Bankruptcy may seem to be an easy solution for major financial problems. But it is always better to avoid filing bankruptcy at all cost and to turn to it only as a last resort.
Once you file for bankruptcy, this point will remain on your credit record for ten years. This will make it difficult for you to receive loans and credit. Some lenders may allow for limited credit with bankrupt; but only after extensive explanations, and at a higher interest rate and with added credit fees. Another reason for avoiding bankruptcy is that some types of bankruptcy call for repossession of assets. Once the bank finds that there is something with you that is not necessary for living, the item may be seized to pay for debts and bankruptcy expenses.
With bankruptcy, financial difficulty will not be solved and your life becomes an open book as the court pries into all aspects of life wherein you will have to provide all financial information like savings, investments and assets. Though bankruptcy may seem to suggest some freedom from financial debts, there may be other debts that will have to be paid like alimony, court judgment costs or child support.
So keeping these points in mind, it is always better to avoid bankruptcy. Debt consolidation is one of the best means of avoiding bankruptcy. These companies help you by examining your current loans and come up with a program that incorporates all these debts. The company handles the payment to all the creditors; you just have to make a single payment to them every month. They will also get you a lower rate of interest and a longer time period to repay the loans, thus making you save some money.
Easy access to credit cards and credit accounts at department stores has now made it rather easy to fall into debt. It is better to pay bills with cash, and not use credit when money runs low. So cancel the credit card account! If you fall in debt, instead of hiding from the debt companies, it is better to talk to them as they may be able to negotiate and help you solve your debt. It is always better to plan a budget calculating debt ratio to income when in debt. Just write all the bills and expenditure that you have. Then you can determine how much has to be paid for bills, and how much is left for other spending. If required, you can also sell your home and downsize to avoid bankruptcy.
The only benefits of filing for bankruptcy are that the stress of dealing with numerous creditors is relieved. Once bankruptcy is discharged, as most of the debts get written off, creditors cannot pursue them. However, the disadvantages to bankruptcy are many. Businesses can be sold and employees dismissed with bankruptcy. Equity in a home is most likely to be sold as with bankruptcy, reliable assets of value are lost.
Bankruptcy is a costly process where all the fees for courts and trustee are drawn from the debtor�s assets. On filing for bankruptcy, it is not possible to hold certain public offices like MP, magistrate or even practice as an accountant or a solicitor. Moreover, with the new bankruptcy reform law, it is difficult to use Chapter 7 bankruptcy to get a new start in one�s financial lives.
Under the old law, one could file for bankruptcy through Chapter 7 or 13. In Chapter 7, you can keep your exempt property like the equity in your home. Here most of the debts are discharged. However, in Chapter 13 bankruptcy, you have to agree to pay off all your debts over a period of three to five years. So according to the new bankruptcy law, most of the bankruptcies are forced to file for Chapter 13 bankruptcy.
Moreover, according to the new law, you have to meet with a credit counselor for six months before applying for bankruptcy. However, as there are insufficient credit counselors, it is rather hard to accomplish this. It is also required that you attend money management courses at your expense before discharging your debts. However, it is always better to approach a good bankruptcy lawyer before taking any steps!
http://www.articlecat.com/Article/Is-Filing-For-Bankruptcy-The-Solution-/4267
Friday, September 28, 2007
Loan After Bankruptcy: Steps To Take Before You Apply
When it comes to a loan after bankruptcy, here are some steps you can take before applying which could increase your chances of qualifying.
First, work on increasing your credit score. This is very important, because most lenders will review your credit report when deciding whether or not to extend you a loan after bankruptcy. This is true
whether you are talking about a car loan after bankruptcy, a conventional home loan after bankruptcy, or a personal loan after bankruptcy.
So how do you increase your credit score? There are a number of ways. One is by removing any inaccurate or obsolete negative information from your credit reports. Another way is to open some new accounts and pay them in a timely manner over time. There are more ways to increase your credit score, but I don't have enough space to cover them here.
Second, you will need to know which lenders to approach when it comes to applying for a loan after bankruptcy. For example, if you apply for with a lender that doesn't accept applicants that have a
recent bankruptcy on their credit report then you never had a chance to begin with.
So how do you know which lender to approach? Ask questions. This is critical when applying for a loan after bankruptcy. What kind of questions should you ask? While there are several, let me give you two as an example:
1) Do you consider applicants who have a bankruptcy on their credit report?
The lender will probably want to know how old the bankruptcy is, whether it was discharged or dismissed, etc.. You will want to have that information available should the lender consider extending you a loan after bankruptcy.
2) What are your qualification guidelines?
Most lenders have a minimum criteria that applicants must meet in order to qualify for a loan. For example, if you apply for a home loan after bankruptcy, the lender will probably require a minimum credit score, a minimum debt to income ratio, etc. in order to qualify for the loan. You need to find out what the lenders' minimum criteria is before you apply for a loan after bankruptcy.
Finally, after you've increased your credit score and found a lender who will consider your application for a loan after bankruptcy you will need to negotiate the terms such as the interest rate, finance charges, down payment, etc.
