Bankruptcy and the Bankruptcy Means Test

The bankruptcy Means Test was a qualification standard adopted by Congress in 2005 for bankruptcy filers. It essentially determines whether you qualify for a bankruptcy liquidation, better known as a Chapter 7 bankruptcy. If you do not qualify for a Chapter 7 bankruptcy, the Means Test establishes the amount of your debt you must repay though a debt reorganization, most commonly a Chapter 13 bankruptcy.

The Means Test was established by the Department of Justice. Here is a link to their site. The Means Test is not difficult to apply, though it can be complex if you have higher income or your personal finances themselves are complex.

Even if your income is above the Means Test limit, you may still qualify for a Chapter 7 bankruptcy liquidation. Expenses are taken into consideration and, if higher than the norm, they may offset your income allowing you to qualify. There are other factors, too, that impact the figures for the Means Test. Suffice it to say, there is a lot that goes into the Means Test.

And even if you do not qualify for a Chapter 7 bankruptcy under the Means Test, you can still qualify

Sacramento Bankruptcy: Debt Relief Alternatives

Bankruptcy is an option to eliminate or reorganize your debt. There are other alternatives besides bankruptcy, though. Debt relief companies and agencies can help, but be cautious taking this route.

Many debt relief companies and agencies promise to provide results, but don’t deliver. While there are certainly legitimate enterprises offering help for those in need of debt relief, many do not do as promised. Often payments are not made to creditors, there are hidden fees and no protection from lawsuits. Scams can sometimes occur as this story suggests. Sometimes the debt relief company or agency becomes yet another creditors piled on top of the rest of your debt.

The debt relief industry, not taking into account bankruptcy practitioners, is a multi-billion dollar industry. Many times, too, the debt relief companies and agencies are owned by the very creditors your are seeking to suppress. A common scenario is when you contact a creditor, say a credit card company, and convey a concern you have with your debt, interest rate, minimum payments or a host of other potential problems. They can refer you to a debt relief company or agency that, surprise, is owned by the same

Sacramento Bankruptcy: Donald Trump Filed 4 Times (Don’t Be Deterred by a Supposed Bankruptcy Stigma)

Bankruptcy is a powerful tool to eliminate or reorganize your debt. When your debt is beyond your ability to repay, bankruptcy can be a way out.

Individual debt relief is no different than a business filing. The point is to pay what you can and eliminate what you can’t. Business filing are done for the sake of the enterprise. Personal bankruptcies should be viewed in the same light. Though the enterprise in a personal filing is self, the concept of debt relief is the same. As Donald Trump declared in response to his business interests filing bankruptcy 4 times, it is “smart”. See for yourself his bankruptcy story.

Bankruptcy law allows you protection from your creditors. Don’t be dissuaded by a supposed bankruptcy stigma. Filing bankruptcy in a business setting is seen as strategic and financially wise. Personal bankruptcy should be perceived the same. If you have the legal opportunity to eliminate your debt or dwell on your inability to repay it, choose the former rather than the latter!

Sacramento Bankruptcy: Credit Card Debt

Credit card debt is one of the most common forms of debt for bankruptcy filings in the Sacramento region.

There are a number of reasons credit card debt can cause bankruptcy. The ease of ability to obtain credit card debt is first factor to consider. Often consumers are bombarded with credit card applications, cash advances and debt consolidation offers. Rarely are these offers solicited.

Once the credit card companies obtain your business, they continue to encourage further credit use and, in so doing, foster further debt. If the debt with one credit card debt becomes beyond the ability to repay, at least realistically, other credit card companies are alway there to “rescue” you financially with more debt. Low introductory interest rates, promotions and teasers to draw you in are part and parcel of credit card marketing strategies. This strategy is particularly so amongst younger americans as this study suggests. When the low interest rates and payments expire, consumers are often left with only more debt. Soon robbing Peter to pay Paul can become a lifestyle.

Credit card companies have an obvious interest in extending credit: profit. Loaning money is one of the most profitable businesses