Bankruptcy Leaves Many Homeowners And Investors Accountable For Empty Homes

If property owners, landlords and real estate investors believe they can file bankruptcy and leave their houses behind with out a worry, they ought to think again. Bankruptcy wont' let property owners off the hook for maintenance along with other real estate liability.

Take notice that personal bankruptcy is not that easy but company bankruptcy is a whole lot simpler. With a lot of techniques like pre pack liquidation, administration and insolvency, companies hardly face that much trouble really. Another client base for real estate servicing businesses, like foreclosures cleaning businesses and lawn care companies, is fast-becoming homeowners like these -- those who have surrendered their own houses via bankruptcy, but who have not yet been foreclosed on by their finance companies. Read on to learn more.

Consequences for Homeowners and Investors Walking Away after Bankruptcy

What are the effects when a homeowner or landlord walks away right after filing bankruptcy? The consequences can be new debt owed by means of county fines for property neglect, and worse, new legal responsibility in the form of law suits if someone will get hurt on the property.

The municipalities issuing property violation penalties will fine the property owner of record listed with their county office. And until a foreclosure gets the owner's name off the record, the bankruptcy filer will still be on the hook.

What Good is Bankruptcy if the Landlord or Home buyer Still Owns the House after Bankruptcy Discharge

A bankruptcy and successful discharge means that homeowner is absolved of having to pay the mortgage debt. It does not excuse them from property upkeep, taxes, homeowners' organization fees, and similar responsibilities, for the house in question.

When the lender, finance company or mortgage company forecloses on the property, the home buyer will no longer own the home.

Client Source for Foreclosures Cleaning Business Owners Another client source for real estate service companies similar to foreclosure clean-up business services and yard and lawn maintenance companies is home buyers and landlords who have (1) gone through a successfully discharged bankruptcy, but (2) have not experienced a successful foreclosure.

Once property owners realize they are still the liable parties, they frequently move back in and also live for free until the lender foreclosures. Or, they rent out their homes to cover property maintenance costs and prevent vandalism, crime and harm that occurs due to a home sitting empty.

The homeowners and landlords usually seek to hire home maintenance as well as foreclosure cleaning business services for lawn care, home repair, debris and hauling, and similar foreclosure cleanup duties, to get their homes in shape for move-in or for the rental market.

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About Corporate And Business Bankruptcy Attorney

Almost all companies dealing with financial difficulties turn to a corporate bankruptcy attorney for advice. Making a decision on whether to file for a bankruptcy petition is a complex issue. There are numerous issues you need to think about such as if you want to wind up company and liquidate all the assets by filling a bankruptcy petition or if the management wants to stay in business, keep the company assets and also reorganize its debt. Take note that, their are many methods to solve company bankruptcy. Methods like pre packs or even pre pack insolvency. These methods are really that effective for insolvent companies. When an organization or a company needs a corporate bankruptcy attorney, the owners have to be familiar with the law firms that represent business organizations when experiencing financial hard times in order to determine which law firm would certainly best represent the needs and interests of the company. Since bankruptcy petitions are usually among the most complex areas of law across the globe, companies have to hire expert corporate bankruptcy attorney who can help the company find its way through the legal landmines.

Indeed, when filling the bankruptcy petition, the business lawyer is required to handle tax law, contract law, real estate law and corporate law. If the winding company owns real estate or other assets the importance of hiring a corporate bankruptcy lawyer becomes significant in order to preserve all these assets. Once the company has filed for protection under the bankruptcy law, the bankruptcy court administers a legal protection from creditors. Nevertheless, the paperwork for bankruptcy filling must be done properly by the corporate bankruptcy attorney so that the court will not refuse to hear the bankruptcy petition, otherwise the company will be left available to more actions from the creditors. During bankruptcies, the company devises a strategy to handle its debt while it continues doing business to be able to raise profits and thereby adhere to debt payment plan as agreed to in a court proclamations. Decline in company sales can lead to a business accumulate debts it cannot repay.

A corporate lawyer examines and advises the company on how to approach the court. Corporate lawyer helps the company owners to file emergency bankruptcy in situations where the creditors are bothering them. A corporate lawyer advises the organization she or he represents on how the laws are drafted in the country in which the company is located. This is an important part of representation, therefore , a corporate lawyer needs to practice in the state or country in which the petition will be filed. The corporate lawyer arranges for any debt adjustment plan to repay the debts that the company can be able to handle with its current financial situation. Some of debts are discharged leaving the company with less financial burden. Hiring a corporate lawyer is a major undertaking which requires consideration before taking it.

