The Myths and Facts about Personal Bankruptcy

Personal bankruptcy is a very undesirable situation. Often caused by sudden changes in your financial situation due to medical emergencies, unemployment, excessive debt or divorce, filing for personal bankruptcy should be considered as a responsible step towards regaining financial freedom. If you are considering filing for personal bankruptcy, here are some of the myths and facts about it.

Myth #1: You can not file for Personal Bankruptcy.

Contrary to this myth, changes made by the US Congress in 2005 allow any debtor to file for personal bankruptcy. Bankruptcy is also governed by state laws. If you file bankruptcy in Arizona, Arizona bankruptcy lawyers and Phoenix bankruptcy lawyers can help you determine whether you qualify for a Chapter 7 (liquidation of assets) or Chapter 13 (re-organization) bankruptcy.

Myth#2: Filing for Personal Bankruptcy is embarrassing.

If you do not file for bankruptcy, it will actually be even more embarrassing to be hounded by your creditors. Taking charge of your financial situation and owing up to your responsibilities is actually admirable and should be something to be proud of.

Myth#3: You will always have a bad credit score.

If you must know, the completion of personal bankruptcy proceedings will clear all previous credit record allowing you to begin with a new and clean slate. Many Phoenix bankruptcy lawyers and Arizona bankruptcy lawyers can guarantee this based on their extensive experience.

Myth#4: You can only file for personal bankruptcy once in your lifetime.

If you filed for a Chapter 7 bankruptcy, you will need to wait a period of 8 years before you can file for the next Chapter 7 bankruptcy. On the other hand, you can file for a Chapter 13 bankruptcy as often as your situation requires.

Myth#5: Personal bankruptcy means losing everything you have.

On the contrary, bankruptcy is designed to protect a debtor from losing all assets and at the same time find a way for all the debt to be settled. Phoenix bankruptcy lawyers and Arizona bankruptcy lawyers can provide you with the right information so that you will not end up losing any of your precious belongings.

Myth#6: Filing for personal bankruptcy is hard and impossible.

Anyone can file a personal bankruptcy. You will have no difficulties at all. If you want, you can hire Phoenix bankruptcy lawyers and Arizona bankruptcy lawyers to help you every step of the way.

Personal bankruptcy is a serious but effective solution to your financial problems. Before you file for one, make sure that you have explored all available bankruptcy alternatives.

Natalie Aranda writes about laws and family. Personal bankruptcy is a very undesirable situation. Often caused by sudden changes in your financial situation due to medical emergencies, unemployment, excessive debt or divorce.Bankruptcy is also governed by state laws. If you file bankruptcy in Arizona, Arizona bankruptcy lawyers and Phoenix bankruptcy lawyers can help you determine whether you qualify for a Chapter 7 (liquidation of assets) or Chapter 13 (re-organization) bankruptcy. Looking into local yellow page, you'll have a long list of Phoenix bankruptcy lawyers to choose from.

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Bankruptcy Advice: To Find Out All About Filing Bankruptcy!

Perhaps you have reached the point where you have built up so much debt that you just cannot see a way to pay it all off. You do not know how to cope without some help and advice. All you can think about right now is finding a way to get those creditors off your back, but you just do not know where to start.

Why do people get into debt?

At first glance, the reasons for getting into insurmountable debt may seem obvious: if you spend more money than your earnings, you will have insufficient funds to meet your bills. If you continue this trend for a long time, the debts-and the interest you must pay on them-will increase.

Whatever caused your debts filing for bankruptcy can offer a way of paying off your debts without harassment; or it can offer a way of completely eradicating many, if not all of your financial headaches. Take comfort from knowing that many people have come out of bankruptcy and built their finances up again, with great success.

To make the most of bankruptcy filing, you need to be positive and make changes in your financial habits. We help you on how to improve your credit so that you can shrug off the effects of bankruptcy as quickly as possible.

Recent studies show that bankruptcies are not the result of excessive consumer spending or credit card abuse. Instead, most bankruptcies are triggered by the following:

-Losing a job

-a serious health problem, medical costs to be incurred

-Divorce or separation

Filing for bankruptcy:

Usually, filing for bankruptcy involves a petition with the court. A petition is a written request, or appeal, to an authority which calls for some action. A bankruptcy is a request made to discharge all debts.

