Category Archives: Phoenix bankruptcy attorney

Planning your Holiday Shopping Wisely

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Even though there are well over 100 shopping days until Christmas, it is never too early to start planning your financial strategy so that you do not go into debt this holiday season. Holiday shopping is one of the largest catalysts for overspending and maxing out credit cards. Here are a few things that you can do this year to keep away the January blues when those statements start coming in.

Join the Club

Theresa

The Christmas club accounts were popular among many banks and credit unions however, many of them do not have those kinds of short-term goal accounts anymore. If they are still available at your bank, go ahead and get started, if not there should be something similar. At the very least, you can do something creative like loading your holiday savings onto a prepaid card.

Curb the Wish List

Many kids are notorious for having huge wish lists of gifts that they would like to see wrapped under the tree. However, if you were to take an inventory, many of those toys either are broken by now or are no longer in use. Depending on the age of the child, ask them to shorten the list to their top three choices. An older child can easily choose one gift that they would like to receive.

Shop Early

Shop smart and look for deals during different parts of the year. Shopping is all about supply and demand. There are a few things that you may want to wait until later to purchase such as some electronic items however take advantage of off-season deals. You will end up spending a lot more money when trying to shop at the last minute. Last minute shopping also leads to more impulse buys.

If your spending habits or circumstances beyond your control have led you to an overwhelming amount of debt, an experienced Arizona bankruptcy attorney can assist you with your case.

Do I Need a Chapter 11 – Small Business Bankruptcy?

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A Chapter 11 bankruptcy filing is used to reorganize a business that you may want to continue to operate after the U.S bankruptcy court is finished. Chapter 11 may or may not be the best resolution for your business.

If you are running a small business and considering chapter 11 Business Bankruptcy, your business is likely organized as either an LLC (Limited Liability Company) or an S-corporation. There is a reason for these designations. It means there is not supposed to be any personal liability to you, above what you have already invested in the business. If somebody sues the business, and you have followed organizational and corporate rules, your personal assets should not be at risk. Think of it this way. If you own stock in IBM and somebody sues IBM, they don’t get to take your personal assets, just the value of your stock.

The same laws that protect IBM, also protect you from liabilities of your LLC or corporation. As long as you have not signed a personal guarantee and have followed the corporate or organizational rules, a creditor should not be able to sue you personally. Over the years the courts have established some exceptions to this rule making it easier to pierce the corporate veil. If you think you might have personal liability from your s-corp. or LLC, you should schedule a free consultation with an experienced bankruptcy attorney here.

If you are confident you do not have personal liability, it is important for you to delineate personal form corporate debt. If the debt belongs exclusively to your LLC or S-Corp. and there are no corporate assets to satisfy it, the creditor has no right to execute on your personal assets. The creditor is simply out. This is why we pay interest to borrow money. Sometimes the debt cannot be repaid and the lender is left holding the bag.

If a creditor is unable to collect against an LLC or an S-Corp, there may not be a need for a formal chapter 11 declaration that the LLC or S-Corp is not paying the debt. It may be as easy as not paying. However, there are many things that will need to be done to make sure you are not exposed to personal liability. It may also be the case that you need a personal bankruptcy to disclose the corporate debt and protect your personal assets. It is better to be safe than sorry. GET FREE HELP TODAY, by scheduling a free consultation with a great bankruptcy lawyer.

Bankruptcy can Raise Your Credit Score

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We have all heard the horror stories about what bankruptcy can do to your credit rating. Unfortunately, your credit rating is probably suffering from things much more negative than a bankruptcy. If done right, bankruptcy could actually raise your credit score.

Whether your credit rating will qualify for credit with a specific company or a certain utility is very difficult to determine. It will be subjective and completely determined by the underwriting guidelines of the creditor. This is why a straight answer to the question is so hard to find. It may not exist.

From my personal experiences, I know that secured credit, to buy things like cars and houses, is available but it will cost more and likely come from an unconventional source like Lending Tree and not from a bank. Unsecured credit, like credit cards, is available from places like Orchard Bank, but expensive and low limits. It will take some time to develop good terms with credit card companies.

No matter what kind of credit you apply for, someone will have to read your credit report and make a determination if you qualify. Right now, your credit report probably shows some negative references . Each one of these negative marks will count against you. There is also a section of the report dealing with public documents and filings. This is where judgments and bankruptcy show up. These will really count against you because there is less of a chance they are a mistake. However, bankruptcy has a redeeming quality.

When bankruptcy is reported on your credit report, it will count against you. However, you are then able to re-classify all of the other negative reports to “Discharged in Bankruptcy” instead of “Delinquent” or other negative terms. This might take a few letters to the credit bureau, but it will be worth it. You will also be able to classify other judgments the same way. Now you only have one thing counting against you instead of several.

