Unlike the modern day US views on bankruptcy, the Brits look upon bankruptcy as an extremely humiliating and unfair non-solution to indebtedness. There is a stigma attached to all forms of bankruptcy in the UK that really never goes away from someone who has filed. If you possess any substantial assets, bankruptcy should definitely be considered only as a last resort. The new Enterprise Act is sometimes said to discharge bankruptcies within a twelve month time frame, yet this is rarely experienced.
In the UK, bankruptcy is a very public matter. For years it will be difficult, if not impossible, to obtain a mortgage or get any credit. The bankruptcy petition will be posted in your local newspaper as well as the London Gazette. Your creditors, bank, building society & landlord will all be informed immediately. Any business that you own will be immediately shut down. All future assets including: inheritances, insurance payouts/maturities, equity in property, windfalls, and possibly even pensions will be lost.
Not enough? All of your bank accounts and credit cards will be immediately closed. Anything that you are purchasing on lease or HP will be immediately returned to its owner. The minimum period for bankruptcy is 5 years. This can continue for up to 15 years in cases of repeat bankrupts. Professional and business status will be lost. Also memberships to many societies and associations will also be terminated.
Individual Voluntary Arrangements (IVAs) are the prevalent discourse to bankruptcy. These are legal contracts made with a mandatory 75%+ of your creditors to alleviate financial distress. They stop chasing letters. They bypass court action. They are not made public. Compared to the alternative of bankruptcy, IVAs seem like the way to go, if you happen to be a Brit in financial peril.
http://www.articledashboard.com/Article/Bankruptcy-London--UK--Humiliation-Instiller---Business-Killer/236829
Thursday, September 6, 2007
Is It Better To Buy Or Lease A Car After Bankruptcy?
If you want to get approved at the best possible terms when buying a car, it's important you know a car lender's credit guidelines before you apply for credit...especially if you're bankrupt.
It will save you time and frustration—but more importantly, it will help you avoid credit inquiries that may lower your FICO credit scores up to 12 points per inquiry.
Step 1 in making a lease or buy decision is to determine a lender's credit guidelines.
You start by asking if they lend to people with a bankruptcy. If so, on what terms?
That's right. You have to be upfront that you've filed bankruptcy. Don't hide it. We have to face the fact that some dealers just won't work with people who've filed bankruptcy. So our job is to find the ones that do.
Some lenders will only lease to people with a bankruptcy. Others will only offer purchase financing. Yet still others will only lend using a hybrid of the two—this is especially common in Texas.
Ask the finance director at the dealership to direct you as to what structure the manufacturer prefers.
And here's a quick tip for you: if your bankruptcy doesn't appear on the credit report your lender pulls—then, in the eyes of the lender, you're not bankrupt.
The only lenders I would consider using are:
- First choice: Captive lenders (car manufacturers)
- Second choice: Banks (not finance companies)
- Third choice: Credit unions
Ninety-nine percent of the cars I've leased over the years have been with captive lenders. Just one was leased by a bank.
That particular deal came from a conversation I had with Amy, the finance manager at the local Land Rover dealership here in Indianapolis. I told her I was open to her financing recommendations, but I preferred financing through the car manufacturer.
I told her my current FICO scores. She immediately said that with my scores she could do better through a local bank. I signed a credit application and told her to go for it.
The next day I signed a lease agreement with that local bank. Being open to her advice literally saved me hundreds of dollars a month on that car.
So be flexible...but be careful. It seems most car dealers call all of their funding sources banks. When in reality some are banks, some are credit unions, and most are sub-prime finance companies.
Here is a list of some of the most commonly used sub-prime auto finance companies:
1. HSBC Automotive
2. Capital One
3. AmeriCredit
4. WFS Financial
You want to pass on the sub-prime finance companies—unless you have exhausted all other options. Sub-prime lenders should be your last resort.
And only use credit unions if they report to all three national credit reporting agencies. How do you find out if a credit union reports to all three credit reporting agencies?
Simple—you ask. Ask the branch manager at the credit union if they report. And after you get the loan, check all three of your credit reports and make sure their trade line appears on each one.
