Some states that were reported to have high bankruptcy filings this year compared to the previous year include, but not limited to, New York, Nevada, Colorado and Alabama according to data from American Bankruptcy Institute and Automated Access to Court Electronic Records (AACER). Chapter 7 and Chapter 13 were filed in these cases wherein petitioners seek to be completely discharged of all debts or given a provision of a 3-5 year plan of reorganization, respectively.

Personal bankruptcy filings resulted as an effect of the more serious state of major businesses around the US. Many large companies have sought the protection of bankruptcy law in the midst of this global financial crisis. A chain reaction was ignited when small businesses soon followed from filing bankruptcy as well. Jobs started to decrease while commodities and daily cost of living continue to increase which affected many consumers in the process.

1. One Year After the Lehman Brothers Bankruptcy
2. Bankruptcy in 2008

Simmons Co. has been feeling the slump in its sales which significantly fell in the previous months. This resulted to growing amount of debt and net loss for the company. It is expected to confer with its share holders and bank lenders prior to filing of Chapter 11 bankruptcy . This move is positively seen to help lower the company’s incurred debts and continue on with its operations.

The previous year posted a $12M profit for the company, however, this was not sustained due to the global economic recession that occurred. It already caused the closure of an office in Atlanta with some employees being laid off based on reports.

1. Reader’s Digest Plans to File for Chapter 11 Bankruptcy in US
2. Bankruptcy Filings Soar in US States

The Lehman Brothers’ bankruptcy filing put a mark on history as one of the largest bankruptcy filings in the United States with over $600 billion in bank debt, $155 billion in bond debt and $639 billion worth of assets.

The chapter 11 bankruptcy filing of Lehman Brothers was feared to create a chain reaction in the financial industry. If a giant company was not able to raise itself from bad debts, other small and large investments were threatened that the same thing may happen to them. Many companies immediately reviewed the effects of the Lehman Brothers bankruptcy to their corresponding businesses. There was a need to assess a company’s sustaining power if it will surpass the financial crisis that is extending so fast.

To date, a lot of government bail out programs has been provided to troubled companies. Many bankruptcy filings were prevented from happening. Although most financial analysts predict that the financial crisis is far from over. There is much to be done in order to overhaul the systems that lead to the economic global recession.

1. Bankruptcy Filings Soar in US States

Filing bankruptcy by the company was due to the effects of the global economic recession which lead to consumers cutting down on their budget for leisurely trips. The company’s bread-and-butter is with travel gears which makes it a direct target of this situation.
Samsonite Co. has listed $1.5B in debts and $233M in assets as of July 31 in US Bankruptcy Court in Wilmington, Delaware based on reports.

The move of filing bankruptcy aims to repay the company’s creditors and lenders. There is a meeting scheduled to discuss about the handling of the store-closing sales as part of the reorganization. Further developments on the company’s bankruptcy filing are expected to happen within the next few weeks or months.

1. Company of Beautyrest Mattress Announced Plans of Filing Chapter 11 Bankruptcy
2. Declare Everything When Filing Bankruptcy

Many people, a sole proprietorship or a company owner, are at loss when it comes to the cost of filing bankruptcy. All they are aware of is the filing fees with information that can be easily obtained from the Administrative Office of the US Courts. Sometimes, they would know someone who has gone through the bankruptcy process who can tell them about the filing fees. What is left to learn is the extent of cost that one should expect from the beginning of filing bankruptcy until the very end.

As mentioned, filing fees are necessary in order to jumpstart the process. As of this time, the filing fees for chapter 7 bankruptcy is $299, for chapter 13 is $274 and for chapter 11 is $1,039. It is best to verify with the Administrative Office of the US Courts for any changes of the filing fees ahead of time if one can confirm the date of filing. For individuals, credit counseling must be attended prior to filing of bankruptcy. The fees here will be for the account of the applicant, too.

Aside from the credit counseling, there are also costs involved when the bankruptcy proceedings are already with the courts or supervised by the trustee. This includes, but not limited to, court fees, amendment fees, lawyer’s fees and the likes. In order to get an approximation of the how much it will cost a petitioner, they may ask from bankruptcy lawyers who can give him an idea on the ballpark figure. It cannot get very accurate since the fees may change depending on the nature of the bankruptcy case filed or the time the bankruptcy case will be filed.

1. Declare Everything When Filing Bankruptcy
2. Filing for Bankruptcy
3. How Does Personal Bankruptcy Work?

A corporate bankruptcy process is a different scenario. Once a company files for bankruptcy, there are more documents that need to be gathered especially if the company is a large one and has been operating for many years since its establishment. A bankruptcy lawyer or lawyers are hired to take over the company’s bankruptcy requirements. Much like having an accounting team with a head who supervises his staff, a bankruptcy lawyer for large companies also work with other office heads of the company in order to expedite the collection of needed requirements. He also handles creditors who are keen on being paid back.

