Filing for bankruptcy is not an easy decision to make and there are a lot of questions that need to be answered. Questions like which type of bankruptcy is right for me? Or where do I start? How can I find the right attorney? In order to answer your questions about the different types of bankruptcy, NY Law Professionals has created an easy to understand guide.

The basic definitions of each type of bankruptcy are the same throughout the United States, as per the Federal Bankruptcy Act. However, each state has its own laws regarding the details of bankruptcies and the qualifications. First and foremost, is it necessary to establish the two parties concerned when a bankruptcy claim is filed. The party that is filing for bankruptcy is the “debtor” and the party that the debtor owns money to is referred to as the “creditor”.

A debtor can be an individual person or a business that is unable to pay back a creditor or a number of creditors. There are two types of debt that a debtor can have; secured and unsecured. Unsecured debts are often less complicated than secured debts. With an unsecured debt the creditor does not hold any collateral to keep if you do not pay back you debt.

There are four different types of bankruptcy detailed in the United States Code. They are:

Chapter 7:

Chapter 7 bankruptcy is often referred to as “liquidation bankruptcy”. Individuals, partnerships or corporations can file for this type of bankruptcy when they cannot pay off their debts. A trustee will sell all of the debtor’s assets that can be sold by law in order to pay off debts. Essentially, all of the debtor’s assets are liquidated, hence the name “liquidation bankruptcy”. There are many exemptions that exist in the State of New York when it comes to the liquidation of assets in Chapter 7 bankruptcy. Trustees cannot sell clothing, household furnishings, a wedding ring, domestic animals worth up to $450, as well as other specific items.

Chapter 11:

This type of bankruptcy is most often filed by businesses. Business owners will create a plan to “reorganize” their debt and pay it back. This plan must be furnished within 120 days of filing. In exchange, debtors are permitted to carry on with the normal operation of their business and keep their profits. This is done so that business owners can continue to collect funds to repay creditors.

Chapter 12:

Chapter 12 bankruptcy is especially for farms and fishermen. It is structured similarly to Chapter 11, but is less complicated.

Chapter 13:

In Chapter 13, debtors do not have to liquidate their assets. Just like in Chapter 11, debtors are asked to design a plan to reimburse creditors within three to five years. It is similar to Chapter 13 but is designed for individuals rather than businesses.

There are a number of exceptions as to what trustees can liquidate under New York State law. When a Chapter 7 is file, a portion of a debtor’s assets can be retained. These protections are extended to certain pieces of real estate and one vehicle valuing up to $2,400 a percentage of wages among other items.

If your spouse owes debts, you will not be held responsible for those debts under New York State law unless you entered into any type of financial binding agreement with your spouse (i.e.: you cosigned a lease agreement with him or her). If you and your spouse find that you need to declare bankruptcy only one spouse is require to file in New York. It is unnecessary for both to file.

It is normal to have many questions concerning your individual case, as bankruptcy can be a complex concept to understand. NY Law Professionals can assist you in finding the best bankruptcy attorney in New York, based upon your special needs. You can search our online database of bankruptcy law professionals in your area at any time, every day of the week. You can also read reviews and visit the firm’s website all from one site.

To start your search for the best bankruptcy attorneys in your area and to take back control of your life check the NY Law Professionals site!

Credit repair is possible if you use a dependable credit repair company. A respectable credit repair company will usually find a way to help you fix your bad credit. They rely on working with the credit bureaus and making sure that everything that is on your credit report is 100% accurate and 100% verifiable. If you have poor credit, it does not have to remain that way forever. You can get a credit repair company to help you clear up your poor credit!

The first thing that the credit repair company will do is to examine your credit report. There are certain things on the credit report that are easier to remove than others. Collection accounts are one thing that can be removed by the credit repair company fairly easily. When it comes to your credit, a collection company, which is a company that is attempting to collect a debt, is one of the easier items to be removed (this is because of the extensive collection laws that the collection company must obey). This damages the credit for seven years. A skillful credit repair company can often make this disappear from your credit report and thereby give you credit a lift by demanding proof of the debt in accordance with the Fair Debt Collection Practices Act. In many cases, the proof of the original debt has become lost as it is passed from one collection agency to another. The original creditor has to provide the collection company with proof of debt in thirty days or must be deleted from the credit report.

