt party, which prevents anyone from filing a lawsuit against them. If you go ahead with the case against a bankrupt party, it will not only be a waste of your time and money but receiving any kind of judgment will not be possible if bankruptcy records already exist.

If you are a creditor dealing with a bankrupt party, then you will not be allowed to get in touch with them to ask for payment nor can you impose that wages of employees be paid while there is a stay. Keep in mind, however, that bankruptcy records differ from one state to another and you cannot make any generalizations based solely on one state’s laws.

Accessing bankruptcy documents has allowed more resources and data to be included. Aside from the actual bankruptcy records, you will also be able to go through the required forms and materials if you are contemplating filing for bankruptcy yourself. There are also opinions and analyses from different bankruptcy documents and directories of all the courts and clerks in your district.

The wealth of information related to bankruptcy records will prove to be an advantage for anyone who wants to consider all the pros and cons of this legal process. Although the stigma once associated with bankruptcy has dwindled down in recent years, it should still be accompanied by a careful process of deliberation before acting on it.

Tags: get out of debt, financial, consolidate debt, debt consolidation, consolidation

Tags: Bankruptcy, get out of debt, debt, money, finance, avoid bankruptcy, personal bankruptcy

Business bankruptcy is a situation wherein a business organization has more liabilities than assets and is no longer capable of meeting its financial obligations. Any type of business can file a business bankruptcy case.

It’s best to try to realizing the conditions for bankruptcy, what kinds of debts bankruptcy won’t be able to discharge, as well as the long term effects it can have on credit records, may help people to decide what’s best when considering bankruptcy.

Business bankruptcy can provide relief to the business owner who is overwhelmed with credit problems and cannot find any other way out of debt. However, business owners must also face the fact of losing one’s business and damaging one’s credit standing and endure embarrassment. Although, in a businesses setup there is not much stigma attached to bankruptcy as it is in fact used by many businesses to restructure their companies.

Choosing what type of business bankruptcy to file is also not a very simple task. Business bankruptcy has different types, each with its own set of rules. The type of business bankruptcy that you can file depends on the type of your business.

Corporations and partnerships can file Chapter 7 bankruptcy or Chapter 11 bankruptcy. In proprietorships, Chapter 7, Chapter 11 or Chapter 13 bankruptcy may be filed. The basic difference here is in proprietorships, the owner files the business bankruptcy case. While in corporations or partnerships, which are legal entities separate from the stakeholders, the corporation is the one declaring bankruptcy and the case does not directly affect the stakeholders.

Here are the types of bankruptcy proceedings that can be used by businesses and business owners:

Chapter 7 - In this case, the debtor’s non-exempt assets, if there are any, are liquidated to pay off as much of the debt as possible. At the end of the case, the debtor will receive a discharge of its debt by court’s order. Businesses or individuals may file Chapter 7 bankruptcy.

Chapter 11 - Large businesses often use this type of business bankruptcy, wherein the debtor is allowed to keep his assets and continue the operation of the business as supervised by the court. Chapter 11 offers a lot of flexibility to a business who is considering business bankruptcy but its complexity makes it an expensive option.

Chapter 13 - This option is available only to individuals with regular income. There are specific requirements as to how much debt a person or business has in order to be eligible. A payment plan is arranged over three to five years where the debtor is expected to make monthly payments to a trustee. The amount of the payment depends on the income of the debtor. Debts that are not paid at the end of the payment plan are wiped out.

Filing a business bankruptcy is a serious decision and one that should be considered only when all other options have been tested. It would be wise to seek advice from a finance and legal professional before making any decisions.

Tags: personal finance, debt problems, debt, consolidation, financial

Tags: Bankruptcy, get out of debt, debt, money, finance, avoid bankruptcy, personal bankruptcy

Thailand was my first tourist destination outside Europe and North America. Based on the sage advice of my Thailand-experienced friends, I was sure that this paradise vacation would be carried out on ridiculous costs. However, back home, I have found out too late, that during my little Thailand adventure I have spent almost the same amount of money as one of my regular surges to Europe. If only I knew that carefully planning your trip to Thailand can manifest itself in huge savings. The following list includes some solid advice that can help those novice Thailand visitors to save significant amounts of cash and still enjoy their vacation:

1. Season choice. Traveling in Thailand Islands during the low season can save you up to 25% of the accommodation costs (up to 25$ per bungalow per night if you choose high standard - not luxury - accommodation). Similar to many other world locations that are based operate seasonally; there is a significant price fluctuation across seasons. Not less important is that fact that the weather in Thailand is quite pleasant even during the low season. The temperatures’ difference between the “hot season” and the “peak season” is miniscule, and during the “wet season” one can experience only a mild occasional rain. Therefore, in Thailand one can lower accommodation costs by avoiding the peak season without paying the price of suffering from unbearable cold or coping with endless monsoon.

2. Transportation. Getting from Bangkok to your final destination in one of the Southern Islands by train or bus instead of by plane can save you up to 80$ each way. You can save a bundle if you arrive to Bangkok International Airport in the evening. In this case you save, besides the gap between relatively expensive airfare and train or bus ticket, the first night’s accommodation cost as well (40$ - 100$ per bungalow per night in high standard - not luxury - accommodation).

3. Food. In Western style countries, the more you pay for your dinner the better it is, so everyone can make a personal decision about getting an appropriate cost - benefit balance. In Thailand, and especially in the Southern Islands it is much simpler: in most cases, the cheaper the better. Expensive restaurants in Thailand Islands usually specialize on Western food that is neither authentic nor of superior taste; a standard dinner will cost you 10$ - 30$ in a restaurant of this kind. Alternatively, the dinner in a cheap restaurant with plastic chairs will cost you 3$ - 8$ and it is usually both tasty and authentic. My most disappointing Thai dinner was served in a fancy restaurant in Bangkok and had cost 120$ for a couple, whereas my best dinner was served in a cheap family restaurant in Koh Phangan. The owner - young mom named Mam - prepared the meal for us exactly as we wished it would be and charged us with measly 5-6$ per person.