Benefits of hiring a corporate bankruptcy lawyer:

♣ The corporate bankruptcy lawyer is able to assist you with other choices to filling a bankruptcy petition such as debt restructuring and financial workouts.

♣ The corporate bankruptcy attorney handles all the company paperwork and leads the negotiation with the company creditors to get an amicable solution.

♣ The corporate bankruptcy lawyer handles all the harassing phone calls from the company creditors instead of the company managers.

♣ The corporate bankruptcy lawyer handles the company's debt resolution or arrange for debt adjustment or repayment plan thus getting some of the company debt to be lowered or discharged all together.

♣ Finally the corporate bankruptcy lawyer focuses on the legal issues as the company management concentrate on running the day-to-day affairs of the company; also the attorney is in charge of preparing all the essential paperwork and represents the company within the court.

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When Businesses File For Bankruptcy

The economy hasn't just been tough on consumers, but businesses are also having difficulties more than ever before to maintain profitability and keep their doors open. With so many sought after companies taking the plunge into bankruptcy, consumers are wondering just what this means for the fate of a business.



Business Bankruptcy Fundamentals

As with personal bankruptcy, businesses have two choices to fix their debts in bankruptcy. A Chapter 11 filing allows for debts to get reorganized and repaid through a combined payment plan, similar to those of a Chapter 13. A business Chapter 7 is a type of elimination bankruptcy in which assets are liquidated to satisfy financial obligations. Always consider other options such as pre pack administration, liquidation and insolvency. These techniques are very useful.

Chapter 11 cases tend to be the first line of financial defense for businesses that wish to stay in operation. By keeping this company in operation, businesses hope to be able to negotiate a debt resolution plan that fulfills creditors. In some cases, a business may liquidate some assets, sell off ownership shares, or even auction off the entire company in a sale in order to repay creditors. Generally, a Chapter 11 case keeps the majority of the business interests in tact while resolving debts. If the case is successful, the company can resolve its debt liabilities and regain profitability.

A business Chapter 7 case is sought for companies that have no chance of restoring future profitability or do not wish to remain in operation. The main source of debt satisfaction in such cases is asset liquidation, in which all remaining assets are sold to pay for debts to creditors. The company owners will give up their share within the company and ownership rights are terminated. When a company advertises they may be "going out of business", they might be pursuing a business Chapter 7.

From Reorganization To Liquidation

Although many big companies and major industry players made headlines in recent years for their bankruptcy filings, it doesn't necessary mean bad things. In fact , many of the high profile Chapter 11 cases have been involved with successful exits from bankruptcy, possibly leading to better business operations and improved consumer services.

But not all who enter Chapter 11 will prevail and some have wound up converting into business Chapter 7 cases instead. This is typically seen when a company was not able to negotiate a deal in Chapter 11 or unable to find additional sources of income or revenue as part of their filing. A lack of investors and limited opportunities for the partial sale of possession or resources has lead many companies from reorganization into liquidation.

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A Few Bankruptcy Basics

Many people struggle with their finances each day, and many more will probably be subject to some tough decisions in the coming months. While no one sets out to become financially insolvent, it occurs to the best of us. Even big companies get hit by it, good thing they have a lot more options available such as pre pack liquidation, administration and insolvency. But for normal people, job loss, separation and divorce and medical illness can force even the most financially savvy person into the need for bankruptcy. Luckily, filing can give anybody a brand new start.

Is It Right For Me?

Although there isn't a hard and fast rule for knowing whether bankruptcy is the right choice there are a few signs it could help. Are you more than Three months behind on multiple debt accounts? Have you received collection letters or even notifications of wage garnishment? Is your home at risk of foreclosures? Do you owe more in debt payments than you have in disposable income each month? Do you borrow from one credit source to pay for yet another debt account? If you answered "yes" to any of these queries, it may be time to seek counsel from a bankruptcy lawyer.

Which Type Is Best?

The most frequently sought after type of bankruptcy is Chapter 7. Offering debt resolution through little to no out of pocket costs to the debtor, Chapter 7 is yet a fast process that can have you debt free in about 6 months. However , Chapter 7 bankruptcy includes some additional considerations.

