Certos meses há, eu escrevi um artigo (publicado neste local) intitulado “uma economia Secundário-Principal” e eu incito qualquer um que leio a seguinte parte para revisitar esse material, para ver o que eram errado sobre ele, e o que era direito. Nele, eu predisse que o disparador para o problema financeiro viria qualquer um no formulário de uma economia de superaquecimento, que dirigisse acima das taxas de interesse e para terminar a era do dinheiro fácil, empurrando companhias marginais sobre o penhasco, ou, alternativamente, que uma economia se enfraquecendo apertaria acima dos padrões emprestando, starving companhias fracas obstruindo seu recurso ao capital de funcionamento, e aumentando falhas de negócio. Eu era errado.
Quando mesmo a obrigação crônica optimistic certamente admitir agora que há um problema nos mercados importantes, e que, no fato, estêve derramado sobre em equidades, o fusível estêve iluminado não por tampouco dos fenômenos descritos, mas rather, pela “cauda proverbial que sacode o cão.” Aquele é dizer que quando os fundamentos “da economia global” - mais sobre essa frase hackneyed abaixo-remanescem fortes, eles ameaçam ser comprometidas por uma ausência do acesso ao crédito, fornecida hitherto por fundos de hedge e por fontes confidenciais da equidade, com os pools seemingly infinitos do dinheiro fácil que procuram um repouso.
Pode ser somente algumas semanas há isso que os cheerleaders indomitable para os mercados (quem, por alguma coincidência mágica, são, para a maioria de parte, os indivíduos acoplados no negócio de vender seguranças) eram dizendo nos que nós não necessitamos temer, porque o mundo era “awash nos oceanos do liquidity?” Agora, os bancos centrais worldwide estão intervindo quase em torno do pulso de disparo para fornecer liquidity needed aos mercados de crédito.
Quanto para a este autor, eu pensei do eu serra a volta do sem-fim aproximadamente duas semanas há, quando, na cara da volatilidade tremenda (e rather scary) em ambos os sentidos, os povos em Goldman Sachs trotaram para fora Abby Joseph Cohen a nos dizer que o touro estava vivo e bem, o agradecem muito muito. Eu tinha-me esquecido sobre Abby Joseph Cohen, e último recordá-la dizer-nos em março, 2000 (o último hurrah para a bolha do Internet) que isso, bem, o touro era vivo e bom. O ms Cohen tem, ao mais melhor de meu conhecimento, nunca sugerido publicamente que o mercado pôde {o gasp!} ir para baixo.
Uma evidência mais adicional de uma mudança no modo pode ser encontrada por qualquer um que é um watcher regular do CNBC. São idas a maioria dos sorrisos, dos gracejos e do bonhomie geral que poderiam sempre ser encontrados quando as expectativas eram de um mercado infinita se levantando. É ido que a maioria de sinal irritar do “cowbell” qual soou no CNBC para herald todo o anúncio da nota no mundo do negócio. E embora o CNBC seja suposto ser uma fonte da notícia do negócio e de mercado, nenhum visor regular da sua programação não pode não ter nenhuma dúvida sobre o amor inerente para touros e detestar dos ursos exibidos por seu talent do em-ar. Apesar de tudo, apenas porque os sellers das seguranças nos querem pensar de que os mercados irã0 sempre acima, os produtores do CNBC compreendem bem que o interesse largo, geral nos mercados (e daqui, avaliações mais elevadas) aumenta dramàtica quando os mercados se estão levantando. Mas hoje, o convidado caracterizado do CNBC antes que os mercados de ESTADOS UNIDOS abertos negociando não estiverem nenhuns à excepção de Wilbur Ross, decano unchallenged da aflição. Wilbur é um ícone na bancarrota/em restructuring/mundo da rotação, e, falando para myself (eu gastei sobre 25 anos neste campo), eu reconheço prontamente que Wilbur se esqueceu provavelmente de mais sobre este assunto do que mim saberei sempre.
No entanto, suas observações no turmoil atual nos mercados eram succinct e notàvelmente simples. Anotou aquele: “por os dois anos passados, consumidores gastaram mais do que ganharam, e o governo gastou mais do que ganhou (sic).” Indicou o óbvio: que tal situação não pode continuar indefinidamente. Atribuiu algumas das dificuldades recentes a o que se chamou as duas palavras as mais perigosas na língua inglesa: “Engenharia financeira,” que, de acordo com Ross significa que “alguém figurou para fora uma maneira ao risco do underprice.” Ross anotou que muitos povos tinham confiado inteiramente, e a seu detriment, nas agências das avaliações e nos produtos comprados que foram projetados vender do “uma taxa risco de retorno ignorant.” De acordo com ele, tal prática “tem sempre uma extremidade má.”
Ainda, os purveyors de lucros prometidos, indubitàvelmente, continuarão a dizer-nos que este é um mero “blip na tela de radar,” e que “a economia global indestrutível” conservará o dia. Se um tiver uma memória que alcance para trás antes da tarde do ontem (não tal dado em uma indústria cujos “capitães” sejam frequentemente os “twenty-somethings”), um pôde fàcilmente substituir as palavras “a economia global” para as palavras “economia nova” que era assim prevalent durante a bolha do Internet. Se pôde também fàcilmente realizar que o spate recente e maciço da equidade confidencial negocía, em que os fundos adquirem companhias públicas, e financía suas aquisições com ou empréstimos low-cost ou capital do investor fixado por recursos da companhia de alvo é (not-so) estranha reminiscent do crescimento buy-out da força de alavanca dos 1980's atrasados, bem-exibido assim na película Wall Street. Aqueles negócios vieram certamente a uma extremidade má.
A diferença agora, os optimists starry-eyed diz-nos que, é que os defeitos nestes negócios são muito mais difíceis de provocar. No fato, alguns destes negócios confidenciais da equidade têm as provisões em que, se o devedor não puder pagar, no dinheiro, tem a opção meramente de emitir mais estoque ao emprestador. Esse sistema trabalha muito bem, até e a menos que o devedor estiver na dificuldade genuína. Não pode estar no defeito, porque retem a direita emitir mais estoque (do worthlessness crescente) a seu emprestador. Que foi realizado assim? O risco do disastre financeiro foi transferido meramente do devedor aos investors no negócio confidencial da equidade. A meu conhecimento, ninguém, até agora, figurou para fora um mecanismo para gerar de “retornos nivelados da ligação sucata” com do “qualidade do crédito do instrumento Tesouraria”. No entanto, os investors em muitos destes veículos permitiram-se de algum modo que bamboozled em pensar de que alguém teve. E eram dispostos pagar taxas astronômicas por ela. Agora, naturalmente, muitos investors estão funcionando para as saídas, chocados realmente em ter perdido o capital! E “os coordenadores financeiros” estão implorando a reserva federal para montar dentro ao salvamento e para reduzir a taxa de fundos do Fed. Quem se beneficiaria por tal ação? Bem, o mercado conservado em estoque iria provavelmente acima, pelo menos para por algum tempo. É o Fed suposto estar no negócio de sustentar acima do mercado conservado em estoque? Na uma mão, seria funcionado quase certamente no dólar já golpeado de ESTADOS UNIDOS. O mess Secundário-Principal não seria resolvido por uma ação, como representa muito mais do que um problema de devedores menos do que stellar. É na maior parte um problema de declinar valores da carcaça em um sistema onde haja uma equidade completamente pequena dos compradores no primeiro lugar. Os devedores que não poderiam ter recursos para mortgages convencionais compraram os repousos, em cima de que puseram quase nenhum dinheiro para baixo, e fizeram-nos exame em mortgages nas taxas do teaser, que estão ajustando agora ao mercado.
Assim quem são as vítimas? Não os emprestadores. Começaram suas taxas e seus pontos. E começaram pagos outra vez quando “securitized” suas terras arrendadas do empréstimo e as venderam em um mercado recentemente criado e empacotado por outros “coordenadores financeiros.” Não realmente os devedores, tampouco, que começaram casas sem ter posto acima nenhuma equidade, e (para por algum tempo) mortgages low-interest pagos em vez do aluguel, para que um lugar viva que não poderia de outra maneira ter tido recursos para.
Mas se os jogos de Fed o papel da cavalaria, ou o governo embarks em cima contudo uma outra planta do bail-out (qualquer um recorda a crise S&L?), nós SABEMOS quem as vítimas serão: os taxpayers. Nós seremos convidados para conservar os bancos e os fundos de hedge das conseqüências de sua “engenharia financeira.”
“A economia global” pode jorrar seja forte, mas a economia de ESTADOS UNIDOS é dois terços dirigido pelo vice americano verdadeiro: consumerism rabid. Uma vez que os cartões de crédito são quase todos maxed para fora (e interesse resultando em, em alguns casos, sobre 30%), e a classe média pode já não alcançar sua equidade home inexistente (se por causa dos valores declinando ou de apertar padrões de crédito), consumidor que a despesa DEVE sofrer. As primeiras sugestões desta estão vindo dos avisos do lucro do Wal-Mart, do depósito Home e do Macy' S.
Eu sou certamente um believer no resilience e sucesso final deste país, e nós crescer-nos-emos de algum modo fora deste mess, demasiado, a longo prazo. Mas para o termo mais curto, todos os protestations do governo giram os doutores e os salesmen de Wall Street que posing porque os analistas não mudarão a verdade simples: A economia Secundário-Principal é em cima de nós.
Article Source: http://www.articleset.com
Thursday, August 30, 2007
El efecto del paraguas de la estancia de la bancarrota
Puesto al día para conformarse con BAPCAP nuevo (entrenamiento avanzado para los paralegals de la bancarrota)
El artículo siguiente está para los propósitos del entrenamiento solamente. No se piensa para el asesoramiento jurídico.
Sin importar si una petición entera o una petición esquelética está archivada, se ejecuta el mismo momento que la petición de la bancarrota se archiva con la corte de bancarrota, un tipo de paraguas para los deudores. Esto se llama la estancia de la bancarrota que ayuda a algunas emergencias comunes:
Desconexiones de la utilidad del **. Si los deudores están detrás en una cuenta para uso general y la empresa de servicio público está amenazando desconectar su agua, eléctrico, el gas, o el servicio telefónico, la estancia automática prevendrá la desconexión por lo menos 20 días. (También, la bancarrota descargará probablemente las deudas atrasadas para el servicio para uso general.)
Ejecución de una hipoteca del **. Si la hipoteca casera de los deudores se está excluyendo encendido, la estancia automática para temporalmente los procedimientos, pero el acreedor podrá a menudo proceder con la ejecución de una hipoteca más pronto o más adelante. Si los deudores son ejecución de una hipoteca de los revestimientos, la bancarrota del capítulo 13 es generalmente un remedio mejor que bancarrota del capítulo 7 si los deudores desean guardar su casa.
Desahucio del **. Si están desahuciando a los deudores de su hogar, la estancia automática puede proporcionar una cierta ayuda - solamente las nuevas marcas de la ley de la bancarrota él más fácil para que los propietarios procedan con desahucios. Si el propietario tiene ya un juicio de la posesión contra los deudores cuando archivan bancarrota, la estancia automática no afectará estos procedimientos del desahucio. El propietario puede continuar con el desahucio apenas como si los deudores no habían archivado para la bancarrota. Y si el propietario alega que los deudores han estado poniendo en peligro la característica o han estado utilizando sustancias controladas allí, la estancia automática no tendrá mucho efecto. En otros casos, la estancia automática pudo comprar a los deudores algunos días o semanas, pero el propietario pedirá probablemente la corte para levantar la estancia automática y para permitir el desahucio - y la corte acordará probablemente hacer tan.
Colección del ** de pagos excesivos de ventajas públicas. Si los deudores reciben ventajas públicas y eran pagaron en exceso, la agencia se da derecho normalmente a recoger el pago excesivo fuera de sus cheques futuros. La estancia automática previene esta colección. Sin embargo, si los deudores hacen inelegibles para las ventajas, la estancia automática no evita que la agencia negar o termine las ventajas por esa razón.
Garnishments múltiples del salario del **. El archivar para la bancarrota parará garnishments del salario absolutamente en sus pistas. El más, no sólo quiere a deudores pueda a para llevar un sueldo completo, pero también pueden poder descargar la deuda en bancarrota. Aunque no más el de 25% de un deudor emprende se pueden tomar para satisfacer los juicios de corte (el hasta 50% para la ayuda de niño y los alimentos), mucha gente archivan para la bancarrota si se amenaza más de un embargo de salario. Para alguna gente, que está viviendo de cheque-a-cheque, cualquier pérdida de renta es devastadora. También, algunos patrones consiguen enojados a expensas de y molestia de facilitar una sucesión de garnishments y la toman hacia fuera en sus empleados. Aunque la ley federal prohíbe a empleado de ser encendido para un embargo de salario, un patrón puede encender a un empleado para los garnishments múltiples.
Qué la estancia automática no puede prevenir
En algunos casos, la estancia automática no puede ayudar a deudores. Estas razones son:
Ciertos procedimientos del impuesto del **. La poder del IRS todavía revisa a deudores, publica un aviso de la deficiencia del impuesto, exige una declaración de impuestos (que conduzca a menudo a una intervención), publica un gravamen de impuesto, o exige el pago de tal gravamen. Sin embargo, la estancia automática para el IRS de publicar un embargo preventivo de impuesto o de tomar la característica o la renta de los deudores.
Acciones de la ayuda del **. Un pleito contra los deudores que intentan establecer paternity o establecer, modificar, o recoger la ayuda de niño o alimentos no es parado por la limadura para la bancarrota.
Procedimientos del criminal del **. Un procedimiento del criminal que se puede analizar en criminal y los componentes de la deuda será dividida, y el componente criminal no es afectado por la estancia automática. Por ejemplo, si condenaron por escribir un mal cheque, fueron condenado al servicio de comunidad, y ordenado a un deudor pagar una multa, su obligación de hacer servicio de comunidad no será parada archivando para la bancarrota.
Préstamos del ** de una pensión. A pesar de la estancia automática, el dinero se puede retener de una renta de los deudores para compensar un préstamo de ciertos tipos de pensiones (la mayoría de pensiones relativas al trabajo incluyendo e IRAs).
Limaduras del múltiplo del **. Si los deudores tenían un caso de la bancarrota pendiente durante el año anterior, la estancia de la bancarrota terminará automáticamente después de 30 días a menos que el deudor, el administrador, el administrador de los E.E.U.U., o un acreedor pida la estancia continuar y prueba que la caja actual fue archivada de buena fé. Si un acreedor archivó un movimiento para levantar la estancia que es pendiente durante el caso anterior, la corte puede asumir que actuaban los deudores con maldad, y tendrán que refutar esta asunción para conseguir la protección de la estancia automática en su caso actual.
NOTA: Este artículo es un extracto del libro: Cómo comenzar una bancarrota forma el proceso de servicio. escrito por el anillo de Victoria y accesible en línea en www.713training.com
Article Source: http://www.articleset.com
El artículo siguiente está para los propósitos del entrenamiento solamente. No se piensa para el asesoramiento jurídico.
Sin importar si una petición entera o una petición esquelética está archivada, se ejecuta el mismo momento que la petición de la bancarrota se archiva con la corte de bancarrota, un tipo de paraguas para los deudores. Esto se llama la estancia de la bancarrota que ayuda a algunas emergencias comunes:
Desconexiones de la utilidad del **. Si los deudores están detrás en una cuenta para uso general y la empresa de servicio público está amenazando desconectar su agua, eléctrico, el gas, o el servicio telefónico, la estancia automática prevendrá la desconexión por lo menos 20 días. (También, la bancarrota descargará probablemente las deudas atrasadas para el servicio para uso general.)
Ejecución de una hipoteca del **. Si la hipoteca casera de los deudores se está excluyendo encendido, la estancia automática para temporalmente los procedimientos, pero el acreedor podrá a menudo proceder con la ejecución de una hipoteca más pronto o más adelante. Si los deudores son ejecución de una hipoteca de los revestimientos, la bancarrota del capítulo 13 es generalmente un remedio mejor que bancarrota del capítulo 7 si los deudores desean guardar su casa.
Desahucio del **. Si están desahuciando a los deudores de su hogar, la estancia automática puede proporcionar una cierta ayuda - solamente las nuevas marcas de la ley de la bancarrota él más fácil para que los propietarios procedan con desahucios. Si el propietario tiene ya un juicio de la posesión contra los deudores cuando archivan bancarrota, la estancia automática no afectará estos procedimientos del desahucio. El propietario puede continuar con el desahucio apenas como si los deudores no habían archivado para la bancarrota. Y si el propietario alega que los deudores han estado poniendo en peligro la característica o han estado utilizando sustancias controladas allí, la estancia automática no tendrá mucho efecto. En otros casos, la estancia automática pudo comprar a los deudores algunos días o semanas, pero el propietario pedirá probablemente la corte para levantar la estancia automática y para permitir el desahucio - y la corte acordará probablemente hacer tan.
Colección del ** de pagos excesivos de ventajas públicas. Si los deudores reciben ventajas públicas y eran pagaron en exceso, la agencia se da derecho normalmente a recoger el pago excesivo fuera de sus cheques futuros. La estancia automática previene esta colección. Sin embargo, si los deudores hacen inelegibles para las ventajas, la estancia automática no evita que la agencia negar o termine las ventajas por esa razón.
Garnishments múltiples del salario del **. El archivar para la bancarrota parará garnishments del salario absolutamente en sus pistas. El más, no sólo quiere a deudores pueda a para llevar un sueldo completo, pero también pueden poder descargar la deuda en bancarrota. Aunque no más el de 25% de un deudor emprende se pueden tomar para satisfacer los juicios de corte (el hasta 50% para la ayuda de niño y los alimentos), mucha gente archivan para la bancarrota si se amenaza más de un embargo de salario. Para alguna gente, que está viviendo de cheque-a-cheque, cualquier pérdida de renta es devastadora. También, algunos patrones consiguen enojados a expensas de y molestia de facilitar una sucesión de garnishments y la toman hacia fuera en sus empleados. Aunque la ley federal prohíbe a empleado de ser encendido para un embargo de salario, un patrón puede encender a un empleado para los garnishments múltiples.
