Reasons Behind Filing For Bankruptcy

Why do people end up filing for bankruptcy?  This is a question that is often posed to bankruptcy attorneys and the answer people expect to get back is that people just aren’t responsible with their credit cards.  This however, more often than not, is not the reason people end up faced with the option of bankruptcy.  In fact most people that are facing bankruptcy dread being there.  It isn’t a decision that has been made freely.  In fact, most people are almost forced into it after spending months on end of harassing calls from creditors and such.

One of the most commonly seen explanations for people looking into bankruptcy is because of illness or disability.  When a family member becomes ill the entire family has to adjust.  This may mean that the family is left without the same budget that they have become accustomed to.  An illness can fall on a parent or child contributing to a change in income.

Not only does the expense of medical care come into play but the loss of income when time off is needed to provide care.  This leaves many families falling behind on bills as payments that were being made were based off of the excepted income to stay the same.   This is a common development that bankruptcy attorneys see in family’s seeking debt relief under federal bankruptcy.

Another common reason that people find themselves filing for debt replied is unemployment.  When individuals are out of work and unable to find a source of income it becomes pretty difficult to pay your bills.  Often what we see is that people will go a period of time without a job and begin to fall short on paying their bills.  As payments start to add up, even after a person does find employment it is difficult to dig them out of the hole they have found themselves in.  For instance, a thirty thousand dollar debt at twenty percent interest is difficult at best to pay off when making only forty five thousand a year.  The debt starts to become overwhelming and leads to desperation.

About thirty percent of people that are going through bankruptcy have also divorce within the past five years.  The ramifications of a divorce aren’t often felt till a few years after the dust has settled on the process as a whole.  This is especially true of women who find they are raising children in a single parent home collecting less than needed to live and raise children.  They begin to fall back on the old standby of payday loans, credit cards and personal loans.  Eventually this catches up to them and they find that there is nowhere else to turn.

There are a number of myths that surround individuals finding they are at need to look into bankruptcy debt relief.  Don’t fall victim when it comes to categorizing things in a simplistic manner.  Most people going through bankruptcy are doing so because they are all out of options and they have nowhere else to turn.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Misconceptions Surrounding Bankruptcy

There are several misconceptions surrounding bankruptcy and the individuals who seek the relief it can offer.  The biggest one of them is assuming that all individuals who are seeking financial reprieve through bankruptcy have done so because they couldn’t fight the urge of credit card spending.  This however, is not the case for many of the people that find that they are in need of filing bankruptcy.  Here’s a look at some of the other folklore surrounding bankruptcy.

Individuals that file for bankruptcy are financially irresponsible: Although there are some cases in which individuals need to file for bankruptcy because of their own financial irresponsibility this is not always the case.  It is more likely that an individual finds themselves in this situation because of one of the following events: job loss, divorce or illness.

Bankruptcy clears away all past debts: If you are looking for a be all to end all for debts, bankruptcy is not where you will get it.  Not all debt can be cleared away when filing for bankruptcy.  Several, including alimony, child support, restitution from a crime, tax debt and student loan expenses are just a few of the debts that cannot be expunged.  Although bankruptcy does give individuals a fresh financial start it does not completely clear you from all of your outstanding debt.

It’s a good idea to spend with reckless abandonment before bankruptcy:  People should not assume that just because they are about to file for relief that they can max out their current credit.  In the eyes of the court, this type of behavior is seen as fraudulent.  Many times the debt that is racked up in the ninety days before your discharge will need to be paid back.  You will not get away with spending recklessly and expecting it to be discharged.

Bankruptcy permanently ruins your credit: Although it is more difficult to obtain credit in the months after you have filed for bankruptcy it is not impossible.  Most bankruptcy attorneys and financial advisors recommend obtaining a secured credit card when you first are relieved of your debt through bankruptcy.  A secured credit card can be obtained through a bank or other financial institution.  This type of credit card requires a bank deposit to be drawn against.

If you are considering bankruptcy to get relief from debt that is piling up and creditors hounding there are still some things to think about.  First is the expense of filing for bankruptcy.  Hiring an attorney to represent you in filing for bankruptcy is the best option.  This can cost between nine hundred and fifteen hundred dollars depending on your attorney and the area in which you reside.