First, not everyone qualifies for Chapter 7. In order to be eligible, you have to pass a means test; which examines your income from the median income level of your state. If your income is less than or equal to this amount, you may be qualified to file. If your income is more than this amount you will not be eligible to file, but may file for Chapter 13 as an alternative. Also, Chapter 7 cannot resolve all debts without risking possession of particular assets. Your house and car may be at risk of liquidation if you do not continue to make payments. Last, Chapter 7 can have a more significant impact on your ability to secure future credit. Whilst filing for bankruptcy doesn't damage your credit, lenders are more hesitant to lend to someone that didn't fulfill their debt obligations.

A lot of people assume Chapter 13 is a second-rate type of bankruptcy, but the reverse is true in most cases. Filing for Chapter 13 might take longer to complete, but the implications for future credit and loans can be far better.

Contrary to Chapter 7, almost anyone can be eligible for Chapter 13 bankruptcy. Because there is no income restriction, Chapter 13 can be a better choice for those with higher incomes. Furthermore, since payments will be made to creditors through a series of affordable payments over the course of three to five years, debts will probably be considered "repaid" rather than "satisfied". This minimizes the implications of future credit and loans.

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Should I Delay Bankruptcy?

The actual bankruptcy process comes with many decisions, some of which are difficult. For people it can be devastating but for companies it can be a lighter since they have many solutions like pre pack insolvency, administration and a whole lot more. Although it is a fantastic tool of debt relief, it’s not necessarily the best choice for everybody. If you are considering filing for bankruptcy, think about a few things before you file your case.

Important Factors

First, ask yourself if you are truly financially insolvent. In other words, are you currently unable to meet your debt commitments to one or more creditors? Have you missed a payment because you don’t have the money to cover the expenses of making a payment? Answering "Yes" to these questions could be an indication you are financially insolvent and should seek guidance about your debts. If you do not feel you fit this category and are confident you can catch up on missed payments quickly, bankruptcy may not be for you.

Next, assess the status of your assets. Do you have any kind of secured assets that could beat risk of repossession or foreclosures if you default on your payments? Have you already received a notification of repossession or foreclosure? Answering "Yes" is a solid indicator that you need to consider bankruptcy, which can stop any impending, or presently, active liquidation proceeding. Answering "No" to either of these questions might mean that you can resolve your debt outside of bankruptcy, such as directly with your lender.

Also, take a look at your latest financial history. Have you paid off any debts in the last six months? Have you accumulated new debts in the last 3 months? Has your income level increased in the last few months? Answering "Yes" to these questions could mean you need to hold off on filing for a couple of months. Why? Because changes to your debts, assets or even income immediately preceding a filing could influence whether you are eligible for bankruptcy or be viewed as suspicious. Answering "No" to these questions is a green light to go onto the last consideration.

Last, make sure you have reviewed all of your options. There are numerous ways to resolve debts, such as through credit negotiations, debt consolidation and debt settlement. It's important that you simply consider the risks and benefits of each of these solutions against your financial scenario before pursuing bankruptcy. If you have yet to consider any of these options, do so before you file for bankruptcy. Seeing a bankruptcy attorney can help you determine whether bankruptcy is the best option for your scenario.

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Filing For Bankruptcy Can Be Quite Liberating

Is that far too strong of a claim? Bankruptcy is something that we should never have to go through in life. Especially if you own a company that is struggling with its debts. Good thing there are pre pack administration to save such businesses. We don't think so. It appears that a lot of the people who are filing for bankruptcy today get a bad rap for doing this. However , there are two things to bear in mind. One, very few people live their lives with the intention of one day filing for bankruptcy. Two, the bankruptcy process is not an easy, free pass.

However , the process is tremendously rewarding for those who are finding it difficult to pay their debts. With Chapter 7 you can get a clean slate. With Chapter 13 you can get shelter and restructure your debt without losing your resources. If you're in serious financial problems, these are two great options to think about. Let's go through a few of the uninformed claims people make regarding bankruptcy.

Debunking The False Myths

The most popular myths is the fact that you'll be totally broke after filing. Even with Chapter 7, through which your resources are liquidated, this is simply not a true claim. Anybody who believes this has clearly never been through the bankruptcy process, and is certainly no bankruptcy attorney. When you file, you are seeking refuge, a safe haven. The courts are not going to throw you out on the streets with no possessions in your name. You will retain essential assets.