Qué la estancia automática no puede prevenir
En algunos casos, la estancia automática no puede ayudar a deudores. Estas razones son:
Ciertos procedimientos del impuesto del **. La poder del IRS todavía revisa a deudores, publica un aviso de la deficiencia del impuesto, exige una declaración de impuestos (que conduzca a menudo a una intervención), publica un gravamen de impuesto, o exige el pago de tal gravamen. Sin embargo, la estancia automática para el IRS de publicar un embargo preventivo de impuesto o de tomar la característica o la renta de los deudores.
Acciones de la ayuda del **. Un pleito contra los deudores que intentan establecer paternity o establecer, modificar, o recoger la ayuda de niño o alimentos no es parado por la limadura para la bancarrota.
Procedimientos del criminal del **. Un procedimiento del criminal que se puede analizar en criminal y los componentes de la deuda será dividida, y el componente criminal no es afectado por la estancia automática. Por ejemplo, si condenaron por escribir un mal cheque, fueron condenado al servicio de comunidad, y ordenado a un deudor pagar una multa, su obligación de hacer servicio de comunidad no será parada archivando para la bancarrota.
Préstamos del ** de una pensión. A pesar de la estancia automática, el dinero se puede retener de una renta de los deudores para compensar un préstamo de ciertos tipos de pensiones (la mayoría de pensiones relativas al trabajo incluyendo e IRAs).
Limaduras del múltiplo del **. Si los deudores tenían un caso de la bancarrota pendiente durante el año anterior, la estancia de la bancarrota terminará automáticamente después de 30 días a menos que el deudor, el administrador, el administrador de los E.E.U.U., o un acreedor pida la estancia continuar y prueba que la caja actual fue archivada de buena fé. Si un acreedor archivó un movimiento para levantar la estancia que es pendiente durante el caso anterior, la corte puede asumir que actuaban los deudores con maldad, y tendrán que refutar esta asunción para conseguir la protección de la estancia automática en su caso actual.
NOTA: Este artículo es un extracto del libro: Cómo comenzar una bancarrota forma el proceso de servicio. escrito por el anillo de Victoria y accesible en línea en www.713training.com
Article Source: http://www.articleset.com
Préstamo personal después de la bancarrota: ¿Puedes calificar?
Si deseas calificar para un préstamo personal después de que la bancarrota allí sea cuatro áreas dominantes que se determinarán cómo es acertado eres:
1) Tu cuenta del crédito
2) Colateral
3) Deuda existente
4) Tiempo
Miremos cada factor más detalladamente y cómo pueden ayudarte a aumentar tu ocasión de la calificación para un préstamo personal después de bancarrota:
1) Cuenta del crédito: Para calificar para un préstamo personal después de que bancarrota que necesitarás resolver los criterios mínimos de la cuenta del crédito del prestamista, con tal que el prestamista amplíe préstamos a los individuos con una bancarrota reciente. Desearás descubrir antes de solicitar un préstamo: Simplemente preguntar a prestamista si consideran a aspirantes con una bancarrota en su informe de crédito.
Supongamos al prestamista. ¿Cómo puedes aumentar tu cuenta del crédito bastante para calificar para un préstamo personal después de bancarrota?
El primer paso es pedir las copias de tus informes de crédito de las tres agencias principales de la divulgación de crédito (Experian, Equifax, y unión del transporte). Después, cerciorarte de que cualquier información negativa inexacta u obsoleta sobre tus informes de crédito esté quitada o que puesta al día. Entro el detalle en esto adentro después de soluciones del crédito de la bancarrota. También explico cómo agregar legalmente líneas del crédito positivas a tus informes de crédito, que es una manera muy de gran alcance de aumentar tu cuenta del crédito - pero me voluntad excepto que para otro artículo.
2) Colateral: Otro factor importante en la obtención de un préstamo personal después de que la bancarrota sea cuánto colateral tienes. ¿Por qué? Porque si un prestamista tiene colateral que pueden ir después de que (es decir, equidad en tu hogar) deben tú omitir en el préstamo, que reduce su riesgo dramáticamente. Tan si puedes proporcionar colateral al prestamista, puede aumentar tus ocasiones de la calificación para un préstamo personal después de bancarrota.
3) Deuda existente: No deseas tener demasiada deuda cuando solicitas un préstamo personal después de bancarrota. Si lo haces, el prestamista puede sentirse que no tienes la capacidad (bastante renta) de cubrir el pago del préstamo, porque tienes demasiados otros costos mensuales a pagar (es decir, las tarjetas de crédito, pago auto, etc.) - consecuentemente podrías conseguir dado vuelta para un préstamo personal después de bancarrota.
En esa nota, descubrir si el prestamista tiene un requisito mínimo de la renta, o cociente de la deuda-a-renta que necesitas resolver. Si lo hacen, cerciorarse de tú reunión su requisito mínimo antes de que solicites el préstamo.
4) Tiempo: Se ha dicho que el “tiempo cura todas las heridas” - bien, cuando viene a obtener un préstamo personal después de que la bancarrota esto pueda ciertamente ser verdad si has desarrollado una historia de pago positiva desde tu bancarrota.
Cuando un prestamista está decidiendo si o no extenderte un préstamo personal después de bancarrota, tu informe de crédito desempeñará un papel importante. Generalmente hablando, si tu informe de crédito refleja una historia de pago positiva por lo menos dos años desde tu bancarrota, ayudará ciertamente.
Hemos mirado los cuatro factores principales que se determinarán si o no calificas para un préstamo personal después de bancarrota: Tu cuenta del crédito, colateral, deuda existente, y tiempo. Al grado puedes consolidar cada uno de éstos que aumentas tus ocasiones de ser aprobado para un préstamo personal después de bancarrota.
¡Aunque no puedes calificar para un préstamo personal después de bancarrota inmediatamente, no te desalientas! Recordar, tiempo puede curar todas las heridas cuando viene a la calificación para un préstamo personal después de bancarrota. Apenas cerciorarte de centrarse en el aumento de tu cuenta del crédito, pagar tus cuentas existentes el tiempo, no adquirir demasiada deuda, y acumular tu valor neto.
Article Source: http://www.articleset.com
1) Tu cuenta del crédito
2) Colateral
3) Deuda existente
4) Tiempo
Miremos cada factor más detalladamente y cómo pueden ayudarte a aumentar tu ocasión de la calificación para un préstamo personal después de bancarrota:
1) Cuenta del crédito: Para calificar para un préstamo personal después de que bancarrota que necesitarás resolver los criterios mínimos de la cuenta del crédito del prestamista, con tal que el prestamista amplíe préstamos a los individuos con una bancarrota reciente. Desearás descubrir antes de solicitar un préstamo: Simplemente preguntar a prestamista si consideran a aspirantes con una bancarrota en su informe de crédito.
Supongamos al prestamista. ¿Cómo puedes aumentar tu cuenta del crédito bastante para calificar para un préstamo personal después de bancarrota?
El primer paso es pedir las copias de tus informes de crédito de las tres agencias principales de la divulgación de crédito (Experian, Equifax, y unión del transporte). Después, cerciorarte de que cualquier información negativa inexacta u obsoleta sobre tus informes de crédito esté quitada o que puesta al día. Entro el detalle en esto adentro después de soluciones del crédito de la bancarrota. También explico cómo agregar legalmente líneas del crédito positivas a tus informes de crédito, que es una manera muy de gran alcance de aumentar tu cuenta del crédito - pero me voluntad excepto que para otro artículo.
2) Colateral: Otro factor importante en la obtención de un préstamo personal después de que la bancarrota sea cuánto colateral tienes. ¿Por qué? Porque si un prestamista tiene colateral que pueden ir después de que (es decir, equidad en tu hogar) deben tú omitir en el préstamo, que reduce su riesgo dramáticamente. Tan si puedes proporcionar colateral al prestamista, puede aumentar tus ocasiones de la calificación para un préstamo personal después de bancarrota.
3) Deuda existente: No deseas tener demasiada deuda cuando solicitas un préstamo personal después de bancarrota. Si lo haces, el prestamista puede sentirse que no tienes la capacidad (bastante renta) de cubrir el pago del préstamo, porque tienes demasiados otros costos mensuales a pagar (es decir, las tarjetas de crédito, pago auto, etc.) - consecuentemente podrías conseguir dado vuelta para un préstamo personal después de bancarrota.
En esa nota, descubrir si el prestamista tiene un requisito mínimo de la renta, o cociente de la deuda-a-renta que necesitas resolver. Si lo hacen, cerciorarse de tú reunión su requisito mínimo antes de que solicites el préstamo.
4) Tiempo: Se ha dicho que el “tiempo cura todas las heridas” - bien, cuando viene a obtener un préstamo personal después de que la bancarrota esto pueda ciertamente ser verdad si has desarrollado una historia de pago positiva desde tu bancarrota.
Cuando un prestamista está decidiendo si o no extenderte un préstamo personal después de bancarrota, tu informe de crédito desempeñará un papel importante. Generalmente hablando, si tu informe de crédito refleja una historia de pago positiva por lo menos dos años desde tu bancarrota, ayudará ciertamente.
Hemos mirado los cuatro factores principales que se determinarán si o no calificas para un préstamo personal después de bancarrota: Tu cuenta del crédito, colateral, deuda existente, y tiempo. Al grado puedes consolidar cada uno de éstos que aumentas tus ocasiones de ser aprobado para un préstamo personal después de bancarrota.
¡Aunque no puedes calificar para un préstamo personal después de bancarrota inmediatamente, no te desalientas! Recordar, tiempo puede curar todas las heridas cuando viene a la calificación para un préstamo personal después de bancarrota. Apenas cerciorarte de centrarse en el aumento de tu cuenta del crédito, pagar tus cuentas existentes el tiempo, no adquirir demasiada deuda, y acumular tu valor neto.
Article Source: http://www.articleset.com
Não deixar o Scare novo da lei da bancarrota você
Outubro em 17, 2005 o mundo da lei da bancarrota mudaram para o mais mau. Ou? É realmente esse muito mais duro arquivar a bancarrota sob a lei nova da bancarrota?
No funcionamento até a data eficaz da lei nova, os arquivamentos de bancarrota aumentaram aos números record em virtualmente cada distrito da corte de bancarrota nos Estados Unidos. Os termos Scary como de “o teste meios” e da “o crédito bancarrota que aconselha” pareceram dirigir povos fora do trabalho de madeira para bater o fim do prazo.
Após a lei mudou, muitos advogados que se usaram arquivar a bancarrota sob a lei velha deram simplesmente bancarrotas acima arquivando por causa de uma percepção que a lei nova da bancarrota está complicada excedente e tempo - consumindo.
A bancarrota do arquivamento sob a bancarrota nova é um bocado mais complicado e é certamente mais tempo - consumir, mas com os conselhos eficazes da bancarrota, restructuring com sucesso seu débito é ainda possível.
Uma das provisões as mais temidas da lei nova é o teste de meios da bancarrota. O teste de meios da bancarrota é um cálculo usado determinar que tipo de bancarrota um devedor pôde arquivar. Para simplificar coisas, o teste de meios da bancarrota requer um devedor que considera a bancarrota ser combinado de encontro à renda mediana do estado do estado do devedor do arquivamento.
Os devedores que estão sobre a renda mediana do estado podem ter uma estadia mais difícil arquivar uma bancarrota do capítulo 7 e puderam ter que arquivar uma bancarrota do capítulo 13 que requeira um reembolso mensal à corte de bancarrota. O teste de meios da bancarrota não impedirá que um devedor arquive uma bancarrota; ajudará somente determinar que tipo de bancarrota deve ser arquivado.
A maioria de advogados da bancarrota estão encontrando para fora que a maioria dos povos que consideram a bancarrota parece estar sob a renda mediana do estado inicialmente e na maior parte não afetada pelo teste de meios da bancarrota.
Uma outra exigência que pareça golpear em toda parte o medo nos corações dos devedores e dos advogados é da “crédito bancarrota que aconselha”. A lei nova da bancarrota requer cada devedor que considera a bancarrota terminar o crédito da bancarrota que aconselha dentro dos seis meses que precedem o arquivamento da bancarrota.
A maioria de advogados da bancarrota estão encontrando que a exigência aconselhando não foi muita de uma edição. A maioria de devedores escolhem fazer um telefone breve que aconselham a sessão e o custo máximo ao devedor é ajustado pela lei e não podido exceder $50.00. Para ver se há uma lista de counselors disponíveis do crédito da bancarrota, verificar BankruptcyCreditCounselors.com (www.bankruptcycreditcounselors.com).
Não deixar o scare novo da lei da bancarrota você. Se você necessitar a ajuda, começar a ajuda. Consultar com um advogado perito da bancarrota em sua área que oferece consultations livres explorar todas suas opções da bancarrota.
Article Source: http://www.articleset.com
No funcionamento até a data eficaz da lei nova, os arquivamentos de bancarrota aumentaram aos números record em virtualmente cada distrito da corte de bancarrota nos Estados Unidos. Os termos Scary como de “o teste meios” e da “o crédito bancarrota que aconselha” pareceram dirigir povos fora do trabalho de madeira para bater o fim do prazo.
Após a lei mudou, muitos advogados que se usaram arquivar a bancarrota sob a lei velha deram simplesmente bancarrotas acima arquivando por causa de uma percepção que a lei nova da bancarrota está complicada excedente e tempo - consumindo.
A bancarrota do arquivamento sob a bancarrota nova é um bocado mais complicado e é certamente mais tempo - consumir, mas com os conselhos eficazes da bancarrota, restructuring com sucesso seu débito é ainda possível.
Uma das provisões as mais temidas da lei nova é o teste de meios da bancarrota. O teste de meios da bancarrota é um cálculo usado determinar que tipo de bancarrota um devedor pôde arquivar. Para simplificar coisas, o teste de meios da bancarrota requer um devedor que considera a bancarrota ser combinado de encontro à renda mediana do estado do estado do devedor do arquivamento.
Os devedores que estão sobre a renda mediana do estado podem ter uma estadia mais difícil arquivar uma bancarrota do capítulo 7 e puderam ter que arquivar uma bancarrota do capítulo 13 que requeira um reembolso mensal à corte de bancarrota. O teste de meios da bancarrota não impedirá que um devedor arquive uma bancarrota; ajudará somente determinar que tipo de bancarrota deve ser arquivado.
A maioria de advogados da bancarrota estão encontrando para fora que a maioria dos povos que consideram a bancarrota parece estar sob a renda mediana do estado inicialmente e na maior parte não afetada pelo teste de meios da bancarrota.
Uma outra exigência que pareça golpear em toda parte o medo nos corações dos devedores e dos advogados é da “crédito bancarrota que aconselha”. A lei nova da bancarrota requer cada devedor que considera a bancarrota terminar o crédito da bancarrota que aconselha dentro dos seis meses que precedem o arquivamento da bancarrota.
A maioria de advogados da bancarrota estão encontrando que a exigência aconselhando não foi muita de uma edição. A maioria de devedores escolhem fazer um telefone breve que aconselham a sessão e o custo máximo ao devedor é ajustado pela lei e não podido exceder $50.00. Para ver se há uma lista de counselors disponíveis do crédito da bancarrota, verificar BankruptcyCreditCounselors.com (www.bankruptcycreditcounselors.com).
Não deixar o scare novo da lei da bancarrota você. Se você necessitar a ajuda, começar a ajuda. Consultar com um advogado perito da bancarrota em sua área que oferece consultations livres explorar todas suas opções da bancarrota.
Article Source: http://www.articleset.com
Wednesday, August 29, 2007
Chapter 7 Bankruptcy Laws
Chapter 7 bankruptcy laws went through a major overhaul in the recent past which has put a serious crimp in many people's plans to start over. The new laws that were put into effect regarding what is chapter 7 bankruptcy options will substantially increase the number of chapter 13 filings since it is now much harder to qualify for chapter 7. The tough guidelines enacted by lawmakers will quash manipulation of the system by those who wish to wipe out debts that were incurred with no restraint. While many people suffer serious financial hardships at no fault of their own, those who have stacked unreasonably large debt upon debt will now be forced to face the music by submitting to the guidelines of a chapter 13 filing instead.
For those who are considering filing for bankruptcy, it is important to understand what is chapter 7 bankruptcy when it comes to the law. According to the new laws, several things can qualify an individual for this filing and an assessment is made by the courts as to a person's financial circumstances. The IRS has certain allowable limits for necessary living expenses that are assessed such as food and housing. Generally, the food allowance is around $210 and the housing allowance may be upwards of $900. Anyone who spends more than that cannot qualify for chapter 7 bankruptcies. Also, an assessment called a 'means test' is transacted and an individual's earnings are calculated minus a housing and food allowance.
If the subtracted amount of income if less than the mean income in that state, an individual may qualify to file, if not, filing for a chapter 13 will be mandated. These two particular laws put a stop to many people who would otherwise have filed for bankruptcies. When a person files, the current chapter 7 bankruptcy laws determine whether or not he or she must be denied and passed on to a chapter 13 filing. Up until now, many individuals would rather have avoided a chapter 13 because of the strict financial accountability and reorganization of personal finances that become court mandated. For those whose ask, "What is chapter 7 bankruptcy?" the answers have changed as a result of even more legal restraints.
Other changes to chapter 7 bankruptcy laws include restrictions on filing in any state unless a person has been a residence for at least two years. Other changes include mandatory financial counseling and expensive items purchased or cash loans received within 60 days of a petition will have to be repaid in full. In the past, many people attempted to take advantage of some states protective laws regarding assets such as homes and property. In some states, liquidation of personal homes as a result of filings are prohibited. Before filing a petition, some people have moved across state lines to file in another state in hopes of receiving the benefits of that state's laws. Under the new laws, that is no longer possible.