It is also crucial to consider the difference between chapter 13 bankruptcy and chapter 7.  In chapter 13 bankruptcy the court will assist you in reorganizing your debt and you will be in charge of paying expenses, like your house payment and such while living very modestly.  Chapter 7 discharges certain debts but in doing so you could have to sell secured assets to assist in paying some of your debt back.  Talk with a local bankruptcy attorney to see what option is the best for your situation.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Is It Finally Time To Talk With A Bankruptcy Attorney

How do you know if it is finally the time for you to throw in the financial towel and start a serious discussion about filing for bankruptcy?  The term itself is one that invokes an array of emotions: failure, sadness, defeat, relief, disappointment and more.  Bankruptcy doesn’t just involve individuals it is also something that can occur to corporate companies.  In a world where living in debt seems to be the norm how do you know when it is time to finally call it quits and meet with a bankruptcy attorney to seek relief.

When assessing if you are in the financial disaster zone there are a few questions to ask yourself.

1)      Is it only financially possible for you to make the minimum payment on your credit cards?

2)      Do you have bill collectors calling you on a regular or semi-regular basis?

3)      When you think about sitting down and working out a plan for your financial future are you scared?  Do you feel like your life is spinning out of control?

4)      Are you using your credit cards for necessities such as gas and groceries?

5)      Have you considered debt consolidation?

6)      Does it make you nervous to total the amount you actually owe?

If you have answered yes to more than one of the questions about it is possible that you need to give our financial situation a serious look.  Bankruptcy is a very viable solution when you actually owe more than you can afford on a regular basis.

The first step is to make a list of your liquid assets.  This should include items such as real estate, stocks, bonds, college savings accounts, non-bank assets, real estate and more.  A rough estimate of these figures should be good enough for these purposes.

The next step is to create a detailed list of bills and credit card statements.  When the value of your assets is less than the amount of debt that you owe one way out of this situation is speaking with a bankruptcy attorney and declaring bankruptcy.  This is not an issue that is ever easy.  Bankruptcy is not a simple, sure all for debt that is spinning out of control.

Bankruptcy can happen in two different manners.  The most common routes for individuals and corporations is to voluntarily consult with an attorney who will assist you through the proper channels in filing bankruptcy.  A second manner in which bankruptcy is filed is that creditors ask the court to order individuals into bankruptcy.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Is It Finally Time To Talk With A Bankruptcy Attorney

How do you know if it is finally the time for you to throw in the financial towel and start a serious discussion about filing for bankruptcy?  The term itself is one that invokes an array of emotions: failure, sadness, defeat, relief, disappointment and more.  Bankruptcy doesn’t just involve individuals it is also something that can occur to corporate companies.  In a world where living in debt seems to be the norm how do you know when it is time to finally call it quits and meet with a bankruptcy attorney to seek relief.

When assessing if you are in the financial disaster zone there are a few questions to ask yourself.

1)      Is it only financially possible for you to make the minimum payment on your credit cards?

2)      Do you have bill collectors calling you on a regular or semi-regular basis?

3)      When you think about sitting down and working out a plan for your financial future are you scared?  Do you feel like your life is spinning out of control?

4)      Are you using your credit cards for necessities such as gas and groceries?

5)      Have you considered debt consolidation?

6)      Does it make you nervous to total the amount you actually owe?

If you have answered yes to more than one of the questions about it is possible that you need to give our financial situation a serious look.  Bankruptcy is a very viable solution when you actually owe more than you can afford on a regular basis.

The first step is to make a list of your liquid assets.  This should include items such as real estate, stocks, bonds, college savings accounts, non-bank assets, real estate and more.  A rough estimate of these figures should be good enough for these purposes.

The next step is to create a detailed list of bills and credit card statements.  When the value of your assets is less than the amount of debt that you owe one way out of this situation is speaking with a bankruptcy attorney and declaring bankruptcy.  This is not an issue that is ever easy.  Bankruptcy is not a simple, sure all for debt that is spinning out of control.

Bankruptcy can happen in two different manners.  The most common routes for individuals and corporations is to voluntarily consult with an attorney who will assist you through the proper channels in filing bankruptcy.  A second manner in which bankruptcy is filed is that creditors ask the court to order individuals into bankruptcy.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Consult A Bankruptcy Attorney If You Are Thinking About Filing Bankruptcy

There is a certain appeal to bankruptcy.  By the time you have reached the point in which you are considering bankruptcy you have endured countless hours of harassing phone calls from debt collectors and have spent many sleepless nights stressing about making minimum payments.  The idea that you could move forward into a financial future that is wiped completely debt free or with a detailed court ordered repayment plan is tempting.  This is especially true when faced with an overwhelming debt and little means to pay the funds back.

