Smart Bankruptcy Guide

I recently bought several shares/stocks of a company in bankruptcy protection. Any chance of making profit?

Bought some "Delta" airlines. They are trying to come out of bankruptcy protection. IF they do…..will my shares become worthless, or can they potentially grow? (got them for UNDER 1.00)

Thank u!

(new investor)

depends on how the bankrupcy goes. The creditiors will take a lot of the equity just to cut thier debt holdings. If they take it all then the stock will be worthless. You are not investing here but rather speculating so should expect a good chace of losing. Investing is hard. Specualting is gambling but even less likely to win. Feel free to e-mail me if want some investment basics. yahoo mail this id.

Buying cheap stocks which company is under chapter 11 protectin and restructuring would be good idea?

I want buy basement price beaten stocks which is under chapter 11 and restructuring and hold for a while to see company come back. Stock is currently trading at 0.11 cent on Nasdaq.

There's usually a slim chance that those companies will come back. They will trade for a while on the Bulletin Board or the Pink Sheets. When they file for chapter 11 there is usually no equity left. Common stockholders are the last in line to get paid off. When the company reorganizes the stock will be canceled and become worthless. New stock will be issued in the reoganized company.

What are important FL bankruptcy laws and regulations to know?

This should tell you:

http://www.flmb.uscourts.gov/faq.htm

Is it a good idea to buy an engagement ring from Whitehall Jewelers since they are going bankrupt?

and having a huge liquidation sale. 60% of all solitaires sounds good to me, but I guess you would have no warranty since they are going out of business right? What do you think??

It's a good price…however you will not have any customer service. My engagement ring & wedding band is from Kay's every six months I have to have them inspected to make sure the diamonds are not lose, etc. If I miss an inspection and something happens to my ring they will not fix it.

So you will not have that service with a company that will not be there any longer. So it's a personal choice…if you need to save the money I would go for it.

Bankruptcy Issues

We begin with the creation of the automatic stay. The stay is automatically created at the time of bankruptcy filing.

The automatic stay is actually a unique feature. If a creditor attempts to collect from the debtor in any way after the bankruptcy was filed and the automatic stay was enacted, the court can undo creditor’s actions. For example, if a car was repossessed without bringing a motion to lift stay, that car, can be requested to be returned to the debtor. So let’s say you filed your case, your case has been filed, and all of the sudden one of the creditors that has security on your car, purchased money security interest, comes in and repossesses your car. Well that means you can go and ask the court to make the creditor return the car back to you, because what the creditor did was actually illegal, and the creditor can actually be punished for that. So, the automatic stay has some benefits and one of the actual benefits is that it allows you to stay in a house you are surrendering for almost a year.

Taxes and Bankruptcy

Now, let’s talk about taxes, taxes owed to the government that were accumulated within three years prior to the bankruptcy won’t be discharged. However, if you file your taxes then you can actually get your taxes discharged that were accrued prior to three years of filing. So, let’s say its 2008 right now. Taxes that you were supposed to pay in 2004, 2003, 2002, 2001…. as long as you filed them, can actually be discharged.

Not paying your taxes can have a significant consequence. For example, the interest rate can amplify the amount you owe significantly. In a couple of years you can go to actually doubling your debt. Now, once bankruptcy is filed the interest on the debt stops.

Personal Guarantees on Businesses

There are different kinds of bankruptcies there is the business and personal bankruptcy. A lot of people have small little businesses that went downhill and are actually bringing owners along for the bankruptcy. Of course if you have an S corporation it’s a different kind of entity and it’s not totally connected to the owner. Let’s say a debtor has an S corporation, a body shop or a restaurant, whatever it is, in order to actually discharge the business debt, some of the liens that are from that S corporation, some of the credit cards that are on that S corporation, you actually have to file bankruptcy for the S corporation itself. However, most S corporations and other businesses have loans that are also secured by the debtors themselves, by the owners of the S corporations and not only by the S corporation itself. These loans cause the owners of the S corporation and the S corporation to have to file bankruptcy together.

Most of the time lenders won’t give you a loan just for the S corporation knowing that you can easily just file bankruptcy under the S corporations without being liable for the rest of the loan. Therefore most of the loans are secured by personal guarantees and by the corporations themselves. In this scenario both the owner of the S corporation and the S corporation has to file bankruptcy and that’s the only way you’re going to get discharged from that debt completely.