This is where a lot of people get taken advantage of when it comes to getting a loan after bankruptcy. Some lenders will act like they are doing you a "favor" and tack a pile of interest on top of the loan - and add extra finance charges. Depending on what you're financing, this can add $100s or even $1,000s to your loan after bankruptcy. In After Bankruptcy Credit Solutions, I cover specific strategies you can use to stop lenders who try to take advantage of your situation.
Now you know some specific steps you can take before applying for a loan after bankruptcy which could help increase your chances of qualifying - as well as what to watch out for once you've found a lender who will extend you a loan after bankruptcy.
DISCLAIMER:
This information is designed to provide only a general overview of the subject matter herein.
This information is provided with the understanding that neither the publisher nor author is engaged in rendering legal, accounting or other professional advice. If legal or other expert assistance is required, the services of a professional should be sought.
Neither the publisher nor author shall be liable for any loss or damages, including but not limited to special, consequential, incidental or other damages, caused by the information contained herein.
http://www.articlecat.com/Article/Loan-After-Bankruptcy--Steps-To-Take-Before-You-Apply/4944
First, work on increasing your credit score. This is very important, because most lenders will review your credit report when deciding whether or not to extend you a loan after bankruptcy. This is true
whether you are talking about a car loan after bankruptcy, a conventional home loan after bankruptcy, or a personal loan after bankruptcy.
So how do you increase your credit score? There are a number of ways. One is by removing any inaccurate or obsolete negative information from your credit reports. Another way is to open some new accounts and pay them in a timely manner over time. There are more ways to increase your credit score, but I don't have enough space to cover them here.
Second, you will need to know which lenders to approach when it comes to applying for a loan after bankruptcy. For example, if you apply for with a lender that doesn't accept applicants that have a
recent bankruptcy on their credit report then you never had a chance to begin with.
So how do you know which lender to approach? Ask questions. This is critical when applying for a loan after bankruptcy. What kind of questions should you ask? While there are several, let me give you two as an example:
1) Do you consider applicants who have a bankruptcy on their credit report?
The lender will probably want to know how old the bankruptcy is, whether it was discharged or dismissed, etc.. You will want to have that information available should the lender consider extending you a loan after bankruptcy.
2) What are your qualification guidelines?
Most lenders have a minimum criteria that applicants must meet in order to qualify for a loan. For example, if you apply for a home loan after bankruptcy, the lender will probably require a minimum credit score, a minimum debt to income ratio, etc. in order to qualify for the loan. You need to find out what the lenders' minimum criteria is before you apply for a loan after bankruptcy.
Finally, after you've increased your credit score and found a lender who will consider your application for a loan after bankruptcy you will need to negotiate the terms such as the interest rate, finance charges, down payment, etc.
This is where a lot of people get taken advantage of when it comes to getting a loan after bankruptcy. Some lenders will act like they are doing you a "favor" and tack a pile of interest on top of the loan - and add extra finance charges. Depending on what you're financing, this can add $100s or even $1,000s to your loan after bankruptcy. In After Bankruptcy Credit Solutions, I cover specific strategies you can use to stop lenders who try to take advantage of your situation.
Now you know some specific steps you can take before applying for a loan after bankruptcy which could help increase your chances of qualifying - as well as what to watch out for once you've found a lender who will extend you a loan after bankruptcy.
DISCLAIMER:
This information is designed to provide only a general overview of the subject matter herein.
This information is provided with the understanding that neither the publisher nor author is engaged in rendering legal, accounting or other professional advice. If legal or other expert assistance is required, the services of a professional should be sought.
Neither the publisher nor author shall be liable for any loss or damages, including but not limited to special, consequential, incidental or other damages, caused by the information contained herein.
http://www.articlecat.com/Article/Loan-After-Bankruptcy--Steps-To-Take-Before-You-Apply/4944
Unwrapping Bankruptcy
Bankruptcy is a choice many consider when faced with unmanageable multiple debts. But finance experts agree that declaring oneself bankrupt should be an indebted individual's last resort to meet his dues. It may free a person's mind from the pressure of paying his debts but it can also seriously damage the person's morale and credit history for a long time. Aside from this, people who declared themselves bankrupt are often met with hostility by the people around them. But as an option to reduce financial burden, bankruptcy is still worth considering.
By filing for and declaring oneself bankrupt, a debtor's relationship with his creditors is adjusted. Many of his debts are forgiven and he is also allowed to keep some properties labeled as exempt items. However, all of his valuable properties are sold off and the proceeds are distributed among his creditors. As a result, some of his debts can be paid in full or just partly. If most of his valuable properties (i.e. house, car) are named as collateral for any debt such as mortgage or a car loan, the proceeds from the selling of these items are used to pay these specific debts. Only the balance or excess is used to pay off the other debts. In a sense, bankruptcy fulfills two objectives: it frees the debtor from paying his debts and ensures that all assets are distributed among the his creditors.
Bankruptcy happens in two ways: voluntary or involuntary. Declaring oneself bankrupt is categorized as voluntary whereas being forced into declaring bankruptcy by creditors is involuntary. Lawyers who specialize in finance cases advise debtors to cooperate in cases of involuntary declarations. There are also different types of being bankrupt. One is filing for a straight bankruptcy wherein all your properties are sold to pay off debts and the other is arranging for a repayment plan to avert foreclosure or repossession of properties. People whose debts are incurred by temporary setbacks (sickness, divorce) are usually considered for the partial type.
