A study released October 28, 2009, by the Pew Charitable Trust found that that 100% of credit cards offered online by the twelve leading U.S. banks engage in practices that the Federal Reserve has defined as “unfair or deceptive.” The study examined the terms of almost 400 credit cards advertised by banks and credit unions in July 2009 and December 2008.

The federal Credit Card Accountability Responsibility and Disclosure (CARD) Act, which is being implemented in stages, requires banks to eliminate unfair and deceptive practices such as “universal default” or raising rates based on a missed payment to another lender. Some of the new regulations are already in effect; others are scheduled to begin Feb. 22, 2010.

Even though the Federal Reserve lowered the federal funds rate to near zero to encourage lending by banks, the study found that credit card rates have actually increased over the past year. Bank of America had the largest percentage increase, rising from 14.99% to 18.24% for its highest rate card. Ironically, it appears that this increase in interest rates has been in some part caused by the passage of the CARD Act, which bars rate increases without a 45-day notification. To reduce risk under this the CARD Act, banks have raised rates before this part of the Act takes effect in February.

The study concluded that these rising rates makes credit cards a potentially dangerous part of most Americans’ financial lives. If credit card debt has become a danger to your financial well-being, you should consult with a qualified bankruptcy attorney and discover the cure. Don’t rely on Congress or the beneficence of the credit card industry to make your debt disappear. Take matters into your own hand, and discharge these unscrupulous lenders from your life once and for all.

Earlier this year a bill that would have given bankruptcy judges the authority to modify home mortgages was soundly defeated in the Senate after intensive lobbying by the financial industry. After the defeat Sen. Dick Durbin said of the bank lobbying effort, “Frankly, they own the place.”

Six months later, it is apparent that legislation designed to encourage home loan modification between lender and home owner is impotent. The “Home Affordable Program (HAMP)” and the 2008 HUD “Hope for Homeowners” are voluntary programs that have proven too costly and cumbersome to be effective. The Huffington Post recently characterized the situation this way:

“The Obama administration had high hopes for the law Congress passed intended to encourage mortgage modifications. The law is all carrot, however, and no stick. Cramdown is the stick. If banks think they could get hit in bankruptcy court, they're more likely to bargain.”

Rising unemployment rates and mounting home foreclosures are putting new pressures on Congress to do something. Some lawmakers are revisiting the idea of bankruptcy cramdown to encourage voluntary modification by lenders, or to enable forced modification by the bankruptcy courts. Passage of this cramdown legislation would give Federal bankruptcy judges the authority to modify bankruptcy debtors’ mortgage contracts by lengthening terms, cutting mortgage rates, or reducing loan balances. The current bankruptcy law allows modification of some contracts, but not home loans.

House Financial Services Committee Chairman Barney Frank (D-Mass.) has announced his intent to push for legislation giving bankruptcy judges the authority to modify home mortgages. The Huffington Post reports that Frank has met with key members of the Senate Banking Committee who are ready to make a serious push at major financial regulatory reform before the year was out.

If you are behind on your mortgage and experiencing difficulty with your lender, consult an experienced bankruptcy attorney for advice. There are many options available to homeowners, and new opportunities are developing, but quick action is still vital to your chances for a positive result. Take control of your situation by learning your rights and legal options.

Contact bankruptcy law firm Fears | Nachawati toll free at 1.866.705.7584 or by e-mail at info@fnlawfirm.com for a free consultation on bankruptcy.

Many older Americans struggle each month to pay credit card debt with a modest income. Often paying unsecured debt is a tremendous burden and requires a sacrifice of basic necessities. Sometimes the elderly conserve utilities, or cut back on food, or forego prescription medication to pay credit card companies.

The subject of bankruptcy is especially difficult for elderly people who may cling to preconceptions that are out-dated or otherwise incorrect. There have been many changes in the laws that protect an elderly person’s ability to meet basic monthly living expenses. Many retirement accounts and social security income are protected from creditor garnishment. Additionally, elder Americans are often judgment proof, meaning all income and assets are protected from creditors. Unfortunately, many older Americans fail to take advantage of these protections because they believe they can honor their obligations by paying minimum payments each month. The sad truth is that it often takes decades to pay off a credit card by making minimum payments.

