Bankruptcy Reader

By Priya Jestin

First things first — you cannot actually file a bankruptcy online. It would be really nice if you could complete such a painful task in the privacy of your home. But there are several services that you can avail of online. Quite a few sites offer services that simplify the process of filing bankruptcy without an attorney. These sites allow you to prepare all the forms online and then print them out to file with the bankruptcy court. You can even download the forms or hire a paralegal to help fill out your petition online. Some of these sites include: <.p>

• BankruptcyFormProcessing.com
• Rapid Law
• JurisCounsel.com

Whichever method you choose, once you are ready; you’ll have to file the actual petition with your local federal bankruptcy clerk. A word of advice: you cannot get any legal advice from these Online and paralegal bankruptcy petition preparers — they are barred by law from providing such advice.

By Priya Jestin, Staff Writer

One of the best things about filing for bankruptcy is that your creditors will stop harassing you. By law, once you have filed your bankruptcy documents, creditors must desist from any action against you. They cannot initiate or continue any lawsuits, wage garnishees, or even make telephone calls demanding payments. Secured creditors such as banks holding, for example, a lien on a car, will get the stay lifted if you cannot make payments.

Another thing you need to know about bankruptcy is that your spouse will not be affected by your bankruptcy if they are not responsible for any of your debt. And finally, Chapter 7 filings are public records. However, under normal circumstances, no one will know you filed for Chapter 7. The Credit Bureaus will record your filing and it will remain on your credit record for 10 years.

By Priya Jestin, Staff Writer

Do you live within your means? Not if you are American. It is so easy to just slide down the debt hole and it’s only when you are really and truly bankrupt does the reality strike home. Most people don’t seem to realize that they are regularly spending more than they earn and thereby creating a situation, which will eventually degenerate into heavy debt and bankruptcy.

If you fall into this category of people, then the first thing you need to do is admit to yourself that you are facing a serious problem. Next, try to find ways to manage your expenses and control your debt. This shouldn’t be a tough task as there are enough sites on the Internet providing tips on how to reduce your debt burden. And if these are no help, you can always consult a debt counselor.

By Priya Jestin, Staff Writer

Remember that song “To everything, turn turn, turn, there is a season…” (Forrest Gump) one of my all-time favorites and well, it seems a lot like one of those ‘life’s philosophies — simple yet absolutely true’. Don’t worry we’re not turning into a music blog — just wanted to bring in that bit of philosophy that there is a time and place for everything.

So if you are up to your eyeballs in debt and have tried every possible trick in the book to get out of it, what do you do? Declare bankruptcy of course, you’d say — that is if you are not a woman. What’s it with women and debt. You have absolutely no problem getting into debt but have a huge problem admitting that you have a problem?

And no, I’m not the one saying that. According to Consumer Credit Counselling Service (CCCS), a leading debt advice charity in the UK, thousands of women who are heavily in debt are refusing to file for bankruptcy even when it is their best option. Why? Because they don’t want the perceived stigma!

According to the charity, more than two thirds of people who chose bankruptcy are men while bankrupt women cling on to their false hopes. It is good idea to want to pay back your loans but it doesn’t help if you are going to kill yourself doing it. So I guess this is one area where the men seem to have got it spot on.

By Priya Jestin, Staff Writer

The state of New York doesn’t seem too happy with the New York Racing Association’s request for protection under Chapter 11 bankruptcy. It has filed a motion in federal court to dismiss the request because NYRA is not eligible to be a debtor under the bankruptcy code. The basic point here is that NYRA is supposed to be an "instrumentality" of the state and a "public agency" and hence, is not eligible to seek protection.

NYRA, a nonprofit company formed in 1955 has even sued the state after filing for bankruptcy. Its contention is that the association was insolvent in part because of the state’s failure to provide loans that had been approved by the legislature. Now, that’s what I call a Big Fight. Wonder if the people who work for the state and the agency are not appointed for the benefit of the state. So why should they be bickering among themselves?

If you want a more in-depth report, you could check out this ESPN story.

By Priya Jestin, Staff Writer

What’s with the church and me? Bankruptcy of course!! Sorry for getting off track. So, getting back to the churches and molestation cases, latest news has it that the Spokane Catholic Diocese has agreed to pay at least $48 million to people molested by priests as a part of a deal to emerge from Chapter 11 bankruptcy protection.

The plan still needs to be approved by U.S. Bankruptcy Judge Patricia Williams and the victims of sexual abuse, who are considered creditors. The Spokane diocese is one of four across the country that have been unable to withstand the tide of abuse claims and filed for bankruptcy protection. $20 million from six insurance carriers would finance the settlement.

Another $18 million will come from the sale of the bishop’s office building and other assets and contributions from other Catholic entities. The final $10 million will be got from the diocese’s 82 parishes.

In addition to the monetary part of the deal, Spokane Bishop William Skylstad will also have to personally visit each parish where children were abused to urge parishioners to come forward with claims of abuse. Skylstad will be required to send letters of apology to victims or their immediate families, to publish the names of all known abusers, allow victims to publicly address the parishes where they were sexually abused and to publish their stories in the diocesan newspaper.

I just stumbled on this bit of news and it was so interesting, I just had to share it with you guys. Did you know that New York City came REALLY close to bankruptcy just a little over 30 years ago? Sounds phenomenal doesn’t it? According to reports, the margin between solvency and default may have been paper-thin.

This happened in 1975 after the Ford administration rebuffed its appeals for help. A statement by Mayor Abraham D. Beame was drafted and typed and ready to be released on Oct. 17, 1975, if the teachers’ union did not invest $150 million from its pension funds in city securities. Nytimes.com reports:

“I have been advised by the comptroller that the City of New York has insufficient cash on hand to meet debt obligations due today,” the statement said. “This constitutes the default that we have struggled to avoid.” The statement, which pointedly invoked the comptroller, Harrison J. Goldin, a sometime Beame adversary, went on to say that the city had applied for and obtained a court order to preserve its assets from creditors.

Read more: When the City’s Bankruptcy Was Just a Few Words Away

– By Priya Jestin, Staff Writer

It’s a happy new year… or is it? American consumers are still reeling under the impact of too much expenditure and not enough income. Fuel prices have come down, but that’s not enough to lower costs. To compound problems, people are still losing jobs, interest rates are still not reasonable enough; credit card companies are breathing down debtors’ necks; and strict laws mean it’s not easy for you to declare bankruptcy.

So do you feel like you are in a whirlpool with no avenue for escape? If it makes you feel any better, there are millions more who are suffering the same predicament as you. By following a few simple tips, you can create a financial strategy to help you get out of this financial mess.

One of the first things you need to do is repay all the debts you can. Try creating a payment plan for credit cards so the repayment amount doesn’t mount to unbelievable rates. You can also consider other options like debt resolution to help you get out of debt.