The three worst luxury captive lenders to lease or purchase from after bankruptcy are:
1. BMW
2. Mercedes
3. Porsche
The three worst mainstream captive lenders are:
What makes these the worst?
Once these lenders see that you've filed bankruptcy, they are less likely to work with you. However, if they are willing to work with you, they'll want you to be at least several years from discharge and have perfect credit during that time.
Now that I told you how bad the above six lenders are—there are times where they may offer you good deals. For example, if one of the above happens to be the biggest dealer in your area, they may be able to offer you special deals that a smaller dealer can't.
Of course, things change all the time with captive auto lenders. They change their credit guidelines on a whim to meet their own financial goals. So, it's always a good idea to at least research these dealerships—just don't get your hopes up too high.
OK, so you've done your research and narrowed down your choice to one or two car manufacturers.
Step 2 in making a lease or buy decision is to purchase your FICO credit scores.
It's important you have your most recent scores when you talk to car dealers (just like I did with Amy). It puts you in charge.
When you enter a dealership with your FICO scores, the dealer will know you're a more informed consumer and cannot be taken advantage of. Just know that the FICO credit scores auto dealers use are a little different than what we see as consumers. The scores the dealers review are called FICO Auto Industry Option Scores. The good news...these FICO scores may be higher than your normal FICO scores if you paid all previous auto loans as agreed.
Some car dealers have told me that if your FICO scores are higher than the scores the dealer reviews—they may even use your scores to get a better deal.
You can buy your scores from myFICO.com.
Step 3 is to interview the remaining car dealers on a deeper level.
Start by asking them these questions:
- Which credit reporting agency do you use to make a lending decision?
- What is your minimum credit score requirement to get approved?
- What credit score is needed to get the best interest rate?
- Do your lenders prefer offering lease or purchase financing to a bankrupt debtor?
- What incentives are there to lease or purchase right now?
At this point it's important to remain open to either leasing or purchasing. Evaluate your options and incentives. Remember, you're buying the financing. In other words, the most important factor is the willingness of the lender to loan you money.
I personally view the lease versus buy decision in three ways:
1. If you're recently recovering from bankruptcy, the only thing that matters is if you can get approved at an interest rate you can afford through a lender that reports to all three national credit reporting agencies. So you should only consider lenders that are bankruptcy friendly.
2. Once your credit scores begin to increase, you can start selecting cars based on which credit reporting agency the lender uses to determine if you qualify. Obviously, you should choose the lender who uses your highest FICO credit score to make a lending decision.
3. When your scores are high enough...or two years have passed after your bankruptcy...or your bankruptcy doesn't appear on the credit report the lender uses, then you can choose almost any car you like. But make sure you still do your research and use your credit scores to help you compare interest rates, terms and incentives.
http://www.articledashboard.com/Article/Is-it-Better-to-Buy-or-Lease-a-Car-After-Bankruptcy-/119581
It will save you time and frustration—but more importantly, it will help you avoid credit inquiries that may lower your FICO credit scores up to 12 points per inquiry.
Step 1 in making a lease or buy decision is to determine a lender's credit guidelines.
You start by asking if they lend to people with a bankruptcy. If so, on what terms?
That's right. You have to be upfront that you've filed bankruptcy. Don't hide it. We have to face the fact that some dealers just won't work with people who've filed bankruptcy. So our job is to find the ones that do.
Some lenders will only lease to people with a bankruptcy. Others will only offer purchase financing. Yet still others will only lend using a hybrid of the two—this is especially common in Texas.
Ask the finance director at the dealership to direct you as to what structure the manufacturer prefers.
And here's a quick tip for you: if your bankruptcy doesn't appear on the credit report your lender pulls—then, in the eyes of the lender, you're not bankrupt.
The only lenders I would consider using are:
- First choice: Captive lenders (car manufacturers)
- Second choice: Banks (not finance companies)
- Third choice: Credit unions
Ninety-nine percent of the cars I've leased over the years have been with captive lenders. Just one was leased by a bank.
That particular deal came from a conversation I had with Amy, the finance manager at the local Land Rover dealership here in Indianapolis. I told her I was open to her financing recommendations, but I preferred financing through the car manufacturer.
