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

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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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#

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.

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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

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

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

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

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 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.

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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

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.

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.

> 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.

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 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.