Bankruptcy can be an overwhelming blow to an individual, a small business, or even a multi-million dollar corporation. The allocation of funds, the audits, the creditor claims, and the claiming of assets may be too much for the whole staff to handle, leave alone a single individual. A bankruptcy lawyer will help you to set your assets in order and smoothly take care of the filing for bankruptcy.
File for bankruptcy with the right legal help
Under the new Bankruptcy Act of 2005, credit counseling or other options may be required. Finance professionals generally suggest that you assess your financial situation before filing for bankruptcy, as often debtors file bankruptcy without first exploring other options to settle their debts. However, if it is unavoidable, they advise debtors to seek professional help such as financial lawyers to help them understand the process and its effects. You also need to get familiar with new bankruptcy law even though you are taking legal help.
Filing for bankruptcy is complex for most people in America
The proceedings involved in bankruptcy are supervised by and litigated in the United States Bankruptcy Courts. There are several bankruptcy codes in America and it is very stringent regarding how to file bankruptcy. The bankruptcy attorney decides which chapter of the code best fits the situation and accordingly he will decide to file under chapter 13 or chapter 7.
Choose a lawyer who takes services from Bankruptcy Assistance Company
Bankruptcy attorneys are often handling several cases at the same time. They have to file forms, answer inquiries and prepare petitions for different clients. This might result in an important detail being overlooked. Bankruptcy assistance companies see this as a business opportunity to have stable clients and a wide market. The assistance company's staff also has to undergo specific training before becoming bankruptcy associates.
A bankruptcy lawyer is well worth his cost. It will pay rich dividends through peace of mind, simplifying the procedures and probably actual money saved in following your bankruptcy attorney's advice.
Are you bankrupt and trying to get homeloan? Here you will find excellent information on home loans after bankruptcy
http://EzineArticles.com/?expert=Arindam_Chattopadhyaya
Tuesday, September 25, 2007
Rebuilding Credit After bankruptcy
If your past history of credit has been flawed by a bankruptcy, the most important thing for rebuilding credit after a bankruptcy is to add positive information into your credit report. The key to re establishing your long term credit credit is to show creditors that you are now financially responsible after the bankruptcy.
If you have bad credit history because of a bankruptcy there are fast simple ways to rebuild your credit after bankruptcy. One of the easiest ways is to apply for a secured credit card. A secured credit card is backed by money that you deposit into an account. If you fail to make your payments the creditor takes the money out of the account to cover the amount owed. Because of the secured funds these types of cards are very easy to get and almost all of them report to the credit beraus. Normally after 6-12 months of on time payments you may be able to qualify for a unsecured credit card, however credit beraus do not know if a credit card is secured or unsecured so a secured credit card is not a necessity in the first 12 months of credit rebuilding.
Rent to Own centers are another great place to rebuild credit after bankruptcy. Many of these rent to own centers will approve an account for a person with bad credit as long as they have the income to pay the loan back and sufficient on the job time. The drawback to opening one of these accounts is that you will pay a much higher price for an item then if you just went out and bought it. However the overall boost to your credit score and profile more then make up for the extra cost of the item. After 6-12 months of timely payments on your secured credit card and rent to own account you can begin to apply for other credit. However only open 1 new account every 6 months and keep the credit inquiries to a bare minimum. Your end goal is to have 2 open credit cards with credit limits over $2500 and one or two additional accounts such as a gas card or department store card.
In addition to these tips you should also review your credit report and make sure all accounts that were included in the bankruptcy are listed on the credit report as "Included in Bankruptcy". In many cases credit accounts that were involved in the bankruptcy will still report as a delinquent account on a credit report. This will have a negative affect on your credit rebuilding efforts. These accounts can be easily disputed online or through a credit repair company.
http://EzineArticles.com/?expert=Darin_Sewell
If you have bad credit history because of a bankruptcy there are fast simple ways to rebuild your credit after bankruptcy. One of the easiest ways is to apply for a secured credit card. A secured credit card is backed by money that you deposit into an account. If you fail to make your payments the creditor takes the money out of the account to cover the amount owed. Because of the secured funds these types of cards are very easy to get and almost all of them report to the credit beraus. Normally after 6-12 months of on time payments you may be able to qualify for a unsecured credit card, however credit beraus do not know if a credit card is secured or unsecured so a secured credit card is not a necessity in the first 12 months of credit rebuilding.
Rent to Own centers are another great place to rebuild credit after bankruptcy. Many of these rent to own centers will approve an account for a person with bad credit as long as they have the income to pay the loan back and sufficient on the job time. The drawback to opening one of these accounts is that you will pay a much higher price for an item then if you just went out and bought it. However the overall boost to your credit score and profile more then make up for the extra cost of the item. After 6-12 months of timely payments on your secured credit card and rent to own account you can begin to apply for other credit. However only open 1 new account every 6 months and keep the credit inquiries to a bare minimum. Your end goal is to have 2 open credit cards with credit limits over $2500 and one or two additional accounts such as a gas card or department store card.
In addition to these tips you should also review your credit report and make sure all accounts that were included in the bankruptcy are listed on the credit report as "Included in Bankruptcy". In many cases credit accounts that were involved in the bankruptcy will still report as a delinquent account on a credit report. This will have a negative affect on your credit rebuilding efforts. These accounts can be easily disputed online or through a credit repair company.
http://EzineArticles.com/?expert=Darin_Sewell
Handling Bankruptcy in Scotland
Scotland like many other UK countries has seen it bankruptcy rates rise. This rise may be attributed to the fact that there are people in Scotland, who have the resources to pay their creditors and debtors, choose not to. Some people do want to pay, but they require leniency and flexibility in time. According to some government officials and analysts, a fair-haired system needs to be in place to manage and to judge the bankruptcy proceedings in Scotland. Further more it is also suggested that some people, who filed for bankruptcy, have more than self-sustainable salaries be made to pay their creditors from their future incomes, at the same time if such people show genuine cause, may be given some form of bankruptcy reprieve. Some other suggested reforms include, decreasing the bankruptcy period to one year, and instilling the rule that the debtor pays some part of his income as a contribution to the his or her creditors. Some government officials also wanted, some of the Scottish Bankruptcy laws to mirror that of England and Wales. These reforms also included the framework for implementing transparencies between the creditor and the debtor.
