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Article Writing Samples

Article Writing Samples

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Published by christinewrites
Writing samples on bankruptcy and debt.
Writing samples on bankruptcy and debt.

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Published by: christinewrites on Sep 03, 2009
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Debts That Bankruptcy Does Not Discharge
Bankruptcy does not discharge all types of debt. In both Chapter 7 and Chapter 13bankruptcy, there are certain types of debt that will not be discharged or erased. Let’sbegin by looking at debts that are not discharged in a Chapter 13 bankruptcy.A Chapter 13 discharge affects only those debts allowed by your bankruptcy plan. Anydebts not specifically addressed in your plan may remain, and you will be required to paythem in full – even after the discharge. Debts that are not usually discharged under aChapter 13 bankruptcy include: claims for child support and alimony, educational loans,drunk driving debts, criminal fines, and certain long-term obligations such as homemortgages, that extend beyond the term of the plan. An experienced bankruptcy attorneycan explain which debts are erased in your Chapter 13 bankruptcy and which debts willremain.Likewise, a Chapter 7 bankruptcy does not discharge every kind of debt. Typically,intentional acts of wrongdoing, such as fraud, are not dischargeable. Other types of debtsthat are not going to be dischargeable are debts that have a very important social orpolitical aspect to them. These debts usually include taxes, student loans, alimony,spouse support, and child support. Additionally, a Chapter 7 bankruptcy does notdischarge debts associated with a divorce or marital separation agreement (i.e. a propertydivision judgment).Taxes owed to the United States government, or any state, county, or government agencyare not typically dischargeable. However, income taxes can be discharged if all of thefollowing criteria are met:1.
The taxes are more than three years old at the time the bankruptcy was filed.2.
If your tax return was not filed on time, more than two years must have expiredsince the return was filed.3.
If there was an assessment, more than 240 days must have expired from the dateof the assessment before the bankruptcy was filed.4.
There has been no fraud.For more information about what debts will remain after your bankruptcy, consult withan experienced bankruptcy attorney.
Is My Income Too High To File Chapter 7?
If you earn a good living, you may be wondering if your income is too high to fileChapter 7. Most people considering bankruptcy should be able to file under Chapter 7.However, if your income is above the median family income in your state, you may beforced to file Chapter 13. Higher income earners must complete a “means test” thatrequires detailed information about your income and expenses. If the test shows that you
© Copyright, 2009. These articles were written for a client, and are provided for sample purposes only. You are not allowedto republish or repost these articles.
have a certain amount of income left over that could be paid to unsecured creditors, thenthe bankruptcy court can decide that you cannot file a Chapter 7 bankruptcy.The income cap for filing Chapter 7 bankruptcy is based on the median income in yourstate, your total household income for the past 6 months (prior to filing), and yourhousehold size. Even if you are filing Chapter 7 bankruptcy alone, you would still haveto qualify based on household income.For qualification purposes, your income is calculated as your average gross income(before taxes) for the last six calendar months. This excludes any benefits under theSocial Security Act. If you are married, your spouse’s income is included unless youcomplete separate tax returns and have declared separate households. The state medianincome used for comparison is calculated by using:
The Census Bureau’s figure for median personal gross income in your state,
The number of people who have the same number of people in their household asyou.
This figure is adjusted for inflation since the last census.Using the qualifications listed above, if your income is above the state median income,you do not qualify to file for Chapter 7 bankruptcy. Be aware, however, that thiscalculation can be affected by various legal interpretations, such as whetherunemployment compensation is a benefit under the Social Security Act. Consult anexperienced bankruptcy attorney to determine whether your income is too high to fileChapter 7 bankruptcy.
How Will Bankruptcy Affect My Credit?
If you’re considering filing for bankruptcy, you may be wondering, “How willbankruptcy affect my credit?” By law, a bankruptcy can remain on your credit report forup to ten years. This means that you will have a much harder time getting credit. You'lllikely have an extremely difficult time getting a home loan, and you will no longer havethe benefit of using credit cards. However, you can recover from this.During the 10-year period while the bankruptcy is on your credit report, you may receivecredit card offers with very high interest rates (sub prime rates). This is because lendersview you as a “high risk borrower” due to your past bankruptcy. You will need to work diligently to improve your credit score, and re-establish trust with creditors by payingyour bills on time.Typically, it is easier to re-establish credit with a Chapter 13 bankruptcy, than with aChapter 7 bankruptcy. Chapter 7 bankruptcy is the blackest mark you can have on yourcredit. In Chapter 7, most of your debts are discharged (with the exception of childsupport and alimony). This makes qualifying for a new loan or a new credit card veryunlikely for at least two years, possibly longer. However, you may be able to qualify for
© Copyright, 2009. These articles were written for a client, and are provided for sample purposes only. You are not allowedto republish or repost these articles.
a federal student loan, since federal law prohibits discrimination against students basedon credit factors.Chapter 13 bankruptcy is also referred to as “reorganization” and it does not discharge allof your debts. Instead, it provides you with a repayment plan to pay off your debts inmanageable amounts and timeframes. A Chapter 13 bankruptcy will have a negativeeffect on your credit report, but it does show your willingness to pay your debts ratherthan to completely discharge them. This should help you obtain new credit within a yearor so.Many people believe that bankruptcy means you can’t buy a home for at least 10 years.However, this is not true. You may be able to get a home loan beginning two years aftera Chapter 7 bankruptcy has been discharged, and one year after filing a Chapter 13bankruptcy. FHA and VA mortgage loans can be obtained as soon as one year afterfiling for either Chapter 7 or Chapter 13 bankruptcy.
Top Bankruptcy Myths
Many people have misconceptions and false ideas about bankruptcy and its effects. Let’slook at some of the top bankruptcy myths.
Myth #1: All debts are completely wiped out in a Chapter 7 bankruptcy.
This is apopular myth that is completely false. In a Chapter 7 bankruptcy, certain types of debtscannot be discharged or erased. These debts include alimony, child support, government-issued or guaranteed student loans, and debts acquired as the result of fraud. Also, if youowe money to someone as part of a legal settlement, it’s very unlikely that a judge willdischarge that. Debts acquired as a result of legal settlements are rarely discharged.
Myth #2: If you're married, both you and your spouse must file for bankruptcy.
 This myth is not necessarily true, especially if one spouse has a lot of debt in his nameonly. However, if you and your spouse have a lot of debt in both your names, then you’llprobably want to file jointly. Otherwise, your creditor can demand payment for the entiredebt from the spouse who didn’t file. Consult with a knowledgeable bankruptcy attorneyto determine whether both spouses should file.
Myth #3: You can only file for bankruptcy once.
You can file for bankruptcy multipletimes. However, according to the new bankruptcy law that was passed in October 2005,you are required to wait longer between bankruptcy filings. Currently, you can only filefor Chapter 7 bankruptcy once every eight years, and Chapter 13 once every two years.You are required to wait four years between filing a Chapter 7, and a Chapter 13bankruptcy. Multiple bankruptcy filings can wreak havoc on your credit score, sinceeach bankruptcy filing can remain on your credit record for up to 10 years.
© Copyright, 2009. These articles were written for a client, and are provided for sample purposes only. You are not allowedto republish or repost these articles.

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