I told her my current FICO scores. She immediately said that with my scores she could do better through a local bank. I signed a credit application and told her to go for it.
The next day I signed a lease agreement with that local bank. Being open to her advice literally saved me hundreds of dollars a month on that car.
So be flexible...but be careful. It seems most car dealers call all of their funding sources banks. When in reality some are banks, some are credit unions, and most are sub-prime finance companies.
Here is a list of some of the most commonly used sub-prime auto finance companies:
1. HSBC Automotive
2. Capital One
3. AmeriCredit
4. WFS Financial
You want to pass on the sub-prime finance companies—unless you have exhausted all other options. Sub-prime lenders should be your last resort.
And only use credit unions if they report to all three national credit reporting agencies. How do you find out if a credit union reports to all three credit reporting agencies?
Simple—you ask. Ask the branch manager at the credit union if they report. And after you get the loan, check all three of your credit reports and make sure their trade line appears on each one.
The three worst luxury captive lenders to lease or purchase from after bankruptcy are:
1. BMW
2. Mercedes
3. Porsche
The three worst mainstream captive lenders are:
What makes these the worst?
Once these lenders see that you've filed bankruptcy, they are less likely to work with you. However, if they are willing to work with you, they'll want you to be at least several years from discharge and have perfect credit during that time.
Now that I told you how bad the above six lenders are—there are times where they may offer you good deals. For example, if one of the above happens to be the biggest dealer in your area, they may be able to offer you special deals that a smaller dealer can't.
Of course, things change all the time with captive auto lenders. They change their credit guidelines on a whim to meet their own financial goals. So, it's always a good idea to at least research these dealerships—just don't get your hopes up too high.
OK, so you've done your research and narrowed down your choice to one or two car manufacturers.
Step 2 in making a lease or buy decision is to purchase your FICO credit scores.
It's important you have your most recent scores when you talk to car dealers (just like I did with Amy). It puts you in charge.
When you enter a dealership with your FICO scores, the dealer will know you're a more informed consumer and cannot be taken advantage of. Just know that the FICO credit scores auto dealers use are a little different than what we see as consumers. The scores the dealers review are called FICO Auto Industry Option Scores. The good news...these FICO scores may be higher than your normal FICO scores if you paid all previous auto loans as agreed.
Some car dealers have told me that if your FICO scores are higher than the scores the dealer reviews—they may even use your scores to get a better deal.
You can buy your scores from myFICO.com.
Step 3 is to interview the remaining car dealers on a deeper level.
Start by asking them these questions:
- Which credit reporting agency do you use to make a lending decision?
- What is your minimum credit score requirement to get approved?
- What credit score is needed to get the best interest rate?
- Do your lenders prefer offering lease or purchase financing to a bankrupt debtor?
- What incentives are there to lease or purchase right now?
At this point it's important to remain open to either leasing or purchasing. Evaluate your options and incentives. Remember, you're buying the financing. In other words, the most important factor is the willingness of the lender to loan you money.
I personally view the lease versus buy decision in three ways:
1. If you're recently recovering from bankruptcy, the only thing that matters is if you can get approved at an interest rate you can afford through a lender that reports to all three national credit reporting agencies. So you should only consider lenders that are bankruptcy friendly.
2. Once your credit scores begin to increase, you can start selecting cars based on which credit reporting agency the lender uses to determine if you qualify. Obviously, you should choose the lender who uses your highest FICO credit score to make a lending decision.
3. When your scores are high enough...or two years have passed after your bankruptcy...or your bankruptcy doesn't appear on the credit report the lender uses, then you can choose almost any car you like. But make sure you still do your research and use your credit scores to help you compare interest rates, terms and incentives.
http://www.articledashboard.com/Article/Is-it-Better-to-Buy-or-Lease-a-Car-After-Bankruptcy-/119581
2 Types Of Personal Bankruptcy
Throughout the United States, bankruptcy laws are made the same by the federal government and are taken care of by the US Bankruptcy Courts. Yearly, over one million people file for bankruptcy. This figure consists of individuals who file chapters 13 and 7. Individuals also may qualify for chapter 12 if they are an angler or a farmer and it is a family owned business.