A leading publication in Scotland also reported that bankruptcy rates on the first quarter have skyrocketed and the need of these reforms as a way controlling and correcting the rates. Some analysts also suggested that the Scottish Bankruptcy laws should mirror their American counterparts, making debtor analysis and educational lectures a must.
Current Scottish Bankruptcy laws have their own advantages and disadvantages, for debtor and creditors alike, for example; Creditors may get more money than in bankruptcy, All your creditors need to consent writing, debtors will require a reasonable amount of disposable income and maybe even assets. One can also consider an informal form of bankruptcy know as “quasi-bankruptcy”, which involves you offering all your creditors three years worth of their payments from your non-refundable income as a final an full resolution.
Article Source: http://EzineArticles.com/?expert=William_Amerson
A leading publication in Scotland also reported that bankruptcy rates on the first quarter have skyrocketed and the need of these reforms as a way controlling and correcting the rates. Some analysts also suggested that the Scottish Bankruptcy laws should mirror their American counterparts, making debtor analysis and educational lectures a must.
Current Scottish Bankruptcy laws have their own advantages and disadvantages, for debtor and creditors alike, for example; Creditors may get more money than in bankruptcy, All your creditors need to consent writing, debtors will require a reasonable amount of disposable income and maybe even assets. One can also consider an informal form of bankruptcy know as “quasi-bankruptcy”, which involves you offering all your creditors three years worth of their payments from your non-refundable income as a final an full resolution.
Article Source: http://EzineArticles.com/?expert=William_Amerson
Hawaii Bankruptcy Laws
The declaration of bankruptcy allows debtors to solve significant financial debts after their non-exempt assets are distributed. Bankruptcy in the United States falls under Federal jurisdiction by the United States Constitution (Article 1, Section 8).
However, bankruptcy is implemented as statute law, and relevant statutes are incorporated within Bankruptcy Code of Title 11 of the United States Code. At present, two forms of filing bankruptcy are available to individuals: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is a liquidation of assets, while Chapter 13 involves a reorganization by which the debtor creates a three- to five-year payment plan.
Although bankruptcy cases are filed in the United States Bankruptcy Court, they are often highly dependent upon state laws. Hawaii is one of the thirteen states in the U.S. that offers a choice between federal and state bankruptcy laws.
Hawaii bankruptcy laws provide exemptions that save a part of the properties from bankruptcy. Details of the exempted property are provided in the Hawaii bankruptcy chart. When bankruptcy is filed in Hawaii, an individual gets federal exemption in addition to Hawaii exemptions. According to Hawaii bankruptcy laws, an exemption limit applies to any equity in property secured by loans. Properties included in the Hawaii exemption chart are homestead (up to $30,000 for senior citizens and $20,000 for others), all insurances, property of business partnerships, pensions, personal property such as appliances, books, burial plots, clothes, jewelry to $1,000, and motor vehicles to $2,575, public benefits, tools of trade, and wages to minimum of 80%. No wildcard exemptions are given in Hawaii.
In Hawaii bankruptcy law, Chapter 7 filing has advantages such as a complete fresh start, immediate protection, lack of a minimum limit on the debt, and quick discharge of the case. The advantages of a Hawaii Chapter 13 payment plan are that it enables a person to keep his property, has more dischargeable debts, gives more payment time, and separates creditors by class. Major changes in the new act effective October 17, 2005, include a means test, proof of income, state exemptions, counseling, and child support.
Declaring bankruptcy is an important decision and quite complicated in its implementation. Hiring an attorney with experience in the field concerned is generally recommended.
http://EzineArticles.com/?expert=Eddie_Tobey
However, bankruptcy is implemented as statute law, and relevant statutes are incorporated within Bankruptcy Code of Title 11 of the United States Code. At present, two forms of filing bankruptcy are available to individuals: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is a liquidation of assets, while Chapter 13 involves a reorganization by which the debtor creates a three- to five-year payment plan.
Although bankruptcy cases are filed in the United States Bankruptcy Court, they are often highly dependent upon state laws. Hawaii is one of the thirteen states in the U.S. that offers a choice between federal and state bankruptcy laws.
Hawaii bankruptcy laws provide exemptions that save a part of the properties from bankruptcy. Details of the exempted property are provided in the Hawaii bankruptcy chart. When bankruptcy is filed in Hawaii, an individual gets federal exemption in addition to Hawaii exemptions. According to Hawaii bankruptcy laws, an exemption limit applies to any equity in property secured by loans. Properties included in the Hawaii exemption chart are homestead (up to $30,000 for senior citizens and $20,000 for others), all insurances, property of business partnerships, pensions, personal property such as appliances, books, burial plots, clothes, jewelry to $1,000, and motor vehicles to $2,575, public benefits, tools of trade, and wages to minimum of 80%. No wildcard exemptions are given in Hawaii.
In Hawaii bankruptcy law, Chapter 7 filing has advantages such as a complete fresh start, immediate protection, lack of a minimum limit on the debt, and quick discharge of the case. The advantages of a Hawaii Chapter 13 payment plan are that it enables a person to keep his property, has more dischargeable debts, gives more payment time, and separates creditors by class. Major changes in the new act effective October 17, 2005, include a means test, proof of income, state exemptions, counseling, and child support.
