Filing bankruptcy is a stressful time in a person's life. Along with discharging your debts and gaining a fresh start, you may wonder if you will be able to buy a home after a bankruptcy. The answer is yes! Mortgage companies and online lenders are now offering home loans for those who have a bankruptcy on their credit report. Some lenders will even approve your loan as soon as one day after your bankruptcy has been discharged.
Buying a home after bankruptcy is no longer impossible. There are many reasons a person chooses to file bankruptcy. The loss of a job, unexpected medical bills, and overwhelming credit card debt are just a few of the factors that can lead to filing bankruptcy. The mortgage lending industry has created special loan packages and terms for those who have filed bankruptcy in the past. Lenders have little to lose in approving a home loan after bankruptcy. With your home serving as collateral for the loan, the lender can feel confident in approving you for a home loan, often soon after your bankruptcy has been discharged.
Filing bankruptcy and buying a home are no longer mutually exclusive terms. Both traditional and online lenders can give you a good interest rate and payments you can afford, even after filing bankruptcy. If you have filed Chapter 11 or Chapter 7 bankruptcy and are wondering if you can obtain a home loan, contact a lender today who specializes in approving mortgages after bankruptcy. Interest rates are currently lower that they have been in decades. Even after filing bankruptcy you can get your new home loan approved and receive a great interest rate. Online lenders and mortgage companies are competing for your business. Do not let a past bankruptcy prevent you from purchasing the new home of your dreams.
If you have filed bankruptcy in the past and would like to purchase a home, there are numerous programs and loan products that will suit your needs. Lenders will approve your loan quickly and give you excellent terms on your mortgage. Some lenders will require that a certain amount of time pass before approving a new home loan after a bankruptcy while other lenders can approve your loan in a little as one day after your bankruptcy has been discharged. Now is the perfect time to apply for a mortgage, even if you have filed for bankruptcy in the past.
To view our list of recommended mortgage lenders for buying a home after bankruptcy visit this page: Recommended After Bankruptcy Mortgage Lenders.
Carrie Reeder is the owner of ABC Loan Guide, an information website with articles and the latest news about various types of loans.
Article Source: http://EzineArticles.com/?expert=Carrie_Reeder
Monday, September 24, 2007
Real Estate Bankruptcy
Although real estate bankruptcy cases no longer dominate the bankruptcy courts' dockets as they did in the early nineties, but they continue to be filed with great frequency in UK. At its essence, the real estate bankruptcy is a two party dispute between mortgagee and mortgagor. Real estate bankruptcy cases are typically filed after a foreclosure sale has been set. Upon learning of the bankruptcy filing, a secured creditor has a number of available options, all or some of which should be exercised, depending on the facts of the case, to maximize loan recovery.
A lender can ask the court to dismiss the bankruptcy case as a "bad faith" filing. A creditor asserting bad faith must prove the subjective bad faith of the debtor and that any reorganization by the debtor is objectively futile. For subjective bad faith, the court will examine whether the debtor invoked the protections of the Bankruptcy Code without either the intention or ability to reorganize its financial affairs. To determine objective futility, the court will examine whether there is indeed a "going concern" to preserve and whether there is any realistic chance for the debtor to reorganize. Most courts require a very strong showing to dismiss a case for bad faith at the outset of a case.
Under the Bankruptcy Code a motion for relief from stay will also be granted where the secured creditor can prove that there is no equity in the real property over and above the secured claims, and that the property is not necessary to the debtor's effective reorganization. This basis for relief is typically alleged as an alternative to bad faith, in the same motion. Almost all controversies surround the value of the real property, making the expert report and testimony of a licensed real estate appraiser essential to the successful prosecution of a motion for relief from the automatic stay on these grounds. The same factors relied upon to support objective futility in the bad faith filing analysis are used to establish that the property is not necessary to an effective reorganization.
An alternate ground for relief from the automatic stay is lack of adequate protection of the secured creditor's interest in the property. For example, if the real property is deteriorating in value and the lender is not receiving post-petition payments, the lender's security interest in the property is not adequately protected.
