Bankruptcy

If you are one of the fortunate few who is receiving a tax refund this year, your mind may be filled with wonderful possibilities on how to spend it; however, for Americans who may be in financial trouble, a refund may allow a person to finally file for bankruptcy as a way to resolve monetary difficulties. According to The Huffington Post, new research conducted by economists at Columbia University, the University of Chicago, and Washington University in St. Louis shows bankruptcy filings increase after tax refunds are received. The reason for this is the increasing costs associated with filing for bankruptcy.

The research revealed that the total amount of bankruptcies in 2008 rose seven percent after Americans received their tax refunds, as most may not have been able to afford bankruptcy filing until Uncle Sam issued their refund. Filing for bankruptcy hasn’t always been as expensive, and the rise in filing costs can be attributed to the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act. This act increased the legal and administrative fees needed to file for bankruptcy by an astonishing 60 percent, and it also required individuals to pay for their own credit counseling before filing.

The authors of the study basically concluded that these increased fees prevent households that are low on cash from filing for bankruptcy. Total bankruptcies rose two percent after tax refunds in 2001, but the seven percent increase in 2008 is more than a threefold increase according to the report.

The costs associated with filing bankruptcy can be very expensive, so seeking the help of a knowledgeable Tennessee bankruptcy attorney is essential so that your case will be efficiently handled in order to keep the costs at a minimum. At Massey & Associates, PC, we have years of experience helping TN residents who are filing for bankruptcy and will work with you through your entire case, answering any and all questions along the way. Please call (423) 697-4529 to discuss your bankruptcy case with a member of our legal team.

A dismissal in a TN bankruptcy case commonly means something has gone wrong in the case, such as a failure by the debtor to comply with the Bankruptcy Code, and the bankruptcy case as a result is going to end prematurely and without a discharge. A creditor may win under these circumstances because the debt remains due and still owing. As a Tennessee bankruptcy attorney, Gary Massey knows how complex and unique each bankruptcy case is and how essential it is for each client to fully understand their legal rights after filing for bankruptcy.

With this in mind, the following is information regarding bankruptcy dismissal procedures in the state. In TN, the United States Bankruptcy Court for the Eastern District of Tennessee oversees all bankruptcies and rules on dismissals.

1. Voluntary Dismissal: The Court does not allow individuals to dismiss their own Chapter 7 bankruptcy case, ruling in 2009 and 2010 that it is not fair to creditors. A person can try, however, to file a motion to dismiss with the court. By contrast, one can dismiss his or her own Chapter 13 bankruptcy at any time with a few minor exceptions, which is simply a matter of submitting a request to the court.
2. Dismissal by Trustee: An involuntary dismissal may occur for any of the following reasons: if a person fails to pay his or her Chapter 13 payments; if all of the required paperwork is not filed; or if the trustee or one of your creditors finds out that you misrepresented some fact in your petition. Usually, a warning is given allowing an opportunity to correct the mistake; if the effort fails, the case will most likely be dismissed by the judge. Avoiding and correcting mistakes requires an experienced attorney who cares about your financial condition.

There are various options a person has in the event of a dismissal, but in addition, there are also risks associated with this. To ensure a successful outcome in your bankruptcy case and a bright financial future, Chattanooga bankruptcy lawyer Gary Massey and the legal team of Massey & Associates have the knowledge and skills needed to help you. To schedule a free consultation regarding your case, call (423) 697-4529.

A new study shows that so-called “bankruptcy reforms” made by Congress have led to much higher costs for those filing, according to U.S. Politics Today. In 2005, Congress passed a bankruptcy reform act which made a number of changes to the bankruptcy code and aimed at tightening loopholes, setting higher bankruptcy standards, and eliminating bankruptcy abuses. Experienced legal professionals, however, are stating that the bankruptcy code changes are viewed largely as cumbersome as they have created many needless costs.

Before the 2005 changes, the average cost of a Chapter 7 bankruptcy case was $900. The study shows that this figure has drastically increased by more than 55 percent, costing $1,399 at the end of 2011.

Why did the reforms have such a significant effect on bankruptcy expenses? For one, hiring an attorney is one of the major costs of filing for bankruptcy, and with the official 2005 changes and the complicated new laws, the bankruptcy process takes more time for filers and their lawyers, which adds up to more money. In addition, a number of systemic costs were added by the bankruptcy act, including new trustee fees, filing fees, and fees required for credit counseling and debtor education.