David Siegel
http://www.articlesbase.com/law-articles/bankruptcy-issues-621957.html

The Secrets Of Mlm They Dont Want You To Ever Know

The Secret to making money with any MLM business is to find something you can get really passionate about.If you are totally convinced that what you are doing is not only helping you but helping hundreds or even thousands of others you will never lose your passion for sharing it with everyone who you have contact with.

There are a few vitally important things to consider before plunging head on into any MLM or networking business.I have a crtiteria that should be used as a guide to all aspects of viability,they are Company,Product,Management,Longevity,Publically or Privately held and compensation plan.

A Publically held company is always better as its much more transparent and open,i.e you can go online and see the companies figures and who is actually running it,they really can’t have anything to hide if anyone can get access to the financials of the company.With Private companies you have no idea how they or the management are performing, and most importantly the compensation plan.Some are better than others as some only reward those people who got in first and pay the most to them.Other plans spread this out evenly across thousands of people meaning you trully get paid what you are worth.Put the effort and hard yards in and you’ll get paid that,do just a little and thats what you ‘ll get paid.NOT MUCH!!

The best example of scrutinising the compensation plan is this:

There is only ever so much money that can be paid out to associates every week.If I were to ask you which of these is better I’m sure you’d all respond the same way.Would you rather have a 30% payout or a 70% payout ? pretty easy answer right ? Wrong and this is where so many people get taken for a ride.Let me explain here.Firstly if the company is paying 70% to its associates its not going to be around for very long,industry research has it that around 30-40% is the maximum a company can pay out for any sustained period without going bankrupt or having other financial challenges that threaten your income stream.And as there are many example of companies that have failed throughout the last 50 years these stats are very important and relevant.So the next time someone says “you have to join xyz company with me as we pay 70 % which is sooooo much more than anyone else” you’ll be able to tell them where to get off.

Next is another overlooked piece of the puzzle.Lets say you find a company that is paying 40%, which is a good commission rate, are they paying millions every week to the top associates of the company or are they sharing that around to all ? This is another trap for young players.If the company is paying 80% of all commissions to the top 20% of associates there wont be many new people making pay checks when they get started.This creates a large casualty list and means that you need to work even harder to maintain your organisation as it grows.If the company is spreading that 80% across a larger pool of associates it allows new people to earn paychecks right out of the gate and keep them motivated longer.The rule of thumb here is that if an associate doesnt make a check in the first 2-3 months they will most likely lose motivation and interest and leave and there is statistics to prove this.I have infact seen this many times personally in my own business.

When researching a companies products dont use sales statistics to try to prove whether a particular product is better than another.A friend of mine tried to convince me that a certain companies product was the best because it had $50US Billion worth of sales per year and the second ranked company had only $30 Billion.Sales figures are one thing but what does the science tell us? This was a Nutritional Supplement product that has been around for years and is a recognised brand .But is it better that the rest just because of the sales figures ? NO. Seek out non biased independant scientifically balanced knowledge not just sales stats or any other fluff that people use to tell you “ours is better”.

Longevity is another important piece of the puzzle to.NEVER EVER EVER EVER jump into the latest start up craze company that just launched and everyone is saying “get in at the top or miss out”. Most of this is just junk and lies.look for a company with at least 5 years trading record ,look at the share price ,is it growing or declining ?. Is it a field that is set to grow massively in the next ten years ? eg the health and wellness industry is set to explode due to baby boomers aging.History tells us that where ever this group of people have been as they age they have created a need for products and services.Dont join an mlm company that sells the rubix cube for example as that craze is over.

And finally dont forget to chose an industry or company with unique consumable products that people need.

If you joined a company selling laptops do you think you’d make millions here ? Probably not, and why ? How often do you buy a new laptop ? probably every 3-4 years. Repeat sales are the backbone to your success in any mlm company.If the product is ordered on the first of every month over and over again you’ll be creating a lifetime of residual income in one of the most exciting and changing industries in the world.Good luck and my last tip.Once you have chosen your company.NEVER EVER EVER EVER EVER quit ,follow this and I guarantee 100% you will build a successful business that will be around for years to come if you duplicate that down through your organisation.