Bankruptcy is usually seen as a “last-resort method” people should always think twice before making such tough decisions; because once you file for bankruptcy, all your financial life will be seriously affected. You need the best legal advice possible. Choosing the wrong attorney could cost you your home, vehicles, or other possessions.

Credit repair can help all those borrowers who have opted for online bankruptcy!

It helps you build up a good record again. They give you a small amount at first and as you repay your debt on time, they grant you higher loans, proportional to the growth of your business on a solid base. However, the lenders will need an assurance on how you plan to work and correct your previous misdoings, so that they don’t feel they are throwing away their money down the drain.

Online Bankruptcy loan can provide you with an opportunity to own a home or car, set up a small business or deal with your various financial obligations even after you have declared bankruptcy. But make sure you opt for filing bankruptcy with a best legal advice from a bankruptcy attorney.

Get a true bankruptcy alternative: Bankruptcy alternative-IVA

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Chapter 13 Refinance Bankruptcy Code

Many people who have filed bankruptcy know little about the process. Often times debtors are unaware of their options in a chapter 13 because they rely on their attorney; their attorney has a fiduciary relationship with the debtor. A bankruptcy attorney's job is to know bankruptcy law, not the mortgage business or their guidelines. When a debtor files a BK 13 their main concern is having an automatic stay placed on a mortgage, collection, etc. To save their home from foreclosure. When entering into a plan the debtor, usually has no exit plan other than paying the 5 or 3 year plan (contingent upon median income). The debtor can refinance after 36 months (all unsecured claims become dischargeable debt) and discharge the bankruptcy immediately. This saves the borrower 2 years on their credit report. After refinancing, the BK 6 months out/discharged fannie mae will issue approvals. A bankrupt borrower can easily be transformed to an AA+ 680-720 FICO borrower yielding rates in the range of 6.25-7.00 after doing a loan to discharge the bankruptcy.

In a dismissed bankruptcy a foreclosure bailout out loan can be arranged. This topic was discussed in a previous article I published in ezinearticles.com When a debtor is dismissed from his/her bankruptcy the mortgage ALONE can be refinanced and a Chapter 7 can be employed. When filing a Chapter 7 the mortgage must be refinanced first. I arrange foreclosure bailouts for people more frequently than previous years. When trustee or mortgage payments are missed the bank will make a motion to lift the automatic stay. This leaves the borrower exposed to foreclosure until the mortgage is refinanced. If the borrower meets the means test the non mortgage/secured debts can be discharged under a Chapter 7 Bankruptcy. The "means test" is when the court determines a debtors filing to be abuse of the system. Abuse is presumed if the aggregate current monthly income over 5 years, net of certain statutorily allowed expenses is more than $10K or is 25% of the debtors unsecured debts, as long as the amount is $6,000. The debtor can rebut this guideline with mitigating circumstances. A dismissal from a bankruptcy has been viewed by the court as mitigating circumstances.

When the payments to your trustee are not perfect you can still get out of your bankruptcy. If the debtor has filed multiple Bankruptcies it is important for debtor to know what claims are listed in schedule D & F (secured and unsecured claims) Often times when multiple liens are present the attorney will file an avoidance on a lien. This means the borrower is not required to pay the lien back. However, all too often title searches find liens that were never discussed or filed. Liens that maybe very old. An unscheduled debt most of the time will not be discharged with a BK payoff because the claim was omitted or an avoidance was never filed. This is a common omission/oversight that can (depending on the amount of the claim) present a problem for a borrower who may not have enough equity to cover the lien.This is where having a through attorney pays off, you most likely wont have to deal with this predicament. Often times I can negotiate these debts down if they are addressed ahead of time.

About the Author

Shawn Peck is top performing loan officer writing business exclusive to Bankruptcy and Foreclosure. Mr. Peck is a nationally recognized voice in the mortgage industry giving seminars and masterclasses pertaing to chapter 13 law, compliance, and how this relates to the mortgage industry. Mr. Peck is an active loan officer and educator. Mr. Peck is a member of the PAMB (Pennsylvania Association Of Mortgage Brokers) and is sworn to uphold their code of ethics. Mr. Peck is a Rowan University Alumni and an active philanthropist.