The 2005 bankruptcy act means two major things for consumers considering bankruptcy. First, at the outset of the bankruptcy process, a filer will have to pay a few hundred more dollars. Also, filers should be very selective when it comes to choosing their bankruptcy attorney, as it is important they have the specialized knowledge needed to help you through the complex new laws with as little expense as possible.

With higher bankruptcy filing costs and complicated new laws, any TN resident considering filing for bankruptcy should seek the help of a knowledgeable Chattanooga bankruptcy lawyer. At Massey & Associates, P.C., we are committed to aiding those filing for bankruptcy and will help you arrive at a satisfactory resolution in your case. To see how our legal team can help you, call (423) 697-4529 for a free case evaluation.

Love is indeed many a splendored thing, but financial woes can unfortunately be one of the issues that can cloud the proverbial sky of even the most stress-free relationship. In order to help couples everywhere avoid future financial spats, Creditcards.com interviewed relationship and financial experts to come up with practical solutions to finance-related feuds that can put a strain on a happy twosome. The following are three common problems and their solutions:

1. Lying about purchases: Lying about money and purchases you may have made, i.e. rounding down what you spent or neglecting to tell your partner all together, is risky to a couple’s financial health and can cause feeling of distrust and betrayal.

Solution: Have a date to discuss your financial needs and wants, and talk about specific things like budgets and spending habits and limits. Setting aside date time will show that you are both on the same team and will allow extra time to chat, instead of doing it late at night or before bed. Also, check in frequently with your mate.

2. “You don’t make enough/I make more money than you”: How much each person brings home can be a hot button issue. Partners who may make more and brag about it may be harboring resentment that they are largely the one keeping things afloat, and can belittle a partner.

Solution: For those that make more and may want to point it out, look at the other contributions of your mate (such as running errands or doing household work) to see the roles each of you play and how they complement each other. If one of you could be doing more in a certain area, create a plan to reach that goal together.

3. What you see as a “want” your partner sees as a “need”: Something one-half of a pair sees as a luxury, the other views as a necessity, like vacations or new appliances/electronics. A partner who is always satisfying their “wants” can wreak havoc on a relationship, creating debt that can lead to extra money problems.

Solution: The “matched pairs technique” can help. Each person makes a list of things they “want,” then the couple compares to see which items match up; anything that matches can be a goal to work towards to purchase, and unmatching items should receive less priority because they were not mutual. Create a “want” savings account to afford those little luxuries.

These sensible solutions to common money-related quarrels can help a couple avoid loosening any of the ties that bind a union. However, sometimes financial problems and overpowering debt can be too much to handle and become overwhelming, whether you are coupled up or not. If this happens, a skilled Chattanooga bankruptcy lawyer at Massey & Associates, P.C. can help eliminate debt and sort out complicated financial matters. To see how our law team can assist you, please call (423) 697-4529.

An article on Nuwireinvestor.com discusses a study that reveals excessive student loan debt has a very negative effect on the U.S. housing market as young people are usually first-time home buyers. The recent housing crisis has made Americans more determined than ever to cut down their home mortgage debt, and though a Federal Reserve Bank of New York report states home owners are doing a good job, the next potential threat to housing recovery and the economy in general is college students struggling with their student loan obligations. The Federal Reserve report states that the total amount of student loan debt in the U.S. was $867 billion as of the fourth quarter in 2011, suggesting this growing debt is a “loaded shotgun to the U.S. economy.”

The study reports that banks are only lending money to qualified borrowers, meaning prospective homeowners with excessive student loan debt are not high on financial institutions’ approval list. This will likely leave young buyers forced to go into rentals and locked out of the mortgage market, which in turn reduces the demand for “starter homes.” Basically, homeowners with growing families who want to move into larger, higher priced homes, will be in a bind, as there will be fewer people left to buy starter homes because younger consumers are unable to get approved for loans. In short, if the student debt bomb detonates, a good chunk of the housing market may go with it.

The average amount of student loan debt is at $25,000, a number which is unfortunately always rising. In addition, approximately 39 percent of bankruptcy attorneys have seen potential student loan cases jump an astonishing 25 to 50 percent in the past three to four years, indicating that young consumers and would-be homeowners with high student loan debt may need professional assistance. The Chattanooga bankruptcy attorneys of Massey & Associates, P.C. have the experience needed to help anyone facing financial difficulties obtain a positive outcome so that they can have a stress- and debt-free future. For a free consultation, call (423) 697-4529.

