Finance Bankruptcy

Steps to Consider For Qualifying For a Mortgage After Bankruptcy

2010-07-27T13:40:00.001-07:00

You would certainly want to increase your chances of qualifying for a mortgage after bankruptcy, and it would be a good start if you can correct your past mistakes first, learn from them and take necessary steps to rebuild your credit.

For sure your credit rating will make you a less attractive prospect for potential lenders so you need to rebuild your credit as soon as possible. This is a crucial part of recovering from bankruptcy. You need to understand that the type of bankruptcy you filed will decide the amount of time it stays on your record. If you filed for Chapter 7 bankruptcy the amount of time it will stay on your record will be ten years. Chapter 13 bankruptcy will stay on your record for seven years. Although there is an amount of time that creditors will see that you have a bankruptcy discharge on your record, it does not mean that you will not be legible for credit.

Your first step in qualifying for mortgage after bankruptcy is to not apply for another credit. The last thing you want to avoid is getting in debt again after bankruptcy. And as you will find out, it would be difficult for you to obtain credit for around a year following bankruptcy discharge. Most lenders will want to wait for at least two years before they allow their bankruptcy discharged client to apply for a mortgage. In some cases though, you can be able to apply for a mortgage eighteen months or so. This will all depend on your financial behavior between the times of your bankruptcy discharge date until the time of your mortgage application.

The second step is to establish new credit accounts. This may sound scary, but if you do not make the same mistakes as what you did before everything will go on your favor. You will need to open new credit accounts to increase your credit scores. New credit accounts may involve opening new major credit card, store credit card, automobile loan, and so on. And once you have secured obtaining these types of cards, you will need to do three things. These are, to always make your timely payment, maintain low balances, and payoff the balance each month.

Lenders will see that you are financially responsible if you manage you cards well and maintain regular and well-timed payments. Being financially responsible will allow you to be eligible for an unsecured credit card. Also, within two years you may have the privilege to get a mortgage or auto loan. If you are thinking of applying for a mortgage earlier than the two year period, you will have to search for a lender that can help you approve mortgages for people that had bad credit standing. Do not be surprised if you find out that this type of lender requires larger deposit and have high interest rate, because that is how the way it is. But if you really want it sooner than two years, then this type of lender is your best option.

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Debt Settlement Could Be a Reasonable Alternative to Bankruptcy

2010-07-27T13:39:00.000-07:00

Debt Settlement Could Be a Reasonable Alternative to Bankruptcy

Times are tough. No one seems to have enough money to make ends meet, and in some cases a person's financial situation has become so bad, that they are seriously starting to think that bankruptcy might be the only option.

What few people understand is what all goes into filing bankruptcy. We assume that since we don't have enough money to pay our bills, than bankruptcy is the only option we have left, and that once we have admitted we are no longer able to fulfill our financial obligations, the worse of the situation is over.

The Cost of Bankruptcy

The reality is that bankruptcy is a very complicated process. Even more importantly it is expensive, really expensive. There is a really good chance that if you are already having a difficult time paying your bills, that you won't be able to afford to file for bankruptcy.

Before you file for bankruptcy, you need to evaluate your finances and determine how much you can reasonably afford to spend filing for bankruptcy.

The average filing cost for bankruptcy usually ranges from $189-$274, and that is just the cost of filing. Just because you have filed for bankruptcy doesn't mean that you will be officially declared bankrupt by the court.

Since filing for bankruptcy is so complicated you really need to hire the services of an experienced bankruptcy lawyer. Since the lawyer knows you are struggling financially, they are going to insist on being paid up front. The more complex your finances are, the more time your lawyer is going to have to dedicate to your case, which means the more it is going to you are going to have to pay.

If you realize that you can't afford to file doesn't mean that you have to resign yourself to dealing with harassment from your creditors for the rest of your life. There are alternatives to bankruptcy that could be perfect for you.

Debt Settlement

One of the best alternatives to filing for bankruptcy is debt settlement. Debt settlement is a term that is used to refer to the process of striking a deal between the debtor and their creditors. This process is usually accomplished with the assistance of a debt settlement company who negotiates with a person's creditors.

People are often surprised by how willing creditors are to work with someone who is trying to pay their bills. It isn't unusual for a creditor to forgive interest rates and late payments provided the debtor is willing to pay of the principal of the loan. While most debt settlement companies do charge for their services, the charges usually add up to less than filing for bankruptcy. The other advantage to selecting debt settlement over bankruptcy is that the debt settlement won't have such a devastating effect on your financial future.

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Bankruptcy Auto Loan : Knock at the Right Doors

2009-10-23T03:02:00.001-07:00

Most people who have filed for bankruptcy or have poor credit ratings give up all hope of getting a car loan in the foreseeable future. Not many people are aware, however, that getting car loan after bankruptcy is absolutely possible. Of course, you need to be prepared to find the going tough because most banks and lending institutions will charge an arm and a leg in interest. Read on to find out how you too can qualify a bankruptcy car loan.

Two Kinds of Auto Lenders

Lenders today belong to two different categories. Lenders who belong to the first category are traditional in nature and have a conventional outlook as far as borrowers are concerned. These lenders are concerned with bare facts and will not understand or sympathize with the fact that you went bankrupt because your company went bust and you lost your job in the process. These lenders will almost certainly refuse to give you a bad credit car loan. Lenders who belong to the second category tend to be more broad-minded than the first and have a more open outlook. They will examine your financial circumstances thoroughly and try to understand why you couldn’t pay your previous debts and whether you are genuinely able and willing to discharge your responsibilities. You'd be surprised that lenders belonging to the second category, commonly known as sub-prime lenders, far outnumber the first. But even they cannot entirely ignore your bankruptcy. They will certainly charge higher rates of interest for bankruptcy auto loans because of the risks associated with this kind of financing. On the other hand, if you went bust because of reasons beyond your control, loss of a job or huge medical expenses for instance, they will almost certainly extend bad credit car finance to you. What you need to do is to keep your potential lender informed about the exact state of your finances. If you have landed yourself into the mess of bankruptcy due to financial mismanagement and are still desperate for bad credit auto finance, try and convince the lender that you have learnt your lesson, mended your ways and will repay the loan on a regular basis.

Getting a car loan with bad credit after filing for bankruptcy isn’t a piece of cake, so you will need to approach several potential lenders and prepare yourself to be rejected several times over before someone agrees to lend you that much-needed money.

http://blogs.finditt.com/carloan12/Post.aspx?postID=59344#

Choosing a Bankruptcy Lawyer - What Should You Look For and What Should You Avoid

2008-08-22T01:52:00.003-07:00

There are many different ways you can go about finding a good bankruptcy lawyer. You can ask friends and family, search the internet, contact the American Bar Association, or even look in the yellow pages.

Talking with or asking your friends and relatives might bring a competent attorney but there are also possible drawbacks. First of all, many people are uncomfortable or downright embarrassed by their failure at managing their finances. For this reason they do not want anyone to know about their upcoming bankruptcy. Also, the person you ask may not be familiar with any bankruptcy lawyers and then you shared this very personnel situation for nothing.

The best option for finding an experienced attorney, in my opinion, is asking for a referral from another attorney. Someone in the legal field is not only familiar with other attorneys but also qualified to give his or her opinion. They would not want to recommend you to one that would do a shoddy job because this could cloud your judgment of them.

You like many may think that contacting the American Bar Association (ABA) or your Attorney General will generate a qualified legal counsel. However, you should only proceed with this if you use extreme caution. The more experienced attorneys usually do not include themselves into the databases that they use.

The Yellow Pages and the Internet referral services are another good way to find Lawyers that specialize in Bankruptcy. You will be able to search attorneys in your area that are specialist in handling bankruptcies. They sort them out for you. If you pay attention to the ads you can find attorneys that also offer free estimates.

The size of a firm is not really as important as the experience your attorney has. It is true that larger firms have more employees to help with research and filings but some of the best lawyers work in private offices rather than the large firms. What is important is that the Bankruptcy attorney you select knows the law and is able to reserve ample time and attention for your case.

You can also find more info on Bankruptcy Guide. Bankruptcybliss.com is a comprehensive resource which provide information about Bankruptcy.

Article Source: http://EzineArticles.com/?expert=Tim_Wilson

Chapter 12 Bankruptcy - Who Does it Help

2008-08-22T01:52:00.002-07:00

To qualify for Chapter 12 you must have a family history in one of the two industries and have had at least 50% of your total family income from either farming or fishing. In addition you must also have no more total debt than $3,237,000 if your are a farmer, or no more than $1,500,000 if you are a fisher. And one further condition is at least 50% of the total debt must be related to business operation for farming or 80% for fishing.

Partnerships and corporations can also file for a Chapter 12 Bankruptcy if all of the following are met:

* More than 50% of the stock must be owned by one family. The stock cannot be publicly traded.
* The majority family must be personally managing the operation.
* No less than 80% of the corporations value must be related to farming or fishing.
* The total debt amount is the same as for an individual - farming $3,237,000 and 50%; fishing - or $1,500,000 and 80%.

To complete the form to file for a Chapter 12, you will need the following information:

* all creditors, amounts owed and nature of their claims
* Debtors income and source.
* property owned by debtor.
* Descriptive list of farming/fishing expenses

If you are married, you must include this information for your spouse even if the spouse is not included in this petition.

A trustee is appointed by the court that will hold meetings of your creditors after you file your petition. The debtor is placed under oath and is questioned by both the trustee and creditors concerning his debt and repayment plan.

The debtors are given their amounts and dates that payments will be made and a the creditors are reassured under penalty of law that the debtor will repay the debts deamed reasonable.
Once a payment plan is reached and all parties sign it, as long as the judge agrees the bankruptcy proceedings are concluded.

If you can be classified legally as a Family Farmer or Family Fisherman, Chapter 12 Bankrupty can hold significant advantages over Chapter 7 or Chapter 12 Bankruptcy. You stand to lose a lot more if you do not attempt a Chapter 12 if you qualify.The choice is yours.

You can also find more info on Bankruptcy. Bankruptcybliss.com is a comprehensive resource which provide information about Bankruptcy.

Article Source: http://EzineArticles.com/?expert=Tim_Wilson

Federal Exemptions in Bankruptcy - What Are They and Who Regulates Them

2008-08-22T01:52:00.001-07:00

The Bankruptcy Laws and regulations are legislature that congress creates. The laws were most recently updated or revised in 2005. The revision set up a standard set of property a debtor can keep exempt from creditors in a bankruptcy petition. The congress allows each state to decide whether they are going to use the federal exemption list or to create their own list. The states that have chosen to follow the federal list of exemptions follows:

Arkansas
New Mexico
Massachusetts
Texas
Connecticut
Pennsylvania
Michigan
District of Columbia
Rhode Island
Washington
Hawaii
South Carolina
Wisconsin
Minnesota
Vermont
New Jersey

In reviewing the various exemptions, the values represented are the value oruble the value of said assets.

Federal Exemptions [United States Bankruptcy Code 11 United States Code Sec. 522(d)]: include the following:

• Primary Residence - Equity in your home is exempt up to $17,450. If you do not have that much equity in your home, you may apply up to $8,725 towards any other property or burial plot.

• Pensions/Retirement Plans - Any ERISA-qualified pension plan benefits. These must be required as support though

• Insurance - Disability payments, life insurance payments (for persons who depend on debtor), life insurance policy with value less than $9,300 in dividends or interest and life insurance contracts.

• Public Benefits - Exempt from bankruptcy include Social Security and Veteran Benefits, Unemployment Compensation, Public assistance and compensation as a crime victims.

• Personal Property including pets, crops, personal clothing, books, household appliances, home furnishings, household goods, health aides, up to $1,150 in Jewelry, up to $425 per musical instruments, motor vehicles worth less than $2275, benefits from personal injury (up to $17,425 but excluding amounts designated for pain and suffering or financial loss) and wrongful death recoveries for person debtor depended on for support.

• Miscellaneous Expenses - Alimony or Child

Wildcard - In addition to the specific exemptions previously mention,you can use a special $925 exemption of any property.

If you're in one of the sixteen states which recognize the Federal exemption statute, you can choose the more favorable exemption list.It's also important to review states residency requirements for Bankruptcy filing, since a neighboring states statute might be more advantageous for you.

You can also find more info on Types Of Bankruptcy. Bankruptcybliss.com is a comprehensive resource which provide information about Bankruptcy.

Article Source: http://EzineArticles.com/?expert=Tim_Wilson

Should You Declare Bankruptcy Now Or Do You Have Options?

2008-08-07T21:24:00.004-07:00

When is the right time to declare bankruptcy? Many studies indicate that the time to seriously consider filing bankruptcy is a long way from the point where most people take the plunge. Since bankruptcy should really be considered only as your option of last resort, why do so many people throw in the financial towel early?

There can be many reasons for this. One is the psychological impact of feeling that you are a failure. But you need to really look at this aspect from multiple perspectives, none of which would indicate that you are a failure at all. Studies of bankruptcy cases over the past years have shown that the vast majority of people who declare bankruptcy do so not because of their own financial mismanagement, but rather from being caught up as a victim of circumstances. Life happens and much of life cannot be predicted, so a major financial catastrophe like an expected job loss or layoff, high unexpected medical bills, a messy divorce, and many other things may have happened to bring you to this state, none of which indicate any type of financial mismanagement on your part.

Or perhaps it was a bit of financial mismanagement that brought you to the point of starting to declare bankruptcy. Does that mean you are a failure? No, not unless you did not learn anything about what not to do next time. If it was a solid learning experience and you will recognize the mistakes you made last time, you cannot consider it a failure.

Most people throw in the towel early before they have thoroughly investigated all their possible bankruptcy alternatives and options. A big reason for this is the stress that builds up knowing that bills are due, bills are overdue, and you are at the point where you even hate to answer the phone because you don't know if it's your sister calling or yet another creditor who is hounding you about a past due payment. This all builds stress and people just want to get on with their lives.

But understanding this aspect of it, filing bankruptcy is probably the last thing you really want to do unless you really need to, and most people have not looked at their options closely enough. The most commonly overlooked alternative to bankruptcy is debt consolidation service. This is not another loan, which is exactly what you do NOT need at this point, but rather debt consolidation is a service that will take over your bills, negotiate with your creditors, and in almost all cases, will significantly lower the mount of money going out to your creditors every month. For example, if you are paying out $4000 a month right now on your bills, after you are setup with debt consolidation, your monthly layout could be under $2000 a month. Would that extra $2000 per month give you the financial breathing room you need right now so you don't have to declare bankruptcy? In many cases, the answer to that question is a resounding yes.

You need to fully understand where you are at so that you can make an intelligent decision about bankruptcy and to know if it is the right move for you or not. With the recent changes in bankruptcy law, this is no longer the simple process it once was. Although you probably do not want to spend money on a bankruptcy lawyer, you need to consider that that might also be the smartest money you've spent all year, since a qualified bankruptcy attorney can look at your financial situation and offer advice and guidance as far as what options you should consider, or if bankruptcy is really your best option, how to go about the process. You will almost certainly save more than the bankruptcy attorney's fees by getting this sound legal advice and guidance.

A place to start would be with a bankruptcy evaluation to find out where you are at and what options you have. A free bankruptcy evaluation is offered at our web site to help you through this very emotional and frustrating process, and it is a great way to get your head straightened out as far as what your best options are.

For more insights and additional information about whether you should Declare Bankruptcy as well as getting a free bankruptcy evaluation from a qualified bankruptcy lawyer local to you, please visit our web site at http://www.bankruptcy-data.com

Article Source: http://EzineArticles.com/?expert=Jon_Arnold

What You Must Know Before Filing For Bankruptcy

2008-08-07T21:24:00.003-07:00

Before you decide that filing for bankruptcy would be the easiest thing for you to do, you may want to do some additional thinking about this whole scenario.

You must first consider whether your debts are dischargeable or not. You must decide if you want to keep all or part of your debt, costs involved, the benefits of filing bankruptcy, what kind of financial future you will have after you have filed for bankruptcy, the effect it may have on your employment or on your prospective employment and how your credit score may be changed and whether it will make an influence on whether you are able to rent or purchase a place to live.

Are Your Debts Dischargeable?

After doing some research, you may find that your debts may not be dischargeable, and therefore filing for bankruptcy will do no good. This is where your lawyer or credit counselor comes in. They can sit down with you and will be able to review your debts to see if they are dischargeable.

Do You Want To Keep Your Debt?

Let's go over the two types of debts. A "secured debt" is one that is secured by collateral, such as a car loan or a mortgage. "Unsecured loans" are ones such as credit card debts, legal fees, medical bills and utility bills. You will want to discharge the unsecured loans and keep the secured debt if you can.

Is The Bankruptcy "Cost" Greater Than The "Benefit"?

Many people think that just by declaring bankruptcy, their financial slates are wiped clean. That is simply not true. Most debtors have to cough up at least a portion of their debts, and the courts may force you to sell assets to do that. You will find that is will be very hard to obtain credit for years. You will have the bankruptcy record showing up on your credit score for at least seven to ten years.

Should I file or should I have a Lawyer file for me?

I would definitely say that you should see a lawyer for this. This is a very important matter and one that you cannot afford to make a mistake in. That is where most people go wrong. Many people decide to file themselves. They thought they could just put everything under their spouse's name. Wrong! They should have filed jointly. Don't sell yourself short. Seek legal advice. You may not be aware of all of the new laws surrounding bankruptcy but your lawyer will. Spend the money - get a lawyer! You will very likely recoup the legal fees in the total amount that you save overall.

If You Come upon More Financial Problems What will Happen?

If your problems have emerged from your lifestyle rather than a sudden catastrophe, you want to put some careful thought into declaring bankruptcy. It is something to come out of an unexpected failure in business, lose a job, or have a catastrophic illness and get back on your feet. However, if you are one that cannot manage your own finances, then you must seriously think about declaring bankruptcy. You could be put in a position that is worse than your first.

In conclusion, if you are thinking about bankruptcy, you must weigh all of the pros and cons. You don't want to turn around one day and have your first situation be worse for filing bankruptcy.

For more insights and additional information about things you must know before you begin the process of Filing For Bankruptcy as well as getting a free bankruptcy evaluation from a qualified bankruptcy lawyer in your area, please visit http://www.bankruptcy-data.com

Article Source: http://EzineArticles.com/?expert=Jon_Arnold

What Is Bankruptcy? - Know Before You Are Too Late

2008-08-07T21:24:00.002-07:00

Are you disgusted with harassing phone calls of your creditors?

Are you living a debt struck life?

Naturally, Bankruptcy would come into your mind first. It certainly helps you to get rid of your creditors. It is also one of the fair methods to satisfy your creditors. When your mortgage companies start sending you letters, make your life horrible with phone calls, you might go for Bankruptcy.

Bankruptcy is a court process, which is meant for the consumers and businesses. It helps to eliminate the debts or repay them under some conditions. There are generally two types of Bankruptcies:

Chapter 7 Bankruptcy or liquidation Bankruptcy
Chapter 13 Bankruptcy or reorganization Bankruptcy

Chapter 7 Bankruptcy:

This form of bankruptcy is more popular among the debtors than the other one. You have to go for liquidation process. Thus, you can repay all your debts at a single go. However, in certain cases it might not be as helpful as people think about. So, are you thinking to opt for Chapter 13 bankruptcy?

Chapter 13 bankruptcy:

Chapter 13 bankruptcy is also known as reorganization bankruptcy. You can repay your debts in years. This kind of bankruptcy is applicable to those individuals who have non-exempt property. If you have a predictable and fixed income, you can go for it.

Are you sure, you want to go for bankruptcy?

Let me inform you about everything regarding Bankruptcy. Have you already decided to go for it? Let us discuss some important factors:

You have to go for a liquidation process to repay your debt.

In Chapter 13 Bankruptcy, you have to pay the amount in 3 to 5 years. Again, you are under debts. The harassing phone calls might not stop coming.

You cannot be at your mental peace until your debts are over.

An alternative to Bankruptcy:

If any of you is thinking for a better option, we might serve you! You can choose Debt consolidation to solve your problems. While Bankruptcy is an older one, Debt consolidation is a new solution to make you a debt free person.
Let us have a look how debt consolidation can be a safer choice:

A debt consolidation company minimizes your debts to 40-60% while Bankruptcy cannot.

They consolidate all your debts and make it easier for you to pay.

A debt consolidation firm solves your financial problems and you need not worry in future.

Sometime your taxes are also reduced.

Dear debtor, do you agree that Debt consolidation is a better option to solve your debt problems? Now neither the creditors will harass you nor will you have to sell your properties. Moreover, you will get financial guidance from experts.

Article Source: http://EzineArticles.com/?expert=Paromita_Chowdhury

Paromita Chowdhury - EzineArticles Expert Author

Bankruptcy - The Last Resort For Credit Repair

2008-08-07T21:24:00.001-07:00

Bankruptcy may destroy your credit. So why would you want to file for bankruptcy if you're trying to repair your credit?

For starters, bankruptcy may wipe out debts that have become unmanageable. These debts will drag your credit score down with each missed payment and inevitably destroy your credit. If you're faced with debts that you can no longer pay you may not have any choice but to file for bankruptcy.

If you qualify, bankruptcy can wipe out many of your debts and "clean the slate" so you can regain control of your finances. Bankruptcy is more a tool of debt relief than a tool of credit repair.

You need to carefully weigh the pros and cons before filing for bankruptcy. Are your debts going to be so unmanageable that they'll hurt your credit report for years to come? Is a bankruptcy going to be better for your credit history in the long run than all the debts that may be accumulating on your credit report today?

Bankruptcy should only be used as part of a long-term plan to repair your credit. A bankruptcy will be listed on your credit report for at least 7 years and will negatively impact your credit score for at least that period of time. You should only file for bankruptcy if you plan to take concrete steps to repair your credit after your bankruptcy is finalized.

Depending on what debts you have incurred, you may file for either Chapter 7 or Chapter 13 bankruptcy. A Chapter 7 bankruptcy stays on your credit report for 10 years, while Chapter 13 stays on your credit report for 7 years.

Under Chapter 7 bankruptcy, certain eligible assets may be liquidated to pay off your debts. With Chapter 7 bankruptcy, your debts will either be redeemed or reaffirmed. With redemption, you pay any secured creditors a lump sum as collateral for each secured debt. The lump sum you pay is based on the current value of any asset the creditor has secured. Any remaining debt is discharged after you make a lump sum payment and the asset becomes yours free and clear. If you can't pay the lump sum your asset may be seized and resold by the creditor.

Any of your debts that are reaffirmed may be made payable under the original terms of the agreement you signed with a particular creditor. The debt will still be legally enforceable and must be repaid, with the creditor holding a security interest on the debt until full repayment takes place.

Under Chapter 13 bankruptcy, you have to undergo a mandatory repayment plan to pay off your debts within 5 years. This will allow you to reorganize your debts so you can keep any property like a home or automobile from being seized as part of the bankruptcy proceedings.

Filing for bankruptcy won't eliminate any alimony, child support, fines, taxes, judgments against you or student loan debts. You may be able to get some student loan debts liquidated if you can prove extreme financial hardship.

If you're found guilty of committing fraud in establishing a line of credit for yourself, you'll be fully responsible for all the debts incurred in these credit lines.

Once you've successfully filed for bankruptcy you can finally begin the long and arduous road to credit repair. You may still qualify for some lines of credit with very high interest after you file for bankruptcy and should just use these credit lines to show that you can manage your debt this time around. Make a few small purchases and make small enough monthly payments that will ensure a small portion of your debt will still remain on these accounts from month to month. Positive repayment history on these accounts will slowly build your credit rating once again.

Bankruptcy will provide you with no quick fixes if your ultimate goal is credit repair. Only time and a lot of diligence on your part will get your credit back on track. The steps you take today will have an impact on your credit for years to come.

John Campbell is the writer and editor of CashBuzz, A financial portal with the latest articles on money management and links to credit cards for bad credit as well as other loan products for the under-served credit market. This article may be reprinted on your Web site if the copyright, author information and active link are included.

Article Source: http://EzineArticles.com/?expert=John_Campbell

Eastern Pulp & Paper plans reorganization

2008-02-15T04:08:00.000-08:00

Eastern Pulp & Paper Corp. filed a reorganization plan with the bankruptcy court in Portland, Maine, and said it would obtain new long-term financing to support its operations and financial obligations. The company expects the reorganization plan to be approved by the bankruptcy court in the fourth quarter. It also hopes to obtain new funds this fall, which will add to existing financingarrangements approved by the court.The plan would repay 100% of debt to secured lenders and creditors and 10% to holders of unsecured obligations. In addition, $4.4 million of subordinated debt would be converted to equity, according to Eastern

Adelphia files for bankruptcy protection

2008-02-15T04:06:00.000-08:00

OUDERSPORT, Pa. (AP) -- Adelphia Business Solutions said Wednesday that it and certain units filed a voluntary petition for Chapter 11 bankruptcy protection, following months of struggling to meet debt obligations and multiple downgrades from major debt rating agencies.

The Coudersport, Pa., telecommunications spinoff of cable company Adelphia Communications Corp. said it filed for bankruptcy because of the virtual shutdown of the telecom capital markets and the overall decline in the industry.

Adelphia Business said it is in talks with its debtholders regarding their claims. The company also said it signed an agreement with Adelphia Communications and an affiliate of the majority shareholder family for debtor-in-possession financing of up to $135 million. The financing, which is subject to bankruptcy court approval, will provide immediate funds, allowing the company to satisfy obligations from daily business operations.

Boundless Corp. files Chapter 11

2008-02-14T02:49:00.000-08:00

After hemorrhaging cash and shedding some operations, Boundless Corp. (Amex: BND), the parent company of Boundless Technologies and Boundless Manufacturing Services, Thursday said it had filed for Chapter 11 bankruptcy protection.

The company said it is working with a debtor-in-possession financier to provide it with cash as it reorganizes.

Boundless said it anticipates many customers will "experience an improvement in service" during the bankruptcy due to that additional financing.Boundless makes desktop computer components, including printed circuit board assemblies and monitors and keyboards.

US bankruptcies reach new high

2008-02-14T02:47:00.000-08:00

> AMERICAN INDIVIDUALS and businesses went bankrupt in record numbers last year. The number of bankruptcies filed during the year jumped 19 per cent to 1.49 million from 1.25 million in 2000. That total surpassed the previous record of 1.44 million filings in 1998. Economists had predicted bankruptcies would reach new highs in 2001 as the recession took its toll on the finances of consumers and corporations.

Buying a Car After Bankruptcy

2008-02-02T02:25:00.001-08:00

What happens if you need to get a car loan after you file for bankruptcy?

It is not impossible to get a car loan after bankruptcy; it will just cost you a little more. Many reputable lenders work with people who cannot obtain auto financing through conventional channels.

These lenders will consider past problems—bankruptcy included—in the light of your current circumstances, e.g. employment status, monthly income, debt obligations, etc. These things will have more of an impact than your bankruptcy on the details of your loan package, such as: down payment required, payment qualification, interest rate, and loan term.