Those who discover more about what is chapter 7 bankruptcy laws will find that financial counseling will be imposed on anyone who advances through the process of filing. Within six months, mandatory counseling must take place as directed by the court. This new requirement of current laws has created an accountability factor that will undoubtedly prove to be useful in resolving debt and educating consumers. An important part of legislation that was enacted that helps creditors is the fact no one is allowed any longer to run up large bills on luxury items or receive cash advances within the last two months before filing for chapter 7. In the past, it has been noted that many people have premeditated their expenditures on luxury products just before filing. They have had their debts written off, but their creditors are left holding the bag. It has proven to be a scam of sorts and current chapter 7 bankruptcy laws have put a stop to that practice. "Submit yourselves to every ordinance of man for the Lords sakes..." (1 Peter 2:13a)
The purpose of allowing petitions to be filed through the courts was originally to provide a way for people to have a new lease on life after suffering serious financial setbacks. Over the past years, the original purposes for bankruptcies have been distorted. In order to halt unfair use of the laws, the recent legal requirements have been passed. Now, many people will be required to file a chapter 13 petition instead which will require greater accountability, repayment of most debts and mandatory fiscal responsibility. In order to understand what is chapter 7 bankruptcy requirements for individuals who wish to file, there are many online sources that can further expand the topic for anyone who needs assistance.
http://www.christianet.com/bankruptcy/chapter7bankruptcylaws.htm
For those who are considering filing for bankruptcy, it is important to understand what is chapter 7 bankruptcy when it comes to the law. According to the new laws, several things can qualify an individual for this filing and an assessment is made by the courts as to a person's financial circumstances. The IRS has certain allowable limits for necessary living expenses that are assessed such as food and housing. Generally, the food allowance is around $210 and the housing allowance may be upwards of $900. Anyone who spends more than that cannot qualify for chapter 7 bankruptcies. Also, an assessment called a 'means test' is transacted and an individual's earnings are calculated minus a housing and food allowance.
If the subtracted amount of income if less than the mean income in that state, an individual may qualify to file, if not, filing for a chapter 13 will be mandated. These two particular laws put a stop to many people who would otherwise have filed for bankruptcies. When a person files, the current chapter 7 bankruptcy laws determine whether or not he or she must be denied and passed on to a chapter 13 filing. Up until now, many individuals would rather have avoided a chapter 13 because of the strict financial accountability and reorganization of personal finances that become court mandated. For those whose ask, "What is chapter 7 bankruptcy?" the answers have changed as a result of even more legal restraints.
Other changes to chapter 7 bankruptcy laws include restrictions on filing in any state unless a person has been a residence for at least two years. Other changes include mandatory financial counseling and expensive items purchased or cash loans received within 60 days of a petition will have to be repaid in full. In the past, many people attempted to take advantage of some states protective laws regarding assets such as homes and property. In some states, liquidation of personal homes as a result of filings are prohibited. Before filing a petition, some people have moved across state lines to file in another state in hopes of receiving the benefits of that state's laws. Under the new laws, that is no longer possible.
Those who discover more about what is chapter 7 bankruptcy laws will find that financial counseling will be imposed on anyone who advances through the process of filing. Within six months, mandatory counseling must take place as directed by the court. This new requirement of current laws has created an accountability factor that will undoubtedly prove to be useful in resolving debt and educating consumers. An important part of legislation that was enacted that helps creditors is the fact no one is allowed any longer to run up large bills on luxury items or receive cash advances within the last two months before filing for chapter 7. In the past, it has been noted that many people have premeditated their expenditures on luxury products just before filing. They have had their debts written off, but their creditors are left holding the bag. It has proven to be a scam of sorts and current chapter 7 bankruptcy laws have put a stop to that practice. "Submit yourselves to every ordinance of man for the Lords sakes..." (1 Peter 2:13a)
The purpose of allowing petitions to be filed through the courts was originally to provide a way for people to have a new lease on life after suffering serious financial setbacks. Over the past years, the original purposes for bankruptcies have been distorted. In order to halt unfair use of the laws, the recent legal requirements have been passed. Now, many people will be required to file a chapter 13 petition instead which will require greater accountability, repayment of most debts and mandatory fiscal responsibility. In order to understand what is chapter 7 bankruptcy requirements for individuals who wish to file, there are many online sources that can further expand the topic for anyone who needs assistance.
http://www.christianet.com/bankruptcy/chapter7bankruptcylaws.htm
Chapter 13 Bankruptcy Laws
Chapter 13 bankruptcy laws have been changed to require more tests, which make qualification for filing more difficult than it was before. Of primary importance is the new disposable income test. Debtors must have regular income to qualify, and must propose a three- or five-year plan and show an ability to pay to the plan for the entire time. Under the old laws, judges were allowed to determine the reasonableness of living expenses according to individual circumstances and historical data. The new Chapter 13 bankruptcy laws require the judge to calculate disposable income based on a single standard for an approved budget for all people with no allowance for special needs, disabilities, incapacities, or costs of commuting.
Apparently, it was abuse that spurred the passage of the new Chapter 13 bankruptcy laws. Now, anyone considering filing under any of the various legal channels must attend an approved course that provides credit counseling, budget investigation, and financial analysis, and the course must be concluded within 180 days before filing his case with the Bankruptcy Court. There are no guidelines in the law for how much should be charged for tuition for this course, but there are free classes online, and some nonprofit organizations that are subsidized by major credit card companies are offering the course. For the attentive student, the course should give an improved vision of his or her financial status and goals, and the tools for avoiding getting into financial trouble again. This is significant, since the Chapter 13 bankruptcy abuse lawmakers were particularly concerned about was repeated filings of petitions by an individual.
Chapter 13 bankruptcy abuse under the new laws is probably not impossible, but very much less likely to happen. If there is a presumption of abuse by someone filing under Chapter 7 (which would wipe the slate clean), his case will automatically be changed to a 13 (requiring a plan of payment). The presumption of abuse depends upon the outcome of the means test now in place. Debtors who net more every month than their state's median income would be subject to a means test. If the debtor has at least $166.67 in current monthly income after the allowed deductions, abuse is presumed no matter the amount of the debtor's unsecured debt; or, if the debtor had at least $100 of such income, abuse is presumed if he has sufficient funds to pay at least twenty-five percent of non priority unsecured debt over five years. There is a clause that allows rebuttal of the presumption of abuse if there are detailed documents proving special circumstances requiring additional expenses, or adjustment of current monthly total income.
IRS standards are used to calculate what debtors can claim as monthly living expenses, which would include food, clothing, personal care, and entertainment, depending on the debtor's family size. An increase up to five percent of that national standard can be allowed if it can be shown that it is reasonable and necessary. The new Chapter 13 bankruptcy laws require the debtor must file a certificate of credit counseling and repayment plan within 180 days of filing. (This requirement is waived for debtors who are disabled, incapacitated, or on active duty in a military zone.) The debtor must also submit the following: (1) a statement demonstrating debtor has received and read Sec. 342(b) notice; (2) pay stubs for the previous 60 days; (3) a statement of projected income after discharge or dismissal of the case, or increases in expenditures; (4) itemized monthly net income; (5) his most recent IRS return; (6) provide tax returns each year of the proceeding; (7) an annual income/expense statement; (8) disclosure of qualified education savings accounts and tuition programs; and (9) if requested by trustee, a photo ID. (Whew!) And that isn't all. Debtors must perform their intent to surrender, reaffirm, or redeem debt secured by property of the estate within 30 days after the first date set for the meeting of creditors. There are some other provisions fitting particular circumstances, and the best source for that information would be a good attorney. In fact, having a good attorney may be the only way to completely avoid the pitfalls of inadvertent Chapter 13 bankruptcy abuse.
Previous Chapter 13 bankruptcy abuse has been addressed by several provisions, and they are: increased protection for secured debtors; prompt filing of schedules and other information; adjustments to ensure that creditors receive notice of filings; require plans to extend for five years for debtors with incomes over the statutory limit; and limit the shelter to real estate assets. Also the time between filing Chapters 7 and 13 has been expanded to eight years. Further, non dischargeable debts have been expanded. The Court has to trust that the debtor will comply with the requirements under the law, and the debtor trusts that he will be protected and his work will be appreciated. Scripture mentions trust in the Lord: "The LORD recompense thy work, and a full reward be given thee of the LORD God of Israel, under whose wings thou art come to trust." (Ruth 2:12)
Clearly, the new Chapter 13 bankruptcy laws have made filing under that provision more difficult, and have given greater protection to creditors. For debtors who are in the position of really needing the protection of these provisions for getting out from under an excessive debt burden, this is probably not a total deterrent. Good attorneys will be able to evaluate an individual's position and explain the requirements thoroughly, so one can navigate the proverbial rough waters with some certainty. On the other side of the coin, Chapter 13 bankruptcy abuse should certainly be substantially reduced.
http://www.christianet.com/bankruptcy/chapter13bankruptcylaws.htm
Apparently, it was abuse that spurred the passage of the new Chapter 13 bankruptcy laws. Now, anyone considering filing under any of the various legal channels must attend an approved course that provides credit counseling, budget investigation, and financial analysis, and the course must be concluded within 180 days before filing his case with the Bankruptcy Court. There are no guidelines in the law for how much should be charged for tuition for this course, but there are free classes online, and some nonprofit organizations that are subsidized by major credit card companies are offering the course. For the attentive student, the course should give an improved vision of his or her financial status and goals, and the tools for avoiding getting into financial trouble again. This is significant, since the Chapter 13 bankruptcy abuse lawmakers were particularly concerned about was repeated filings of petitions by an individual.
Chapter 13 bankruptcy abuse under the new laws is probably not impossible, but very much less likely to happen. If there is a presumption of abuse by someone filing under Chapter 7 (which would wipe the slate clean), his case will automatically be changed to a 13 (requiring a plan of payment). The presumption of abuse depends upon the outcome of the means test now in place. Debtors who net more every month than their state's median income would be subject to a means test. If the debtor has at least $166.67 in current monthly income after the allowed deductions, abuse is presumed no matter the amount of the debtor's unsecured debt; or, if the debtor had at least $100 of such income, abuse is presumed if he has sufficient funds to pay at least twenty-five percent of non priority unsecured debt over five years. There is a clause that allows rebuttal of the presumption of abuse if there are detailed documents proving special circumstances requiring additional expenses, or adjustment of current monthly total income.
IRS standards are used to calculate what debtors can claim as monthly living expenses, which would include food, clothing, personal care, and entertainment, depending on the debtor's family size. An increase up to five percent of that national standard can be allowed if it can be shown that it is reasonable and necessary. The new Chapter 13 bankruptcy laws require the debtor must file a certificate of credit counseling and repayment plan within 180 days of filing. (This requirement is waived for debtors who are disabled, incapacitated, or on active duty in a military zone.) The debtor must also submit the following: (1) a statement demonstrating debtor has received and read Sec. 342(b) notice; (2) pay stubs for the previous 60 days; (3) a statement of projected income after discharge or dismissal of the case, or increases in expenditures; (4) itemized monthly net income; (5) his most recent IRS return; (6) provide tax returns each year of the proceeding; (7) an annual income/expense statement; (8) disclosure of qualified education savings accounts and tuition programs; and (9) if requested by trustee, a photo ID. (Whew!) And that isn't all. Debtors must perform their intent to surrender, reaffirm, or redeem debt secured by property of the estate within 30 days after the first date set for the meeting of creditors. There are some other provisions fitting particular circumstances, and the best source for that information would be a good attorney. In fact, having a good attorney may be the only way to completely avoid the pitfalls of inadvertent Chapter 13 bankruptcy abuse.
Previous Chapter 13 bankruptcy abuse has been addressed by several provisions, and they are: increased protection for secured debtors; prompt filing of schedules and other information; adjustments to ensure that creditors receive notice of filings; require plans to extend for five years for debtors with incomes over the statutory limit; and limit the shelter to real estate assets. Also the time between filing Chapters 7 and 13 has been expanded to eight years. Further, non dischargeable debts have been expanded. The Court has to trust that the debtor will comply with the requirements under the law, and the debtor trusts that he will be protected and his work will be appreciated. Scripture mentions trust in the Lord: "The LORD recompense thy work, and a full reward be given thee of the LORD God of Israel, under whose wings thou art come to trust." (Ruth 2:12)
Clearly, the new Chapter 13 bankruptcy laws have made filing under that provision more difficult, and have given greater protection to creditors. For debtors who are in the position of really needing the protection of these provisions for getting out from under an excessive debt burden, this is probably not a total deterrent. Good attorneys will be able to evaluate an individual's position and explain the requirements thoroughly, so one can navigate the proverbial rough waters with some certainty. On the other side of the coin, Chapter 13 bankruptcy abuse should certainly be substantially reduced.
http://www.christianet.com/bankruptcy/chapter13bankruptcylaws.htm
Chapter 13 Attorney
A chapter 13 bankruptcy attorney is the person to call for professional assistance in deciding to go bankrupt and how the whole process works. The attorney will work with clients so that filing will help them rehabilitate their credit through the restrictions and limitations of the court. When filing, debtors pay off some debts, but it is on much better terms, i.e., lower or no interest. Also, clients don't have to sell assets under a Chapter 13 if they are working and can make payments. The United States Code allows up to five years to pay off creditors, and the process is completely supervised by the court. The chapter 13 bankruptcy attorney will make sure the debtor's interests are protected.
"The righteous shall inherit the land, and dwell therein for ever" (Psalm 37:29). Despite the fact that our earthly possessions mean little in the long run, the debtor is allowed to keep all of his property under Chapter 13. Currently, a bankruptcy lawyer will take into account the debtor's regular monthly payments such as house and car notes, and utilities when deciding what the monthly payments will be. After the attorney has worked out a plan with the court, the client begins making payments 30 to 45 days after the case begins. Payments are made to the trustee who has been appointed by the court, and he disburses the funds to the creditors. The creditors are required by law to strictly follow the terms of the repayment plan. They can no longer look to the debtor directly for payment. After the payment plan is filed, there will be a confirmation hearing before a judge. Clients may appear at the hearing, and if they have a problem with the plan, objections are permitted. The judge will hear both sides before confirming the plan. Once the plan is confirmed, payments can begin.
The ability to make the monthly payments is a necessary part of a Chapter 13, so the client must be gainfully employed, or at least have prospects of future income. Those who need to file because of job loss and trouble finding employment may have to file under Chapter 7, or find some other way out of indebtedness, such as consolidation or an equity loan. When consulting a Chapter 13 bankruptcy attorney, he will lay out the options and will know his client's ability to obtain new loans or credit without the court's permission. The debtor's bank may be one of those which offers "secured" credit cards, those with a certain amount of money put on it by the cardholder. Two years after going bankrupt, clients will once again be eligible for mortgage loans on the same terms as someone who never filed for bankruptcy with a bankruptcy lawyer.
When the new rules for filing are in place, the plan will be based on total income, without the payments mentioned above being a consideration. This is going to make it harder to file unless the debtor's income is below the local poverty level. It may require the client to sell their house and car, and move to a less expensive neighborhood in order to meet the debt payback requirements. Consultation with a Chapter 13 bankruptcy attorney will provide the details about filing before the new rules go into effect, and what to expect if debtors wait.
Any bankruptcy lawyer will say that any of the chapters should be a last resort, because it is there to allow debtors to get out from under and make a fresh start. Although the record of going bankrupt stays on a credit report for ten years, it won't be that long before filers can get credit again. The more time that passes afterward, the better the chances for obtaining credit. It is expected that after filing, filers will be more careful with managing debt in the future. However, should filers find difficulty again, they are allowed to file for protection again in six years.
There are some important facts a good bankruptcy lawyer will point out concerning the process: Clients get legal protection from creditors; most of debt can be eliminated; financial ruin can be stopped, enabling a fresh start. The counselor will also say that debtors will still have some debt to pay, will have to go to court, and the disadvantages to not filing. Filers can find a local law firm either on the Internet or in the local telephone book. Asking around if friends and family can recommend one is also a good idea. Most options are reputable, but debtors need to be sure that the counselor is licensed and has a solid reputation. Before taking any action toward bankruptcy, filers should consult with a good Chapter 13 law office to determine if this is the best action for the particular situation.
http://www.christianet.com/bankruptcy/bankruptcylawyer.htm
"The righteous shall inherit the land, and dwell therein for ever" (Psalm 37:29). Despite the fact that our earthly possessions mean little in the long run, the debtor is allowed to keep all of his property under Chapter 13. Currently, a bankruptcy lawyer will take into account the debtor's regular monthly payments such as house and car notes, and utilities when deciding what the monthly payments will be. After the attorney has worked out a plan with the court, the client begins making payments 30 to 45 days after the case begins. Payments are made to the trustee who has been appointed by the court, and he disburses the funds to the creditors. The creditors are required by law to strictly follow the terms of the repayment plan. They can no longer look to the debtor directly for payment. After the payment plan is filed, there will be a confirmation hearing before a judge. Clients may appear at the hearing, and if they have a problem with the plan, objections are permitted. The judge will hear both sides before confirming the plan. Once the plan is confirmed, payments can begin.
The ability to make the monthly payments is a necessary part of a Chapter 13, so the client must be gainfully employed, or at least have prospects of future income. Those who need to file because of job loss and trouble finding employment may have to file under Chapter 7, or find some other way out of indebtedness, such as consolidation or an equity loan. When consulting a Chapter 13 bankruptcy attorney, he will lay out the options and will know his client's ability to obtain new loans or credit without the court's permission. The debtor's bank may be one of those which offers "secured" credit cards, those with a certain amount of money put on it by the cardholder. Two years after going bankrupt, clients will once again be eligible for mortgage loans on the same terms as someone who never filed for bankruptcy with a bankruptcy lawyer.