Another way a great credit repair company can fix your credit is to demand proof that a debt belongs to you. The law is on your side here. The creditors must be able to document that the debt belongs to you. Many can not and hence some derogatory items will be deleted because the creditors lack the documentation that the debt belongs to you. If you want to fix bad credit, you need the help of a skilled credit repair company that will do the work for you. They can make your credit score rise higher so that you can buy a car or even a house.

Yet another way a proficient credit repair company can fix your credit is through age. An bad account can only be kept of the credit report for seven years since the date of first delinquency. By challenging when the date of first delinquency occurred, many deragatory items can be successfully deleted from your report!

If you have had to suffer because of bad credit, you do not have to continue to suffer. You will be surprised at what a proficient credit repair company can do for you when it comes to credit repair. If you are looking for a way to repair bad credit, you can enlist the credit repair company’s help in removing inaccurate, outdated, and unverifiable information as well as asking them for help with establishing new positive items on your credit report. You will have to sign forms so that they can represent you when it comes to clearing up your credit and they will usually take a fee for their services after the services have been completed. This can be well worth it to have a credit score that can enable you to take advantage of the bargains that are now out there when it comes to homes as well as cars that are traditionally bought on credit.

If you’ve received a credit card lawsuit in the mail recently don’t panic. It is possible to overcome your case and defend yourself even if you cannot afford an attorney. Many collection agencies’ attorneys want a default judgment, which takes place when you don’t respond or fight back. Hopefully you are aware that if you don’t respond or even fight your credit card lawsuit that is an easy win. They aren’t required to even prove anything in a court that is listed on your complaint, but when you do fight back every single thing on your complaint must be proven. Oftentimes this is when they lose.

I have personally experienced the whole ordeal and am here to tell you that you too can win your credit card lawsuit! Don’t back down. I fought my case and won! I decided to put together a book about it to help other normal people like myself who want to fight and win their cases. You just have to have the know-how and understand the process. It will benefit you especially if you don’t have money for a lawyer. I didn’t get a lawyer, and I still won my case against Capital One.

What the collection agencies and junk debt buyers want to keep you from knowing is that they really don’t have the proper documents to win in a court of law. That is the truth. They want you to get scared as so many others do when they call you. They don’t want you to appear in court, and that way they win all the money.

I’ve had a few cases of my own: one with Capital One and a couple of collection agencies. I have won every single one of my cases and each one was dismissed with prejudice. That means they can never sue me again! I know my package, which is an e-book, can help you with your own cases as well. You can overcome the situation with the right help. Knowing how to handle your case and seeing what documents are involved is more than half the battle. I know it can be helpful for you as it’s exactly what I used for my own lawsuits.

Once you have decided to respond to the collection agency’s interrogatories the plaintiff will send you a bunch of questions requesting personal information like your name, address, SSN, your bank, and more. However, you can object to the question, but make sure you provide grounds on you are objecting. Also, you can give the Interrogatory a plain answer. The other option you have is to object to part of the Rog and respond to the other part. For example, you could state that “the Defendant objects to giving out his Social Security Number on the grounds that it ___. The Defendant answers that his full name is “Jane Doe”.” Again, all Rogs that are objected to must state the grounds as to why you are objecting to that particular Rog. Get more help on how to answer interrogatories and credit card summons with The Defendant Package which is found online at www.howtoanswerasummons.com.

Being sued for credit card debt is one of the worst things to happen. It’s never a good thing, especially if you have no idea how to handle it. That can easily change though. It doesn’t have to be a horrible experience like it is for some people. There is a way you can win your credit card suit even if you don’t have the money to afford some fancy lawyer. I’d like to help you be better educated about this type of lawsuit and am here to tell you that if I can win, so can you.

When being sued for credit card debt, it really makes a difference if it is by the original creditor or a collection agency. We all hate receiving those calls. For example, if you’re being sued by an original creditor, it is quite likely that they will have all the documents on file to prevail in court. However, they could till slip up and break a court rule during the process, which allows a win for you. On the other hand, collection agencies really never have any documents to prevail in court.

Another thing to take into consideration when you face this issue is how old the debt is. Did you know that the older your debt is, the harder it is to prove? It’s true! Your debt could very well be beyond your Statute of Limitations so be sure to look into that.