Declaring bankruptcy is an important decision and quite complicated in its implementation. Hiring an attorney with experience in the field concerned is generally recommended.
http://EzineArticles.com/?expert=Eddie_Tobey
Applying for a Credit Card after Bankruptcy
Have you filed recently for bankruptcy? Are you worried that your chances for credit are gone? If so, here’s some good news: you can still get a credit card. And here’s some better news: you can start taking steps immediately to rebuild your credit. With careful planning, you’ll soon be back on financial track. Read on to learn more about applying for a credit card after bankruptcy.
Credit After Bankruptcy
A bankruptcy filing can stay on your credit report for up to ten years. Yet you do not have to wait a decade before applying for a credit card. Lenders decide to approve or deny credit on an individual basis. Many companies offer cards specifically designed for those with poor credit. This means that you may be approved for a credit card quickly after bankruptcy.
Before you apply for a credit card, keep in mind that due to the bankruptcy filing, you may be viewed as a higher risk customer to lenders. This means that it might be more expensive to obtain and keep a credit card. Cards for those with poor credit usually come with higher interest rates and lower credit limits. Remember that having a credit card is a privilege. If you use it wisely, you will be able to enjoy the many benefits involved.
Imagine Gold MasterCard
The Imagine Gold MasterCard is a smart card to apply for after bankruptcy. It accepts all applications and does not require a security deposit. Even better, it reports to three major credit bureaus. There are several fees involved with this card, including an annual fee of $150 and a one-time processing fee of $4.95. As you use the card and pay off the balance each month, you can improve your credit score. You will also enjoy regular increases in your line of credit.
First Premier Bank
First Premier Bank specializes in cards for those with poor or no credit. Through their system, you can easily get a card and work at regaining your credit. Expect to pay certain start-up fees, as well as monthly and annual fees, for using their card. If you pay off your balance each month and practice careful financial management, First Premier Bank will help you pull away from your bad credit history.
Rebuild your Credit
Once you have a credit card, you can take a number of steps to repair your credit score. Be careful about when and where you use your card. Before you make a purchase, consider whether or not you will be able to pay it off quickly. Start by buying small, inexpensive items. Then pay off your bill each month. If you work hard to pay off your balances on time and in full each month, credit card companies and other lenders will notice. This will greatly help you in your quest for better credit.
There is life after bankruptcy. Better yet, there are credit card options available for those with poor credit. By applying for a credit card after bankruptcy, you can begin to rebuild your credit. Once you have a new credit card, use it wisely. With a little planning, you can enjoy increases in your credit score and line of credit. Over time, this will lead you to more credit options and a brighter financial future.
Article Source: http://EzineArticles.com/?expert=Ed_Vegliante
Credit After Bankruptcy
A bankruptcy filing can stay on your credit report for up to ten years. Yet you do not have to wait a decade before applying for a credit card. Lenders decide to approve or deny credit on an individual basis. Many companies offer cards specifically designed for those with poor credit. This means that you may be approved for a credit card quickly after bankruptcy.
Before you apply for a credit card, keep in mind that due to the bankruptcy filing, you may be viewed as a higher risk customer to lenders. This means that it might be more expensive to obtain and keep a credit card. Cards for those with poor credit usually come with higher interest rates and lower credit limits. Remember that having a credit card is a privilege. If you use it wisely, you will be able to enjoy the many benefits involved.
Imagine Gold MasterCard
The Imagine Gold MasterCard is a smart card to apply for after bankruptcy. It accepts all applications and does not require a security deposit. Even better, it reports to three major credit bureaus. There are several fees involved with this card, including an annual fee of $150 and a one-time processing fee of $4.95. As you use the card and pay off the balance each month, you can improve your credit score. You will also enjoy regular increases in your line of credit.
First Premier Bank
First Premier Bank specializes in cards for those with poor or no credit. Through their system, you can easily get a card and work at regaining your credit. Expect to pay certain start-up fees, as well as monthly and annual fees, for using their card. If you pay off your balance each month and practice careful financial management, First Premier Bank will help you pull away from your bad credit history.
Rebuild your Credit
Once you have a credit card, you can take a number of steps to repair your credit score. Be careful about when and where you use your card. Before you make a purchase, consider whether or not you will be able to pay it off quickly. Start by buying small, inexpensive items. Then pay off your bill each month. If you work hard to pay off your balances on time and in full each month, credit card companies and other lenders will notice. This will greatly help you in your quest for better credit.
There is life after bankruptcy. Better yet, there are credit card options available for those with poor credit. By applying for a credit card after bankruptcy, you can begin to rebuild your credit. Once you have a new credit card, use it wisely. With a little planning, you can enjoy increases in your credit score and line of credit. Over time, this will lead you to more credit options and a brighter financial future.
Article Source: http://EzineArticles.com/?expert=Ed_Vegliante
Bankruptcy and FICO Score
Since FICO scores places a value of the types of accounts that an individual holds and also the individual?s credit history, those who have declared bankruptcy may have really low FICO scores. FICO scores are used by most finance institutions as a basis for credit or loan approval. One's creditworthiness may be measured through FICO scores.
The FICO scoring scale runs from 300 to 850 and most people have scores that range between 600 and 800. Those with scores of 720 or higher are more favored to acquire loans with reasonable interests on mortgages as supported by a number of finance data. Those whose FICO scores are below 620 are subject to a much tedious process of reviewing prior to credit approval. Those who have declared bankruptcy usually get FICO scores lower than 600, which makes it quite hard for those who have declared bankruptcy to acquire credit.
When one considers how FICO scores are calculated, several factors which are also elements that one takes into account when declaring bankruptcy are quite similar. One?s payment history or his ability to pay his dues on time is one of the key factors that credit managers consider when calculating for FICO scores. One's frequent inability to pay on time is one of the precursors which may (although not always) lead to bankruptcy. Bankruptcy may be characterized by having more debt that the credit limit. This is also one of the considerations that is considered by FICO scores. One?s credit history , the types of credit that the individual uses and even the number pf inquiries that the individual has regarding credit are also considered when computing for one?s FICO scores in the same way that these are considered by those who declare bankruptcy.