When you file for bankruptcy and use a chapter 7, you have to submit all your assets to the court and an assigns a trustee to liquidate all items to produce money to pay creditors. There are some things that are protected by law, these items are called exemptions. With chapter 7, almost all of the debt, but a small amount is considered paid. Support and alimony, student loans are not included in this bankruptcy chapter.
You can file for bankruptcy every seven years and it costs about three hundred dollars for the filing fee. A chapter 13 on the other hand reduces a debt but does not cancel it out as a chapter 7 can do. With the chapter 13, you make a repayment plan with the courts and creditors with a trustee who makes the payments monthly after you give them the money. They divide the money up and distribute to the creditors. With a chapter 13, you keep everything that you would have loss doing a chapter 7 bankruptcy. These two types of personal bankruptcy help many people become debt free.
If you plan to file chapter 13, your debt has to be less than two hundred and fifty thousand dollars for unsecured debt and seven hundred and fifty thousand for secured debts. Secured debts are debts that have property as collateral and unsecured debts would be credit cards and things like medical bills.
When you file a chapter 13 your credit does not receive the severe impact that chapter 7 does because you are paying the debt only slower and a chapter 7 you do not pay the debt. If you file a chapter 7, it will take many years to obtain credit where as a chapter 13 might only take you two years. If you do obtain credit, plan to pay a high interest rate until your credit score improves.
If you file for bankruptcy, you need to consider the ratifications your actions will have when you finally decide to receive some type of credit, such as a credit card or a loan. If you can file a chapter 13, you would be better off than filing a chapter 7, which shows creditors you do not pay your debts.
http://www.articledashboard.com/Article/2-Types-Of-Personal-Bankruptcy/265865
When you file for bankruptcy and use a chapter 7, you have to submit all your assets to the court and an assigns a trustee to liquidate all items to produce money to pay creditors. There are some things that are protected by law, these items are called exemptions. With chapter 7, almost all of the debt, but a small amount is considered paid. Support and alimony, student loans are not included in this bankruptcy chapter.
You can file for bankruptcy every seven years and it costs about three hundred dollars for the filing fee. A chapter 13 on the other hand reduces a debt but does not cancel it out as a chapter 7 can do. With the chapter 13, you make a repayment plan with the courts and creditors with a trustee who makes the payments monthly after you give them the money. They divide the money up and distribute to the creditors. With a chapter 13, you keep everything that you would have loss doing a chapter 7 bankruptcy. These two types of personal bankruptcy help many people become debt free.
If you plan to file chapter 13, your debt has to be less than two hundred and fifty thousand dollars for unsecured debt and seven hundred and fifty thousand for secured debts. Secured debts are debts that have property as collateral and unsecured debts would be credit cards and things like medical bills.
When you file a chapter 13 your credit does not receive the severe impact that chapter 7 does because you are paying the debt only slower and a chapter 7 you do not pay the debt. If you file a chapter 7, it will take many years to obtain credit where as a chapter 13 might only take you two years. If you do obtain credit, plan to pay a high interest rate until your credit score improves.
If you file for bankruptcy, you need to consider the ratifications your actions will have when you finally decide to receive some type of credit, such as a credit card or a loan. If you can file a chapter 13, you would be better off than filing a chapter 7, which shows creditors you do not pay your debts.
http://www.articledashboard.com/Article/2-Types-Of-Personal-Bankruptcy/265865
Helpful Bankruptcy Advice
It seems that financial problems are occurring more commonly today than ever before. Before you make any quick decisions you should explore all of your alternative options to bankruptcy. There are laws that are changing to make bankruptcy difficult in certain areas because there are massive amounts of bankruptcies occurring.
There are so many places that offer bankruptcy advice to those who seem to be on the road to filing. You should consult a highly qualified representative from a well-known company to help you understand all of your problems and options. These companies have a main objective that is to help you deal with the complications involved in handling your financial issues.
You can find companies that offer you several options that you didn’t even know were available. One such option is the IVA that basically gives you the ability to write off your debt in less than five years.
