If you wish to file for bankruptcy, it is highly advisable that you hire a competent bankruptcy attorney instead of filing for bankruptcy by yourself. But as in any profession, there are good bankruptcy attorneys and there are bad ones. A good bankruptcy attorney is a dream to work with but a bad one…well, let’s just say you will wish you never met him.
Here’s what a bad bankruptcy attorney looks like:
1. Exorbitant fees
If the attorney charges sky high fees, it should raise a red flag with you. But that does not mean you should hire the cheapest lawyer in town. Most times, you get what you pay for. Attorneys who bank on undercutting their rates just to secure the most number of clients will not be able to give you the necessary attention your case needs. The best thing to do would be to do some due diligence on what the general rates are among most bankruptcy attorneys and if you find one that is either way above or below the norm, you should avoid him or her.
2. Hidden fees
When discussing your case with the bankruptcy attorney, be sure to bring up the question of fees and ask him or her to explain a breakdown of the fees. You have a right to question what every charge is for. And you should avoid bankruptcy attorneys who are not upfront with how much they will charge you.
3. Pushy attorneys
If you come across a bankruptcy attorney who seems pushy and wants you to sign a contract as quickly as possible without giving you enough time to go through it, you should be wary of him or her. It is legally required of all bankruptcy attorneys to outline all parts of a contract to you so that you thoroughly understand it before you sign the dotted line.
4. Incompetent attorneys
Bankruptcy can sometimes get rather complicated. So if an attorney does not have enough experience handling bankruptcy cases, it would be better if you look for someone else. In your research, ask the attorney about his or her past cases. Look up his referrals of past clients and look through his credentials in independent attorney rating services like avvo.com.
If you need advice about bankruptcy or are looking for a competent bankruptcy attorney, call us at (813) 200 4133 for a free non-obligatory consultation.
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Filed under Chapter 7 (Tampa) by on Jan 20th, 2012. Comment. 
For many people, filing for bankruptcy is the last resort to resolve financial woes. But this should not be so. Bankruptcy is a right of every citizen under the law. And believe it or not, under certain circumstances bankruptcy can be a more viable option than others. If you are weighed down under a mountain of debt, generally the only options open to you are to repay them outright, reduce your expenses and repay or file for bankruptcy. If you choose the first option, you will have to find the money to repay your debts. If your debts have piled up over the years, chances are your income has not been sufficient to sustain your financial obligations. If that be the case, you may resort to borrowing to repay your existing debts but that is obviously not the solution.
As for the second option, it can only work if you make some drastic changes to your lifestyle. If your spending habits continue to exacerbate your financial problems, there is no way you can find the money to repay your debts by yourself. For instance, if you tend to spend a lot on credit you need to reduce or stop doing so altogether. If you always resort to transferring one credit card balance to another as a means of paying, you need to stop doing so and pay off your credit card balances with cash.
It can be clearly seen that the first two options to clear your debts can be painstakingly slow. That is why you should not discount bankruptcy or keep it only as a last resort.
If you choose to file for bankruptcy, there are two types of bankruptcy filings open to you (you only choose one). Chapter 7 bankruptcy is also called liquidation bankruptcy. Under this type of bankruptcy, your non-exempt assets will be sold to repay your debts. Generally, your principal home and some other assets are exempted from liquidation. After all your non-exempt assets have been liquidated, whatever unsecured debts still outstanding are forgiven. This gives you the ability to start afresh financially.
The second type of bankruptcy open to individuals is Chapter 13 bankruptcy a.k.a. reorganization bankruptcy. Under this type of bankruptcy, you are subject to a payment plan to repay all your outstanding debts over a period that can stretch up to five years. Once your debts are paid off, you will be discharged from bankruptcy.
So realistically, bankruptcy provides you with a viable way out of your debt problems in a matter of a few months to a maximum of 5 years. Imagine within a few months from now, you can enjoy a new lease of life financially without any more stress and harassment from creditors. If you wish to discuss bankruptcy, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Jan 12th, 2012. Comment.
With the prolonged economic recession, many people are burdened with debt. As lay-offs continue among big and small companies, people face an increased possibility of losing their jobs. Higher interest rates, salary cuts and job retrenchments exacerbate the debt problem. Filing for bankruptcy is usually the last resort in solving the debt crisis. But before taking that step, there may be other things you can do.
First, review all your expenses, not just the major fixed expenses like mortgage and lease payments but also the minor, incidental expenses like your morning cup of coffee, your massage sessions or pedicures. These may be small and irregular but when you add them up, they come up to quite a sizable amount of money.
Next do something about your credit card debts. The most obvious thing to do would be to spend less on credit and keep up with at least the minimum payments due each month. Also, most people have more than one card. Consider transferring part of your balance from the card with the higher interest rate to the other one with the lower interest rate.
Finally, do not hesitate to negotiate with your creditors for a lower interest rate or extended payment period, both of which would reduce your monthly expenses and ease your debt situation. Here’s a tip – when you mention that you are likely to file for bankruptcy, some creditors may be more willing to reduce their interest rates or give you more favorable terms because they would want to avoid having their debt discharged in bankruptcy.