It is very easy to apply for a bankruptcy car loan online. The application will give the lender permission to access your credit report, so make sure you check it first to see that all debts and credit lines involved in the bankruptcy have been marked as discharged.

If you get a car loan after bankruptcy and make all the payments on time, it can help re-establish your credit.

Changes in the Bankruptcy Law

Personal bankruptcy law has changed with the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Anyone planning to file for bankruptcy is now required to undergo credit counseling from a government-approved organization before filing. They must also complete a debtor education course after filing for bankruptcy in order to have their debts discharged.

Both the credit counseling and debtor education course must be conducted by organizations that have been approved by the Department of Justice’s U.S. Trustee Program. To protect against fraud, the certificates of completion are produced through a central automated system and are numbered.

Pre-filing counseling and post-filing education may be provided in person, on the phone, or online. These required programs are meant to help those who file for bankruptcy to change their financial habits. Among other things, the counseling will include information on developing a budget, managing money, and using credit wisely

Bankruptcy Mortgage Information For Homeowners

2008-02-02T02:21:00.000-08:00

Bankruptcy attorneys estimate that one in every 53 U.S. households filed for bankruptcy in 2005. Most of these people didn't lose the farm in Vegas or drink away their life savings. Chances are their financial problems stemmed from one of three sources: job loss, divorce, or unexpected and expensive medical emergencies.

Most homeowners who file for bankruptcy do not lose their homes. Bankruptcy laws are designed to satisfy creditors and protect debtors. Putting a family out on the street helps no one.

Ted Janger of The American Bankruptcy Institute stresses that, “It is important to have competent counsel advise you, both about the choices among chapters and about how best to make sure that bankruptcy operates to solve your financial difficulties, rather than just as a hiatus.”

Establishing Credit After Bankruptcy

For people who got into trouble with credit, the thought of using it again can be frightening. It’s a catch-22. To be considered a good candidate for a new mortgage or car loan, consumers have to rebuild their credit. If they don’t, when a prospective lender looks at their credit report, all they will see is the bankruptcy. There won’t be a new track record of handling credit responsibly or of improved financial management skills.

It doesn’t seem logical, but after people have successfully filed for bankruptcy, they will receive a flood of new credit offers. If they accept a few well chosen ones and pay more than the minimum payment each month, this will appear as positive data in their credit report.

One form of new credit would be a first mortgage refinance or a new second mortgage. Either transaction would depend on the amount of equity in the home and be subject to any guidelines established by the bankruptcy court.

To learn more about a bankruptcy mortgages, or to receive a complimentary quote, visit www.e-lends.com. Even after bankruptcy, you should still be able to get a competitive mortgage.

New Bankruptcy Law - How Filers Will Be Affected

2008-02-01T02:19:00.001-08:00

The new bankruptcy law, officially known as The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, is aimed at making it more difficult for debtors to file for bankruptcy under chapter 7.

Prior to the new law, which took effect on October 17, 2005, potential filers could walk away from their debts after giving up most of their assets – which in most cases were not substantial. The new bankruptcy law makes it tougher to walk away debt free.

One of the most important provisions of the law, requires debtors to pass the “means test”. In summary, the test determines whether a bankruptcy filer has enough disposable income to repay their debts. A person’s whose income exceeds that of their state of residence’s median income will probably not qualify, to file under chapter 7 but rather under chapter 13. Chapter 13 sets up a repayment schedule for debtors to repay their debts - thus debts are not forgiven but rather the filer has more time to pay them back.

Another substantial change is that consumer credit counseling education is mandatory prior to filing for bankruptcy. The counseling education must be acquired through a government approved non-profit credit counseling agency.

Lastly, shopping for a bankruptcy attorney may be more difficult. The new law holds a filer’s bankruptcy attorney responsible for ensuring that the filing is legitimate. In fact, the attorney has to sign the petition and verify that it is “well grounded in fact”.

Also a bankruptcy attorney may not advise a filer on any matters that leads to the accrual of additional debts prior to filing for bankruptcy. It’s a catch-22 since the act of filing for bankruptcy itself, will naturally lead a filer to incur more debt.

IVA- A Legitimate Alternative to Bankruptcy

2008-02-01T02:17:00.000-08:00

The UK is facing a debt crisis highlighted by the fact that around 45,000 people filed for bankruptcy in 2005.

Most people seek to avoid bankruptcy at all costs. This is because of the stigmas and disqualifications associated with going bankrupt. The government recently introduced a legitimate alternative to bankruptcy in the form of an IVA.

The rise in the number of people seeking to set up IVAs suggests that it is widely viewed as a good alternative to bankruptcy. Indeed, of the 70,000 insolvencies in 2005, one third were IVAs.

An IVA allows people in serious debt to come to a formal debt re-payment arrangement with their creditors rather than having to face bankruptcy.

IVAs are suitable for people with debts over £15,000 who can afford to pay at least £200 a month. If a creditor agrees to accept the IVA proposed by the debtor then:

• Interest on the loan is frozen
• Legal proceedings are stopped
• The overall debt is reduced

The reason why an IVA is often a good alternative to bankruptcy is that it benefits both the debtor and the creditor.

From a creditor’s perspective, an IVA is a good alternative to bankruptcy because there are no fees or legal proceeding involved with an IVA, unlike with bankruptcy. Furthermore, an IVA offers a greater repayment of the debt than would otherwise be achieved if the debtor were made bankrupt. From the debtor’s point of view, an IVA is a good alternative to bankruptcy because it does not have any stigmas of disqualifications associated with it.

If a debtor keeps up with his or her IVA re-payments he or she will be deemed to be debt free within five years. Other advantages of an IVA that make it a good alternative to bankruptcy include:

• Monthly re-payments are based on what the debtor can actually afford to pay
• In most cases, a debtor can keep his/her car with an IVA
• With an IVA as much as 80% of the debt is written off completely

As a result, an IVA is an excellent alternative to bankruptcy and because IVAs are supported by the government the alternative is a legitimated and regulated one.

Chapter 7 Bankruptcy Forms

2008-01-31T03:35:00.000-08:00

Cash is the lifeblood of any human activity. If you do not have the necessary cash, you are considered to be bankrupt in the U.S. Today, many citizens file for bankruptcy. Taking this into consideration, the U.S. government has come up with chapters to deal with bankruptcy. One of the many chapters is Chapter 7 bankruptcy. This is also called straight bankruptcy and is a liquidation proceeding. This way it saves the debtor from loosing all his assets. Moreover, it helps to give a person a fresh start in his financial career.

A certain number of forms need to be completed to proceed with the bankruptcy chapters. Chapter 7 bankruptcy is no different. This form gives a statement of the current monthly income and expenditures and is completely official in nature. This has to be completed by most of the individuals filing for bankruptcy relief. hapter 7 bankruptcy forms includes a form that serves as a means of testing purpose of the debtor filing under the said chapter. Some of the questions and details asked on these forms come from the Census Bureau and the Internal Revenue Service.

As one starts filling out the forms and makes a petition for the Chapter 7 bankruptcy, he needs to give the following list of details. The form will need a list of all creditors, the amount and the nature of claim involved. It will also have to provide proper details about the source, amount, and the frequency of the debtor?s income. Moreover, one should also include information pertaining to the debtors? property and monthly living expenses, such as utilities, taxes and expenses on medication and transportation

Bankruptcy Home Equity Loan Choices

2008-01-31T03:33:00.000-08:00

Many who file for bankruptcy use home equity in their settlement arrangement. Bankruptcy does not remove any liens on a home such as a mortgage. But if there is more home equity built up than is required to cover the loan, it is an asset that can be tapped into for needed cash in accordance with the rules of the type of bankruptcy a person has filed.

Bankruptcy is a legal proceeding where a debtor declares an inability to pay debts as they become due. Since the Bankruptcy Abuse Protection and Consumer Protection Act of 2005, personal bankruptcy filings for the year ending June 30, 2006, fell 9.46 percent to 1,453,008.

The two most popular bankruptcy options are:

Chapter 7 - Its purpose is to achieve a fair distribution of the debtor’s available non-exempt property. Unsecured debts not reaffirmed are discharged, providing a fresh financial start.

Chapter 13 - Available only to someone with regular income whose debts do not exceed specific amounts. It is used to budget future earnings under a plan to pay unsecured creditors.

In a chapter 7 bankruptcy, every state has its own laws regarding the type and amount of property a person can keep. Under chapter 13, a person does not have to surrender any property.

“It’s important to have competent counsel advise you,” says Ted Janger of The American Bankruptcy Institute; “both about the choices among chapters and about how best to make sure that bankruptcy operates to solve your financial difficulties, rather than just as a hiatus.”

Bankruptcy negatively impacts your credit in the short and medium term because it remains as a black mark on your credit report for up to ten years. However, some creditors offer new loans to bankruptcy debtors because they cannot file bankruptcy again for many years.

Hawaii Bankruptcy Laws

2008-01-30T01:35:00.000-08:00

The declaration of bankruptcy allows debtors to solve significant financial debts after their non-exempt assets are distributed. Bankruptcy in the United States falls under Federal jurisdiction by the United States Constitution (Article 1, Section 8).

However, bankruptcy is implemented as statute law, and relevant statutes are incorporated within Bankruptcy Code of Title 11 of the United States Code. At present, two forms of filing bankruptcy are available to individuals: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is a liquidation of assets, while Chapter 13 involves a reorganization by which the debtor creates a three- to five-year payment plan.

Although bankruptcy cases are filed in the United States Bankruptcy Court, they are often highly dependent upon state laws. Hawaii is one of the thirteen states in the U.S. that offers a choice between federal and state bankruptcy laws.

Hawaii bankruptcy laws provide exemptions that save a part of the properties from bankruptcy. Details of the exempted property are provided in the Hawaii bankruptcy chart. When bankruptcy is filed in Hawaii, an individual gets federal exemption in addition to Hawaii exemptions. According to Hawaii bankruptcy laws, an exemption limit applies to any equity in property secured by loans. Properties included in the Hawaii exemption chart are homestead (up to $30,000 for senior citizens and $20,000 for others), all insurances, property of business partnerships, pensions, personal property such as appliances, books, burial plots, clothes, jewelry to $1,000, and motor vehicles to $2,575, public benefits, tools of trade, and wages to minimum of 80%. No wildcard exemptions are given in Hawaii.

In Hawaii bankruptcy law, Chapter 7 filing has advantages such as a complete fresh start, immediate protection, lack of a minimum limit on the debt, and quick discharge of the case. The advantages of a Hawaii Chapter 13 payment plan are that it enables a person to keep his property, has more dischargeable debts, gives more payment time, and separates creditors by class. Major changes in the new act effective October 17, 2005, include a means test, proof of income, state exemptions, counseling, and child support.

Declaring bankruptcy is an important decision and quite complicated in its implementation. Hiring an attorney with experience in the field concerned is generally recommended.

Bankruptcy

2008-01-30T01:34:00.000-08:00

The legal provision of bankruptcy, though sometimes misused, is a progressive and often merciful process. By it, a hopelessly indebted individual can make an official declaration of financial inability and be free of obligation. This may be on a temporary or permanent basis, depending on the degree of insolvency.

With new amendments in US laws, there is little or no social or corporate stigma attached to filing for bankruptcy. Filing for bankruptcy, though a matter of public record, no longer means that it becomes a matter of public knowledge. Effectively, this is an incentive for the bankrupt party to make another attempt at financial solvency. An individual can file for bankruptcy under Chapter 7(for irreversible insolvency) or Chapter 13(for temporary insolvency).

The benefits of filing for bankruptcy include restoration of bank credit via a secured credit card. This requires a certain deposit to be made, but a new line of credit can be established within two years of doing so. Meanwhile, the bankrupt person has assured freedom from harassment by previous creditors.

The US Congress amended the US bankruptcy code(ratified in 1978) in 2005, and further amendments were made on October 17, 2005, to discourage the abuse of the generous provisions available. In fact, the passing of these amendments was preceded by a literal stampede on bankruptcy courts by people hoping to beat their enactment.

Under the revised Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, (BAPCPA), someone filing for bankruptcy is subjected to stringent tests to establish genuine insolvency and present income. Another provision is that people dwelling in any particular state, must be residents of that state for at least two years to be eligible. Bankruptcy laws do not provide a shelter against alimony and child support obligations.

Bankruptcy Home Equity Loan Choices

2008-01-07T05:30:00.000-08:00

Bankruptcy Fundamentals

2008-01-07T05:28:00.000-08:00

Bankruptcies can be called “reorganizations” or ‘liquidations”, depending on which type of bankruptcy you decide to do. Both a “Chapter 7” and a “Chapter 13” bankruptcy are federal court processes that are meant to assist businesses or consumers to get rid of their debt or to repay the debt with protection provided by the bankruptcy court.

A Chapter 7 bankruptcy is considered a “liquidation”. If you own property, it is sold (liquidated) and the profit is used to pay off as much of your debts as possible and leaving you with enough to start over.

A Chapter 13 bankruptcy is a “reorganization” and is by far the most common type of consumer bankruptcy. Consumers who file a Chapter 13 typically repay their debts over a period of three to five years under the protection of the bankruptcy court.

If you are considering bankruptcy, you should understand that both variations of bankruptcy have exceptions regarding which types of debts are covered, who is eligible to file for a bankruptcy and what property you will be allowed to keep during a bankruptcy.

Chapter 7 Bankruptcy For individuals or businesses that are convinced there is no way to get themselves out of the debt they’ve gotten into, a liquidation bankruptcy (also called a Chapter 7), can be filed.

When you file Chapter 7 you will probably be required to sell some of your property (if you own any) in order to pay down some of your debt. When you do this, the Chapter 7 bankruptcy will then erase most (if not all) of your unsecured debts. Some property is considered exempt under the state and/or federal laws- meaning you probably will not have to sell your clothing, car or household furniture. If you don’t happen to own very much, your case may be considered a “no asset” case, and what property you do have will likely be considered exempt.

Recent changes to the bankruptcy law mean that any debtor wanting to file for a bankruptcy must first undergo credit counseling, budgeting and debt management counseling with approved counseling companies before debts will be removed. Individuals with higher income levels will not be permitted to file a Chapter 7 Bankruptcy and instead will be required to pay at least some of their debt under a Chapter 13.

Chapter 13 Bankruptcy

A Chapter 13 bankruptcy is for individuals who are earning money. It ‘reorganizes” the debt to make it possible for the individual to make payments to start paying off the excessive expenses with installments and over a period of three to five years.

Using Chapter 13 bankruptcy is a good way to repair your financial situation, and keep your home if you have one. Under a Chapter 7, you are almost always required to sell your home; while a Chapter 13 can keep you from going into foreclosure.

Credit Counseling Requirements for Bankruptcy

Credit counseling must be completed through an agency that is approved by the United States Trustee’s office before any person or business entity will be entitled to file for a Chapter 7 or Chapter 13. The reason this is required is because many individuals discover after they’ve undergone the counseling that they do not need to file bankruptcy, and can get themselves out of debt using an informal repayment plan. While you are required to participate in the counseling programs prior to filing for a bankruptcy, you are not required to use the repayment plan the agency might propose to you.

When the bankruptcy case has ended, you are required to attend another counseling session that teaches you about personal finance management. This session is designed to help you from getting into financial difficulties again with effective financial management.

Considerations Before Filing Personal Bankruptcy

2007-12-19T22:36:00.002-08:00

For some people, filing personal bankruptcy is the only way they can find their way out of overwhelming debt. Whether your debt is the result of not being able to pay your bills because you were laid off work or the result of poor financial decisions, there are a variety of things to consider before actually filing personal bankruptcy. When you first consider this option, you will need to decide if Chapter 7 or Chapter 13 will fit your needs better. As well, there are a variety of debts that cannot be included in your settlement.

Chapter 7 requires that a trustee sell off your nonexempt assets so that your debt can then be repaid. With Chapter 7 bankruptcy, there is the risk of losing your home, along with a majority of your other personal items. Therefore, before filing Chapter 7, it is important you have a full understanding how Chapter 7 works. When it is all said and done, if you file Chapter 7, you will no longer have your overwhelming debt.

Chapter 13 varies quite a bit from Chapter 7 bankruptcy. Chapter 13 requires that a portion or all of your unsecured debt is repaid. A repayment plan is established through the court. Payments can be made over a period of 36 months to 60 months, depending on the amount of the debt. The repayment amount is equal to or greater than the amount would be should you have chosen to go with Chapter 7 and liquidated your assets.

Although personal bankruptcy may seem like a great way to break free of your overwhelming debt, there are some types of debt that cannot be included when filing. Debt that occurs from student loans, taxes, child support, spousal support, criminal fees and charges made on a credit card 40 days before filing this cannot be included.

It is important that you realize filing personal bankruptcy will have a negative effect on your credit rating. This effect will last for approximately seven to ten years. Although your credit score will be affected, you can still obtain credit after you have filed bankruptcy. However, the credit that you will be able to obtain will carry a higher interest rate than it would if you didn't have a bankruptcy filing on your credit.

Filing this can also have other negative effects. For instance, if you would need to obtain life insurance you may have a harder time obtaining a policy. Many car insurance companies are now charging a higher premium if you have a bad credit score. Many employees are now running credit checks. Therefore, if you have this on your credit report, it may be harder to obtain a job. You may also experience psychological effects, such as depression.

For many, debt is a way of life. However, there are instances when the debt becomes more than you can handle. Personal bankruptcy is a way to help you deal with debt that you can no longer pay. If you are looking to file, it is important that you have a full understanding of the way it works, as well as the lasting effects it can have.

Understanding the Process of Filing Bankruptcy

2007-12-19T22:36:00.001-08:00

At one time, filing bankruptcy used to mean a fresh start for any person suffering from their mounds of debt. However, today, the government has made new laws that make filing bankruptcy harder and more complex than ever before. Gone are the days when you can take charge of your own bankruptcy. In today's world, if you are looking into filing bankruptcy, you should also be looking into finding an attorney since it is no longer a do-it-yourself process, especially with all the changes to bankruptcy law.

Bankruptcy is not something to take lightly, it is not the answer to all of your debt problems, and it is definitely not something you can undertake by yourself. While a bankruptcy attorney may cost you some money, they will make this money well spent thanks to their experience and expertise. They know just what papers to file, when to file them, and just what steps you need to take in order to successfully file for bankruptcy.

With that being said, here is what you and your lawyer should expect when filing bankruptcy.

Your attorney will file a petition. This petition is outlining all of your debts. This petition will also outline the type of bankruptcy you are filing such as, Chapter 7, Chapter 11, Chapter 13, or any other type. The new laws have made this petition extremely complex and difficult. It is your best bet to ensure that your attorney prepares and submits the petition for you.

The next step is called the automatic stay. This means that your creditors are contacted, generally via traditional mail service that you are filing for bankruptcy. With this law, your creditors cannot proceed with any action in regards to the debt in which you owe. Typically during this time, creditors are also barred from calling you or contacting you in any way with regards to collection of the debt.

Now, you and your attorney will need to meet with your creditors. It is important to understand that in many cases, your creditors will not actually appear at this meeting, but some do. This will just be a meeting in which questions are asked of you and answered to the trustee that has been assigned to oversee your bankruptcy case.

Thanks to the new federal laws, you are also now required to take a credit counseling course. This must be conducted with an agency that is approved by the Trustee of the United States as a credible agency for credit counseling. This must be done before you file bankruptcy in most cases. Again, your attorney can let you know all of the details as they apply in your specific state. Even though your bankruptcy filing may be caused by something other than financial mismanagement, as most are these days, the credit counseling is still a requirement.

Going through a bankruptcy alone can and will be extremely difficult and complex. If you do not need the counsel of a qualified bankruptcy attorney, you may make an error, miss an important step, or make some other form of mistake, which could render you completely unable to file bankruptcy at all. At the very least, it may mean that you have to start right back at the beginning, which means a waste of time and money for you.

Is There Life After Bankruptcy?

2007-12-19T22:34:00.000-08:00

Yes, there is life after bankruptcy, and for many, it is a well deserved relief from the sleepless nights and endless calls and letters from the bill collectors. While some bankruptcies are caused by reckless spending and adopting an extravagant lifestyle, most are caused by unintentional job loss, divorce, illness, and injury.

Bankruptcy is an uncomfortable subject for a variety of reasons. The most obvious is the potential havoc it can wreak on your finances. Running a close second is the negative stigma which is often attached to the process. This negativity is important to mention because strong emotions can sometimes lead to unsound financial decisions with devastating results.

Bankruptcy becomes a viable option for someone who is "upside down" in terms of cash flow. In other words, when a person has more money going out each month than coming in, bankruptcy should be considered if no reversal of this negative cash flow is within sight. The longer someone waits to explore the various options available, the more serious his or her situation may become.

One of the worst things people can do in this situation is to borrow more money to try and pay off their debts. On paper, this is clearly an unwise financial decision. In the real world, however, it is very common for individuals to pursue this strategy in an attempt to buy time and hold off on filing for bankruptcy. On the surface, this is certainly a noble notion; however it can often compound the problem and serves only to delay the inevitable.

For many homeowners in the midst of this upside down cash flow, speaking to a qualified mortgage professional is a much better option. An experienced loan officer can objectively look at your finances and help you determine if restructuring your mortgage would not only help, but possibly even alleviate any need for bankruptcy.

If bankruptcy is the only option, seek out a reputable bankruptcy attorney and credit counselor. A qualified mortgage specialist can provide references for you as well, as he or she works with these professionals on a regular basis. Reliable references are essential in this case because experienced professionals greatly increase the odds of a successful bankruptcy experience. It's that simple.

When filing for bankruptcy, be completely honest and accurate regarding every aspect of your financial situation. This includes any changes to your income which may occur throughout the process. Bankruptcy is a federal procedure, adjudicated by real judges, and scrutinized by representatives who coordinate with the Department of Justice, the FBI, and the IRS.

Here are some additional steps you can take to make the bankruptcy process as painless as possible:

• Save all paperwork regarding your bankruptcy, and keep it organized. This will prove beneficial after your bankruptcy as you now have all of the pertinent information in one place. Also, be sure to write down your discharge date. It's surprising how many people forget to do this.

• Establish a household budget. This can be accomplished in many ways, but there are several inexpensive computer programs available which do an excellent job.

• Throughout the bankruptcy, do your best to not only live below your means, but to save as much cash as possible. You never know what you may need it for once the process is completed.

• Be prepared for a barrage of junk mail. There will be sharks on the loose who are hoping to capitalize on your need for credit.

Tips for Rebuilding Credit:

• If you must buy a car, focus on transportation as opposed to style. Buy an inexpensive, used car, and try to get a loan for it. It's a good idea to figure out what your budget allows in terms of a dollar amount first. This means obtaining financing prior to looking for a car.

• Get a secured credit card. Secured credit cards allow for the cardholder to deposit a said amount of money into an account, thus establishing the spending limit of the card. Missed payments result in deductions from the account. Some of these cards will reward responsible borrowers by upping the limit without an additional deposit. Some will even convert the account into a traditional credit card. (Be wary of offers of "easy credit" or any card which asks you to call a 900 number. You will be charged for the call.)

• Meet with a credit repair specialist. Not only can they help you clean up the damage to your credit report, they can advise you on specific ways to rebuild the credit you lost as well. One of their first steps is to have you send copies of the discharge document describing what bills you are no longer responsible for to the credit reporting agencies.

So YES, there is life after bankruptcy. Use these tips to help rebuild your credit slowly and carefully. Make sure that you pay ALL your bills ON TIME from now on, as late payments and other negative marks can be devastating at this point. With a little time and a clean credit history post-discharge, you can be back on your feet better than ever.

Down and out: surprise: many personal bankruptcies are really business failures in disguise

2007-07-25T04:21:00.000-07:00

Two law professors asked about small-business ownership as part of the Consumer Bankruptcy Project, an in-depth study of 2,000 households that declared bankruptcy. Project co-directors Robert Lawless, a University of Nevada, Las Vegas, law professor, and Elizabeth Warren, a Harvard Law School professor and co-author of The Two-Income Trap: Why Middle-Class Mothers and Fathers Are Going Broke, specifically designed a section of the study to get at the long-suspected connection. Lawless and Warren agreed to give Entrepreneur a first glance at their findings.
"We set out to ask, Are these a distinct subgroup of people filing? And we found that they are," says Lawless. People driven to personal bankruptcy because of business failure are likely to have more assets, income, expenses and debt. They were also proportionally more in debt--although their incomes were higher--than people who simply had jobs. When business owners go under, they go under harder.

The researchers calculated how long it would take for survey respondents to get completely out of debt if they devoted all their income--every penny--to paying off what they owed. For business owners, that would take a median of 3.8 years. For nonbusiness owners, the median payoff duration is 2.9 years.

Homeland - In the Mix - Homeland Stores Inc.emerges from bankruptcy - Brief Article

2007-07-25T04:05:00.000-07:00

OKLAHOMA CITY -- Supermarket chain Homeland emerged from bankruptcy last month as a fully owned subsidiary of Kansas City-based Associated Wholesale Grocers. The retailer's 43 stores throughout Oklahoma will continue to operate under the Homeland name. Associated is a retailer-owned cooperative that supplies more than 850 retail grocery stores in 10 states.

What investors can learn from the Enron mess; the largest bankruptcy in U.S. history offers valuable lessons on how you should invest in today's marke

2007-07-04T03:24:00.000-07:00

After working 14-hour days with extensive travel and little time off for vacation, Barrett didn't have much show for her years of service. By the time the company filed for bankruptcy, she was wiped out, losing more than $65,000 from her 401(k), another $80,000 in stock options, and more than $65,000 in severance pay to which she was entitled. "My life has changed. Financially, I'm ruined," laments the single mother of two adult children. "[I lost] everything I had tied up in that company. I have no medical insurance and no dental coverage. For the first time in my life I have nothing, I feel like a loser, a second-class citizen."

Struggling to maintain her composure, Barrett adds, "This is a lot more criminal than white collar crimes. I feel betrayed."

She's not alone. Tens of thousands of Enron employees have had their lives, aspirations, and retirement plans destroyed. These workers--many who once held shares valued at $87--must now figure out a way to pick up the pieces.
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Don't think for a moment that because you didn't work for Enron this crisis doesn't affect you. Scores of pension funds, endowments, and mutual funds had substantial positions in the entity that was once the seventh largest corporation in America. Moreover, hundreds of thousands of workers--including many African Americans--have invested in 401(k) plans and company retirement programs structured like Enron's. And you just may be among them.

A NEW DAY IN THE FINANCIAL MARKETS

Over the past few months, Enron has become synonymous with corporate duplicity and fiduciary failure. At the heart of the matter is how a corporation used a slew of "off-balance sheet" partnerships to hide enormous losses, and, as the stock took a nose-dive, forced employees to hold on to shares in retirement accounts while top management, including former CEO Kenneth Lay, made millions by exercising stock options. To make matters worse, Andersen, the accounting firm charged with auditing Enron's financial statements, became an alleged participant in the subterfuge by shredding documents.