A creditor holding a properly perfected assignment of rents has a lien on "cash collateral" under the Bankruptcy Code. If the assignment of rents was properly perfected pre-petition, it usually attaches to the post-petition rents generated by the debtor's real property.
A debtor may not use cash collateral without either a court order or the consent of the secured creditor. While it is common in nonsingle asset realty cases for a debtor to negotiate a cash collateral agreement with the secured creditor before filing for bankruptcy, in single asset real estate cases, which are typically filed at the eleventh hour for the express purpose of stopping a foreclosure, such negotiations are virtually nonexistent.
Unless, within the first day or two of the case, the debtor requests a cash collateral agreement with the lender, or files a motion with the court to authorize the debtor's use of post-petition rents, a lender should immediately advise the debtor in writing that it may not use cash collateral absent an agreement. If an agreement is not reached, the debtor will usually petition the court for authorization on an emergency basis. The lender can also petition the court to deny authorization on the basis that the debtor lacks the ability to adequately protect its interests in the rents. In the final analysis, most secured creditors share the same objective when faced with a real estate case: to extract their collateral, including rents, from the bankruptcy as quickly and inexpensively as possible.
Article Source: http://EzineArticles.com/?expert=Sajjad_Ahmad
A lender can ask the court to dismiss the bankruptcy case as a "bad faith" filing. A creditor asserting bad faith must prove the subjective bad faith of the debtor and that any reorganization by the debtor is objectively futile. For subjective bad faith, the court will examine whether the debtor invoked the protections of the Bankruptcy Code without either the intention or ability to reorganize its financial affairs. To determine objective futility, the court will examine whether there is indeed a "going concern" to preserve and whether there is any realistic chance for the debtor to reorganize. Most courts require a very strong showing to dismiss a case for bad faith at the outset of a case.
Under the Bankruptcy Code a motion for relief from stay will also be granted where the secured creditor can prove that there is no equity in the real property over and above the secured claims, and that the property is not necessary to the debtor's effective reorganization. This basis for relief is typically alleged as an alternative to bad faith, in the same motion. Almost all controversies surround the value of the real property, making the expert report and testimony of a licensed real estate appraiser essential to the successful prosecution of a motion for relief from the automatic stay on these grounds. The same factors relied upon to support objective futility in the bad faith filing analysis are used to establish that the property is not necessary to an effective reorganization.
An alternate ground for relief from the automatic stay is lack of adequate protection of the secured creditor's interest in the property. For example, if the real property is deteriorating in value and the lender is not receiving post-petition payments, the lender's security interest in the property is not adequately protected.
A creditor holding a properly perfected assignment of rents has a lien on "cash collateral" under the Bankruptcy Code. If the assignment of rents was properly perfected pre-petition, it usually attaches to the post-petition rents generated by the debtor's real property.
A debtor may not use cash collateral without either a court order or the consent of the secured creditor. While it is common in nonsingle asset realty cases for a debtor to negotiate a cash collateral agreement with the secured creditor before filing for bankruptcy, in single asset real estate cases, which are typically filed at the eleventh hour for the express purpose of stopping a foreclosure, such negotiations are virtually nonexistent.
Unless, within the first day or two of the case, the debtor requests a cash collateral agreement with the lender, or files a motion with the court to authorize the debtor's use of post-petition rents, a lender should immediately advise the debtor in writing that it may not use cash collateral absent an agreement. If an agreement is not reached, the debtor will usually petition the court for authorization on an emergency basis. The lender can also petition the court to deny authorization on the basis that the debtor lacks the ability to adequately protect its interests in the rents. In the final analysis, most secured creditors share the same objective when faced with a real estate case: to extract their collateral, including rents, from the bankruptcy as quickly and inexpensively as possible.