Another popular myth is that you'll never get a decent job. Any good bankruptcy attorney should be able to dispel this myth for you. After you are through filing for bankruptcy, yes, ıt'll appear on your credit report for a few years. However , when an employer is looking toward you, it is highly unlikely they will pull up your credit report. They might pull up your credit score, however your score won't reveal your previous state of bankruptcy.

The third popular myth is that you'll never get credit again. Absurd. As you have likely learned, credit card companies are all too eager to get some credit in your hands. After you file, you'll probably be amazed how fast the credit offers start filling up your mailbox. Give it a while... you will see! The truth is, credit card companies are raking it in. There are very few people they will not solicit their services to. You may have to spend some time proving yourself before you start getting good credit again, but it will occur.

If you are feeling like you're in over your head with debt, consider filing for bankruptcy. Speaking with a bankruptcy attorney is one of the best ways to get started!

Thriftiness Tips From Your Friendly Neighborhood Grocers

The art of home economics which generations of students learned at school to manage a household budget is setting up a return. This time, however, classes are being carried out not in but in nearly every store in the nation.

Though it may appear counterproductive for stores to teach shoppers to control their spending, several store chains decided that offering such knowledge can generate loyalty and keep clients from bringing their business to cheaper competition.

Classes Going On

The Stop & Shop store chain is providing "affordable food summits" where shoppers are instructed how to chop down their grocery costs. Home Depot gives classes on energy conservation to cut down bills. Wal-Mart Stores employed a "family financial expert" who conducts online chats to educate thousands of shoppers how to lay aside money for college or university, burn away debt and sell a house.

There was once a time when schools taught domestic survival skills like how to maintain a growing family on a shoestring budget. But in an era of high profits and full employment, inexpensive credit and evolving social standards, several classes were reprogrammed to teach more timely topics.

"There's an entire generation that is never really had to know how to stretch the value of a dollar, " said Ellie Kay, who gives out financial guidance for Wal-Mart.

Going Back To Basics

Only a few can remember the last serious recession just a quarter of a century ago. During the prosperity years, shopping on a budget was looked down upon. Even average wage-earners enjoyed dining in restaurants. Many small grocery stores went upscale to attract upscale clients.

With the sinking economic climate today, many families are forced to return to basics. People are marching to wholesale stores and discounted marts, settling for more affordable items, choosing store-branded products and shopping trips are quite few.

71% of customers are more often dining at home nowadays and eating out less frequently, according to statistics from the Food Marketing Institute, which made an online survey of more than 2, 000 shoppers. The survey also discovered that 67% of customers bought less luxury items and 58% consumed more leftovers.

Grocery Stores For Classrooms?

Grocery chains started to assume the responsibility of educating customers how to prepare low-budget meals while still maintaining persistent focus on value.

"We're educating people, " said Jim Dwyer, executive vice president of strategy and business development for Stop & Shop. "Even in a tough economic time, there's an opportunity to still put the right food in front of your family. "

To make the public aware of thriftiness, food executives, teachers and economists advice consumers to surf the Internet for discount coupons, stick to shopping budgets, cook larger portions and freeze leftover food, shut off appliances when not in use and motoring tips to conserve fuel. People should also be educated on ways to counter bankruptcy. Techniques like pre pack liquidation, administration and insolvency. These stuff can help out in a big way.

These conservation advises is not specific to any one store but , rather, are pointing to money-saving products that the stores may carry. The purpose is to earn the gratitude and trust of clients and ensure that when they do shop, it will be on the store that provided the useful info. "So what they are attempting to do is provide value and get credit for the value they are providing. " said Willard Bishop, who runs a grocery store consulting firm.

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The Method Of Administration

Particularly in the current economic climate many businesses are becoming insolvent. Among the potential results of this will be the process of administration. In recent times perhaps the most notable companies generally entering administration are football clubs. But how does it work? And what effect does it have on the company?

Administration is an alternative, which can eventually lead to recovery, available to businesses which become insolvent, you can also try out a pre pack insolvency. It is the process where every aspect of the business is managed cautiously, with the overall objective usually being to rescue it and the administrator attempts to get a better result for that creditors than if the company was wound up. Upon entering administration the business is protected from its creditors till a restructuring plan by the process. When a company gets into administration they must employ a licensed insolvency practitioner to do this and they will be designated by a court.