The meltdown at Enron has produced congressional hearings, investigations by the U.S. Securities and Exchange Commission, and several legislative proposals to protect the accounts of 401(k) investors. In short, it has served to undermine investor confidence and roil the financial markets. "Enron was the light that came on and showed corporations that inefficiencies will eventually catch up with you," says John Ripoll, senior vice president at the Atlanta-based Jackson Securities (No. 5 on the 2001 BE INVESTMENT BANKS list with total managed issues of $29.397 billion). He maintains that corporate accounting practices will continue to be heavily scrutinized by individual and institutional investors alike. "And auditors will force companies to adhere more closely to GAAP (generally accepted accounting practices)," he says.

Stocks from a number of companies that have restated earnings have been hammered on Wall Street. Such blue chips as Procter & Gamble (NYSE: PG), AOL Time Warner (NYSE: AOL), and General Electric (NYSE:GE) have been among them. It appears that the more complex the entity, the bigger the sell-off from investors. Take Tyco International (NYSE: TYC), the industrial conglomerate that was once the darling of the Go-Go '90s. The stock plunged to a staggering 49% in the first four weeks of 2002, due in part to its complicated structure and questions about its accounting practices. Adds Ripoll: "The question [is whether] investors see Enron as an isolated incident or will they feel that the system has been abused for years."

WHAT ENRON MEANS TO YOU

The Enron mess provides solid lessons on investment decision making and portfolio protection in today's environment. Heed the following:

* Lesson No. 1: Diversify your investments

There's one rule of risk management--diversification. Before you think about making an investment decision, clarify your investment goals and then structure an asset-allocation model to help you achieve them. Your diversified portfolio should extend across a range of asset classes, including stocks and bonds. (See "Getting the Scoop on Investing," this issue.) The most devastated Enron employees were those who neglected to hold a mixed bag of assets. "The notion of diversification has won out because portfolios that were properly diversified have not been experiencing these pains," says Garry Bridgeman, a certified investment-management analyst with Merrill Lynch. "The more evenly your funds are diversified, the less risk is built into the portfolio. Maybe you don't have the maximum upside potential, but you'll stay in the ball game and have a much more [consistent] rate of return over time."

ATA hires restructuring officer amid rumours of bankruptcy filing

2007-07-04T03:23:00.000-07:00

Struggling US-based carrier ATA Airlines has appointed its chief financial officer Gilbert F. Viets to oversee the restructuring of the company's debt, leading to speculation it is about to file for bankruptcy.

An attorney representing ATA creditors has told the media that he expects the airline to file for bankruptcy on 26 October 2004. The company's senior unsecured debt rating has been lowered by Moody's Investors Service from C to Ca with the company citing ATA's perilous financial situation as the reason.

Viets was appointed on 19 October 2004 to oversee the airline's debt restructure, according to a filing made by the airline to the Securities and Exchange Commission, while former chief financial officer David M. Wing has been hired to replace Viets despite resigning from the position in June 2004, reports The Associated Press.

Reporter's notebook: company executes promise to purge - Kmart appears in bankruptcy court

2007-06-19T00:58:00.001-07:00

CHICAGO -- Kmart appeared in bankruptcy court for its Omnibus hearing on Feb. 25 and began pointing fingers at former management even as it sought approval for its disclosure statement and amended plan of reorganization filed that morning.

As a result of its stewardship review begun last year, Kmart concluded: "Mr. Conaway failed to perform his duties as ceo to adequately supervise and direct other Company executives who reported directly or indirectly to him," read the documents. "And Mr. Conaway permitted Company executives to receive millions of dollars in retention loans and other payments that they would not have received had all the material information been disclosed."

Kmart's board of directors found that former management participated in a series of events contributing to the cash crisis in the fall of 2001 and leading Kmart into Chapter 11, including deceiving the board itself regarding the $24 million in loan guarantees.

But Kmart makes it clear in this new statement that the board believes there is enough evidence to pursue possible claims against Conaway, who at press time denied any wrongdoing.

"Chuck Conaway poured his heart and soul into trying to turn around the giant retailer," said Conaway's attorney Scott Lassar in a statement. "At all times he acted honorably and in the best interests of Kmart's employees and shareholders."

Conaway also petitioned the court to lift an automatic stay allowing him to make claims against the retailer's liability insurance to pay court costs. Kmart and the creditors committee objected to the request as a number of former executives were also entitled to access the policy, requesting that judgment wait until the reorganization plan was confirmed.

Attorney's representing both Kmart and the creditors committee also lost no time in pointing out how much money Conaway had received from the retailer showing that he was well positioned to pay his own expenses out of pocket at least until the policy kicked in.

"Mr. Conaway has or should have the resources to pay these people," said Jack Butler, Kmart's lead attorney. Judge Susan Pierson Sonderby agreed, continuing the motion until April 14.

Sonderby also approved the amended statement and sent the plan on to the creditors committee for its approval.

Kmart is still seeking the repayment of millions of dollars made in loans to former executives and the findings of the stewardship investigation have now been turned over to a creditors trust, which in turn will try to "monetize the claims," explained Butler. "This is now in the hands of the trust, whose job it is to make it into money." Any funds recovered go into the trust to repay creditors.

New day dawning: emergence or emergency? - Kmart Corp. works to emerge from bankruptcy

2007-06-19T00:57:00.000-07:00

Kmart's period in bankruptcy has been its darkest hour, revealing a pattern of mismanagement and botched strategies that brought this once-mighty retailer to its knees. But now with emergence in sight, hope has returned. With a little luck and lots of hard work, ceo Julian Day just might be the magician who transforms Kmart into a viable, profitable retailer again.

Though the odds may not be in Day's favor, given the industry's long list of casualties t at have failed to survive bankruptcy, the new ceo has embraced a game plan that makes sense for Kmart--remain a high-low promotional retailer,. Emphasize exclusive brands as a point of differentiation and create a positive store experience that caters to core shopper groups.

Despite the best of intentions, the question remains whether this strategy is sufficient to regain customer loyalty. A history of disappointing shoppers has haunted Kmart for years and damaged its reputation, while its principal competitors Wal-Mart and Target keep getting stronger.

And while Kmart's sales were growing just two years ago, the bankruptcy filing an d two rounds of store closures set off a downturn in same-store sales that has yet to reverse.

Unwilling to give up, Kmart managed to secure $2 billion in exit financing and funding by two outside investors that nearly assures the retailer will emerge from bankruptcy in April as planned. Kmart's an of reorganization lays out a financial forecast that calls or a return to profits in 2004 after a loss of $286 million for the current year.

Bankruptcy of national century casts wide net - Industry Scan: In the News - National Century Financial Enterprises Inc.'s bankruptcy filing affects h

2007-06-18T23:19:00.000-07:00

The November 18 Chapter 11 bankruptcy filing by National Century Financial Enterprises (NCFE) may have far-reaching effects on the for-profit healthcare industry. The November 26, 2002, Wall Street Journal estimates that critical cash flow of more than 100 healthcare organizations depended on NCFE. According to an article in the November 19 Washington Post, the filing with the bankruptcy court for the Southern District of Ohio showed $3.8 billion owed to bondholders, but the actual amount was thought to be slightly less. Company memos indicate the financial troubles surfaced internally three years ago, according to the Wall Street Journal.

At least five NCFE clients have filed for bankruptcy because of the company's collapse: Doctors Community Healthcare Corp., PhyAmerican Physician Group, Tender Loving Care (a Med Diversified unit), LifeCare Solutions, and Lincoln Hospital Medical Center.

NCFE may have strayed from the securitization paradigm, according to Mark Spradling, chair of the structured finance practice group at Vinson & Elkins LLP in Houston, Texas. "NCFE appears to have overestimated the expected collections on some of its securitization vehicles' receivables pools, thus causing a severe shortfall in the cash flow of the vehicles," said Spradling. "In addition, the 'evergreen' receivables sales agreements that NCFE and its clients executed appear to have lacked adequate provisions for the clients to terminate the arrangements. The clients' financial viability has been adversely affected because collections on the receivables have continued to be paid to NCFE."

ATA may return to its roots following bankruptcy filing

2007-06-18T23:18:00.000-07:00

ATA Airlines may return to its travel club roots if it emerges from bankruptcy in a few months' time after filing for Chapter 11 protection on 26 October 2004.

The airline is the tenth biggest in the US and joins US Airways and United Airlines on the list of bankrupt major carriers. ATA is preparing to sell off most of its assets at Chicago's Midway Airport and make Indianapolis its main hub following its bankruptcy filing.

AirTran Airways is thought to be acquiring ATA's Midway assets but the airline said that it does not plan to sell off its most profitable assets including Ambassadair Travel Club which formed the base of what became ATA in 1973, reports The Associated Press.

Bankruptcy court OKs Phar-Mor financing - U.S. Bankruptcy Court - Brief Article - Statistical Data Included

2007-06-07T03:14:00.000-07:00

YOUNGSTOWN, Ohio -- The U.S. Bankruptcy Court here has approved Phar-Mor's application for $135 million in debtor-in-possession financing from Fleet Retail Finance. John Ficarro, Phar-Mor's senior vice president and chief administrative officer, said Phar-Mor will use the financing, approved on Oct. 23, to fund day-to-day operations during its current restructuring program.

In addition, Phar-Mor in mid-October raised approximately $65.5 million in two separate auctions of its pharmacy files and its front-end and prescription inventories. The $65.5 million was "substantially more" than the $50 million the company initially expected, Ficarro said. The auction of the prescription files in 63 stores raised $23.5 million, while the sale of pharmacy inventories in those stores raised approximately $10 million. Ficarro said a large number of retail operators successfully bid on the prescription files, including CVS, Eckerd, Target, Wal-Mart and Giant-Eagle.

Ficarro added that a second auction for front-end inventories in 64 stores raised approximately $32 million. Phar-Mor still has leases and fixed assets to liquidate. Ficarro said he could not estimate how much Phar-Mor may raise ultimately from the sale of these additional assets.

Overall, Phar-Mor liquidated the assets of 65 stores. Two of these stores did not have pharmacies, and one store, which sells closeout merchandise, is self-liquidating its inventory. The company continues to operate 74 stores under bankruptcy protection.
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For the fourth quarter ended June 30, Phar-Mor reported a net loss of $44.5 million, or $4.13 per diluted share. This compared with a net loss of $13.1 million, or $1.19 per share. Sales for the 13-week period fell 7.9 percent to $290.3 million. Same-store sales were off 7.9 percent, despite a 4.7 percent increase in same-store pharmacy sales.

For the fiscal year, Phar-Mor had a net loss of $48.8 million, or $4.48 per share. This compared with a loss of $11 million for fiscal 2000. Sales fell 4 percent to $1.24 billion. At the front-end, comparable-store sales slipped 8.2 percent. Pharmacy comparable sales increased 5.6 percent.

COPYRIGHT 2001 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.

Tales of whoa! On the docket: property deposited in escrow before bankruptcy isn't part of the debtor's bankruptcy estate if redemption rights expire

2007-06-07T03:13:00.000-07:00

In August 1999, Concourse borrowed $14 million for working capital. Three years later, Concourse Holding Company (Holding) bought the loan from the original lender. At the same time, Holding entered into an agreement with Concourse and NTA wherein Holding would provide $4.1 million in additional funding to Concourse and Holding would have an option to purchase NTA's membership interests in Concourse. In a separate agreement executed at the same time, NTA guaranteed Holding's loans to Concourse and gave the membership interests that it owned in Concourse as security. Under the latter agreement, if Concourse defaulted on its debt to Holding, NTA would transfer its member interests in Concourse to Holding.

In December 2002, Holding declared Concourse in default because of a failure to make a scheduled interest payment. As a preemptive matter, Concourse filed a lawsuit in Illinois seeking a declaration that it was not in default. In March 2003 the parties suspended the litigation and entered into a Standstill Agreement and Escrow Agreement.
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The Standstill Agreement gave Concourse two options: 1) pay off its loan to Holding; or 2) obtain a letter of intent for takeout financing from another lender by April 30, 2003, with a closing no later than June 30, 2003. The Standstill Agreement called for both parties to submit general releases that would be exchanged if Concourse satisfied its debt to Holding and for NTA and Concourse to submit a confession of judgment for $13 million that would be delivered to Holding if Concourse did not pay off the loan.

But there was more. The Standstill Agreement also required NTA to deposit in escrow an assignment of all its rights, title, and interest in Concourse to Holding. The escrow agent was to release the assignment to Holding if NTA did not supply a letter of intent by April 30, 2003, or close by June 30, 2003. More specifically, the escrow agent was to release NTA's assignment at the earlier of: 1) two business days after receipt of a copy of a written notice from Holding to Concourse; or 2) July 31, 2003.

On May 16, 2003, Holding sent a letter to the escrow agent giving notice that Concourse had not provided a letter of intent from another lender by April 30, 2003. NTA's response was to file a petition for relief under Chapter XI of the Bankruptcy Code. NTA claimed that the membership interests in Concourse were part of NTA's bankruptcy estate and that the estate had a right of redemption.

The court differed, pointing out that the bankruptcy estate had no greater right to the membership than NTA did immediately prior to the bankruptcy filing. It said that when the Standstill and Escrow Agreements were executed, they superseded all previous agreements between the parties. The Standstill Agreement gave Holding the power to exercise substantial control over Concourse's business and NTA's membership interests. The Standstill Agreement left NTA with only a limited right to reclaim the membership interests by meeting the requirements for takeout financing.

The court's opinion then noted that the bankruptcy estate could not exercise the reclamation rights NTA once had because a letter of intent had not been provided by April 30, 2003. In conclusion, the court said, "The bankruptcy estate has no remaining property interest in the Membership Interests."

What's the point? A creditor desiring to insulate itself against the statutory rights of a trustee in bankruptcy or a Chapter 11 debtor-in-possession to property of the bankrupt can begin by creating an escrow before bankruptcy and directing the debtor to deposit the property with the escrow agent. If the debtor's redemption rights expire prior to the bankruptcy filing, the creditor can claim the property.

Faulty data skew bankruptcy laws

2007-06-02T03:13:00.000-07:00

New bankruptcy legislation fails to account for hundreds of thousands of entrepreneurs, independent contractors, and self-employed individuals who traditionally have turned to bankruptcy relief as an important safety net in their effort to recover from a failed undertaking, say researchers from Harvard Law School, Cambridge, Mass., and the University of Nevada, Las Vegas. In fact, large numbers of entrepreneurs use the bankruptcy system, despite official government statistics that claim their presence in bankruptcy has declined sharply. A result of the faulty data is a skewed picture of the measurement and strength of the nation's small business economy. The legislation could serve to deter would-be entrepreneurs from embarking on risky new business formation.

According to the research, owners of small businesses annually file an estimated 260,000 to 315,000 bankruptcies. Those numbers are about nine times higher than the government's data, which list about 37,000 cases.

The researchers trace the problem of faulty statistics to efforts in the mid 1980s to simplify the official bankruptcy reporting process and the advent of new computer software that changed the way attorneys complete forms used to compile government information. This technological change has created a systematic bias in which entrepreneurs were reclassified as consumer cases rather than business ones.

In the study, 19.5% of cases labeled as a consumer bankruptcy filing show some evidence of a connection to an underlying business. Moreover, the government's official statistics differ drastically from annual stats compiled by Dun & Bradstreet and the Small Business Administration, both of which show a significant increase in small business failures.

"It is apparent that entrepreneurs continue to use the bankruptcy system in big numbers. The surprising thing is not so much that they are there but why it took so long for someone to notice that the government figures were so divorced from reality," comments Robert M. Lawless, a study co-author and the Gordon & Silver, Ltd., Professor of Law at UNLV. "Each year, the bankruptcy system provides a critical safety net for hundreds of thousands of entrepreneurs. Our findings again suggest that the popular image of the bankruptcy system as full of irresponsible, overspending consumers is myth."

"The data suggest that much of the measurement of the small business economy is simply wrong, and that errors affect every assessment of the strength, number, and role of entrepreneurial businesses in the United States," adds Elizabeth Warren, Leo Gottlieb Professor of Law at Harvard. "Our economic system needs to encourage entrepreneurs to make new investments. Sometimes these investments will fail through no fault of their owners, and when that happens, the owners need to be able to move to other businesses and create new jobs and investment opportunities."

Unclear bankruptcy rules challenge Catholics and Disciples

2007-06-02T03:10:00.001-07:00

The nonprofit status of the Catholic Archdiocese of Portland, Oregon, which filed for bankruptcy last month, and the Protestant-affiliated National Benevolent Association, which fled for protection in February, may help determine legal precedents for church bodies that say they are unable to meet their financial obligations.

The vast majority of organizations that file for bankruptcy protection are for-profit companies. Statutes and abundant ease law set clear priorities for the court as it straightens out companies' finances: creditors come first, shareholders second.

Nonprofits are different in several important ways--not the least because such filings have been relatively rare. Also, nonprofits don't have shareholders. They are exempted from taxes in exchange for meeting a mission such as housing the poor or, in the archdiocese's case, operating a church.

And, when a nonprofit files for bankruptcy protection, the court faces a tough decision: Can money donated to serve a charitable mission be used to pay off creditors?

Take, for example, the case of National Benevolent Association, a large St. Louis-based agency affiliated with the Christian Church (Disciples of Christ). The association, which serves abused children, the disabled and the elderly, flied for bankruptcy this year after issuing more than $200 million in bonds.

"There's always the tension in these cases between repaying creditors and the mission of the charity," said Howard Stile, a New York attorney with Chadbourne & Parke LLP.

In its first bankruptcy court hearing in Texas, Judge Ronald B. King made it clear that the nonprofit has a new top priority. "They have a mission, and the new mission is to pay the creditors," said King, according to a transcript of a February 18 hearing. Seife, who represents creditor KBC Bank, said the statement was telling. "If there is a trend, it is to put the interests of the creditors as paramount," Seife said.

But Stephanie Wickouski, an attorney with Gardner Carton & Douglas in Washington, D.C., said there isn't enough legal precedent on nonprofit bankruptcies to draw broad conclusions. "These arguments are still somewhat groundbreaking on both sides," she said.

A critical test, she said, is whether a nonprofit's assets fall under the "charitable trust doctrine." The doctrine, part of common law, holds that if money is donated to a charity for a specific purpose, it cannot be used in any other way. "One controversy is whether the not-for-profit corporation is essentially a charitable trust," Wickouski said.

If assets of the Portland archdiocese qualify under the doctrine, Wickouski said, local Catholics may argue that their donations should not be used to pay creditors. In a letter posted on the archdiocese Web site, Archbishop John G. Vlazny wrote that among assets being claimed by plainiffs' attorneys are "various trust funds holding charitable contributions." But Vlazny wrote that he would not and cannot use assets held in charitable trust.

The archdiocese's filing for Chapter 11 bankruptcy protection July 6 temporarily shielded the archdiocese from claims by lenders and more than 60 plaintiffs in clergy abuse cases. But the degree of protection ultimately will depend oil the U.S. Bankruptcy Court and how it defines the organization and its assets.

Bankruptcy researchers and officials at nonprofit associations said they don't know of any tallies of nonprofit bankruptcies. But such filings are rare, they said.

Chapter 11 bankruptcy protection gives organizations leeway to reorganize without completely liquidating.

That's attractive to owners who want to salvage at least part of their business while paying off debt. Nonprofits in financial distress often simply close up shop and cease operations, said G. Ray Warner, a law professor and bankruptcy expert at St. John's University in New York.

Some troubled nonprofits, instead of shutting down or filing for bankruptcy, merge with another nonprofit with a similar mission, said Craig Stevens, the officer in charge of the association and nonprofit practice at Aronson & Company, a Maryland accounting firm.

As nonprofits have grown and taken on more characteristics of the for-profit world, courts have had to discern how to handle their bankruptcy cases.

Unclear bankruptcy rules challenge Catholics and Disciples

2007-06-02T03:10:00.000-07:00

Avoid Bankruptcy With Our 10 Top Tips

2007-04-25T04:23:00.002-07:00

Many people want to know how they can avoid bankruptcy, it can be a difficult question to answer, especially when you have to consider the individuals unique circumstances. This article is going to try to give you the ten best ways to help you avoid filing for personal bankruptcy. This advice is just that, it's not legal advice and it certainly shouldn't be relied upon. You should seek qualified legal advice before making any decisions about your debt.

1. Ideally you need to increase the amount of money you have available to you every month. The best, and fastest way is to get a second job. You will only be able to take a second job if your full time job allows this. Even if the part time job only gives you two hundred dollars a week, that mounts up to 800 dollars a month, this will go a long way to reducing your debt. Write down all of the debts that you have, put the ones with the highest interest rate at the top as you will aim to pay these off first.

2. You must stop using your credit cards, they are the source of your trouble. If you can bear it then cut the cards up so that they can never be used again. Failing that you could give them to your wife. A credit card is however good for emergencies, you should keep one, just one mind!

3. Take a look at all of your assets and decide which ones are worth the most. Normally people don't realise just how much the things they own are worth.Houses are scarce goods and so appreciate in value, this appreciation may help in reducing your debt.If you cannot cover all of your debt by taking out a second mortgage then don't consider using this step, it's only worthwhile if you can pay everything off.

4. Unfortunately cars are not like houses, 99% of cars depreciate in value. If your car is still worth something then would you consider selling it? Of course you will need a car, so buy a cheaper car. Just remember that you do get what you pay for. Paying for something too cheep could be a really big mistake.

Business Bankruptcy - is the Best Option Chapter 11 or Chapter 13?

2007-04-25T04:23:00.001-07:00

The United States bankruptcy statutes and court filings are designed to aid persons who want to pay their accumulated business debt, but are not able to do so. Before you file a bankruptcy petition is it important that you enlist the advice of a business debt management consultant to determine whether a different form of business debt program may not be a better choice. A businesses debt consolidation or a debt settlement may provide the relief that the business needs with out formally petitioning for bankruptcy.

At any rate, meeting with a business debt management consultant is a requirement of filing for chapter 11 business debt protection. If, in the course of this counselling, a business management plan is developed, a copy of it must be filed alongside the chapter 11 bankruptcy protection. It is important to understand the difference in the protection the bankruptcy court provides. Chapter 13 is aimed to protect individuals who have an ensured wage from their creditors' attempts to collect their debts for three years. It is designed to give debtors the designated 3 year time period to make scheduled repayment to the creditors without being bothered by creditor attempts at collection and with out penalty or further accrued interest. Chapter 13 has a debt limit of $175,000 of debt and it may be extended to individuals who operate a business.

However the primary bankruptcy tool that has been designed to afford relief to those with significant business debt is the chapter 11 business bankruptcy plan. In order to file a chapter 11 business bankruptcy petition the individual must provide proof that a debt management professional has been consulted. If a debt management plan has resulted from that meeting, it will be filed with the petition. There is a $1000 basic filing fee for a chapter 11 business bankruptcy, plus additional small fees that must be paid at the time of filing. When the plan outlined in the chapter 11 business bankruptcy is approved by the court, the assets of the business will be placed in receivership or under the guidance of a court appointed conservator who will supervise the manner in which the business assts will be utilized to repay the debts of the business. A debt repayment plan will be formulated by the conservator and will have to be strictly adhered to. A business bankruptcy that is given chapter 11 protection is not an erasure of the business' debts; it is a strict schedule that is worked out whereby the business operator repays the debts of the business within his or her capacity.

The decision to try to seek protection from business debts by filing a business bankruptcy is best made with the advice of a business debt management consultant. A business bankruptcy may not offer the business debt protection that the business really requires. It may be that other options available to resolve business debt are better choices to alleviate those pressures from creditors without placing the business in an inoperable position. Speak with a qualified and experienced business debt management consultant about the other options available to address business debt. It may be that a business debt consolidation or a business debt resolution may be a better overall choice.

Additionally, there are many types of small business loan plans that are available to that may be enough to take a business over the rough patches and continue to stay in operation, thus providing the owner with an income and the community with a useful service. A chapter 11 or 13 business bankruptcy should be a measure of last resolve that is used only after all other options have been explored and eliminated.

Small Business Bankruptcy If It Is Unavoidable, Chapter 11 Is The Answer

2007-04-25T04:22:00.004-07:00

Bankruptcy is not something that someone should run out and do unless much consideration has been done as well being a last resort.

The six kinds of bankruptcy are:

Chapter 7 - this is mostly for personal and is a total liquidation

Chapter 9 - municipal bankruptcy

Chapter 11 - This is mainly used by businesses for reorganization

Chapter 12 - is for farmers or fishermen

Chapter 13 - is for people with regular income and they set up special payment plans for their payments which may not be as much as their normal payment buy they are still paying their debts back.

Chapter 14 - is a moral bankruptcy

Chapter 15 - is for international situations

Let's elaborate more on the different types of bankruptcy. Chapter 7 is the most common bankruptcy for individual people. This is where the person gives up all of their property to a bankruptcy person who will sell off the property and use the proceeds of the sale to pay the loans companies. The person is no longer responsible for this debt and does not have to pay it back but they no longer own the property either. If there have been distrustful situations such as fraud or concealing property or records they may not be discharged from the debts they own. The person is not removed from paying child support or taxes. They are not required to give up household items needed to live or clothes. They can only apply for bankruptcy every 8 years.

With a Chapter 13 the person keeps owning all off their property but must give some of their income towards paying the loan companies over a period of years. How much they pay depends on several factors and this includes how much the person currently makes in income.

Bankruptcy The Six Types Of Bankruptcy

2007-04-25T04:22:00.003-07:00

Should I Open A New Bank Account Prior To Filing A Bankruptcy Or Proposal In Edmonton?

2007-04-25T04:22:00.001-07:00

When we are contacted by individuals who are considering filing a bankruptcy or consumer proposal in Edmonton, Alberta, we always suggest that they immediately open a new bank account. While this is a suggestion and not a legislative requirement; it is almost always in their best interests to do so.

There are really only three scenarios that opening this new account is critical, but we find that at least one of these applies to virtually all of our inquiries.

The most common situation involves people who owe money to the institution that they are currently banking with. In this situation, the institution (i.e. the bank) often tries to seize any monies in your account and directly apply them to the outstanding loans. Legally speaking, this is referred to as “set-off,” and in the absence of a bankruptcy or proposal this is their right. However, the day you file the bankruptcy or proposal, this right is lost. Unfortunately, there is a delay between the time you sign all the required documents and when they are received and processed by the bank. Realistically speaking, if during this delay any funds are seized, the trustee can arrange for the funds to be returned, but this often can take up to 3 months and may cause some difficulties for you if the monies are required for day to day living expenses.

Over the last decade, it has become common practice to arrange bill payments to automatically be withdrawn from your account (i.e. direct payment). Due to the same unavoidable delay, payments are often withdrawn after the date of signing. In fact, it often takes a couple of months for the bank to recognize the filing of a bankruptcy or a proposal, and if they continue to take payments out of the account when they aren’t entitled, you may again experience the same problem as in the first scenario. We can get the money returned, but again it can often take time.