When the new rules for filing are in place, the plan will be based on total income, without the payments mentioned above being a consideration. This is going to make it harder to file unless the debtor's income is below the local poverty level. It may require the client to sell their house and car, and move to a less expensive neighborhood in order to meet the debt payback requirements. Consultation with a Chapter 13 bankruptcy attorney will provide the details about filing before the new rules go into effect, and what to expect if debtors wait.
Any bankruptcy lawyer will say that any of the chapters should be a last resort, because it is there to allow debtors to get out from under and make a fresh start. Although the record of going bankrupt stays on a credit report for ten years, it won't be that long before filers can get credit again. The more time that passes afterward, the better the chances for obtaining credit. It is expected that after filing, filers will be more careful with managing debt in the future. However, should filers find difficulty again, they are allowed to file for protection again in six years.
There are some important facts a good bankruptcy lawyer will point out concerning the process: Clients get legal protection from creditors; most of debt can be eliminated; financial ruin can be stopped, enabling a fresh start. The counselor will also say that debtors will still have some debt to pay, will have to go to court, and the disadvantages to not filing. Filers can find a local law firm either on the Internet or in the local telephone book. Asking around if friends and family can recommend one is also a good idea. Most options are reputable, but debtors need to be sure that the counselor is licensed and has a solid reputation. Before taking any action toward bankruptcy, filers should consult with a good Chapter 13 law office to determine if this is the best action for the particular situation.
http://www.christianet.com/bankruptcy/bankruptcylawyer.htm
Tuesday, August 28, 2007
Bankruptcy and Credit Repair
Has your life been suffocated by debt and bankruptcy looks like the only way to breathe? If you have been controlled by debt and want out you need to understand how bankruptcy and credit repair go hand-in-hand. Today, filing for bankruptcy is not as easy as it was two years ago. With new bankruptcy laws now in place, things have changed. Currently, anyone interested in filing for bankruptcy must first go through credit counselling prior to filing.
In addition, before old debt can just be wiped out, further counselling on debt management and budgeting is required. Then, for people with higher income, they will no longer be able to file for Chapter 7 but instead, must repay a portion of their debt as outlined in Chapter 13. This new law makes it much harder to file and it creates a problem in finding a bankruptcy attorney to take the case. Therefore, rather than file for bankruptcy, credit repair may be a better, long-term solution.
Now, if you have already filed for bankruptcy and now your credit report looks bad, credit repair is still an option. The good news is that whether your bankruptcy is new or old, there are options for improving your credit score. With a bankruptcy, the goal is to have all your debt discharged, which makes life easier and credit better. Unfortunately, the bankruptcy just adds negativity to a credit report. Then, when you consider that credit bureaus are allowed to report a bankruptcy for 7 to 10 years, you live with a smudge that can make financial situations difficult.
The bottom line is that trying to qualify for credit or a mortgage loan after bankruptcy is near impossible unless the credit is cleaned up. Therefore, remember that bankruptcy, credit repair programs do exist but you need to be very careful when choosing a company in that they are not all honest. These special programs are designed to improve your credit and raise your FICO score even after filing a bankruptcy. However, keep in mind that cleaning up credit does not happen overnight, it takes time.
Look at it this way, bankruptcy is a legal issue. Therefore, while you may be thinking about filing for bankruptcy as a means of getting a fresh financial start, be careful and consider all your options first. For some people, there are times when a bankruptcy may be the only way to get back on track but today, bankruptcy credit repair is becoming more and more common, especially with the new laws in effect. Even thought the bankruptcy will stay on your credit report for the 7 to 10 years, during that time, you can do other things to rebuild and establish good credit.
In other words, while the bankruptcy may reside on your credit report for years, many lenders and creditors will look beyond the bankruptcy to see what else you have been doing. This means if you pay your other bills on time for an extended period, pay off some of your excessive debt, and show that you are creditworthy, creditors will eventually be willing to work with you. Yes, a bankruptcy will hurt but by using credit repair for other items, you can improve your score and again start to enjoy financial freedom.
Just remember that thousands of companies exist that will promise you bankruptcy credit repair in the form of removing the bankruptcy from your credit report. The truth is that this is impossible. Therefore, while some companies can offer bankruptcy credit repair and improve your credit, actually promising to remove the bankruptcy prior to the 7 to 10 years is nothing more than a scam. These companies will gladly take your $200 to $500 and in return, do nothing for you. Just be wise when working with a credit repair company and above all, educate yourself on your legal rights and the way in which credit bureaus work so you know what is and is not possible.
http://www.creditrepaircommando.com/bankruptcy-credit-repair.html
In addition, before old debt can just be wiped out, further counselling on debt management and budgeting is required. Then, for people with higher income, they will no longer be able to file for Chapter 7 but instead, must repay a portion of their debt as outlined in Chapter 13. This new law makes it much harder to file and it creates a problem in finding a bankruptcy attorney to take the case. Therefore, rather than file for bankruptcy, credit repair may be a better, long-term solution.
Now, if you have already filed for bankruptcy and now your credit report looks bad, credit repair is still an option. The good news is that whether your bankruptcy is new or old, there are options for improving your credit score. With a bankruptcy, the goal is to have all your debt discharged, which makes life easier and credit better. Unfortunately, the bankruptcy just adds negativity to a credit report. Then, when you consider that credit bureaus are allowed to report a bankruptcy for 7 to 10 years, you live with a smudge that can make financial situations difficult.
The bottom line is that trying to qualify for credit or a mortgage loan after bankruptcy is near impossible unless the credit is cleaned up. Therefore, remember that bankruptcy, credit repair programs do exist but you need to be very careful when choosing a company in that they are not all honest. These special programs are designed to improve your credit and raise your FICO score even after filing a bankruptcy. However, keep in mind that cleaning up credit does not happen overnight, it takes time.
Look at it this way, bankruptcy is a legal issue. Therefore, while you may be thinking about filing for bankruptcy as a means of getting a fresh financial start, be careful and consider all your options first. For some people, there are times when a bankruptcy may be the only way to get back on track but today, bankruptcy credit repair is becoming more and more common, especially with the new laws in effect. Even thought the bankruptcy will stay on your credit report for the 7 to 10 years, during that time, you can do other things to rebuild and establish good credit.
In other words, while the bankruptcy may reside on your credit report for years, many lenders and creditors will look beyond the bankruptcy to see what else you have been doing. This means if you pay your other bills on time for an extended period, pay off some of your excessive debt, and show that you are creditworthy, creditors will eventually be willing to work with you. Yes, a bankruptcy will hurt but by using credit repair for other items, you can improve your score and again start to enjoy financial freedom.
Just remember that thousands of companies exist that will promise you bankruptcy credit repair in the form of removing the bankruptcy from your credit report. The truth is that this is impossible. Therefore, while some companies can offer bankruptcy credit repair and improve your credit, actually promising to remove the bankruptcy prior to the 7 to 10 years is nothing more than a scam. These companies will gladly take your $200 to $500 and in return, do nothing for you. Just be wise when working with a credit repair company and above all, educate yourself on your legal rights and the way in which credit bureaus work so you know what is and is not possible.
http://www.creditrepaircommando.com/bankruptcy-credit-repair.html
Post Bankruptcy Credit Repair
Although bankruptcy is not something any person wants to go through, it is a part of life for many. Sometimes, debt just becomes too overwhelming and no matter how hard you try, bankruptcy becomes inevitable. You might find yourself in a bad divorce situation, perhaps you just lost a spouse, or you might have just made some poor decisions from a financial perspective. No matter what, you still have rights. This article will address post-bankruptcy credit repair, showing you how to “start over”.
For most people having gone through bankruptcy, they feel beat down and unworthy. You can stand up for yourself and use the laws in place to help you get back on your feet. You are certainly not the only or the last person ever found in this situation so pull yourself up by your bootstraps and take chart. Post-bankruptcy credit repair is an excellent opportunity to clean up old credit history and start anew so you can enjoy the things in life you deserve.
What happens is that once you file for bankruptcy and it is discharged, the debts are reported on the credit report as “zero balance”. Keep in mind that a bankruptcy can remain on your credit report for up to 10 years but that does not mean you cannot enjoy buying power. One of the ways to enjoy post-bankruptcy credit repair is to re-establish yourself with a secured credit card. You might be thinking that was what got you into trouble in the first place, why would you want a card. Well, a secured card is different.
With this, you can choose a Visa or MasterCard, which is issued by a bank. You would be required to have a savings account at that particular bank, which would be used for collateral toward purchases. Therefore, let us say you were given a $300 credit line. You would open a savings account with a minimum of $300. You can spend on that card up to $300 just as you would with a traditional credit card but if at any time you were to be late on a payment or default, the bank would take the money required from the savings account, which you would not have access to. Therefore, you enjoy post-bankruptcy credit repair while the bank is secured.
Another post-bankruptcy credit repair option would be to buy a car from someone that advertises they specialize in loans specifically for people who have experienced bad credit, even bankruptcy. The good side of this is that you get the car and have a great opportunity to show creditors that even with a bankruptcy on your credit report, you are still trying and creditworthy. The downside is that you can expect to pay high interest rates so there is trade off.
Just remember that with any type of post-bankruptcy credit repair, you want to be careful to avoid the very, same traps that ensnared you before landing you in hot water. Too often, people having filed for bankruptcy will find their mailbox inundated with all types of unsecured credit card offers. The reason – you do not owe anyone money. Therefore, even though you filed for bankruptcy, all income is just that, income and not payments. This means companies are willing to take a small risk. Unfortunately, unsecured credit cards mean you can spend, be late, and miss payments altogether, and all that would happen is you would have another negative remark on your credit report while the company would have to pay an attorney to hunt you down. This is danger, as you can imagine.
In truth, you have too many good, post-bankruptcy credit repair options to be setting yourself up for failure. Just be smart and make wise choices. You can always work with a reputable credit counselor to learn all the options you have. Bankruptcy is not pretty but it is also not the end of the world. You will have to work to get back on track and improve your credit score but in time and by doing it the right way, you can and you will!
http://www.creditrepaircommando.com/post-bankruptcy-credit-repair.html
For most people having gone through bankruptcy, they feel beat down and unworthy. You can stand up for yourself and use the laws in place to help you get back on your feet. You are certainly not the only or the last person ever found in this situation so pull yourself up by your bootstraps and take chart. Post-bankruptcy credit repair is an excellent opportunity to clean up old credit history and start anew so you can enjoy the things in life you deserve.
What happens is that once you file for bankruptcy and it is discharged, the debts are reported on the credit report as “zero balance”. Keep in mind that a bankruptcy can remain on your credit report for up to 10 years but that does not mean you cannot enjoy buying power. One of the ways to enjoy post-bankruptcy credit repair is to re-establish yourself with a secured credit card. You might be thinking that was what got you into trouble in the first place, why would you want a card. Well, a secured card is different.
With this, you can choose a Visa or MasterCard, which is issued by a bank. You would be required to have a savings account at that particular bank, which would be used for collateral toward purchases. Therefore, let us say you were given a $300 credit line. You would open a savings account with a minimum of $300. You can spend on that card up to $300 just as you would with a traditional credit card but if at any time you were to be late on a payment or default, the bank would take the money required from the savings account, which you would not have access to. Therefore, you enjoy post-bankruptcy credit repair while the bank is secured.
Another post-bankruptcy credit repair option would be to buy a car from someone that advertises they specialize in loans specifically for people who have experienced bad credit, even bankruptcy. The good side of this is that you get the car and have a great opportunity to show creditors that even with a bankruptcy on your credit report, you are still trying and creditworthy. The downside is that you can expect to pay high interest rates so there is trade off.
Just remember that with any type of post-bankruptcy credit repair, you want to be careful to avoid the very, same traps that ensnared you before landing you in hot water. Too often, people having filed for bankruptcy will find their mailbox inundated with all types of unsecured credit card offers. The reason – you do not owe anyone money. Therefore, even though you filed for bankruptcy, all income is just that, income and not payments. This means companies are willing to take a small risk. Unfortunately, unsecured credit cards mean you can spend, be late, and miss payments altogether, and all that would happen is you would have another negative remark on your credit report while the company would have to pay an attorney to hunt you down. This is danger, as you can imagine.
In truth, you have too many good, post-bankruptcy credit repair options to be setting yourself up for failure. Just be smart and make wise choices. You can always work with a reputable credit counselor to learn all the options you have. Bankruptcy is not pretty but it is also not the end of the world. You will have to work to get back on track and improve your credit score but in time and by doing it the right way, you can and you will!
http://www.creditrepaircommando.com/post-bankruptcy-credit-repair.html
The New Bankruptcy Law - What it Means to You
Years ago, just about anyone could file for bankruptcy. As long as they could show an imbalance of debt-to-income ratio and an overload of debt, they would quality. Well, times have changed. With so many millions of people now in debt and numbers growing, the government stepped in and said, “Enough is enough.” While some of the new bankruptcy laws are good, others might be considered not so good.
On October 17, 2005, a new bankruptcy law went into affect as a means of providing more protection for consumers. Officially known as the Bankruptcy Abuse Prevention and Consumer Protection Act, or BAPCPA, this law was signed in by President George Bush, which covers many changes to include debtors being required to pass strict rules to qualify. Through rigid testing, a determination is made whether Chapter 7 or Chapter 13 bankruptcy can be filed.
As you will discover, quite a bit of controversy surrounds this new law and for good reason. People supporting BAPCPA agree that it prohibits debtors who can afford to pay off debts from filing for bankruptcy, thus abusing the system. On the other end of the spectrum are those who do not support BAPCPA. For these individuals, the consensus is that the law is too strict. Regardless, just about everyone agrees that the changes are indeed the most significant law passed in several decades.
Again, opinions about the new bankruptcy conflict and considering the political motives and various viewpoints, it can all seem very confusing. The truth is that using bankruptcy to erase debt is a necessary evil for people who would otherwise have not way to get out of debt, whether from illness, loss of job, family death, and so on. In the past 20 years, the number of bankruptcies has jumped from 280,000 to 1.5 million! In fact, in just the past 10 years, one million people have filed for bankruptcy every year!
The downside to bankruptcy is that for each person unable to pay off debt, means someone else has to pick up the slack, which is the system by which we live. With so much debt and numbers staggering, the bankruptcy reform was designed to prevent the laws meant to help people from being abused. Obviously, bankruptcy in any case should be a last resort since once its done, it will remain on the person’s credit report for the next 10 years, meaning financial power is diminished although not impossible.
The truth is that the benefits that bankruptcy affords in wiping out debt needs to outweigh any negative aspects, which is something any person contemplating this action should consider. For most people, they would rather not file for bankruptcy but in some cases, this action is inevitable. The new bankruptcy law, BAPCPA, most definitely makes it more of a challenge for people who can afford other options out of the financial situation. Below are the changes this new bankruptcy brings:
· During the mandatory 180-day period prior to filing bankruptcy, you would have to go through a special briefing by an approved not-for-profit credit and budget, counseling agency. This agency must provide you with information outlining various counseling services to help you out of the situation. Additionally, this agency must perform a budget analysis. Then, if you were unable to pay for the service, it would be offered to you at no charge.
· Next, for you to qualify for Chapter 7 bankruptcy under the new law, which is the option that gives you a clean slate by wiping out debt, you would have to have an income level below the median income for the same size family living within your state or undergo a bankruptcy means test. This particular test is somewhat complex and considered strict when it comes to expenses. For instance, you would be allowed $1,500 annually per child under age 18 for expenses associated with private education no matter the actual expense.
· If you had an income more than the median income level for the same size family living within your state and you were able to pay a minimum of $6,000 over a five-year period or $100 monthly, then you would be required to file bankruptcy under Chapter 13, which means a portion of your debt would have to be repaid.
· A bankruptcy lawyer is required to certify your financial statement to the court. In fact, the lawyer will now be held financially responsible should any of your statements be false or misleading. Because so much responsibility has now fallen back on the lawyer, you can expect fees for filing bankruptcy to be much higher.
· The cost of filing a Chapter 7 bankruptcy has increased fro $155 to $200 and for Chapter 13 bankruptcy, the cost has decreased from $155 to $150.
For creditors, requirements under the new bankruptcy law have changed as well. These include the following:
· Under the new bankruptcy law, the Federal Reserve Board is required to study the question of, “Is there a connection between credit card debts developed in college with bankruptcies?” With so much research on the issue, a tremendous amount of documentation shows there is indeed a strong connection. The primary problem is that credit card companies swoop down over innocent college students with little money, making it far too easy for them to charge!
· The next change for creditors under this new bankruptcy law is that creditors cannot cancel and must display payback time. In other words, a creditor cannot cancel a credit card if the consumer pays it off. Additionally, the creditor is required to list the amount of time it will take to payoff the balance by the consumer paying only a minimum payment. This means now, a creditor must show that a $5,000 balance at 17% requiring a 2% payment will take a whopping 40 years to pay off!
· Third, bank regulators are now mandated to study whether credit card companies are issuing cards indiscriminately, without consideration to a person’s ability to repay. Credit card companies must also be studies to determine if they are actually key contributors to bankruptcy.
As the debtor, there are a few other requirements to consider in addition to those already mentioned.
· If there were any charges made on a credit card within the first three months after bankruptcy, you would be required to pay them in full.
· The bankruptcy courts have never given much credence to child support but the new law now sets a higher priority on both child support and alimony. With this, your income from child support and/or alimony may now be considered whereas with the old law, it was typically overlooked.
· IRAs are another factor to consider under the new bankruptcy law. Although bankruptcy should protect any money put aside in an education IRA, it also puts a cap on what things can be shielded from creditors in a Roth or other IRA. Interestingly, the cap is $1 million.
While all of these changes bring about great concern for people thinking about filing bankruptcy, other factors in the new law raise even more concern.
· Living expenses can now be dictated by the court. The concern is that most people are not sure the law can dictate a reasonable amount for living expenses. The reason is that different parts of the country are dramatically different. For example, if you live in the State of California, cost of living is 50% or more than the west coast. The question that has risen is “How can any court dictate ‘reasonable’ living expenses accurately”?