Bankruptcy is of course more complicated than running a few numbers.  There are some long lasting affects that should be taken into consideration before filing for either Chapter 7 or Chapter 13 bankruptcy.  The impact that bankruptcy has on your credit lingers and impacts a variety of aspects within your life.

Not only does bankruptcy wipe most of your debts away it also makes it difficult to establish yourself financially for years to come.  It will be difficult to open new credit accounts, buy or rent a home, find a company for insurance, get a cell phone and even possibly impact your employment.  In fact most bankruptcy attorneys will tell you that bankruptcy should be considered as a final, extreme method to resolving your financial issue, only considered after trying other budgeting, credit counseling and financial efforts to remedy the situation.

In order to begin the bankruptcy process it is recommended that you seek counsel from an experienced, reputable attorney that specializes in bankruptcy cases.  In order to seek relief from bankruptcy you must first take a step towards credit counseling from a government approved organization.  This must have occurred within six months of filing.  A means test will be performed to confirm that your income does not exceed an amount specified by the state.

After this is accomplished, with help from your bankruptcy attorney you will properly fill out the forms applicable to your bankruptcy situation.  An attorney should be present with you throughout all proceedings going forth.

The type of bankruptcy in which you choose to file for will be directly related to your situation including the assets and property you own, including your home, your income and several other factors.  Those debtors with a consistent income are encouraged to look into filing Chapter 13 bankruptcy over Chapter 7.

Chapter 13 allows individuals with a consistent income to keep their homes and cars which may be lost under a Chapter 7 bankruptcy.  With Chapter 13 bankruptcy the bank will create a repayment plan to allow you to hold on to certain property.  You must repay certain debts such as outstanding child support, student loans, taxes and other debts that are specified by the court.

Chapter 7 bankruptcy essentially allows you discharge most all of your debts.  Property of value is collected and then sold off.  A trustee of the court will take the funds raised and split them accordingly to creditors.  Certain debts may not be written off such as child support, spousal support, student loans and such.

If you are considering bankruptcy the first step you should take is to meet with legal representation.  They will offer you advice on how to proceed including those items that can hinder your ability to receive a discharge of your debt through bankruptcy.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Consult A Bankruptcy Attorney If You Are Thinking About Filing Bankruptcy

There is a certain appeal to bankruptcy.  By the time you have reached the point in which you are considering bankruptcy you have endured countless hours of harassing phone calls from debt collectors and have spent many sleepless nights stressing about making minimum payments.  The idea that you could move forward into a financial future that is wiped completely debt free or with a detailed court ordered repayment plan is tempting.  This is especially true when faced with an overwhelming debt and little means to pay the funds back.

Bankruptcy is of course more complicated than running a few numbers.  There are some long lasting affects that should be taken into consideration before filing for either Chapter 7 or Chapter 13 bankruptcy.  The impact that bankruptcy has on your credit lingers and impacts a variety of aspects within your life.

Not only does bankruptcy wipe most of your debts away it also makes it difficult to establish yourself financially for years to come.  It will be difficult to open new credit accounts, buy or rent a home, find a company for insurance, get a cell phone and even possibly impact your employment.  In fact most bankruptcy attorneys will tell you that bankruptcy should be considered as a final, extreme method to resolving your financial issue, only considered after trying other budgeting, credit counseling and financial efforts to remedy the situation.

In order to begin the bankruptcy process it is recommended that you seek counsel from an experienced, reputable attorney that specializes in bankruptcy cases.  In order to seek relief from bankruptcy you must first take a step towards credit counseling from a government approved organization.  This must have occurred within six months of filing.  A means test will be performed to confirm that your income does not exceed an amount specified by the state.

After this is accomplished, with help from your bankruptcy attorney you will properly fill out the forms applicable to your bankruptcy situation.  An attorney should be present with you throughout all proceedings going forth.

The type of bankruptcy in which you choose to file for will be directly related to your situation including the assets and property you own, including your home, your income and several other factors.  Those debtors with a consistent income are encouraged to look into filing Chapter 13 bankruptcy over Chapter 7.

Chapter 13 allows individuals with a consistent income to keep their homes and cars which may be lost under a Chapter 7 bankruptcy.  With Chapter 13 bankruptcy the bank will create a repayment plan to allow you to hold on to certain property.  You must repay certain debts such as outstanding child support, student loans, taxes and other debts that are specified by the court.