Article Source: http://EzineArticles.com/?expert=Sajjad_Ahmad
Chapter 7 Bankruptcy Regulations - Exempt vs Non-Exempt Property
Chapter 7 bankruptcy requires for the liquidation of debtor’s assets in order to pay back money owed to debtors. Nevertheless, the government allows individuals to retain certain belongings which are referred to as Exempt Property, while other assets, known as Non-exempt property, are automatically placed in the hands of a court trustee to be sold off. While specific exemptions and values vary from state to state, the following is a general listing of exempt and non-exempt property for individuals filing Chapter 7 bankruptcy:
Exempt Property:
1. Home Equity, up to a certain value.
2. Motor Vehicles, up to a certain value.
3. Household Appliances.
4. Household furnishings deemed reasonably necessary.
5. Clothing deemed reasonably necessary.
6. Jewelry, up to a certain value.
7. Earned wages not yet paid, up to a certain value.
8. Tools used by the debtor as part of his profession, up to a certain value.
9. Pensions.
10. Government assistance: welfare, social security, unemployment.
11. Compensation awarded due to personal injury.
Non-Exempt Property
1. Cash, stocks, bonds, bank accounts, and other investments.
2. Family heirlooms.
3. A second motor vehicle.
4. A second home.
5. Expensive musical instruments that are not necessary for the debtor’s profession.
6. Personal Collections: coins, stamps, or other valuable items
7. Belongings deemed not reasonably necessary or that exceed determined values.
Please remember that before you make any decision about filing any form of bankruptcy you should consult with a profession. He or she will be able to explain your options to you in a more thorough manner. This will help you become more informed about all of you debt management options and possibly prevent you from making a decision that you might regret in the future.
Scott Wallitsch is a financial consultant for DebtorSolution. To find out more about Chapter 7 Bankruptcy, visit our website or email us at Info@DebtorSolution.com.
Article Source: http://EzineArticles.com/?expert=Scott_Wallitsch
Exempt Property:
1. Home Equity, up to a certain value.
2. Motor Vehicles, up to a certain value.
3. Household Appliances.
4. Household furnishings deemed reasonably necessary.
5. Clothing deemed reasonably necessary.
6. Jewelry, up to a certain value.
7. Earned wages not yet paid, up to a certain value.
8. Tools used by the debtor as part of his profession, up to a certain value.
9. Pensions.
10. Government assistance: welfare, social security, unemployment.
11. Compensation awarded due to personal injury.
Non-Exempt Property
1. Cash, stocks, bonds, bank accounts, and other investments.
2. Family heirlooms.
3. A second motor vehicle.
4. A second home.
5. Expensive musical instruments that are not necessary for the debtor’s profession.
6. Personal Collections: coins, stamps, or other valuable items
7. Belongings deemed not reasonably necessary or that exceed determined values.
Please remember that before you make any decision about filing any form of bankruptcy you should consult with a profession. He or she will be able to explain your options to you in a more thorough manner. This will help you become more informed about all of you debt management options and possibly prevent you from making a decision that you might regret in the future.
Scott Wallitsch is a financial consultant for DebtorSolution. To find out more about Chapter 7 Bankruptcy, visit our website or email us at Info@DebtorSolution.com.
Article Source: http://EzineArticles.com/?expert=Scott_Wallitsch
About Bankruptcy
What is bankruptcy?
Bankruptcy is one way of dealing with debts you cannot pay. The bankruptcy proceedings Can free you from overwhelming debts so you can make a fresh start, subject to some restrictions and make sure your assets are shared out fairly among your creditors. Anyone can go bankrupt, including individual members of a partnership. There are different insolvency procedures for dealing with companies and for partnerships themselves. Separate leaflets about these insolvency procedures are available.
A court makes a bankruptcy order only after a bankruptcy petition has been presented. It is usually presented either:
by yourself (debtor’s petition); or
by one or more creditors who are owed at least £750 by you and that amount is unsecured (creditor’s petition).
A bankruptcy order can still be made even if you refuse to acknowledge the proceedings or refuse to agree to them. You should therefore co-operate fully once the bankruptcy proceedings have begun. If you dispute the creditor’s claim, you should try and reach a settlement before the bankruptcy petition is due to be heard. Trying to do so after the bankruptcy order has been made is both difficult and expensive.