The third scenario that can create difficulties is if you have an overdraft on your account. Technically the overdraft is an unsecured debt, and the filing of a bankruptcy or proposal will serve to automatically cancel and clear this debt. This really only becomes an issue if you make any deposits into the account, because the bank will automatically use the monies to reduce the amount you are in overdraft, and it can often be very difficult to trace these types of transactions. As a result, the funds may not be recoverable by the trustee.

The financial cost of divorce

2007-04-21T02:59:00.001-07:00

This article refers to divorce law as it applies in England and Wales.

Apart from all the emotional turmoil, there are so many practical
matters that must be sorted out when a married relationship comes to an
end. If you and your partner find yourselves in the unfortunate
situation where you have decided to separate, you will both need to
consider what will happen to your money, investments,
possessions, property and children.

There are lots of different ways in which you can make arrangements to
part ways. For a start, you don’t need to get a divorce. If you and
your partner can agree amicably on how to settle the things that you
shared during your marriage, you may just opt for an informal
separation. It’s much cheaper and much less stressful than going
through the divorce courts. However, bear in mind that any informal
arrangements may affect any decisions made by the courts if you decide
to take your case down this route in the future. Also, a court may
reverse or alter any arrangement you have made with your partner if it
is considered unreasonable to either party or unfair on any children.

An alternative way to split without going through the divorce courts is
formal separation, in which a written mutual agreement is drawn up,
preferably by a solicitor. The agreement sets out the terms for
settling financial and material matters and arranging the care of any
children. It can cover financial maintenance either for the other
partner or for the children. Any agreement not to take a case to court
in the future will not be legally binding and both of you still have
recourse to the courts should amicable communication break down.

There are various other factors to weigh up when considering whether
divorce is the right option. Remaining married will have various legal
implications, and of course you won’t be able to remarry. Divorce is
therefore often the safest, fairest and most practical option.

Let’s straighten out a few facts about divorce, as it can cause
confusion to many people:

# To apply for a divorce, you must have been married for at least
one year.

# Your marriage must be legally recognised in the UK and you must
have been resident here for a certain length of time.

# One partner must file a petition at court setting out the reasons
for the divorce and providing background information. They are known as
the petitioner and the other partner is known as the respondent.

# The petitioner must provide grounds to show that the marriage has
broken down irretrievably. To demonstrate an irretrievable breakdown of
the marriage, at least one of the following factors must be proven:

# adultery

# unreasonable behaviour (such as physical, mental or emotional
abuse, or controlling behaviour)

# one partner deserted the marriage at least two years ago (left
the marital home without the consent of the other partner or reasonable
justification for doing so)

# where both parties consent to the divorce, at least two years
of living apart

# where one party does not consent to the divorce, at least five
years of living apart

# Where both parties consent to the divorce, it’s known as an
undefended divorce. Where one party doesn’t consent, it’s referred to
as a defended divorce.

# If you file for divorce on grounds of adultery, the court will
need
to know the details of the extramarital relationship, including dates –
you must file for divorce within six months of it taking place.
However, if one party doesn’t agree to the divorce, proof of the
adultery must be obtained, which isn’t always easy.

# If you both consent to the divorce, the court will review the
application and issue a decree nisi. This can take up to six months, or
longer if there are children as the court will want to ensure that the
care arrangements made for them are adequate. A court hearing won’t be
required, but the court may want to speak to the children if they are
old enough.

# Six weeks after obtaining the decree nisi, the petitioner can
apply for a decree absolute to finalise the divorce. Once the decree absolute
has been granted, the divorce is complete and the marriage is over.

# If one partner does not agree to the divorce, attendance at court
will be required. The partner who disagrees must provide reasons to
demonstrate why they believe the marriage has not broken down
irretrievably. The judge will decide whether the marriage has broken
down irretrievably and will grant a decree nisi if they deem this to be
the case. Then the petitioner can apply for a decree absolute in the
same way as they would had the other partner consented to the divorce.

# If there are any children in the marriage, the court will always
review the arrangements for their care. This includes where they will
live, who will look after them, what access both parents will have and
what financial support will be given. The court will always make its
decision based on what is deemed to be in the best interests of the
children. If both partners agree with the arrangements they have made,
the court will not intervene to change them. However, if one partner
finds the arrangements unacceptable, the court will review the case and
make a decision, known as a court order.

Financial arrangements – children

Both partners are financially responsible for their children, no matter
who the children live with. (Children under the age of 16 or under the
age of 19 and in full-time education are considered to be your
dependants.)

The most amicable way to arrange support is through a voluntary
agreement, where you and your partner come to a mutually acceptable
arrangement for looking after the children. This may be an informal
verbal arrangement or you could have a written agreement drawn up by a
solicitor (which is the safest option as it can help to resolve any
disputes further down the line). There are various ways in which one
partner can provide financial support to the other. They may agree to
pay all the household bills and perhaps the mortgage or rent, they may
buy the childrens’ clothes or pay for their holidays, or they may
prefer to give the other partner a regular maintenance payment for
their partner to spend appropriately on the children.

If you’re unable to come to an informal arrangement with your partner,
you’ll need to apply for financial support through either the Child
Support Agency or the court.

Financial arrangements – settlements for the other partner

Even if there are no children in the marriage, making a financial
settlement can be tricky business. If you are able to come to an
informal agreement together on how you will split your wealth, it can
save a lot of time, stress and money. However as with everything in
life, when there’s money involved, disputes inevitably arise. Many
divorcing couples therefore end up turning to the court to obtain a
financial settlement. In England and Wales, the general principle
concerning disputed settlements is that both partners should receive
50% of their combined wealth. There are sometimes extenuating
circumstances though, particularly in cases where a large amount of
wealth was accumulated by one partner before the marriage, or where one
partner has, for example, given up a career as a result of the marriage
or of having children. In such cases the split may not be completely
equal.

Financial arrangements – property

Again, you may come to an informal agreement as to what to do about the
marital home, or, if you can’t agree, the courts will decide. One
partner may still be living in the property, but this does not give
them any more rights than the other partner. The partner who is no
longer living in the home still has the right to come back to collect
items belonging to them (although in cases of domestic violence this
may be restricted by a court order), and still has a say in what
happens to the home – their consent will be required to put it up for
sale, for example. Even if one partner isn’t listed on the deeds as an
owner of the marital home, they nevertheless have equal rights to the
property – either to live in it or to have a say in whether it is sold.
However, to protect their rights, this partner must complete a form and
send it to the District Land Registry.

A final word of advice

In an ideal world, it’s always best to be able to agree things amicably
without the indignity of involving solicitors or going to court. In
reality, however, it’s not always easy to reach a fair and reasonable
agreement – and even if you do, things might turn sour at some point in
the future and either one of you could be left in the lurch. It’s
therefore best to consult a solicitor to ensure you understand your
rights and what you’re entitled to, and to help you reach an
arrangement with your partner that will allow you both to live
reasonably and comfortably when you separate.

Obtaining probate

2007-04-21T02:58:00.003-07:00

This guide is an introduction to obtaining probate after someone’s
death in order to administer their estate.

When someone dies, their finances, assets and belongings (i.e. their
estate) have to be sorted out and distributed among those who are
entitled to them. The person(s) appointed as executor of the deceased
person’s will must attend to the administration of this, but in order
to obtain the legal authority to do so they must apply to the Probate
Registry for a Grant of Representation. This document provides proof to
the organisations that the executor will be dealing with in the
administration of the estate that they are legally entitled to do so.

Probate is the term for the legal process of establishing the validity
of a will, but it is also used to refer to the administration of the
estate of a deceased person, whether or not they have a will. At least
one of the executors of the estate will have to obtain a Grant of
Representation to gather the assets, pay any outstanding debts and
distribute the remaining estate among the entitled parties.

Normally the deceased will have appointed executors of the estate are
in their will, but if there is no will (i.e. the person died
‘intestate’), it will be the next of kin or the next closest relative
in the following order who is deemed responsible for the
administration: spouse or civil partner, adult son or daughter (or
their children if over 18), parents, brothers or sisters (or their
children if over 18), grandparents, uncles or aunts (or their children
if over 18).

There can be up to four executors, but two is the norm. Only one need
apply to obtain a Grant of Representation.

You don’t need a solicitor to help you apply for the grant (although it
can save you a lot of time and stress during such a traumatic period).
You should be able to do it yourself if the estate isn’t complicated.
Below is some guidance on the application process.

There are three different types of probate or grant of representation,
all of which are applied for using the same process. The first is
probate, which is granted to the executors named in the will. The
second is a letter of administration (with will), which is granted in
cases where someone other than an executor named in the will applies
for the grant (e.g. if the executor is too ill or unable to carry out
the administration), and the last is a letter of administration, which
is granted in cases where there is no valid will. All of these grants
carry the same legal status to allow the executor to deal with the
estate of the deceased.

To apply for a grant (whatever type), obtain form PA1 from Her
Majesty’s Revenue and Customs. On the form you’ll need to list the full
value of the person’s estate – although you may not be able to give
accurate details at this stage. If so, write ‘estimate’. This means
doing a bit of investigation and getting in touch with organistions
with whom the deceased had money saved or invested, or to whom the
deceased owed money. You’ll also need to give valuations for property,
jewellery and other household belongings.

When you send the form to the Probate Registry you’ll need to include a
cheque to pay for the fee (currently £130), a certified copy of
the death certificate (a photocopy is not acceptable), and the will and any
codicils (amendments to the will).

Note that the Probate Registry will not return the will to you as it
becomes a public document once it has been ‘proven’ or declared to be
valid, so it’s a good idea to keep a copy yourself. However, you will
receive an official copy of the will when the grant is issued to you.

Your application will be reviewed and you’ll be asked to attend an
interview. At the interview you’ll be asked to confirm the details of
the estate by swearing an oath. You may be asked some questions
regarding the estate and you’re free to ask any questions yourself.

The whole application process can take a few months. It’s important to
note that inheritance tax must be paid within six months after the end
of the month in which the person died, and normally it must be paid at
least in part before the grant is issued. To work out what needs to be
paid, obtain forms D18 and IHT200 from either the Probate Registry or
Her Majesty’s Revenue and Customs and send them to Her Majesty’s
Revenue and Customs.

When you’ve received the grant (and it’s best to get several certified
copies of it), you can then apply to banks, building societies,
pensions providers and other financial institutions with whom the
deceased had money saved or invested to request that the assets are
released. You’ll also need to contact organisations to whom the
deceased owed money in order to pay them back. It can be quite a
time-consuming process, and you are allowed to claim expenses from the
person’s estate for carrying out the work, but you can’t charge for
your time involved.

There are some cases in which a grant is not required, for example if
all the deceased’s assets are held in joint names with a surviving
partner or spouse, or if the estate is very small and no inheritance
tax is due (some organisations will release funds of up to around
£5,000 without a grant). You may want to have a brief
consultation with a solicitor to obtain advice before you proceed with the
application for a grant of representation.

Before you make the decision to take on this large task yourself,
consider the advantages and disadvantages of employing a solicitor to
do so – it could save you a great deal of time and effort, and perhaps
money. For example, the solicitor’s fees can be charged to the estate,
but if you were taking care of the probate yourself you wouldn’t be
able to claim for your time – this could be an issue if you have to
take time off work. You also wouldn’t have to attend an interview at
the Probate Registry, and the process is often quicker as solicitors
are used to dealing with probate and can easily handle issues or
complications should any arise. Also, the probate fee is often lower
when an application is made through a solicitor. Weigh up these factors
before deciding how you want to proceed.

Flight compensation: your rights

2007-04-21T02:58:00.001-07:00

It’s really no fun when you’re stuck in the wrong place or left hanging
around in an airport because of flight delays and cancellations – and
what’s more it can leave you out of pocket. However, a new set of
regulations that came into force in 2005 to provide enhanced
compensation rights for passengers. Read on to find out more.

The regulations apply to all flights (chartered, scheduled and budget)
to and from European airports with European airlines (whether or not
you are an EU resident). If the problem is deemed to be the airline’s
fault, or within the airline’s control, it will be liable to pay
compensation to its affected travellers.

The amount of compensation you can claim depends on various factors,
including the extent of the inconvenience caused, the distance you are
travelling and the price of your ticket, but on the whole you are
entitled to cash compensation as well as refreshments, two phone calls
or other methods of communication, accommodation if required, a refund
on your ticket and free transport back to your point of departure –
and/or alternative transport to your intended destination.

Extreme weather conditions such as snow or fog are of course not within
the airline’s control, so there is no obligation in these cases to
compensate passengers. And some airlines deem problems such as
technical faults or strikes to be ‘exceptional circumstances’ beyond
their control so compensation claims aren’t always straightforward.
However, some airlines will provide refreshments and accommodation and
perhaps ticket refunds on a good will basis.

Flights under 1,500 kilometres (935 miles)

For short haul flights you’re entitled to compensation if you’re
delayed for two hours or more. You’ll get free food and drink and
access to two free phone calls, faxes or emails. If you’re left waiting
for five hours or more, you can leave the airport and demand a refund
as well as an alternative flight back to your starting point. You can
also claim €250 cash compensation if your flight is cancelled, you have
been overbooked or you have been delayed for two or more hours.

Flights between 1,500 and 3,500 kilometres (935 to 2,210 miles)

Your cash compensation entitlement for delays of up to three hours is
€200 and for delays over three hours it is €400. Again, you’ll be
provided with food and drink, overnight accommodation and phone calls,
emails or faxes. A ticket refund and alternative flight back to your
starting point will be given in circumstances where you are delayed for
over five hours or your flight has been cancelled or overbooked.

Flights more than 3,500 kilometres (2,210 miles)

Long haul flights come with a compensation entitlement of €600 for
cancellations or overbookings or delays of four hours or more plus the
same entitlement to refreshments, accommodation, communication and
alternative transport.

You shouldn’t have to do anything to obtain your compensation – the
airline should offer it to you. However, if you don’t get anything,
your first step should be to contact the airline. If you don’t have any
success dealing with the airline direct, get in touch with the Air
Transport Users Council, the UK consumer body representing air
passengers and their rights. It will look after your case on your
behalf and may refer it to the Civil Aviation Authority if necessary,
which has the power to prosecute airlines for non-compliance.

Arranging a funeral

2007-04-21T02:57:00.002-07:00

Suffering a bereavement is a difficult enough time without the stress of arranging a funeral. It can be an expensive business, though, so it pays to do your research and contact a few different funeral directors before making a decision. Don’t worry – this doesn’t show a lack of respect for you deceased loved one. Of course, you want the best you can get for them, but this shouldn’t have to cost the earth. Here’s a guide that will take some of the stress out of arranging and paying for a funeral.

After you’ve registered the death you’ll receive a death certificate and a certificate authorising a funeral. You’ll need this for the funeral to go ahead.

Decide what you want

The first step is to decide what type of funeral you want. Find out whether your loved one made any arrangements or requests for their funeral before their death. Check their will if they made one, as they may have made special funeral requests in it. They may also have set up a funeral plan, in which they agree arrangements with a funeral director and make pre-payments towards the cost.

If nothing has been arranged in advance, decide for yourself how you would like the funeral to take place. It needn’t be formal, and neither does it have to be religious. You can choose anywhere you want for the service, not just a place of worship. You’ll also have to decide whether your loved one will be buried or cremated.

Get quotes

Make up a specific list of what you want for the funeral before you visit any funeral directors. This will help you to establish the full costs and compare like-for-like between quotes. Many funeral directors don’t declare every expense in their quotes and it can be difficult to get the full price before the funeral takes place, so taking a specific list of requirements will help to ensure you get an accurate quote. Prices can vary enormously from one director to another, so speak to a few.

If the funeral director is a member of the National Association of Funeral Directors, they will be obliged to provide what’s called a ‘basic funeral’ if asked to do so. This should allow for a reasonable funeral for your loved one. Watch out when you’re getting quotes though – the particulars of a basic funeral can differ between funeral directors.

Your list should include the following basic requirements: a funeral director, a coffin, a hearse, family cars, looking after the body, flowers, doctor’s fees for statutory certificates, the cremation or burial fee, a minister or someone to conduct the service, a gravedigger (burial), a plot (burial), a headstone (burial) and a casket/urn (cremation).

There may be several different fees that the funeral director will have to pay to third parties for the arrangement of the funeral – doctors, churches, crematoriums. These are known as disbursements. Check whether these are included in the price.

Don’t be afraid of scrutinising and questioning the costs with the funeral director. You’re entitled to know what you’re paying for and what is included in the price – and you want to make sure you get it right for your loved one.

Burial

Your loved one is entitled to be buried in the parish in which they lived or died, providing there’s a churchyard and enough space. They can also be buried in a different parish, but permission will be required from the local minister and the fee may be more expensive.

You’ll have to pay a fee for a plot and for a gravedigger, or if you have an existing family plot, there will be a fee for opening it up. Check with the church whether your loved one has already paid for a plot in the graveyard.

There are no stipulations as to what the coffin is made of or what you place in it with your loved one. Many environmentally conscious people are now requesting coffins made of cardboard rather than wood. You’re also free to put anything you want in the coffin, such as cherished items that they owned or photographs. You can also have them dressed in their own clothes.

Cremation

Extra authorisation is required before a cremation can take place. The cause of death must be confirmed. If the case has been referred to a coroner, they will issue authorisation without charge If the person died in hospital, only the doctor who last attended them needs to certify. Otherwise, two doctors will be required to see the body and sign an authorisation form, one of whom must be the doctor who last attended the person alive. A fee will be charged by both doctors for doing this. The next of kin must also complete an authorisation form.
Your funeral director will help to organise this.

You may choose to have both the service and the committal in the crematorium – most have a chapel. You can have the service anywhere though, and jus the committal at the crematorium.

Check whether the crematorium fee covers scattering of the ashes in the memorial garden. You may also want to pay for a plaque in memory of your loved one.

DIY funeral

You could opt to arrange and manage the funeral yourself, although it may turn out to be very hard work at such a stressful time. You’ll need to sort out the appropriate statutory forms yourself, buy a coffin and other materials, arrange the service and committal, and hire or find cars and a hearse or suitable vehicle for the coffin.

Paying for the funeral

Banks generally allow funds to be released from the account of the deceased to pay for funeral expenses, so check their account balance to establish whether there’s enough to cover it.

If there aren’t sufficient funds and you have no means of paying for it yourself, you could be eligible for support from the government’s Social Fund. To qualify you or your partner must be receiving means-tested benefits already, such as jobseeker’s allowance, income support, tax credits or council tax or housing benefit. (Your deceased loved one doesn’t have to have been claiming benefits though.)

You’ll also have to be deemed to be responsible for arranging the funeral in order to claim, and the dept will also take into consideration whether there are any other close relatives who can afford to pay.

If you do receive a grant, some or all of it may have to be repaid from the estate of the deceased when these funds are released.

There are other benefits available to people who have suffered bereavement. You may be entitled to a bereavement allowance for up to a year if you have been widowed or your civil partner has died. To qualify you must be under the state pension age, you must not be bringing up children and your partner must have paid National Insurance Contributions (NICs). Find out from your local Jobcentre Plus what you’re entitled to claim.

Buying a used car

2007-04-21T02:57:00.001-07:00

Buying a used car can be risky if you don’t carry out detailed checks
on the vehicle. It’s not always easy to determine the history of a used
car, but it’s crucial for ensuring you buy a safe, roadworthy and legal
vehicle. How do you know how old it really is? Has it been stolen? Is
the mileage genuine? Has it been involved in any accidents? Here’s a
guide to what to look out for when looking for a good used car.

First of all, the safety of a used care can depend on where you buy it.
Franchised dealers tend to be the most reputable, whereas at the other
end of the scale private sales carry the most risks.

With a franchised dealer, it’s likely that the car will have come from
a reputable source and will have been thoroughly inspected and all
faults fixed. The after-sales service should be good as well, with many
franchised dealers offering excellent warranties. Another key benefit
is that you should be able to part-exchange your old car, to save you
the hassle of selling it yourself.

Buying a car from a franchised dealer is the most expensive option,
though, so many people instead use independent dealers or private
sellers. The advantage of using an independent dealer is that their
prices can be more competitive and they tend to stock older cars. Check
whether you’ll get a warranty, though, and find out whether the model
is an import – specifications can vary a great deal and you may not get
as many features on an import as you would with a UK model sold at a
franchised dealer.

The cheapest option can be to buy privately, but this carries the most
risk as you don’t know who you’re dealing with and you don’t have the
same statutory rights and protection as you would when buying from a
franchised or independent dealer. The motto with private sales is
‘buyer beware’. This doesn’t mean that all private car sales are dodgy
and unreliable though – there are many crooks out there, but a good
many more honest and legitimate sellers. It’s just a matter of checking
carefully and acting cautiously before you jump in and buy.

When buying a used car, the main things to look out for are whether it
has been involved in a crash – which could have compromised its safety;
whether it has been written off and illegally put back on the road –
perhaps ‘cut and shut’ from two different car wrecks; whether it is
stolen; whether it has outstanding hire purchase or finance owing;
whether it has been illegally ‘clocked’ to make it seem as if the car
has a lower mileage; and, on a less sinister note, whether everything
is still in full working order.

The best way to ensure that you don’t end up with a lemon is to get a
car check done by an expert. The AA and RAC carry out thorough checks
on used cars and can provide reassurance and peace of mind. There are a
lot of things you can look out for yourself, though.

For example, some signs that the car has been clocked are worn screws
on the dashboard, a very low mileage for the age of the car (10,000 to
12,000 miles is the average annual car mileage), misaligned digits on
the counter, or signs of wear and tear that would indicate a higher
mileage such as chips and scratches around the bonnet and bumper or
worn foot pedals. Mileage must be recorded annually on the car’s MOT
certificate, so inspect these certificates to check for discrepancies
or whether the MOT certificates have been amended or forged.

Spotting a ‘cut and shut’ is more difficult as they can look just like
legitimate cars. Look inside the boot and bonnet of the car to check
for different paint colours. Also look out for signs of joins or
welding, particularly at the bottom of the door frame or the top of the
windscreen. Also ask to see the vehicle registration document (V5) and
compare the engine numbers and chassis numbers against those on the car.

As with any product, things can start to go wrong with age and normal
wear and tear from everyday use. The older the car, the more likely it
is to have faults or problems. Take plenty of time to inspect the car
thoroughly to ensure that everything is safe and in working order.
Don’t be afraid of wasting the seller’s time or appearing suspicious –
if they are legitimate, they will not be offended. Also take the car
for a test drive to see how it feels and sounds. Check that the
steering handles properly, the brakes work, the instruments and the
lights on the dashboard are all in working order, the tyres have a
tread depth of at least 1.6 mm, the seatbelts work, the windscreen
wipers work, there are no leaks in the window, door, sunroof or
windscreen seals, and that the engine looks in reasonable condition
with no oil leaks. Also ask to see the MOT certificates, service
history and vehicle registration document.

If you have any doubts after checking the car and documentation or are
suspicious of the seller, walk away. You could find yourself seriously
out of pocket if you buy a car that turns out to be stolen, faulty,
written off or still under a hire purchase agreement. More importantly,
though, your safety could be at stake and it’s just not worth taking
the risk.

Bankruptcy Primer

2007-04-17T04:18:00.002-07:00

Bankruptcy is the legal means of wiping out debt. It may seem like a simple solution when you get in over your head in debt. Bankruptcy, though, should not be taken lightly. There are many repercussions of filing bankruptcy.

Before you file bankruptcy you should have a good understanding of the process and what to expect after you have competed filing.

Bankruptcy is meant to give a person a fresh start by relieving debt. A person can file bankruptcy for most debts they have incurred. Some debts can not be cleared through bankruptcy, though. It is very important for a person to check each of their debts to see if they can be cleared through filing.

During a bankruptcy proceeding a person has to make attempts to pay what they can. Most assets and cash on hand is seized and used to pay off the debts. There are some assets which are exempt and can not be used to pay off debts. Once a person starts bankruptcy proceedings creditors can no longer attempt to collect debts from them.

Bankruptcy is filed in a U.S. Bankruptcy Court. There are six types of bankruptcy. Only a few of these apply to an individual. Chapter 7 and Chapter 13 bankruptcies are the most commonly filed by individuals.

Under Chapter 13 a repayment plan is set up instead of assets being seized. The exempt assets list varies from state to state, so a person should check their states bankruptcy laws to see what assets they will not have to surrender.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 changed how individuals file bankruptcy. The aim of this act is to prevent people from using bankruptcy as a way to get out of debt and instead use alternatives to help them get out of debt.

It bases the idea of paying back debts on a person income. If a person has the ability to payback their debts then they are required to do so. It also requires credit counseling to help ensure a person does not end up with debt problems in the future.

Perhaps the most important point for a person to understand about bankruptcy is that it is not just an easy method to clear debts. When a person files for bankruptcy the creditors are not just going to walk away. The court will try to ensure that every step is taken to pay back as much debt as possible.

The court will force a person to sell their assets, like their vehicle, to pay off the debts. Bankruptcy is more about protecting the individual from having creditors harass them or attempt to collect debts. Once a debt is cleared through bankruptcy, the creditor can not attempt to collect on the debt ever again.

Bankruptcy- Credit Scoring Explained

2007-04-17T04:18:00.001-07:00

So you have built some equity in your home, and your thinking about using that equity to refinance a chapter 13 plan? Getting the loan financed is only half your battle. Assuming your have a loan officer that is competent enough to get your Chapter 13 plan refinanced, you've only come 40% of the way to rebuilding your credit. Most loan officers close their loan and forget about their customers. Rebuilding your credit after a bankruptcy is a challenging process. Having a loan officer that will guide you through the process of rebuilding your credit is the most important part of discharging a chapter 13.You need a guide in picking up the proverbial pieces. A good loan officer will guide you through the process step by step.

Before you make any decision, you need to consider your options. Is your bankruptcy something that could be paid off with a tax return check? If the anwser is yes, you may not want to refinance unless your terms are still better than your current mortgage. Is your mortgage an ARM or fixed rate? What is your current interest rate? (if it is fixed) length of time you plan on staying in the property. You never want to strip equity from your home just because you want a bankruptcy behind you. Most loan officers wont tell you the truth because they dont know or understand what it is they are selling you. A subprime 2/28 is the standard for rebuilding credit.

The 2/28 or 3/1, 5/1 30yr will over time help your credit because you will have a mortgage reporting on your credit report again. Often times what happens is when an automatic stay is placed on your debts, the mortgage company stops reporting or reports in your collection account area. Collection accounts do not give you a benificial remark. Even when your bankruptcy is paid off, your previously defaulted mortgage will remain in your collection accounts. The older the derogatory info is, the less weight it will carry on your score. Payment history is only 35% of how your FICO is calculated. Since a public record is on your credit report your graded on a considerable curve. Similar to college, when everyone in the class or the majority did poorly on an exam, the teacher may grade a 40% as a C+.In comparison to the rest of the class, you did average +. Fair Issac has adopted the same kind of model in determing a score for a group of individuals that have had a public record on their credit report. The good things you do when graded in this pool will signifigantly increase your credit score. On the flipside of the equation, should you miss a payment from after post petition refinancing is approved, your score will be more adversely affected than the rest of the consumer base. The average fico in the US is a 720. It is very attainable to have a 720 6 months to 1yr out of bankruptcy. The most important part of rebuilding credit is establishing revolving trade line of 500-1500 limits. Applying for multiple credit cards is NOT what you want to do.