Typically collection lawyers believe that by simply giving you a Summons they are going to win because they assume you won’t go hire a lawyer or even fight the credit card lawsuit yourself. If you don’t fight it, they win by default. That could be one of the worst mistakes of your life if you don’t attempt to fight it. Please don’t plan on just ignoring your Summons. That’s exactly how you lose, and it’s really not a tough battle to fight. Take it from me; you can actually win your suit as well as I did!

When I received a summons the original creditor was Capital One, and I was still able to defeat them. “How did she do that?” you might ask. Well, I made sure to become well informed, learn my Court Rules and follow them. The whole story is in my book too. Know that there really is no need to fear. As citizens we have rights, and it’s just a matter of educating yourself on the correct way to go about handling your lawsuit. There are two ways one usually gets out of this kind of mess: hire a lawyer or defend the lawsuit yourself. I promise you it is so much easier than you think it is. I’ve been through all this so I know just how it goes. That’s why I wrote a book about it. I was able to win my case, and with my package I am confident that with all the information from my story I can help any normal person like me do the same.

When one is involved in an auto accident, there are the bodily injuries to deal with and there are also financial ones. At the minimum, there are medical treatments and in more serious accidents, there may also be issues like lost income or injuries that require costly, specialized treatment that may not be covered by your insurance policy. There is no good place to have an accident but should you have an accident in Denver, Colorado, then you will a lot of expert Denver auto accident attorneys that can handle your case.

The highest priority after being in a crash is getting medical treatment and the second should be getting a car crash attorney. The attorney you choose should have in-depth knowledge of the Denver court system so he would know how to channel the case. He should also know the ins and outs of the Colorado legal system.

Some car crash victims do not take the time to choose the attorney that gives them the best chance of winning, settling for just any one they can get or is recommended to them. Yet the expertise and experience of an attorney is one factor that can make all the difference in the compensation one gets.

Some accident victims hold off from getting an aggressive attorney because they feel they would be turning the defendant into a victim when it was honestly a crash. Through an attorney you can see things from a legal and detached angle and put emotions and personal feelings aside to go for the best you can get for yourself.

Another misconception among crash victims is that the matter will be settled through insurance companies. This might be true but at the end of the day insurance companies are businesses who will seek to protect themselves and their interests. They will only pay out as much as they have to or may make it difficult to get any compensation at all.

Only your car crash attorney would have your best interests at heart and fight for them on your behalf. Sometimes, there are parties that are involved in an auto accident like car manufacturers, road constructors and others that only the expert vision of a car crash attorney can see and make accountable.

Car crashes can be of various types; there are motorcycle accidents, those that involve trucks, public service vehicles and so on. There are attorneys with a lot of experience in all these types of accidents in Denver and it pays to take the time to seek one who has successfully litigated cases similar to yours. Your trouble will be repaid when they get you fair compensation for your injuries.

Denver motorcycle accident lawyers are people that clients should be able to rely on to provide suggestions that are in their best interests. These will range beyond what may ensue in any court or legal proceeding. As critical can be the need to know about health care services.

After an incident of this sort occurs, there can be multiple health problems to contend with. To handle them all requires contacts in more than one area of speciality. It can be hard for a client to understand the implications of long term damage that may have happened.

To lead in this field requires an ability to innovate and adapt to whatever a case needs to proceed. Sometimes a mock trial is held. Detectives can be assigned to explore details of events. There can be tedious document searches. This can all be paid for from a sum collected in the settlement phase.

People involved in this sort of incident are not often those who are best able to design a recovery program. They can be dazed and confused by the trauma left from collision. They may be further handicapped by physical pain and impairment. Firms in this field will work with practitioners and know who to direct their clients to. These providers of service should be recognized personnel in their particular skill and adept as well in creating the documentation needed by the courts.

Incidents of this nature can produce lengthy recuperation times. Treatments can be expensive. When they also turn out to be long term in nature, there is a need for legal backing to ensure that payment is provided for well into the future. One way to aid this is through insertion of text guaranteeing it into the court record. Language exactness is called for.

Many times the drivers of other vehicles fail to notice the proximity of a motorcycle. Their behavior makes collision inevitable as they unknowingly slam into a rider. The impact can be devastating to limbs. The head or back can sustain damage that has consequence over the long term.