Credit Check provides detailed information on Credit Check, Free Credit Checks, No Credit Check Loans, Collection Agency Credit Checks and more. Credit Check is affiliated with Credit History Repair.
http://EzineArticles.com/?expert=Alison_Cole
The FICO scoring scale runs from 300 to 850 and most people have scores that range between 600 and 800. Those with scores of 720 or higher are more favored to acquire loans with reasonable interests on mortgages as supported by a number of finance data. Those whose FICO scores are below 620 are subject to a much tedious process of reviewing prior to credit approval. Those who have declared bankruptcy usually get FICO scores lower than 600, which makes it quite hard for those who have declared bankruptcy to acquire credit.
When one considers how FICO scores are calculated, several factors which are also elements that one takes into account when declaring bankruptcy are quite similar. One?s payment history or his ability to pay his dues on time is one of the key factors that credit managers consider when calculating for FICO scores. One's frequent inability to pay on time is one of the precursors which may (although not always) lead to bankruptcy. Bankruptcy may be characterized by having more debt that the credit limit. This is also one of the considerations that is considered by FICO scores. One?s credit history , the types of credit that the individual uses and even the number pf inquiries that the individual has regarding credit are also considered when computing for one?s FICO scores in the same way that these are considered by those who declare bankruptcy.
Credit Check provides detailed information on Credit Check, Free Credit Checks, No Credit Check Loans, Collection Agency Credit Checks and more. Credit Check is affiliated with Credit History Repair.
http://EzineArticles.com/?expert=Alison_Cole
Bankruptcy Lawyer In New York
In a big city such as New York you will find bankruptcy lawyer firms in large quantity. Bankruptcy lawyer main assignment is to help their client to prevent falling into bankruptcy. If it’s already inevitable they also help their client filing bankruptcy. As bankruptcy such complex issue to overcome with, you shall find a fully experienced and skilled lawyer in order to defend your assets, legal and personal rights includes.
There are two chapters that bankruptcy lawyers in New York are initially filed bankruptcy, they are chapter 7 for straight liquidation bankruptcy and chapter 13 if you want to prevent mortgage foreclosures. Chapter 7 will have every asset you have to be liquidating to distribute them into your debts creditor. Despite to this requirement, real estate mortgages, child supports, and taxes are the exceptional asset for you to keep. As Chapter 13 allows you to restructuring your debts to your creditors. Here you can offer repayment terms for 3 up to 5 years, and during this period creditors cannot purchase their debts without any permission from bankruptcy court.
The most common chapter to file bankruptcy is through liquidation process. Before conducting any of this chapter, bankruptcy lawyer will review all of your legal papers, your list of possessions, creditor acclaims, etc for them to settle on the best option for you with respect to New York regulation. In order to do this settlement they have to be well acknowledge on the latest bankruptcy law which referring to October 17, 2005 law.
Regardless, filing for bankruptcy is actually the last resort for you to have. Once you have declared as individual bankruptcy, the credit record will stay for up to 10 years. It wills eventually degrading your quality when you are going to apply another credit in future. So before you filing one, it is advisable to discuss it earlier with your bankruptcy lawyer to make financial arrangement by negotiating debt settlement with the creditors.
With this intention, you must have experienced lawyer specialized on bankruptcy to overcome your bankruptcy superbly. This kind of New York lawyer can be found in some well-known firms such as Nagel rice and Mazie, Muso and Weiner, etc. Other qualified lawyers list can be proposed by local bar association for they have many referral panels of bankruptcy. Despite to whoever you choose, please ensure that this chosen bankruptcy lawyer will only have you as client. This is important for you to have your lawyer focused and manage your case as good as one can.
Here you can find reputable bankruptcy lawyers online. Understand what a bankruptcy lawyer can help you. Learn also how to make a decision to hire a bankruptcy lawyer.
http://EzineArticles.com/?expert=Al_Falaq_Arsendatama
There are two chapters that bankruptcy lawyers in New York are initially filed bankruptcy, they are chapter 7 for straight liquidation bankruptcy and chapter 13 if you want to prevent mortgage foreclosures. Chapter 7 will have every asset you have to be liquidating to distribute them into your debts creditor. Despite to this requirement, real estate mortgages, child supports, and taxes are the exceptional asset for you to keep. As Chapter 13 allows you to restructuring your debts to your creditors. Here you can offer repayment terms for 3 up to 5 years, and during this period creditors cannot purchase their debts without any permission from bankruptcy court.
The most common chapter to file bankruptcy is through liquidation process. Before conducting any of this chapter, bankruptcy lawyer will review all of your legal papers, your list of possessions, creditor acclaims, etc for them to settle on the best option for you with respect to New York regulation. In order to do this settlement they have to be well acknowledge on the latest bankruptcy law which referring to October 17, 2005 law.
Regardless, filing for bankruptcy is actually the last resort for you to have. Once you have declared as individual bankruptcy, the credit record will stay for up to 10 years. It wills eventually degrading your quality when you are going to apply another credit in future. So before you filing one, it is advisable to discuss it earlier with your bankruptcy lawyer to make financial arrangement by negotiating debt settlement with the creditors.
With this intention, you must have experienced lawyer specialized on bankruptcy to overcome your bankruptcy superbly. This kind of New York lawyer can be found in some well-known firms such as Nagel rice and Mazie, Muso and Weiner, etc. Other qualified lawyers list can be proposed by local bar association for they have many referral panels of bankruptcy. Despite to whoever you choose, please ensure that this chosen bankruptcy lawyer will only have you as client. This is important for you to have your lawyer focused and manage your case as good as one can.