Many times when a chapter 13 is paid off, all debts are paid off completely. If you have revolving charge cards that were not in your credit matrix when you filed bankruptcy, keep them open with low balances. Often times borrowers will do debt consolidation loans, payoff their debts completely and think that they just helped their credit. You did not help your credit. You hurt your credit. A mortgage is different when paid off, because it will always be replaced by another mortgage tradeline when refinancing.Establishing credit by means of secured credit cards, is the fastest way towards building a healthy credit score. For information on chapter 13 loans or credit rehab please contact the author.

Filing Personal Bankruptcy UK

2007-04-17T04:17:00.000-07:00

Are you battling with your debts and feeling financially strained? Is filing bankruptcy uk the only solution you feel? Learn out more from bankruptcy information. Bankruptcy can help you deal with your financial predicament by filing for bankruptcy. Information on personal bankruptcy Loans: Chapter 7 and Chapter 13 bankruptcy personal uk.

Bankruptcy law uk states that: Both Chapter 13 and chapter 7 bankruptcy!

If you have filed for chapter 7 personal bankruptcy, then an online bankruptcy loan will be made to you only after your two year completion of bankruptcy discharge. Bankruptcy loan is approved fast to a chapter 13 bankrupt personal on condition that he has made his full payment to all his creditors.

Get out of debt with Debt consolidation, iva and debt management. Credit card debt consolidation can be your best financial solution if you want to save your property from being confiscated and at the same time arrest your credit problems. Do not file bankruptcy uk if you feel you can keep up with the loan payments being consolidated together. Rightly use the debt management strategies and understand the nuances of debt solutions before getting into any kind of bankruptcy information: personal bankruptcy filing

After bankruptcy, your finances can be met by bankruptcy loans!

A plethora of online bankruptcy loan will reduce your financial burden and get you fast loan after you have merged out of your debts. Your dream home can take wings with uk bankruptcy loan post bankruptcy discharge. Also avail of online quotes and compare the loan terms, conditions and rates before you take up any personal bankruptcy loan.

The two factors that play a vital role in facing this challenge and approving you a bankruptcy loan regardless of your recently discharged bankruptcy is the flawless credit report and your down payment. Few bankruptcy advisors do add that its not enough if you have a flawless credit history and a down payment but also proof of constant income. Not all income is considered sufficient enough to obtain a post-bankruptcy loan. If these two are in your favour, there’s no stopping you from taking a bankruptcy loan.

However, it is essential to understand the drawbacks of filing personal bankruptcy uk. Whatever be your financial predicament, consult a professional who has dealt with several such bankruptcy cases and learn how to cost-effectively get out of debt. More information on personal bankruptcy can be sought by seeking help online.

The Collateral Factor On Bankruptcy Loans

2007-04-17T04:16:00.002-07:00

Thus, it is a lot easier to obtain a secured loan after bankruptcy than an unsecured loan. Actually, only low amount unsecured loans can be obtained after a bankruptcy process for many years. High amount unsecured loans are out of reach for those who have gone through bankruptcy unless at least 5 years have passed since bankruptcy was dismissed.

The Implications of Collateral

Collateral acts as a guarantee of repayment of the loan borrowed. The amount of money lent is equal or lower than the value of the property used as collateral and thus, in the event of default, the lender is legally entitled to request the sell of the property in order to collect his money. This procedure is fast and has little hassles, thus, providing the lender with an important assurance of his investment.

This implies that the risk that lending to someone who has gone through a bankruptcy process is greatly reduced once the borrower offers a property as collateral. Also, it is possible for someone else (relative, friend) to offer one of his possessions as collateral if you are not a homeowner. Nevertheless, the risks that this implies need to be considered as the property can get lost to the lender if both the borrower and the collateral’s proprietor fail to repay the loan.

Loan Types Available

Financing after bankruptcy can be associated to different loan types. However, the main loans that can provide funds after bankruptcy are those associated with real estate forms of collateral. Home loans, home equity loans and refinance home loans are the loans that can provide finance articles funding after bankruptcy with the best terms and the higher approval rate.

Home loans or mortgage loans use a property free of debt to secure a loan. It’s rare for someone who has gone through a bankruptcy to posses an asset free from debts and liabilities. But this sometimes happens when someone inherits after a bankruptcy or when the property is donated. In any case, the other forms of financing are more common.

Home equity loans use the remaining value of the property that is affected with a mortgage loan to secure an additional loan with similarly advantageous loan terms as mortgage loans. Equity is the difference between the property’s market value and the amount of debt that the property already secures. Thus, the amount of money you can obtain is limited to that difference of value.

Finally, it is possible to refinance a home loan and obtain extra funds by taking advantage of the available equity on the property. These loans are known as cash-out refinance home loans and can provide a fair amount of money, just like home equity loans with the difference that you’ll end up with a single monthly payment instead of two.

Bankruptcy - How To Avoid It

2007-04-17T04:16:00.001-07:00

Bankruptcy is a court order and is the last resort if you're in debt. It is regarded as one of the life-altering negative aspects that one undergoes. Bankruptcy is seen as the last resort in such events where hopes of recovering outside of it are remote.

Bankruptcy is a serious matter that plays a role in changing the way the financial service providers deal with you even after you are discharged for many years. Your advisor may advocate bankruptcy for you but there are some issues to consider as you mull whether bankruptcy is right for you. You must consider all alternatives to bankruptcy as it involves the question of your rest of life. One of the most common types of bankruptcy is Chapter 7.

Analyze whether you are on the threshold of bankruptcy. Investigate thoroughly whether risking bankruptcy is systematic, particularly as applied to your case. Chapter 7 bankruptcy is for liquidation. Chapter 11 in bankruptcy cases is similar to that of Chapter 13 but differs slightly. When investigating, never deviate from the fundamental question that whether filing bankruptcy is the solution and whether it solves your debt problems.

Internet may not be your best source of information for bankruptcy help because millions of those websites just have their commercial interests and the information available there are pretty much diluted and bombastic. Do they mean that life after bankruptcy is easier than obtaining it? Old debts may get discharged but with prevailing credit reputation and financial breakdown many have found it bad to live life after. So be wary of statements like "I just filed for bankruptcy and now I can apply for a personal loan."

A Brief on Bankruptcy Process

Those who have filed bankruptcy aren't much aware of the process. The court appoints a trustee and notifies all creditors listed in your schedules about your filing of bankruptcy. Before the judgment, a lawsuit is filed and run against you. Bankruptcy related documents and case files are available online free of charge. Download all that relevant to your case. Of course, the papers may only reflect on the legal aspects but you are clearly realizing an ensuing scenario in true terms. And as regards to understanding of the life after bankruptcy order, signup to forums and browse through members' stories and experiences apart from counseling within your own circle.

The fact is it was never easier for someone who has filed bankruptcy to rebuild his or her credit again. If creditors sue you even before you can petition for bankruptcy, multiple outcomes are possible.

Once creditors become aware of your filing for bankruptcy protection, they must refrain from collecting their due and should be dealing with your attorney directly.

You can keep your properties and belongings even after you've filed for bankruptcy till you are granted it. However the bankruptcy law allows you to apply for mortgage after two years after you filed.

There is no doubt that whether the decision not to declare bankruptcy is a very hard. But the critical part of the bargain is that the person that enters bankruptcy is exposed as someone who is bankrupt because bankruptcy is generally perceived as a desperate way for some people to get out of debt. When you are drowning, bankruptcy may be another option after you have considered other alternatives.

Bankruptcy Survival and Recovery

2007-04-12T04:28:00.002-07:00

Bankruptcy can be seen as the ultimate in financial failure. Even Abraham Lincoln, a man universally admired as a great leader and orator, suffered bankruptcy at a time in his life. A more accurate definition of bankruptcy may be to see bankruptcy as one possible outcome as a result of taking certain kinds of financial risks. The creditors can initiate bankruptcy, but in most cases across the world, the debtor files bankruptcy. The debtor realizes that they can not pay back the debt in the way that it is being paid off currently and tries to find another repayment strategy so as to pay back most of what is owed.

The issue of bankruptcy has existed in human civilizations for a long time. In ancient Greece, the only person who could own property was an adult male who had been born locally. If this individual was unable to pay his debts, his wife and children could become debt slaves for a maximum of five years to repay the debts. Obviously very few ancient Greeks would want to take on large debt loads under these conditions.

The fundamental cause of bankruptcy is that the cost of repaying debts has become too large in comparison to the income that the debtor has available to pay debts. This can be the result of a number of issues; including a high cost business venture, such as a restaurant, a market that changes direction, such as the end of a building boom, or simply an overly optimistic assumption about repayment possibilities by the debtor. The debtor may still have the means to discharge most of the debt, just not all of it.

A number of modern democracies have developed alternative approaches to resolving the bankruptcy issue outside of the more formal bankruptcy proceedings. In Canada, there is the Consumer Proposal that covers debt between five and seventy five thousand dollars. In the U. K. there are Individual Voluntary Arrangements.

The actual method by which bankruptcy is resolved may vary from country to country, but the basic approach has many similarities. Basically the individual declaring bankruptcy surrenders control over a large part of their assets to an objective third party, in this case the bankruptcy court, in order to find another way to pay off an overwhelming debt load. Unfortunately for the creditors, they will most likely receive only a portion of what was originally owed to them.

Most modern democracies have a more enlightened approach to viewing bankruptcy than may have existed in the past; bankruptcy is not necessarily a sign of poor character or an unwillingness to discharge debts. As a result of this more modern viewpoint, the potential for a bankrupt individual to recover and once again enjoy home ownership or credit is much greater. Some lenders even specialize in lending to previously bankrupt individuals. A good place to search for these lenders is on the Internet.

Going through bankruptcy proceedings is not an activity that most people would consider pleasant, but it may be necessary to control an increasingly overwhelming debt situation. If you are faced with the difficult choice of declaring bankruptcy yourself, or waiting for your creditors to bring bankruptcy proceedings, you may prefer a course of action where you at least feel some control. The best approach is always to be well informed about your possible strategies and options.

Beware Of Debt Relief That Conceals Filing For Bankruptcy

2007-04-12T04:28:00.001-07:00

The consequences of such drastic solutions are long lasting and very negative and thus, you should be extremely careful when selecting the agency providing debt relief.

This has become a common practice among some online debt relief providers that advertise what really are bankruptcy solutions as debt relief. And though bankruptcy eventually provides relief from most of your debt, the costs of filing for bankruptcy are vast. So, make sure you really want to go down that path because once you’ve taken it, there is no way back.

Easy Debt Elimination Process: For Them or For You?

A proper debt settlement program needs to last years. The agent has not only to negotiate your debt till its fully paid off or at least on the right track to being canceled, but it has also to do a follow up on your expenses and income and teach you how to budget and manage your money properly. All this process takes time and patience on both sides and requires commitment.

A bankruptcy process may be a simpler solution with an easy procedure for those used to filling those applications for third parties, but to the one who is actually filing for bankruptcy, it is an intricate procedure, costly, time consuming and emotionally weary. Thus, though it may be an easy debt elimination process as advertised by many agencies, it is only so for them and it won’t be so for you.

Side Costs Of Bankruptcy

The long term negative influence that bankruptcy has on your creditworthiness should make you think twice before deciding to file for bankruptcy. All the entries of importance regarding your bankruptcy will stay on your credit report for 10 years. This implies that whenever someone pulls your credit report, that information will show up reducing your chances of getting finance.

Moreover, it can also hinder your ability to obtain a particular job, insurance or to rent a property as it will scare those who pull your credit away. As you can see, the consequences of filing for bankruptcy are not all benign. Yes, you’ll obtain some ease on your finances and get rid of most of your debt, recover your income and stop harassment from debt collectors. You may even get your peace of mind again, but you should ponder the costs also as there are other ways to obtain all of those things.

Chapter 13 Refinance-Foreclosure Buyouts- Subprime Mortgage Woes; Its Affect On Chapter 13 Debtors

2007-04-12T04:27:00.002-07:00

Every time we turn on the news the buzz word of the quarter has been "subprime". This small segment(15%) of the mortgage industry has garnered the attention of the media. The truth is; yes defaults are hurting some banks liquidity.

Guidelines are changing and the subprime market is temporarily wounded.This does not mean if you are in chapter 13 or pre-foreclosure that you can not refinance your home, if you have equity.The people who are really in trouble are those with poor credit and a high LTV(loan to value).

The 100% stated income/stated asset purchases/refi days are gone.Chapter 13 debtors are unaffected by the changes in the market notwithstanding. Quality chapter 13/foreclosure loans are still being funded(even with late payments).The loans may take longer in underwriting, but they will continue to fund chapter 13/foreclosure loans due to the high defaults around the country.

The big headlines are about Irvine CA based New Century and Fremont's demise.The demise of New Century and Fremont does not affect those that are trying to buyout a chapter 13 or a foreclosure.If you filed a chapter 13 you made very smart move, you still OWN a home. The demographic that's hurt the most is first time/subprime homebuyers. If you dont have a 620 FICO or higher don't expect to be buying a home without a considerable down payment. Many debtors have made the decision to sell their home. Selling your home should be a worst case scenario. Many mortgage brokers put the idea in a borrowers head that "If I cant get you approved, you won't be approved anywhere". That kind of thinking is not only negative, but outright erronous.

If you need a a bypass heart operation would you see one or two cardiologist's and call it quits? You worked hard to become a homeowner, chances are you are not dealing with a chapter 13/foreclosure loan specialist. You wouldn't go to a ENT(ear nose and throat) If you were having chest pains. You need to deal with a loan officer that works only in chapter 13/foreclosure loans.The foreclosure guidelines are still 75%LTV Fully documented. Don't list your home if you think you may refinance. If you listed your property within a 6 month time frame, you will not be able to refinance the property.

Overview of Bankruptcy Chapter 13 Concept

2007-04-12T04:27:00.001-07:00

Generally, Bankruptcy chapter 13 concepts are preferred by debtors who have a valuable asset, such as a home, that is not completely covered by exemptions and that they wish to keep. This is possible because under Bankruptcy chapter 13 a debtor proposes a plan to repay creditors over a three to five year period during which the debtor can make up overdue payments on any assets and pay into the plan the equivalent value of any assets not covered by exemptions. Since the debtors plan will require regular monthly or biweekly payments, Bankruptcy chapter 13 is usually only appropriate for an individual debtor who has a regular source of income.

Steps to Increase Chances of Best Mortgage after Bankruptcy Chapter 13

Bankruptcy is extremely damaging concept if any how attached to your credit. Effects of this concept remain visible for at least seven to ten years. During the period you can’t expect low rates for loan needs as only high interest rates are meant for bankruptcy chapter 13 effect facing individuals, on homes, cars, and personal loans. Intelligent use of below steps guarantees you better chances of getting a good rate loan. To begin with the process, you must select the right lender.

Comparative Analysis of Good Mortgage Lender & Bad One

Mortgage companies are in the business of making money. Thus, they do not always have your best interest in mind. If you have poor credit or a recent Bankruptcy Chapter 13, some lenders are reluctant to offer you a mortgage refinance. The lenders that do offer refinancing for poor credit applicants may add extra fees and a higher percentage. The goal is to boost their profit.

A good mortgage company will not take advantage of you. Instead, they will carefully review your situation, and offer the best rates possible. Of course, your refinance rates will be higher in comparison to an applicant with perfect or good credit. Still, a recent Bankruptcy Chapter 13 does not justify an interest rate that is 6 or 7 percent above the current rate.

Choose Best Lender to Refinance Your Mortgage Loan

While choosing a lender to refinance your home loan following a Bankruptcy Chapter 13, you must be prepared to conduct your own research. Before applying for a refinancing, visit online websites and find information about the current mortgage rates being offered to individuals with bankruptcies or poor credit. This way, you can make your own comparisons.

Next, you should apply for a refinancing with your existing lender. If you have maintained a good payment history with this lender, they may be willing to refinance your mortgage with a low rate. You may select any mortgage lender. However, because you have not established a history with these lenders, they may consider you a risky applicant and refuse to offer you a new loan.

Make Sure to get Approved with Sub Prime Loan Lenders

If your existing mortgage lender and other traditional mortgage companies deny your application, you should submit an application through a mortgage loan broker. Brokers have access to many home loan financing companies. These include sub prime lenders who offer loans to people who cannot get approved through a bank or traditional mortgage company.

Follow the above steps to ensure loan that matches your personal requirements and current financial condition. Even Bankruptcy Chapter 13 concept effect seems nothing if you follow golden steps discussed in above lines.

Bankruptcy Primer

2007-04-12T04:26:00.000-07:00

Bankruptcy Loans Based On Equity Can Solve Your Problems

2007-03-26T05:44:00.001-07:00

If you have sufficient equity on your home you can get very advantageous terms on your loans even after bankruptcy.

Bankruptcy Home equity loans can be the solution to your financial problems. These loans feature very advantageous terms in spite of bad credit. Thus, your bankruptcy won’t be an obstacle for approval and you will only have to meet some basic requirements in order to qualify for a bankruptcy home equity loan.

Bankruptcy Home Equity Loans

Bankruptcy home equity loans are specially tailored home equity loans that have been designed to meet the needs of those who have gone through a bankruptcy process. The loan terms won’t be as advantageous as regular home equity loans but the requirements for a approval won’t be so harsh either so as to make sure that those with bankruptcies on their credit reports can qualify for them.

As regular equity loans, these loans are based on the remaining value of a property that is not securing a loan already. Equity is the difference between the market value of a property and the balance of the debts that the property is being guaranteeing. For example: a $100,000 house with a mortgage balance of $50,000 has another $50,000 of home equity free and that amount can be used to secure a home equity loan that almost always and especially on this case, won’t feature the total amount but a percentage (usually up to 85%).

Benefits Of Home Equity

Home equity can provide you with all the funds you need at very reasonable rates. Not only you can obtain higher loan amounts than with non-secured loans, the rest of the loan terms will also be significantly more advantageous: You’ll get lower interest rates and costs, more flexible repayment programs and thus, lower monthly payments easy to afford.

Also, since these loans are secured loans, there is not much to worry about qualifications. Due to the risk reduction that collateral implies, there are no thorough credit verifications to be done. Instead, a single credit pull will be made and the credit requirements for approval are lessened compared to regular sources of financing.

Requirements To Qualify For A Loan

As stated above, the requirements for approval are quite simple. A simple credit verification process followed by a thorough analysis of the property’s documentation will take place. And last, but not least, you’ll need to show proof of a steady income good enough to afford the monthly payments on the loan you apply for.

In order to prove income, you’ll need to show copies of paychecks or tax presentations and the amount of the monthly payments must not exceed 40% of your available income every month or else, you might not be able to get approved for the amount that you desire because the lender wants to make sure that you’ll be able to afford the monthly payments without sacrifices.

Is Bankruptcy Right For You?

2007-03-26T05:41:00.000-07:00

Sometimes things just don't turn out in business as you would wish them to. We don't plan to fail but sometimes it happens. Bankruptcy is a last resort - but you may need to consider it.

Bankruptcy is a very serious ordeal, not something to be thought about lightly. If you are considering filing for bankruptcy, there are a few things you should evaluate first, before you do.

The first thing to consider is your eligibility for Chapter 7 protection. If eligible, it will take a majority of your debt away. The guidelines can be strict, but if you are sincerely in need of such protection, this isn’t out of reach.

Secondly, you need to rethink your alternatives. Filing for bankruptcy can harm your credit drastically- make sure there is no other way out. You can try debt consolidation, or talking to your creditors yourself. If it doesn’t seem like things are working, then it’s time to consider your losses.

What kinds of debts can you relieve yourself of? Child support payments or student loans aren’t eligible for bankruptcy. Bankruptcy is more for credit, which is often the problem in itself.

If you still think bankruptcy is the only option, make sure you get an experienced attorney to help you through the ordeal. More bills, but an attorney will make sure the process is conducted correctly. Often, there are strict guidelines and restrictions you should be aware of. Bankruptcy isn’t something you should go through alone.

Whatever the outcome, there is always a place to turn to for help - online, on the telephone or in the main street. Use them.

Debt Settlement - An Alternative To Bankruptcy?

2007-03-26T05:40:00.000-07:00

Debt Settlement can constitute an alternative to filing for bankruptcy and should be taken into account when considering your possibilities if you’ve run into financial troubles. However, debt settlement truly is an aggressive approach to a debt elimination process and thus, also has some negative short term consequences. Nevertheless, as compared to bankruptcy the negative inputs on your credit report are completely manageable and you’ll be able to recover a lot sooner. Remember that a past bankruptcy entry remains on your credit report for up to 10 years.

Why Does Debt Settlement Work?

What lenders and other creditors want is to at least recover their investment. Thus they would most certainly prefer to settle for a lower amount than to risk the borrower to file for bankruptcy and maybe get nothing at all. However, creditors will want to get as much money as possible and will present a hard negotiating position so as to achieve this goal.

That’s why a debt settlement program should be carried out by professional negotiators. Negotiators know exactly how to deal with creditors and obtain higher waives on the claimed debts. Debt settlement experts know exactly how long they can push so as to make creditors give up a larger portion of the outstanding debt and thus enhance your financial situation.

Debt Eliminated Equals Taxable Income?

There is however, a problem with debt elimination that has to be taken into account when undertaking debt settlement. When debt is forgiven, it’s just like getting an additional income that was not expected. The IRS considers forgiven debt to be taxable and thus in most cases by the end of the fiscal period, you’ll have to pay income tax on that.

Though in almost every situation, eliminated debt equals taxable income and has to pay taxes, there are some situations in which special deductions can be made. If the financial situation of the borrower is particularly complicated, there is a special form that can be filled claiming excessive hardship that can waive the payment of the income tax on eliminated debt.

Short Term Consequences On Credit Score

During a debt settlement process there are some consequences that are inevitable. The credit history of the debtor will show unpaid balances and missed payments on various debts till all of it is finally settled. Thus, the credit score of the debtor will suffer greatly. All through the first phase of the debt settlement process the client’s credit score can drop dramatically.

This is due to the fact that creditors have to keep informing the state of the debts and open credit lines. Yet, after the debt settlement process is completed, the creditor can be obliged to notify that the debt was canceled. Nevertheless the report will show that debt was settled or that it was settled for less than the full amount which will remain in your credit report showing that you resorted to debt settlement services.

Debtors Prison, A Brief History of Bankruptcy

2007-03-22T02:35:00.001-07:00

In Ancient Israel, every 7th year (Sabbatical year) the debtors were forgiven some of their debt and every 50 years (the Jubilee year) all debts were to be discharged, some mortgages released and all indentured servants and slaves were to be released. In the meantime, the family members had the right to make payments on any property or persons that had been seized to satisfy the debt. In Ancient Greece and Republican Rome, debtors suffered death, slavery, mutilation, imprisonment or exile. Roman Republic Law allowed multiple creditors to exhibit a debtor in the forum for three days and divide the debtor up into pieces to satisfy the debt. Evidence exists suggesting multiple creditors could also seize a deceased debtors corpse and hold it ransom from the debtor's heirs until the debt was satisfied. As Rome became an empire, approximately the second century AD, debtor slavery had been abolished, debtor prison continued to exist. The debtor could be held for ransom until friends and family of the debtor paid the debt. In the middle ages, the church proclaimed debt and insolvency sinful. Debtors were subject to excommunication while alive or denial of a Christian burial upon death. Punishment of debtors was necessary to assist the land-owning and religious ruling classes in maintaining their power. The first bankruptcy laws arose in the late middle ages. The laws provided the protection of fraud against creditors stemming from an inequitable distribution of assets and the protection of the debtor from imprisonment. In 1283 authorizing the seizure of debtor's assets to satisfy debt. If the assets seized were insufficient to satisfy the debt, then imprisonment of the debtor was incurred until the debt was paid. In 1542 in England, the first known bankruptcy law was passed to give creditors options against debtors who did not pay their debts. Under this law, the debtors were considered criminals. In 1570, England passed its second bankruptcy law, among other things; bankruptcy was initiated by the creditor and involuntary for the debtor. Once the debtor's assets were seized, sold and distributed to the creditors the debtor was not relieved of the debt and creditors could continue their collection efforts. English debtors prior to 1705 rarely knew forgiveness of debt.

England enacted a statute in which creditors could receive a full discharge of debts, while being able to retain exempt property provided certain conditions were met. In 1823 when Charles Dickens was 12 years old, his father was sent to debtor's prison at Marshalsea. Charles started working in a boot factory for 10-hour days to pay for his lodging and help support his family. Debtors act of 1869 is an English statute that abolished imprisonment for debt except in certain cases, as when a debtor owed a debt to the Crown or a debtor had money but refused to pay. The statute also made it a misdemeanor to obtain credit under false pretenses or to defraud creditors. In America up to the mid 1800's you could go to prison for not paying your debts. In 1898 the Bankruptcy Act allowed both voluntary and involuntary cases. Debtors could keep exempt property and discharge virtually all debts. In 1938 the bankruptcy laws were overhauled by Congress and the law that exists today is the Bankruptcy Act of 1978. Several amendments and changes have been since then.

Why Bankruptcy May Not Be Your Best Option

2007-03-22T02:34:00.003-07:00

You are in a position of needing to consider bankruptcy based on your current financial situation. Hopefully you have learned some lessons along the way in getting to this point, like about how do strike deals, when to get statements in writing from partners or customers, how to plan more carefully for the needs of your company so that you do not grow too fast. Whatever the reason, you got to this point and are now considering filing for bankruptcy.

You need to be fully aware that filing bankruptcy should be your absolute LAST course of action, and only taken after you have thoroughly exhausted all other alternatives. There are probably more excellent reasons to NOT file bankruptcy than there are good ones. While bankruptcy may be your only viable option, you need to ensure that you have exhausted all other viable options first.

Be aware that filing bankruptcy is going to be a huge red flag on your credit report for the next 7 to 10 years. There is nothing you can do about it, and that red flag is going to cause you to be turned down for loans and financing, or if you do get approved, the interest rate that the lender will quote you because he is "taking a chance" on you is going to be astronomically high. That means that it is going to take you longer and will also cost you more to get back on your feet, so consider your options carefully.

One of your options would be a debt consolidation loan. Many people like to live on a champagne lifestyle even though they only have a beer budget, and sooner or later that decision is going to catch up with them. A debt consolidation loan can help. You need to take all your outstanding accounts, add them all up, and then determine how much you need to borrow to get them all paid off. Do NOT borrow more than you need, because that can potentially get you into an even deeper hole than the one you are in now. This approach has the advantage of just paying ONE loan payment at the end of the month, and although the interest rate on that loan may be higher than what you would like to see, it is probably less overall interest than if you were to pay each creditor separately, so you are actually saving money, as well as keeping your creditors happy.