With this option you are required to create a legal contract between you and all of your creditors. The CVA also requires that you and your creditors create a contract. You still may have to provide a settlement or create a compromise while you cease trading.
If you feel that you are headed towards bankruptcy then you should locate an administrator to give you quality advice and help you with your financial issues. An administrator will help you manage your company’s affairs, business, and property. It is always important to invest in a well-qualified administrator.
Another important option for you is liquidation. This may keep you from having to file for bankruptcy. Liquidation allows you to sell of all of your assets in an attempt to pay off your existing debts. If this option still will not clear up your financial issues than bankruptcy is the only alternative by getting your debts legally discharged.
http://www.articledashboard.com/Article/Helpful-Bankruptcy-Advice/292420
There are so many places that offer bankruptcy advice to those who seem to be on the road to filing. You should consult a highly qualified representative from a well-known company to help you understand all of your problems and options. These companies have a main objective that is to help you deal with the complications involved in handling your financial issues.
You can find companies that offer you several options that you didn’t even know were available. One such option is the IVA that basically gives you the ability to write off your debt in less than five years.
With this option you are required to create a legal contract between you and all of your creditors. The CVA also requires that you and your creditors create a contract. You still may have to provide a settlement or create a compromise while you cease trading.
If you feel that you are headed towards bankruptcy then you should locate an administrator to give you quality advice and help you with your financial issues. An administrator will help you manage your company’s affairs, business, and property. It is always important to invest in a well-qualified administrator.
Another important option for you is liquidation. This may keep you from having to file for bankruptcy. Liquidation allows you to sell of all of your assets in an attempt to pay off your existing debts. If this option still will not clear up your financial issues than bankruptcy is the only alternative by getting your debts legally discharged.
http://www.articledashboard.com/Article/Helpful-Bankruptcy-Advice/292420
Learn The Pros And Cons Of Bankruptcy
People have to file for bankruptcy and therefore there are pros and cons of bankruptcy that need to be understood before taking the final leap. The decision to file for any chapter of bankruptcy is a decision that many people struggle with daily. Even big businesses struggle with the decision as well. Before filing for bankruptcy, sit down with a credit counselor and decide the best options for you and your family. Keep in mind that filing for chapter 7 and chapter 13 has a mandatory requirement for credit counseling.
Let us look at some of the pros of bankruptcy:
* It will wipe out all your debts and allow one low repayment for five years.
* Creditors usually reduce the debt owed, which lowers your total debt.
* You get a fresh start and can start building a new and positive credit report.
* Depending on the chapter of bankruptcy, you can retain procession of all your assets.
Let us now look at some of the cons of bankruptcy:
* You need to wait at least two years before trying to apply for a loan or credit card.
* You take a chance of losing some of your assets, depending on what chapter of bankruptcy you file.
* You have to pay a lawyer in advance for representing you in the proceeding.
* Your credit history does suffer until you start your credit repair and build up good credit again.
* If you get in debt again, you cannot file for another seven years, thus debt could plague you severely the next time.
If you read the pros and cons of bankruptcy, you will have a better idea about what you can expect during and after the bankruptcy. This is important for many people considering such a big step in their financial future. If you have other alternatives, many people try to work things out a different way.
You can use a credit counselor to arrange a repayment plan without filing for bankruptcy that most people do not understand or have any knowledge of this process. This might be an ideal way for you to relieve your debt and still keep a bankruptcy off your credit report. When you know the pros and cons of bankruptcy, it makes it easier to decide.
Check with a lawyer and he will probably have some other legal pros and cons of bankruptcy you may need to know that sit more in the legal grounds of bankruptcy.
http://www.articledashboard.com/Article/Learn-The-Pros-And-Cons-Of-Bankruptcy/258157
Let us look at some of the pros of bankruptcy:
* It will wipe out all your debts and allow one low repayment for five years.
* Creditors usually reduce the debt owed, which lowers your total debt.
* You get a fresh start and can start building a new and positive credit report.
* Depending on the chapter of bankruptcy, you can retain procession of all your assets.
Let us now look at some of the cons of bankruptcy:
* You need to wait at least two years before trying to apply for a loan or credit card.
