A state of bankruptcy exists when a business or individual can no longer afford to pay their debts and or employees.

The most popular form of bankruptcy is chapter 7, which accounts for 85% of filings. It is often considered as the most attractive option as it allows the debtor to emerge debt free.

The main drawback to chapter 7 is that, with a few exceptions, all personal assets are sold to provide funds for creditors in full or part payment. However, if an individual is under crushing levels of debt, losing everything and starting again can be an attractive proposition.

However, chapter 7 bankruptcy is not always an option, as a compulsory 2 stage means test has to be completed to ensure that the individual really does have no way of meeting his or her debts.

In effect, if your income, after allowable living expenses are deducted (and these expenses and amounts vary state by state), exceeds the median income of a family of the same size in the same state, over the preceding 5 months before the month bankruptcy was filed, further means test calculations are applied to see if any non secured debt can be repaid. If not, then chapter 7 will be allowed.

So, what are the alternatives to chapter 7?

The first thing to consider is whether claiming bankruptcy can be avoided in the first place. Bankruptcy has a major negative effect on personal credit ratings and makes any future bank accounts, credit cards or loans very difficult to obtain. Bankruptcy should be an absolute last resort.

Before filing any sort of bankruptcy, a debtor should consult with their creditors to see if repayments etc can be renegotiated or delayed, to allow the debtor some “catch up” time.

Seeking a rescheduling of repayments is basically a chapter 13 filing, where the court agrees with creditors a repayment schedule over 3-5 years. However, if you can negotiate this yourself, without formally going bankrupt, so much the better. A debt counselling service can also assist in seeking an adjustment to repayment terms.

Chapter 11 is very similar to chapter 13 and is suitable for business. No assets are sold so the business can carry on, making payment to creditors under a repayment plan, and after the bankruptcy is discharged, can hopefully prosper, having caught up with its debts.

It might be that because of these harsh financial times you might be thinking about declaring yourself bankrupt. If you need more free information about declaring yourself bankrupt, visit www.declaringyourselfbankrupt.net.

House equity is the present market worth of your home minus all debts incurred against it. A single large advantage of investing in real estate is that the property price will increase steeply over time. If you have an expensive homestead and you’ve paid most on the mortgage, you might want to find some benefit from the present worth from the property by taking one more mortgage towards it. Mostly men and women opt for this financial product for repairing their property, or pay other bills like medical expenses, or educational expenses. However, a home equity loan creates a lien towards your homestead, and reduces the actual house equity.

Being a Texan brings you some special advantages in this respect. Traditionally Texas laws are written with sole intention of protecting you and your homestead. Therefore, just before 1997, there was no existence of home loan in Texas. Since, home equity loans are closed kind and of secured nature. “The debt is thus secured towards the collateral - in the event that the borrower defaults, the creditor takes possession with the asset employed as collateral and may well sell it to satisfy the debt by regaining the dollar amount originally lent to the borrower.”

Nonetheless, finally the Texas estate laws were amended to permit house equity loans with provision of the strongest consumer protections from the United States. To ensure validity of one’s home equity loan, you need to understand these provisions:

* Total quantity of debt towards your house should not exceed 80% of its fair market worth. For example, if your house costed you $70,000 and you could have a mortgage of $30,000. You’ll be able to get a home loan of at most $26,000.

* You can consider 1 home equity loan at a time towards your home.

* You can take a single home equity loan per year.

* Part of one’s farmstead which is taxed as ‘agricultural land’ or ‘open land’ should not be used for getting a home equity loan.

* You should not take a mortgage from an unlicensed person, unless he is providing ’seller-financing or related to you within the second degree’.

* Your lender will charge you closing fees, apart from the interest for the loan, but it should not exceed 3% of the principal amount of the loan.

* You are free to use the fund for any lawful objective.

* The home equity loan needs to be secured only on your homestead, no other asset ought to be mortgaged for this purpose.

* The loan may be closed only at the permanent office of a lender, a title business, or an attorney’s office.

* The mortgage can’t close until 12 days after made application for that mortgage and received a special notice from the borrower’s rights.

* Before the day prior to closing, you have to receive a final itemized disclosure from the actual fees, points, interest, expenses, and charges which will be charged.

* After the mortgage closes, you’ll have three additional days to change your mind and cancel the transaction without having any penalty or charge. The mortgage proceeds will need to not be delivered before this.

* The lender isn’t permitted to conduct a private foreclosure; all home loan foreclosures must be ordered by a court.

A little thought on the above-mentioned provision will reveal that, these laws are written keeping you, the homeowner in mind. Still you will discover unscrupulous lenders who try to find the loopholes and trap you into a foreclosure. As a result, it’s wise to think and consider advice before receiving a home loan. In case you acquire a home equity loan to pay your credit card bill or other such unsecured loans, you are converting your unsecured mortgage to a secured loan. Household becoming your most crucial asset, you must take utmost care.

The Author Provides Information on San Antonio Real Estate Law in the State of Texas. He is well versed in many areas including foreclosure law, commercial law, real property law, and credit card defense

Lawyers who specialize in bankruptcy law are called bankruptcy law attorneys. They understand what is like to be in debt, and what it takes to erase this debt from a credit report.

