Bank finance articles and tips

When dealing with your debt, the one thing that can be said is that there is no one-solution-fits-all. Every person will have different circumstances that brought them to their debt and will be dealing with different extenuating factors. For that reason, it is important that you do not attempt to give a blanket answer to your case. Just because you are dealing with debt does not mean that you file for bankruptcy. Again, it doesn't necessarily mean that you shouldn't file - it just means that it is a topic that deserves careful deliberation and thought....

The world is suffering financial turmoil at present. While recession rages, price hike becomes extensive. Citizens are more financially hassled-as their expenses escalate so as their financial obligations. You might just be one of them. You're loosing control over your finances. Aren't you? How long can you hang on? Are you thinking of filing bankruptcy? Hold on a little longer. Read this article first before you decide.

When you file for bankruptcy, you legally declare your inability to pay your creditors. Apart from the relief that you think you could get from filing bankruptcy, you need to undergo the strenuous filing process. The government had amended the bankruptcy law in 2005. And since then filing for bankruptcy has never been easy....

n today's harsh economic climate, more businesses are struggling to stay on top of their debts. However, as credit becomes increasingly scarce and customers continue to feel the pinch of strained finances, it's no surprise that more businesses are considering filing for Chapter 11 bankruptcy.

If you're a business owner considering filing Chapter 11 bankruptcy this article will outline exactly what you need to know....

New bankruptcy filers are often faced with bankruptcy terms they don't understand. Below are explanations of terms that bankruptcy debtors should know:

Means Test

The means test is an income test that bankruptcy debtors must take to determine how much disposable income they have to pay their debts. The means test was instituted in 2005 when the bankruptcy system was reformed because legislators and creditors wanted more debtors to forgo Chapter 7 bankruptcy and file Chapter 13 bankruptcy instead. The result is that bankruptcy debtors must now look at the past six months of income to determine whether or not they qualify for Chapter 7 bankruptcy. Using their state's median income as a baseline and deducting their household expenses as allowed, debtors will either fail or pass the means test. If they pass the means test they are allowed to file Chapter 7 bankruptcy....

The issue of pre-bankruptcy transfers is discussed often; but most debtors aren't sure how a pre-bankruptcy transfer is determined to be preferential and reversible. Below are a few standards that bankruptcy trustees use when determining if a pre-bankruptcy transfer is preferential and needs to be reversed:

Does It Benefit The Creditor?

If a debtor simply paid their minimum payment on a credit card before filing bankruptcy, this would not be considered a preferential transfer because it doesn't really benefit the creditor. Well, it doesn't offer an extra benefit over what they would normally receive outside of bankruptcy. On the other hand if the debtor had two credit cards and paid one off while allowing the other to go into default before filing bankruptcy, the bankruptcy trustee might consider it a preferential transfer of assets....

Despite what some bankruptcy debtors may assume, avoidance in bankruptcy is not when you run away from paying your bills. Avoidance is the power of the bankruptcy trustee to eliminate liens and reverse asset transfers, specifically those that were created before bankruptcy filing. In some cases "avoidance" is a good thing for bankruptcy debtors; but in others it may cause problems....