Bankruptcy petitions are usually presented at the High Court in London or at a county court near to where you trade or live. A petition can be presented against you even if you are not present in England or Wales at that time. This can happen when: you normally live in, or within the previous 3 years have had residential or business connections with, England or Wales.
Sometimes government departments start bankruptcy proceedings in the High Court in London or in one of the District Registries. If you did not trade or do not live in the London area, your case will usually be transferred to the appropriate local county court and, if a bankruptcy order is made, it will be dealt with by the local Official Receiver.
Once the bankruptcy order has been made, it is advertised in “The London Gazette” (an official publication which contains legal notices) and in a local or national newspaper (or both). In addition the Official Receiver will give written notice of the order to a number of organisations.
There are alternatives to going bankrupt, to find out more information please see the see the link on this page, and call an experienced Advisor.
Advanced Finance have many years dealing with clients with a bad credit history, and know of many ways of avoiding bankruptcy, however if bankruptcy is something that a client wants to do then Advanced Finance can help.
For more information on homeowner loans then please visit advanced-finance.co.uk
Article Source: http://EzineArticles.com/?expert=Ben_Austin
Bankruptcy is one way of dealing with debts you cannot pay. The bankruptcy proceedings Can free you from overwhelming debts so you can make a fresh start, subject to some restrictions and make sure your assets are shared out fairly among your creditors. Anyone can go bankrupt, including individual members of a partnership. There are different insolvency procedures for dealing with companies and for partnerships themselves. Separate leaflets about these insolvency procedures are available.
A court makes a bankruptcy order only after a bankruptcy petition has been presented. It is usually presented either:
by yourself (debtor’s petition); or
by one or more creditors who are owed at least £750 by you and that amount is unsecured (creditor’s petition).
A bankruptcy order can still be made even if you refuse to acknowledge the proceedings or refuse to agree to them. You should therefore co-operate fully once the bankruptcy proceedings have begun. If you dispute the creditor’s claim, you should try and reach a settlement before the bankruptcy petition is due to be heard. Trying to do so after the bankruptcy order has been made is both difficult and expensive.
Bankruptcy petitions are usually presented at the High Court in London or at a county court near to where you trade or live. A petition can be presented against you even if you are not present in England or Wales at that time. This can happen when: you normally live in, or within the previous 3 years have had residential or business connections with, England or Wales.
Sometimes government departments start bankruptcy proceedings in the High Court in London or in one of the District Registries. If you did not trade or do not live in the London area, your case will usually be transferred to the appropriate local county court and, if a bankruptcy order is made, it will be dealt with by the local Official Receiver.
Once the bankruptcy order has been made, it is advertised in “The London Gazette” (an official publication which contains legal notices) and in a local or national newspaper (or both). In addition the Official Receiver will give written notice of the order to a number of organisations.
There are alternatives to going bankrupt, to find out more information please see the see the link on this page, and call an experienced Advisor.
Advanced Finance have many years dealing with clients with a bad credit history, and know of many ways of avoiding bankruptcy, however if bankruptcy is something that a client wants to do then Advanced Finance can help.
For more information on homeowner loans then please visit advanced-finance.co.uk
Article Source: http://EzineArticles.com/?expert=Ben_Austin
Your Credit Report After Bankruptcy-What To Look For
Do you KNOW what is on your credit report? Even if you have just filed bankruptcy it is EXTREMELY important that you KNOW how it is reported on your credit report. It is NOT the credit reporting agencies responsibility to make sure that your credit report is accurate. It is YOURS, and only you can make sure that it is.
After receiving your bankruptcy discharge papers the first thing you will want to do is get a copy of your credit report and make sure that the information reported on it is correct. Did you know that over 90% of the time it is incorrect?
You wll want to make sure that your report is showing the date the bankruptcy was filed and when it was discharged. Make sure that ALL creditors that you included in the bankruptcy are showing that they were and that your balance is $0 and nothing else. Profit & Loss or Charge Offs will lower your credit score. Make sure they report as "included in bankruptcy" with a $0.00 balance.