A bankruptcy lawyer is employed by individuals or corporations knowing that his assistance can make the whole bankruptcy process work smooth and fast. Not doing so may mean more time is wasted by not meeting the standard procedure required by bankruptcy law. Time wasted is tantamount to more money lost from expenses or longer court proceedings. This is the last thing that a company or individual can take especially during a financial crisis. With this, many bankruptcy firms are extending their services to whoever needs their assistance.

1. Filing for Bankruptcy
2. How Does Personal Bankruptcy Work?

A company or individual filing bankruptcy now hires a bankruptcy attorney to assist in the bankruptcy process. A personal bankruptcy is a little less difficult to manage since this involves the individual’s household assets and liabilities whose documents may take less time to gather. A corporation, on the other hand, that flies for bankruptcy will need more time to collect its financial documents due to a much bigger operations it is involved with. The financial documents include, but not limited to, list of all debts, assets, liabilities, tax documents and loans. Forms are also filled up which will be submitted along with all these financial documents.

The type of bankruptcy should be determined based on what grounds is appropriate for the petitioner(s). Chapter 7 may be filed by an individual, proprietor and corporations seeking for the discharge of most debts. Chapter 11 is for corporations and partnerships and Chapter 13 only caters to individuals. Both chapters generally require the petitioners to provide a re-organization or re-payment plan to be presented to the trustee and creditors for the hope of regaining their financial control of finances over a period of time.

As mentioned, a bankruptcy attorney may best represent a petitioner filing for bankruptcy for its technicalities. Missing out on important areas during the bankruptcy process will only cause delays and further financial expenses for the petitioners.

1. The Bankruptcy Lawyer
2. The Cost of Filing Bankruptcy

Each state has its own exemptions based on state codes it follows. In general, assets which are possible to be exempted includes, but not limited to, life insurance proceeds, health or disability benefits, property of business partnerships, IRAs deposited over 1 year before filing bankruptcy and public employees retirement and disability benefits. For personal property it includes burial plots, books, clothing, furniture and residential condominium deposits. Other assets include wages, homestead and tools of trade.

Chapter 7 bankruptcy is probably the most sought after provision of the bankruptcy law due to the fact that most debts can be discharged using it. However, it is still important to check with a licensed and experienced bankruptcy lawyer on the many other prerequisites and law provisions of Chapter 7 before one file under it.

1. Declare Everything When Filing Bankruptcy

First thing to do is begin building a better credit score. Your public records may state your history of bankruptcy but this will not stay on forever. You have the chance to build new credit ratings by being more careful with your spending habits. Financial management is the way you can handle your monthly obligations like paying house bills, loans, tuition fees and others. Since credit cards are very important, you may start applying for one. Expect stricter payment terms and even higher interest rates by credit card companies. It is just their way of protecting their business. You need to regain your credit worthiness so just be patient and you’ll finally get better credit card deals.

If you can maintain regular payments on your credit cards over a period of time, there will be more opportunities of getting loans which can help your credit score even more. Taking on secured loans is another option. You can put your property as collateral for a loan. A financial institution will surely allow this arrangement and give you a loan the soonest possible time. Make sure though that your income can pay for this loan so you will not end up losing your property. Remembering the circumstances that put you to file for bankruptcy should be your guiding light so as not to go back to the same direction again.

Bankruptcy can really affect one’s credit score rating. Nevertheless, this does not mean that the past should hold back a person from getting a better future. Learning the options how to have better credit score rating is the answer.

1. Credit After Bankruptcy
2. Understanding the Nature of Bankruptcy

In this light, there have been laws passed to guide individuals in filing bankruptcy . One of the initial requirements is getting and securing a credit counseling certificate mandated by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCA). Credit counseling must take place 180 days before the application. Another requirement is having a means test which will determine if the debtor’s application holds basis. There is a formula being used per state which takes the individual’s income and compares this to the median income in the state he/she is, as well as under a family number which he/she has. The goal is to identify which particular type of bankruptcy chapter the individual may apply for.

Once the application reaches the court, a trustee is assigned for the case. Meetings with the bankruptcy applicant and his/her creditors will be scheduled. The trustee is responsible in ensuring that the bankruptcy applicant’s statement of debts, liabilities and assets are accurate for the proceedings to carry on. Personal bankruptcy process may take 4 weeks and above depending on the course of the confirmation of the judge, the hearings, liquidation of assets and distribution of its proceeds will take.

1. The Cost of Filing Bankruptcy
2. Declare Everything When Filing Bankruptcy
3. Bankruptcy Exemptions under Chapter 7