Now assuming you have taken every step you possibly could to alleviate as much of your debt problem and still find yourself mired in insurmountable debt then it is time to consider filing for bankruptcy. The question then is when you should do so. Every person’s situation is different so it pays to consult a bankruptcy lawyer to decide when the best time would be.
For example, if you have charged a lot of expenses to your credit cards recently, it may not be a good time to file for bankruptcy just yet. This is because the bankruptcy trustee might decide that your recent credit card debts are exempt from discharge which means you have to pay them in full. The worst outcome is the bankruptcy trustee dismisses your case if you have racked up your credit card debts just so that they can be discharged by the bankruptcy. Likewise, if you expect your debts to pile up soon, it might not be the best time to file for bankruptcy.
You can discuss all this with an experienced bankruptcy lawyer who will help you save money and discharge as much of your debt as possible through bankruptcy. Call us at (813) 200 4133 for a free consultation on how bankruptcy can benefit you.
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Filed under Chapter 7 (Tampa) by on Dec 30th, 2011. Comment.
Filing for bankruptcy obviously decreases your credit score. Once you have been discharged from bankruptcy, it is time to take steps to improve your credit score. The good news is that it does not have to take at least seven years to get your credit score back to a healthy level as it was before your bankruptcy. But few people know the surefire and proven things to do to restore credit scores. As a result, most people do things that actually damage their credit score even more.
This is because there are several fallacies people have been conditioned to believe or think are correct because they seem logical. For example, many people think that your credit score will improve if you have less debt or that on-time payments will improve your credit score. While there is nothing wrong with both these practices, but they are not the primary factors that improve your credit score. In other words, even if you reduce your debt and pay your debts on time each month, your credit score may not improve.
So what really improves your credit score? Contrary to some of the popular beliefs floating around, your credit score improves with a good credit to debt ratio. As the name suggests, a credit to debt ratio is the ratio between how much credit you have and the amount of debt you carry given the credit you have. So if the amount of credit you have (from all your credit cards combined) is $5,000 and your total debts is $1,000 you have a better credit score than someone else who has a total credit of $2,000 and total debts of $500. Get it?
Therefore, after your bankruptcy is discharged you should not be too quick to close your credit card accounts just to decrease your likelihood of debt. The credit bureaus do not lower your credit score based on how many credit cards you hold. They base it on how much debt is outstanding on all the cards in ratio to the total credit you
Likewise, if you have one credit card that has reached its maximum credit limit and 3 others that are hardly used, technically your credit score is better than having 2 credit cards that have both reached half their credit limit. This is because the first scenario has a higher credit to debt ratio (it has more credit compared to debt) than the second.
With these tips, you do not have to wait several years to improve your credit score after bankruptcy.
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Filed under Chapter 7 (Tampa) by on Dec 29th, 2011. Comment.
When filing for bankruptcy, the best thing to do to make the process as seamless as possible is to hire a bankruptcy lawyer. A bankruptcy lawyer will do a lot of things for you, not least of which is guide you through the entire process (which can be very complicated, unless you are very well versed with the bankruptcy code). One of the most common types of bankruptcies chosen by individuals is Chapter 13 bankruptcy.
Here are some helpful pointers for your Chapter 13 bankruptcy filing.
Firstly, Chapter 13 bankruptcy is only for individuals and sole proprietors, not for companies or partnerships. If you wish to file for bankruptcy for your company or partnership, you need to file it under Chapter 11 bankruptcy.
Secondly, Chapter 13 bankruptcy is preferred by the bankruptcy court and is easier to gain approval compared to Chapter 7 bankruptcy (the other type of bankruptcy filing for individuals). This is because Chapter 13 bankruptcy is involves a payment plan stretched out over a period of time (up to 5 years) whereas Chapter 7 is liquidation bankruptcy where your non-exempt assets are sold off to pay for your debts.
Thirdly, there are some prerequisites to filing for Chapter 13 bankruptcy. For instance, you need to be earning a steady income. It does not have to be a high income but it must be consistent. If you only earn income sporadically it may not be considered good enough to qualify you for Chapter 13. The consistent income requirement is to ensure that you and your family have enough finances to sustain a reasonable living while repaying your debts under Chapter 13. If your income is inconsistent, the bankruptcy court may decide you do not have enough to survive while undergoing bankruptcy and hence your bankruptcy plan will not be approved.
Fourthly, you must not have debts exceeding the limit set by the bankruptcy court. If you do, your bankruptcy filing is not likely to be approved. This limit may change from time to time.
Fifthly, you must be current with your tax filings. If you have not filed your taxes for certain years, you need to bring it up to speed before filing for bankruptcy. You may still have tax debts but you must not be behind in your tax filings.
Finally, you must fulfill the residency requirements of your state. Depending on which state you live in, there are certain requirements set by the state government. Generally, you file for Chapter 13 bankruptcy in the state you reside in, but certain states have a time requirement in that you must have been living in that state for longer than a certain time to be permitted to file for bankruptcy there. Otherwise, you would be required to file for Chapter 13 in the last state you lived in (or the one you lived in for the longest time).
For more information regarding Chapter 13 (or Chapter 7) bankruptcy, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Dec 28th, 2011. Comment.