Chapter 7 bankruptcy essentially allows you discharge most all of your debts.  Property of value is collected and then sold off.  A trustee of the court will take the funds raised and split them accordingly to creditors.  Certain debts may not be written off such as child support, spousal support, student loans and such.

If you are considering bankruptcy the first step you should take is to meet with legal representation.  They will offer you advice on how to proceed including those items that can hinder your ability to receive a discharge of your debt through bankruptcy.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Mistakes To Avoid When Filing For Bankruptcy

If you are contemplating the need to file for bankruptcy then it is important to avoid these common pitfalls that can affect the success of your bankruptcy.  Some of the financial actions and various behavioral actions can affect your ability in achieving a Chapter 7 or Chapter 13 bankruptcy discharge.

By providing erroneous, partial or deceitful information on either your bankruptcy paperwork or at your 341 Meeting of Creditors you will be charged with perjury.  Misrepresenting the information that will be used in the judgement of your discharge can lead to criminal prosecution.  You also need to make sure that all of your bankruptcy paperwork is filled out correctly.  The bankruptcy attorney that is representing your needs to make sure that the paperwork is complete in full.  If any of the boxes are left empty you will need to make sure that amendments and additional paperwork is done to correct the issue.

Make sure to list all of the creditors and debt that you wish to discharge.  If at some point it is realized that an asset is not included a Chapter 7 trustee make choose to repossess the property.  The case may be dismissed if you forget any of the much needed schedules or forms that are needed.  If you forget a debt then this debt will not be considered in the discharge agreement.  Similarly if you forget to list an asset it may be taken away from you.  The process of completely filling out paperwork for your bankruptcy is needed to guarantee a smooth bankruptcy proceeding.

Next you must make sure that you have filed tax returns for the two years prior to filing for bankruptcy.  Better yet make sure you are up to date in filing all of your federal and state tax returns to ensure proper processing.  You will not be able to move forward with the bankruptcy proceedings unless you file the past tax returns.

You should also never continue to rack up new debt when you are about to file for bankruptcy.  Any debt that is racked up between seventy and ninety days prior to filing for bankruptcy this debt may be denied in the discharge of your bankruptcy.  Any luxury item that is bought on credit within ninety days of filing for bankruptcy in an amount greater than six hundred dollars may also be denied discharge as well.  Creditors may claim that there was an intention to deceive and that there was no intent to repay the debt.

There are several other unique situations your bankruptcy attorney will advise you to stay away from in the months before you begin the process of filing for divorce such as: moving assets around, selectively repaying only certain loans, ignoring impending collection actions or file for bankruptcy just before you are about to get a substantial payout or asset.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Hiring A Bankruptcy Attorney To Represent You

If you are considering bankruptcy the last thing you need is stress over hiring an attorney.  It is best to find a qualified individual to represent you throughout the bankruptcy proceedings.  Don’t thoughtlessly choose a bankruptcy attorney based on criteria such as their fees or the fancy advertisements.   Below you will find the five “musts” in choosing a lawyer to represent you.

Bankruptcy Lawyer Essentials

Many individuals choose an attorney based on their fees.  This can be one element in the decision process but must not be the key factor in deciding on an attorney.  Depending on where you are located bankruptcy attorneys can charge between one thousand and three thousand dollars to process either a Chapter 7, liquidation or Chapter 13, personal reorganization.

Reputable bankruptcy attorneys will never quote a fee over the phone.  The cost of the bankruptcy should include considerations specific to your current situation.  An attorney’s flat fee will include a consultation that reviews and analyzes the client’s current financial situation, preparing the bankruptcy petition, reviewing the petition with the client, meeting with creditors, following up with creditors all the way through the discharge of the bankruptcy.

Theoretically, any lawyer can process your bankruptcy however it is best to hire only an attorney specializing in bankruptcy to handle your proceedings.  An attorney that limits the number of specialties they focus on is a better bet than one that dedicates their practice to ten different areas of law.

Look for a practice where the attorney you initially meet with is the same one that will represent you at the bankruptcy hearing.  Many shady firms exist in which they churn and burn cases without taking into consideration each of the clients specific needs.  These firms are infamous for haphazard legal work, clients who are discontent as well as trustees and judges that don’t necessarily trust their intentions.