The stress and worry over repaying unsecured debt can cause health issues for young and old. A great deal of this stress and worry can be alleviated by choosing a feasible plan to either pay or discharge this unsecured debt. Bankruptcy is one tactic for managing unsecured debt and for reorganizing an elderly person’s finances. An experienced bankruptcy attorney at Fears | Nachawati can explain your options and provide solutions for living on a fixed income. Contact us toll free at 1.866.705.7584 or by e-mail at info@fnlawfirm.com.  Don’t let credit card debt turn “the golden years” to rust.
 

American author Mark Twain was fond of saying, "There are three kinds of lies: lies, damned lies, and statistics." While it is important to scrutinize any statistic with a healthy dose of skepticism, bankruptcy statistics can help attorneys, courts, creditors, and even debtors understand who is filing bankruptcy and the reasons.

Today’s post will examine some bankruptcy statistics from a major study of bankruptcy debtors by Harvard Professor Elizabeth Warren entitled The Fragile Middle Class: Americans in Debt. This study found some surprising statistics:

● the average age of a bankruptcy filer is 38
● couples filing jointly make-up 44% of all bankruptcy filings. 30% of the filers are
women filing bankruptcy alone, and 26% of the bankruptcy filers are men filing alone
● most bankruptcy filers are slightly better educated than the general population
● two out of three bankruptcy filers have lost a job
● half of all bankruptcy filers have experienced a serious health problem
● 91% of bankruptcy filers have suffered a job loss, medical event or divorce
● 40% of bankruptcies result from medical crises, unemployment or divorces
● 90% of these filers have two car payments, a house payment, and an average of $2500
in credit card debt
● 10% of filers were delinquent only 5 to 29 days before bankruptcy

In 2008 there were 1,074,225 consumer bankruptcy filings. For the second straight year, Tennessee had the overall highest per capita rate of filings, with 7.65 filings per 1,000 residents. Put another way, that’s one-and-a-half people out of 200, per year.

While these bankruptcy statistics are enlightening and even useful, no two bankruptcy cases are the same. Unfortunately, some firms take a “one size fits all” approach to bankruptcy. If you are experiencing financial difficulty, seek out a qualified bankruptcy attorney to explain your rights and treat your case with the care and attention you need and deserve. Don’t be treated like just another statistic.
 

Contact Fears | Nachawati today for a free consultation regarding your bankruptcy needs.  Call us at toll free 1.866.705.7584 or reach us by e-mail at info@fnlawfirm.com. 

I recently read a newspaper advice column written by a Certified Financial Planner who suggested that, as a practical matter, there is no difference between ignoring your credit card debt and filing bankruptcy. Well, let’s look at the “practical effects” of ignoring your credit card debt:

First, ignoring credit card obligations will cause a persistent series of harassing telephone calls and letters from credit card companies, collection agencies, and finally law firms. Phone calls are systematically made to the debtor’s home and work, and sometimes to third parties including neighbors, extended family, and your employer. The agencies that collect credit card debt are experts at telephone harassment – it is one of their most important weapons.

Bankruptcy, on the other hand, stops all collection calls.

Second, your credit score will be ruined on a continuing basis. For each month that a credit card goes unpaid, the creditor will report negatively to the credit reporting bureau. Additionally, collection agencies will often further harm your credit score by “resetting” the date of last activity when the account is transferred to a new collector.

Bankruptcy stops all negative reporting. Discharged debts should be identified as “Discharged in Bankruptcy” with a zero balance. The debtor’s credit report and score can begin to recover from the date of the bankruptcy discharge.

Third, you can (and will) be sued. The typical consumer will undoubtedly lose a lawsuit over a legitimate debt. The resulting judgment may include substantial penalties, interest, court fees, and attorney fees. A judgment creditor can collect from your wages, your property, and your bank account. While there are some people who are judgment proof, they are the exception and not the norm. Most people have assets that a judgment creditor can attack.

Bankruptcy prevents all lawsuits and even stops collection actions from judgment creditors.

Many consumer advocates have likened credit card debt to an illness. Like any illness, the cure is not found in ignoring the problem, which will only make things worse. If you are sick from credit cards and are unable to pay your debts, consult with a bankruptcy attorney and find the cure!

Call Fears | Nachawati today for a free consultation regarding you options at toll free 1.866.705.7584 or by e-mail at info@fnlawfirm.com. 