Although being bankrupt does lighten one's financial burden, it also has drawbacks. First, the debtor loses all control over his properties and assets. Any business the debtor owns is closed and all its employees are dismissed. Second, his credit accounts are closed such as loans, credit cards, and bank accounts. Also, bankruptcy remains in a person's credit history for 10 years which can seriously damage his credit reputation. Third, his bankrupt state is made public by advertisements in local papers. In addition, the bankrupt individual must inform every person he deals with about his bankrupt state unless after he is discharged. As a result, the bankrupt often faces hostility, or prejudices in terms of business or professional opportunities.
Finance experts generally recommend assessing financial situations before filing for bankruptcy. It is often the case that debtors declare 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 advisors or finance lawyers to help them understand the process and its effects. Debtors need to pay court application fees, but if they cannot afford it, there are non-profit legal aid organizations that are willing to help.
http://www.articlecat.com/Article/Unwrapping-Bankruptcy/5093
By filing for and declaring oneself bankrupt, a debtor's relationship with his creditors is adjusted. Many of his debts are forgiven and he is also allowed to keep some properties labeled as exempt items. However, all of his valuable properties are sold off and the proceeds are distributed among his creditors. As a result, some of his debts can be paid in full or just partly. If most of his valuable properties (i.e. house, car) are named as collateral for any debt such as mortgage or a car loan, the proceeds from the selling of these items are used to pay these specific debts. Only the balance or excess is used to pay off the other debts. In a sense, bankruptcy fulfills two objectives: it frees the debtor from paying his debts and ensures that all assets are distributed among the his creditors.
Bankruptcy happens in two ways: voluntary or involuntary. Declaring oneself bankrupt is categorized as voluntary whereas being forced into declaring bankruptcy by creditors is involuntary. Lawyers who specialize in finance cases advise debtors to cooperate in cases of involuntary declarations. There are also different types of being bankrupt. One is filing for a straight bankruptcy wherein all your properties are sold to pay off debts and the other is arranging for a repayment plan to avert foreclosure or repossession of properties. People whose debts are incurred by temporary setbacks (sickness, divorce) are usually considered for the partial type.
Although being bankrupt does lighten one's financial burden, it also has drawbacks. First, the debtor loses all control over his properties and assets. Any business the debtor owns is closed and all its employees are dismissed. Second, his credit accounts are closed such as loans, credit cards, and bank accounts. Also, bankruptcy remains in a person's credit history for 10 years which can seriously damage his credit reputation. Third, his bankrupt state is made public by advertisements in local papers. In addition, the bankrupt individual must inform every person he deals with about his bankrupt state unless after he is discharged. As a result, the bankrupt often faces hostility, or prejudices in terms of business or professional opportunities.
Finance experts generally recommend assessing financial situations before filing for bankruptcy. It is often the case that debtors declare 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 advisors or finance lawyers to help them understand the process and its effects. Debtors need to pay court application fees, but if they cannot afford it, there are non-profit legal aid organizations that are willing to help.
http://www.articlecat.com/Article/Unwrapping-Bankruptcy/5093
5 Bankruptcy Questions To Ask Your Attorney Before Filing
If you think that being bankrupt is the worst thing that could happen to you than think again! Yes you are right�Worst is yet to come, but of course you can control and eliminate that worst scenario by simply making correct decisions! Hiring a wrong attorney for filing your bankruptcy can be like a nightmare coming true!
So it is better that before hiring you do some research and make sure that you find an attorney who could really show you way attorney who could really show you way out from the bankruptcy mess!
Facts about selecting the Attorneys:
As most of the attorneys are usually overworked, they aren't able to give ear to full details of your case. You may feel that your attorney isn't pursuing your case the way you want him to pursue and ultimately you will feel irritated.
Many of the attorneys aren't qualified enough to lead your bankruptcy case. So such attorneys don't fulfill your expectations. Certificates are important indicators to judge whether the attorney is qualified enough or not.
Asking from friends won't take you to any good lawyer, unless your friend has gone through filing for bankruptcy but it may be useful to take advice from legal professionals.
You can even go to a bankruptcy court and observe the attorneys there. Maybe during your observation, you will find some attorneys who are good enough for you.
Once you find the attorney, you can satisfy yourself completely by asking him the right questions. A short conversation can tell you a lot about the attorney you have chosen. You can ask him about his expertise and his working and consultation hours. After conversation, you can evaluate the attorney to see if that attorney is really right for you or not!
Once you select the attorney, you must discuss with him what type of bankruptcy should you file? There are eight different types for filing bankruptcy. You attorney can best point out which type suits you for filing bankruptcy.
Secondly, you need to ask him how you can file for bankruptcy. You have to file for your bankruptcy in the state where you are living. The Attorney can prepare the necessary paperwork that would be needed to present to the courts.
Thirdly, you must know the fees that are involved in the filing for bankruptcy. The total fees will comprise of the attorney's fees plus the court fees that you need to submit to file for your bankruptcy.
Fourth, you must know where you should file your bankruptcy claim. You need to consult your attorney on how to get there and what documentation is required.
Finally you must know the after effects of filing for bankruptcy. As soon as you file for bankruptcy, creditors will receive notification from the courts and will not be allowed to contact debtor for payments. A hearing in court will be set. The case will proceed depending on type of bankruptcy filed.