Unlike the more common form of Chapter 7 bankruptcy where the process liquidates an individual’s assets in order to wipe a heavy debt slate clean, Chapter 13 bankruptcy provides protection for individuals who are seeking additional terms and time to pay off debts. Simply put, when a person files for Chapter 13, he or she seeks to restructure debt with the goal of paying a portion or the entirety owed to creditors in the future, instead of liquidating assets.

One of the primary qualifications for filing Chapter 13 is that the individual must have consistent income to request alterations or reductions to loan rates in order to be approved. From start to finish, the process is monitored by court officials who must sign off on modifications of interest or repayment timing. With a qualified attorney, an individual filing for Chapter 13 creates a written plan that outlines the new terms of payment, which must start between 30 and 45 days after the case was filed. U.S. Bankruptcy Code provides a maximum of five years for debtors to pay back creditors under the new terms.

One draw to Chapter 13 for a qualified candidate is the potential to fully discharge from the plan if the remuneration is completed as outlined. Another possible benefit of Chapter 13 is that new terms of repayment can be made regardless of creditor approval. The only ultimate approval a debtor must obtain is from the court; however, creditors may voice protests during the process, petitioning the courts on certain items. For all these reasons, Chapter 13 bankruptcy cases can be very complicated. Qualified legal representation is imperative in crafting an advantageous plan, as well as navigating the rigorous court negotiations and fending off hungry creditors. If you’re filing for Chapter 13 in Chattanooga, call the Tennessee bankruptcy attorneys with Massey & Associates, P.C at (423) 697-4529 for a free and confidential consultation.

Many confuse bankruptcy as being synonymous with financial peril. While bankruptcy is a result of fiscal difficulties, it’s actually the legal savior that grants many individuals, families, and businesses new beginnings. It comes in many forms, but Chapter 7 is one of the most common and simple. It’s also referred to as “liquidation,” as resources are sold in order to pay creditors and eventually absolve debts.

Eligibility for Chapter 7 can be complex, and it’s dependent on income and expenses in relation to the qualification standards set by your state. Typically you must earn less than the median amount for a household in your state, and a required credit and budget assessment session is also mandatory for qualifying. In all cases, the process starts with a petition and continues to bankruptcy court. For the process you must be prepared to present detailed information on the following:

• Monthly living expenses
• All creditors and the amounts owed
• Employments and income
• Property and asset ownership

To protect those filing, bankruptcy law mandates that all creditors halt collection attempts as soon as an individual or business files. This is referred to as an “automatic stay,” and it also prohibits any creditors against filing fresh suits against the party filing. However, creditors can request that the “automatic stay” be lifted by a judge in certain circumstances, so it’s important to have strong legal representation. On chapter 7, individuals also have certain exemptions, meaning a certain value amount of property can not be sold by the bankruptcy trustee. For example, in Tennessee, a couple has a $20,000 exemption for personal property which allows many people to file and not lose any property.

Because of the intricate nature of Chapter 7, it’s essential to discuss your particular situation with a qualified attorney to ensure proper filing and protection. If you’re filing for Chapter 7 Bankruptcy in Chattanooga, contact the Tennessee bankruptcy lawyers with Massey & Associates, P.C. at (423) 697-4529 for a free case review today.

Banks are moving more quickly than in the past to enforce foreclosures, pushing the rate of foreclosures nationwide higher than before, according to a recent article by MSNBC.

The number of U.S. homeowners who were sent a default notice from July to September 2011 increased 14 percent over the number who received them between April and June 2011. According to MSNBC, the increase means that banks are now pushing to foreclose against borrowers who have not been able to keep up with their mortgage payments. This increase is the first since banks throughout the mortgage industry began having problems with foreclosures earlier this year, including foreclosing on property owners who did not actually have a mortgage.

An initial default notice is the first step down a path that may end in foreclosure. Most of the increase in foreclosure notices between July and September occurred in August, when the number of initial default notices sent was ten percent higher than it was in the following month.

Experts say that an increase in foreclosures may also indicate a turnaround is on the horizon for the housing market which has slumped significantly in recent years. As long as many potential foreclosures remain on the market, say experts, there isn’t likely to be a spike in buying, selling, or building. For the moment, however, there remain many foreclosed homes on the market that no one has purchased.

Foreclosure can be a scary process, especially when you have a family to consider. If you’re facing foreclosure or other financial trouble, the experienced Tennessee bankruptcy lawyers at Massey & Associates can help. For a free and confidential consultation, call us today at (423) 697-4529.