The other positive aspect of a debt consolidation loan is that the total amount you are paying per month is probably going to be significantly less than if you made separate payments to each of your creditors every month. For example, say you are paying out $3000 if you paid each of your creditors individually, but after a debt consolidation loan, your total payment is now only $2000. That extra $1000 every month may give you enough breathing room to where you can hold on until things start to turn around for you, without filing for bankruptcy.

Another thing you need to do is to keep an eye on your credit report. You have been treading water financially for awhile, but there is no sense in allowing your credit report to make you look like you are in a worse position than you really are. Your credit report almost certainly contains errors, and you should visit Improve Your Credit Score to find out how to improve your credit score and win your disputes with the credit bureaus.

If you are having trouble managing credit, you should make an appointment with a credit counselor. These are usually non-profit organizations whose job it is to help you make better decisions about credit and to help you see a way out of your current situation. These organizations have helped thousands of people get on the right path, and they can help you also.

If you feel that you have exhausted all possibilities and bankruptcy is the only one left staring you in the face, be sure to do it the right way. At our site is a free form you can complete to get more information about bankruptcy from a bankruptcy lawyer who is local to you, and who knows your state’s laws concerning bankruptcy. This is a huge step with a lot of complications, so it is not something you should want to do on your own without legal assistance.

Life after Bankruptcy

2007-03-22T02:34:00.001-07:00

Bankruptcy is the last resort for any debtor wherein he/she legally declares the inability to pay back the debt owed. In most cases bankruptcy is initiated by the debtor or the organization. However creditors can also request bankruptcy in an effort to get back what they are owed. After filing bankruptcy you can choose the life you want to live – you can either re-build your finances or plummet deeper into the abyss.

Follow The Checklist below and You're Going to Emerge Unscathed Even after Bankruptcy

• Restrict or if possible STOP using credit cards
• If required get a secured bankruptcy credit card an pay your dues regularly
• Wait for two years before availing mortgage or even bankruptcy car loan to get the best interest rates
• Get copies off your credit reports and ensure that your accounts are listed as discharged

Bankruptcy Loan – Getting a Loan after Bankruptcy

Availing small and easily repayable bankruptcy loan – be it bankruptcy home loan or even bankruptcy car loan, will help you not just deal with your financial obligations but it will also help you rebuild your credit rating. A small bankruptcy personal loan is the ideal solution to repair your credit status. However there are some facts about bankruptcy loans that you must be aware of.

Firstly, bankruptcy loans are recommended only for people who have declared themselves bankrupt and only after their case has been discharged, their creditors have been paid. You have to wait for at least 2 years for your bankruptcy home loan or bankruptcy car loan application to be approved without unnecessary delay. Generally lenders perceive bankrupts as threats and don’t particularly want to risk lending to a recently discharged bankrupt. If you have chosen Chapter 7 Bankruptcy you must wait for 2 years to apply for a loan and in case of Chapter 13 Bankruptcy you need to first pay the full amount to your creditors before applying for a loan.

Can You Get A Credit Card After Bankruptcy?

You owned a home and hardly ever defaulted on your monthly payments. Your credit report sparkled. But unfortunate health circumstances forced you out of your job and you had to file for bankruptcy…Today you are looking for bankruptcy credit card without being charged outrageous interest rates. So what are you’re choices? You can choose between secured credit card for bankruptcy and unsecured credit card after bankruptcy.

Secured bankruptcy credit card is secured by a savings account you establish with your creditor. This savings account works as collateral for your credit limit. If you default on your payment your creditor will take money from the savings account. If you’re looking for a risk free credit card after bankruptcy – unsecured bankruptcy credit card is the option for you as it does not require any collateral.

Many people think about filing bankruptcy but the fear of life after bankruptcy hold them back. The information offered in this article aims to enlighten you on what you can expect when you have filed for bankruptcy.

Fresh Start Loans To Overcome Bankruptcy!

2007-03-22T02:33:00.002-07:00

Fresh start loans can provide the funds needed to get back on track after financial failure and can help you recover your credit score and improve your credit history.

The financial industry has created fresh start loans because more and more Americans get in financial problems like these due to the misuse of credit cards and other financial products. Getting finance after a bankruptcy process is extremely difficult due to the bad credit it implies. However, these loans can provide funds and at the same time aid you in recovering your credit so you can resort to traditional forms of financing again.

Why Are Fresh Start Loans Ideal For Those With Past Bankruptcies

Fresh Start Loans are provided by non traditional financial institutions that have found a special niche for a new loan product. These loans are meant for those who need financing to start over, to recover their credit after bankruptcy. There is no particular purpose to this loans but the idea is that they should be used for starting over a new financial life free from missed or late payments, defaults or bankruptcies.

These loans provide suitable loan amounts under the form of secured or unsecured financing. The most important loan characteristics are the terms flexibility and the easiness on the requirements that are essential for those that have gone through a bankruptcy process and need to make a fresh start. These loans have little credit and income requirements for approval and provide financing with low monthly installments as the repayment schedules can be stretched to meet the borrower’s needs and budget.

Bankruptcy doesn’t have to be an obstacle if you don’t let it. With Fresh start loans you’ll be able to start over because they’ll provide the needed funds even if you’ve gone through a bankruptcy recently. They are an essential tool for those who want to overcome the consequences of bankruptcy and have failed to obtain finance through other means.

How Does Credit Recovery Occur After Bankruptcy

Credit recovery after bankruptcy is a process that can happen without intervention as long as no delinquencies are recorded into your credit history. As bills payments and debt reduction occur, nothing but good input gets recorded into your credit report thus slowly increasing your credit score. Since the last six months of the credit history are the most important ones, avoiding delinquencies and letting time go by is essential.

However, the monthly payments on a new loan can accelerate this process and fresh start loans are particularly good for this purpose especially if the applicant has a past bankruptcy on his credit history. An open line of credit or a loan that gets repaid in a timely manner with no late payments and no missed payments, shows as a very positive input on your credit report and will boost credit recovery significantly. That’s why these special loans that are awarded despite bankruptcy can contribute to credit recovery.

What to Do After Going Bankrupt

2007-03-22T02:33:00.001-07:00

Bankruptcy is one option to consider in order giving yourself a “fresh start,” when you have more debts than you have assets.

There are in fact many types of bankruptcy provided under the law but the most common is Chapter 7 bankruptcy, which is also known as liquidation.

All in all, the vital task of the trustee is selling your properties and using the proceeds to pay your creditors. After doing such, the court will then cancel many of your remaining debts, thus affording you a “fresh start” to life.

Here is a step-by-step guide to filing a bankruptcy under Chapter 7 bankruptcy:

Step 1: Decide whether you should file bankruptcy or not.

Filing bankruptcy is a personal decision, influenced by many factors, such as the amount of serious debts and your ability to meet the original payments or pay the full amount. For starters, when you are broke, it is never a nice experience getting harassed by creditors for debts incurred. For another, your decision to file should not be made for the sole purpose of putting a stop to your demanding creditors.

This is a significant point as secured creditors may apply for “relief from stay,” thus allowing them to continue their efforts to repossess or foreclose even though you already filed for bankruptcy.

Step 2: Get an attorney

While the law on Chapter 7 bankruptcy does not need individual consumers to hire an attorney who would represent them in court, it is still advisable to ask for legal help, particularly concerning critical decisions involved in bankruptcy.

Step 3: Comply with the legal requirements.

File your petition with the bankruptcy court serving in your area. If you are a business debtor, then file with the bankruptcy court in the place where the business was organized or has its principal place of business or principal assets. Your attorney should be able to advise you on how to deal with these required legal forms.

Step 4: Pay the necessary fees.

As with any other court cases, there are certain fees required, such as:

• Case filing fee
• Miscellaneous administrative fee
• Trustee surcharge

Upon filing, you are usually asked to pay these fees to the clerk of court.

Note that the number of installments is limited only to four. Additionally to that, you are also required to make the final installment no later than 120 days after filing the petition.

Step 5: Notice to the creditors and meeting.

After filing your petition for bankruptcy under Chapter 7, paying the necessary fees, and complying with the legal requirements, an “automatic stay” is granted to you by operation of law. This stay will efficiently stop most collection actions against you and your properties. This means that as long as the stay is in effect, creditors cannot initiate or continue lawsuits, wage garnishments, or even telephone calls demanding payments.

After the bankruptcy case has been filed, the bankruptcy clerk will give notice to all creditors whose names and addresses you provided. Then, the case trustee will hold a meeting of creditors between 20 and 40 days after you filed your petition.

Step 6: Cooperate with the trustee.

The case trustee has a vital role in a bankruptcy case. His primary responsibility is to liquidate your nonexempt assets in a manner that maximizes the return to your unsecured creditors. He does this by selling your property, if it is free and clear of liens and as long as it is not exempt, or if it worth more than any security interest or lien attached to the property and any exemption that the debtor holds in the property.

In view of the broadness of a trustee’s power, it is significant therefore that you cooperate with the trustee. Provide any financial records or documents that the trustee requests and answer questions, which the trustee is necessary to ask at the meeting of creditors under the Bankruptcy Code.

Step 7: After the discharge

If all goes well with your Chapter 7 bankruptcy case – that is, no one files a complaint objecting to the discharge or a motion to extend the time to object – the bankruptcy court will issue a discharge order relatively early in the case, about 60 to 90 days after the date first set for the meeting of creditors

A discharge order is an order issued by the bankruptcy court, releasing you from personal liability for most debts and preventing your creditors from taking any collection actions against you. As a rule, excluding cases that are dismissed or converted, individual debtors receive a discharge in more than 99 percent of Chapter 7 bankruptcy cases.

For someone filing under Chapter 7 bankruptcy, a discharge of almost all of your debts is the ultimate goal. With the release of all your debts and creditors stopped from pursuing any further collection actions against you, the opportunity for a fresh start is apparent.

Bankruptcy Alternative - Is Bankruptcy Still Your Best Bet?

2007-03-22T02:32:00.000-07:00

No chance of repaying your debts, no assets to pledge for any more loans, creditors are threatening action against you – Does this sound like a situation you’re in? You probably feel that bankruptcy is the best option for you but have you considered the long term effects of bankruptcy? You cannot obtain credit of £500 or more either alone or jointly without disclosing your bankruptcy. You can’t hold certain public offices, act as a company’s director or carry on business (directly or indirectly) in a name which is different from that in which you were made bankrupt.

It’s best to Avoid Bankruptcy!

Bankruptcy is not reversible and it stays with you for years to come. However bankruptcy alternative can help avoid the harmful effects of bankruptcy and gives you a sense of achievement that you have dealt with your debts. You must fully explore bankruptcy alternatives and avail bankruptcy help if necessary to make the best informed choice for your needs.

Bankruptcy Alternative - Do It Yourself Guide

1. Make a note of your monthly expenditure and come up with a realistic budget
2. Buy only on cash basis, STOP using credit cards
3. Don’t believe all the ads on TV and magazines, research and find the best product for your needs
4. Deal with your debts, begin today
5. Speak to your creditors or avail services of debt management experts to negotiate with your creditors
6. Find out more about IVA, CVA, consolidation loans
7. Learn to save and plan for your future

Bankruptcy Alternative – What Are Your Options?

IVA: This is a legally binding arrangement between you and your creditors. Insolvency Practitioner (IP) will help set up your IVA, negotiates with your creditors, freeze your high interest rates and help you with a single affordable monthly payment so you can be debt free in 5 years or less. You will be protected from any further action by your creditors and at the end of your IVA remaining debt will be written off.

Debt Consolidation Loan: You can choose to combine all your debts into one consolidated loan; you will benefit with lower interest rates and you will only have to make one affordable payment every month instead of dealing with a number of high interest payments.

Credit Counseling: There are a number of credit counseling agencies which will help negotiate lower interest rates and comfortable repayment options to suit your pocket. Credit counselors will offer all the information and help you need to consolidate your debts.

Informal Arrangement with Your Creditors: You could also opt for an “Out of Court Settlement” with your creditors and pay a lesser amount or make your payments over a longer period of time.

Whatever option you choose as a good bankruptcy debt relief option for your needs, act TODAY! There are a number of online credit counseling services which can help you with your queries. If you chose to read this article, it means that you are interested in bankruptcy alternative and if you are interested in finding alternatives for bankruptcy you have come to the right place as must be demonstrated by what all you have read till now.

Debt - Leveraging Your Way Into Bankruptcy

2007-03-22T02:30:00.002-07:00

'Back-in-the-day', as they say, when I was a young lad in my early twenties, I was given some fundamental advice on getting all I could out of life. It didn't make a whole lot of sense to me then, since it actually went against everything I'd experienced up until that time. 'Debt', as I was told, was now the preferred means of rapid asset acquisition and even good credit, no less, which meant approval for even more debt. The experts were preaching 'the more debt, the better'. It provided the opportunity to acquire and new home, a new car, new furniture, new appliances, and exotic vacations, to name just a few. It didn't make sense to me, simply because I knew it had taken my father and grandfather nearly a lifetime to purchase some of those things, since they had to save nearly all of the cost before even considering the purchase. So I'm thinking, "what is going on with this new approach to financial freedom?" And, exactly what kind of 'leverage' is it that I'm creating with this ownership of massive debt?

Frankly, I never totally bought into that revolutionary new philosophy. I settled instead for a much less stressful lifestyle, where paying off my credit card each year, utilizing my long awaited federal tax refund, was challenging enough. I simply never understood the life of constant worry over debt service that so many were willing to sign up for, just to have a few bigger and more expensive things.

The revolution may have started with my generation in the 1960s, but it gained enough momentum to become what had to be considered a national crisis. With debt and bankruptcy reaching all-time highs, and savings virtually non-existent, it became quite obvious to me that this so-called 'debt leverage' needed some rethinking. The truth is that using debt to create prosperity was a myth aimed at the working class. The fact is that the 'wealthy' had a much better understanding of the risks and never used that method nearly as much as we were led to believe.

According to a recent USA Today article about debt, 78% of Baby Boomers (my generation) have mortgage debt, 59% have credit card debt, and 56% have car payments. Financial expert, Dave Ramsey recently offered this observation: "Debt is dumb. Most normal people are just plain broke because they are in debt up to their eyeballs with no hope of help. If you're in debt, then you're a slave because you do not have the freedom to use your money to help change your family tree. It takes a lot of will, discipline, courage and help to slay the debt monster. But it can be done. Imagine how much you could put toward retirement if you just didn't have a stinking car payment."

The myth was that we should use OPM (other people's money) to gain prosperity. While that style may work for some, the average John Doe simply doesn't have the expertise, discipline or patience to make it a viable strategy. Ideally, when exposed to debt-promoting hype, one should always consider the risk. It's seldom that the advantages of newly acquired assets outweigh the risks associated with the additional debt.

So, what happens when the debt is so out of control that it's turned your life into a living nightmare? The unfortunate reality is that stress and anxiety can ruin your health, devastate your job, destroy your marriage and steal your peace of mind. Not withstanding personal loans from family or friends, there are generally only two remaining options available to those who want to continue breathing: Bankruptcy or professional debt counseling.

One should not be fooled with the notion that bankruptcy is just a simple way to start over. The fact is that it's a life-changing event that can cause life-long damage. Very few who have been through the process would report that it's a painless wiping-clean of the slate. In fact, it's listed in the top five life-altering negative events that we can go through, along with divorce, severe illness, disability, and loss of a loved one. It's an event that can leave very deep wounds both to the psyche and the credit report.

Chapter 7 is total bankruptcy, and involves liquidating all assets that are not exempt. Exempt property may include cars, work-related tools and basic household furnishings. It stays on your credit report for 10 years. Chapter 13 is more like a payment plan, and allows you, if you have a regular income and limited debt, to keep property, such as a mortgaged house or car, that you otherwise might lose. However, it still stays on your credit report for seven years. Bankruptcy, regardless of the type, is for life. Loan applications and many job applications ask if you have ever filed for bankruptcy. Ever! If you lie to get a loan because your bankruptcy is very old, technically you have committed criminal fraud.

Fortunately, most bankruptcy cases can be avoided with proper help, such as certified professional counselors, and in the end will help to get your feet back on solid, credit worthy ground. The process will be painful, but bankruptcy, foreclosure, and lawsuits are much more painful.

Bad Credit And Bankruptcy Together Are Explosive But

2007-03-22T02:30:00.001-07:00

Today there is a great awareness of people’s rights to put the broken bits together and start all over again… but doing things better. As for credit, there are some interesting aspects to take into consideration.

You Have Gone Through Bankruptcy Stress

Some debts discharged, others paid through the sale of assets and you have managed to keep your small home for your family. You want to start over, but with a smudge on your credit report. What now?

The Info On Your Credit Report

Bankruptcy entries will be kept on your credit report for 10 years, by law. And it will stand out like a sore thumb. However, in spite of this smudge, good credit can be aquired after bankruptcy and you will gradually get on your feet again.

What Few People Consider

Any creditor knows that bankruptcy can be filed only once every seven years. So, if you have recently filed for one, they will have nothing to worry about for the next few years. The fear they have of this terrible “B” word is before it happens, since they might get caught in it… but not after it happens.

Other Factors Help Too

For example, if your bankruptcy was due to medical bills, divorce or some event beyond your control, the response of would-be creditors will be surprising. Not as if you hadn’t declared bankruptcy, but they act as extenuating factors.

In Spite Of Bankruptcy

You get a loan. Not a big one, but enough to get started. Now, let’s consider this: You can have bad credit with or without bankruptcy, since this is only one of the motives of your bad financial reputation. So, leaving bankruptcy aside, there are many other things that give you a bad credit report.

A Natural Consequence

Bankruptcy itself is a natural consequence of those debts. The word just means “Too many debts”, to put it very simply. So, the obvious procedure is repair and rebuild.

A Higher Instance

Considering bankruptcy a higher instance of debt, the repair of your credit can and must be carried out in the normal ways. Checking the accuracy of the entries, detecting the lack of correct good entries and the existence of outdated information are the regular things to do.

Rebuild

There is more than one way to rebuild. The natural way is to get a loan with a calculated risk, enough to regain your comfort, be it business or personal ease. This means, using the loan for two reasons: Expansion or growth and rebuilding your credit scoring.

The Other Way

One could call it “artificial”, but it is just as effective and far from cheating the system. It comprises the division of a greater sum into smaller ones, through smaller, shorter loans in succession, which are faster and easier to repay. Thus, you will have more than one loan at a time in different stages of repayment, all helping you to get your good name back.

Oh, and make sure you get those good data filed in your report!

Ways To Consolidate Debt

2007-03-22T02:29:00.000-07:00

People are up to their eyeballs in debt. With interest rates rising, many people are experiencing severe difficulties keeping up with their credit card and home loan obligations. The problem has been fueled, in large part, by the extremely low adjustable rate mortgages which many people took advantage of during the past few years to purchase homes that they could really only afford at those rate levels. Unfortunately, those rates have now increased, which means that the monthly payment obligations have increased substantially.

The result of these events has been devestating for many, and you should not feel isolated or alone if this is your situation. The problem is rampant, and many people are in the same boat looking for ways to weather the storm. Specifically, people are living in houses that they can't really afford. On top of that, the housing market has cooled which means that they can't sell the houses at prices that would allow them to pay off the adjustable rate mortgages. Accordingly, desparate to keep up with their adjustable mortgages as much as possible, people are forced to use other forms of credit to pay for their daily needs, namely credit cards with astronomical interest rates. At the end of the day, most or all available cash goes to the adjustable rate mortgage, which leaves amounts still owed on the mortgage plus additional amounts owed to the credit card companies at much higher rates.

While there are no great options, the best may be for people to attempt to consolidate their debts into one, with the lowest interest rate possible. This maybe a home equity loan, which will typically carry a much lower interest rate than those charged by the credit card companies. Other advantages of home equity loans are that they reduce the number of lenders to whom payments are owed, and the interest paid on the loans will be deductible for tax purposes.

If the home equity loan is not available because there is no equity left in the home, people should look for other single sources of loans with the lowest available interest rates. This will consolidate all debt with one lender at one rate (the lowest available), simplifying the situation for the borrower.

Finally, of course, in the process of consolidating debts with a home equity loan or other form of debt, all efforts should be made to negotiate with your existing lenders to eliminate the debts owed by paying some discounted amount. If, take for example, you owe $100,000, see if you the lender will accept something less, like $50,000, to resolve the debt completely. While no lender wants to do that, they are often willing to negotiate such arrangements simply for the sake of being done with the loan and not incurring any greater losses.

Filing Bankruptcy in Edmonton and the Impact on Credit

2007-03-22T02:28:00.000-07:00

There are many misconceptions about how a bankruptcy impacts one’s credit. The largest of which is the belief that by filing for bankruptcy in Canada you eliminate any future ability to borrow money. This is not the case. Realistically there is only one restriction on borrowing money that exists, and that is while you are in bankruptcy (i.e. prior to receiving a discharge) you are not eligible to borrow $500.00 or more without informing the lending institution that you have not been yet been discharged from bankruptcy.

Now this doesn’t mean that every lender is required to loan you money, nor that loans will be easy to get after filing a bankruptcy but with a little effort loans are easier to obtain than most people initially assume. When looking for a loan it is important to remember that when institutions are looking to lend money, a number of factors are considered, including your credit history, your income, how stable your income is, what types of assets you own, the debt load you carry and how much money is left over in a normal month after you have paid all you living costs. The important thing to note is that when you look at this list the only item that is negatively affected by a bankruptcy is your credit history. Funny enough, some of the items (i.e. your debt load and cash flow) now appear more positive. So what most people fail to realize, to the lending institution you are in a much less risky position as a result of filing for personal bankruptcy than you would have been if hadn’t filed.

Despite being in a less risky financial position, obtaining credit is going to take a little work as you will not only have to help the bank to recognize that you are in a less risky position, but more importantly you will need to help them to realize that you have learned from the bankruptcy and are not likely to follow the same path in the future. While addressing these issues is largely going to depend on your personal situation, we always suggest you:

1. Develop a regular, disciplined habit of saving prior to applying for the loan;
2. When applying for the loan ask to speak with a person and not rely on the generic application forms;
3. Be open an honest with the bank representative about the bankruptcy, the events that led up to the bankruptcy and what has changed so these events won’t cause the same issues again.

For further information it is a good idea to contact a licensed trustee or email me directly. Either way we will be able to determine the best way to deal with your existing debt and develop strategies to help get life back on track as quickly as possible.

Personal Bankruptcy Rate Falls in Toronto, But Debt Levels Continue to Increase

2007-02-14T21:46:00.002-08:00

For the first time in many years the personal bankruptcy rate fell in Toronto in 2006, by 0.5%. In fact, the personal bankruptcy rate was actually down in all of Canada in 2006, by an amazing 4.3%! The declining rate of personal bankruptcy in Toronto was caused in part by a very strong employment picture. The unemployment rate declined for the third straight year in Toronto to 6.6% (it was 7.7% as recently as 2003).

As a personal bankruptcy trustee who meets with hundreds of people in financial trouble every year, I know from experience that these positive statistics only tell part of the story. The other part of the story is that residents of Toronto, and throughout Canada, are carrying record levels of debt. Household debt continues to rise, up 9.8% in the first 10 months of 2006, and in September 2006 the ratio of debt to personal disposable income reached a record 122%. This means that for every $4 the average Canadian earns in a year, they now have $5 in debt.

Some experts believe that high levels of debt are not a problem. They say that because interest rates and the unemployment rate are low, everyone can afford to service this debt. That's partially true, but my research indicates that a small segment of the population is very vulnerable to even the slightest financial shock.

As a personal bankruptcy trustee with offices in Toronto, I meet with people every day for whom rising debt levels mean they are one or two missed paycheques away from financial disaster. A recent Bank of Canada survey found that the proportion of highly vulnerable debtors (those whose debt payments exceed 40% of gross household income) has risen by 23% in the first six months of 2006 (from 2.6% to 3.2% of the population). If any of those people lose their job, get sick, or get divorced, they may have no choice but to file bankruptcy to deal with their debts.

What's the solution? I believe that we should all examine the level of debt we are carrying, and take steps to reduce it before it becomes unmanageable. For many personal bankruptcy in Toronto may be the only option, but with careful planning bankruptcy can be avoided.

Credit Repair After Bankruptcy

2007-02-14T21:46:00.001-08:00

A lot of people think that bankruptcy is an end to their credit life, but the fact of the matter is credit repair after bankruptcy is possible. Time and patience will be absolute virtues along the way, however.

Anyone who thinks credit repair after bankruptcy will be easy is fooling themselves. Once a bankruptcy is cleared, everything that goes into a credit report from that moment forward will be scrutinized even greater than it might have been in the past. Do not expect credit repair after bankruptcy to be a fast process. With this in mind, it’s important to follow a few basic rules to proceed successfully with credit repair after bankruptcy. These include:

Hold on to accounts you have

Some people find that credit repair after bankruptcy is a little easier if the accounts they didn’t close out in the process are kept open and are handled like they are breakable china. Take care to pay these accounts on time, all the time. Do ensure that some credit is used, however, but take it easy. Whether it’s your mortgage, a car loan or a credit card that was retained or a combination of them, these accounts will help you with credit repair after bankruptcy.

Slowly apply for new loans

Just because your obligations have been wiped clean doesn’t mean it’s time to go crazy. Take care in getting new loans or credit cards. If you go slow and pay well, credit repair after bankruptcy will be much easier. The most important thing to do is to pay on time all the time. If you do this, credit repair after bankruptcy will go much smoother. Do expect to have higher interest rates than you may have before. The truth is as you work on credit repair after bankruptcy, the process might be slow and you will be considered a big risk along the way. If you do your job at this point, you can appreciate good credit down the road.

Strike a balance

As you get back into the world of credit, it’s important to strike a balance with loans. This means credit repair after bankruptcy is generally more effective if a combination of credit cards and installment loans is included in the process. Do take care not to go overboard as you strike this balance. Overextending after a major incident can create more problems.

Protecting your financial well being is very important in mastering the road to credit repair after bankruptcy. Take your time, select credit extensions wisely, and do expect to pay a little more during the process of credit repair after bankruptcy. If you are smart in the process, the mark on your credit could turn into a cloud with a silver lining.

Wealth-How to Avoid a Financial Train Wreck

2007-02-14T21:45:00.002-08:00

Many people today are on a bullet train ride to financial disaster. With no savings plan, no reserve fund behind them and an out of control spending habit, these people are just gliding along until the track runs out.

Unfortunately, they don't seem to realize that the tracks lead to a cliff edge and the train track bridge has not yet been built. That is not a pretty picture to imagine.

Spending all of what you earn or more than what you earn cannot go on unabated forever. It doesn't work like that. Yet that is exactly what so many people are doing.

Buy now and pay whenever seems to be the mentality, particularly among young people. Cell phones, motor vehicles, large TV's, electronic gadgets and clothes seem to be the main things that they spend their money on. Most of this debt is racked up on expensive credit cards.