Remember that this is your fight, so you have to be really involved in it and follow the case. You just cannot leave everything on the attorney!
http://www.articlecat.com/Article/5-Bankruptcy-Questions-To-Ask-Your-Attorney-Before-Filing/6434
So it is better that before hiring you do some research and make sure that you find an attorney who could really show you way attorney who could really show you way out from the bankruptcy mess!
Facts about selecting the Attorneys:
As most of the attorneys are usually overworked, they aren't able to give ear to full details of your case. You may feel that your attorney isn't pursuing your case the way you want him to pursue and ultimately you will feel irritated.
Many of the attorneys aren't qualified enough to lead your bankruptcy case. So such attorneys don't fulfill your expectations. Certificates are important indicators to judge whether the attorney is qualified enough or not.
Asking from friends won't take you to any good lawyer, unless your friend has gone through filing for bankruptcy but it may be useful to take advice from legal professionals.
You can even go to a bankruptcy court and observe the attorneys there. Maybe during your observation, you will find some attorneys who are good enough for you.
Once you find the attorney, you can satisfy yourself completely by asking him the right questions. A short conversation can tell you a lot about the attorney you have chosen. You can ask him about his expertise and his working and consultation hours. After conversation, you can evaluate the attorney to see if that attorney is really right for you or not!
Once you select the attorney, you must discuss with him what type of bankruptcy should you file? There are eight different types for filing bankruptcy. You attorney can best point out which type suits you for filing bankruptcy.
Secondly, you need to ask him how you can file for bankruptcy. You have to file for your bankruptcy in the state where you are living. The Attorney can prepare the necessary paperwork that would be needed to present to the courts.
Thirdly, you must know the fees that are involved in the filing for bankruptcy. The total fees will comprise of the attorney's fees plus the court fees that you need to submit to file for your bankruptcy.
Fourth, you must know where you should file your bankruptcy claim. You need to consult your attorney on how to get there and what documentation is required.
Finally you must know the after effects of filing for bankruptcy. As soon as you file for bankruptcy, creditors will receive notification from the courts and will not be allowed to contact debtor for payments. A hearing in court will be set. The case will proceed depending on type of bankruptcy filed.
Remember that this is your fight, so you have to be really involved in it and follow the case. You just cannot leave everything on the attorney!
http://www.articlecat.com/Article/5-Bankruptcy-Questions-To-Ask-Your-Attorney-Before-Filing/6434
Tips On Buying a House after Bankruptcy
Nowadays, people file for bankruptcy for a number of reasons. Some unexpected medical bills, the loss of a job or perhaps overwhelming debt can be some of the reasons for one to file for bankruptcy. One may then start thinking if it is possible to buy a home after bankruptcy. And the answer is in the affirmative. There are many mortgage companies and online lenders out there who offer home loans for even those who have bankruptcy on their credit report.
You will then have to rebuild your credit once your bankruptcy is discharged. You can do this by opening a credit card account to which you will have to make regular payments. Another alternative is to save for a considerable down payment as the larger the cash reserve is, the better the rates you will get! Check on your credit report to make sure that all accounts linked with your bankruptcy are closed.
Make sure that the payment history information is right too as the difference in one late payment can greatly increase your interest rates by a percent or more. Once you improve your credit score through the repayment of the home loan, you can easily take out an equity loan on the home to consolidate any other debt you have since your bankruptcy or to use the extra cash on some business venture.
Before you actually start looking for the right house loan, it is better to look at your budget. Decide how much you can afford as a loan, how much you can make as a down payment, and the monthly payments you can make. With this information, you can decide how much loan to apply for, and the type of financing to opt for.
However, if you intend to live in that house for more than seven years, it is better to find a fixed rate mortgage as it saves money; in the long term. To get an idea of the type of loan to get, you could use a mortgage calculator for estimations.
Once you have an idea of the type of loan you need, you should start investigating the various financing companies. Lenders have little to lose when approving home loans after bankruptcy as the lender feels confident when your home serves as collateral for the loan. There are some lenders who need a certain amount of time to pass before approving for the loan. However, there are also lenders out there who will approve your loan even a day after the bankruptcy has been discharged.
Request free quotes and then investigate their rates. To get these quotes, you need only to furnish basic information, with no need of showing your credit card. This way your credit score is not affected. Once you get all the quotes, compare the APR for the real cost of the loan. It is no point just looking at the interest rates, as they are rather misleading.
Ask if there are any; fees related to the loan as if you plan in refinancing your home, you may have to pay thousands as fees. However, these fees can be negotiated.
http://www.articlecat.com/Article/Tips-On-Buying-a-House-after-Bankruptcy/7107
You will then have to rebuild your credit once your bankruptcy is discharged. You can do this by opening a credit card account to which you will have to make regular payments. Another alternative is to save for a considerable down payment as the larger the cash reserve is, the better the rates you will get! Check on your credit report to make sure that all accounts linked with your bankruptcy are closed.
Make sure that the payment history information is right too as the difference in one late payment can greatly increase your interest rates by a percent or more. Once you improve your credit score through the repayment of the home loan, you can easily take out an equity loan on the home to consolidate any other debt you have since your bankruptcy or to use the extra cash on some business venture.