Here you can find reputable bankruptcy lawyers online. Understand what a bankruptcy lawyer can help you. Learn also how to make a decision to hire a bankruptcy lawyer.
http://EzineArticles.com/?expert=Al_Falaq_Arsendatama
Debt Settlement Vs Bankruptcy
With today's economic difficulties, consumer debt is at an all-time high. As American's continue to struggle with debt, record numbers of consumers—nearly 1.6 million in 2003—are filing for bankruptcy. Whether you’re financial situation is the result of an illness, unemployment, divorce, or simply overspending, it can often seem overwhelming. If debt has gotten the better of you, try debt settlement before going the bankruptcy route.
Debt settlement can help consumers improve their financial situation and provide immediate relief from creditor harassment. With debt settlement, you can usually get out of debt with in two to three years and you typically end up paying back between forty to sixty percent of what you currently owe!
It is true that bankruptcy is another option for debt relief, but it’s generally considered the option of last resort. This is because of its long-term negative impact on your creditworthiness. A bankruptcy stays on your credit report for up to 10 years, and can hinder your ability to get credit, a job, insurance, or even a place to live. It is critical to understand all your options prior to making such a critical decision. Living debt free takes both hard work and proper planning. With a proper combination of both, you are sure to get back on the track to financial freedom.
Alan Barnes IAPDA Certified Debt Arbitrator President and CEO of Debt Regret http://www.debtregret.com
http://EzineArticles.com/?expert=Alan_Barnes
Debt settlement can help consumers improve their financial situation and provide immediate relief from creditor harassment. With debt settlement, you can usually get out of debt with in two to three years and you typically end up paying back between forty to sixty percent of what you currently owe!
It is true that bankruptcy is another option for debt relief, but it’s generally considered the option of last resort. This is because of its long-term negative impact on your creditworthiness. A bankruptcy stays on your credit report for up to 10 years, and can hinder your ability to get credit, a job, insurance, or even a place to live. It is critical to understand all your options prior to making such a critical decision. Living debt free takes both hard work and proper planning. With a proper combination of both, you are sure to get back on the track to financial freedom.
Alan Barnes IAPDA Certified Debt Arbitrator President and CEO of Debt Regret http://www.debtregret.com
http://EzineArticles.com/?expert=Alan_Barnes
How Bankruptcy Affects Student Loans
The vast majority of government student loans cannot be gotten rid of easily, even filing for bankruptcy will not resolve these debts. The only way that these types of loans can be taken care of in bankruptcy is if you can prove that they are a substantial hardship on you and your finances and this is a pretty hard ting to do in most cases, especially since the rest of your debts will be taken care of with the bankruptcy filing.
If you do wish to try to get your student loans discharged you will have to prove that there is no way you will be able to pay this debt according to the schedule that has been laid out, that even in time you will still not be able to pay it according to the same schedule and that you have tried unsuccessfully in the past. A good faith effort is necessary. This means that you have not tried lying to your creditors and that you are working as much as you can to get the money that you need but are still coming up short.
What can be discharged and what cannot can also fall directly onto the shoulders of the bankruptcy judge. If you are lucky and you get a judge that allows for these discharges then you might just get away without having to pay off these loans, or at least part of them. In many places it is left up to the judge to go with their own gut feeling.
Keep in mind that while it is true that lenders cannot be sending you bills to pay while you are in bankruptcy, they have to wait until it is over, that does not by any means mean that interest will not be accruing on your loan. And since you do not have to pay, most people don't and once they come out of bankruptcy they find themselves in a whole new batch of trouble than when they went in.
Student loans are flexible loans, they have many more options than some other loans out there. If you find yourself having trouble paying off your student loans let the lender know. Tell them exactly what the problem is and they will most likely be willing to work with you to get around it. If the plan and the schedule that you have set is just not a possible one for you to follow then talk to the lender about coming up with a new one. The thought of contacting lenders scares most people but it works, you are not going to get in more trouble, in fact what you are doing is heading trouble off at the pass. If you have defaulted on your loan you will even find such programs as rehabilitation programs that help you get you out of default. These programs are great, all you have to do is show your good faith effort by paying a lower amount for a set period of time. If you manage to stick to this it will show the lender that you can be depended upon and the lender can take you out of default.
Another route that many people take instead of bankruptcy is loan consolidation. The Direct Loan Servicing Center, working under the auspices of the Department of Education will give you several different options to choose from if you need some help to pay off your loans. Their standard plan is a great one, it is simple and it is effective. All you have to do is pay $50 each and every month until the balance is paid off in full or until 10 years is up, whichever comes first. There is another plan which will keep you paying for anywhere from 12 to 30 years. While this is a great option for those who just don't have much money at all it is one of the most expensive ones simply because 30 years of interest really adds up to a significant amount of money. These are just a couple of the payment plans that you can find available to you. If you are in financial trouble talk to your lender! So you might not be able to resolve your debt completely all at once, at least there are options out there that will give you some peace of mind.
Martin Lukac, represents EnginePromoter.com, http://www.EnginePromoter.comis a search engine marketing web-site for search engine optimization and website submission. Promote your website and get top rotating positions on over 250+ search engines and over 600,000 online resources including a niche website submission. EnginePromoter.com also operates an online shopping portal #1 Shopping Online http://www.1ShoppingOnline.com and real estate portal http://www.RateEmpire.com
http://EzineArticles.com/?expert=Martin_Lukac
Five Mistakes to Avoid After Bankruptcy
She was beautiful.
One look and that's all she wrote.
I wanted her and nothing was going to stop me.
I was determined.
Her body glistened in the sun. Her looks could kill.
She was every young man's dream...
Of course I'm referring to the used, red, Mazda Miata I tried so desperately to finance shortly after my bankruptcy.