Denver motorcycle accident lawyers can assist their clients to returning normalcy to their lives. They will have to work with their clients to see that proper compensation is given and that proper care is received. This requires contact work to develop an array of specialists that can be reached.

If you are facing foreclosure you are not alone. Thousands of people have lost their homes to foreclosure in the last year and thousands more will face financial hardship leading to foreclosure before things balance out.

The Mortgage Melt-Down

The increase in foreclosures began with the subprime mortgages that ultimately led to the mortgage melt-down. Many are placing the blame on the mortgage industry; however, no one could have predicted this. The adjustable rate mortgages, known as ARMs were one example of creative financing methods that were great for some people. The benefits of this plan included 100% financing at a low interest rate that was only fixed for 3 years. The plan was to refinance before the ARM reset and rates were increased.

Unfortunately, the economy took a devastating turn; unemployment was up and real estate values declined. When people lost their jobs and were unable to keep up with their mortgage payments, this meant that they would not be able to qualify for a new mortgage to refinance their home. Those who were fortunate enough to keep their jobs were also unable to refinance because their home lost so much value that they owed more on their mortgage than the home was worth

The Foreclosure Crisis

The devastation continues as people are walking away from their homes. Investors are taking a huge loss and mortgage guidelines are getting strict. Even people with very high credit scores are finding it difficult to get a new, fixed rate mortgage.

Unfortunate things happen to responsible people. Foreclosure is painful, no matter what the cause. People who face losing their homes to foreclosure feel helpless as they wonder who to turn to for help. Many are tired of the phone calls and letters from their mortgage companies demanding payment.

To make matters even worse, distressed homeowners are flooded with mail from companies who promise to help with guarantees to save their home or stop the foreclosure process. There are reputable foreclosure consultants who offer solutions, but most of the companies who approach people that are in default on their mortgages are offering a scam. They charge outrageous fees and perform little or no service. These predators can get your name from the legal news or a foreclosure list that they have subscribed to.

Foreclosure Help

Now that I have explained how we got into the foreclosure crisis, I will cover some of the options available to you. One is to just walk away. Though many people are doing this, it should be your last resort. A foreclosure is very damaging to your credit report and it is one of the items that take the longest time to be removed from your credit history. There are cases where this is your only option, but there are others to consider as well.

Some people are able to negotiate a mortgage modification plan with their lender to make their mortgage more affordable. The lender/servicer may agree to reduce the interest rate or extend the mortgage term. In some cases, lenders have been known to stop the foreclosure process and write off late fees, accrued interest, escrow shortages and even some of the principal. They might allow the borrower to start over with a whole new mortgage. Years ago, this was not common; however, things have changed drastically and so have lending practices.

You might list your home to see what people are willing to pay in todays market. It is likely that you will not get an offer that will cover your balance owed as market values have declined. If the lender is willing to accept a short sale, then this is a much better option than foreclosure. In a short sale transaction, the lender accepts less than what he is owed because he knows that as values continue to decline, hell take a larger loss if he lets the foreclosure run its course. By the time the redemption period is up and the homeowner is evicted, the house will continue losing value and may not sell at all.

Homeowners can negotiate with their lenders to reach a solution; however, many do not know how to go about it, or they are just too stressed out and emotionally drained to handle the task. It is important that you know what to say and how to present your case so your lender will be willing to cooperate. There are reputable companies who provide these services for a reasonable fee.

There was a time when vacant, board-ups were few and far between; now we see several empty homes on every street in many neighborhoods. It doesnt matter if were in lower-class, urban areas or in the middle to upper-class neighborhoods; there are many empty houses that are difficult to sell.

Declining real estate values and the troubled economic times have forced many responsible people to be at risk of losing their homes. Unemployment, pay cuts and the decrease in job benefits has caused millions of homeowners to face foreclosure; millions more are expected to struggle before things improve.

Though the crisis seems to be temporary, something still needs to be done to assist distressed homeowners. Sure, we will find a balance as prices continue to decline and the demand for real estate goes up, but until then, we need to decrease the number of foreclosures which add to the problem.

Vacant homes, littered with debris, are an eyesore to the neighborhood and a danger to the community. Children and teens find these empty houses attractive as they go in to explore or play. They can be injured or, heaven forbid, fall victim to predators who may be waiting inside or force them inside.