Before you actually start looking for the right house loan, it is better to look at your budget. Decide how much you can afford as a loan, how much you can make as a down payment, and the monthly payments you can make. With this information, you can decide how much loan to apply for, and the type of financing to opt for.
However, if you intend to live in that house for more than seven years, it is better to find a fixed rate mortgage as it saves money; in the long term. To get an idea of the type of loan to get, you could use a mortgage calculator for estimations.
Once you have an idea of the type of loan you need, you should start investigating the various financing companies. Lenders have little to lose when approving home loans after bankruptcy as the lender feels confident when your home serves as collateral for the loan. There are some lenders who need a certain amount of time to pass before approving for the loan. However, there are also lenders out there who will approve your loan even a day after the bankruptcy has been discharged.
Request free quotes and then investigate their rates. To get these quotes, you need only to furnish basic information, with no need of showing your credit card. This way your credit score is not affected. Once you get all the quotes, compare the APR for the real cost of the loan. It is no point just looking at the interest rates, as they are rather misleading.
Ask if there are any; fees related to the loan as if you plan in refinancing your home, you may have to pay thousands as fees. However, these fees can be negotiated.
http://www.articlecat.com/Article/Tips-On-Buying-a-House-after-Bankruptcy/7107
3 Simples Ways To Avoid Bankruptcy
In this debt-ridden society, many people are in severe financial difficulties. While bankruptcy is the last step in a long road of financial pressures for many, others opt for this solution too early, sometimes without considering suitable bankruptcy alternatives.
There are several options available for you if you are in debt and do not wish to declare bankruptcy. The most sought-after option is obtaining a debt-consolidation loan and closing all existing credit lines.
Debt consolidation is where you take a new unsecured loan and use the funds to pay off your outstanding debts.
An unsecured debt consolidation loan will help you consolidate all your unsecured debt and avoid bankruptcy. This new money can save you hundreds of dollars per month if you choose to use your loan to pay off existing debt - especially high rate credit cards. Even if you don't own a home, you could qualify for their debt consolidation loan.
Debt consolidation loans are repayable over a longer term at a relatively low interest rate. This means that the monthly repayments are lower. If the loan is secured on your property then the interest rate and payments may be even lower.
But you must compare the pros and of debt consolidation loans before taking the plunge. There are two options for consolidating debts - either you borrow money to pay off all your debts or seek assistance from a debt consolidation service. The decision on which option will meet your needs has a lot to do with whether you can qualify for qualify for low mortgage rates on debt consolidation loans , and the total amount of debt you need to consolidate.
Borrowing for debt consolidation immediately eliminates multiple debt payments. All debt collection actions eliminated. Most importantly, it won't impact your credit rating; infact it may help improve your credit rating. Seeking debt consolidation services immediately decreases your monthly payments. It also brings to a stop, and in some cases, eliminates some interest and fees.
By getting this loan and using it to pay off credit cards, you'll pay much less interest. Once you've paid off your credit cards or other debt, you'll have a fresh start with your finances and can set up a budget within which you can live comfortably without ever having to run up credit card debt again.
Debt consolidation is an excellent tool that can help you manage and decrease your debt when you just can't seem to do it on your own. There is no way that you can completely fix bad credit without the ability to reduce debt and pay your bills on time. However, once your debt has reached a certain level, this can seem almost impossible to accomplish.
A credit counsellor can provide you with the option of enrolling in a debt management plan, which provides immediate relief and allows repayment of debts without the high fees and negative ramifications of bankruptcy.
However, your choice has to be based upon your financial situation, as well as fit in with your own belief system and lifestyle.
http://www.articlecat.com/Article/3-Simples-Ways-To-Avoid-Bankruptcy/7137
There are several options available for you if you are in debt and do not wish to declare bankruptcy. The most sought-after option is obtaining a debt-consolidation loan and closing all existing credit lines.
Debt consolidation is where you take a new unsecured loan and use the funds to pay off your outstanding debts.
An unsecured debt consolidation loan will help you consolidate all your unsecured debt and avoid bankruptcy. This new money can save you hundreds of dollars per month if you choose to use your loan to pay off existing debt - especially high rate credit cards. Even if you don't own a home, you could qualify for their debt consolidation loan.
Debt consolidation loans are repayable over a longer term at a relatively low interest rate. This means that the monthly repayments are lower. If the loan is secured on your property then the interest rate and payments may be even lower.
But you must compare the pros and of debt consolidation loans before taking the plunge. There are two options for consolidating debts - either you borrow money to pay off all your debts or seek assistance from a debt consolidation service. The decision on which option will meet your needs has a lot to do with whether you can qualify for qualify for low mortgage rates on debt consolidation loans , and the total amount of debt you need to consolidate.
Borrowing for debt consolidation immediately eliminates multiple debt payments. All debt collection actions eliminated. Most importantly, it won't impact your credit rating; infact it may help improve your credit rating. Seeking debt consolidation services immediately decreases your monthly payments. It also brings to a stop, and in some cases, eliminates some interest and fees.
By getting this loan and using it to pay off credit cards, you'll pay much less interest. Once you've paid off your credit cards or other debt, you'll have a fresh start with your finances and can set up a budget within which you can live comfortably without ever having to run up credit card debt again.