She captured my heart...and that was the problem. Common sense went out the window and I began making choices based on wants rather than needs.
It didn't matter who financed that car for me or at what interest rate—I just wanted it.
That's the same type of thinking that led me to file bankruptcy.
MISTAKE #1: Allowing emotions to influence your decision-making
People tell me all the time that they filed bankruptcy to save their homes. Homes that they...
...have three mortgages on
...have no equity in
...owe more on than the appraised value
(this is called negative equity)
...are too emotionally invested in
What the @#?! Geez Louise.
Allowing emotions to creep into your credit or financial decisions is dangerous at best.
When my wife and I and I bought our first home after bankruptcy it wasn't our dream home. We looked at it as an investment. Before every spending decision we made with that home we asked the question: “Will this increase the resale value of the home?”
Same thing when we purchased our first commercial building. Every decision was based on whether it would increase the value of the building.
It's easy to get caught up in the emotion of the moment and start doing things to (and spending money on) a house or car to make it special just for you.
And you should make your house a home...within reason. My best advice: only put money into a property you own, and only in things that make the home appreciate.
For example...
Instead of adding a swimming pool...Add landscaping around your home
Instead of adding a storage shed in the back yard...Paint the interior walls a neutral color
Instead of purchasing expensive furniture...Install new carpet or hardwood floors
Your Realtor or real estate appraiser can offer advice on where it's best to invest money in your home to increase its value.
And for you renters...putting money into the home you're renting helps the owner more than it helps you.
Negotiate a deal that will benefit you before you do anything to improve a home that you do not own.
You get the idea.
Same goes for your car...
It's just plain silly how kids these days spend money on fancy rims or high-end stereos and speakers for their cars—please tell me your car doesn't look like this.
My brother did this to his first truck—a Mazda B2000 pickup truck. He installed a custom stereo system complete with walnut trim.
It looked ugly...really ugly.
I teased him about it so much that he finally removed the stereo.
Generally, a car is a terrible investment because it's a depreciating asset. That's one reason why I lease most of my cars. But, we all have to get around don't we? And we'd like to get around in style. But, I guarantee you that having expensive rims on your car won't do a thing for its value.
Spend your money on assets that increase in value. It's a principle that separates the middle-class from the rich.
MISTAKE #2: Believing everything you hear
Be skeptical of the credit advice every car dealer, mortgage broker, banker, well-meaning friend or family member, or credit union employee gives you—they're usually wrong.
Unless the person you're talking to filed bankruptcy or has a long history of helping bankrupt people—take what they say with a grain of salt.
Always, always, always get a second, third, fourth, fifth, sixth, and even a seventh opinion. Don't stop until you find what you want...or simply keep on reading Life After Bankruptcy. A quick glance through the back issues should give you most of the answers you need.
A lot of lenders are going to say, “No,” to you when you apply for a loan. They're going to tell you can't get a loan or you can only get financing from a finance company at an outrageously high interest rate.
Don't listen to them!
Just because a person tells you NO—doesn't mean the correct answer is NO. It simply means you should go to another lender.
You must be diligent.
You must have hope...not be hopeless.
NO must mean absolutely nothing to you.
When a lender told me, “No,” I just went to the next lender.
MISTAKE #3: Shopping for credit the wrong way
Did you know lenders don't need your signature or Social Security number to review your credit reports and credit scores?
It's true!
Just stepping on a car lot gives the dealer “permissible purpose” to review your credit.
If you allow them to make a copy of your driver's license, you've just given them all of the information they need to pull your credit reports. Don't believe the myth that your Social Security number is required to pull your reports...it isn't. The car dealer can review your credit reports using only your name and address, and that could lower your FICO credit scores.
Fortunately, most lenders don't practice this. But some do.
As you should know by now, almost every time a lender reviews your credit, they post a credit inquiry on your credit reports. And credit inquiries can lower your credit scores. I talked all about it in Life After Bankruptcy Issue #15.
So how do you control the situation?
First, you make it very clear to every lender you speak to that you do not want them to review your credit reports until you've made a final decision to work with them.
You do this by giving them NO information about yourself. This means no credit application...no Social Security number...and no driver's license.
After you've interviewed several lenders and have found one that you're comfortable working with, give your information to only that lender.
MISTAKE #4: Not creating a written game plan
You need to put your game plan in writing. But don't make this more complicated than it needs to be. Your plan can be as simple as:
1. Get a secured Visa card
2. Get a secured MasterCard
3. Raise my FICO credit scores to over 600
4. Finance a new car
5. Obtain a secured bank loan
6. Get approved for a gas card
7. Raise my FICO credit scores to over 640
8. Mortgage a new home
9. Raise my FICO credit scores to over 700
10. Get a home equity loan
11. Pay off all my revolving debt
12. Purchase my first investment property
However, goals without deadlines are just wishes. A much better game plan includes specific dates and may look like this...
Once you have your game plan in writing, you should make a “goals folder” and place a copy of your game plan in it for future reference. Put another copy where you can see it every day, then visualize how to obtain each goal.
MISTAKE #5: Delaying your re-entry into the credit world
Some people need a cooling off period after filing bankruptcy...a time when you live on a cash-only basis. No credit. No credit cards. No checking account. Nothing. Michele and I did this.
How do you know if you need a cooling off period? Ask yourself, “When was the last time I saw a loan as the solution to getting out of debt?”
A better question would be, “How can I increase my income to accomplish my goal of getting out of debt?”
My wife and I chose to pay cash for everything from the time we filed bankruptcy up until we received our discharge papers in the mail.
We didn't have to pay cash until we were discharged...we chose to because of what the discipline would teach us. Then we mailed our secured credit card application the very same day we received our discharge papers.
I'm not kidding.
We had the application and cashier's check ready—we were just waiting for the discharge letter.