· Assets cannot be shielded by the debtor by moving to Texas or Florida, or buying a high-end home. In other words, if the rich decide to move to a different state such as Florida or Texas as a means of benefiting from a higher state homestead exemption, the new law no longer allows this.
· Auto loans are also a concern under the new bankruptcy law. In this case, the full amount of the auto loan must be paid off or surrendered to repossession, even if the automobile is not worth the amount of outstanding balance. Unfortunately, we have all seen where a great car salesman sells a car with high interest and ridiculously high payments, more than the person can afford. After having the automobile for five or six months, he or she realizes that the payments are more than can be afforded. The only option is to file for bankruptcy. Under the old law, the car would be surrendered and the debt wiped out. Under the new law, the amount of the debt must be paid in full regardless of the balance!
· Renter evictions are also hit by the new bankruptcy law. Now, landlords are able to evict tenants that have fallen victim to bankruptcy much easier. While the old law provided some protection, the new law means if you fall behind on rent payments, you can be evicted quicker and easier.
· Finally, creditors are now permitted to ask the courts to dissolve the established bankruptcy plan if you are late filing your paperwork to include copies of paycheck stubs, tax returns, employment verification, bank statements, and so on.
In summary, the new bankruptcy law has advantages and disadvantages. With the freedom in which credit was issued having increased over the years, as well as contribution to credit card company’s bottom line, changes had to be made. Although some of the new laws seem a bit harsh, the goal is to teach people to be more financially responsible. However, the new laws are also designed to help the people that REALLY need the help, not those just looking for a fast and easy way out. The key to the new bankruptcy law working is all about balance, social and economic balance.
While the changes with the bankruptcy law are certainly not perfect, the bottom line is that they are final. Therefore, reaction will occur but the law will stay. Keep in mind that as debt and the need for solutions continues it is likely that additional amendments will surface some day.
http://www.creditrepaircommando.com/new-bankruptcy-law.html
On October 17, 2005, a new bankruptcy law went into affect as a means of providing more protection for consumers. Officially known as the Bankruptcy Abuse Prevention and Consumer Protection Act, or BAPCPA, this law was signed in by President George Bush, which covers many changes to include debtors being required to pass strict rules to qualify. Through rigid testing, a determination is made whether Chapter 7 or Chapter 13 bankruptcy can be filed.
As you will discover, quite a bit of controversy surrounds this new law and for good reason. People supporting BAPCPA agree that it prohibits debtors who can afford to pay off debts from filing for bankruptcy, thus abusing the system. On the other end of the spectrum are those who do not support BAPCPA. For these individuals, the consensus is that the law is too strict. Regardless, just about everyone agrees that the changes are indeed the most significant law passed in several decades.
Again, opinions about the new bankruptcy conflict and considering the political motives and various viewpoints, it can all seem very confusing. The truth is that using bankruptcy to erase debt is a necessary evil for people who would otherwise have not way to get out of debt, whether from illness, loss of job, family death, and so on. In the past 20 years, the number of bankruptcies has jumped from 280,000 to 1.5 million! In fact, in just the past 10 years, one million people have filed for bankruptcy every year!
The downside to bankruptcy is that for each person unable to pay off debt, means someone else has to pick up the slack, which is the system by which we live. With so much debt and numbers staggering, the bankruptcy reform was designed to prevent the laws meant to help people from being abused. Obviously, bankruptcy in any case should be a last resort since once its done, it will remain on the person’s credit report for the next 10 years, meaning financial power is diminished although not impossible.
The truth is that the benefits that bankruptcy affords in wiping out debt needs to outweigh any negative aspects, which is something any person contemplating this action should consider. For most people, they would rather not file for bankruptcy but in some cases, this action is inevitable. The new bankruptcy law, BAPCPA, most definitely makes it more of a challenge for people who can afford other options out of the financial situation. Below are the changes this new bankruptcy brings:
· During the mandatory 180-day period prior to filing bankruptcy, you would have to go through a special briefing by an approved not-for-profit credit and budget, counseling agency. This agency must provide you with information outlining various counseling services to help you out of the situation. Additionally, this agency must perform a budget analysis. Then, if you were unable to pay for the service, it would be offered to you at no charge.
· Next, for you to qualify for Chapter 7 bankruptcy under the new law, which is the option that gives you a clean slate by wiping out debt, you would have to have an income level below the median income for the same size family living within your state or undergo a bankruptcy means test. This particular test is somewhat complex and considered strict when it comes to expenses. For instance, you would be allowed $1,500 annually per child under age 18 for expenses associated with private education no matter the actual expense.
· If you had an income more than the median income level for the same size family living within your state and you were able to pay a minimum of $6,000 over a five-year period or $100 monthly, then you would be required to file bankruptcy under Chapter 13, which means a portion of your debt would have to be repaid.
· A bankruptcy lawyer is required to certify your financial statement to the court. In fact, the lawyer will now be held financially responsible should any of your statements be false or misleading. Because so much responsibility has now fallen back on the lawyer, you can expect fees for filing bankruptcy to be much higher.
· The cost of filing a Chapter 7 bankruptcy has increased fro $155 to $200 and for Chapter 13 bankruptcy, the cost has decreased from $155 to $150.
For creditors, requirements under the new bankruptcy law have changed as well. These include the following:
· Under the new bankruptcy law, the Federal Reserve Board is required to study the question of, “Is there a connection between credit card debts developed in college with bankruptcies?” With so much research on the issue, a tremendous amount of documentation shows there is indeed a strong connection. The primary problem is that credit card companies swoop down over innocent college students with little money, making it far too easy for them to charge!
· The next change for creditors under this new bankruptcy law is that creditors cannot cancel and must display payback time. In other words, a creditor cannot cancel a credit card if the consumer pays it off. Additionally, the creditor is required to list the amount of time it will take to payoff the balance by the consumer paying only a minimum payment. This means now, a creditor must show that a $5,000 balance at 17% requiring a 2% payment will take a whopping 40 years to pay off!
· Third, bank regulators are now mandated to study whether credit card companies are issuing cards indiscriminately, without consideration to a person’s ability to repay. Credit card companies must also be studies to determine if they are actually key contributors to bankruptcy.
As the debtor, there are a few other requirements to consider in addition to those already mentioned.
· If there were any charges made on a credit card within the first three months after bankruptcy, you would be required to pay them in full.
· The bankruptcy courts have never given much credence to child support but the new law now sets a higher priority on both child support and alimony. With this, your income from child support and/or alimony may now be considered whereas with the old law, it was typically overlooked.
· IRAs are another factor to consider under the new bankruptcy law. Although bankruptcy should protect any money put aside in an education IRA, it also puts a cap on what things can be shielded from creditors in a Roth or other IRA. Interestingly, the cap is $1 million.
While all of these changes bring about great concern for people thinking about filing bankruptcy, other factors in the new law raise even more concern.
· Living expenses can now be dictated by the court. The concern is that most people are not sure the law can dictate a reasonable amount for living expenses. The reason is that different parts of the country are dramatically different. For example, if you live in the State of California, cost of living is 50% or more than the west coast. The question that has risen is “How can any court dictate ‘reasonable’ living expenses accurately”?
· Assets cannot be shielded by the debtor by moving to Texas or Florida, or buying a high-end home. In other words, if the rich decide to move to a different state such as Florida or Texas as a means of benefiting from a higher state homestead exemption, the new law no longer allows this.
· Auto loans are also a concern under the new bankruptcy law. In this case, the full amount of the auto loan must be paid off or surrendered to repossession, even if the automobile is not worth the amount of outstanding balance. Unfortunately, we have all seen where a great car salesman sells a car with high interest and ridiculously high payments, more than the person can afford. After having the automobile for five or six months, he or she realizes that the payments are more than can be afforded. The only option is to file for bankruptcy. Under the old law, the car would be surrendered and the debt wiped out. Under the new law, the amount of the debt must be paid in full regardless of the balance!
· Renter evictions are also hit by the new bankruptcy law. Now, landlords are able to evict tenants that have fallen victim to bankruptcy much easier. While the old law provided some protection, the new law means if you fall behind on rent payments, you can be evicted quicker and easier.
· Finally, creditors are now permitted to ask the courts to dissolve the established bankruptcy plan if you are late filing your paperwork to include copies of paycheck stubs, tax returns, employment verification, bank statements, and so on.
In summary, the new bankruptcy law has advantages and disadvantages. With the freedom in which credit was issued having increased over the years, as well as contribution to credit card company’s bottom line, changes had to be made. Although some of the new laws seem a bit harsh, the goal is to teach people to be more financially responsible. However, the new laws are also designed to help the people that REALLY need the help, not those just looking for a fast and easy way out. The key to the new bankruptcy law working is all about balance, social and economic balance.
While the changes with the bankruptcy law are certainly not perfect, the bottom line is that they are final. Therefore, reaction will occur but the law will stay. Keep in mind that as debt and the need for solutions continues it is likely that additional amendments will surface some day.
http://www.creditrepaircommando.com/new-bankruptcy-law.html
Credit Repair After Bankruptcy
Going through a bankruptcy is a difficult time. Probably the worst aspect is the ten years the bankruptcy will appear on your credit report. However, if you have gone through this process, you need to know that you have options for credit repair after bankruptcy. Although the road will be somewhat challenging, remind yourself that bankruptcy does not have to be a black cloud that looms overheard. In addition, just because the bankruptcy will show up for ten years, you can still do several things during this time to improve your FICO credit score.
You need to look at your bankruptcy as a fresh start, a time of starting over where you can get your financial life back on track. Although the steps to credit repair after bankruptcy are not anything magical, they are sound and they do work. Remember, right now, you need to focus on your financial present, not so much on your credit history. This article will provide you with some great steps to credit repair after bankruptcy so you can rebuild credit to enjoy the things in life you deserve.
Our first step toward credit repair after bankruptcy is to consider joining a credit union. With this, you become a member, a part of the family of the credit union, not just another customer. Then, open both a checking and savings account at the credit union, keeping good record so these accounts will help you rebuild. Then, when you need to buy a home or car, or perhaps take out a personal loan, the credit union would be a much likelier source than a traditional bank.
Another step to credit repair after bankruptcy is to apply for a credit card. In this case, you have two options. First, you could go with a secured card, which means you open a bank-like account and deposit a certain amount of money in it. Whatever this amount is becomes the available credit on your card. In other words, the bank account is collateral. The other option is to choose a credit card designed to help people rebuild credit such as Orchard Bank or Capital One. Although you will pay higher interest, once you have the card and make regular payments on purchases made, your credit score will begin to climb.
Just as there are things you can do for credit repair after bankruptcy, there are also things you should do. For example, you want to avoid getting caught up in the trap of credit repair firms or agencies. These companies are run by scam artists that will ask for a large sum of money upfront, which is illegal, and then do virtually nothing in return. In fact, most of these so-called credit repair companies will suggest you make illegal steps toward credit repair, making the issue far worse.
Keep in mind that when it comes to credit repair after bankruptcy, some companies are legitimate and capable of helping but you will need to ask a lot of questions and check references. In addition, keep reminding yourself that you will get your credit under control. You will have a chance of reestablishing good credit so you can enjoy a sound financial future. However, be patient and work hard. Although you will not be able to start the rebuilding process immediately, it will come. Typically, we recommend you start about two years after the bankruptcy. This time is ideal for applying for a credit card, preferably one without an annual fee, and perhaps a personal loan.
The process for credit repair after bankruptcy is one that requires you to take small, baby steps. Obviously, a lender is not going to say, “Sure, you’re fine now – here’s a $10,000 loan”. You have to work to rebuild the trust of lenders. A simple credit card with a $300 credit line with payments made on time each month will do wonders for your credit score. As creditors notice you making payments on time and maintaining a workable and acceptable balance, they will begin to increase your credit line and be more willing to extend credit. Soon, you will again be considered a strong candidate for credit!
http://www.creditrepaircommando.com/creit-repair-after-bankruptcy.html
You need to look at your bankruptcy as a fresh start, a time of starting over where you can get your financial life back on track. Although the steps to credit repair after bankruptcy are not anything magical, they are sound and they do work. Remember, right now, you need to focus on your financial present, not so much on your credit history. This article will provide you with some great steps to credit repair after bankruptcy so you can rebuild credit to enjoy the things in life you deserve.
Our first step toward credit repair after bankruptcy is to consider joining a credit union. With this, you become a member, a part of the family of the credit union, not just another customer. Then, open both a checking and savings account at the credit union, keeping good record so these accounts will help you rebuild. Then, when you need to buy a home or car, or perhaps take out a personal loan, the credit union would be a much likelier source than a traditional bank.
Another step to credit repair after bankruptcy is to apply for a credit card. In this case, you have two options. First, you could go with a secured card, which means you open a bank-like account and deposit a certain amount of money in it. Whatever this amount is becomes the available credit on your card. In other words, the bank account is collateral. The other option is to choose a credit card designed to help people rebuild credit such as Orchard Bank or Capital One. Although you will pay higher interest, once you have the card and make regular payments on purchases made, your credit score will begin to climb.
Just as there are things you can do for credit repair after bankruptcy, there are also things you should do. For example, you want to avoid getting caught up in the trap of credit repair firms or agencies. These companies are run by scam artists that will ask for a large sum of money upfront, which is illegal, and then do virtually nothing in return. In fact, most of these so-called credit repair companies will suggest you make illegal steps toward credit repair, making the issue far worse.
Keep in mind that when it comes to credit repair after bankruptcy, some companies are legitimate and capable of helping but you will need to ask a lot of questions and check references. In addition, keep reminding yourself that you will get your credit under control. You will have a chance of reestablishing good credit so you can enjoy a sound financial future. However, be patient and work hard. Although you will not be able to start the rebuilding process immediately, it will come. Typically, we recommend you start about two years after the bankruptcy. This time is ideal for applying for a credit card, preferably one without an annual fee, and perhaps a personal loan.
The process for credit repair after bankruptcy is one that requires you to take small, baby steps. Obviously, a lender is not going to say, “Sure, you’re fine now – here’s a $10,000 loan”. You have to work to rebuild the trust of lenders. A simple credit card with a $300 credit line with payments made on time each month will do wonders for your credit score. As creditors notice you making payments on time and maintaining a workable and acceptable balance, they will begin to increase your credit line and be more willing to extend credit. Soon, you will again be considered a strong candidate for credit!
http://www.creditrepaircommando.com/creit-repair-after-bankruptcy.html
MEETING WITH A BANKRUPTCY LAWYER OR ATTORNEY
Your initial meeting with a Bankruptcy Lawyer or Bankruptcy Attorney, should give the Lawyer an opportunity to assess your financial situation, your goals, and the options available to you. You should feel that you can communicate well with the Bankruptcy Attorney or Bankruptcy Attorney and have confidence that your matters are handled with competence and care. Ask the Lawyer how much of his or her practice involves Bankruptcy Law and what portion of the Bankruptcy cases are similar to yours. Note whether the Bankruptcy Attorney answers your questions and explains matters in a manner you can understand. Do you feel comfortable asking the Bankruptcy Lawyer or Bankruptcy Attorney to further clarify matters? Filing Bankruptcy is stressful enough without having to wonder if you understand what is happening.
Review the pricing structure of the Attorney services. Most Bankruptcies are done for a flat fee. Ask the Attorney what costs there are in addition the flat fee, and get the arrangement in writing.
MAIN CHANGES TO NEW BANKRUPTCY LAW
foreclose mortgage refinancing common questions legal information filing debt problems debt consolidation creditor trustee bankruptcy lawyers law firms new port richey hillsborough pinellas county pasco polk countiesThe Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took effect on October 17, 2005. There are numerous changes that came about as a result of the new bankruptcy law:
Mandatory Credit Counseling
Anyone filing for bankruptcy must now undergo credit counseling and receive a credit counseling certificate through a program approved by the Department of Justice. Generally, you need this certificate at least 24 hours before filing bankruptcy. Therefore, especially if you are facing a foreclosure, make sure you obtain this certificate promptly.
Stricter Eligibility for Chapter 7 Filing
Under the new law, bankruptcy applicants who wish to file Chapter 7 bankruptcy must meet eligibility requirements under a “means test”. Under the means test, if your current monthly income is less than the median income in your state, you can file for Chapter 7 bankruptcy. This median income figure changes constantly, but our bankruptcy attorneys or bankruptcy lawyers can advise you of the current figures. If your current monthly income is above the median income and you can afford to pay $100 per month towards your debt (or $6,575 over a five year period), then you must file Chapter 13 bankruptcy.
Tax Returns and Proof of Income Required
In order to file either Chapter 7 bankruptcy or Chapter 13 bankruptcy, we must show, at a minimum, the last two years tax returns and proof of income for the last six months.
Fewer Automatic Stay Protections
People who file bankruptcy have generally been entitled to certain immediate protections from creditors, including most debt collection and lawsuit actions. This is called the Automatic Stay because creditors are automatically stayed or prevented from making collection efforts. Under the new bankruptcy law, some protections have been eliminated. Filing for bankruptcy no longer stops evictions, drivers license suspensions, actions for child support or divorce proceedings.
Priority Status for Unpaid Child Support and Alimony
Under the new bankruptcy law, persons owed unpaid child support and alimony take priority over other creditors. In a Chapter 13 bankruptcy, this means these persons are paid before any other creditor.
Mandatory Financial Management Education
At the conclusion of bankruptcy proceedings, but before any debt can be discharged, bankruptcy debtors must participate in an approved financial management education program. This can be completed by phone or on-line.
RE-ESTABLISHING CREDIT
One of the most commonly asked questions we receive is bow will filing bankruptcy affect my credit and what can I do to improve my credit after bankruptcy. After filing bankruptcy your credit rating could be affected, depending upon how bad or good your credit rating was before filing, but there are things you can do re-establish your credit. Here is a checklist of things to do after bankruptcy:
1. Employment-A steady work history, even part-time work, will help re-establish credit
2. Pull a credit report and make sure it accurately reflects the debts you included in the Bankruptcy. We provide a Credit Repair Service. It is not expensive and will improve your credit.
