That’s what a recent client thought when she decided to file for bankruptcy without the benefit of an experienced New York bankruptcy lawyer. She figured she had a simple Chapter 7 case and didn’t need to go through the time or expense of finding an attorney to help her.

Relying on what she thought was solid bankruptcy information from a variety of websites claiming to know everything about New York exemptions and rules, she was off and running.

Unfortunately, she went running in the wrong direction. Her bankruptcy case went bad, and she came to me to help dig her out of the mess she’d made by looking to the wrong sites for her bankruptcy information.

The Truth Is Out There – But Difficult To Find

I had no idea how my client, this intelligent and otherwise well-reasoned consumer, could have been led astray in her quest for reliable bankruptcy information.

So I did the logical thing – I went to Google. And what I found shocked me.

Of the top search results, there was only one law firm (in the paid search area at the top) and the website for the New York bankruptcy court. Every other result – and I do mean every single one of the paid results as well as four out of the top five unpaid results – were for paid attorney referral sites.

Not lawyers. Not information sites. Referral sites.

Just Because A Bankruptcy Lawyer Pays For A Directory Listing Doesn’t Mean They’re No Good

Let’s be clear on one thing. There are many excellent bankruptcy lawyers who pay for directory placements. And I personally know many of the owners of these directories; they’re good people with strong business ethics. But these sites do not exist to provide bankruptcy information – to say they do would be like saying the Yellow Pages is a place to find recommendations. It’s just not true.

If You’re Looking For Dependable Bankruptcy Information In New York, Dig Deeper

It would be too obvious for me to tell you how wonderful this site is, and all about the wealth of information you’ll find here. So in spite of my strong desire to toot my own horn, I will not do so. But if you said how good the bankruptcy information is here for New York issues, I wouldn’t be upset.

There are other places to find solid bankruptcy information. They are as follows:

1. Bankruptcy Law Network: 26 bankruptcy lawyers from around the country who get together and provide information – free of charge. Disclosure: I’m part of BLN)
2. MoranLaw.net: Run by California bankruptcy attorney Cathy Moran, this site provides more bankruptcy information than I’ve ever seen in a single place by one person. It is an excellent resource not only for New York consumers, but also for budding bankruptcy lawyers.
3. U.S. Trustee Program: This is the governmental entity that oversees bankruptcy filings in the United States, and their bankruptcy information is well done.
4. Federal Trade Commission
5. U.S. Bankruptcy Court, Southern District of New York

Self-Help Is No Help At All

Filing for bankruptcy may seem simple, and for many people it can be. But if you’re getting your bankruptcy information from a paralegal or someone who’s not an experienced bankruptcy attorney then you’re leaving it all up to chance. Do yourself a favor – even if you decide to go it alone, take the time to sit down with a real, live lawyer (either in person or on the phone) and get the information you need to make the right decision.

Now I’d like to invite you to get a free copy of my collection abuse book, The Consumer’s Guide To Ending Debt Collection Harassment, at http://www.newyorkconsumerlitigation.com/. This information-packed downloadable book will answer all of your questions about debt collection harassment and how to take control over your life.

Jay S. Fleischman has been a NY bankruptcy lawyer for 14 years, and currently serves as the New York State co-chairman for the National Association of Consumer Bankruptcy Attorneys.

Read online: 5 Places to Find Bankruptcy Information

And although there had been changes made in the Credit CARD law which were meant to protect consumers from bad debt, cardholders must still face the fact that there is still no cap limit on credit cards with variable rates. If you are a credit card holder struggling with debt, what can you do to avoid bankruptcy? Given the situation, how can you protect yourself from financial disaster?

Review your personal credit history.

Annualcreditreport.com offers all consumers the privilege to get one free credit report each year from each of the three major credit reporting agencies (Equifax, Experian, TransUnion). Get a copy of your personal credit file and check all the charges in your credit card accounts. Verify all the payments you have made.

If there are charges that you know have been paid yet still appear as unpaid in your report, you must take action to correct such errors right away. Remember, incorrect information can significantly pull down your final credit score. Send a letter of dispute to the credit bureau and request for corrections.

Review your credit card’s terms and conditions.

Has your interest rate increased or are there unexplained charges in your bill? If so, do not hesitate to speak with a supervisor of your bank and ask about the changes made in your terms. If you know that you have been a good customer, then request your credit card issuer to bring back the rates or terms that you originally signed up for.

Some consumers may think that making such a request is not possible. Granted, some credit card companies may insist on keeping their own terms. However, keep in mind that your issuer will not volunteer to lower your rate or waive your fees unless you try to make the request. In any case, it is always worth the effort to try especially if you have been a long time customer and a good payer.

Negotiate your debts.