Debt consolidation is an excellent tool that can help you manage and decrease your debt when you just can't seem to do it on your own. There is no way that you can completely fix bad credit without the ability to reduce debt and pay your bills on time. However, once your debt has reached a certain level, this can seem almost impossible to accomplish.
A credit counsellor can provide you with the option of enrolling in a debt management plan, which provides immediate relief and allows repayment of debts without the high fees and negative ramifications of bankruptcy.
However, your choice has to be based upon your financial situation, as well as fit in with your own belief system and lifestyle.
http://www.articlecat.com/Article/3-Simples-Ways-To-Avoid-Bankruptcy/7137
A Look At Personal Bankruptcy & What To Expect
One of the most difficult decisions that you can face is whether or not to file for bankruptcy. For individuals, there are basically two types of personal bankruptcy, which includes Chapter 7 and Chapter 13. Designed to give the filer a fresh start in life by wiping out certain debts, a Chapter 7 bankruptcy will rid the filer of credit card and other unsecured debt. A chapter 13 bankruptcy, on the other hand, is a court-approved payment plan in which the filer is required to repay a predetermined percentage of their debt. The determination of which chapter to file will be based on the filer�s disposable income, if any, after paying their necessary monthly bills.
When many people file for bankruptcy, their first thoughts are of their assets and whether or not they may lose their home. In a Chapter 13 repayment plan, the majority of filers are allowed to keep their property in exchange for repaying a portion of their debts. A Chapter 7, however, is designed to be a liquidation process that often results in the sale of non-exempt property. Which property is non-exempt in a bankruptcy proceeding? Each state has it�s own laws pertaining to the amount of property that an individual or married couple can keep without having to worry about it being liquidated.
The official bankruptcy process begins upon filing a petition with the local bankruptcy court. This can either be done individually, also known as pro se, or with the help of an attorney. For most, hiring an attorney is the best way to make sure that every form is completed accurately and in order to make sure their assets are protected as much as possible. Upon the filing of a bankruptcy petition, the court will assign a trustee to the case and will set a date for a Meeting of the Creditors. Although creditors of the filer are invited to attend, they are not required to do so. The filer, however, is required to attend and will be questioned by the trustee, under oath, while having the meeting recorded. This meeting is typically the only appearance required of the filer unless special circumstances are present.
Following the Meeting of the Creditors, often referred to as the 341 meeting, the creditors will have 30 days to object to the filers property exemptions and another 30 days to object to the discharge if the filing is a Chapter 7 bankruptcy. In a Chapter 13 proceeding, creditors may object to the payment plan but the discharge will not be granted until the payment plan is complete. A Chapter 13 bankruptcy can last for up to 5 years before the payments are completed and a discharge is issued. Following the discharge, the bankruptcy case will be closed and the process will be complete.
This article is to be used for informational purposes only. It should not be used as, in place of or in conjunction with professional legal advice regarding bankruptcy. Anyone who is considering filing a petition for either personal or business bankruptcy should consult a licensed attorney in their area for additional information and/or legal advice.
http://www.articlecat.com/Article/A-Look-At-Personal-Bankruptcy---What-To-Expect/7317
When many people file for bankruptcy, their first thoughts are of their assets and whether or not they may lose their home. In a Chapter 13 repayment plan, the majority of filers are allowed to keep their property in exchange for repaying a portion of their debts. A Chapter 7, however, is designed to be a liquidation process that often results in the sale of non-exempt property. Which property is non-exempt in a bankruptcy proceeding? Each state has it�s own laws pertaining to the amount of property that an individual or married couple can keep without having to worry about it being liquidated.
The official bankruptcy process begins upon filing a petition with the local bankruptcy court. This can either be done individually, also known as pro se, or with the help of an attorney. For most, hiring an attorney is the best way to make sure that every form is completed accurately and in order to make sure their assets are protected as much as possible. Upon the filing of a bankruptcy petition, the court will assign a trustee to the case and will set a date for a Meeting of the Creditors. Although creditors of the filer are invited to attend, they are not required to do so. The filer, however, is required to attend and will be questioned by the trustee, under oath, while having the meeting recorded. This meeting is typically the only appearance required of the filer unless special circumstances are present.
Following the Meeting of the Creditors, often referred to as the 341 meeting, the creditors will have 30 days to object to the filers property exemptions and another 30 days to object to the discharge if the filing is a Chapter 7 bankruptcy. In a Chapter 13 proceeding, creditors may object to the payment plan but the discharge will not be granted until the payment plan is complete. A Chapter 13 bankruptcy can last for up to 5 years before the payments are completed and a discharge is issued. Following the discharge, the bankruptcy case will be closed and the process will be complete.
This article is to be used for informational purposes only. It should not be used as, in place of or in conjunction with professional legal advice regarding bankruptcy. Anyone who is considering filing a petition for either personal or business bankruptcy should consult a licensed attorney in their area for additional information and/or legal advice.
http://www.articlecat.com/Article/A-Look-At-Personal-Bankruptcy---What-To-Expect/7317
Home Loan after Bankruptcy Is it Possible?
After the crisis of bad credit and filing for bankruptcy, perhaps you may feel intimidated of starting up new transactions. For instance, you may feel disheartened about purchasing a new home because of your bad credit history. However, even if you have a record of bankruptcy in your credit report, there is still a chance to make a new start.