* You take a chance of losing some of your assets, depending on what chapter of bankruptcy you file.
* You have to pay a lawyer in advance for representing you in the proceeding.
* Your credit history does suffer until you start your credit repair and build up good credit again.
* If you get in debt again, you cannot file for another seven years, thus debt could plague you severely the next time.
If you read the pros and cons of bankruptcy, you will have a better idea about what you can expect during and after the bankruptcy. This is important for many people considering such a big step in their financial future. If you have other alternatives, many people try to work things out a different way.
You can use a credit counselor to arrange a repayment plan without filing for bankruptcy that most people do not understand or have any knowledge of this process. This might be an ideal way for you to relieve your debt and still keep a bankruptcy off your credit report. When you know the pros and cons of bankruptcy, it makes it easier to decide.
Check with a lawyer and he will probably have some other legal pros and cons of bankruptcy you may need to know that sit more in the legal grounds of bankruptcy.
http://www.articledashboard.com/Article/Learn-The-Pros-And-Cons-Of-Bankruptcy/258157
Is Chapter 11 Bankruptcy For You
If your business is having trouble and you need to file for bankruptcy your lawyer will most likely suggest a chapter 11. A chapter 11 begins with you filing a petition with the court. You will also have to state a reorganization plan for the business in order to settle your affairs.
A chapter 11 is used to reorganize a business whether it is a corporation, partnership or other business entity. You will also have to hire a lawyer if you do not already have one to help you file the appropriate paperwork. The U.S. trustee will be overseeing your case. They will monitor your business to see if you are implementing the plan you filed and may even conduct a meeting with your creditors to come to an agreeable solution.
With a chapter 11 it is appropriate for the company to look at the value of their assets as a total business against the value of the individual parts. It may be that the total value of the business is more than the individual value, which is when a chapter 11 can be filed. A larger company may offer to buy out your business to save you from a chapter 11 bankruptcy or you may end up reorganizing it yourself and speaking with the creditors.
Depending upon the complexity of your case you could be out from under the bankruptcy in as little as three months or it may take years of the courts and your time to reach an agreement. During a chapter 11 bankruptcy any assets will be counted as value and may end up being sold if your creditors cannot find an agreement.
If you have any stock on the market it may be unlisted once you file for a bankruptcy to protect the stockholders and anyone else who may wish to invest in your stock. You have other alternatives if you believe a chapter 11 bankruptcy will not work for you.
You can file either a chapter 7 or chapter 13 bankruptcy, but again you will need to speak with a lawyer about, which bankruptcy will be the best option for you and your business. Most individuals are not subject to bankruptcy when their company is a corporation or partnership. There are businesses where the owner is also liable for the debts owed and in this case they may also be filing bankruptcy as part of the business. Chapter 11 is a very difficult bankruptcy to understand because of the intricacies of reorganizing the business.
http://www.articledashboard.com/Article/Is-Chapter-11-Bankruptcy-For-You/240897
A chapter 11 is used to reorganize a business whether it is a corporation, partnership or other business entity. You will also have to hire a lawyer if you do not already have one to help you file the appropriate paperwork. The U.S. trustee will be overseeing your case. They will monitor your business to see if you are implementing the plan you filed and may even conduct a meeting with your creditors to come to an agreeable solution.
With a chapter 11 it is appropriate for the company to look at the value of their assets as a total business against the value of the individual parts. It may be that the total value of the business is more than the individual value, which is when a chapter 11 can be filed. A larger company may offer to buy out your business to save you from a chapter 11 bankruptcy or you may end up reorganizing it yourself and speaking with the creditors.
Depending upon the complexity of your case you could be out from under the bankruptcy in as little as three months or it may take years of the courts and your time to reach an agreement. During a chapter 11 bankruptcy any assets will be counted as value and may end up being sold if your creditors cannot find an agreement.
If you have any stock on the market it may be unlisted once you file for a bankruptcy to protect the stockholders and anyone else who may wish to invest in your stock. You have other alternatives if you believe a chapter 11 bankruptcy will not work for you.