Calvin Leonard
http://www.articlesbase.com/mlm-articles/the-secrets-of-mlm-they-dont-want-you-to-ever-know-80322.html

Finding Cheap Bankruptcy Lawyers For You

In this age of living on credit cards it is not surprising to find that more and more people are filing for bankruptcy. In order to prevent the misuse of bankruptcy claim a new law called the Bankruptcy Abuse and Consumer Protection Act, was passed in 2005. If you are in a serious and genuine financial problem, the right thing to do is file for bankruptcy. But before you do that you would have to find yourself a cheap bankruptcy lawyer who can explain to you all the finer points of the new law and can get you a good deal.

Where to Find a Bankruptcy Lawyer

Your quest for finding cheap bankruptcy lawyers can start with your family and friends. Those who have gone through the bankruptcy experience can recommend some names. You will get an insight into how competent the lawyer is. If you know an attorney, he or she might be able to refer you to some good bankruptcy lawyer.

Bankruptcy is a complex legal process, therefore, it is essential to have a bankruptcy lawyer who can put forward legal methods to either wipe out the debt by liquidating your assets and distributing them amongst your creditors, or develop a repayment plan. Usually the first consultation with a bankruptcy lawyer is free, so make sure you put forward your real financial situation before him or her. Once you have hired a bankruptcy lawyer, provide him or her with a list of all the debts that you carry. This would include credit cards, medical bills, loans, cars, etc. Make sure you have your bankruptcy lawyer explain to you all the details of the new law. If you have any questions, do not hesitate to ask.

Choosing a Good Bankruptcy Lawyer

A good bankruptcy lawyer will give you expert advice on how to get your financial situation back on track. A good lawyer will help you with repayment plans and debt management. Before you finalize your choice make sure you share a comfort level with your bankruptcy lawyer.

You want a lawyer who understands the system and will do a good job to represent you. It may cost you a little more but you get what you pay for. Your local bar association can probably help you decide whether a proposed fee is fair with the local standard. You can also browse online to compare some services to get an idea how much it would cost you to hire a bankruptcy lawyer.

Ryan Arsendatama
http://www.articlesbase.com/finance-articles/finding-cheap-bankruptcy-lawyers-for-you-113701.html

A Look Into The Process of Filing Chapter 7 And 13 Bankruptcy

For every person, whether or not you file Chapter 7 is up to you to determine. Although there are a number of different times when it is a very good idea, there are many that file that does not need to do so. For this reason, new laws have been put in place to determine just if you qualify to file in the first place. Your attorney will walk you through understanding if Chapter 7 is right for you, if Chapter 13 is a better choice or if you do not qualify for either.

First of all, you should know what you owe, who you owe it to and have a budget that cuts out every possible extra expense so that you can work to pay down your debt. Finding ways to actually cut through your bills can help you to really pay off those credit cards and bills, without having to file Chapter 7. The more drastic you are in doing this, the more successful you can be to avoid this problem.

Another thing that you should do is to consider using only cash for purchases. You may want to consider going to only cash in a set allowance, too. This will help you to really cut into the amount of money that you owe because you will not be adding to it each month. Give yourself a set amount of money to spend per month and does not go over.

You can also look for small ways to add dollars into your pocket. Selling off a few assets that you have and does not really need can help you to actually find benefits in the long term. If you have an extra car sitting in the garage, it may look nice, but it could be something to help you avoid filing Chapter 7. You should try to sell little things too, such as through garage sales and even by selling them in your local newspaper.

Another step in the right direction is to work with your creditors. You will find that there are non profit consumer credit counseling programs available that will work as the middle man. They will help you to find the right balance with your credit about your situation and even try to get your rates lowered.

While you can file bankruptcy on your own, it is much more efficient and economic to hire an attorney that specializes in bankruptcy. He or she will work with you to find the best possible solution for your needs. They will also work with you to meet with your creditors, to come to an agreement, and to file all of the legal work that must be filed in order for this to happen, without a problem.

Understanding what that actually means and entails is something different, though. Most people know what bankruptcy is but does not know the difference in Chapter 7 and Chapter 13. They does not know how to do it nor do they realize that it is harder than ever to have their debts discharged. Nevertheless, it is something you have to plan for. Here are some things that should be known.

