Category: Bankruptcy


How Will Filing For Bankruptcy Impact Me?

filing for bankruptcyFiling for bankruptcy is no walk in the park and to reach such a difficult decision requires a lot of time and mental strength. Once you realize that there is no way out of your financial pit then you need to start looking for a bankruptcy attorney.

Many people are of the opinion that hiring a bankruptcy lawyer will only increase your expenses and this is the last thing you need under the circumstances. However, if you don’t hire a lawyer as soon as possible then you could risk losing everything that you have to parties to whom you owe money. The sooner you bring in an attorney the faster you can start afresh. Wallowing in your financial mess will only worsen your condition with time and the only way to salvage yourself is by calling in a lawyer who can help you file for liquidation. Your lawyer can help you to understand about loan modification even better.

Filing for insolvency is a complex procedure that needs expert help right from the beginning to the end. A successful filing will help you gain freedom from your creditors and this is exactly what you need when you have people harassing you to pay outstanding dues. If you had the money you wouldn’t be filing for bankruptcy but most creditors don’t seem to realize this vital point. A good lawyer will help you keep the creditors at bay till you can stand up on your feet again.

That’s why it is mandatory to have a reliable bankruptcy attorney in hand at all times. You don’t know when you might require his/her legal advice. While you might be looking to save every penny while filing for insolvency, paying a lawyer to help you is a good thing to spend on. Some people frown upon this expenditure but it is vital you successfully file for bankruptcy if you want to be relieved of all payment pressures.

Of all the legal proceedings that a lay person may have to face, bankruptcy is one with far reaching consequences for all concerned. It would need an expert bankruptcy lawyer to suitably allay concerns. Or at least make the picture clearer for the individual filing for bankruptcy. These concerns could relate to the long-term implications for the family. Would it entail a loss of the family home? What would happen to family heirlooms? What about the vehicles owned by the individual or his/her family members? Will they be seized? Or can they be saved?

A bankruptcy attorney would be the best person to address queries related to procedural issues and implications. An important fact to be noted is that while bankruptcy cases are filed in United States Bankruptcy Court (units of the United States District Courts), federal law governs procedure in bankruptcy cases. However, state laws are often applied when determining property rights. So, where you reside or where your family home is located would make a difference something only the bankruptcy lawyer would be able to tell you. It is state law which will help in deciding the validity of liens or rules protecting certain property from creditors.

It would usually be unwise to generalize some bankruptcy issues across state lines as state laws play a major role in many bankruptcy cases. These exemption laws vary greatly from state to state. In some states, exempt property includes equity in a home or car, tools of the trade, and some personal effects. An asset class such as tools of trade will be exempt under a more general exemption for personal property rather than by virtue of its class in some other states. The fair debt collection practice act is very much important to your business as well. You may ask propoer assistance from you laywer about it as well.

Since voluntary bankruptcy cases are filed by debtors, they would naturally be concerned about whether or not bill collectors will stop harassing them. Only an expert bankruptcy attorney can clarify which Chapter/s and/or amendments to the law are applicable in your specific case and will be able to help define estate’ so as to cause least prejudice to the client.

Why The Fair Debt Collection Practices Act Is Very Important To Your Business

The Fair Debt Collection Practices Act was enacted to address and reduce the problems associated with harassing debt collectors. It does, however, offer benefits to collection agencies as well. Through these laws and regulations, the Fair Debt Collection Practices Act encourages collection agencies to act in a professional manner when attempting to collect a debt.

Those that are in the business of extending credit have a reasonable expectation of being paid back. Whether a product is delivered with the agreement to pay upon receipt or an individual is issued tens of thousands of dollars in unsecured credit card cash advances, the lender is entitled to being paid back.

Clearly, there are instances when the lender is not receiving the payments they are due. There can be several reasons for this. Sometimes, the borrower may be experiencing financial difficulties and needs more time to pay their debt. However, at other times, they may simply be irresponsible about paying their debt and they default. Whatever the reason, the lender is fully within their rights to seek and expect payment.