When we were children a preference was a good thing, such as: I prefer Johnny on my team for kickball; or my preference is chocolate ice cream. In the bankruptcy world a preference payment is a bad thing. A preference payment is a transfer of money by a debtor, on account of a pre-existing debt, that is made while the debtor is insolvent, and gives the creditor more than it would receive from the liquidation of the debtor's assets during a chapter 7.

The idea behind a preference payment is that the debtor chose to pay a certain creditor instead of other creditors – the debtor “preferred” this creditor. Preference payments are unfair to the debtor’s other creditors, and, if the transaction took place within 90 days, the bankruptcy trustee can compel the turnover of this preference payment to the bankruptcy estate for equal distribution to all creditors. And there is one other important caveat to preference payments: if the payment is made to an “insider,” then the avoidance period is one year. An “insider” is a generally a relative, business partner, etc. who has a special relationship with the debtor.

A common preference payment scenario is a payment by the debtor to a family member on account of a previous debt. For example: Mary borrows $3,000 from her mother to help pay bills. In March Mary receives her income tax refund and repays her mother the $3,000. Mary files bankruptcy in May, and doesn’t tell her bankruptcy attorney about the March payment. The trustee learns of the payment while examining the debtor’s bank statements and sues Mary’s mother to recover the $3,000 for the bankruptcy estate.

This awful situation for Mary and her mother can be easily avoided. First, do not withhold information from your attorney. Second, provide your attorney with any requested documents. Third, do not pay any creditor (or relative) without first consulting with your attorney. Cooperating with your attorney can ensure that your bankruptcy case is preference-free.

Residents living in Texas are subject to wage garnishment by the IRS. The IRS commonly uses wage garnishment as a way to collect taxes and penalties that are owed. A wage garnishment requires an individual’s employer to withhold a portion of the taxpayer's pay each period and send it to the IRS. In most cases, the individual is not left with enough money each month to pay basic living expenses. A wage garnishment will remain in effect until the taxes and penalties owed are paid in full or until a wage garnishment release is issued.

The only other time the wage garnishment can be stopped for a debt to the IRS (or any  other creditor) is to file for bankruptcy. When you file for bankruptcy, an automatic stay is put in effect. This means that all garnishments, liens or other collection activity by the IRS and creditors will stop immediately. In some cases, you may even be able to get back some of the wages that were garnished.

For more information on how a bankruptcy can help you put an end to wage garnishment, contact bankruptcy law firm, Fears | Nachawati, toll free at 1.866.705.7584 or via e-mail at info@fnlawfirm.com.

On November 1, 2009, chapter 7 debtors must pass the bankruptcy “means test” using new income figures released by the U.S. Trustee Program. In thirty-two states and the District of Columbia the median income figure for a family of four has decreased. These new figures are not surprising when considering the widespread unemployment and economic hardships our nation has recently faced.

State median income figures are used in the means test to identify debtors who may have the ability to repay some the debts in bankruptcy. When a debtor “fails” the means test by having too much disposable income, the debtor may be denied relief under chapter 7 and must proceed under chapter 13 (a three to five year repayment plan). If a debtor is above the state median income for his or her family size, the chapter 13 repayment plan must last for five years.

The new income figures could make it more difficult for a family in many states to file for chapter 7 bankruptcy protection, or make a debtor’s chapter 13 plan last longer. This added burden seems unfair for families that are struggling with a job loss, or facing a foreclosure due to the economic recession. In most cases the difference is a few hundred to a few thousand dollars annually. The State of Alaska saw the biggest plunge: an income reduction of over $6,000 per year.

If you are contemplating a bankruptcy, speak to an experienced bankruptcy attorney and take the bankruptcy means test. Pass or fail, you have options that your attorney can explain to you.  Contact Fears | Nachawati today for a free consultation to discuss your options at toll fee 1.866.705.7584 or by e-mail at info@fnlawfirm.com. 
 