If you are having trouble submitting your monthly payments on time, the worst thing that you can do is hide from your credit card issuer. The most sensible action to take is to speak with a supervisor of your bank and explain your present financial situation. Why are you not able to make payments on time?

Request your issuer if your deadline of payment can be adjusted and if the late penalty fee can be waived. If you have a valid reason for not submitting payment on time, then your creditor will most likely to consider your request. If your bank agrees with your pleas, do your best to submit your payment on the date you promised.

Seek professional help.

If speaking with your credit card company does not give you relief with your credit card debt, seek help from a legitimate credit counseling agency. The National Foundation for Credit Counseling offers debt relief advice for consumers in need.

Suzy Vanstrusen is a credit analyst and a writer of the website http://www.ezcreditrepairsolutions.com and has been providing consumers with tips and tricks in repairing your credit. Check the site for more free credit repair solutions and easy credit report score.

Read online: Credit Card Debt Tips to Avoid Bankruptcy

The first thing that you need to do as soon as you decide to declare bankruptcy is to collect all the necessary financial information. The top priority on this list will be your debts. You should list them out in a proper manner, separating the secured and unsecured debts. It is always preferable that you go through your credit report. Going through it will help you get a detailed understanding about your current financial position. This apart, you will also need loan documents that you may have and documents related to your tax returns in recent times, when you file for bankruptcy.

Once you have decided to declare bankruptcy it is always preferable that you seek professional help in the form of an experienced bankruptcy attorney. Bankruptcy laws often differ from one city to another and it is therefore in your best interests if you hire a local lawyer. Make sure though that you hire the services of an experienced lawyer who is well versed with the local bankruptcy laws. Just in case you feel that you do need the services of a lawyer, you can always file for bankruptcy on your own too.

When you have made sure that all the documentation to declare bankruptcy is ready, you can then file the petition with the local bankruptcy court. The court will go through the documents submitted by you and will issue an automatic stay. This is to ensure that creditors do not take any claim to your property. The court through this procedure also ensures that none of the creditors get in touch with you directly.

Generally around a month or so after you declare bankruptcy and the issuance of the automatic stay, the court will call for a meeting of all your creditors. Any objections that are raised by the creditors are recorded in this meeting. With all these steps involved in the process, it is always preferable that you do thorough research before you file for bankruptcy.

Read online: Declare Bankruptcy – The Steps Involved in Filing For Bankruptcy

The settlement firms which negotiate with the creditors have a complete understanding of the banking industry. They know how the system operates and they are also aware of the shortcomings which are a part of the system. The settlement companies make use of these shortcomings to help the consumers to get out of debt. They ask the consumers to stop paying the lenders. To go delinquent is a tough decision to take but once the borrowers does so, the creditors wait for a period of 12-16 weeks and then sells off the debt to a collection agency for as low as 20 cents to 30 cents per dollar. The settlement companies then approach the creditors with a more lucrative deal of 40-50 cents on the dollar. The deal is lucrative for the creditors because it means 100% return on investment for the collection agency. The lenders generally agree to the deal and eliminate at least 50% of the unsecured debt that the consumers have. This is what the settlement companies do for the consumers.

If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals. To find legitimate debt reduction help in your state and get free debt advice then check out the following link.

Free Debt Advice

Read online: Debt Settlement Vs Bankruptcy – What Do Debt Settlement Firms Actually Do For the Consumer?

According to official government statistics, the total number of people who became formally insolvent either by declaring themselves bankrupt, undertaking an individual voluntary arrangement (IVA) or a debt relief order (DRO) was nearly 18% higher than the same quarter in 2009.

The number of 35,682 individuals declaring themselves formally insolvent is the highest since records began.

The number of bankruptcies fell by 11% over same quarter in 2009 but the number of IVAs increased by 20%. This could well be an indication that people in financial difficulty are trying to protect their homes.

By declaring bankruptcy there is a strong possibility that a homeowner will lose their house. By carrying out an IVA, they remain in control of their property although they may have to release equity from it.

Real number of insolvencies far greater

It is extremely important to remember that the official figures do not include everyone who is insolvent. Many individuals choose to deal with their insolvency on an informal basis using a debt management plan.

In my experience of working with those who are insolvent, the number of people who choose to resolve their problem using a debt management plan is at least equal to those who deal with the situation formally.

There are no figures recorded which can give a better insight into this, however my worry is that the reality is in fact that the numbers entering into these kinds of arrangements is actually double or triple those using formal proceedings.

If this is correct, the number of people who actually became insolvent in the last quarter is likely to be nearer 70,000 – 100,000.

No end in sight

Despite early signs of economic recovery, the number of people expected to face financial difficulty in the coming months is set to increase.