If a creditor shows any balance other than $0.00 and it was included in the bankruptcy it will lower your credit score. It will by your responsibility to contact the creditor and have them update your credit report to show the correct information. Be prepared, you may need to contact them several times before they get it right. But don't stop until it is.
Did you also know your credit score will go up after a bankruptcy? Why? Because all past due, profit & loss and charge offs will now show a balance of $0 instead of a balance past due.
Did you know that if your credit score is over 500 you can purchase a home and get 100% financing? That's right!! However, you need to realize that you will be paying a premium price in the closing costs and interest rate. If you do some credit repair and wait until the bankruptcy is two years old you can qualify for a Fannie Mae low interest rate loan.
Remember, you are responsible for your own credit report. No one else is going to care about it as much as you. Start working on it now, it's never to late.
Learn how to go from bankruptcy to living a life of financial freedom. At http://www.life-after-bankruptcy.com you will discover step by step how to change your life and finally live debt free and financially free.
Article Source: http://EzineArticles.com/?expert=Karla_Fiscus
After receiving your bankruptcy discharge papers the first thing you will want to do is get a copy of your credit report and make sure that the information reported on it is correct. Did you know that over 90% of the time it is incorrect?
You wll want to make sure that your report is showing the date the bankruptcy was filed and when it was discharged. Make sure that ALL creditors that you included in the bankruptcy are showing that they were and that your balance is $0 and nothing else. Profit & Loss or Charge Offs will lower your credit score. Make sure they report as "included in bankruptcy" with a $0.00 balance.
If a creditor shows any balance other than $0.00 and it was included in the bankruptcy it will lower your credit score. It will by your responsibility to contact the creditor and have them update your credit report to show the correct information. Be prepared, you may need to contact them several times before they get it right. But don't stop until it is.
Did you also know your credit score will go up after a bankruptcy? Why? Because all past due, profit & loss and charge offs will now show a balance of $0 instead of a balance past due.
Did you know that if your credit score is over 500 you can purchase a home and get 100% financing? That's right!! However, you need to realize that you will be paying a premium price in the closing costs and interest rate. If you do some credit repair and wait until the bankruptcy is two years old you can qualify for a Fannie Mae low interest rate loan.
Remember, you are responsible for your own credit report. No one else is going to care about it as much as you. Start working on it now, it's never to late.
Learn how to go from bankruptcy to living a life of financial freedom. At http://www.life-after-bankruptcy.com you will discover step by step how to change your life and finally live debt free and financially free.
Article Source: http://EzineArticles.com/?expert=Karla_Fiscus
Life After Bankruptcy: 7 Tips To Get Your Life On Track After Bankruptcy
A life in bankruptcy is not an unbearable phase if you look at it from a positive angle. If you found it unbearable, I'm sure you won't want to go through it again. While the court 'reorganizes' you by selling your personal assets to pay off your debts, so too you must reorganize your thoughts and look forward to live a life of prudence.
Here are 7 tips you can apply to get your life back on track as soon as possible so that you can find a way to return to a lifestyle of less financial worries and gradually break free from the shackles of an unpleasant past.
1) Seek sincere help. In modern societies where urbanites get too busy in their own lives, it is not surprising to have people whom you know suddenly turn their backs on you when you seek their assistance. It's like they are thinking, "I can't believe it. I've never been a bankrupt so why are you so deep in the dumps?" Forget about these people. Your immediate family will be the first to know your situation and only they can give you continued love and support. Make a checklist of names and how they can help you as much as what you can do for them, as well as (very) close friends whom you know can depend on.
2) Be responsible. And I mean REALLY responsible. Once bitten twice shy; don't get mired in debt again. You can blame on exorbitant increase in the cost of living, that business partner who sued you or the failing stock market but they are not going to say sorry anytime. It's time to take a critical look at your spending habits and evaluate them, understanding where you have wasted and invested your money. Do a monthly plan-and-review for your savings and expenditure. A very good hint of wastage is putting your money in places you don't know much of. Learn how to disengage from risks which you can't afford to get involved.