Your bankruptcy attorney will have many questions for you during your initial meeting. The most important goals of this meeting are learning about your situation, and helping you determine whether bankruptcy is the right option for you and your family. In order to achieve these goals you will want to come prepared to answer your attorney’s questions. While every case is different and may require additional documents from the client, below is a list of the most common documents and records your attorney needs:

1. Photo ID and social security card;
2. The last six months of pay check stubs. Sometimes this information can be obtained from your employer;
3. Last two years of income tax returns;
4. Real estate deeds and mortgage paperwork;
5. Vehicle titles along with lease or purchase agreements;
6. All loan paperwork;
7. Any child support or maintenance (alimony) court order;
8. Any recent credit report (you can obtain a free credit report at https://www.annualcreditreport.com/cra/index.jsp);
9. Information regarding your debts;
10. Any important documents that impacts your income, assets, debts, or expenses. For instance: a foreclosure notice, or a notice of an upcoming bonus;
11. Investment records;
12. Last six months of bank statements;
13. Any tax bill showing assessed value;
14. Proof of insurance on all property secured by a lien; and
15. Any documents pertaining to a legal claim or pending lawsuit (e.g. a personal injury or worker’s compensation claim).

While this is not a complete list, it is a start to help your attorney understand your circumstances and advise you on how to improve your financial situation.

Often filing for a Chapter 7 bankruptcy is seen as the final step in a personal financial crisis. While this thought is understandable, it’s more realistic to view a Chapter 7 bankruptcy as the beginning of financial freedom.

Benefits of a Chapter 7 bankruptcy

Briefly, filing for Chapter 7 bankruptcy will place an automatic stay that will help protect you against:

• Liens on your paycheck or bank account
• Foreclosure of your home
• Repossession of your vehicle

The filing fees for a Chapter 7 bankruptcy

The fee to file a Chapter 7 bankruptcy in Texas is approximately $299. For more information go to: www.txnb.uscourts.gov/Clerks-Office/Filing-Fees.

Attorney fees involved in a Chapter 7 bankruptcy

When considering the fees associated with attorney fees, the big picture must be taken into account. Mistakes on a Chapter 7 bankruptcy application can end up costing you money in the long run. Furthermore, representation by a skilled bankruptcy attorney can help you deal with unethical action from overzealous creditors who may harass you or refuse to remove liens on your paycheck or other assets.

Many bankruptcy attorneys are willing to work out a reasonable payment plan so you can file for a Chapter 7 bankruptcy as soon as possible to avoid a lien on your paycheck or repossession of your vehicle.

For a free consultation to discuss your options, contact Fears | Nachawati by calling toll free 1.866.705.7584 or e-mail us at info@fnlawfirm.com. 
 

At first sight the title above may seem contradictory. How can filing for Chapter 7 bankruptcy be key to rebuilding your credit? After all, this statement is against everything your creditors and collections agencies have been telling you. In order to understand how Chapter 7 can help you it is best to explain the benefits of filing a Chapter 7 bankruptcy.

Benefits

The first benefit in filing for a Chapter 7 is the automatic stay. What this means for you is that the creditors included in your Chapter 7 must stop all collection action immediately.  This means that they will not be allowed to place a lien on your bank account, foreclose on your home or repossess your car. If these actions have already started against you, the creditor will have to reverse or stop the action right away.

The second benefit is that you will no longer be legally held to repay most (if not all) of your debts. You will not be obligated to pay your debts once your Chapter 7 bankruptcy is discharged.

In order to understand what debts are dischargeable it is important to consult with an experienced bankruptcy attorney in your area.  Contact law firm Fears | Nachawati toll free at 1.866.705.7584 or via e-mail at info@fnlawfirm.com to discuss your specific financial situation.
 

Due to the worsening economy, self-employed business owners facing a massive amount of debt have no place to turn. Filing for a Chapter 7 bankruptcy can help business owners save their home and other assets. It is important for business owners to be realistic about their financial situation before it’s too late. Business owners who file for Chapter 7 bankruptcy can get protection from existing debt, protect from lawsuits, foreclosures, seizures, bill collectors, judgment liens and tax liens.

With the assistance of an experienced bankruptcy attorney, business owners of an existing corporation might be able file personal bankruptcy and form a new corporation in order to stay in business. There are certain steps that must be taken to achieve that goal. Therefore, it’s important to have the assistance of a skilled bankruptcy attorney to help you get the most benefits under bankruptcy laws.

If you are a business owner who is considering bankruptcy, contact Fears | Nachawati toll free at 1.866.705.7584 or e-mail us at info@fnlawfirm.com for a free consultation.
 

