Filing bankruptcy- A general overview

Posted on | Sunday, October 24, 2010 | No Comments

After the recession and liquidity crunch of 2007, a huge number of home owners are finding themselves knee deep in debt. Inflation and the gloomy economy have affected the debtors very much and in order to avoid too much debt, many are thinking of bankruptcy, if other debt relief options are not working for them. Bankruptcy filings are at an all time high. If you are one of them, and want to know ‘how to file bankruptcy’, this article will provide you with the essential details.

Bankruptcy laws

As filing for bankruptcy was rampant, the New Federal Bankruptcy Laws were introduced to have a check on the number of debtors filing bankruptcy. So, the norms pertaining to file bankruptcy have been made a bit stringent.

As per the new bankruptcy law, which came into effect from 17th October, 2005, it is mandatory to take a credit counselling session, prior to filing for bankruptcy. The credit counsellor should be approved by the US Trustee. It is better to consult and take help of a reliable bankruptcy lawyer, to make the process simplified.

Bankruptcy filing requirements

If you want to file a Chapter 7 bankruptcy, you need to meet the following requirements:

• You have to pass the Means Test. This test is taken to determine whether or not you have any mean to repay your debt. If it is declared that you have no other option to pay your creditors, but, have enough money to live on reasonable, you can file for Chapter 7.

• Your non-exempt property, like, jewellery, antique collections, expensive vehicle, second home, etc, will be turned over to a trustee, who will sell it and pay off a portion of your dues.

For filing Chapter 13 bankruptcy, you need to meet the following requirements:

• You should have undergone credit counselling from an approved credit counsellor, 180 days before filing.

• Your secured debts must not be over $1,010,650 and unsecured debts must be less than $336,900.

• You should not fail to appear before the court during the last 180 days.

Filing bankruptcy

If you want to know, ‘how to file bankruptcy’, you should follow the steps mentioned below:

• You need to consult an attorney.

• You should decide on the type of bankruptcy you would opt for.

• You should make detailed list of all your debts and assets

• You should appear for the Means Test

• You should fill out the bankruptcy form and deliver it to the bankruptcy court.

When you are gaining knowledge on the process of how to file bankruptcy, you also have to bear in mind that you have to bear the cost of filing bankruptcy. Bankruptcy damages your credit rating a lot and stays in your credit report for 7 to 10 years. So, it is advisable to opt for bankruptcy, if you have no other debt relief option.

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Defense Base Act Lawyer Straight Talk: Why So Many DBA Claimant's Get Ripped Off

Posted on | Friday, October 15, 2010 | 4 Comments

The Defense Base Act (DBA), created in 1941, extended the federal workers' compensation program for longshore and harbor workers. The DBA was initially extended to persons working on American military bases abroad. It was then expanded to most federal contractors working outside of the United States.

The Act requires federal government contractors and subcontractors to provide workers' compensation insurance for their employees who work outside of the United States.

The DBA Falls Under the Longshore Act

Under the provisions of the Act, overseas federal military and public works contractors are subject to the same workers' compensation rules as maritime employers covered by the Longshore and Harbor Workers' Compensation Act (LHWCA). Including the same insurance requirements and same schedules of benefits for covered workers. The same LHWCA laws and rules apply.

The DBA provides no-fault coverage to injured workers. Injured workers and the survivors of workers killed on the job are entitled to benefits for employment-related injuries, illnesses, and deaths. It is their exclusive remedy against their employers. Which means these workers can not sue their employers for their injuries.

Third Party Claims

However, DBA employees can bring third party lawsuits against persons and/or entities whom are legally entities other than their employers. If your serious injury was caused by an entity other than your employer - you should explore a third party lawsuit.

Defense Base Act Insurance Carriers

Contractors covered by the DBA may purchase workers' compensation insurance from private carriers approved by the DOL. Currently, the major providers of DBA insurance coverage are ACE-USA, American International Group (AIG), and CNA. The following are the largest Defense Base Act insurance companies or carriers with thier percentage of DBA cases from 2000 - 12-31-2009:

AIG: 79%
ACE - USA: 9%
CNA: 9%
All others: 3%

AIG has the lion's share of DBA cases.Of the 55,988 new DBA cases created between September 2001 and the end of December 2009, 54,449, or 97.3% were insured by one of these three companies or their subsidiaries. The largest single insurer of DBA cases during this period was the Insurance Company of the State of Pennsylvania, an AIG company that insured 43,901 DBA cases.

It's A Game of Attrition

The fact that so many DBA cases are concentrated into so few insurance carriers allows these insurance companies to play a game of attrition. Even though this "game" affects the lives of so many injured DBA workers. It certainly doesn't feel like a game to them.

However, this attrition approach to DBA claims allows these few insurance companies to greatly profit. In essence, the insurance companies are relying on workers settling their cases before they obtain a Compensation Order from the Office of Administrative Law Judges (OALJ).

The insurance companies make benefits difficult to obtain. They can out-wait claimants. They realize some claimants will have economic stress and will settle early because of their economic situation.

Hiring A Local Lawyer

DBA workers return injured and are spread across the country. Many claimants will hire local workers compensation lawyers. These local lawyers haven't been handling LHWCA and/or DBA cases for 20 years like the defense lawyers the insurance companies hire. These local lawyers get taken to the cleaners by these grizzled insurance company lawyers. So they settle these cases for pennies on the dollar.

The problem is the insurance company stall tactics appear to be working. Too many claims fall by the wayside. Too many claimants and their lawyers are taken advantage by these few insurance companies.

What You Can Do

Be sure the lawyer you hire has a history with the DBA/ LHWCA. It really does make a huge difference in the outcome of your case. This is not to suggest that many cases should not be settled. However, they shouldn't be settled for pennies on the dollar. If your lawyer is telling you to settle your case and you don't think you are getting a fair deal, get a second opinion.

Authored By William Turley

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