3. Apply for a secured credit card (if you are not eligible for an unsecured credit card) And make regular payments. You need to show a history, usually of about 18 months, of making on-time payments.
4. Open a savings account and make regular deposits. Do not bounce any checks.
5. Make sure that you make your house and automobile payments are paid on time if you retained these items after you filed bankruptcy.
6. If you apply for a credit card or loan to re-establish credit, make sure the organization reports these transactions to the credit bureau because not all organizations do so.
If you are interested in re-establishing your credit, please schedule an appointment to meet with one of our Bankruptcy Lawyers or Bankruptcy Attorneys who can further advise you on how to re-establish your credit after the bankruptcy.
http://www.jayweller.com/bankruptcy.htm#bankruptcy_lawyers
Review the pricing structure of the Attorney services. Most Bankruptcies are done for a flat fee. Ask the Attorney what costs there are in addition the flat fee, and get the arrangement in writing.
MAIN CHANGES TO NEW BANKRUPTCY LAW
foreclose mortgage refinancing common questions legal information filing debt problems debt consolidation creditor trustee bankruptcy lawyers law firms new port richey hillsborough pinellas county pasco polk countiesThe Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took effect on October 17, 2005. There are numerous changes that came about as a result of the new bankruptcy law:
Mandatory Credit Counseling
Anyone filing for bankruptcy must now undergo credit counseling and receive a credit counseling certificate through a program approved by the Department of Justice. Generally, you need this certificate at least 24 hours before filing bankruptcy. Therefore, especially if you are facing a foreclosure, make sure you obtain this certificate promptly.
Stricter Eligibility for Chapter 7 Filing
Under the new law, bankruptcy applicants who wish to file Chapter 7 bankruptcy must meet eligibility requirements under a “means test”. Under the means test, if your current monthly income is less than the median income in your state, you can file for Chapter 7 bankruptcy. This median income figure changes constantly, but our bankruptcy attorneys or bankruptcy lawyers can advise you of the current figures. If your current monthly income is above the median income and you can afford to pay $100 per month towards your debt (or $6,575 over a five year period), then you must file Chapter 13 bankruptcy.
Tax Returns and Proof of Income Required
In order to file either Chapter 7 bankruptcy or Chapter 13 bankruptcy, we must show, at a minimum, the last two years tax returns and proof of income for the last six months.
Fewer Automatic Stay Protections
People who file bankruptcy have generally been entitled to certain immediate protections from creditors, including most debt collection and lawsuit actions. This is called the Automatic Stay because creditors are automatically stayed or prevented from making collection efforts. Under the new bankruptcy law, some protections have been eliminated. Filing for bankruptcy no longer stops evictions, drivers license suspensions, actions for child support or divorce proceedings.
Priority Status for Unpaid Child Support and Alimony
Under the new bankruptcy law, persons owed unpaid child support and alimony take priority over other creditors. In a Chapter 13 bankruptcy, this means these persons are paid before any other creditor.
Mandatory Financial Management Education
At the conclusion of bankruptcy proceedings, but before any debt can be discharged, bankruptcy debtors must participate in an approved financial management education program. This can be completed by phone or on-line.
RE-ESTABLISHING CREDIT
One of the most commonly asked questions we receive is bow will filing bankruptcy affect my credit and what can I do to improve my credit after bankruptcy. After filing bankruptcy your credit rating could be affected, depending upon how bad or good your credit rating was before filing, but there are things you can do re-establish your credit. Here is a checklist of things to do after bankruptcy:
1. Employment-A steady work history, even part-time work, will help re-establish credit
2. Pull a credit report and make sure it accurately reflects the debts you included in the Bankruptcy. We provide a Credit Repair Service. It is not expensive and will improve your credit.
3. Apply for a secured credit card (if you are not eligible for an unsecured credit card) And make regular payments. You need to show a history, usually of about 18 months, of making on-time payments.
4. Open a savings account and make regular deposits. Do not bounce any checks.
5. Make sure that you make your house and automobile payments are paid on time if you retained these items after you filed bankruptcy.
6. If you apply for a credit card or loan to re-establish credit, make sure the organization reports these transactions to the credit bureau because not all organizations do so.
If you are interested in re-establishing your credit, please schedule an appointment to meet with one of our Bankruptcy Lawyers or Bankruptcy Attorneys who can further advise you on how to re-establish your credit after the bankruptcy.
http://www.jayweller.com/bankruptcy.htm#bankruptcy_lawyers
Monday, August 27, 2007
What Can a Creditor Do When a Chapter 7 or 13 Bankruptcy Is Filed?
Bankruptcy is designed to protect both the debtor and the creditor. There are powerful tools in the Bankruptcy Code to assist a creditor and protect their rights. Creditor's Rights is a legal term used to describe a lawyer's specialized practice area focused on the collection of debts on behalf of creditors.
Attorneys who practice in the area of "Creditor's Rights" will perform one or all of the following:
* Filing lawsuits and using other legal collection techniques to collect consumer debts (i.e. debts owed by individuals).
*
Filing lawsuits and using other legal collection techniques to collect commercial debts (i.e. debts owed by businesses).
* Representing a creditor's interests in a bankruptcy proceeding.
* Foreclosure or trustee’s sale of real estate if the purchaser defaults on payment
* Recovery of secured goods (e.g. automobiles) if the purchaser defaults on payment
GENERAL:
◙ Now that a bankruptcy has been filed what do I do first?
◙ Do I receive notice of the Bankruptcy?
◙ Do your homework
◙ Important Deadlines and Timeline for chapter 7 and 13 cases.
◙ What is a proof of claim and why should I file one?
◙ What is a creditor's meeting?
◙ What if I am owed alimony/maintenance or child support?
◙ How can I complete my trustee's sale/foreclosure?
◙ What if I am a landlord?
◙ How does the creditor ask the debtor questions?
◙ Can I object to the discharge of my debt?
◙ What is a reaffirmation agreement?
GENERAL:
Now that a bankruptcy has been filed what do I do first? Order a copy of the debtor’s bankruptcy schedules or check with the clerk’s office to verify that your name and debt has been listed to ensure receipt of notices. This should be done at the Bankruptcy Court where the case was filed. A creditor should review the schedules filed by the debtor, noting whether the creditor's claim (what is owing to the creditor) was properly designated as secured or unsecured and listed in the accurate amount. It should also be noted whether the debtor disputes the claim or lists it as un-liquidated or contingent. Any errors can be rectified by filing a proof of claim, if a claim was not listed on the debtor’s schedules, the creditor must file a proof of claim by the court deadline or the claim will be disallowed and the creditor will not receive any monies if there is to be a distribution of funds.
Do I receive notice of the Bankruptcy? Section 342 requires that all creditors receive notice of the bankruptcy in order for the full restraining action of the automatic stay to become effective. The debtor is to list all addresses provided by the creditor within the 90 days before the bankruptcy was filed, and/or any other address used by the creditor in another bankruptcy. Section 342(c) Again, this is new law and I would not advise the creditor to ignore any notice, written or otherwise. Once the creditor receives notice of the bankruptcy they must cease all attempts to contact the debtor or seize property, without obtain permission from the bankruptcy Court. There are monetary penalty for ignoring this prohibition. Section 343(g) and 362(k).
Do your homework. Carefully check all of the loan and security documents to ensure that they are complete and that all necessary steps have been taken to perfect liens on any collateral securing the obligation. This step is extremely important and will determine the strength of a secured creditor’s position in the case. Section 506 describes how the value of a secured claim is determined. Although curing deficiencies post-petition may be a violation of the automatic stay, nevertheless it is essential to be aware of any problems. Section 547(c)(3) & (e) gives the secured creditor no more than 30 days after the debtor receives possession of property or transfer is made to perfect the creditor's lien.
What is a proof of claim and why should I file one? File a proof of claim. It is the creditor’s proof of claim that will govern unless specifically objected to by the debtor.
In a Chapter 7 no-asset case, proofs of claim need not be filed. There will not be any distribution of funds to any unsecured creditors. A no-asset is a case where all the assets of the Debtor were protected by law (exemption property). The majority of all chapter 7 cases involving individuals are no-asset cases.
In all other Chapter 7 cases and Chapter 13 cases, a creditor must always file a proof of claim to participate in any distribution.
In a Chapter 11 case a proof of claim is not required if the claim is accurately listed in the schedules and is not scheduled as disputed, contingent or un-liquidated.
What is a creditor's meeting? Shortly after a bankruptcy is filed, creditors will receive notice of an initial meeting of creditors (Section 341, Meeting of Creditors) to be held at the Office of the United States Trustee. You may attend the Section 341, Meeting of Creditors, but are not required. This meeting provides the creditor a opportunity to ask the debtor a few questions regarding its claim, its collateral, other claims against the debtor, the debtor’s plans for its bankruptcy case and any other aspects of its financial affairs. This is not an opportunity to interrogate the Debtor. This is a good time to reveal to the Trustee (the person conducting the meeting) any inconsistencies the creditor has discovered in the schedules. Make sure to be able to support any statements. Either the creditor or its counsel can attend the meeting. To Top Of Page
What if I am owed alimony/maintenance or child support? The 2005 changes to the Bankruptcy Code greatly favor anyone owed child support or alimony/maintenance (called "domestic support obligations" or "DSO"). There is no automatic stay on the collection of any DSOs from property that is not property of the estate 362(b)(2)(B). Also, the legislative history of the new law and Section Section 522(c)(1) makes it clear that all property owned by the debtor can be liquidated to pay DSO debt. The Bankruptcy Trustee even has obligations to the DSO claimant. Section 704(c).
How can I complete my trustee's sale/foreclosure? If a creditor wants its collateral out of the bankruptcy completely a Motion for Relief from the Automatic Stay should be filed early in the case, forcing the debtor to deal with the problem head on. Normally a hearing is scheduled in approximately 30 days on “lift stay” motions. Without an Order lifting the stay the creditor is prohibited from completing their trustee's sale or foreclosure.
What if I am a landlord? (1) Residential real property or personal property: Chapter 7 - The debtor/trustee has 60 days from filing the bankruptcy to either accept or reject the lease. If the lease is accepted then rents must be brought current. Section 365(p(2) If the lease is not accepted within within the 60 days then it is automatically deemed rejected. Unfortunately, despite the fact that the lease has expired the landlord still cannot take any action against the debtor or his personal property without filing a motion for relief. Therefore, it is wise in a lease to file a motion for relief immediately upon the debtor filing their bankruptcy. Chapter 11, 12 or 13 - trustee/debtor may assume or reject lease at any time before the confirmation of the Plan Section 365(d)(2) and 365(p)(3)
(2) Non-residential real property - trustee must assume within 120 days of the filing of the bankruptcy or order confirming Plan, court can extend for additional 90 days. Section 365(d)(4). See 503(b)(5) previously assume lease, then rejected - possible administrative claim.
* Section 362(b)(22) indicates that there is no automatic stay, so long as the landlord obtained a judgment for possession of residential property prior to the filing of the bankruptcy.
* Section 362(c)(3)(A) indicates that the automatic stay may terminate 30 days after filing the bankruptcy with respect to any lease, if that debtor had a prior bankruptcy (7, 1 or 13) pending in the last 12 months.
* Section 362(c)(4)(A)(i) No automatic stay if debtor filed two or more cases in last 12 months.
* Beware - this is new law and may "bite the landlord in the a_ _". Until the law is settled I highly recommend obtaining a comfort order as described in 362(j).
* The landlord may not use the filing of a bankruptcy as grounds for terminating a least 365(e)(1)
* Trustee may assign the lease, despite non-assignment clauses Section 365(f).
How does the creditor ask the debtor questions? You can ask the debtor questions at the creditors meeting (see above), or Bankruptcy Rule 2004 permits a creditor to take the deposition of the debtor and inquire into all aspects of its financial affairs. The scope of the examination is broad and should be taken advantage of to obtain information.
Can I object to the discharge of my debt? Look for a basis to object to the discharge of a particular debt under Sections 523 or 727. Creditors have only 60 days from the date of the initial meeting of creditors to file suit to declare their debts non-dischargeable on the basis of a false financial statement. It is very difficult for a creditor to win a non-dischargeable case and normally the creditor will not receive its attorney's fees/costs for bringing the action.
What is a reaffirmation agreement? After a bankruptcy is filed, but before the discharge is entered, the secured creditor, or landlord, could request the debtor sign a new contract "reaffirmation agreement". This new contract has the exact terms as the original, Section 524(c) and (k) delineates several documents, disclosures and procedures that must be followed by the creditor in obtaining this new contract. It must be approved by the Court in order to be binding on the debtor. It is most likely no debtor's attorney will sign the reaffirmation agreement because 524(k)(5)(B) requires that the debtor's attorney certify that the debtor will be able to make the payments. This is not only ludicrous, but how could anyone certified anyone else's ability to pay a future debt. This is also new law and few, if any, creditors will be able to follow the complicated procedures.
http://www.dianedrain.com/Bankruptcy/BankruptcyArticles/BKArticlesCreditorInfo.htm
Attorneys who practice in the area of "Creditor's Rights" will perform one or all of the following:
* Filing lawsuits and using other legal collection techniques to collect consumer debts (i.e. debts owed by individuals).
*
Filing lawsuits and using other legal collection techniques to collect commercial debts (i.e. debts owed by businesses).
* Representing a creditor's interests in a bankruptcy proceeding.
* Foreclosure or trustee’s sale of real estate if the purchaser defaults on payment
* Recovery of secured goods (e.g. automobiles) if the purchaser defaults on payment
GENERAL:
◙ Now that a bankruptcy has been filed what do I do first?
◙ Do I receive notice of the Bankruptcy?
◙ Do your homework
◙ Important Deadlines and Timeline for chapter 7 and 13 cases.
◙ What is a proof of claim and why should I file one?
◙ What is a creditor's meeting?
◙ What if I am owed alimony/maintenance or child support?
◙ How can I complete my trustee's sale/foreclosure?
◙ What if I am a landlord?
◙ How does the creditor ask the debtor questions?
◙ Can I object to the discharge of my debt?
◙ What is a reaffirmation agreement?
GENERAL:
Now that a bankruptcy has been filed what do I do first? Order a copy of the debtor’s bankruptcy schedules or check with the clerk’s office to verify that your name and debt has been listed to ensure receipt of notices. This should be done at the Bankruptcy Court where the case was filed. A creditor should review the schedules filed by the debtor, noting whether the creditor's claim (what is owing to the creditor) was properly designated as secured or unsecured and listed in the accurate amount. It should also be noted whether the debtor disputes the claim or lists it as un-liquidated or contingent. Any errors can be rectified by filing a proof of claim, if a claim was not listed on the debtor’s schedules, the creditor must file a proof of claim by the court deadline or the claim will be disallowed and the creditor will not receive any monies if there is to be a distribution of funds.
Do I receive notice of the Bankruptcy? Section 342 requires that all creditors receive notice of the bankruptcy in order for the full restraining action of the automatic stay to become effective. The debtor is to list all addresses provided by the creditor within the 90 days before the bankruptcy was filed, and/or any other address used by the creditor in another bankruptcy. Section 342(c) Again, this is new law and I would not advise the creditor to ignore any notice, written or otherwise. Once the creditor receives notice of the bankruptcy they must cease all attempts to contact the debtor or seize property, without obtain permission from the bankruptcy Court. There are monetary penalty for ignoring this prohibition. Section 343(g) and 362(k).
Do your homework. Carefully check all of the loan and security documents to ensure that they are complete and that all necessary steps have been taken to perfect liens on any collateral securing the obligation. This step is extremely important and will determine the strength of a secured creditor’s position in the case. Section 506 describes how the value of a secured claim is determined. Although curing deficiencies post-petition may be a violation of the automatic stay, nevertheless it is essential to be aware of any problems. Section 547(c)(3) & (e) gives the secured creditor no more than 30 days after the debtor receives possession of property or transfer is made to perfect the creditor's lien.
What is a proof of claim and why should I file one? File a proof of claim. It is the creditor’s proof of claim that will govern unless specifically objected to by the debtor.
In a Chapter 7 no-asset case, proofs of claim need not be filed. There will not be any distribution of funds to any unsecured creditors. A no-asset is a case where all the assets of the Debtor were protected by law (exemption property). The majority of all chapter 7 cases involving individuals are no-asset cases.
In all other Chapter 7 cases and Chapter 13 cases, a creditor must always file a proof of claim to participate in any distribution.
In a Chapter 11 case a proof of claim is not required if the claim is accurately listed in the schedules and is not scheduled as disputed, contingent or un-liquidated.
What is a creditor's meeting? Shortly after a bankruptcy is filed, creditors will receive notice of an initial meeting of creditors (Section 341, Meeting of Creditors) to be held at the Office of the United States Trustee. You may attend the Section 341, Meeting of Creditors, but are not required. This meeting provides the creditor a opportunity to ask the debtor a few questions regarding its claim, its collateral, other claims against the debtor, the debtor’s plans for its bankruptcy case and any other aspects of its financial affairs. This is not an opportunity to interrogate the Debtor. This is a good time to reveal to the Trustee (the person conducting the meeting) any inconsistencies the creditor has discovered in the schedules. Make sure to be able to support any statements. Either the creditor or its counsel can attend the meeting. To Top Of Page
What if I am owed alimony/maintenance or child support? The 2005 changes to the Bankruptcy Code greatly favor anyone owed child support or alimony/maintenance (called "domestic support obligations" or "DSO"). There is no automatic stay on the collection of any DSOs from property that is not property of the estate 362(b)(2)(B). Also, the legislative history of the new law and Section Section 522(c)(1) makes it clear that all property owned by the debtor can be liquidated to pay DSO debt. The Bankruptcy Trustee even has obligations to the DSO claimant. Section 704(c).