Another way bankruptcy can help is that it will dramatically change the amount of outstanding debt as well as available debt. Too much of either of these is normally a bad thing.

Really good bankruptcy attorneys will offer packages to rebuild your credit. They can explain it and help rebuilt it. Schedule a FREE CONSULTATION with a really good bankruptcy attorney now.

Chapter 13 Bankruptcy

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If someone has gone into personal debt, he or she will most likely file under Chapter 7 bankruptcy, however, Chapter 13 is an option as well. Under Chapter 13, the debtor is allowed a three to five year payment plan in which time he or she can pay back all debts.

Chapter 13 bankruptcy is also called a wage earner’s plan because it is specifically for those who have a high enough monthly income to pay back the debts. If the debtor’s monthly income is less than that of the state’s median, the plan will be three years, if it is higher than the state median, the plan will be five years.

Lucy debtAlong with creating a payment plan for the individual, the courts also forbid any debt collectors from further pursuing the debts owed to them by the debtor during the length of time that the payment plan continues.

One of the most important advantages of filing under Chapter 13 is that it will save your home from foreclosure, adding mortgage payments to the payment plan.

Chapter 13 also “acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then distributes them to creditors,” according to the U.S. Federal Courts web page. This form of bankruptcy protects the debtors from having to deal directly with the creditors.

Debtors also have the opportunity under Chapter 13 to reschedule secured debts and extend those payment plans over the length of time for the bankruptcy payment plan set by the courts. Lengthening the payment plan may lower the individual payments as well as simply give the debtor more time to pay.

If you are considering filing for bankruptcy, but do not know which Chapter to file under or where to begin at all, contact Arizona bankruptcy attorneys for assistance. These experienced bankruptcy attorneys will assist you in making the best decisions about your money and payments to keep your home and other in important assets Arizona today.

Alternatives to Chapter 7 Bankruptcy

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LucyWhen someone must file for personal bankruptcy, they often choose to file Chapter 7 Bankruptcy, under which a person’s debts are forgiven. It is a long process, during which certain assets are allowed to be kept and others must be liquidated to pay off the debts. A Chapter 7 Bankruptcy stays on a person’s record for 10 years, potentially ruining credit and making it more difficult to get loans.

When someone compiles a large debt, it is important to know that there are many options. If you are considering filing for bankruptcy and you are engaged in a business, you may petition under Chapter 11 bankruptcy. If you want to file for personal bankruptcy and you are confident that you can pay off your debts within the five year time limit, you may file for Chapter 13 bankruptcy, under which a payment plan will be created for you to pay everything off.

Chapter 13 allows debtors to keep their homes from foreclosure as well. This is also a good option because many courts will dismiss a Chapter 7 petition if the debts that have been gathered are mostly consumer debts and not business debts. Chapter 13 helps you to pay off your debts, while putting any additional payments on hold, preventing your debt from increasing while you are in bankruptcy.

When filing for Chapter 7 bankruptcy, one of the first numbers that is looked at is the current monthly income of the debtor. If that number is higher than the state’s median monthly income, another test must be used. The “means test,” which is required by the Bankruptcy Code, will determine whether or not filing for bankruptcy is truly necessary. The only way to continue on with the bankruptcy filing at this point is if the debtor can prove to the courts that he or she has special circumstances that cause additional expenses.

If a debtor does not pass the means test, the bankruptcy will be dismissed or converted to Chapter 13, under which the debtor must pay off all of the debts with a payment plan.

If you are in debt and are considering filing for bankruptcy, be sure to consider all of your options and contact a bankruptcy attorney for assistance. Arizona bankruptcy attorneys can help you decide what to do today.

Bankruptcy Exemptions

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The Bankruptcy exemptions are unique to each state. They are normally the same exemptions used to apply to creditor collection lawsuits. The exemptions, when used in a bankruptcy filing, can be more complex than they appear. Some of the exemptions can be used twice, once for each spouse. Some of the exemptions can only be used under certain circumstances. Different trustees treat exemptions differently. Nobody will be coming to your house to count your forks to assure you have been specific and accurate with declaring you bankruptcy exemptions, but unless the numbers are within a certain range, the trustee will likely be alerted to some fraud.

Running afoul of the exemption declaration is easy, but it is also easy to avoid. Like most things, experience is invaluable. There is no reason to step in front of such harm and scrutiny as making a mistake on your bankruptcy exemptions. An experienced bankruptcy attorney will be able to guide you through the filing and give you peace of mind that you will not lose property that could have been declared exempt, or worse yet get fined or prosecuted if the trustee thinks you did it on purpose.