You may contact the author:
Shawn M Peck
Chapter 13/Foreclosure Specialist
Brink Mortgage LLC
856-858-1176 Ext 108 (PH)
856-858-3077 (F)
speck@mybrink.com (EM)
http://www.mybrink.com

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The Hidden Cost of Bankruptcy

Bankruptcy is a contentious word for a whole number of reasons. Firstly it relates to a situation whereby a Debtor not being able to satisfy or compound to his Creditors a suitable amount has to turn to the Courts for protection and at the end of the day everyone loses out.

Let me repeat this last fact lest it passes some by. In a Bankruptcy situation no one wins. It is a “lose-lose” scenario. The Debtors by and large lose almost everything he or she owns (unless they are very carefully advised) and the Creditors by and large lose their money because when the Courts, Bankruptcy Trustees etc take their cut there is usually only a dividend of mere pence in the pound at the end of the day.

I hope all petitioning solicitors and lawyers read this with care as they are the ones who are advising all of their clients to sue people for bankruptcy. It is a bit like loading up pistols left right and centre for a “Russian Roulette Fest” it gets nobody anywhere.

In fact having read the last paragraph in more detail I take back my comment about Bankruptcy being a lose-lose situation it’s not, the Lawyers and Accountants make a fortune out of their fees, no one else does.

But there is a hidden cost to all of this that no one is prepared to acknowledge and this includes the knock on cost of ill health brought about by the stress of Bankruptcy. It is the “sleeping elephant” (for want of a more suitable metaphor) in the corner of the room that no one wants to acknowledge but it is certainly there all the same.

Let us analyse part of that “ill health” that we referred to above and that is the area of High Blood Pressure. It is one of the few natural growth phenomena of the late 20th and 21st Centuries and now is assuming almost epidemic proportions. The stress and elevated blood pressure brought about by the comings and goings of bankruptcy and all of the shenanigans that ensue can be lethal and in some cases lead to fatal consequences.

Our Society is so powered by the worship of all things financial that in the “heated blood lust of debt recovery” we seldom stop to consider the hidden human cost to all of this. I have client who as well as his business career being well and truly finished (boy was he badly advised earlier on but that is another issue) but his health, or should I say ill-health, is such now that any job prospects he might have had are now well and truly finished.

Now let us consider who well and truly gains by any of this? The answer? No one and if I can make just one final point it is a plea to any Solicitors and Lawyers who may, just may be reading this article. When you advise clients to pursue matters to Bankruptcy, get your background research carried out properly, do your due diligence well and get it right because at the end of the day as well as well and truly losing the majority of your clients money (which statistics point out is most certainly the case) you also damage the health of the person at the end of the writ.

Do you know the sad thing abut the whole side of this? I bet there is not a Solicitor or Layer who really cares, as long as they get their bonus and their fees, who gives a damn about anybody else?

Stephen Morgan writes about Financial and Health Matters for a number of web sites and more information on the above can be found at Cost of Filing Bankruptcy and also at http://www.livingwithhighbloodpressure.net/cause-of-high-blood-pressure.html

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Simple Steps for Filing Bankruptcy and Getting Fast Debt Relief

If you recently experienced major financial problems, it might be a good idea to consider filing for bankruptcy. If you are seriously considering filing for personal bankruptcy, then you should at least know what the steps are for filing personal bankruptcy and getting fast relief from your financial troubles.

The first thing you have to do is to organize all your personal financial information. They would include all your secured and unsecured debts, deeds to your real estate properties, tax returns, car titles and other documents that might be relevant to your finances. For more convenience, you can get your full credit report.

After making sure you have all the important financial documents with you, you will have to complete personal bankruptcy forms. The forms will actually describe your present financial situation and most recent transactions. At this point, you can hire Arizona bankruptcy lawyers or Phoenix bankruptcy lawyers to make sure you answered each question on the form correctly and decide on which type of personal bankruptcy to file, a Chapter 7 bankruptcy or Chapter 13 bankruptcy.