How can I complete my trustee's sale/foreclosure? If a creditor wants its collateral out of the bankruptcy completely a Motion for Relief from the Automatic Stay should be filed early in the case, forcing the debtor to deal with the problem head on. Normally a hearing is scheduled in approximately 30 days on “lift stay” motions. Without an Order lifting the stay the creditor is prohibited from completing their trustee's sale or foreclosure.
What if I am a landlord? (1) Residential real property or personal property: Chapter 7 - The debtor/trustee has 60 days from filing the bankruptcy to either accept or reject the lease. If the lease is accepted then rents must be brought current. Section 365(p(2) If the lease is not accepted within within the 60 days then it is automatically deemed rejected. Unfortunately, despite the fact that the lease has expired the landlord still cannot take any action against the debtor or his personal property without filing a motion for relief. Therefore, it is wise in a lease to file a motion for relief immediately upon the debtor filing their bankruptcy. Chapter 11, 12 or 13 - trustee/debtor may assume or reject lease at any time before the confirmation of the Plan Section 365(d)(2) and 365(p)(3)
(2) Non-residential real property - trustee must assume within 120 days of the filing of the bankruptcy or order confirming Plan, court can extend for additional 90 days. Section 365(d)(4). See 503(b)(5) previously assume lease, then rejected - possible administrative claim.
* Section 362(b)(22) indicates that there is no automatic stay, so long as the landlord obtained a judgment for possession of residential property prior to the filing of the bankruptcy.
* Section 362(c)(3)(A) indicates that the automatic stay may terminate 30 days after filing the bankruptcy with respect to any lease, if that debtor had a prior bankruptcy (7, 1 or 13) pending in the last 12 months.
* Section 362(c)(4)(A)(i) No automatic stay if debtor filed two or more cases in last 12 months.
* Beware - this is new law and may "bite the landlord in the a_ _". Until the law is settled I highly recommend obtaining a comfort order as described in 362(j).
* The landlord may not use the filing of a bankruptcy as grounds for terminating a least 365(e)(1)
* Trustee may assign the lease, despite non-assignment clauses Section 365(f).
How does the creditor ask the debtor questions? You can ask the debtor questions at the creditors meeting (see above), or Bankruptcy Rule 2004 permits a creditor to take the deposition of the debtor and inquire into all aspects of its financial affairs. The scope of the examination is broad and should be taken advantage of to obtain information.
Can I object to the discharge of my debt? Look for a basis to object to the discharge of a particular debt under Sections 523 or 727. Creditors have only 60 days from the date of the initial meeting of creditors to file suit to declare their debts non-dischargeable on the basis of a false financial statement. It is very difficult for a creditor to win a non-dischargeable case and normally the creditor will not receive its attorney's fees/costs for bringing the action.
What is a reaffirmation agreement? After a bankruptcy is filed, but before the discharge is entered, the secured creditor, or landlord, could request the debtor sign a new contract "reaffirmation agreement". This new contract has the exact terms as the original, Section 524(c) and (k) delineates several documents, disclosures and procedures that must be followed by the creditor in obtaining this new contract. It must be approved by the Court in order to be binding on the debtor. It is most likely no debtor's attorney will sign the reaffirmation agreement because 524(k)(5)(B) requires that the debtor's attorney certify that the debtor will be able to make the payments. This is not only ludicrous, but how could anyone certified anyone else's ability to pay a future debt. This is also new law and few, if any, creditors will be able to follow the complicated procedures.
http://www.dianedrain.com/Bankruptcy/BankruptcyArticles/BKArticlesCreditorInfo.htm
Saturday, August 25, 2007
Nevada Bankruptcy, Following the Rules
Before filing for Nevada bankruptcy, people must find out what bankruptcy means and what consequences there will be.
The Nevada bankruptcy system has the following definition for bankruptcy: it is a business or person’s legally declared inability to pay off their debts. Although the Nevada bankruptcy court may be considered as a last legal resort, sometimes it is necessary and can also mean the only way out for a person or business. This means that by filing for Nevada bankruptcy, someone can continue living his financial life whenever there’s a financial setback of any kind.
Facing your life after filing for Nevada bankruptcy is not an easy task. It always gets a lot harder before getting any easier. We, as a professional bankruptcy counseling company, always suggest people think twice before making this final decision.
Angela Anderson, former client of Personal Bankruptcy Avoidance, had to file for Nevada bankruptcy 4 years ago. We went through the bankruptcy process with her and also gave her advice on how to recover after the process ended.
Angela Anderson:
How does Nevada bankruptcy work?
Martin Rogers:
Nevada bankruptcy as a federal court process has 2 different kinds of proceedings: liquidation known as number 7 or by reorganization known as numbers 11, 12 and 13.
The first one, number 7, is the most recognized Nevada bankruptcy proceeding.
This process is used to get rid of all or part of an accumulated debt and to give the person a relief from financial breakdown.
A professional counselor will guide you through the process and will help you explore other options before filing for bankruptcy because sometimes debt relief programs can make a difference.
Angela Anderson:
If I file for Nevada bankruptcy, can I save my house?
Martin Rogers:
While Nevada bankruptcy is designed for specific purposes such as withdrawing from the program at any time during the collection process and stopping all harassment activity from letters to collection calls almost immediately; you can save your house by following some basic rules. First, a debtor has to receive 180 days of counseling from a non-profit credit counseling company before filing Nevada bankruptcy. Even though collection companies may have stopped contacting the client, they can still continue the collection process and can even serve the debtor with foreclosure papers. Meaning that you could end up losing your house even if you follow the procedure and hire your own lawyer. The Nevada bankruptcy trick lies in the timing of filing for bankruptcy be very careful and plan your filing.
Angela Anderson:
Is there a legal way to avoid Nevada bankruptcy?
Martin Rogers:
Of course. On my previous articles, I have stated the importance of thinking filing Nevada bankruptcy or any other bankruptcy system through. People need to see beyond all this and start looking for new debt relief options.
In conclusion, it is up to the debtors or the future clients to educate and brace themselves for worse-case scenarios. The Nevada bankruptcy system may be easy to grasp, but it is important to keep the consequences in mind. Applying in the Personal Bankruptcy Avoidance program is an excellent way of facing your debt problems once and for all. The program can also be used as training ground to avoid similar situations in the future. It surely will teach homeowners how to protect themselves under the new bankruptcy law. Most Americans do not have health or disability insurance and are vulnerable to work layoffs because of a stagnant economy.
We have different articles of interesting topics and current and former clients’ experiences with our programs. Take a look at the different situations on debt related topics such as the Nevada bankruptcy process and learn how to keep yourself a debt free person.
Avoid Nevada bankruptcy and become debt free once more. If at the end of this process you do not feel filing for bankruptcy is inevitable, remember to seek professional counseling.
Check these links to learn more:
http://www.personal-bankruptcy-avoidance.com/Bankruptcy/NV-Nevada/Bankruptcy-NV-Nevada.shtml
http://www.personal-bankruptcy-avoidance.com/Bankruptcy/NV-Nevada/Bankruptcy-NV-Nevada-form.shtml
Martin Rogers is a contributing writer to http://www.personal-bankruptcy-avoidance.com and is currently writing some special articles to guide business on how to manage debt and avoid bankruptcy. For Free information on the Nevada Bankruptcy Information, call toll-free 1-877-850-3328
http://www.buzzle.com/articles/nevada-bankruptcy-following-rules.html
The Nevada bankruptcy system has the following definition for bankruptcy: it is a business or person’s legally declared inability to pay off their debts. Although the Nevada bankruptcy court may be considered as a last legal resort, sometimes it is necessary and can also mean the only way out for a person or business. This means that by filing for Nevada bankruptcy, someone can continue living his financial life whenever there’s a financial setback of any kind.
Facing your life after filing for Nevada bankruptcy is not an easy task. It always gets a lot harder before getting any easier. We, as a professional bankruptcy counseling company, always suggest people think twice before making this final decision.
Angela Anderson, former client of Personal Bankruptcy Avoidance, had to file for Nevada bankruptcy 4 years ago. We went through the bankruptcy process with her and also gave her advice on how to recover after the process ended.
Angela Anderson:
How does Nevada bankruptcy work?
Martin Rogers:
Nevada bankruptcy as a federal court process has 2 different kinds of proceedings: liquidation known as number 7 or by reorganization known as numbers 11, 12 and 13.
The first one, number 7, is the most recognized Nevada bankruptcy proceeding.
This process is used to get rid of all or part of an accumulated debt and to give the person a relief from financial breakdown.
A professional counselor will guide you through the process and will help you explore other options before filing for bankruptcy because sometimes debt relief programs can make a difference.
Angela Anderson:
If I file for Nevada bankruptcy, can I save my house?
Martin Rogers:
While Nevada bankruptcy is designed for specific purposes such as withdrawing from the program at any time during the collection process and stopping all harassment activity from letters to collection calls almost immediately; you can save your house by following some basic rules. First, a debtor has to receive 180 days of counseling from a non-profit credit counseling company before filing Nevada bankruptcy. Even though collection companies may have stopped contacting the client, they can still continue the collection process and can even serve the debtor with foreclosure papers. Meaning that you could end up losing your house even if you follow the procedure and hire your own lawyer. The Nevada bankruptcy trick lies in the timing of filing for bankruptcy be very careful and plan your filing.
Angela Anderson:
Is there a legal way to avoid Nevada bankruptcy?
Martin Rogers:
Of course. On my previous articles, I have stated the importance of thinking filing Nevada bankruptcy or any other bankruptcy system through. People need to see beyond all this and start looking for new debt relief options.
In conclusion, it is up to the debtors or the future clients to educate and brace themselves for worse-case scenarios. The Nevada bankruptcy system may be easy to grasp, but it is important to keep the consequences in mind. Applying in the Personal Bankruptcy Avoidance program is an excellent way of facing your debt problems once and for all. The program can also be used as training ground to avoid similar situations in the future. It surely will teach homeowners how to protect themselves under the new bankruptcy law. Most Americans do not have health or disability insurance and are vulnerable to work layoffs because of a stagnant economy.
We have different articles of interesting topics and current and former clients’ experiences with our programs. Take a look at the different situations on debt related topics such as the Nevada bankruptcy process and learn how to keep yourself a debt free person.
Avoid Nevada bankruptcy and become debt free once more. If at the end of this process you do not feel filing for bankruptcy is inevitable, remember to seek professional counseling.
Check these links to learn more:
http://www.personal-bankruptcy-avoidance.com/Bankruptcy/NV-Nevada/Bankruptcy-NV-Nevada.shtml
http://www.personal-bankruptcy-avoidance.com/Bankruptcy/NV-Nevada/Bankruptcy-NV-Nevada-form.shtml
Martin Rogers is a contributing writer to http://www.personal-bankruptcy-avoidance.com and is currently writing some special articles to guide business on how to manage debt and avoid bankruptcy. For Free information on the Nevada Bankruptcy Information, call toll-free 1-877-850-3328
http://www.buzzle.com/articles/nevada-bankruptcy-following-rules.html
Business Bankruptcy, Saving Your Company
Business bankruptcy is a situation in which a business organization has more liabilities than assets and is no longer capable of meeting its financial obligations. Any type of business can file for business bankruptcy.
Business bankruptcy can provide relief to the business owners who are overwhelmed with credit problems and cannot find any other way out of debt. However, business owners must also face the fact of losing one’s business and damaging one’s credit standing and endure embarrassment is a possibility. There is not much stigma attached to Business Bankruptcy because it is, in fact, used by many businesses to restructure their companies.
Though Business Bankruptcy may seem different from personal bankruptcy, they both target the same goal: a way out when all possible solutions fail to alleviate the current situation.
When a business or a company is on the verge of forfeiting payments on a debt, it is the sign for an owner or manager to know that the time has come to file for business bankruptcy.
Are there any differences between the different business bankruptcy types?
There are 2 main types of business bankruptcy: chapter 7 and chapter 13, but the latter has more advantages than the former because it is federal bankruptcy, and the law does not require the liquidation of the business itself. As an alternative, the company will have to fulfill paying the debt according to the agreement with the creditors. The company has the chance to recover from the debts and can make profits again. But any decision-making has to be pre- approved by the federal court as the business bankruptcy law stipulates.
Brandon O'Brien is the current manager of a company that filed for bankruptcy after following our professional advice and is currently following making his compulsory payments. Business bankruptcy has helped him regain the company’s financial control and has given him a new way of dealing with the debt problems the company has carried for many years and has not yet solved them.
Brandon O'Brien:
What should I do after filing for Chapter 11 Business Bankruptcy?
James Banks:
Chapter 11 Business Bankruptcy allows the company to keep its assets. Nevertheless it is recommended some bonds be liquidated in order to pay off part of the debt. The amount can be reduced, and the payment will not be too high; allowing the company to generate profit after all. Regardless of what method you use to reduce the debt, the manager of the company has to regularly report to the federal court any decision made in the company.
Brandon O'Brien:
So, after filing for Business Bankruptcy, do the lawyers take care of everything?
James Banks:
Do not believe that by filing for Business Bankruptcy your financial situation will be resolved. You, as the manager will have to make sure that the company has enough cash to endure the whole filing process, and we recommend that you follow a plan in order to avoid any type of delay during the case.
One way to take care of creditors once and for all is to put them all together and set up a plan to start the repayment process. The debt will be reduced, and the creditors will see you are in the process of paying them. This creates trust and understanding as to why you file for bankruptcy.
Remember, filing for Business Bankruptcy is a serious decision, and one that should only be considered when all other options have been tried. It would be wise to seek advice from a financial and legal professional before making any sudden decisions.
We have different articles of interesting topics and current and former clients’ experiences with our programs. Take a look at topics related to Business Bankruptcy, situations in which people can fall into and how to keep yourself a debt free person.
http://www.buzzle.com/articles/business-bankruptcy-saving-company.html
Business bankruptcy can provide relief to the business owners who are overwhelmed with credit problems and cannot find any other way out of debt. However, business owners must also face the fact of losing one’s business and damaging one’s credit standing and endure embarrassment is a possibility. There is not much stigma attached to Business Bankruptcy because it is, in fact, used by many businesses to restructure their companies.
Though Business Bankruptcy may seem different from personal bankruptcy, they both target the same goal: a way out when all possible solutions fail to alleviate the current situation.
When a business or a company is on the verge of forfeiting payments on a debt, it is the sign for an owner or manager to know that the time has come to file for business bankruptcy.
Are there any differences between the different business bankruptcy types?
There are 2 main types of business bankruptcy: chapter 7 and chapter 13, but the latter has more advantages than the former because it is federal bankruptcy, and the law does not require the liquidation of the business itself. As an alternative, the company will have to fulfill paying the debt according to the agreement with the creditors. The company has the chance to recover from the debts and can make profits again. But any decision-making has to be pre- approved by the federal court as the business bankruptcy law stipulates.
Brandon O'Brien is the current manager of a company that filed for bankruptcy after following our professional advice and is currently following making his compulsory payments. Business bankruptcy has helped him regain the company’s financial control and has given him a new way of dealing with the debt problems the company has carried for many years and has not yet solved them.
Brandon O'Brien:
What should I do after filing for Chapter 11 Business Bankruptcy?
James Banks:
Chapter 11 Business Bankruptcy allows the company to keep its assets. Nevertheless it is recommended some bonds be liquidated in order to pay off part of the debt. The amount can be reduced, and the payment will not be too high; allowing the company to generate profit after all. Regardless of what method you use to reduce the debt, the manager of the company has to regularly report to the federal court any decision made in the company.
Brandon O'Brien:
So, after filing for Business Bankruptcy, do the lawyers take care of everything?
James Banks:
Do not believe that by filing for Business Bankruptcy your financial situation will be resolved. You, as the manager will have to make sure that the company has enough cash to endure the whole filing process, and we recommend that you follow a plan in order to avoid any type of delay during the case.
One way to take care of creditors once and for all is to put them all together and set up a plan to start the repayment process. The debt will be reduced, and the creditors will see you are in the process of paying them. This creates trust and understanding as to why you file for bankruptcy.
Remember, filing for Business Bankruptcy is a serious decision, and one that should only be considered when all other options have been tried. It would be wise to seek advice from a financial and legal professional before making any sudden decisions.
We have different articles of interesting topics and current and former clients’ experiences with our programs. Take a look at topics related to Business Bankruptcy, situations in which people can fall into and how to keep yourself a debt free person.
http://www.buzzle.com/articles/business-bankruptcy-saving-company.html
How to Refinance a Car After Bankruptcy
OK, you've filed bankruptcy. Your credit isn't great, but you need to buy a car.So you go to the local car dealership and believe the salesman when he says...
"Buy this car today at this high interest rate and we'll refinance you in 12 months at the lowest interest rate possible."
Recovering from bankruptcy is easier than you thought! Time to celebrate, right?
WRONG!
Don't Believe Everything a Car Salesman Tells You
Every day car dealers repeat the "refinance in 12 months" lie to bankrupt people to push them to purchase cars at extremely high interest rates. You may have financed a car through a high-interest lender knowing that it's not the best choice. But you probably thought it was your only option at the time and you justified it by thinking you could refinance to a lower interest rate later.
But, when you try to refinance the car months later, you find out the car dealer lied to you.
Best Way to Refinance a Car After Bankruptcy
The first thing you need to determine is whether you qualify to refinance, or if you're better off just selling or trading-in your car. So let's start with how much your car is worth.
The biggest mistake most people make when determining the true value of their car is they base their research on the private party value. You need either the trade-in or dealer retail value.
Here's how to get the value of your car...
Step #1: Go to Edmunds.com. I think Edmunds is one of the best all around automobile sites on the web.
Step #2: When you get on the front page, click on "What's your car worth?" It's written in small type and a little tough to find, but it'll be somewhere on the main page. Or you can go straight to the Used Car Appraiser.
Step #3: Follow the steps and click on the make, model and year of your car.
Step #4: Fill in the vehicle details and any optional equipment your car has.
You'll see three different values for your car: Trade-In, Private Party and Dealer Retail. The two values you need to pay attention to are Trade-In and Dealer Retail.