A recent survey conducted by Capital Economics suggested that up to 750,000 jobs could disappear as a result of public sector spending cuts required to get the country’s finances under control.

If this turns out to be correct, then the number of people who fall into a position of not being able to pay their debts is likely to increase significantly.

In addition, as interest rates have fallen to their lowest levels for decades, many homeowners have found their monthly mortgage payments reduce significantly.

This has protected many from the effect of falling wages due to reduced working hours and redundancy and I believe has had a significant effect in suppressing the number of people who have suffered with debt problems.

However, with recent increases in inflation, interest rates are predicted to start rising again. As the cost of mortgages start to increase this could push even more people into position of insolvency.

The number of people suffering with debt problems is currently at record levels.

Worryingly based on current economic predictions this situation is not likely to improve any time soon.

In fact, I believe the situation is likely to get even worse before signs of improvement start to be seen.

Steve Jackson is a debt adviser from BeatMyDebt.com in the UK. For more quality and unbiased information on Individual Voluntary Arrangements, visit our website at www.beatmydebt.com

Read online: Personal Insolvency Figures Reach New Highs With No End in Sight

The economic downturn hasn’t been easy for many families to endure. The housing market dropped to new lows, the amount of people who couldn’t find work increased dramatically, and the number of bankruptcy filings increased by about a third every year between 2007 and 2009. 2009 bankruptcy cases got all the way to 1.4 million.

It was not just low income families that felt the need to get control of their debt. The recession hit every layer of society, cutting across every demographic group. The demographic information from debtors throughout 2009 support that.

Many who filed bankruptcy did so because of some catastrophic event like a layoff or unexpected medical expense. Since the credit industry has made it too hard for some to fall back on credit cards, many families were left without a backup plan. Fortunately, there were St. Louis bankruptcy attorneys that were willing to help average, hard-working American families pick up the pieces and make a new life for themselves.

So, does this mean that there will be even more Missouri and Illinois bankruptcy filings in 2010? It is hard to tell. I can, though, tell you that the predictions for 2010 don’t include much change from 2009. National foreclosure rates have continued to rise and the job market isn’t predicted to turn around until late 2011.

With the variable factors remaining the same, I certainly wouldn’t expect the number of people who file bankruptcy in 2010 to decrease.

Thankfully, we know that the bankruptcy code will be there to serve its primary function–help families in need get through the tough times. In a time of such uncertainty, it is a comfort to know that you can get protection from foreclosure, credit card debt help, and relief from your creditors with Missouri or Illinois bankruptcy.

Naturally, bankruptcy isn’t the best move for every family. If you are wondering if contacting a St. Louis bankruptcy attorney is the best way for you to recover from a job loss, medical emergency, or other catastrophic event, I would suggest doing some research about bankruptcy and what it can do for your specific situation. Start with free information from reputable Missouri and Illinois bankruptcy lawyers in your area.

Castle Law Office of St. Louis, P.C. is a bankruptcy firm that helps people suffering under crushing amounts of debt get relief. We have offices in St. Louis, Missouri and Wentzville, Missouri. Visit us online at http://www.castlelaw.net or call us at 866-570-8484

Read online: How Many People Filed Bankruptcy in 2009? How Many Will File in 2010?

Some people are just happy to have the opportunity to get out from a loan/debt that was weighing heavily on them. Some people were in a predatory loan that had adjusted into a monthly payment that was no longer affordable or realistic. Whatever the reason may be many of these people faced 1 big surprise that their real estate agent or broker never advised them of:

Tax consequences!

No one enjoys paying the IRS each year. But it can be even more painful when you get hit with a 1099 from your mortgage company for hundreds of thousands of dollars!!

How does this happen? Well simply put: Lets say your house sells in a short sale for $500,000.00 but your mortgage was for $750,000.00. The mortgage company has taken a $250,000.00 loss on that agreement and can claim that loss to the government come tax time. Lenders are required by tax law to send a 1099 to all borrowers in this situation. Thus, when that debt was forgiven for you, it is viewed as income to the IRS. So now you have to pay income tax on that $250,000.00!!!

How can someone who can not pay their mortgage find a way to pay income on such large amounts? Well, usually they can’t. Luckily legislature in 2007 realized this and passed what is called the The Mortgage Forgiveness Debt Relief Act and Debt Cancellation. This gives borrowers a method to be excused from paying on that debt so long as it was forgive between 2007-2012. The form used is called Form 982 and must be attached to your tax return. That form can be downloaded here: Form 982. Simply scroll to the bottom of the page and download as a free PDF.