New Programs Provide Hope for Homeowners

The Obama Administration launched several new programs in March, 2009, to offer assistance to as many as 9 million homeowners who continue their effort to make their mortgage payments. The plan is to reduce the destructive impact of the housing crisis on families and communities. The Making Home Affordable program was designed to support a recovery in the housing market and ensure that responsible homeowners will be able to continue making their mortgage payments.

This program brings together government, mortgage holders, investors and homeowners to share the responsibility toward preventing more Americans from losing their homes.

New Home Affordable Refinance Program

This program is expected to help about 5 million responsible Americans refinance their homes by reducing their interest rate; therefore, reducing their monthly mortgage payment. Under this new program, homeowners cannot owe more than 105% of their homes current market value. Though many people paid at least 20 percent down when they purchased their homes, and some people are in the habit of making extra principal payments on their loans, many still have trouble refinancing because values have declined sharply. The Obama Administration has launched this program to help responsible homeowners, whose loans are guaranteed or owned by Freddie Mac or Fannie Mae, refinance their mortgage to make their home more affordable.

The Home Affordable Modification Program

It is anticipated that this $75 Billion program will reduce foreclosures and help responsible families keep their homes by modifying the terms of their mortgage as the Treasury Department cooperates with federal agencies on a comprehensive, multi-part strategy.

The Home Affordable Modification Program is expected to help millions of homeowners who struggle to make their mortgage payments, but are unable to refinance due to declining real estate values. So many responsible homeowners have found themselves upside-down with their homes being worth far less than they owe on their mortgage. It is hoped that this program will provide security for families and stability for communities hardest hit by foreclosures.

The beauty of this program is that it brings together all parties involved, including lenders, investors, servicers and borrowers and the government to share in the cost of ensuring that responsible homeowners can afford their monthly mortgage payments. This will result in reduced foreclosures and to avoid further downward pressures on overall home prices.

How it Works

The Treasury will partner with financial institutions and investors to reduce homeowners monthly mortgage payments.

Provided the lender agrees to a loan modification, the borrowers payment will be reduced to a level of no more than 38 percent of their income.

The Treasury shares the costs of reducing the payment further, from 38% of the borrowers income to 31% of the borrowers income.

The modified payments are kept in place for 5 years. After 5 years, the interest rate can be gradually increased by 1% per year until it reaches the capped rate in place at the time of the modification.

In order to reduce the monthly mortgage payment, the lender can agree to an interest rate as low as 2% and/or a mortgage term extended to up to 40 years. If the monthly payment still does not reach the target amount, the principal can be reduced; this is a last resort.

Lender Incentives to Cooperate

Lenders and servicers will be awarded $1,000 for each loan modification which meets the guidelines established under this new plan. They will also receive an additional $1,000 per year, for three years, if the homeowner is successful in maintaining the new agreement.

Servicers will be offered similar incentives if they modify FHA, VA or Agriculture Department loans, or refinance loans according to the Hope for Homeowners or similar FHA programs.

Studies have shown that modifications are more successful if they are done before borrowers are behind in their payments; therefore, incentives are being offered to lenders who cooperate before the mortgage is in default.

Hopefully, things will begin to improve as homeowners take advantage of these new programs. Preventing foreclosure will result in stabilizing areas already suffering due to vacant homes.

The multitude of recent news reports out of Washington results in a lot of questions concerning President Obamas plan to reduce foreclosures. I will attempt to minimize this confusion by briefly explaining the highlights of Obamas plan. The government estimates that this plan will assist up to nine million distressed homeowners. As the Mortgage Bankers Association indicates that there are about 51 million first mortgages in the US, this means about 18 percent may qualify for this program which was launched in March, 2009. This is a summary of a very detailed program which you can learn more about by going to the US Government website at financial stability.gov.

The serious matter of foreclosure has caused enough stress without the annoying number of acronyms being applied to the subject. Even real estate professionals and mortgage specialists are overwhelmed with these government acronyms, including TARP, TALF, H4H, GSE, FNMA, FLHMC, PITI, FHA, VA, USDA, just to name a few! Unfortunately, I must make use of them throughout this article as they are widely used within the industry.