Benefits of Chapter 7 Bankruptcy

When you file for a Chapter 7 bankruptcy, an automatic stay is placed on your debts. This means that your creditors must stop collection activity, including liens, and attempts to foreclose and repossess your property.

Contrary to what some creditors or collection agencies may tell you, there is nothing illegal about filing for bankruptcy. In fact, it is your right to file for bankruptcy.

Court fees

The court fee to file a Chapter 7 bankruptcy in Texas is approximately $299. For more information go to: www.txnb.uscourts.gov/Clerks-Office/Filing-Fees.

Bankruptcy attorney fees

Many bankruptcy attorneys are willing to work out a reasonable payment plan so you
can file for a Chapter 7 bankruptcy as soon as possible to avoid a lien on your paycheck, a foreclosure on your home or repossession of your vehicle. Additionally, most bankruptcy attorneys offer a free consultation to discuss your specific financial situation and to determine if a Chapter 7 bankruptcy is the best choice for you.

Contact bankruptcy law firm, Fears | Nachawati, toll free at 1.866.705.7584 or by e-mail at info@fnlawfirm.com  for more information on what bankruptcy can do for you. 
 

Why Chapter 7 bankruptcy?

As a result of the ever-declining economy, many small business owners are having to face the harsh reality that they will not be able to continue their business let alone pay off their Small Business Loan (SBA loan). Many small business owners have become aware that their best alternative is to file for Chapter 7 bankruptcy. By doing so, they are able to discharge their SBA loans. In many cases, they are also able to save their home and other possessions as well.

The truth about Chapter 7 and SBA loans

In the simplest terms, with the exception of student loans, most any loan issued by the government is subject to discharge. A common misperception about bankruptcy is that any debt associated with the government cannot be discharged in a bankruptcy filing.

Actually, the opposite is the truth. Most loans issued by the government or a municipality can be discharged in a bankruptcy case.

All the loans that could be governmentally issued, the broad majority of those loans are in fact, dischargeable in a bankruptcy filing.

Contact bankruptcy law firm, Fears | Nachawati, toll free at 1.866.705.7584 or by e-mail at info@fnlawfirm.com for a free consultation on bankruptcy and your SBA loan.

Many debt consolidation companies want you to believe that a Chapter 7 bankruptcy is expensive and that it will destroy your credit. Nothing could be farther from the truth. Bankruptcy fees are relatively low compared to a lien on your assets or endless payment plans that you probably cannot afford on a long-term basis and that will eventually lower your credit score.

Court Fees

The fee to file a Chapter 7 bankruptcy in the Dallas bankruptcy court is approximately $299. For more information go to: www.txnb.uscourts.gov/Clerks-Office/Filing-Fees.

Bankruptcy Attorney Fees

While it is true that you can file for bankruptcy on your own, bankruptcy laws can be very complicated. Unless you have working knowledge of the current bankruptcy laws, you may miss something that can benefit you. For example, many people who file on their own still have problems with creditors sending them letters and removing the debt from their credit report. This is an aggressive tactic that many creditors use when they know someone does not have an attorney. They know these actions are unlawful but will continue because they know that the average person does not fully understand their rights under bankruptcy law. You can avoid being a victim of this tactic by speaking to an experienced bankruptcy attorney.

Many bankruptcy attorneys are willing to work out a reasonable payment plan so you can file for a Chapter 7 bankruptcy as soon as possible to avoid a lien on your paycheck or repossession of your vehicle.

For a free bankruptcy consultation for more information on what bankruptcy can do for you, contact bankruptcy law firm, Fears | Nachawati, toll free at 1.866.705.7584 or via e-mail at  info@fnlawfirm.com. 

For families in financial difficulty, sometimes paying for even the most basic things is a struggle. Fortunately, the bankruptcy code protects debtors from the disconnection of necessary utilities like water, electricity or gas services. Specifically, a utility company may not alter, refuse, or discontinue service to an existing customer solely because either (1) the customer filed for bankruptcy protection; or (2) the customer failed to pay a pre-petition debt to the utility.

However, this protection is limited. Within 20 days after the bankruptcy filing the debtor must give the utility company "adequate assurance of future payment." This assurance is usually in the form of a new security deposit. The law allows the utility company to keep any previous security deposit and apply that deposit to your prior bill. The amount of the new security deposit is negotiated between the parties, but can be decided by the bankruptcy court if no agreement is reached. If the debtor does not provide "adequate assurance of future payment" within the 20 day time period, the utility provider may discontinue services.