You can file either a chapter 7 or chapter 13 bankruptcy, but again you will need to speak with a lawyer about, which bankruptcy will be the best option for you and your business. Most individuals are not subject to bankruptcy when their company is a corporation or partnership. There are businesses where the owner is also liable for the debts owed and in this case they may also be filing bankruptcy as part of the business. Chapter 11 is a very difficult bankruptcy to understand because of the intricacies of reorganizing the business.
http://www.articledashboard.com/Article/Is-Chapter-11-Bankruptcy-For-You/240897
What Is The Filing Process For Bankruptcy
Did you know you could file your own bankruptcy papers? You can and many people do, but sometimes a lawyer might have some suggestions that you do not realize. If you do choose to file your own papers, be aware of the new laws about bankruptcy enacted in October of 2005.
Once you decide to file your own bankruptcy papers, you need to determine which chapter to file under and then understand all the guidelines associated with the chapter. The best thing to do is find out all the information about the chapters and what is needed to file that specific chapter of bankruptcy.
The filing process requires a great deal of paperwork and correct information. If you feel confident enough to take on this proceeding, you will need to have all your creditors, personal information and then file your papers with the court.
When the papers are file with the court, a court appointed trustee will be assigned to your case. This person will go over all the paperwork and check it for accuracy. After this process, the creditors need to be informed of your intentions to file for bankruptcy so they stop all collection actions against you until further notice. Next, you have meetings with creditors to work out an arraignment.
If you choose to have a representative take care of your financial affairs, such as a lawyer, you need to supply them with all the information needed to properly represent you in the proceedings. Once you decide on a lawyer, you will need to determine the legal fees before hand and plan on paying them before the completion of the file process and bankruptcy hearing.
Many states require you to file a deed called a homestead deed. Depending on the type of chapter you file you may need to file other papers as well. Possible other paperwork might include the reaffirmation agreements, objection exemptions, declarations of homestead and objections to discharge of all or some of the debt. There are many different things that need to be taken care of in the filing process and in some cases; a lawyer is more knowledgeable about these things.
If you choose to do a chapter 13 bankruptcy, you may pay your legal fees from your assets of your estate. If you file a chapter 7 bankruptcy, you cannot do this in any cases. Normally all fees are up front and the lawyer requests a percentage before starting all proceedings.
If you decide to file yourself, you will need to go for credit counseling and may choose a non-profit organization for free services. Then you will need to meet with the trustee to discuss what you can pay and how long you have to repay your debts. No one ever gets away without paying anything; the new laws protect everyone including the creditors from debtors that do not pay. Talk to a lawyer before deciding to represent yourself to find out some important information that you might not realize.
http://www.articledashboard.com/Article/What-Is-The-Filing-Process-For-Bankruptcy/250913
Once you decide to file your own bankruptcy papers, you need to determine which chapter to file under and then understand all the guidelines associated with the chapter. The best thing to do is find out all the information about the chapters and what is needed to file that specific chapter of bankruptcy.
The filing process requires a great deal of paperwork and correct information. If you feel confident enough to take on this proceeding, you will need to have all your creditors, personal information and then file your papers with the court.
When the papers are file with the court, a court appointed trustee will be assigned to your case. This person will go over all the paperwork and check it for accuracy. After this process, the creditors need to be informed of your intentions to file for bankruptcy so they stop all collection actions against you until further notice. Next, you have meetings with creditors to work out an arraignment.
If you choose to have a representative take care of your financial affairs, such as a lawyer, you need to supply them with all the information needed to properly represent you in the proceedings. Once you decide on a lawyer, you will need to determine the legal fees before hand and plan on paying them before the completion of the file process and bankruptcy hearing.
Many states require you to file a deed called a homestead deed. Depending on the type of chapter you file you may need to file other papers as well. Possible other paperwork might include the reaffirmation agreements, objection exemptions, declarations of homestead and objections to discharge of all or some of the debt. There are many different things that need to be taken care of in the filing process and in some cases; a lawyer is more knowledgeable about these things.
If you choose to do a chapter 13 bankruptcy, you may pay your legal fees from your assets of your estate. If you file a chapter 7 bankruptcy, you cannot do this in any cases. Normally all fees are up front and the lawyer requests a percentage before starting all proceedings.