You see, we took time and made the effort to create a written game plan, and then simply followed the plan.
Most people plan their vacations better than they do their financial lives. Don't let this be you.
The longer you delay getting back into the credit world—the longer your credit scores will suffer.
Even if you don't use your credit cards that much—it's better to get them as soon as possible.
Why?
One of the key characteristics that makes up your FICO credit scores is how long you've had established credit accounts. So the longer you have credit accounts—the better your scores.
These are just five of the most common mistakes bankrupt people make on a regular basis. There are many more.
http://EzineArticles.com/?expert=Stephen_Snyder
One look and that's all she wrote.
I wanted her and nothing was going to stop me.
I was determined.
Her body glistened in the sun. Her looks could kill.
She was every young man's dream...
Of course I'm referring to the used, red, Mazda Miata I tried so desperately to finance shortly after my bankruptcy.
She captured my heart...and that was the problem. Common sense went out the window and I began making choices based on wants rather than needs.
It didn't matter who financed that car for me or at what interest rate—I just wanted it.
That's the same type of thinking that led me to file bankruptcy.
MISTAKE #1: Allowing emotions to influence your decision-making
People tell me all the time that they filed bankruptcy to save their homes. Homes that they...
...have three mortgages on
...have no equity in
...owe more on than the appraised value
(this is called negative equity)
...are too emotionally invested in
What the @#?! Geez Louise.
Allowing emotions to creep into your credit or financial decisions is dangerous at best.
When my wife and I and I bought our first home after bankruptcy it wasn't our dream home. We looked at it as an investment. Before every spending decision we made with that home we asked the question: “Will this increase the resale value of the home?”
Same thing when we purchased our first commercial building. Every decision was based on whether it would increase the value of the building.
It's easy to get caught up in the emotion of the moment and start doing things to (and spending money on) a house or car to make it special just for you.
And you should make your house a home...within reason. My best advice: only put money into a property you own, and only in things that make the home appreciate.
For example...
Instead of adding a swimming pool...Add landscaping around your home
Instead of adding a storage shed in the back yard...Paint the interior walls a neutral color
Instead of purchasing expensive furniture...Install new carpet or hardwood floors
Your Realtor or real estate appraiser can offer advice on where it's best to invest money in your home to increase its value.
And for you renters...putting money into the home you're renting helps the owner more than it helps you.
Negotiate a deal that will benefit you before you do anything to improve a home that you do not own.
You get the idea.
Same goes for your car...
It's just plain silly how kids these days spend money on fancy rims or high-end stereos and speakers for their cars—please tell me your car doesn't look like this.
My brother did this to his first truck—a Mazda B2000 pickup truck. He installed a custom stereo system complete with walnut trim.
It looked ugly...really ugly.
I teased him about it so much that he finally removed the stereo.
Generally, a car is a terrible investment because it's a depreciating asset. That's one reason why I lease most of my cars. But, we all have to get around don't we? And we'd like to get around in style. But, I guarantee you that having expensive rims on your car won't do a thing for its value.
Spend your money on assets that increase in value. It's a principle that separates the middle-class from the rich.
MISTAKE #2: Believing everything you hear
Be skeptical of the credit advice every car dealer, mortgage broker, banker, well-meaning friend or family member, or credit union employee gives you—they're usually wrong.
Unless the person you're talking to filed bankruptcy or has a long history of helping bankrupt people—take what they say with a grain of salt.
Always, always, always get a second, third, fourth, fifth, sixth, and even a seventh opinion. Don't stop until you find what you want...or simply keep on reading Life After Bankruptcy. A quick glance through the back issues should give you most of the answers you need.
A lot of lenders are going to say, “No,” to you when you apply for a loan. They're going to tell you can't get a loan or you can only get financing from a finance company at an outrageously high interest rate.
Don't listen to them!
Just because a person tells you NO—doesn't mean the correct answer is NO. It simply means you should go to another lender.
You must be diligent.
You must have hope...not be hopeless.
NO must mean absolutely nothing to you.
When a lender told me, “No,” I just went to the next lender.
MISTAKE #3: Shopping for credit the wrong way
Did you know lenders don't need your signature or Social Security number to review your credit reports and credit scores?
It's true!
Just stepping on a car lot gives the dealer “permissible purpose” to review your credit.
If you allow them to make a copy of your driver's license, you've just given them all of the information they need to pull your credit reports. Don't believe the myth that your Social Security number is required to pull your reports...it isn't. The car dealer can review your credit reports using only your name and address, and that could lower your FICO credit scores.
Fortunately, most lenders don't practice this. But some do.
As you should know by now, almost every time a lender reviews your credit, they post a credit inquiry on your credit reports. And credit inquiries can lower your credit scores. I talked all about it in Life After Bankruptcy Issue #15.
So how do you control the situation?
First, you make it very clear to every lender you speak to that you do not want them to review your credit reports until you've made a final decision to work with them.
You do this by giving them NO information about yourself. This means no credit application...no Social Security number...and no driver's license.
After you've interviewed several lenders and have found one that you're comfortable working with, give your information to only that lender.
MISTAKE #4: Not creating a written game plan
You need to put your game plan in writing. But don't make this more complicated than it needs to be. Your plan can be as simple as:
1. Get a secured Visa card
2. Get a secured MasterCard
3. Raise my FICO credit scores to over 600
4. Finance a new car
5. Obtain a secured bank loan
6. Get approved for a gas card
7. Raise my FICO credit scores to over 640
8. Mortgage a new home
9. Raise my FICO credit scores to over 700
10. Get a home equity loan
11. Pay off all my revolving debt
12. Purchase my first investment property
However, goals without deadlines are just wishes. A much better game plan includes specific dates and may look like this...
Once you have your game plan in writing, you should make a “goals folder” and place a copy of your game plan in it for future reference. Put another copy where you can see it every day, then visualize how to obtain each goal.