A Chapter 7 bankruptcy will leave you with no assets but all your debt will be wiped out. On the other hand, if you file for a Chapter 13 bankruptcy, you get to keep all your exempted assets and pay your creditors within a period of 3 to 5 years under the supervision of the bankruptcy court.

If you want to file for a Chapter 13 bankruptcy, you will have to submit a repayment plan proposal together with your petition. You will have to pay a filing fee: $200 for a Chapter 7 bankruptcy and $185 for a Chapter 13 bankruptcy. Once the personal bankruptcy petition is filed, all your creditors are prohibited from contacting you and staking claims to your assets. One month after, you and your Arizona bankruptcy lawyers or Phoenix bankruptcy lawyers will be summoned for a meeting with your creditors to negotiate and answer questions. A compromise should be reached and if not, the bankruptcy judge will likely to mediate. If an agreement is reached, you should expect a notice from the bankruptcy court after four to six months, discharging the personal bankruptcy.

Completion of a personal bankruptcy will give you a chance to begin with a clean slate. You can start re-building your life, making sure that you have learned from such an experience.

Natalie Aranda writes about family, monet and finance. If you are seriously considering filing for personal bankruptcy, then you should at least know what the steps are for filing personal bankruptcy and getting fast relief from your financial troubles. Arizona residents can hire Phoenix Arizona bankruptcy lawyers to make sure you answered each question on the form correctly and decide on which type of personal bankruptcy to file, a Chapter 7 bankruptcy or Chapter 13 bankruptcy.

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Car Loans After Bankruptcy

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

Contingencies

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

Credit Report

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

Double Benefit

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

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

Car Loan Brokers

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

Applying On-Line

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

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

One Last Touch

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

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Mary Wise, a professional consultant at Badcreditloanservices.com with twenty years in the financial field, prevents consumers from falling into the hands of fraudulent lenders. You will find more useful tips and interesting articles by clicking Here

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Credit Repair After Bankruptcy

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

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

Hold on to accounts you have

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

Slowly apply for new loans

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

Strike a balance

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

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

Milos Pesic is an expert in the field of Credit Repair and runs a highly popular and comprehensive Credit Repair web site.

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Eliminate Debt without Bankruptcy

Times are tough and people across the country are endlessly struggling to make ends meet. The Midwest has lost thousands of manufacturing jobs and can expect to lose thousands more. It’s no wonder that individuals are carrying more credit card debt than ever before; many are likely using credit cards to simply purchase the basic necessities.

Unfortunately, using credit cards comes with a hefty price – mounds of debt and high monthly bills. If you’ve recently discovered that your credit card bills are out of control, and you’re barely getting by each month, there are options available that can enable you to eliminate your credit card debt and avoid a bankruptcy filing.

You see, creditors would rather accept a portion of the amount you owe them, rather than nothing at all. Because of this, you can negotiate with your creditors through debt settlement.

Debt settlement (debt negotiation) is a process whereby you negotiate with your creditors so that they will agree to accept less than the full balance (normally 50% or less) of what is actually owed. Debt settlement is an excellent solution for individuals who can no longer afford their monthly bills, and simply want to put their debt behind them, with no further monthly payments.

Obviously, there are certain criteria that you must meet in order to qualify for a debt settlement program; and just like most things, the process of debt settlement can at times be frustrating. You can eliminate some of your concerns regarding debt settlement by educating yourself and learning all that you can prior to commencing a dialogue with your creditors in an effort to negotiate lower balances on your accounts. There are also many firms that can represent you during the process of debt settlement. If you should choose to hire a debt settlement company to negotiate with your creditors on your behalf, be certain that the firm you hire is one that you trust and with whom you feel comfortable. Unfortunately, there are some debt settlement companies who are more interested in taking your money than legitimately assisting you with your financial difficulties. On the other hand, there are also many firms who will do an excellent job negotiating with your creditors and successfully eliminating your debt. A great deal of these firms will work on a contingency basis, and not accept any fees until they produce satisfactory results.

Marie Megge is a consultant in the credit services industry. Over the past several years she has assisted many individuals in resolving their debt-related matters.

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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.

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

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