A few years ago the Fifth Circuit Court of Appeals decided that a cable television provider is not a utility service for purposes of the bankruptcy code. In issuing its decision, the Court said:

“This section is intended to cover utilities that have some special position with respect to the debtor, such as an electric company, gas supplier, or telephone company that is a monopoly in the area so that the debtor cannot easily obtain comparable service from another utility.”

By analogy internet and cell phone services would not be considered utilities by the bankruptcy courts.

If your family is overwhelmed by debt and facing a utility disconnection, consider bankruptcy as a way to "keep the lights on" and provide some relief. An experienced bankruptcy attorney can explain how the bankruptcy code can prevent a utility disconnection and stop all creditor collection action.  Call Fears | Nachawati today for a free consultation by dialing toll free 1-866-705-7584 or e-mail us at info@fnlawfirm.com. 

All Texans know how important it is to have a car. You need it for work and for daily activities such as grocery shopping and running other errands. For others it means the difference between having a job or not.

What is Chapter 7 bankruptcy?

When you file for Chapter 7 bankruptcy all collection efforts by creditors must stop. What this means is that all liens on your paycheck, foreclosures and repossessions must end.

How soon afterwards can I buy a car?

Typically 1-2 years. Used and new car dealers are very agreeable to extend credit to people who have a discharged Chapter 7 bankruptcy. They do so because the applicant now has no debt and is able to make timely payments. The key is to keep your credit clear and make payments on time.

How to file

Consult with an experienced bankruptcy attorney in your area. A skilled bankruptcy attorney will be able to discuss fees associated with filing and handling your case.

One of the biggest concerns for people contemplating filing for a Chapter 7 bankruptcy is the possible effect bankruptcy may have when purchasing a home in the future. Most people think that a Chapter 7 bankruptcy will keep lenders from approving a home loan. But in reality the opposite is true.

What is Chapter 7 bankruptcy?

When you file for Chapter 7 bankruptcy all collection efforts by creditors must stop under federal bankruptcy law. What this means is that creditors must end all liens on your paycheck, foreclosures and repossessions.

How soon after wards can I buy a home?

Most people qualify within1-2 years. Some factors that mortgage lenders will consider most important at the time you apply for a home loan will be your job, current credit status and down payment.

How to file

Consult with an experienced bankruptcy attorney in your area. A skilled bankruptcy attorney will be able to discuss fees associated with filing and handling your case.

If you want to speak with a bankruptcy attorney regarding your options, contact Fears | Nachawati toll free at 1.866.705.7584 or by e-mail at info@fnlawfirm.com for a free consultation. 

When you file for a Chapter 7 bankruptcy all collections by payday loan companies must stop due to an automatic stay. What this means is that they cannot continue to make harassing phone calls or continue attempts to cash any postdated checks you may have given them as promissory notes. They also cannot place a lien on your paycheck.

Of course, the Chapter 7 bankruptcy must be filed in order to have the automatic stay come into effect. Additionally, due to the known aggressive tactics by payday loans companies, it is advisable to speak with a bankruptcy attorney in order to make sure that the Chapter 7 bankruptcy application is filled out correctly.

Many people are also concerned about their ability to take out a loan in the future. Typically it is best to wait at least one year after your bankruptcy is discharged before you apply for any type of loan. In the meantime it is best to pay your bills on time to help raise your credit score and qualify for a loan with lower interest rate versus the high payday loan interest rates.

Contact law firm, Fears | Nachawati, to schedule a free consultation with an experienced bankruptcy attorney by calling toll free at 1.866.705.7584 or email us at  info@fnlawfirm.com to discuss your options for filing bankruptcy.

Like most people, you would think that it is crazy to spend more money in the current economy, especially if you are heavy in debt. Many people prefer to avoid creditors and their debt versus paying fees for a Chapter 7 bankruptcy. Unfortunately, what they do not realize is that some companies are very aggressive in collecting on past due debts through strong-arm collection tactics including liens on your paycheck and repossession of your vehicle. A Chapter 7 bankruptcy may give you the option to keep your vehicle and avoid or remove liens on your paycheck.