There are essentially 2 parts to the program: The first is a plan to refinance eligible mortgages and it is being referred to as Home Affordable Refinance. The other part deals with loan modifications and is known as…Home Affordable Modification. Its just a matter of time until these are called HAR & HAM I am predicting.

First the HAR (Home Affordable Refinance):

The current mortgage must be owned or guaranteed by either Fannie Mae (FNMA) or Freddie Mac (FLHMC). If you are not sure if your mortgage meets this first requirement, you can call (800) 7FANNIE or (800)7FREDDIE between 8am ” 8pm EST. The property MUST be your primary residence. Second Homes and Investment Properties do not qualify. The borrower(s) have sufficient income to qualify. The mortgage must be up to date with no 30 day delinquencies in the last 12 months. The first mortgage cannot exceed 105% of the current market value. Example: If the property is worth $100,000, the maximum that can be owed is $105,000. If there are additional mortgages (Second Mortgage, Home Equity Line of Credit, or other liens), the other lien holders must be willing to subordinate their liens in writing to the new first mortgage. Subordinate simply means that the first mortgage will retain its superior lien position. It is OK if the total owed exceeds 105% of current value, as long as the first mortgage refinance does not exceed the 105% rule. The program officially started 3/4/2009.

A Summary of the HAM Program:

To be eligible, the Lender must be willing to participate. Investor/Lender & Servicer participation is voluntary on their part. The intention of the program is to avoid foreclosures whenever possible. Each case is evaluated separately and borrowers must prove that they can afford the modified payment. There must be a steady source of income to be eligible. There must be a documented financial hardship to qualify. The current monthly PITI (Principle, Interest, Taxes, & Insurance Total) must exceed 31% of the borrower(s) gross monthly income. No jokes allowed about the PITI acronym. The borrowers do not need to be current on the monthly payments. Again, each situation is unique and will be evaluated on a case-by-case basis. The goal of the plan is to reduce the total housing PITI payment for all mortgages to no more that 31% of gross income. This includes any second mortgages or HELOCS who must be willing to participate and subordinate their liens to the new modified mortgage. The subject first mortgage must be for the Borrowers primary residence. Second homes and investment properties are not eligible. The subject mortgage must have been made before 1/1/2009 and it cannot exceed $729,750. I am sure there is a reason that they used $729,750 as the maximum, but I cannot find any information about how the government arrived at this amount. The payment reduction will be achieved by reducing the interest rate, extending the term of the loan, or by a principle reduction (last resort). Remember, this is voluntary on the lender/investor and/or servicers part. Modifications are for a 90 day trial period. If the borrower(s) honor all of the terms during the 90 day trial, then the modification will be extended for a term of no less than 5 years. Beginning in year 6, the interest rate can be increased by no more than 1% per year until the note rate reaches the Freddie Mac Primary Mortgage Market Survey Rate on the date that the modification is executed.

This is a brief summary, highlighting the terms and conditions of these new programs. For more information, you can visit the website at financialstabiltiy.gov.

Lets all hope that this new initiative is more successful than the Hope for Homeowners Program (H4H) that started October 1, 2008. The following article was published recently by Time Magazine:

Grade: F The Plan: Enacted on Oct. 1, Hope for Homeowners was to be the main foreclosure rescue plan from Congress, which allocated $300 billion for the effort. Supporters in Congress, like Massachusetts Representative Barney Frank, said the program would allow hundreds of thousands of borrowers, perhaps millions, to refinance into lower-cost loans by cutting the amount they owed, which for many at-risk-of-default homeowners was more than their house was worth.

The Result: So how many people have Hope for Homeowners saved from foreclosure? Zero. There have been 326 applications in the three months since the program started, but none of those people ” let alone the nearly 6 million homeowners who, by some estimates, may face foreclosure in the next few years ” have received a new mortgage or a modification for the one they have. What’s more, none of the major mortgage lenders, such as Bank of America, Citigroup and Wells Fargo, has signed on to the loan-principal-reduction program ” which gives Hope for Homeowners little chance of being successful anytime soon. “Foreclosure is the problem we have to spend a lot more effort trying to solve,” says the Economic Policy Institute’s Robert Scott. “We need to put a floor under housing prices, and stopping foreclosures is the way you do that.”

Keep in mind that this article is my understanding of the new programs; all information should be independently verified. This is a government program; therefore, subject to modification. Research and educate yourself