Chapter 7: In this type of bankruptcy filing, your debts are discharged. All debts that are filed under this and are approved for discharge will be debts you are no longer responsible for. This type of bankruptcy filing is best for those that do not have assets or have assets that are not valuable enough for the creditors to file against.

Chapter 13: This type of filing is much different. Here, your debts are adjusted. This provides a temporary halt to the foreclosures and collections that are happening to you, in order for you to spend the next three to five years trying to pay down the debt that you owe. It will allow you to restructure the debt into easier to manage terms. In addition, it will change the interest rate on your loans to make them more affordable.

As of 2005, new bankruptcy laws went into place to keep those that have been filing Chapter 7 abusively from doing so. This law, called the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 is one that is quite comprehensive.

It provides several restrictions that will require those that are considering filing bankruptcy to follow before being able to have their bankruptcy discharged. The fact is that it is now harder than ever to file Chapter 7.

There are several things that are now taken into effect in regards to filing Chapter 7 under this new law. Here are some points that are important to know about.

– A variety of new deadlines is included. If these new deadlines are missed, your bankruptcy will not go through. Penalties for refilling will be higher and harder to work through.

– A test is provided by your attorney that will determine if you even are allowed to file bankruptcy. This will decide if you can file Chapter 7 or Chapter 13 and is called a means test. More people will be required to file under Chapter 13 which will require you to have your debts restructured so that you still have to pay them back, just at a lower rate.

– Your assets are likely to be valued higher than before and this includes furniture, cars, and other assets you have.

– There are also laws in place that require residency requirements as some individuals were seeking to use the laws of one area over another if they were more favorable to them.

– There are penalties and fees for trying to re-file. Although it was easy to do this in prior years, it is now going to be seriously challenging to do so.

– The judges are allows to provide for up to 20% in reduction to the debt is the creditors will not work with consumer credit counseling companies to help you to relieve your debt.

– There are also protections in the new law that allows for your college savings plans and your retirement funds to remain untouched by the filing of Chapter 7.

Filing Chapter 7 is almost a necessity to many. Those that have had to deal with expensive medical bills or those that were careless with credit cards often find themselves caught, under a rock and there is no way out. It is very hard to pull out of a situation like this, especially when there is no simple solution. For many, Chapter 7 really means a new beginning and the hope of a new future without debt.

Depending on how you decide to handle your financial trouble you should investigate all your options. There are many companies out there that specialize in debt consolidation and bankruptcy. Bankruptcy is not always the answer and can actually hurt you more than it will benefit you in the long run.

Dennis Cole
http://www.articlesbase.com/finance-articles/a-look-into-the-process-of-filing-chapter-7-and-13-bankruptcy-95778.html

Can I keep my car in Chapter 7 bankruptcy?

I would like to know if anyone knows if I can keep my car in chapter 7 bankruptcy? I know it is not worth what I owe on it. My problem is that my credit is shoot, due to helping out family and my husband lost his job which put us in MAJOR debit. We qualify for Chapter 7 but this is the only car my family has. I don't want to lose it. Can someone please explain to me how this will work?

Hi. It's not a good idea to reaffirm {not have the debt discharged in bankruptcy} on a vehicle where it appears that you are upside down {owe more than what is worth}. There are many dealerships that will extend credit after the bankruptcy is discharged. If you file bankruptcy, you can keep the vehicle as long as you continue to make payments without reaffirming. If the car is repossessed or your surrender the vehicle, then the debt is already discharged in your bankruptcy if you DO NOT sign a reaffirmation agreement. If you do sign, then, you are still responsible for any amounts owed if the car is repossessed. I hope this helped.

Has anyone ever filed chapter 13 bankruptcy. How does it work?

Is filing chapter 13 really that bad. I hear people saying that they filed bankruptcy and purchased a house the next year, is that possible

You can view more information on a chapter 13 bankruptcy. Most chapter 13’s run for 5 years, and paid to the trustee of the bankruptcy courts from your paycheck however you get paid. The secured debts are paid first, the un secured last. This website will give you more informaiton: www.usbankruptcy.gov or www.bcsalliance.com Both are great informational sites to inquire on debts, credit and bankruptcy issues.

Buying a house after a bankruptcy filing is going to take lots of work on your part, higher interest rates and a good stable income, and proof that you can pay your bills.