MISTAKE #5: Delaying your re-entry into the credit world
Some people need a cooling off period after filing bankruptcy...a time when you live on a cash-only basis. No credit. No credit cards. No checking account. Nothing. Michele and I did this.
How do you know if you need a cooling off period? Ask yourself, “When was the last time I saw a loan as the solution to getting out of debt?”
A better question would be, “How can I increase my income to accomplish my goal of getting out of debt?”
My wife and I chose to pay cash for everything from the time we filed bankruptcy up until we received our discharge papers in the mail.
We didn't have to pay cash until we were discharged...we chose to because of what the discipline would teach us. Then we mailed our secured credit card application the very same day we received our discharge papers.
I'm not kidding.
We had the application and cashier's check ready—we were just waiting for the discharge letter.
You see, we took time and made the effort to create a written game plan, and then simply followed the plan.
Most people plan their vacations better than they do their financial lives. Don't let this be you.
The longer you delay getting back into the credit world—the longer your credit scores will suffer.
Even if you don't use your credit cards that much—it's better to get them as soon as possible.
Why?
One of the key characteristics that makes up your FICO credit scores is how long you've had established credit accounts. So the longer you have credit accounts—the better your scores.
These are just five of the most common mistakes bankrupt people make on a regular basis. There are many more.
http://EzineArticles.com/?expert=Stephen_Snyder
Bankruptcy Laws And How They Change
Even though most people don't consider themselves at a financial risk for bankruptcy, the sad statistics are that today more and more people are heading that direction. In fact, the various forms of bankruptcy such as chapter 7, chapter 13, and even chapter 11 are becoming a more popular financial out for people and businesses each and every day.
The U.S. bankruptcy laws were put in place by Congress in order to provide uniformity to the code and statutes throughout the United States. The bankruptcy laws were actually put in place to protect people from doing further financial harm.
At the time of this writing there are currently four different chapters to the bankruptcy code. For example, you may be familiar with the bankruptcy term Chapter 7 bankruptcy. The chapter 7 part is the section of code or the statutes that address the rules and regulations of Chapter 7 bankruptcy.
With these various chapters of bankruptcy, are explanations of how the various laws are set up to deal with the filing procedures and how the debt is relieved or negotiated down. There are also provisions regulating the behavior of the creditors themselves as it pertains to contacting and collection attempts by the creditor.
Although the bankruptcy codes were provided for by the U.S. federal government, each state has the right to pass other laws that will work within the framework of the federal statutes on bankruptcy; otherwise the states don't have autonomous power to govern how the overall bankruptcy code functions.
Keep in mind however, that even thought the states can't change or amend the basic intent of the core bankruptcy laws, they do have the latitude to interpret how the filings take place and how the laws should be applied.
As is the case with statutes, they tend to be somewhat dynamic; meaning they change with additions and deletions to the code over time as amendments are ratified through the body of lawmakers. Because of this dynamic, it is a very good idea for an individual considering bankruptcy as an option to seek the counsel of an attorney who deals in the area of bankruptcy code.
Any type of change to the top level of the bankruptcy codes and statutes will have to come from the United States Congress. On such change has come down the pike as it pertains to the filing of a Chapter 7 bankruptcy. The change to the core statute to this chapter had to do with the burden of proof. Essentially, it added additional criteria (or burden of proof)upon the person filing in order for them to meet the criteria necessary to have the right to file for bankruptcy.
In such a case, the debtor will only be allowed to file if they have fulfilled a financial and bankruptcy counseling session. The intent of such an addendum to the statutes is to help ensure that the bankruptcy relief statutes are not being taken advantage of by individuals who just don't want to pay their debt.
http://EzineArticles.com/?expert=Letha_Lashley
The U.S. bankruptcy laws were put in place by Congress in order to provide uniformity to the code and statutes throughout the United States. The bankruptcy laws were actually put in place to protect people from doing further financial harm.
At the time of this writing there are currently four different chapters to the bankruptcy code. For example, you may be familiar with the bankruptcy term Chapter 7 bankruptcy. The chapter 7 part is the section of code or the statutes that address the rules and regulations of Chapter 7 bankruptcy.
With these various chapters of bankruptcy, are explanations of how the various laws are set up to deal with the filing procedures and how the debt is relieved or negotiated down. There are also provisions regulating the behavior of the creditors themselves as it pertains to contacting and collection attempts by the creditor.
Although the bankruptcy codes were provided for by the U.S. federal government, each state has the right to pass other laws that will work within the framework of the federal statutes on bankruptcy; otherwise the states don't have autonomous power to govern how the overall bankruptcy code functions.
Keep in mind however, that even thought the states can't change or amend the basic intent of the core bankruptcy laws, they do have the latitude to interpret how the filings take place and how the laws should be applied.
As is the case with statutes, they tend to be somewhat dynamic; meaning they change with additions and deletions to the code over time as amendments are ratified through the body of lawmakers. Because of this dynamic, it is a very good idea for an individual considering bankruptcy as an option to seek the counsel of an attorney who deals in the area of bankruptcy code.
Any type of change to the top level of the bankruptcy codes and statutes will have to come from the United States Congress. On such change has come down the pike as it pertains to the filing of a Chapter 7 bankruptcy. The change to the core statute to this chapter had to do with the burden of proof. Essentially, it added additional criteria (or burden of proof)upon the person filing in order for them to meet the criteria necessary to have the right to file for bankruptcy.
In such a case, the debtor will only be allowed to file if they have fulfilled a financial and bankruptcy counseling session. The intent of such an addendum to the statutes is to help ensure that the bankruptcy relief statutes are not being taken advantage of by individuals who just don't want to pay their debt.
http://EzineArticles.com/?expert=Letha_Lashley
Subscribe to:
Posts (Atom)