3) Get paid work immediately. Get your life productive again. There is no more greater blessing than learning to appreciate your ability to earn your keeps. Within your checklist, you should have a couple of people whom you can approach in this area. Leverage on your experience and expertise to make an offer of what you can contribute to their benefit.
4) Join a credit union. Such helpful organizations can offer loans which normal institutions like banks will not do otherwise, but make sure there's confidence on both sides that you can repay the loan.
5) Far too many people never had a concrete financial/retirement plan even though they know it's important. Engage a financial advisor to be your personal counsel. Set aside cash reserves for rainy days or emergencies. Find adequate insurance to protect your remaining assets and family. Avoid high-risk ventures or 'investments'.
6) Keep track of all debts due and paid to your creditors. Make sure your credit report is updated for the record.
7) Sharpen your financial literacy. Robert Kiyosaki, author of "Rich Dad, Poor Dad" is a strong advocate for personal fiancial education. You can always pick up financial literature along the way and think about how you may change the way you look at your wealth. You never know how truly rich people think differently about their money from the rest of us.
As the saying goes, "Time heal all wounds." It will take years to be a 'normal' person again, but once you know you have attained the discipline to practice good habits, there's no reason how you can fall back to the old self. As you become wiser, you can better inform others about the unhealthy influences of commercialism and consumerism.
Justin Koh is a freelance writer whose articles have appear in most major ezines. You can find more of these at: http://www.bankruptcycentral.info
You have permission to publish this article electronically or in print, free of charge, as long as the bylines are included. A courtesy copy of your publication would be appreciated.
Article Source: http://EzineArticles.com/?expert=Justin_Koh
Here are 7 tips you can apply to get your life back on track as soon as possible so that you can find a way to return to a lifestyle of less financial worries and gradually break free from the shackles of an unpleasant past.
1) Seek sincere help. In modern societies where urbanites get too busy in their own lives, it is not surprising to have people whom you know suddenly turn their backs on you when you seek their assistance. It's like they are thinking, "I can't believe it. I've never been a bankrupt so why are you so deep in the dumps?" Forget about these people. Your immediate family will be the first to know your situation and only they can give you continued love and support. Make a checklist of names and how they can help you as much as what you can do for them, as well as (very) close friends whom you know can depend on.
2) Be responsible. And I mean REALLY responsible. Once bitten twice shy; don't get mired in debt again. You can blame on exorbitant increase in the cost of living, that business partner who sued you or the failing stock market but they are not going to say sorry anytime. It's time to take a critical look at your spending habits and evaluate them, understanding where you have wasted and invested your money. Do a monthly plan-and-review for your savings and expenditure. A very good hint of wastage is putting your money in places you don't know much of. Learn how to disengage from risks which you can't afford to get involved.
3) Get paid work immediately. Get your life productive again. There is no more greater blessing than learning to appreciate your ability to earn your keeps. Within your checklist, you should have a couple of people whom you can approach in this area. Leverage on your experience and expertise to make an offer of what you can contribute to their benefit.
4) Join a credit union. Such helpful organizations can offer loans which normal institutions like banks will not do otherwise, but make sure there's confidence on both sides that you can repay the loan.
5) Far too many people never had a concrete financial/retirement plan even though they know it's important. Engage a financial advisor to be your personal counsel. Set aside cash reserves for rainy days or emergencies. Find adequate insurance to protect your remaining assets and family. Avoid high-risk ventures or 'investments'.
6) Keep track of all debts due and paid to your creditors. Make sure your credit report is updated for the record.
7) Sharpen your financial literacy. Robert Kiyosaki, author of "Rich Dad, Poor Dad" is a strong advocate for personal fiancial education. You can always pick up financial literature along the way and think about how you may change the way you look at your wealth. You never know how truly rich people think differently about their money from the rest of us.
As the saying goes, "Time heal all wounds." It will take years to be a 'normal' person again, but once you know you have attained the discipline to practice good habits, there's no reason how you can fall back to the old self. As you become wiser, you can better inform others about the unhealthy influences of commercialism and consumerism.