An experienced bankruptcy lawyer is your best friend in unfamiliar times. You can schedule a free appointment to talk to the bankruptcy attorney over the phone or in person. There are payment plans available and the consultation is free. A great bankruptcy lawyer can help you through this. GET FREE HELP NOW.

How to avoid filing Bankruptcy Again

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TheresaFiling bankruptcy can give you the fresh start that you are looking for. You are finally free of debt, you are not in collections, and you don’t have bill collectors ringing your phone off the hook. It feels great to feel free but the most important thing is to be financially responsible. Recent reports showed that of all of the bankruptcies filed in 2011, 28 percent of them were repeat filings. Here are a few steps that you can follow to ensure that you are not a part of this statistic.

Be Careful with Credit

Part of having good credit is having positive trade lines on your account. The easiest way to establish these positive reports is my establishing credit. The most common way to establish credit and have it reported is through a credit card. Many credit card companies will start sending offers as soon as a person has their bankruptcy discharged. Treat these new credit cards with respect. Use them only when needed and pay them off in full each month.

Seek Preventative Medical Care

The highest debt for many people is for medical care. A way to keep medical debt down is to go see your regular doctor as soon as you begin feeling ill. Trips to the emergency room can be much more costly and can lead to a hospitalization. The office visit charge is usually cheaper and if you are strapped for cash, many offices allow you to make interest free payments.

Live within your Means

It is easy for people to be carried away into living beyond their means. Create a budget and stick to it. Diligent budgeting can also make it feasible to purchase a luxury item for yourself occasionally. If you have questions regarding the discharge of your bankruptcy or starting all over, your Arizona bankruptcy attorney can answer those questions for you.

 

Financial advice for college students

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With the expenses of a college education climbing higher and higher, it is important that college students know how to manage their finances. A recent article has listed a few helpful habits for students to manage their money.

  1. Establish a budget. The best way to get started managing your money is by reviewing your spending over a period of a couple of months to figure out where all of your money is going. This will include your living expenses, credit card bills, utilities, food, and other personal expenses. Identify how much money you have coming in each month so that you can determine if you will need to make any lifestyle changes.
  2. Review your expenses. Take a close look at your monthly expenses so you can identify where costs can be reduced. For example, if you’re going out to eat for lunch or dinner every night, consider buying a meal plan and eating on campus, which can save you money in the long run.
  3. Lara June 19Bundle your costs. You can save more money when you combine some of your expenses to one account. For example, it may be cheapest to have one company provide all of your telephone, internet, and cable. Bundling your expenses allow you to reduce expenses without getting rid of anything.
  4. Attack your debt. Make a plan to destroy your debt quickly and efficiently. Start by paying off your smallest debts first by contributing large sums of money each month. At the same time, make minimum payments on your other debt. Keep moving on to larger and larger debt.
  5. Develop a savings plan. Before starting a savings plan, make sure you pay off all of your credit card debt. Debt interest rates are higher than savings interest rates, so debt must be erased before you can really buckle down and save money. Once credit is under control, build a savings plan. This plan should allow you to save money for short- and long-term goals.
  6. Money matters. When it comes to managing your money, acknowledge that you may need help. Reach out for advice from financial experts or even your parents.

Managing money can be tricky and takes some serious efforts. If you are struggling with your finances and debt, contact a Phoenix bankruptcy attorney to help you get things back in order.

 

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Important Documents to Share with your Bankruptcy Lawyer

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If you have debt problems or are considering filing for bankruptcy, it is best to hire an experienced bankruptcy lawyer who can assist you in sorting out your financial problems. Your lawyer will want to see a number of documents in order to give you the best possible advice and legal representation. These documents can include, for instance, your financial or legal records, according to an article.

LeeviImportant financial documents you may have to share with your attorney can include the following:

  • your latest bank statements
  • bills from possible creditors
  • the most recent payment coupons for property such as vehicles and real estate
  • bills or invoices for any purchase you have made in the previous year
  • receipts

You should also show your bankruptcy lawyer files from previous litigation, especially if judgments have been entered against you, files from your previous lawyers, and any divorce decree or similar order that tells you to pay child support or maintenance.

Additionally, there are other documents that your lawyer may need to see in order to provide you with the best possible assistance. They are: canceled checks for expenses you cannot document in any other way; your correspondence with creditors, particularly threat letters; insurance policies; tax returns, vehicle titles; your lease or mortgage; promissory notes you have signed; lawsuits; and all documents relating to debts you own or debts owed to you.

If you are contemplating filing for bankruptcy in Arizona, you should consult a knowledgeable bankruptcy lawyer as soon as possible. The advice and assistance of an experienced lawyer can benefit your case significantly. Please contact a capable Arizona bankruptcy attorney today.

 

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