Don’t ever choose an attorney that isn’t easy to talk with.  Sharing private financial information is uncomfortable enough let alone if it is uncomfortable to speak with the attorney.  The amount of information shared between the client and attorney significantly decreases if there is uneasiness between them.  Filing for bankruptcy is an emotional process.  Open communication is a must in the client/attorney relationship.

It is not impossible to hire a lawyer that specializes in bankruptcy who is reasonably priced, reputable and easy to talk with.  Filing for bankruptcy is not a process that can happen overnight and neither should be hiring an attorney.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Creating A Life After Bankruptcy Second Installment

In our previous installment on life after bankruptcy we discussed the curveball filing for bankruptcy can throw at you.  In this installment we will continue to review ways in which you can rebuild your financial life after filing for chapter 7 bankruptcy or chapter 13 bankruptcy.

Bankruptcy attorneys recommend that individuals who have filed for bankruptcy begin to re-establish their credit as soon as they possibly can.  One way to accomplish this is by establishing a personal line of credit that is secured through a savings account.  This helps to establish credit without the risk of spending more than you have available to spend.  The one element to remember is that the interest you will pay for the line of credit will far outweigh what you will earn in interest on your savings account.

Hold off on buying a car until you have built there has been time to establish credit again.  It takes about two years to get to the point when you should start searching out loans such as home loans and automobile loans.  Continue re-building credit during this time to ensure you can obtain a loan when you start looking into larger financial purchases.

If a credit card is obtained use it only for emergency situations.  Do not card hop between credit card companies either.  Stick with one or two companies to help improve the long term credit record that is being established.

Be cautious of scams after filing for bankruptcy.  Many scams exist and scam artist prey on individuals who they believe to be susceptible.  Vulnerability is often a symptom experienced after an experience like bankruptcy.   Don’t give into it.  Never believe that anyone that promises to fix your credit.  There is no magic method in establishing credit after your bankruptcy is settled.

Rebuilding credit after bankruptcy takes time.  While you are re-establishing your financial life be wary of any offers that sound too good to be true.  Your bankruptcy attorney will recommend taking time before accepting any offers of extended credit or instant credit fixes.  Research all companies offering anything.  It is more likely than not that a quick online search will offer you a great deal of information on any and all companies that are known to be scam artists.

After researching an offer, if there is still any doubt don’t go further with the deal being presented.  Walk away from offers that aren’t a hundred percent above board.  When re-establishing your credit it is your financial reputation on the line be sure to protect it at all costs.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Creating A Life After Bankruptcy Second Installment

In our previous installment on life after bankruptcy we discussed the curveball filing for bankruptcy can throw at you.  In this installment we will continue to review ways in which you can rebuild your financial life after filing for chapter 7 bankruptcy or chapter 13 bankruptcy.

Bankruptcy attorneys recommend that individuals who have filed for bankruptcy begin to re-establish their credit as soon as they possibly can.  One way to accomplish this is by establishing a personal line of credit that is secured through a savings account.  This helps to establish credit without the risk of spending more than you have available to spend.  The one element to remember is that the interest you will pay for the line of credit will far outweigh what you will earn in interest on your savings account.

Hold off on buying a car until you have built there has been time to establish credit again.  It takes about two years to get to the point when you should start searching out loans such as home loans and automobile loans.  Continue re-building credit during this time to ensure you can obtain a loan when you start looking into larger financial purchases.

If a credit card is obtained use it only for emergency situations.  Do not card hop between credit card companies either.  Stick with one or two companies to help improve the long term credit record that is being established.

Be cautious of scams after filing for bankruptcy.  Many scams exist and scam artist prey on individuals who they believe to be susceptible.  Vulnerability is often a symptom experienced after an experience like bankruptcy.   Don’t give into it.  Never believe that anyone that promises to fix your credit.  There is no magic method in establishing credit after your bankruptcy is settled.

Rebuilding credit after bankruptcy takes time.  While you are re-establishing your financial life be wary of any offers that sound too good to be true.  Your bankruptcy attorney will recommend taking time before accepting any offers of extended credit or instant credit fixes.  Research all companies offering anything.  It is more likely than not that a quick online search will offer you a great deal of information on any and all companies that are known to be scam artists.

After researching an offer, if there is still any doubt don’t go further with the deal being presented.  Walk away from offers that aren’t a hundred percent above board.  When re-establishing your credit it is your financial reputation on the line be sure to protect it at all costs.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.