Justin Koh is a freelance writer whose articles have appear in most major ezines. You can find more of these at: http://www.bankruptcycentral.info
You have permission to publish this article electronically or in print, free of charge, as long as the bylines are included. A courtesy copy of your publication would be appreciated.
Article Source: http://EzineArticles.com/?expert=Justin_Koh
What is Bankruptcy? A Simple Explanation to a Complicated Issue
If you are having financial troubles due to excessive amounts of debt, you may be considering the option of bankruptcy like thousands of other Americans. I would like to take this opportunity to explain in a simple, basic way a legal term that might have you a little confused.
When speaking of bankruptcy, there are a number of different options, although when dealing with personal debt the majority of the time one only refers to two specific cases: Chapter 7 and Chapter 13. For purposes of brevity, I am only going to explain these two types of bankruptcy.
Chapter 7 is more or less a 100% restart. A judge will completely erase all of your debt. While this may seem positive, the process is much more complete. The judge may decide that you should sell off personal belongs in order to pay something back to your creditors. You may not have the option to retain any property, etc that may be of value. Chapter 7 could be considered an almost complete liquidation of your assets.
Chapter 13 is not quite as drastic as Chapter 7. Chapter 13 requires you to organize a court-approved payment structure to pay back your debts. The plan is organized over a 3-5 year period and requires you to pay back about 30-50% of your debt depending on the judge’s ruling. This type of Bankruptcy will allow you to retain some types of personal property.
Please keep one thing in mind, since the Bankruptcy reform laws of October 2005, it has become more difficult to file fore bankruptcy. In order to file, you must present yourself before a judge who decides if you are applicable based on your income and your current situation.
If you are seriously considering bankruptcy, please take the time to speak with a financial expert. He or she may be able to help you understand your option more completely and help you avoid making a mistake you might later regret.
Scott Wallitsch is a financial consultant for DebtorSolution. To find out more about Bankruptcy Help, visit our website or email us at Info@DebtorSolution.com
Article Source: http://EzineArticles.com/?expert=Scott_Wallitsch
When speaking of bankruptcy, there are a number of different options, although when dealing with personal debt the majority of the time one only refers to two specific cases: Chapter 7 and Chapter 13. For purposes of brevity, I am only going to explain these two types of bankruptcy.
Chapter 7 is more or less a 100% restart. A judge will completely erase all of your debt. While this may seem positive, the process is much more complete. The judge may decide that you should sell off personal belongs in order to pay something back to your creditors. You may not have the option to retain any property, etc that may be of value. Chapter 7 could be considered an almost complete liquidation of your assets.
Chapter 13 is not quite as drastic as Chapter 7. Chapter 13 requires you to organize a court-approved payment structure to pay back your debts. The plan is organized over a 3-5 year period and requires you to pay back about 30-50% of your debt depending on the judge’s ruling. This type of Bankruptcy will allow you to retain some types of personal property.
Please keep one thing in mind, since the Bankruptcy reform laws of October 2005, it has become more difficult to file fore bankruptcy. In order to file, you must present yourself before a judge who decides if you are applicable based on your income and your current situation.
If you are seriously considering bankruptcy, please take the time to speak with a financial expert. He or she may be able to help you understand your option more completely and help you avoid making a mistake you might later regret.
Scott Wallitsch is a financial consultant for DebtorSolution. To find out more about Bankruptcy Help, visit our website or email us at Info@DebtorSolution.com
Article Source: http://EzineArticles.com/?expert=Scott_Wallitsch
GM Bankruptcy?
If General Motors were to file bankruptcy, it could change the world or would it? Yes a GM bankruptcy filing would change the world. Right now with all the over regulation it is amazing that any company can make money these days. I guarantee such a move would change the world. It would definitely wake up the Unions and the governments over regulation on our economic engine. In fact sometimes it seems we do everything to hold down our economy from screaming forward.
With all the over regulations in this country to start, grow and run a successful small business, medium size corporation or a multi-national conglomerate based in the US. Why do we attack and use regulations to slow down our economic might? Because folks it is the way it is deliberately set up. You see at every level we have placed rules and bureaucracy to slow ourselves.