Today, there are mortgage companies who are willing to grant home loan approvals for those who filed for bankruptcy in the past. Tough competition among lending companies in the market drives these lenders to give special home loan packages for those who have been through bankruptcy. As long you have been discharged from your debts, you can go right ahead and submit that home loan application.
Will Lenders Accept Your Application?
Lenders are not merely taking chances. After all, your home property will be used as a security for your loan so theres really not much risk involved. If youre done filing Chapter 11 or Chapter 7 of bankruptcy, you can call a lending company and ask about your chances of getting an approval.
While other lenders require 2 years of interval after your bankruptcy has been discharged, other lenders also grant home loan approvals after just one day of discharge. If you have been submitting your payments religiously and all your payments are reported to the major credit bureaus, you should have no problem getting a loan approval.
What About the Down Payment?
You might also be required to give at least 3 to 5% of down payment in order to get an approval. If you do not have the money to use as down payment perhaps you can borrow from a friend or a relative. However, if the money you will put down is borrowed, you should disclose this to your lender before closing. It is important to declare to your lender where the money is coming from since not doing so can be counted as defrauding your lender.
Another option can be programs such as Neighborhood Gold or the Nehemiah. These down payment assistance programs help you get the loan even if you dont have enough cash to put down. Use the internet to search about down payment assistance programs.
Starting New
Once your home loan is granted, dont forget that youll be paying monthly payments for your mortgage. This is your chance to rebuild your credit history. If your reason for filing bankruptcy in the past were circumstances beyond your control such as illness, loss of job, death in the family, calamities and other unfortunate events, then you may not accountable for bad credit.
However, if the reason behind your bankruptcy is due to unpaid debts because of irresponsible management of your finances, then you might have already learned your lesson. Keeping up with your monthly payments is the best way to avoid being caught in bad debt. Live according to your means and do not waste time in making adjustments with your lifestyle if you see the need to change. This is your chance to own a home and to regain your reputation.
http://www.articlecat.com/Article/Home-Loan-after-Bankruptcy--Is-it-Possible-/52595
Today, there are mortgage companies who are willing to grant home loan approvals for those who filed for bankruptcy in the past. Tough competition among lending companies in the market drives these lenders to give special home loan packages for those who have been through bankruptcy. As long you have been discharged from your debts, you can go right ahead and submit that home loan application.
Will Lenders Accept Your Application?
Lenders are not merely taking chances. After all, your home property will be used as a security for your loan so theres really not much risk involved. If youre done filing Chapter 11 or Chapter 7 of bankruptcy, you can call a lending company and ask about your chances of getting an approval.
While other lenders require 2 years of interval after your bankruptcy has been discharged, other lenders also grant home loan approvals after just one day of discharge. If you have been submitting your payments religiously and all your payments are reported to the major credit bureaus, you should have no problem getting a loan approval.
What About the Down Payment?
You might also be required to give at least 3 to 5% of down payment in order to get an approval. If you do not have the money to use as down payment perhaps you can borrow from a friend or a relative. However, if the money you will put down is borrowed, you should disclose this to your lender before closing. It is important to declare to your lender where the money is coming from since not doing so can be counted as defrauding your lender.
Another option can be programs such as Neighborhood Gold or the Nehemiah. These down payment assistance programs help you get the loan even if you dont have enough cash to put down. Use the internet to search about down payment assistance programs.
Starting New
Once your home loan is granted, dont forget that youll be paying monthly payments for your mortgage. This is your chance to rebuild your credit history. If your reason for filing bankruptcy in the past were circumstances beyond your control such as illness, loss of job, death in the family, calamities and other unfortunate events, then you may not accountable for bad credit.
However, if the reason behind your bankruptcy is due to unpaid debts because of irresponsible management of your finances, then you might have already learned your lesson. Keeping up with your monthly payments is the best way to avoid being caught in bad debt. Live according to your means and do not waste time in making adjustments with your lifestyle if you see the need to change. This is your chance to own a home and to regain your reputation.
http://www.articlecat.com/Article/Home-Loan-after-Bankruptcy--Is-it-Possible-/52595
ARIZONA TRUSTEE'S SALE AND BANKRUPTCY
Many times people call me for advice on bankruptcy because their home is in the middle of a trustee's sale (sometimes called a "foreclosure"). For some reason many wait until almost too late to ask for any help. In fact, one couple waited to call until day before the sale; expecting that the process to stop the sale was so simple that anyone could do it in a moments notice. The Bankruptcy laws became so complex after October 17, 2005 that it is extremely difficult to do all that must be done in just a few hours. Therefore, I urge you to NEVER wait until just a few days, or even a couple of weeks before a sale is scheduled for your home. This last minute rush puts everyone in a position of extreme stress and your attorney will not have the time necessary to properly review your situation. Unless the filing of a bankruptcy is done correctly you may only delay your problems and still lose your home. It takes time to properly complete, review, sign and file the huge stack of bankruptcy documents. Those documents must be accurate because you are going to testify, under oath, that they are true and correct to the best of your knowledge. Also, you are required to take a Credit Counseling class BEFORE filing your bankruptcy documents.