Some lenders base their refinancing on the trade-in value and others on the retail value. Ideally, you want to find a lender that uses the retail value, as it's always higher.
Now that you know the true value of your car, the next step is to call and get your loan payoff from your lender. Loan payoff is what you still owe on the car.Getting a hold of your lender may be tricky. If you've defaulted on the loan, your auto lender may cut off all communication with you. So, if you're having a tough time getting through to your lender, ask for the collections department. They're your best bet for getting through to a live person.
Ask what the payoff on your car is. If you're leasing the car, be sure to add the total remaining payments, residual amount and any early termination fees the lender requires so you get the true payoff amount.
Now subtract the value of your car from the payoff amount.
Do you owe less than the car is worth? If so, great...you'll have more choices and options.
What to do if you owe more than your car is worth
If you owe more on your car than it's worth (commonly referred to as being "upside down") you need to dig a little deeper.Now that you know what your car is worth and how much you still owe on it, it's time to start calling lenders.
Credit unions and banks are the best sources for refinancing your car. Car manufacturers rarely refinance—unless it's for a luxury car. Just make sure the lender you use reports to all three credit reporting agencies. I talk about the importance of reporting to all three agencies in Life After Bankruptcy Issue #12.
The four most important questions to ask lenders when you're about to refinance your car
The four big questions to ask each lender are:
1. "Do you refinance based on the trade-in or dealer retail value of the car?"
2. "What percentage over retail/trade-in value will you lend?"
3. "Which credit reporting agency do you use?"
4. "What FICO credit score do I need to be approved for refinancing?"
Keep in mind that lenders who refinance usually will lend no more than 125% of the trade-in or retail value. The average amount a lender will refinance is 110%. This means that if you're upside down on more than 10% of the value of your car, you're going to have to come up with the difference before the lender gives you the loan.
If you want to figure out how much you'll need to borrow from a lender to refinance, download the free Auto Refinance Worksheet™ and I'll walk you through the calculation process.If you're not in a position to refinance right now, you have another alternative—trade in your current car for another one with a manufacturer's rebate.
The Power of Manufacturer Rebates
A lot of new car manufacturers offer huge rebates to move new cars out the door. There's a big incentive for a dealer to sell a new car.You need to locate the highest rebate offer you can find and work toward trading-in your car to eliminate any upside down situation.
Before you go to a new car dealer, go to www.edmunds.com and look up the rebate and interest rate on every new car and truck a manufacturer offers. This way, if the car salesman isn't being fair with you (as far as rebates and interest rates are concerned) you'll know.
Just go to Edmunds.com and click on "New Cars" and then on "Incentives & Rebates" and you'll get all the information you need.
Some Car Manufacturers Offer Rebates Up to $6,000
It's not a good situation to be upside down on a high-interest car loan that you need to refinance. However, you can get around it by purchasing a new car with a large rebate. You just use the rebate to offset the amount you owe on your old car.
And if you find a car with a higher rebate (highly recommended), you're in even better shape. If the rebate is high enough, it can eliminate your negative equity and you can use any remaining amount as part—or maybe even all—of your down payment.
So, if you're $6,000 or less upside down, you can still come out smelling like a rose if you play your cards right.
Ask the car salesman this magic question...
In addition, don't be afraid to ask the car salesman this important question: "What car or truck on your lot do you need to sell immediately?"
If you're in a negative equity situation (meaning you owe more than the car or truck is worth) you need every advantage you can get your hands on. Ask the auto dealer to sell you the oldest car in their inventory.
Car dealers are willing to take a loss on vehicles they're having a tough time selling because it costs them more to keep these cars on the lot compared to selling them right away at a slight loss. This could mean another $500 to $3,000 discount for you!
You still need a high enough score to qualify
Just like every other major purchase you make on credit, you need to meet a minimum FICO score requirement in order to qualify for a loan from the lender...especially if the lender is a bank or credit union.
For instance, on new cars one manufacturer requires a FICO score of:
680 and above to get a 125% loan
650 to 679 to get a 115% loan
620 to 649 to get a 110% loan
And a FICO score below 620 gets you only a 100% loan
Any loan over 100% will go toward paying off what you owe on the car you're trading in.
Bottom line: the higher your FICO credit scores are—the more options you'll have and better terms you'll receive. That's why we're always preaching to increase your credit scores.
Stephen Snyder is the founder of the After Bankruptcy Foundation a non-profit organization that provides free bankruptcy recovery information. He has helped thousands of people get a car loan after bankruptcy by showing them how to increase their credit score.
http://www.buzzle.com/articles/how-to-refinance-a-car-after-bankruptcy.html
"Buy this car today at this high interest rate and we'll refinance you in 12 months at the lowest interest rate possible."
Recovering from bankruptcy is easier than you thought! Time to celebrate, right?
WRONG!
Don't Believe Everything a Car Salesman Tells You
Every day car dealers repeat the "refinance in 12 months" lie to bankrupt people to push them to purchase cars at extremely high interest rates. You may have financed a car through a high-interest lender knowing that it's not the best choice. But you probably thought it was your only option at the time and you justified it by thinking you could refinance to a lower interest rate later.
But, when you try to refinance the car months later, you find out the car dealer lied to you.
Best Way to Refinance a Car After Bankruptcy
The first thing you need to determine is whether you qualify to refinance, or if you're better off just selling or trading-in your car. So let's start with how much your car is worth.
The biggest mistake most people make when determining the true value of their car is they base their research on the private party value. You need either the trade-in or dealer retail value.
Here's how to get the value of your car...
Step #1: Go to Edmunds.com. I think Edmunds is one of the best all around automobile sites on the web.
Step #2: When you get on the front page, click on "What's your car worth?" It's written in small type and a little tough to find, but it'll be somewhere on the main page. Or you can go straight to the Used Car Appraiser.
Step #3: Follow the steps and click on the make, model and year of your car.
Step #4: Fill in the vehicle details and any optional equipment your car has.
You'll see three different values for your car: Trade-In, Private Party and Dealer Retail. The two values you need to pay attention to are Trade-In and Dealer Retail.
Some lenders base their refinancing on the trade-in value and others on the retail value. Ideally, you want to find a lender that uses the retail value, as it's always higher.
Now that you know the true value of your car, the next step is to call and get your loan payoff from your lender. Loan payoff is what you still owe on the car.Getting a hold of your lender may be tricky. If you've defaulted on the loan, your auto lender may cut off all communication with you. So, if you're having a tough time getting through to your lender, ask for the collections department. They're your best bet for getting through to a live person.
Ask what the payoff on your car is. If you're leasing the car, be sure to add the total remaining payments, residual amount and any early termination fees the lender requires so you get the true payoff amount.
Now subtract the value of your car from the payoff amount.
Do you owe less than the car is worth? If so, great...you'll have more choices and options.
What to do if you owe more than your car is worth
If you owe more on your car than it's worth (commonly referred to as being "upside down") you need to dig a little deeper.Now that you know what your car is worth and how much you still owe on it, it's time to start calling lenders.
Credit unions and banks are the best sources for refinancing your car. Car manufacturers rarely refinance—unless it's for a luxury car. Just make sure the lender you use reports to all three credit reporting agencies. I talk about the importance of reporting to all three agencies in Life After Bankruptcy Issue #12.
The four most important questions to ask lenders when you're about to refinance your car
The four big questions to ask each lender are:
1. "Do you refinance based on the trade-in or dealer retail value of the car?"
2. "What percentage over retail/trade-in value will you lend?"
3. "Which credit reporting agency do you use?"
4. "What FICO credit score do I need to be approved for refinancing?"
Keep in mind that lenders who refinance usually will lend no more than 125% of the trade-in or retail value. The average amount a lender will refinance is 110%. This means that if you're upside down on more than 10% of the value of your car, you're going to have to come up with the difference before the lender gives you the loan.
If you want to figure out how much you'll need to borrow from a lender to refinance, download the free Auto Refinance Worksheet™ and I'll walk you through the calculation process.If you're not in a position to refinance right now, you have another alternative—trade in your current car for another one with a manufacturer's rebate.
The Power of Manufacturer Rebates
A lot of new car manufacturers offer huge rebates to move new cars out the door. There's a big incentive for a dealer to sell a new car.You need to locate the highest rebate offer you can find and work toward trading-in your car to eliminate any upside down situation.
Before you go to a new car dealer, go to www.edmunds.com and look up the rebate and interest rate on every new car and truck a manufacturer offers. This way, if the car salesman isn't being fair with you (as far as rebates and interest rates are concerned) you'll know.
Just go to Edmunds.com and click on "New Cars" and then on "Incentives & Rebates" and you'll get all the information you need.
Some Car Manufacturers Offer Rebates Up to $6,000
It's not a good situation to be upside down on a high-interest car loan that you need to refinance. However, you can get around it by purchasing a new car with a large rebate. You just use the rebate to offset the amount you owe on your old car.
And if you find a car with a higher rebate (highly recommended), you're in even better shape. If the rebate is high enough, it can eliminate your negative equity and you can use any remaining amount as part—or maybe even all—of your down payment.
So, if you're $6,000 or less upside down, you can still come out smelling like a rose if you play your cards right.
Ask the car salesman this magic question...
In addition, don't be afraid to ask the car salesman this important question: "What car or truck on your lot do you need to sell immediately?"
If you're in a negative equity situation (meaning you owe more than the car or truck is worth) you need every advantage you can get your hands on. Ask the auto dealer to sell you the oldest car in their inventory.
Car dealers are willing to take a loss on vehicles they're having a tough time selling because it costs them more to keep these cars on the lot compared to selling them right away at a slight loss. This could mean another $500 to $3,000 discount for you!
You still need a high enough score to qualify
Just like every other major purchase you make on credit, you need to meet a minimum FICO score requirement in order to qualify for a loan from the lender...especially if the lender is a bank or credit union.
For instance, on new cars one manufacturer requires a FICO score of:
680 and above to get a 125% loan
650 to 679 to get a 115% loan
620 to 649 to get a 110% loan
And a FICO score below 620 gets you only a 100% loan
Any loan over 100% will go toward paying off what you owe on the car you're trading in.
Bottom line: the higher your FICO credit scores are—the more options you'll have and better terms you'll receive. That's why we're always preaching to increase your credit scores.
Stephen Snyder is the founder of the After Bankruptcy Foundation a non-profit organization that provides free bankruptcy recovery information. He has helped thousands of people get a car loan after bankruptcy by showing them how to increase their credit score.
http://www.buzzle.com/articles/how-to-refinance-a-car-after-bankruptcy.html
Kill and Tell: Victim's Family Win Right to Publish Oj's Version of a Night of Murder
If I Did It, Here's How It Happened had always seemed a rather unwieldy title for the story of one of the most notorious murders in modern American history. Confessions of a Double Murderer, however, is a different matter.
OJ Simpson's controversial account of how he would have killed his wife Nicole Brown-Simpson and her friend Ron Goldman is finally to be published, following a court order issued last month. But the proposed publication will not benefit Simpson, his family or any of those involved in the original, aborted project.
Instead the rights to the book have been acquired by Goldman's family from a court-appointed trustee.
"Ron Goldman LLC will own Simpson's name, likeness, signature and story and will hawk it to satisfy this terrible judgment. Justice has arrived in Miami," the family's lawyer, David Cook, told the Associated Press.
"The contract and the rights are going to be circulated among every major publisher, literary agent, movie and TV producer and entertainment lawyer in the United States," Mr Cook added.
A bankruptcy court last month awarded the Goldman family ownership of the copyright to the manuscript to prevent Simpson profiting from its sale. Goldman's family argued that any proceeds from the book should go towards a $33.5m (£16.5m) court award against the former actor and American football star. The award was granted by a jury which found he was responsible for both killings in a civil case brought after his acquittal for the 1994 murders. Simpson has avoided paying the award by declaring bankruptcy.
Disputed
But an attorney for Simpson disputed the extent to which the Goldmans can exploit his image. "The bankruptcy trustee does not have the right to sell Simpson's name, likeness, image and the like," attorney Yale Galanter said.
In court hearings last month bankruptcy judge Jay Cristol ruled that Simpson stood to gain from publication of the book. The judge ruled that a company set up by Simpson's daughter to oversee publication of the book was designed to channel money to him. Simpson had always insisted that any profits from the publication of the book would go to his children.
News of the book ignited a media firestorm at the end of last year that led to the demise of the imprint that was to publish it and a crisis that rocked Rupert Murdoch's News Corp. Regan Books, which was reported to have agreed to pay Simpson $800,000 for the book, was part of the HarperCollins publishing group which in turn is owned by News Corp. Publication of the book was to have been preceded by a TV interview conducted by the imprint's head Judith Regan and broadcast on the Fox News cable channel in the US, which is also owned by News Corp.
But in the wake of an outcry over the sensationalist content of the book and the possibility that Simpson would profit from its publication, both book and interview were cancelled by Mr Murdoch. Regan was dismissed from the imprint and it was shut down after she allegedly made anti-Semitic comments.
In a deposition given in the bankruptcy case last month, Simpson's oldest daughter Arnelle shed light on the background to the project. She said the book had been her idea, conceived with a friend called Raffles Van Exel, who was a vocal supporter of Michael Jackson during his trial. Simpson convinced her father to take part in the project and set up a company, Lorraine Brooke Associates, to sell the rights.
"This company was an effort to begin to do something for herself, not to fund Mr Simpson's legal fees," an attorney for Arnelle Simpson told ABC News. "Even though HarperCollins canceled the publishing deal with LBA, plenty of other publishing companies are interested in buying those rights." However shortly before a court-ordered sale of the rights to the book in April, LBA filed for bankruptcy.
In last month's ruling, Judge Cristol said that LBA was set up "to perpetuate fraud". He ruled that there was a money trail showing that $630,000 (£315,000) paid by HarperCollins to LBA was then transferred to Simpson, who used it to pay tax and other expenses.
In exchange for the rights to the book, the Goldman family must pay the bankruptcy trustee 10% of the first $4m in gross proceeds plus a proportion of all profits.
One chapter of the unpublished book deals with the Simpson's version of the killings. Titled The Night in Question it describes how Brown-Simpson fell outside her home, hitting her head. As Simpson and Goldman confront each other, Simpson writes: "Then something went horribly wrong, and I know what happened, but I can't tell you exactly how."
http://www.buzzle.com/articles/143832.html
OJ Simpson's controversial account of how he would have killed his wife Nicole Brown-Simpson and her friend Ron Goldman is finally to be published, following a court order issued last month. But the proposed publication will not benefit Simpson, his family or any of those involved in the original, aborted project.
Instead the rights to the book have been acquired by Goldman's family from a court-appointed trustee.
"Ron Goldman LLC will own Simpson's name, likeness, signature and story and will hawk it to satisfy this terrible judgment. Justice has arrived in Miami," the family's lawyer, David Cook, told the Associated Press.
"The contract and the rights are going to be circulated among every major publisher, literary agent, movie and TV producer and entertainment lawyer in the United States," Mr Cook added.
A bankruptcy court last month awarded the Goldman family ownership of the copyright to the manuscript to prevent Simpson profiting from its sale. Goldman's family argued that any proceeds from the book should go towards a $33.5m (£16.5m) court award against the former actor and American football star. The award was granted by a jury which found he was responsible for both killings in a civil case brought after his acquittal for the 1994 murders. Simpson has avoided paying the award by declaring bankruptcy.
Disputed
But an attorney for Simpson disputed the extent to which the Goldmans can exploit his image. "The bankruptcy trustee does not have the right to sell Simpson's name, likeness, image and the like," attorney Yale Galanter said.
In court hearings last month bankruptcy judge Jay Cristol ruled that Simpson stood to gain from publication of the book. The judge ruled that a company set up by Simpson's daughter to oversee publication of the book was designed to channel money to him. Simpson had always insisted that any profits from the publication of the book would go to his children.
News of the book ignited a media firestorm at the end of last year that led to the demise of the imprint that was to publish it and a crisis that rocked Rupert Murdoch's News Corp. Regan Books, which was reported to have agreed to pay Simpson $800,000 for the book, was part of the HarperCollins publishing group which in turn is owned by News Corp. Publication of the book was to have been preceded by a TV interview conducted by the imprint's head Judith Regan and broadcast on the Fox News cable channel in the US, which is also owned by News Corp.
But in the wake of an outcry over the sensationalist content of the book and the possibility that Simpson would profit from its publication, both book and interview were cancelled by Mr Murdoch. Regan was dismissed from the imprint and it was shut down after she allegedly made anti-Semitic comments.
In a deposition given in the bankruptcy case last month, Simpson's oldest daughter Arnelle shed light on the background to the project. She said the book had been her idea, conceived with a friend called Raffles Van Exel, who was a vocal supporter of Michael Jackson during his trial. Simpson convinced her father to take part in the project and set up a company, Lorraine Brooke Associates, to sell the rights.
"This company was an effort to begin to do something for herself, not to fund Mr Simpson's legal fees," an attorney for Arnelle Simpson told ABC News. "Even though HarperCollins canceled the publishing deal with LBA, plenty of other publishing companies are interested in buying those rights." However shortly before a court-ordered sale of the rights to the book in April, LBA filed for bankruptcy.
In last month's ruling, Judge Cristol said that LBA was set up "to perpetuate fraud". He ruled that there was a money trail showing that $630,000 (£315,000) paid by HarperCollins to LBA was then transferred to Simpson, who used it to pay tax and other expenses.
In exchange for the rights to the book, the Goldman family must pay the bankruptcy trustee 10% of the first $4m in gross proceeds plus a proportion of all profits.
One chapter of the unpublished book deals with the Simpson's version of the killings. Titled The Night in Question it describes how Brown-Simpson fell outside her home, hitting her head. As Simpson and Goldman confront each other, Simpson writes: "Then something went horribly wrong, and I know what happened, but I can't tell you exactly how."
http://www.buzzle.com/articles/143832.html
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