Failing to set aside money for the future is not only irresponsible, it is downright foolish. Eventually, as the saying goes, the piper has to be paid.

Banks, finance companies and loan sharks will think nothing of bankrupting anyone who gets into a position where they are unable to repay credit cards and loans. They are absolutely mercenary. They will stop at NOTHING to claw and gouge their money back.

Once a person is declared bankrupt all sorts of restrictions are imposed. Those restrictions last for years and years before they are lifted - IF they are lifted. In fact, the stigma attached to bankruptcy lasts for life.

So many companies, including banks, finance providers and insurance companies ask the question:

"Have you EVER been declared bankrupt?"

And they ask it in big bold letters just like I did above. They make it so that you cannot possibly fail to see it. There is a reason for that.

If you answer yes then there is every chance that higher interest rates will apply to you because you are assessed as a higher risk. That, of course, is assuming that you will be able to obtain what you are seeking. You may just be denied outright.

If you answer dishonestly then you will be committing fraud which is illegal. You will be penalized by the Court system and for this you will probably be fined.

You must AVOID bankruptcy. It may seem like a convenient way of dismissing all your debts and starting afresh. It is NOT!

What You Must Know Before Filing Bankruptcy

2007-02-14T21:45:00.001-08:00

Bankruptcy is not something that you do on the spur of the moment, but rather it should be a well thought out plan that you only implement when you have exhausted all other possibilities. While bankruptcy may provide a way out of your current financial situation, you need to consider and be aware that the ramifications of filing bankruptcy are going to haunt you for the next 7 to 10 years. Many people who file bankruptcy are doing so to make things better “now” but they are not looking years down the road, and when they do and wish they had considered other options, it is then too late.

If you are on the very edge of filing bankruptcy and need a way out, there are multiple other options that may be available to you. If you feel like you’re hopelessly buried in debt and you have very few assets, filing for bankruptcy may not be the answer to ending your financial problems. Though it sounds like an easy and attractive solution for one's financial problems, bankruptcy should be the last option any individual should resort to.

Throughout the process of filing for bankruptcy, it is a good idea to have a lawyer represent you through all formal bankruptcy proceedings. Unless you yourself are very familiar with bankruptcy law, especially the variations of the law within your state, it is more than just a good idea to have a bankruptcy lawyer represent you; it is almost a necessity so that you don’t accidentally get yourself into worse trouble than you are right now. From start to finish, the process of filing for bankruptcy is much different than it has been in decades past, and a good bankruptcy attorney knows those pitfalls and can navigate around them.

Before taking the big step and filing for bankruptcy, you will need to do some reading, especially so that you can explain to your bankruptcy attorney the reason for considering bankruptcy. You may need to consider filing bankruptcy if your expenses are increasing because of divorce, job loss, or medical bills, while your income is decreasing because of the same reason. There are various good reasons for filing bankruptcy, but there are also many BAD reasons for filing bankruptcy, based on the ease with which one could do that in years past, but most of those loopholes have been closed, and it is not nearly as easy today to file a non-painful bankruptcy case.

As you can see, a PLAN is required since bankruptcy is not something you do without thought. One of the aspects of it is to determine how you are going to get credit after your bankruptcy, since one will have a very difficult time in today's world without credit of some kind. But even then, you have options, and you should visit Improving Your Credit Score to include raising your credit score a part of your overall plan.

If you have decided there is no alternative to filing bankruptcy, you may be asking yourself, "how do I find a good bankruptcy lawyer? If you have exhausted all other resources and still feel bankruptcy is your only viable option you can learn more about filing bankruptcy or buy do it yourself bankruptcy forms. If you’re unemployed, on public assistance, have little or no money in a bank account, don't own an automobile, or rent or live with others, filing for bankruptcy may do little to improve your financial situation. The bankruptcy judge is going to want to see a plan of how you plan to change your current situation so that you are not back in the same position in another few years, so be sure that you discuss a financial plan with your bankruptcy lawyer.

Car Loans After Bankruptcy

2007-02-14T21:44:00.000-08:00

A Well-Planned Budget

Planning in advance is capital. Make a detailed budget that contains your income, your expenses and what monthly installments you can afford to pay. This will give you a clear idea of what the best payment program would be for you, when you start asking for quotes from lenders.

Contingencies

There is a great difference between what you would like and real fact. Be prepared to face reality and opt for a smaller loan or a longer repay period if you notice that you’ll be a little too tight. Remember that you have just gone through a period of mistakes or maybe unforeseen happenings and you don’t want to repeat them.

Credit Report

In this question of being prepared, you don’t want to forget to check your credit report. Every citizen is entitled to one free credit report per year. Use it to check out unforeseen errors. Should you spot any, contact the Bureau immediately and have it corrected. They’ll tell you what you need to do.

Double Benefit

After bankruptcy, your credit needs to be repaired fast. So, this car loan you are looking for can be secured with the car itself as collateral. It will be “pinned” until you finish paying for it, but at least you get the loan.

Besides, credit improvement states how you pay and how much the loan is for, but they don’t mention collaterals, so it would be just the same as paying back an unsecured loan.

Car Loan Brokers

Remember to see car loan brokers, because they will be able to get you a better deal when establishing the make, model and price of your car. Apart from this important fact, they are also used to dealing with customers with poor, bad or no credit at all, as well as post-bankruptcy situations.

Applying On-Line

This is a good way to go about things, because you can use the on-line application form without leaving your home and won’t have to do any paperwork until the loan is effectively approved. This kind of agency has a lower fixed cost, so their rates are generally lower.

Sail the net and search for suitable lenders. Ask for quotes and don’t be afraid of filling an on-line form in order to get information. You haven’t signed any paper yet.

One Last Touch

After a certain time, your credit will improve. Again ask for a credit report, even at a certain cost, see how your condition has gotten better and go straight for a refinance. You will be granted the possibility to do this, with the obvious convenience for you, regarding a shorter term with less interest.

North Korea Blackmails America-As They Laugh All The Way To The Bank

2007-02-14T21:37:00.000-08:00

Call it what you want, but at the end of the tunnel, it is pure blackmail, and no true American can be proud of such a fate. Yes, I say fate, because what comes out of blackmail is more blackmail. The US government condemns its citizens for such criminal activity, and disregards it internationally, and who picks up the tab? Every American Tax payer is going to be blackmailed, legally, and internationally. So you say: what else can we do? There are solutions to the problem. Perhaps Japan and Twain need to let China know, if North Korea has nukes, they will have them also. North Korea will simply be 100-yards away from making the necessary warheads when needed, for they’ve already proven they’ve got the rudiments of the bomb—they’ve shot one over the Japanese Sea. They can stop and start at will.

I am ashamed of our Government today for allowing this blackmail to go on. If South Korea and Japan want to appease North Korea, so be it, with their tax money, but for me, I don’t like it. Our freedom is being taken away by the terrorist country, legally, North Korea. They are robbing us and laughing all the way to the bank, and making us pave their roads with lilacs, for nothing. Iran will do the same, and so will every country in the world—if blackmail works, we will have every beggar in the world at our doorsteps. Just work on getting the bomb, and you got a blank check from the US Treasury, with the blessings of the American President, that is suppose to be protecting our economy, not giving it away.

To Declare Or Not To Declare: The Many Misconceptions Associated With Bankruptcy

2007-02-14T21:31:00.003-08:00

To declare or not to declare - that’s the big question and is there another option? Talk to ten different people about bankruptcy and they will all give their own, personalized version of how they understand it works - without actually having been in the unfortunate situation themselves - all ten accounts will be different as bankruptcy has seemingly acquired a lot of weird and dark misconceptions - not all of them are absolutely true, but whichever way you look at it - bankruptcy can be a stressful, negative business to endure, but doesn’t bear the stigma that it did many years ago.

Bankruptcy, although a way to momentarily alleviate the immediate worry, should for an individual - be a seriously considered option and the last route to take however, if the financial situation of the debtor is so far out, then declaring bankruptcy can seem like the only option left. In some situations, it's not always up to the debtor, although in most cases it is the debtor who initiates the bankruptcy declaration to the authorities, in some cases creditors can file bankruptcy against a debtor in an overall effort at recuperating a percentage of what they are owed.

Corporations - of all sizes, file for bankruptcy for one reason or another every day, but it's not quite the same for an individual. For some debtors, the stigma and psychological effects they associate with declaring personal bankruptcy can be very overwhelming. In some unfortunate cases, individuals who haven’t been able to deal with the situation have taken drastic measures. While it is an uncomfortable, distressing situation to be in, there are many myths and misconceptions surrounding the bankruptcy process that is simply not true.

Naturally, depending on your global location the rules and regulation surrounding bankruptcy declarations and how they are processed will vary. If worrying whether 'everyone' will know about your particular predicament, that's not necessarily true although if located in one of the Scandinavian countries, the case will be published in appropriate publications in order to give possible creditors who have not been made aware of the bankruptcy case, a chance to stake their claim. It's unlikely however, that anyone other than creditors will have a subscription to a publication of this kind.

Rules and regulation concerning bankruptcy have evolved a great deal over the past few years and efforts are being made not only to discourage bankruptcy fraud, which up through the eighties was very 'in' especially with corporate bankruptcy fraud, where tax and VAT authorities were defrauded of funds owed, but also to help those individuals that really in unfortunate need of it. All kinds of people from all walks of life declare personal bankruptcy, doing this is usually due to a life-changing experience such as serious illness, unemployment, and can also be because of something quite different such as an oversight on home insurance that day there was a horrendous storm and the roof blew away and the insurance didn't cover it, due to small print regarding weather conditions, which the owners weren't aware of! Each person has their own set of circumstances and reasons why they need to consider filing for bankruptcy.

In most cases - the perception that all debt will be forgiven once a bankruptcy case has been approved - is not true, if it were then its a viable thought that those less ethical individuals would go on a never ending spending spree, not pay for the goods they'd bought and then file for bankruptcy - it just doesn't work like that and would be categorized as fraud. There are certain types of debts that cannot be erased i.e. child support, alimony, government-issued or government-guaranteed student loans, and/or debts incurred as the result of fraud. It's also very unlikely that already assessed legal settlements would be discharged i.e. settlements already legally ordered for payment to a third party who sued the individual. It is possible to file for bankruptcy regarding taxes in certain jurisdictions; this can be long and drawn out and of course there are rules and regulation that need to be looked into.

Another misconception that frequently comes up is that people think that they will lose everything they own once the bankruptcy process starts and would have to start from scratch. Depending on the severity and details of the case, which of course will vary from person-to-person and location-to-location, even an individual who is a home or car owner, would not have their home or car confiscated (subject to varying laws). Most people going through bankruptcy will be able to keep the possessions they own. The magic words here are - as long as they make their payments legally ordered by the bankruptcy court they will get to keep their belongings i.e. home and car. It's also not true to say that anyone that's been through bankruptcy will never again be able to get any kind of credit, although getting more credit after just having been through bankruptcy should be considered seriously.

Before filing for a bankruptcy case, talk to an expert first. Again depending on your location, there are volunteer entities that a debtor can call and speak to in confidence about their situation. This can be helpful in order to ask pertinent questions on finding out how to proceed, finding the right source to help with the situation. These entities would very likely be able to give answers to questions and point the individual in the right direction.

To Declare Or Not To Declare: The Many Misconceptions Associated With Bankruptcy

2007-02-14T21:31:00.001-08:00

Bankruptcy - Time To Start A New Life

2007-02-14T21:30:00.000-08:00

Lets Talk About Options

Ok you just filed for bankruptcy or your thinking about doing it. For those that have already filed for bankruptcy you probably feel ashamed ,embarrassed and think your life is over, well its not going to be easy but your life is far from over and its not degrading and you don't have to feel embarrassed because if you think about it your new life has just begun. Today there are plenty of ways to get bankruptcy help and there is still hope to get that good credit rating back, its not going to be easy but with a little discipline and time you can show credit providers that you can bounce back on your feet and your more wiser about borrowing and making payments on time.

For those of you who are thinking about filing a bankruptcy petition sit back and think to yourself is this really going to be the easy road out of debt hell or can I reach out and ask for HELP . To many it is the only option but to some it is just an easy way out of paying bills because they want to enjoy luxuries in life. I'm going to use the phrase "I want to have my cake and eat it to" this is a great way of looking at things because there is an abondance of help out there for people that are struggling to pay their loans or credit cards . Another option is to consolidate your debt and make your payments easier and more affordable so you can have your cake and eat it.

Right here is a few tips for those that have gone bankrupt:

* First open a new bank account and in that account put $5 to $10 every week and do not touch it under any circumstances if you can set it up with your work or social security payments and deduct this amount into that account straight out of your pay. The more you put in this account the better but be realistic.

* Now you have no loans to repay you can focus on your utility bills like energy , phone and rent. Do not miss a payment with these bills, try and borrow from a family member if you have to.

Its all about starting over and building your credit rating back up to scratch. Find a financial advisor for some advice on how to get back on track so you can start borrowing again.

Many people have done it ,they played it smart and took peoples advise and now their sitting back in the house of their dreams or driving that flash car they always wanted and you would not even know they had been bankrupt. There is hope you just have to think smart and take advantage of your new financial start in life.

4 Tips to Help You Avoid Bankruptcy

2007-02-09T03:37:00.003-08:00

Bankruptcy can be a very serious financial last resort that can leave you with years of negative financial effects to deal with. While filing bankruptcy is an option that you can use if you have nothing else to resort to, it is best to start dealing with your financial problems before you end up needing to file bankruptcy. Since there are so many negative effects of bankruptcy, it is important that you start making changes today so that you can avoid the difficulties associated with filing bankruptcy. Taking the right financial measures early can help you prevent the financial disaster of bankruptcy.

Start Using a Budget

One of the first things you can do to help improve your financial standing and avoid bankruptcy is to get started using a budget that is reasonable for you and your family. Determine what you make each month, what you have in bills, and then see what you have left to spend. If you stick to your budget each month, you can decrease the amount of credit card debt you will be accruing and you can also budget in a savings account as well. If you make a budget and stick to it, you will be able to keep yourself from going on spending sprees that can lead down the path to bankruptcy.

Avoid Overextending Credit Card Debt

Another way that you can keep from having to file bankruptcy is to avoid overextending your credit card debt early. Many people make the mistake of using their credit cards when they have no way to pay back the debt they are accruing. Then they end up with credit card bills that they cannot pay, or can only afford the minimum payment, and end up in debt that is too much for them to handle. If you only use your credit cards when you have the money to pay it back quickly, you will avoid this mistake that can lead you rapidly to bankruptcy.

Talk With Your Creditors

If you are in financial trouble and you think that bankruptcy may be on the horizon, one important thing that you can do is to take the time to talk to your creditors to see what other options you may have. Often, when you take the initiative to talk to creditors, they will work with you so you will not have to resort to filing bankruptcy. Many times, they will reduce the interest rate, wave fees, and even reduce the amount of debt you owe them in order to help you pay off what you owe. It may be intimidating to speak with your creditors, but doing so may save you the devastation of bankruptcy in the future.

Consolidate Debt

Many times, when it seems you have so much debt that it threatens to reduce you to bankruptcy you can find a consolidation loan that can help you dig out of the debt you are in. Usually these loans have low interest rates and a low monthly payment that can help get you back on your feet financially. This is an excellent alternative to bankruptcy that can help you with the financial problems you have.

Choosing the Best Bankruptcy Attorney

2007-02-09T03:37:00.001-08:00

If you have come to a point in your financial life that you need to file for bankruptcy you will need to find an attorney that can help you through this process. While you may not understand all the legal terms and information that you need to know when filing bankruptcy, a knowledgeable attorney can explain things to you and give you the legal help you need. It is important that you find the best bankruptcy attorney possible and there are a variety of considerations to remember when you are choosing an attorney to work with you during bankruptcy.

Pick an Experienced Attorney

When you are choosing an attorney to help you through the bankruptcy process, you want to choose someone who has dealt with bankruptcy proceedings before. You should choose an attorney that has considerable experience in dealing with bankruptcy cases. If an attorney has no bankruptcy experience at all, you will not want them to be representing your case when so much is at stake.

Check Out their Reputation

Before you make the final decision on a bankruptcy attorney, you may want to check out their reputation. Check with family and friends to see if they have dealt with this attorney or you can check with people who have hired this attorney in the past. If the reputation of the attorney sounds questionable, you may want to keep looking.

What are the Fees?

When trying to pick the best bankruptcy attorney, you will also want to consider the fees that are charged by this attorney. If you are not sure if the fees are reasonable, check around with other attorneys so you can compare fee amounts. If the fees are exorbitantly high, you should continue searching until you find an attorney that offers excellent service for fees that are reasonable and affordable.

Free Consultation Attorneys that offer free consultations show that they really care about helping the people that they are working with. The free consultation will allow you to share your case with the attorney and will let them get a feel for your case and allow you to get a feel for the attorney. If you feel uncomfortable with the attorney or are pressured by him or her, you should keep searching for a better attorney.

Is Your Attorney Open to Questions

More than likely, there will be many things that you do not understand as you are going through the bankruptcy proceedings and you will want an attorney who will answer your questions and explain things so you can understand. If the attorney is not kind and ready to answer the questions you have, you may want to look for one that will take the time to help you find the answers.

Finding a great attorney to help you file bankruptcy is important. You want to be sure that this scary and important time in your financial life is handled professionally and in the correct legal way. Finding the best attorney can help you go through this difficult time as smoothly as possible.

Common Mistakes that Lead to Bankruptcy

2007-02-09T03:36:00.003-08:00

All across the United States, there are many people who have to turn to bankruptcy as the last resort to their financial problems. Bankruptcy is not something that happens overnight, but there are a variety mistakes that are made that lead to finally ending up in bankruptcy. If you want to avoid bankruptcy in your financial future, it is important that you identify common mistakes that are made so you can avoid them yourself, or so you can change what you are doing to avoid dealing with bankruptcy in your life.

Buying Impulsively

One of the most common mistakes that is made that leads to bankruptcy is buying impulsively. If you impulsively spend money on things that you do not need, it is easy to accrue a great amount of debt in a short time. If you have problems in this area, start taking time to consider what you want to purchase for a few days before you purchase it. If you do decide to shop, only take the cash that you can spend instead of taking your credit card, which can lead you to purchasing more than you planned.

Paying Only the Minimum Payment

Another common mistake that people make that can lead to bankruptcy is paying only the minimum payment on their credit cards. If you are only paying the minimum amount that is due each month, you are probably only paying the interest and never actually paying on what you have borrowed. If you continue to do this, you will end up with credit card debt that is out of control, and bankruptcy may be in your future.

Not Keeping Track of What You Spend

Not keeping careful track of the money you spend each month is another common mistake that can lead people to bankruptcy. It is important that you keep track of what you spend from your checking account and what you spend on your credit cards each month, as well. If you do not keep track of what you are spending, you are probably spending far more than you think you are and this can lead to debt that is too much for you to handle.

Failing to Save

One mistake that leads many people down the road to financial devastation and bankruptcy is failing to take the initiative to save for the future. Just saving five dollars a week or having a 401k plan can really help people who go through financial problems in the future. Even if your finances are in bad shape, if you can save some money each week, many times, you can work your way out of financial disaster without having to file for bankruptcy.

If you can avoid the common mistakes that many other people have made, you can avoid having to deal with bankruptcy. It is better that you take measures to prevent these mistakes than it is to have to change your financial habits. Start taking control of your finances before they take control of you and avoid the common mistakes that lead to bankruptcy.

Tips for Recovering From Bankruptcy

2007-02-09T03:36:00.001-08:00

While bankruptcy can be a scary and devastating time financially, there is recovery and hope for building credit once again after the bankruptcy is over. If you have gone through bankruptcy it is of utmost importance that you start working to reestablish your credit and make sure you keep your credit report looking clean. Bankruptcy is in your past, and once it is over it is time to start moving in a positive financial direction. The following are a few ways that you can work to recover after filing for bankruptcy.

Bank Accounts

If you open a bank account, such as a savings or checking account, it can help show prospective lenders and even prospective employers that you are working to properly handle you money and that you are serious about keeping your finances in control.

Gas and Store Credit Cards

Many times it is fairly easy to get gas credit cards and store credit cards and using them to purchase clothing, groceries, or gas and then paying them off immediately is a great way to start rebuilding your credit. Only use this option if you are seriously going to pay them off regularly or you could end up in financial trouble again.

Pay Bills on Time

If you are paying rent, or if you have electric, water, and phone bills that you pay, be sure that you pay these bills on time all the time. Paying your bills on time for a full year can significantly help in rebuilding your credit after bankruptcy. Lenders will see that you are handling your financial obligations responsibly and that you are paying all your bills on time each month.

Co-signed Loans

If you have a family member or even a friend that has good credit and is willing to co-sign on a loan for you, it can help you improve your credit after you have gone through bankruptcy. Once you have the loan, make sure that you pay your payments on time and also work to pay off the loan as early as possible, which will help to improve your credit.

Lenders that Deal with Bankruptcy

If you need to purchase a home, a vehicle, or even apply for a credit card, be sure that you look for lenders that will deal with people who have experienced bankruptcy in their financial past. If you are able to get a loan or a line of credit and then pay it monthly, it will help to establish your credit again.

Budget

Once you go through bankruptcy you will want to make sure that you develop a budget and make sure that you follow it all the time. It is important that you spend no more money than you make to avoid the trap of getting into debt once more. If you stick to the budget you have made up, you will be able to start establishing a positive credit history after bankruptcy.

These are just a few tips that can help those who have dealt with bankruptcy in the past and are now ready to move on to a better financial future. You can go on after bankruptcy and reestablish your credit by following these tips that will help you accomplish your financial goals.

Why You Should Avoid Bankruptcy

2007-02-09T03:35:00.000-08:00

Many people in America end up dealing with some form of debt. But, at times, debt can become overwhelming to a point that it forces people into bankruptcy. While some people may feel that there are benefits to filing for bankruptcy, any benefits there may be are heavily outweighed by the disadvantages that bankruptcy can bring. If you are in financial trouble, you should consider carefully the disadvantages of filing bankruptcy and do your best to avoid it.

7 Years of Effects

One reason that it is important to avoid bankruptcy is that bankruptcy will stay on your credit report for seven years. Anytime people view your credit report they will see that you have filed bankruptcy. Whether you are applying for a job, trying to get financing, or even a credit card, bankruptcy will keep on effecting your life for years to come. You may think it is a quick fix to your problems, but remember that it will be effecting your life for seven years.

Costs of Bankruptcy

Another reason that you will want to avoid bankruptcy if at all possible is the court costs and fees that are associated with bankruptcy. Usually, the court costs and the fees for the lawyers are taken out of the sale of assets and property of the person filing bankruptcy. It is important to note that filing bankruptcy will cost you more than you care to pay. In fact, it will probably cost you almost everything you own.

Loan and Mortgage Difficulty

It can be quite difficult to get approved for loans and mortgages after you have filed for bankruptcy. While there are a few places that will provide you with loans, most of them have extremely high interest rates associated with them. Even a few years after your bankruptcy, many lenders may be hesitant to offer you financing for anything because of your past financial record. If you need a home or you need a personal loan for any reason, filing for bankruptcy can keep you from getting the loans you may need.

Press

Not only will you lose your assets, pay for costs, have seven years of effects, and difficulty borrowing money, but you will also have to face the stigma of having your name placed in local papers letting everyone know that you have filed for bankruptcy. This can be quite demoralizing and embarrassing and can cause you future problems with finding a job or finding a place to live. No one wants to have their financial problems broadcast to neighbors and business acquaintances. So finding other ways to resolve financial problems is the best idea.

These are just a few of the disadvantages of filing for bankruptcy, and there are many others including the loss of inheritances, closing of bank accounts, and business losses. Before it is too late, you need to make sure that you take control of your finances so you can avoid filing for bankruptcy and the many negative consequences that come along with it. While bankruptcy is there as a last resort, it is important that you not file for bankruptcy unless absolutely necessary to avoid these disadvantages.

The True Path Out Of Bankruptcy!

2007-02-09T03:33:00.002-08:00

There is an optimum path to credit recovery after bankruptcy that consists on applying for some financial products one after another and using them moderately to increase your credit score by taking advantage of the fact that creditors report timely payments to credit bureaus and as these reports keep getting recorded into your credit history, they’ll contribute to boosting your chances to get approved for more complex financial products.

Credit Cards

Credit Cards are the best way to start to improve your credit card. But don’t expect to get approved for an unsecured credit card with a high amount limit right away. For starters, you need to apply for a secured credit card. You’ll need to make a deposit and then use the card just like a regular card. With the timely payments of your credit card balance, you’ll increase your credit score and improve your credit history.

Then you can request an unsecured credit card. You won’t get high credit limits, but you’ll still be able to use it to increase your credit score. Just remember not to abuse the financing feature. Try to pay the balance in whole every month so your credit score rises more quickly and your credit report doesn’t show outstanding debt.

Bankruptcy Loans

Getting a loan after bankruptcy can be complicated. Even if you get approved for a loan, you won’t get high amounts or very advantageous terms. However, it all depends on the type of loan you request. If you can provide collateral or a co-signer, you may be able to get loans for higher loan amounts and more beneficial loan conditions.

But, in the worst scenario, you’ll still be able to get a loan if you’ve followed the steps explained above about credit card use for improving credit. You should then request small unsecured loans that are not hard to get approved for. We are talking about only a couple of hundreds dollars that will contribute too to credit recovery.

Once approved for the loan you need to meet all your monthly payments on time and as the installments’ repayment gets recorded into your credit report, you’ll see how your credit gets better. Once the loan is repaid in full, you can request another one for a slightly higher amount and repeat the process several times to boost your chances to get approved for loans on better terms.

Nevertheless, if you can’t get approved for unsecured loans due to your credit, there are some options. You can continue using the credit improvement program based on credit cards explained above or provide collateral or a co-signer to get approved for a loan. If you can’t still get approved, you can open a bank account with an overdraft agreement and use the agreement to withdraw money and repay it in order to keep improving your credit situation.

A Loan After Bankruptcy: Is this Possible?

2007-02-09T03:33:00.001-08:00

The Feeling Of Uncertainty

This feeling applies to many small or medium-sized businesses, home businesses or entrepreneurs with a faulty administration. They become conscious of these errors and want to know what’s next. Is there a way out? Can they continue with their businesses? The answer is naturally “yes” to both questions. Well, a second chance is a little more complicated than the first one, but by no means impossible. It just requires being more careful.

So, How Can You Make A New Start?

There are banks and companies who will gladly help you out if you give them the opportunity. Your business is to make a profit by selling the products you make. The bank’s business is to make you a profitable businessman through the loan they give you and giving you sound advice as to how to prevent future mistakes.

Credit Repair To The Rescue

Credit repair means helping you build up a good record again. They give you a small amount at first and as you repay your debt on time, they grant you higher loans, proportional to the growth of your business on a solid base. Of course, the lenders will want to know how you plan to work and correct your previous misdoings, so as not to feel they are throwing money down the drain.