In recent years, bankruptcy laws have changed quite a bit, tightening regulations to make it harder to file for bankruptcy. This is to keep people from spending frivolously and make them responsible for the debt they incur. However, it is still quite possible to file for bankruptcy.

Personal bankruptcy comes in two main types. Each type has different qualifications and guidelines which must be followed in order to file. When gathering all your debt for filing purposes, make sure to be thorough and include everything that qualifies. This is an important step because if you forget to include something and your bankruptcy is approved, you will still be responsible for the qualifying debt that you did not submit.

When are bankruptcy law attorneys needed? If you have decided that you should file for bankruptcy, the first thing you need to do is talk to a lawyer. The question of whether or not you qualify to file for bankruptcy is something that a bankruptcy law attorney will be able to answer for you. They will explain what your options are in relation to the different kinds of bankruptcy. This initial meeting, or even the first few meetings, should be free. Therefore, you do not have to worry about wasting money on a lawyer that you will not end up using.

If they think that you have a good chance of succeeding with your claim, they will then work with you to ensure that you have all of the relevant documentation, such as proof of your debts and income. The attorney will then accompany you in front of a judge.

So, how do you find yourself bankruptcy law attorneys? There are plenty of bankruptcy law attorneys out there offering their services; in fact, so many that it can seem overwhelming . First, ask your friends and family if they know of any good lawyers. If they personally have not dealt with any, they may know someone who has and who can offer a recommendation. Should that line of inquiry not prove to be fruitful, then next try looking through the local phone directory. There are also several different online directories where attorneys list themselves to make it easier for you to find them.

Do you need to find bankruptcy law attorneys? Look no further than www.miamilawyersandattorneys.com. A premier source for legal help in the Miami area. This website is spearheaded by Julio Martinez, the man behind well known business networking directories.

A Chapter 7 bankruptcy is also known as a liquidation bankruptcy. This means that any property that a Chapter 7 filer has that is not exempt may be liquidated or confiscated and sold to pay off debts.

One of the main points to consider in deciding whether to file a Chapter 7 bankruptcy is what property you can keep and what property you may have to give up.

Tennessee exemption laws allow a single person to keep up to $5,000 of their home’s value. While married couples can exempt up to $7,500.

Tennessee grants an exemption up to $12,500 for individuals over the age of 62. A $20,000 exemption applies to married couples where one spouse is over 62 and the other under 62. A larger $25,000 exemption applies to married couples where both spouses are over 62.

Tennessee law grants a $25,000 homestead exemption for an individual filing a Chapter 7 who has at least one dependent child. This exemption doubles to $50,000 when a married couple with at least one dependent child files a Chapter 7.

The amount of equity in your house is important to know when considering Chapter 7. If your exempted amount is more than your equity then there is no chance a Chapter 7 Trustee will seek to sell your house to pay creditors.

Filing Chapter 7 when your equity exceeds you allowed exemption may result in either yu having to pay the difference to your creditors or the Chapter 7 Trustee selling your house and paying creditors with the proceeds, minus your exempted amount.

The last point to consider is that you usually do not want to file a Chapter 7 if you are behind on your mortgage payments. When you are behind on your mortgage, a Chapter 13 might be a better option for someone wanting to keep their home.

A Chapter 7 Bankruptcy is designed to give you a fresh start by discharging your debts. But some property that is not exempt may be sold in order to pay off creditors.

If you are considering a Chapter 7 bankruptcy then it is important to know what you can and cannot exempt.

Each state has different exemption rules. In Tennessee a single individual can exempt $5,000 of their homestead (house) while a married couple can exempt $7,500.

For those filers over the age of 62 Tennessee allows an individual a $12,500 homestead exemption. A spouse aged 62 or older who has a spouse under 62 is allowed a $20,000 exemption. A married couple both of whom are over the age of 62 receive a $25,000 exemption.

Tennessee law grants a $25,000 homestead exemption for an individual filing a Chapter 7 who has at least one dependent child. This exemption doubles to $50,000 when a married couple with at least one dependent child files a Chapter 7.

If you own a house and are considering filing Chapter 7 bankruptcy you will want to know how much equity you have in your house. If the amount of equity is less than the amount you can exempt, then you can keep your house after filing a Chapter 7 without paying any money and without risk of the Trustee auctioning your house to pay creditors.

In the case where your exemption is less than your equity then you have two choices; pay the difference to the Chapter7 Trustee, or allow the Chapter 7 Trustee to sell your house.

If you are behind on your house payment then Chapter 7 might not be the best option. A Chapter 13 repayment plan would ensure you retain possession of your home.

The Federal Bankruptcy Code provides for protection from creditors. Chapter 7 and Chapter 13 of the Code are designed to help consumers get a fresh start, free from debt.

The automatic stay is a very powerful tool providing protection from creditors. The automatic stay stops many creditor actions, including:

- Home foreclosure

- Vehicle or other property repossession

- Paycheck garnishment

- Government tax liens and levies

- Harassing phone calls

- lawsuits

The claims of creditors will still exist, but they cannot take action to collect on those claims. Unsecured debts will usually be eliminated through discharge. Those creditors that have a security interest in property will be treated differently depending on whether you wish to keep the property.