Bank finance articles and tips

With all the people filing for bankruptcy these days it seems that most are only interested in filing Chapter 7. When a friend calls and tells you they're going to file for bankruptcy, the first thing that most people think is Chapter 7. Chapter 13 bankruptcy is a very powerful tool when used in the right circumstances. A Chapter 7 bankruptcy is usually best used when an individual has a large amount of unsecured debt and a blue-collar job. You see, to qualify for Chapter 7 the debtor needs to come in at the median income for their state or below. Over the last few years, the median income has been dropping due to unemployment and employers reducing wages to be competitive. This in itself is making it tougher and tougher to qualify for Chapter 7 bankruptcy. For those that make a substantial household income, there is Chapter 13 bankruptcy. And with Chapter 13 comes the vast array of benefits that most people haven't even heard of. One tip that most individuals should take heed, Chapter 13 bankruptcy is best served with the help of a bankruptcy attorney.

One of the common misconceptions about filing for bankruptcy is the 90 day rule. If you ask debtors that are filing bankruptcy if they understand what the 90 day rule is, you get answers like, you can't buy anything for 90 days prior to the bankruptcy filing or you stop paying your bills 90 days before filing. Both of them sound like they could be true, but in reality there is no 90 day rule that makes a difference to a debtor.

Many debtors filing for bankruptcy have heard of it but have no idea of how it works. The 90 day rule allows the bankruptcy trustee to recover payments that a debtor made on legitimate debts, if those payments during that 90 day time frame gave the creditor more money than they would have gotten out of the bankruptcy filing. The bankruptcy code calls these payments, preferences.

Bankruptcy protection provides consumers with a way to start over again financially through a complete or partial discharge of debts or a reorganization of debts. For many consumers the most critical consideration is finding out exactly what types of debts can be discharged in a Chapter 7 or Chapter 13 bankruptcy. Individual financial circumstances and state-specific bankruptcy regulations will determine exactly what debts can be discharged and by whom in a bankruptcy, but for the most part these debts include: taxes, mortgages and equity lines of credit, loans, medical bills, and credit cards. A discharge of debts under bankruptcy protection must meet the following guidelines in order to be approved by the bankruptcy trustee and court:

All around the nation, people are experiencing the ramifications of hard times in recent years, in more ways than one. In many cases, whole areas are disrupted by the economic decline, as people have lost their careers, and in more serious cases, they've given up their homes, but more than the average American is seeing the effects of the recession.

With some neighborhood markets still attempting to get back on their feet, the U.S. is now confronting another kind of dilemma, seeing as how companies have been known to file for bankruptcy, and recently Washington even wrestled with their own potential economic emergency. One town facing a town-wide bankruptcy issue that may drive wages down is Harrisburg, Pennsylvania, and, as if that isn't enough, they might have to terminate of up to of their 62 city workers.