When you file for bankruptcy, all collection efforts from creditors on your salary or other assets and other debts will stop. What this means is that no creditor can makes calls or take any type of action to collect on any past due bills. It is probably the most cost effective way to get a fresh start. For more information, an experienced bankruptcy attorney can discuss your specific case to answer any questions that you may have.

If you are feeling the stress of too many bills and not enough money to pay your bills, then bankruptcy may be an option for you.  For a free bankruptcy consultation contact Fears | Nachawati, toll free at (866) 705-7584 or by e-mail at info@fnlawfirm.com.

Choosing an attorney to represent you in a bankruptcy case is an important decision that deserves careful consideration. There are several key issues that you should focus on when selecting your bankruptcy counsel:

First, how much of the attorney’s practice is devoted to bankruptcy? Bankruptcy law is a complex mixture of federal law, state law, prior court cases, and the common practices of the bankruptcy court and the trustee. Often it is also important to be familiar with creditor practices and their attorneys. It is easy for an inexperienced attorney to make an easy bankruptcy case difficult, and a complicated case a complete disaster.

Second, how much will you pay? Call around before making an appointment. Bankruptcy attorneys are accustomed to receiving the “how much do you charge” phone call and are happy to clearly explain all of the fees involved in the bankruptcy case, including attorney fees. The qualified and experienced attorney will charge a fair and competitive price. You may also ask if there is a fee for the initial consultation.

Third, how often will you meet with your attorney? While some cases are very simple and will not require much attorney-client contact, your attorney should meet with you at least twice prior to filing your bankruptcy case: (1) during the initial appointment, and (2) at the time you sign your bankruptcy petition and schedules to ensure completeness and accuracy. Your attorney should also be available to answer questions, either by phone, in person, or by email.

Fourth, are you personally comfortable with the attorney? This attorney will act as your guide through financial difficulty to a fresh start. It is important that you have faith in the person you entrust with this important responsibility. A good bankruptcy attorney asks the right questions, listens to the answers, and provides honest advice. If you have doubts or reservations, walk away.

The choice of a bankruptcy attorney is an important decision and should not be made simply on the basis of cost or expediency. Take the time to choose your attorney and interview him or her for the job. A careful and considered choice may mean the difference between a fresh start and a false start.

Bankruptcy fraud is a federal felony that carries a sentence of up to five years in prison and/or a fine of up to $250,000. Some examples of bankruptcy fraud include concealing assets, intentionally filing false or incomplete forms, and providing false information while under oath. Often bankruptcy fraud is accompanied by other serious offenses like identity theft, mortgage fraud, tax fraud, or money laundering.

Bankruptcy fraud can become very complex and may involve the IRS or FBI. The penalty may involve many years of incarceration when coupled with other criminal charges. Other cases are relatively simple like a recent case in Pennsylvania:

A husband and wife were each sentenced to fifteen days in prison by U.S. Magistrate Judge J. Andrew Smyser in the Middle District of Pennsylvania after finding contempt of court for untruthful conduct in their joint bankruptcy case.

According to a press release issued by the U.S. Attorney's Office, Tammy Beecher and Wyatt Beecher filed a chapter 7 bankruptcy petition in May 2007. The filing stated that the Tammy Beecher had no income and that neither debtor operated a business within the previous six years. In fact, the Beechers owned a family business, "Fun 4 Kids Entertainment." Only after the Beecher’s were presented with a coupon for $5 off any party, and reminded by the chapter 7 trustee they signed the bankruptcy petition under penalty of perjury, did the Beecher’s admit that they owned and operated the business.

Bankruptcy fraud can be reported by ex-spouses, banks, and even your neighbors. The Executive Office of the United States Trustees (EOUST) recently launched an internet site that will allow the public to report suspected instances of bankruptcy fraud to the EOUST at http://www.usdoj.gov/ust/eo/fraud/index.htm.

The moral here is: tell your bankruptcy attorney everything. Your attorney can work with you to protect your assets and avoid criminal charges, but only if you tell all. The information you share with your attorney is shielded by attorney-client privilege, a powerful and time-honored protection. While your attorney cannot counsel or assist you in an illegal act, there are many legal options available in every case. If you are in over your head, speak with an attorney and understand your legal options.