Bankruptcy attorneys estimate that one in every 53 U.S. households filed for bankruptcy in 2005. Most of these people didn't lose the farm in Vegas or drink away their life savings. Chances are their financial problems stemmed from one of three sources: job loss, divorce, or unexpected and expensive medical emergencies.
Most homeowners who file for bankruptcy do not lose their homes. Bankruptcy laws are designed to satisfy creditors and protect debtors. Putting a family out on the street helps no one.
Ted Janger of The American Bankruptcy Institute stresses that, “It is important to have competent counsel advise you, both about the choices among chapters and about how best to make sure that bankruptcy operates to solve your financial difficulties, rather than just as a hiatus.”
Establishing Credit After Bankruptcy
For people who got into trouble with credit, the thought of using it again can be frightening. It’s a catch-22. To be considered a good candidate for a new mortgage or car loan, consumers have to rebuild their credit. If they don’t, when a prospective lender looks at their credit report, all they will see is the bankruptcy. There won’t be a new track record of handling credit responsibly or of improved financial management skills.
It doesn’t seem logical, but after people have successfully filed for bankruptcy, they will receive a flood of new credit offers. If they accept a few well chosen ones and pay more than the minimum payment each month, this will appear as positive data in their credit report.
One form of new credit would be a first mortgage refinance or a new second mortgage. Either transaction would depend on the amount of equity in the home and be subject to any guidelines established by the bankruptcy court.
Mike Hamel is the author of three business books and several articles about mortgage financing. His material is featured on sites like E-lends. To learn more about a Bankruptcy Mortgage, or to receive a complimentary quote, visit E-lends. Even after bankruptcy, you should still be able to get a competitive mortgage.
http://ezinearticles.com/?Bankruptcy-Mortgage-Information-For-Homeowners&id=660435
Monday, July 30, 2007
Now Is The Time For Understanding Bankruptcy In Business
Individual and business bankruptcy is entirely different from each other. Businesses use bankruptcy to reorganize their company to avoid bankruptcy. This allows time to turn a profit and retain ownership of all assets. Many businesses can file under chapters 13, 7, 12 and 11 depending on their circumstance.
Limitations apply to businesses that use chapters 12 and 13. Chapter 12 is dedicated to farmers and anglers who operate family businesses. Chapter 13 pertains to proprietary business owners of a small business. Because of these limitations, most businesses file under chapters 7 or 11.
If you feel your business is failing, bankruptcy may be the answer and chapter 7 will allow you to liquidate your assets to settle debts with creditors. A court appointed trustee will help you through the process of liquidation and keeps the money to distribute to creditors after all sales are completed. Creditors are paid back according to federal bank codes.
Understanding bankruptcy in business leads us to look further at chapter 7. Creditors like chapter 7 bankruptcies because they receive as much of their money as possible through the liquidation process along with the legal liability of their claim. The company itself is responsible for taxes in most cases. The chapter 7 expenses and taxes are paid before creditors. This prevents you from incurring any more debt than you already have.
If you feel, your business can be saved but need some time to reorganize and turn a profit, chapter 11 will benefit you by allowing the business to run as usual while trying to become profitable. Any big decisions about the business must have approval from the courts. Such businesses like K-Mart and Enron used chapter 11 bankruptcies in order to reorganize and turn a profit. Many companies’s use this course of action and succeed, but some do not make it and lose their business and assets.
Creditors are stopped cold in their tracks from taking any further action against you once you file the bankruptcy papers and this helps a company turn a profit and pay creditors before collection actions further hamper the business. Understanding bankruptcy in business in not much different from a personal bankruptcy, but there are a few things that appear different. If a company needs some time to earn a few dollars, they can just file a chapter 11 and reorganize before losing the company. We really do not have that complete option as personal bankruptcy candidates.
You can also find more info on Filing Personal Bankruptcy and Avoid Bankruptcy. Filingpersonalbankruptcyhelp.com is a comprehensive resource to get help in Bankruptcy.
http://ezinearticles.com/?Now-Is-The-Time-For-Understanding-Bankruptcy-In-Business&id=661498
Limitations apply to businesses that use chapters 12 and 13. Chapter 12 is dedicated to farmers and anglers who operate family businesses. Chapter 13 pertains to proprietary business owners of a small business. Because of these limitations, most businesses file under chapters 7 or 11.
If you feel your business is failing, bankruptcy may be the answer and chapter 7 will allow you to liquidate your assets to settle debts with creditors. A court appointed trustee will help you through the process of liquidation and keeps the money to distribute to creditors after all sales are completed. Creditors are paid back according to federal bank codes.
Understanding bankruptcy in business leads us to look further at chapter 7. Creditors like chapter 7 bankruptcies because they receive as much of their money as possible through the liquidation process along with the legal liability of their claim. The company itself is responsible for taxes in most cases. The chapter 7 expenses and taxes are paid before creditors. This prevents you from incurring any more debt than you already have.
If you feel, your business can be saved but need some time to reorganize and turn a profit, chapter 11 will benefit you by allowing the business to run as usual while trying to become profitable. Any big decisions about the business must have approval from the courts. Such businesses like K-Mart and Enron used chapter 11 bankruptcies in order to reorganize and turn a profit. Many companies’s use this course of action and succeed, but some do not make it and lose their business and assets.
Creditors are stopped cold in their tracks from taking any further action against you once you file the bankruptcy papers and this helps a company turn a profit and pay creditors before collection actions further hamper the business. Understanding bankruptcy in business in not much different from a personal bankruptcy, but there are a few things that appear different. If a company needs some time to earn a few dollars, they can just file a chapter 11 and reorganize before losing the company. We really do not have that complete option as personal bankruptcy candidates.
You can also find more info on Filing Personal Bankruptcy and Avoid Bankruptcy. Filingpersonalbankruptcyhelp.com is a comprehensive resource to get help in Bankruptcy.
http://ezinearticles.com/?Now-Is-The-Time-For-Understanding-Bankruptcy-In-Business&id=661498
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