In the case of a bigger business, they may want to have a closer contact with the enterprise, monitoring your course of action every so often. However it may be, means that you are supervised and assessed by an institution which is successful in the financial world and it is your chance to learn from them.

Second Chance, A Better Opportunity

First time business owners tend to be somewhat naïve, or might not be aware of the common mistakes until it is too late. When you are given a second chance, your impulse is much stronger, you have gained in experience, probably the hard way, but experience it is. You learn about marketing, about cutting costs and optimizing production, which you didn’t think was necessary the first time around. Conclusion, you reinforce the weak points in your business, and enhance the strong ones.

What Loan Should You Apply For?

There is an increasing offer of loans on line, each one with better conditions than the one next door. Click on your choice and state your case. Tell them about your bankruptcy and the possible mistakes you could have made. This will give them the idea that you are interested in finding out what went wrong and are willing to correct it in the future. It will automatically create an atmosphere of reliability and from that point onwards, you will be conveniently guided towards the right path, to finally become financially sound, once again.

Is Bankruptcy in Your Future?

2007-02-09T03:32:00.002-08:00

The number of bankruptcies in the U.S. is rising at a dangerous speed. Last year over 2 million bankruptcies were filed! This is a serious problem! How can you know if you're on the road toward bankruptcy? Here are 7 warning signs:

1. Not using a budget

2. No control over spending

3. No emergency fund

4. Having a house you can't afford

5. Owning a car you can't afford

6. Using credit cards

7. Having student loans

Bankruptcy can creep up on you no matter how great things may be going for you right now. If you see the warning signs in your life, it's time to make some serious changes. It's time to take control of your money instead of it controlling you! But it starts with you making the decision! Check out the beginning steps to steer yourself clear of bankruptcy:

* Build up a beginner emergency fund of $1,000. Sock this money away as quickly as possible. Emergencies will happen so be prepared.

* Start living on a monthly budget. Make sure you cover the basics first - housing, utilities, food and transportation. Then use what is left over to aggressively pay down debt.

* Attack your debt! Evaluate what you can sell to cut your debt. Consider taking on a part-time job to accelerate your climb out of debt. Sell so much stuff that the kids think they're next!

* Add to the emergency fund. Once you are out of "crisis mode" (all debt but the house paid off) focus on getting 3-6 months of expenses in your emergency fund. When it's fully funded, you can start making your money work for you!

Bankruptcy Recovery - Financing an Auto Loan after Bankruptcy

2007-02-09T03:32:00.001-08:00

These days, searching for an auto loan after bankruptcy is not nearly as discouraging as it once was just a few years ago. There are now multiple lending agencies who specialize in bankruptcy clients. Securing an approved car loan is much simpler than finding financing for a personal loan. This is due to the fact that the financial lending company has your automobile to use as collateral should you not make your payments. In fact, getting a car loan after bankruptcy is a valuable tool to get you back on the correct financial path of life. Utilizing an auto loan to rebuild credit is excellent as long as you find an approved auto loan that is manageable for your financial situation and are able to make payments on time. This would be your first *best step* towards bankruptcy recovery and Ottawa Car Loan’s can start you with an approved car loan.

When using a car loan to rebuild credit the most important thing is to find a bankruptcy auto loan that is manageable for your specific situation. You must ensure that your payments are made on time. Your loan interest rate will be higher at first but after six months you will have an improved credit rating and should qualify to refinance at a lower rate.

When applying for your car loan after bankruptcy, it is wise to use an online auto finance service. You are simply asked to describe your financial situation on the initial application. The service will than submit your information to a network of dealers and lenders. In many cases you will receive multiple offers from which to select a suitable car loan. You will have an approved auto loan before even visiting a dealership.

Remember to choose a vehicle that is reasonably prices as opposed to a more expensive model you may be in love with. Your initial interest rates will be between 14% - 19% or higher until your credit rating improrves. After 12 months of making your payments you will have the option to refinance or to upgrade to another vehicle as your interest rates will be back down to the sub 10% rate. Please do not put yourself into a situation whre you are unable to mange these monthly payments.

Education is best as it is the smart consumer who comes out ahead. For example, educating yourself on ithe interest rate and terms of your bankruptcy auto loan and do not accept an offer that is not suitable to your specific financial situation. The last thing you want is to find yourself in a situation where you are unable to manage those montly payments.

California Bankruptcy, How to Recover After Bankruptcy

2007-02-09T03:31:00.000-08:00

By Martin Rogers

Here, at Personal Bankruptcy Avoidance, we have been trying to teach people what they should do before making a decision to file for bankruptcy. We have made emphasis numerous times of the harsh consequences that bankruptcy will bring to a person's financial life. We have also called bankruptcy a “last-resort method”; meaning, people should always think twice before making such tough decisions; because once you file for bankruptcy, all your financial life will be seriously affected.

The California bankruptcy system offers some legal and financial aids that are for the sole purpose to be used by those who file for bankruptcy. Today we want to offer a way out for those people that have already made that one last decision and have filed for bankruptcy by explaining a little bit about overdraft agreements, and how they can help someone improve their situation.

One of our clients, Caitlin Stewart, has recently filed for personal bankruptcy, and she just joined our program in order to recover her financial stability and regain her credit capacity. Martin Rogers, our California bankruptcy expert, will surely help her with any questions she has.

Caitlin Stewart What are overdraft agreements? And Am I allowed by the California bankruptcy law to use it?

Martin Rogers: According to the California bankruptcy laws, people who have filed for bankruptcy are allowed to make use of revolving credit accounts that have a direct relation with their bank account. These are called overdraft agreements. These accounts have a limited credit and within that amount you, as the owner of the account, can make withdrawals even if you do not have enough money in the account. An important point about these accounts is that after the owner has withdrawn money, he or she has to pay the generated capital and interest. People have to be very careful about fulfilling the mandatory payments and above all, always pay the interest charges. Maintaining a healthy financial relationship with this type of account will be vital to recover your credit history.

Caitlin Stewart Will using this type of account surely help me?

Martin Rogers: The California bankruptcy laws have created this type of mechanism to help people in certain and specific situations, such as bankruptcy. The most important thing to do after surviving bankruptcy is to recover your credit score by paying on time the capital and interest charges, which credit bureaus will into your account’s behavior; and they will eventually promote the growth of your credit score. The California bankruptcy system is intended to promote the development of these specific bankruptcy cases, where people can show that they can lead a debt free life whilst fulfilling all of their financial responsibilities.

Caitlin Stewart According to the California bankruptcy system how do I improve my credit capacity beyond that point?

Martin Rogers: The California bankruptcy system allows people who have a constant growth on their credit reports to equally grow on credit capacity. After the credit picks up over the normal limit by using overdraft agreements, the person can apply for credit cards in order to increase the actual credit score. Another interesting way of increasing your credit score is requesting a small unsecured loan to make acquisitions or to buy small things. Repaying these kinds of loans will add up more to your credit history, and you will ultimately gain once again the serenity of being out of debt and having a balanced financial life. In time, you will regain your normal financial life, and you will be able to use any bank or credit resource as you could in the past. The main difference is that this time, you will know how to manage it better and avoid debt successfully.

To file for bankruptcy in the California Bankruptcy system, you need the best legal advice possible. Choosing the wrong attorney could cost you your home, vehicles, or other possessions. The decision is too important to trust it to the yellow pages or slick TV commercials.

Choose California bankruptcy well established, well respected and highly skilled attorneys from law firms that deal exclusively with consumer bankruptcy.

By using our free confidential legal evaluation, you can be on your way to achieve the financial solutions you seek. We can help you protect your assets and get the fresh start you deserve.

Bankruptcy and Buying a Home

2007-01-21T23:41:00.001-08:00

Once upon a time filing bankruptcy meant your hopes of buying a home one day were practically eliminated. However, today filing bankruptcy does not necessarily mean you can never buy a home. Things have changed a lot in the past years and now a bankruptcy is not the end all be all of your financial existence. Bad credit is not good, bankruptcy and buying a home is not as bad as it used to be.

Bankruptcy certainly makes getting a mortgage loan approval more of a challenge; however it can still be done thanks to the many bad credit loan programs that are available today. The reason why those with bankruptcies are able to find financing even after their financial woes is because there is money to be made in the business. That is why sub prime lenders have started focusing on this subgroup of individuals more of late. Lots of people continue to file for bankruptcy yet still need to buy a home and finance it. Sub prime lenders have found a way to cash in on this market and give those with bankruptcies on their credit report a second chance.

Of course, buying a home after bankruptcy can not only benefit you by having a home of your own but it can also benefit your credit score significantly For example, when you finance a home after bankruptcy there are some major benefits in store for you if you play your cards right. You can increase your credit score by always paying your payments on time. Of course, financing a home with a bankruptcy on your credit means you will have a higher interest rate for a time. But as long as you meet the requirements and pay your monthly payment on time you will be able to refinance to a lower interest rate after the penalty period. The longer it has been since you had your bankruptcy the better off you will be as far as your credit is concerned and the interest rate on your mortgage loan.

Bankruptcy might make you feel like you will have to rent forever, but this is not the case. Once you receive a home mortgage loan you will begin making monthly payments to something you are buying rather than monthly payments to something you are renting. This will allow you to accrue equity, which will give you leverage if you need a second mortgage one day. Not to mention you will eventually own your home outright! The opportunity to own an asset like a house, even after a bankruptcy, is too great to let pass by.

Another benefit to buying a home after bankruptcy is so that you can eventually apply for an equity loan if you need one. You are spending money every month on a place to live so why not spend money that results in equity? When you have equity in your home you can take out a home equity loan at a low interest rate to help you pay off other debts or make an investment or improvements to your home.

How To Avoid Bankruptcy

2007-01-21T23:40:00.002-08:00

Many people think that filing bankruptcy is an easy way to solve all their debt and credit related problems. Many people do not realize that debt can so easily be fixed and they can enjoy good credit again. There are several ways to resolve the problem that do not involve a step as drastic as bankruptcy. Keep in mind that if you follow through and file for bankruptcy, this will be a hugely obvious detriment that will appear on your credit report and affect your credit score for the next seven years or longer. There are very few lenders who will approve a loan for someone who has declared bankruptcy within the past two years, and if they do, the interest rate will likely be as high as federal law will allow.

Avoiding bankruptcy and rebuilding your credit is possible with a very simple plan. Some credit card companies offer easy approvals. But at the same time, additional credit card debt creates a lot of unnecessary burdens, and isn’t that a big part of what got you where you are now? The credit card companies that offer easy approvals will usually charge a very high interest rate, because they realize they are “taking a chance” on you that you will repay this debt.

If you have a basic problem of having more financial obligations that you have revenue coming in, either in business or from a personal perspective, taking on more credit card debt is not going to solve the problem. It may delay getting the problem resolved for now, but it is really like the old saying of “robbing from Peter to pay Paul”, and could get you into even worse shape than you currently are.

Many plans can let you get your hands on loans that have low interest rates. In return, the creditors freeze interest on the debt, agree not to contact the debtor while the plan is in place and write off a portion on the debt. It is all too easy to run up huge bills when you are charged high rates of interest on your un-paid debt. The reason that many creditors are willing to do this is that they understand that if they allow you to be charged a lower rate of interest, your total debt picture may allow you to repay your account with them, whereas if you declare bankruptcy, chances are good that they will only get pennies on the dollar.

Sometimes a creditor will allow you to make “interest only” payments. While we all know that this is just money going out the window because it does not have any effect on reducing the principal amount owed, it may allow you some “breathing room” while you are getting things squared away.

You will want to keep an eye on your credit report. There are likely errors on your credit report, which may impact your ability to negotiate with a lender to lower their interest rates for you. You may want to check out steps for improving your credit report and raising your credit score at Credit Reporting Corrections.

Solve Your Problems with an Attorney Bankruptcy

2007-01-21T23:40:00.001-08:00

If you, as an individual or as an owner of a business, have debts or other financial troubles, an attorney bankruptcy can be the ideal solution. Whenever how difficult and complicated a financial case can seem, attorney bankruptcy is the one you need.

Attorney bankruptcy is specialized in solving financial situations, providing necessary information about the bankruptcy law and legal methods to solve financial cases. You can benefit from the knowledge and experience of an attorney bankruptcy either solving debts issues or developing court-approved reorganization plans that suppose the presence and involvement of debts and creditors. There are some ways in which attorney bankruptcy solve credit problems and one of them is discharging debts by liquidating assets that are personal or belonging to a commercial enterprise. The assets or non-exempt property are turned into cash and distributed among creditors so that the difficult situation is solved. A discharge notice is received by the debtor after these proceedings.

You might need to hire an attorney bankruptcy if you are a business or simple consumer and have some financial issues, be it the case of liens or repossession. Attorney bankruptcy will also be of great help and assistance in case of facing lawsuits, wage garnishment or foreclosure. There are several options in facing such financial problems, but only a professional attorney bankruptcy will point out the best option to escape this unpleasant situation.

In order to have relief from a difficult financial situation and to start a new commercial enterprise the attorney bankruptcy will provide necessary information concerning the application and function of bankruptcy laws. There are titles in the bankruptcy code that regulates the bankruptcy proceedings. According to these bankruptcy proceedings if an attorney bankruptcy of a debtor initiates the bankruptcy this is called voluntary bankruptcy. Otherwise, the bankruptcy is called involuntary – if initiated by creditors or their attorneys.

There are two main types of bankruptcy proceedings used by attorney bankruptcy: debt liquidation and debtor rehabilitation. Attorney bankruptcy creates a reorganization plan according to which the debtor will pay debts over a period of time due to future earning of different types. This reorganization plan is court-approved and applied in order to start the rehabilitation plan for the debtor. There are some chapters that state various aspects regarding the future earnings and payments of the debtor explained to him by the attorney bankruptcy.

There are chapters that permit to keep valuable assets by the debtor while presenting with the help of an attorney bankruptcy a plan of reorganization. It is vital that while keeping some assets the debtor will present viable sources of income in order to pay the creditors in three to five years. The plan should meet the requirements of the Bankruptcy Code and should be court-approved.

Finance Is Achievable Even After Bankruptcy!

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There are certain loans provided by lenders who deal specially with applicants that feature a bad credit score and history which can be easily qualified for regardless of past credit problems. Bankruptcy is undoubtedly the most serious blemish on a credit report. A bankruptcy stays in your credit history for ten years after you obtain a discharge. Your credit will take a long time to recover from such situation and you need to work hard in order to achieve a good credit score again.

What to Expect

Anyone applying with bad credit should expect a high interest rate, given that you are applying for a loan with a past bankruptcy on your credit history you will most certainly get a high interest rate loan if you get approved. The interest rate is directly associated with the risk of the loan transaction and someone with bankruptcy on his credit report obviously implies a great risk.

Also, you should expect harsh requirements in terms of income and credit. Though it is true that if you have a bankruptcy in your credit report, your credit score can’t be high, yet, the lender will check your credit history to see which other delinquencies appear on your credit report. In order to get a loan after bankruptcy, your credit history from the time when your bankruptcy was discharged on should be almost impeccable.

As regards to income, a steady provable income is required for any loan but when it comes to bankruptcy loans, the severity rises. You should have an income high enough to cover for the monthly payments and any other expense that may come about. If under other circumstances a lender would consider approving your loan if your income was near the limit of the income needed for approval, with a bankruptcy on your credit report, that’s out of the question.

What Are The Good News Then?

The good news are that you can actually get approved for a loan after bankruptcy provided that you meet the requirements and those requirements can be met without too much efforts. Your credit score and history can be boosted, your income can be good enough provided you reduce your expenses, and the effect of a high interest rate can be moderated by requesting longer repayment programs.

If you have enough equity on your home, requesting a home equity loan is the best way to go. The fact that these loans carry collateral reduces the risk for the lender significantly and thus increases your chances of getting approved for a loan after you’ve gone through a bankruptcy process.

The timely payment of your bills, credit cards and small loans you can always request provided that they are only for small amounts, will contribute to increasing your credit score so you can qualify for loans of greater amounts. This may take some time but once you raise your credit it will be a lot easier to get finance and thus continue recovering from bad credit.

Bankruptcy: Should You File or Not?

2007-01-21T23:39:00.001-08:00

In any sphere of life the first step to overcoming a problem is recognizing it. If financial worries keep you awake at night its time you recognized what the problem is. Addressing your debt problem is the least you can do to save yourself from a debt trap. But if you find yourself with no option except bankruptcy it is advisable to consult a financial advisor to discuss your options.

Do you need to speak with a Bankruptcy Attorney?

1) You have maxed out the credit limit on our credit cards

2) You are unaware of the amount you owe to your various creditors

3) Your monthly income is hardly ever enough for your expenses

4) You have recently been turned down for credit or loan

5) You have been skipping payments of some bills in order to pay other bills you feel are more important

6) You dread opening your mailbox or answering your phone fearing creditor harassment

7) You panic when you encounter unexpected expenses which could be personal or business

8) You're afraid you have to declare yourself bankrupt

Did you answer YES to more than 5 of the above questions? If you did its time to get in touch with a bankruptcy attorney who will help determine if bankruptcy is right for you. You might not be well versed with your options on debt solutions, bankruptcy alternatives to deal with your rising debts and you could end up end up making wrong choices based on your convenience for the moment without considering the long term effects of your choice.

Bankruptcy Myths

Most people develop their own opinion on bankruptcy based on what they read or hear from others. But Bankruptcy is not nearly as frightening as it is made out to be and would be a practical option for you if only you consulted advisors to empower yourself with bankruptcy information. Listed below are few myths attached to bankruptcy:

•You will lose everything you own

•You must be flat broke to file for bankruptcy

•You will never get credit again

•Taxes cannot be discharged in bankruptcy

•When you file for bankruptcy you cannot include certain creditors

•Everyone will know you have filed for bankruptcy

Bankruptcy

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What is Bankruptcy?

Bankruptcy can be defined as a state when an individual or a person is in a poor financial state and is not in a position to pay back his/its debts to his/their creditors. The state of bankruptcy can acquire a legal status only when such an impaired financial state is duly recognized by a designated court of law. The process of bankruptcy is initiated by the individual or the organization.

Ancient Origin of the Term Bankruptcy

The word ‘bankruptcy’ originated from the ancient Latin words bancus and ruptus. While bancus means a bench or a table, ruptus means broken. A bank also referred to a bench which was placed by the bankers in the market places or the fairs. These banks or benches contained the details about the bills of exchange and other tolls about the money. Whenever a banker failed to continue his business, he would break the bank to indicate to the public his inability to do the business. Since this practice was very much in vogue in Italy, the broken bench-banco rotto- or bankruptcy has its origin in Italy.In ancient Greece, when a father died bankrupt, his descendants and survivors had to pay back the creditors in terms of manual labor. This is to say that the borrower’s descendents had to do manual labor for him for a period of five years. In some cases, the enslavement lasted much longer, even life time

Legal Status of Bankruptcy

With the passage of time, bankruptcy acquired a legal status and as with every legal issue, it continues to be debated according to the changing social and financial contexts and circumstances. President George Bush signed a bankruptcy law on April 20, 2005,called the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA"). The BAPCPA made significant alterations in the existing bankruptcy regime in respect of the Bankruptcy Code and other rules.

Bankruptcy Courts

There is a bankruptcy court in every judicial district. Each state has one or more districts. There are around 90 bankruptcy districts in the country. Each district court is presided over by a judicial officer or a bankruptcy judge who has the powers to adjudicate all the bankruptcy cases. The judge decides whether or not a particular person or organization can qualify for a bankruptcy relief or discharge of debts. Most of the bankruptcy proceedings are of administrative type and are conducted away from the courthouse. According to the new law, the bankruptcy applicants have to use a set of official forms to initiate the legal procedures to resolve their bankruptcy problems.

Bankruptcy Laws

In certain bankruptcy cases, especially those covered under the chapters 7, 11 or 13, the court appoints a trustee to oversee the process. The debtor’s participation or involvement in the bankruptcy proceedings is generally quite limited. In cases under the chapter 7, the debtor does not appear in the proceedings unless some objections are raised in the case. Under chapter 13, the debtor may appear before the bankruptcy judge only to confirm the plan during the hearings. A debtor is expected to meet the creditors at specially arranged meetings which are held at the offices of the U.S trustees. These meetings are held under the article 341 of the Bankruptcy Code and are usually referred to as 341 meetings. The creditors question the debtors about his property and debts during these meetings.

A Hearing at a UK Bankruptcy Court

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All the normal human fears and emotions had come up with my client, who I will call Paul for the sake of this article.

‘I never thought I’d be going bankrupt’. ‘Can I still pay my creditors back after my bankruptcy if I come into money’? ‘What will the courts be like’? ‘Will there be lots of people in the courtroom’? ‘Is there a jury’? ‘What should I wear’? ‘You’ll be there with me won’t you’? ‘Will anybody be nasty to me during my bankruptcy hearing’? ‘Will I go to prison’?

We had looked carefully at all the solutions for getting out of debt and bankruptcy just kept coming up as the solution to Paul’s debt issues. I had allayed his fears on all his questions and 4 weeks later we were standing at a coffee shop about 200 yards from the local county court building running over a few points for Paul’s bankruptcy hearing.

Before the bankruptcy hearing

As we sat drinking coffee, we both went over the 36-page document we had filled in for the bankruptcy hearing. It was filled in triplicate as required by the English and Welsh courts.

‘It looks great, but also daunting looking at your financial life inside all these pages’, said Paul.

Looking back over the document it was still clear that bankruptcy was the correct option for resolving Paul’s debt issues.

Paul was still a little nervous, as is natural, so we went over the ‘running order’ for the next 50 minutes or so. This helped calm the bankruptcy nerves and with no further questions we walked what Paul said seemed like a long 200 yards to the courts.

At the bankruptcy courts

I’m always reminded of the airport security arriving at the court for a bankruptcy hearing. Sometimes you walk through the airport style metal detector and then out comes the wand should you be unlucky enough to hear the alarm beep.

Do you know, I have never made it through the metal detectors at any bankruptcy court without the metal detectors setting off! This came much to the amusement of Paul as I had already pre-warned him but it helped lighten the mood and the guards were equally jovial about the whole matter.

Dignity back intact and keys collected we went off to the bankruptcy clerks desk.

The bankruptcy clerk

We were greeted through the door with the words ‘no Mr. Smith, this all needs to be filled out correctly before you see a judge’.

There was some poor fellow that was on his second visit to the courts trying to do his own bankruptcy documents. They aren’t that simple unless you take lots of time and effort to get it all right.

Poor old Mr. Smith was near breakdown as tears were welling up in his eyes. He was asked to sit back down and fill in his documents whilst the bankruptcy clerk attended to Paul and myself.

‘You’re back again’, the bankruptcy clerk recognised me. How they do this with 10,000 insolvency cases a month in the UK I’ll never be sure but then the bankruptcy court is practically my second home these days.

It only took a few moments and 3 questions to satisfy the bankruptcy clerk that everything was in order. She commented ‘it’s nice to be able to read the documents, you should see some of them that come here’.

We paid £475 in bankruptcy court fees and she went off to get a receipt book.

Paul and myself took a seat next to Mr. Smith and I introduced myself and passed him a business card. After a brief chat I was flicking through the pages he had filled out. Bankruptcy was clearly the wrong option for this guy and I suggested that he wait for about half an hour so that we can chat about some other options. Paul vouched for my services and I gave Mr. Smith a fiver to get a coffee back at the coffee shop we had just come from. I also placed my order of latte for about 5 minutes before I got there.

To say he was stunned would be understatement. Some stranger just gives him £5 and offers a free debt counselling session! He later became a client but that’s for another story.

The bankruptcy clerk returned, receipt in hand, noted that Mr. Smith was nowhere to be seen and ushered us into a side room. A few formalities and Paul was then swearing an affidavit on a religious book (the courts have a number of religious books available for this purpose) and we were then told to wait outside court number 2 for the judge to call us forward.

The bankruptcy hearing

No wigs, no dark wood paneled furniture, no jury, no ushers frantically capturing every word. Bankruptcy hearings are often a one-to-one hearing between the debtor and the county court judge. As I was also present that made 3 of us and we all sat in an office with recording equipment capturing our words and we proceeded.

Paul confirmed his name and address. He also confirmed that he wanted to go bankrupt. The judge then turned to me and started with the tougher questions but nothing that I haven’t been asked before. After the judge went over the implications of bankruptcy, reinforcing exactly what I had told Paul twice before. A few minutes later the order was signed at 10.37am (yes it is recorded that precisely).

The judge then spent a few minutes chatting with me about the work I do and we were soon out of the chambers.

After the hearing

Paul already looked like a different guy. Well who wouldn’t look happier with £32,000 wiped off your plate?

We waited back at the bankruptcy clerk desk. Yet another poor soul had got some of their paperwork wrong but obviously not on the scale of Mr. Smith earlier. Still they were having to air their finances to all and sundry whilst they got the paperwork right. The clerk will help with the odd bit of information but they cannot just rewrite documents all day.

It wasn’t long before we were back in the side room, court order printed out and telephone in hand booking a meeting to see the Official Receiver.

Every bankruptcy case in the UK is reviewed by the Official Receiver. We booked the next meeting with the Official Receiver and left the courts.

Paul and myself said our goodbyes. He was delighted and I was too. The bankruptcy hearing had gone well.

I then went off to find my latte and have a chat with Mr. Smith!

How New Bankruptcy Laws are Different from Old Ones?

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In April 2005, Congress made extensive changes in U.S. bankruptcy law with effect from October 17, 2005. Called the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005," it spells trouble for people struggling with debt problems.

This new bankruptcy law and thanks to those who abused the privilege, new bankruptcy laws are stricter and have more requirements than ever before.

Some Facts on Bankruptcy

1. Between 1995 and 2004, bankruptcy filings doubled, while in that same period, credit card industry profits tripled.

2. For people 60 or older, 85% of bankruptcies are caused by medical bills or loss of job.

3. The median income of bankruptcy filers is $27,000.

Here is a look at some of the changes within the new bankruptcy law and how these changes may affect your decision to file bankruptcy.

New Bankruptcy Law – Chapter 7 Filings

The requirements for filing a Chapter 7 bankruptcy have also changed. Now, thanks to the changes in the laws, you have to prove your income. If you have a higher income than stated by the median income within your state, you will likely have to file a Chapter 13 bankruptcy instead of a Chapter 7.

Bankruptcy Law – Chapter 13

Now, with the new bankruptcy law, you may find, if you have to file for Chapter 13 bankruptcy, that you are paying more than you can comfortably live with. There are specific guidelines to calculating how much you have in disposable income and assets. This will depend on your income for the last six months before you filed bankruptcy and not your current income.

The worst aspect of the new bill is the use of IRS "allowable" expense schedules for determining your monthly budget. In short, people attempting to file bankruptcy are in for an extremely rude shock. No more cell phones, cable TV, high-speed Internet access, movies, meals out with the family, and anything else beyond the minimum allowable expenses as determined by the IRS and the courts.