Daniel L. Warren, Esq. is a bankruptcy attorney in San Diego, CA. For more information relating to bankruptcy please contact Daniel L. Warren, Esq. His contact information, and more information regarding bankruptcy can be found at http://sandiegobkattorney.com

Read online: Bankruptcy As it Relates to Foreclosure and Short Sales and Tax Consequences

It is not only the consumers who face the problem! The creditors also face problems as they will not receive any money in case a consumer successfully files bankruptcy. This is creates huge troubles for the creditors as they lose their liquidity and are unable to meet the organizational costs. Backed by the stimulus money and also because of the fact that the debt settlement laws have changed, the creditors are now much more open to debt settlement negotiations.

Debt settlement means that the creditors will get back some part of the money that they have given out to the consumers as debt. The amount of loss that the creditors bear because of settlement is taken care of by the stimulus cash pumped into the economy. Also, with debt settlement, the debtors are not at the risk of losing their property and assets. Moreover, though the credit score of the consumers take a hit initially, the impact is not long lasting as in case of bankruptcy and this means that they can regain their credibility over a short period of time and borrow further money when needed.

It is because of these reasons that the debt settlement option will outpace bankruptcy in the year 2010!

Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state.

Free Debt Help

Read online: Debt Settlement Laws Have Changed! Why Debt Settlements Will Outpace Bankruptcy in 2010

The first and foremost step is to negotiate with your creditors. If you do not have the whole amount of money, which you owe, to pay back on time, but some sort of income is still there, which you get on monthly basis then you can ask your creditors to delay the deadline for giving the loan back, with a contract that you will pay back as soon as you collect the whole amount.

IVA is another option, where an expert plans a timeline to save you from bankruptcy. This will take the matter to the state government, and your creditors will not be able to take any action if your insolvency application is approved. By this strategy, your advisor will devise a plan to pay back a fix amount of money during a fix period of time, through which you will be debt free in few years and will not go bankrupt. Besides, your creditors will not be able to take any legal action against you until you keep on paying back on time.

Reorganizing the debt is a requirement for filing for bankruptcy; and, if done precisely, it can help you avoid filing at all. The procedure enables defaulter firms to restructure, in order to return to positive cash flow and for the creditors to get the highest promising return. The best modus operandi is to negotiate debt discounts and imbursement expansion strategies with your creditors.

Businessmen can also hire an expert who can manage all the funds and cash of their business. He will devise plans about how to save and cut most of the expenditures, whereas he will also help in investing money in those projects which will promise more return in order to save the bank from filing bankruptcy.

Besides, one can cut back on excessive spending and fringe benefits given to the employees. One most important thing is to take the employees of the business into confidence and major issues should be discussed with them as their suggestions might be of great use to the business. An extreme step can be cutting on some major departments and this will have a negative impact on the economy on the whole as many employees will be fired and this will create unemployment.

In short, all of the above mentioned alternatives can be of great use for an individuals or a business in order to escape from filing bankruptcy, which will have negative psychological effects on the individuals who are related to it. These are the legal alternatives which can help individuals and businesses from giving up and finding new ways to turn their cash flow positive.

You can take his advice on iva help from a professional.

Read online: Legal Alternatives to Bankruptcy

What are the available alternatives to reduce 50% debt?

When we agree that insolvency is not an option worth considering; then we have to weigh other options available as bankruptcy alternatives to us. There are several options available which will surely reduce your debt by 50%:

· Debt Settlement: This is one way to settle your debt by carrying out negotiations with your bank. Although this does not involve any legal proceedings but still I is better to undertake these negotiations through a legal counsel, attorney or a financial expert who knows how to negotiate terms with the banks.

· Debt Consolidation: In order to achieve a settlement it is necessary to have a minimum debt of $10,000. Below this amount the banks do not even consider negotiations. For those who do not have the requisite amount in debt, consolidation is an option worth considering as a bankruptcy alternative. Through this you can gather all your small debts to make one large one and then have some portion of the interest removed and get your payments rescheduled. This is very convenient for those who have several different debts besides credit card debts and would prefer to have easy management of their loans.

· Debt Counseling: although this may not be considered a way to settle debts but going through a counseling session will definitely help you understand your position in a better way and make the right choice for you.

Where to find help

The biggest issue is that where a person can find legitimate help for resolving this issue. Most attorneys are not qualified to undertake negotiations with banks unless they are corporate lawyers or are financial experts. So the best way is to get in touch with debt settlement companies who will be able to guide you in a better way without any issues. You will be able to get all the bankruptcy alternatives at one place without fearing for getting into a scam. Through their free counseling and guidance you will be able to get your negotiation under way smoothly and get a deal which is far better than filing insolvency.

Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.

Free Debt Advice.

Read online: Bankruptcy Alternatives – A Legitimate Way to Eliminate Unsecured Debts by 50%

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