The actual aims of administration vary depending on the administration proposal made. The proposal varies depending on the business's individual circumstances. It's a statement which sets out the administrator's appointment, the circumstances of the administration and details of how the administrator plans to deal with these circumstances and the outcome of this. The statement will usually end with a statement of the company's general affairs and include an invitation to creditors to show up at a follow-up meeting.

The creditors meeting should be held within 10 weeks of the date the business entered administration. At the meeting the administration proposal is considered, it can be accepted, rejected or modified. If rejected then the administrator is required to notify the court who will issue further directions. If accepted, or accepted with modifications the administrator will report to the actual court the final outcome of the meeting. The administrator will then manage the company's affairs in accordance with any agreement reached.

Administration has its advantages and disadvantages. On the plus side it's a means of safeguarding the business from its creditors since they cannot pursue their debts until the process is complete. It is flexible allowing the administrator to appoint managers to run the company and prevents director's being accused of wrongful trading since the business is taken out of their own control. Nonetheless, on the downside the expenses of the process are very high; directors of the business might be removed by the administrator and the public nature of administration implies most stakeholders of the business will be aware about the administration which could generate negative publicity.

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The Truth Behind Some Credit Card Urban Myths

You have probably heard and even believed a number of them, but acting on credit card myths can cost you more financial harm than good and even trash your credit rating. Take note that if you are in debt which is beyond your control, take immediate steps to recover from it. You can try out pre pack administration or any other form of recovery. Trust me when I say that bankruptcy or being in debt ain't that good for you. Anyway, here are some of the most widely-circulated credit card urban legends to keep a cautious eye out for.

Credit Card Myth # 1

Myth: Writing "See ID" or "Ask for ID" instead of your signature on the back side of the card will deter card thieves and free you of liabilities should it be stolen and used. The "See ID" sign reminds salespersons to check on the name on the card from the person holding it.

Fact: An unsigned credit card is regarded invalid. Furthermore, many salespeople hardly ever check for signatures. As a result, they are prone to miss "See ID" within the card's signature space.

Will writing "See ID" free you of liabilities when your card be stolen and used? Lauren Zeichner, an attorney with Consumer's Union says no . Zeichner stated, "... no matter what's on the back, you are only liable for up to $50 charged when a card is stolen, and several companies waive that for their card holders. Writing 'Ask for ID' might encourage a retailer to ask for your identification, but it has no legal bearing. "

Credit Card Myth # 2

Myth: The American Express card offers no credit limit, meaning you can buy everything you want. Years of effective ad campaign have discreetly imbedded in your subconscious the message" No preset spending limit. " So after activating your AmEx card, you can go buy your self the latest Ferrari or Porsche product. There's no spending limit, correct?

Fact: American Express no longer releases the card types that allow you to incur plenty of debt, provided you are able to pay all of it every month. If you look closely at the card info, the words "no preset spending limit" in many cases are followed by an asterisk (*). The fine print says that the phrase "... does not mean limitless spending. "
"There is no preset spending limit. It's dynamic. It can change based on your financial condition and how you use the card, " says Mona Hamouly, an American Express spokeswoman.

Credit Card Myth # 3

Myth: Paying more than you owe can boost your credit card rating. In addition, using just a small percentage of the available credit or keeping a low utilization ratio improves your credit rating.

Fact: Roslyn Whitehurst, a spokesperson for the credit bureau Experian says "Even though you may be below zero on an account, it is assumed that's a temporary situation. Whether you've got a credit of $100 or perhaps $1, 000, it still exhibits as a zero balance for scoring purposes. "

Credit Card Myth # 4

Myth: You could improve your credit card rating by utilizing your debit card responsibly. Since credit and debit cards, both holding AmEx, MC, Visa or other logos, look identical, these are treated by retailers in almost the same exact way. Hence, both cards can affect credit scores.

Fact: "Having a bank account with a debit card and maintaining it effectively shows that you're a responsible consumer, " says national priorities director for Consumer Action Linda Sherry in Washington, D. C. "But it is not taken into account... " in credit ratings, she further states.

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Advance Happy Halloween.

Just wanted to get into the Halloween Spirit. Made this from pictures in the internet to show that even in the world of business, there is still time for events. Its not always about money and deals. Sometimes a little bit of fun is very welcoming. Again advance Happy Halloween to everyone viewing my blog.