Credit Report Repair Guide

Between 1994 and 2004, 1.6 million people filed for bankruptcy in the United States and many used a Washington DC bankruptcy lawyer.  That is one in every three hundred people.  Doesn’t sound like a lot?  Well, consider that in 1984, only about 300,000 people filed for bankruptcy in the US.  That’s a 533% increase in 20 years.  As the consequence, the US House of Judiciary Committee decided the old Bankruptcy Code, that hadn’t been updated in 25 years, needed a sweeping and immediate overhaul.  They felt that bankruptcy discharge was too easily obtained and far overused, having become an easy remedy for overspending and providing no example to debtors who were likely to commit the same mistakes again. 

In 1997 alone, more than 44 billion dollars in debt was discharged by bankruptcy fillings.  That is 110 million dollars a day and 400 dollars per US household.  Creditors testified in the Judiciary Committee’s hearings that these losses were significant, detrimental to the nation’s economy and eventually passed on to responsible consumers in the form of higher interest rates for credit, higher down payments and generally higher prices for goods.  

The Judiciary Committee also felt that there were loopholes in the bankruptcy laws which petitioners and attorneys had abused.  These included excessive filings and even incentives to file bankruptcy.  In 2002, the United States Trustee Program, a role of the Justice Department that oversees the bankruptcy process, began a civil enforcement initiative whereby it identified abuses in the system.  This program uncovered an alarming number of misuses by debtors, attorneys and others including incorrectly filing documents and discharges of debt that should have been challenged.

The Committee also found that often filers of Chapter 7 bankruptcy should have been required to file Chapter 13, or an organized repayment plan, as they proved capable of repaying their debts but were not required to do so under the law at the time.  A Washington DC bankruptcy attorney can help you with the new “means test”, which now determines which type of bankruptcy you are qualified to file.

Opponents to the plan rallied to contest the proposed reforms.  They testified that bankruptcy was neither overused nor abused and that changing the law to make bankruptcy tougher to obtain would be more detrimental to the economy.  They cited that 91% of filers had suffered either job loss, divorce or overwhelming medical bills.  But, despite arguments to the contrary, President George W. Bush signed into law the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 on October 17 of that year. 

In general, the new reforms included:

•    Mandatory credit counseling
•    Passing a “means” test to determine ability to repay debts.
•    Proof of income and tax returns required
•    Mandatory financial management education
•    Greater priority for child support and alimony
•    Tougher requirements on bankruptcy lawyers for accuracy
•    Less “automatic stays” for filers 

A Washington DC bankruptcy attorney will have further details on the new reforms.

written by Credit Repair Guru \\ tags: bankruptcy attorney in Washington DC, bankruptcy lawyer in Washington DC, Washington DC Bankruptcy Attorney, Washington DC bankruptcy lawyer

Filing for personal bankruptcy can be a life changing experience.  Anyone having to consider filing personal bankruptcy can be terrified of all the paperwork involved and then thinking about how this is going to impact your credit afterwards can just be very overwhelming and frightening for some.  Choosing the right Washington DC bankruptcy lawyer is crucial for your piece of mind and sanity as you try to navigate your way back onto the right path to financial stability.

Bankruptcy is a personal decision. Most people file bankruptcy because of crushing debts, often caused by financial hardships such as unemployment, lack of adequate insurance, catastrophic medical expenses, marital problems, overextended credit or, in some cases, out of control spending.

Because of the complexity of filing for personal bankruptcy, you should contact a bankruptcy lawyer in Washington DC who specializes in the field. They can help you with the whole process.  A Washington DC bankruptcy lawyer typically charges a flat fee, which may well be worth it if you can eliminate some or all of your debt.

There are two kinds of personal bankruptcy: Chapter 7 and Chapter 13. Chapter 7 personal bankruptcy involves liquidating your assets and turning them over to the courts. A trustee of the courts follows a court-supervised procedure, reduces your assets to cash, and then pays the creditors. A Chapter 13 bankruptcy is filed by a debtor who has a valuable asset, such as a home, that he or she wishes to keep, but is not covered by the state or federal exemptions. Under this kind of bankruptcy, the debtor, through the courts, sets up a plan of payment with the creditors over a period of several years. 

Once your Washington DC bankruptcy attorney has filed your personal bankruptcy case and the court has approved the petition, all transactions are frozen. Notices are mailed to creditors who must stop all actions against you to recover or collect money. Once the debt has been satisfactorily resolved under the agreement stated in the personal bankruptcy proceedings, a discharge is issued, releasing the debt. All creditors receive a permanent order to stop all forms of collection action against you on discharged debts, including legal action and all communications.

written by Credit Repair Guru \\ tags: bankruptcy attorney in Washington DC, bankruptcy lawyer in Washington DC, Washington DC Bankruptcy Attorney, Washington DC bankruptcy lawyer

When you see yourself in financial crisis and other options do not seem to provide a possible solution, you need to start thinking about filing personal bankruptcy as a way to protect yourself and any assets you may want to keep from your creditors. Equally as important as this decision is that of picking out the right personal bankruptcy attorney.

Personal bankruptcy is one of the toughest decisions you’ll ever make, with so much pressure and the creditor harassment you may be experiencing, you don’t want to be worried about spending unnecessarily, and a personal bankruptcy consultation should in fact be free.  A bankruptcy attorney in Washington DC will be happy to offer a free consultation, there should be no need to pay for one.

The decision to file for bankruptcy is an essential one, and the future consequences of it must be understood before it is taken. It is an extremely difficult decision and better made with the guidance of a bankruptcy attorney in Washington DC who has many years of skills working in the field of personal bankruptcy.  Filing your case with a respected Washington DC bankruptcy attorney will make a huge difference in the result of your personal bankruptcy case.

After filing the appropriate paperwork, your bankruptcy attorney will file a petition in the federal courts on your behalf.  Once this petition is filed, all of the dreaded and harassing calls and letters that you’ve been receiving will end and your creditors will no longer be able to take action against you.  Any and all action from creditors and financial institutions against you will be put on hold.

Filing for personal bankruptcy is a serious event. But by carefully choosing your personal bankruptcy lawyer you can expect to save money and other valuable assets and get a better life after the bankruptcy as well. Selecting the right attorney of bankruptcy in Washington DC will give you serenity so you can feel comfortable beginning the process of getting your financial life under control.

written by Credit Repair Guru \\ tags: Washington DC Bankruptcy Attorney