Debt Collection

This is where collections agencies come into play. Their goal is to acquire the payment due their clients. However, they may not take a Wild West style approach and do anything they wish to do in order to recoup a debt. This is where the Fair Debt Collection Practices Act comes into play.

The Fair Debt Collection Practices Act was enacted in 1978. There have been added amendments and modifications to the Act that have altered it in some ways. For example, a new clause to The Fair Debt Collection Practices Act states that a debtor in collections can request the collection agency to cease further contact with him/her, and the collections rep must comply with this request.

Consider though, that this does not prevent the collection agency from pursuing a valid debt. Collection agencies are still within their rights to inform the debtor of their intention to pursue the debt via other legal channels, namely through an attorney.

To know about the loan midification visit

This will only occur if the debtor informs the collection rep in writing. If the communication has stopped because of the inability to reach the delinquent payer, then it is legal to pursue third parties in a courteous, non-threatening manner. Additionally, the collection rep will not be allowed to disclose the call is over debt issues so as not to invade the privacy of the delinquent payer. Do these rules seem somewhat skewed to help out the delinquent payer? To a degree, yes; however, they also help the collection agencies stay out of trouble by engaging in unprofessional conduct.

As these rules and laws clearly demonstrate, the purpose of the Fair Debt Collection Practices Act is to eliminate unprofessional and abusive behavior on the part of some collection agencies. Such behavior undermines the credibility of the business and also makes it difficult to collect revenues. After all, who wants to deal with collection agencies that are abusive?

Collection agencies found to be in violation of The Fair Debt Collection Practices Act and Your Rights. can be penalized in a number of ways, to include legal actions. They can also have their license revoked. Most common are fines levied against offending agencies. However, collection agencies are within their rights to appeal these fines.

The Fair Debt Collection Practices Act is both lengthy, and can be somewhat complex. Thankfully, it is posted in its entirety on the Federal Trade Commission’s website. We will be really happy if you just say hello and share your views with us.

Understanding predatory Loan Modifications – What You Don’t Know Could Hurt You

predatory loan 01Lenders are swamped with applications from home owners that are in default and don’t have the man power to keep up with the demand from home owners that want to save their homes. The dream of home ownership seems to be withering away and is becoming more of a nightmare for home owners as their homes are losing value on a monthly basis and many have adjustable rate mortgages that spiked up and made the payments no longer affordable. Today the solution for many home owners that want to keep their homes is known as a Loan Modification. The guide to short-term lending may help you understand better about the short term lendings.

If you find yourself falling behind on payments because of an adjustable rate mortgage, reduced hours at work, divorce, illness or any other type of financial hardship, then working with a loss mitigation expert can be your saving grace. Although you can attempt to work directly with you lender to get a modification, it is highly recommended to have a professional lawyer or right business attorney  handle your case as they know exactly what the lenders are looking for and can increase your chances of actually getting approved.

If you attempt the loan modification yourself, you will find that the lender will normally try to take advantage of the home owners and not work out a mutually beneficial modification. Statistics have shown that most of home owners that attempt a loan modification without a professional, usually end up back in default within the first six months. The modification process is a very time consuming and frustrating process, as each lender has its own standards and procedures that makes it very difficult for many home owners to attempt on their own. To make matters worst, these lenders seem to change their guidelines and requirements almost on a daily basis to accommodate the ever changing real estate market. For more understanding please contact us at

Beware of companies that offer specific guarantee’s and what I mean by that is a company that tells you a specific rate and if they promise a reduction in the principal amount you owe. Principal reductions happen but very rare, normally there is a chance of see a reduction in the principal amount. And the reason it is impossible to guarantee a specific rate, is because the lender is the one that determines your rate and terms and the only way to know what you will receive is once you get an approval from the lender. Better be sure of what you are about to do.