The largest corporations in the World are constantly being bombarded by rules and regulations put in place by regulators and politicians. So they are forced to move the operations out of the country to reduce costs, raise prices and pay off all the politicians you can find, no matter what side, fund them, as you will need them just to do business in this nation.
It is interesting the talk now after the 3rd quarter loss at General Motors and how they may sell off GMAC. Right now with the housing boom getting ready to pull back and some over extended upside down foreclosures due to job losses in the downturn of the business cycle, that might not be a bad idea actually. It seems GMAC is going to have its own issues.
The Delphi Bankruptcy deal is a problem indeed, I too worry about the under funded pension costs and these out of control health care costs, as for a company like GM these are problematic issues to say the least. It is good that the Union has been cutting a little slack at GM these days. Ford is next and lay offs there will be big indeed.
Indeed a bankruptcy at GM would change the world, but why do we need such a strong signal as a wake up call when it is obvious that we need to fix the problems that are right their in front of us. We all should be thinking here, as all of this effects us one way or another and China is not getting any smaller so we better get on the stick and take care of business in real time. Think on this.
"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/. Lance is a guest writer for Our Spokane Magazine in Spokane, Washington
Article Source: http://EzineArticles.com/?expert=Lance_Winslow
Know More on Chapter 11 Bankruptcy
You may be aware of many types of bankruptcies. Chapter 11 bankruptcy is also known as ‘Re-organization bankruptcy’. This sort of bankruptcy is mostly used for a huge organization or business that is suffering from a financial crisis. The organization may also be unable to pay its dues at that time.
It is much similar to chapter 13 bankruptcy as this sort of bankruptcy enables the party to reimburse the loan amount within a predetermined period of time. So, basically, people can save their assets even after they declare themselves as ‘bankrupt’.
The major difference between a chapter 13 and a chapter 11 bankruptcy is that the latter concentrates only on business entities.
The reimbursement phase can be determined, and the sum can be paid with exceptionally low or no interest whatsoever. The total cost involved to file a chapter 11 bankruptcy comes up to approximately $1037.
In this sort of economic failure, the business unit runs the company under the regulation of the court, and generally, for the profit of the creditors.
Once the court declares a stay, the creditors are not entitled to take any legal action against the defaulter. The credit committee is considered to be the most significant element in this type of bankruptcy. Once this time is revealed, the defaulters can feel relaxed, and make sure that if they successfully reimburse the loan, their property will be safe.
The accomplishment of chapter 11 plan is very much dependant on the judgment of the creditors. If creditors show no interest or successfully prove that your arguments do not work, the case may not succeed.
Chapter 11 provides the highest flexibility out of all the bankruptcy strategies available.
FIND MORE ABOUT LOAN PROGRAMS
It is much similar to chapter 13 bankruptcy as this sort of bankruptcy enables the party to reimburse the loan amount within a predetermined period of time. So, basically, people can save their assets even after they declare themselves as ‘bankrupt’.
The major difference between a chapter 13 and a chapter 11 bankruptcy is that the latter concentrates only on business entities.
The reimbursement phase can be determined, and the sum can be paid with exceptionally low or no interest whatsoever. The total cost involved to file a chapter 11 bankruptcy comes up to approximately $1037.
In this sort of economic failure, the business unit runs the company under the regulation of the court, and generally, for the profit of the creditors.
Once the court declares a stay, the creditors are not entitled to take any legal action against the defaulter. The credit committee is considered to be the most significant element in this type of bankruptcy. Once this time is revealed, the defaulters can feel relaxed, and make sure that if they successfully reimburse the loan, their property will be safe.
The accomplishment of chapter 11 plan is very much dependant on the judgment of the creditors. If creditors show no interest or successfully prove that your arguments do not work, the case may not succeed.
Chapter 11 provides the highest flexibility out of all the bankruptcy strategies available.
FIND MORE ABOUT LOAN PROGRAMS
Article Source: http://EzineArticles.com/?expert=Eshwarya_Patel
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