4. Air Conditioning. The presence of air conditioning in your room can make a huge difference in accommodation rates. For example, the same room rates in the same resort can vary from 15$-30$ for a bungalow with a fan to 40$ - 100$ for an air-conditioned bungalow. Although choosing an air-conditioned room during the hot season (such as March - April) is crucial, if you visit Southern Thailand during the rainy season - a bungalow with a fan can both satisfy your needs and cut your expenses in more than a half.

5. Location choice. Similar to the principle held in most places in the world, the accommodation rates in Thailand Islands depend on your location choice. The bungalow in the central beach, close to the airport or seaport full of thriving nightlife will probably be twice as expensive as the same bungalow in a remote quiet beach. However, accessibility is an issue in the Thailand Islands, and the taxi fares and taxi boat fares operate under the same principal as the accommodation rates. So there is a rule you may adopt: if you are looking for social activities and busy nightlife- stay close to the airport or seaport; otherwise make a little effort and move after your arrival to a remote beach. You will save up to 60% on the accommodation rates this way.

6. Communication. It will probably not come as a complete shock, but the use of cellular phone from outside of Thailand could be extremely expensive. To save on communication costs you can either buy a local cellular phone with prepaid SIM card or use the Telephone & Internet centers services. Mind you that the cost of these services may vary. As usual, if you’re calling overseas from your resort’s office - it will be more expensive than using a call center in the town. The cheapest solution is probably giving your phone number to your friends or relatives overseas since every call center has a phone number that can be used for calling back.

7. Price negotiation. In tourist locations in Thailand negotiation is a necessity or a way of life. Likewise, in the less touristy islands and areas price bargaining is accepted as well. Just try it - in Thailand price negotiation isn’t considered an embarrassing behavior, so you have nothing to lose.

8. Psychology. Although, in Thailand everything is perceived to be cheaper than in your home country, don’t be fooled by the seemingly low prices and control your expenses. Buying an enormous amount of inexpensive things can really add up to a surprisingly large sum of money.

During my last visit to Thailand, I followed these guidelines with persistence and I was happy to disclose, that budget travel in Thailand can be more than just an economical issue, it can also be enjoyable. Interestingly enough, in Thailand, the less you spend - the closer you get to the local authentic experience.

Tags: consolidate debt, financial, debt, avoid bankruptcy, debt settlement

Tags: Bankruptcy, get out of debt, debt, money, finance, avoid bankruptcy, personal bankruptcy

Are our academic institutions at risk of collapse in the future due to distance learning, the Internet age and the fast flow of information? It seems by the time someone in a fast moving technological field gets a degree the industry has already hyper-spaced them and is onto the next new thing in that area of science.

This does not play well for a University Student with a new degree who does not immediately jump into a new fast moving company. It also takes away from the normalcy of 4-year colleges where you go away and learn something. For those in industry and research the best bet is to learn the basics in an online course and immediately plan to go to all seminars in the industry around the nation, while reading all the white papers online and watching all the webinars possible.

Yet if everyone did this, then what would happen to our Universities and top colleges? Well some would still exist as a catalyst to help train people on behalf of industry to fit specific niches like trade schools or specialized curriculums and others would continue to exist out of tradition.

In the future it may not make much sense to go to a University to learn something or a specific area of thought, but rather for the experience of going to away to college and we must consider this subtle transition in the future and not be so shocked as it occurs you see? Consider this in 2006.

Tags: bad credit, personal finance, financial, debt, finance

Tags: Bankruptcy, get out of debt, debt, money, finance, avoid bankruptcy, personal bankruptcy

In a move thought by some as an attempt to stave off bankruptcy as well as to generate cash, Delta Airlines made the move on August 16, 2005, to sell one of its regional carriers, Atlantic Southeast Airlines, to Skywest, Inc. The sale comes in the face of rising fuel prices and a high debt burden that many U.S. airlines in addition to Delta are carrying.

As much as the $425 million selling price of the regional carrier will infuse Delta with cash, the carrier still has nearly $20 billion dollars in outstanding debt and leasing costs to manage. Delta is expected to use some of the funds to reduce their debt and set aside the remaining monies as reserves. Delta must have a reserve in place totaling $750 million dollars as it negotiates with a credit card processor this fall to extend or renew its contract with the processor. Without the reserves and the extension, Delta would be certain to file for bankruptcy.

While Atlantic Southeast Airlines is no longer part of the Delta portfolio, two other divisions remain and may also be sold.

Delta AirElite, the business jet sector of the company, is the most profitable part of the company. A sale of this company would probably signal to the industry that Delta cannot recover from its current financial plight. Cash rich Gulfstream Aerospace Company or TAG Aviation may serve as viable suitors for this company.

Comair, another regional carrier owned by Delta, could also be put on the auction block. Selling this regional carrier would leave Delta without a regional service provider, however.

Ultimately, these are bleak times for the venerable carrier. Odds strongly suggest that the company will seek bankruptcy protection this fall, particularly before changes in the U.S. bankruptcy law take place in October. High fuel prices and poor management decisions have contributed to Delta’s current state of affairs; unfortunately employees and passengers will likely suffer the most should Delta go bankrupt.

Tags: consolidate debt, debt consolidation, financial, debt settlement, debt

Tags: Bankruptcy, get out of debt, debt, money, finance, avoid bankruptcy, personal bankruptcy