If you decide to file yourself, you will need to go for credit counseling and may choose a non-profit organization for free services. Then you will need to meet with the trustee to discuss what you can pay and how long you have to repay your debts. No one ever gets away without paying anything; the new laws protect everyone including the creditors from debtors that do not pay. Talk to a lawyer before deciding to represent yourself to find out some important information that you might not realize.
http://www.articledashboard.com/Article/What-Is-The-Filing-Process-For-Bankruptcy/250913
Understanding Chapter 12 Bankruptcy
Chapter 12 bankruptcy covers anglers and farmers. If your income comes from family fishing or farming and you have a steady flow of income in prior years you can qualify for chapter 12 bankruptcy. The chapter 12 covers family businesses in these areas of business. The debt ratio of anglers and farmer is usually too high for chapter 11 and 13, which corporations usually use when filing bankruptcy.
More than fifty percent of your income has to come from the business in order to file under chapter 12 bankruptcies. You must have had this income for more than three years. The loss or debt must not exceed a certain amount if you are a farmer and another amount for an angler. The percentage of the debt must come from the operations of the business as well. Both businesses have different amounts for total debt.
If a corporation or a partnership needs to file a chapter 12 bankruptcy, they need to meet certain guidelines before they can use this bankruptcy law. The guidelines are:
• One family must own over half of the stock in the company. No public trading of stocks can have taken place.
• The family needs to have control over the operations of the business.
• The value of the business that needs a relationship to farming or fishing is eighty percent.
• The total debt for a corporation or partnership for filing bankruptcy is the same amount for the individual farmer or angler.
When filing the needed information for a chapter 12 bankruptcy you need to complete the following:
• Names of creditors and what you owe and the type of claim they hold on your business.
• The amount of income and the source of income for the debtor.
• All the personal and business property you currently own.
• A complete list of your expenses relating to the fishing or farming business.
Keep in mind that married parties need to include their spouse’s information whether they participate in the family business or not.
After the meeting with the creditors and the debtor, a repayment plan will be decided. You have up to ninety days to file the repayment documents that include secured creditors and taxes, which are claims of priority. You must offer something equal to or greater than what you owe for the document to be approved by the courts.
When you file for a chapter 12 bankruptcies, you need to remember that this does not take away any liability from you; you have to repay the money in some way. The laws have changed to protect the creditors who in the past have taken huge losses because of bankruptcies.
http://www.articledashboard.com/Article/Understanding-Chapter-12-Bankruptcy/243649
More than fifty percent of your income has to come from the business in order to file under chapter 12 bankruptcies. You must have had this income for more than three years. The loss or debt must not exceed a certain amount if you are a farmer and another amount for an angler. The percentage of the debt must come from the operations of the business as well. Both businesses have different amounts for total debt.
If a corporation or a partnership needs to file a chapter 12 bankruptcy, they need to meet certain guidelines before they can use this bankruptcy law. The guidelines are:
• One family must own over half of the stock in the company. No public trading of stocks can have taken place.
• The family needs to have control over the operations of the business.
• The value of the business that needs a relationship to farming or fishing is eighty percent.
• The total debt for a corporation or partnership for filing bankruptcy is the same amount for the individual farmer or angler.
When filing the needed information for a chapter 12 bankruptcy you need to complete the following:
• Names of creditors and what you owe and the type of claim they hold on your business.
• The amount of income and the source of income for the debtor.
• All the personal and business property you currently own.
• A complete list of your expenses relating to the fishing or farming business.
Keep in mind that married parties need to include their spouse’s information whether they participate in the family business or not.
After the meeting with the creditors and the debtor, a repayment plan will be decided. You have up to ninety days to file the repayment documents that include secured creditors and taxes, which are claims of priority. You must offer something equal to or greater than what you owe for the document to be approved by the courts.
When you file for a chapter 12 bankruptcies, you need to remember that this does not take away any liability from you; you have to repay the money in some way. The laws have changed to protect the creditors who in the past have taken huge losses because of bankruptcies.
http://www.articledashboard.com/Article/Understanding-Chapter-12-Bankruptcy/243649
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