What should you do if you are behind on your mortgage payments? Once you realize that you cannot pay the regular payments you need to be immediately pro-active. Contact your mortgage company to determine if they have programs to help you. Find out from all your lenders the amount that is owed against the house. Determine the true value of your home. Talk to neighbors and realtors to determine the true value of your home; make sure to consider all necessary repairs. Deduct the costs repairs and the costs of selling your home (closing costs and realtor fees) from the value. After you have these numbers decide whether you can afford to keep this house and whether there is value (equity) over and above the debt(s) owed on the home. Do not include judgments; but do include IRS or Arizona Department of Tax liens - if they have been recorded. Options: (1) workout payment arrangements with the lender; (2) sell the house and use the equity to start over; or (3) rent to house for enough to pay the mortgage(s). If there is no equity and you cannot sell the house for what is owed against it, then you have to consider letting the lender foreclose, or talk to the lender about a "short sale" or Deed in Lieu of Foreclosure. All of this work must be done before you can make a decision as to the next step - whether or not to file bankruptcy.
Understand that if you wait until after a trustee's sale has been started there will be additional fees and costs for the trustee who is conducting the trustee's sale. Those fees and costs will be at least $1,500. You must pay those additional trustee's fees and costs, plus all past due mortgage payments. In addition, your past due payments will increase if your loan has a default rate of interest and late charges. The quicker you do something, the less money you will need to pay. If none of the options above work for you, then you may need to consider bankruptcy. Bankruptcy is not a long term answer if you cannot afford to pay the regular monthly payments. There are two types of bankruptcy which are applicable in your situation. The first is a chapter 7 and second type is a chapter 13 - see Bankruptcy FAQ for more information about the differences.
What is a trustee's sale? If you are behind in our mortgage payments the lender has the right to start a judicial foreclosure or trustee's sale of your home. Ultimately your home will be sold, whether through a trustee or by a sheriff. Once this happens you will no longer own the property and you must move. The following is the normal procedure followed by creditors to foreclose on your property. In Arizona there are two possible procedures (1) a judicial foreclosure, or (2) a trustee's sale. Most likely your lender will elect to proceed with a trustee's sale. It is the cheapest and quickest method to protect their interest in your property. This article is not going to discuss the judicial foreclosure process.
Trustee's Sale is recorded
Before the lender commences a trustee's sale they will normally send you demand letters identifying the default. It is very important that you respond to these demands. Ask for an accounting of the loan payments and compare them with your records. If there is any discrepancy - work diligently and quickly to fix the problem. Follow through on any requests for information and agreements to pay. Sometimes it is not possible for you to pay what you owe (the arrears). The lender will most likely start the trustee's sale. A Notice of Sale is recorded with the County Recorder and you, along with all those that have interests in your property, will receive a copy of the Notice of Sale and the Statement of Breach. The Statement of Breach will identify the defaults (e.g. failure to make monthly payments).
By Arizona State law the trustee's sale auction cannot be completed until at least 90 days after the date that the Notice of Sale was recorded (Arizona Revised Statutes: 33-807 D). Therefore, once you receive the notice you still have time to try to cure the back payments, sell the property and pay the debt or enter into a workout with the lender.
Curing the House Payment Arrears
The law is very specific as to the property owner's rights and what the trustee must do with regards to accepting payment to cure all the arrears. These rights also apply to all junior lienholders (other lenders secured by your home). There are some very specific steps to follow in order for the lender/servicer to provide the property owner with the exact amount necessary to cure the arrears. DO NOT WAIT UNTIL THE LAST MINUTE TO REQUEST THIS INFORMATION - IT WILL MOST LIKELY TAKE TWO WEEKS TO GET THE AMOUNTS DUE.
First you must contact the lender/servicer/trustee (best to contact all three) in writing and request a reinstatement through and including a specific date when you are sure you will have the money to pay the arrears. The trustee is required by law to respond to your request for a reinstatement (cure of the arrears or payoff - Arizona Revised Statues: 33-803.01). Include a request for them to identify where you should make the payment and what form (e.g. cashier's check).
If you do not receive a response within 72 hours then send another request. Keep sending requests every 3 days until you receive a response with the information that you requested. Keep copies of each demand in case you need them later to prove how difficult the lender/servicer/trustee has been to deal with. If the lender/servicer/trustee does not respond after four or five demands then immediately hire an attorney. You can also file a complaint with the Arizona Banking Department. In addition, go to the Arizona Corporation Commission's web site and find the shareholders for each of these entities. Send each of the shareholders a certified demand for information, along with the copy of the complaint that you have filed. If the Trustee is a lawyer than file a complaint with the State Bar of Arizona. Of course, you can always file a complaint in court to ask a judge to make the lender perform as request. Beware - none of these action will terminate the trustee's sale.
Once you have received the accounting compare it with your records. If you have not been keeping copies of payments, then you have no proof that you made any missing payments. Do not chance losing your home because you are stubborn and will not pay one or more mortgage payments you are sure you paid, but do not have proof. Immediately make arrangements to pay the full amount. Remember that the longer you wait to pay the more the late charges and other penalties you incur. Keep copies of all correspondence, keep diary of the person you talked to, including the date and time of the discussion. Confirm all verbal communications by sending a letter, fax or e-mail detailing your understanding of the agreement.
The following is the law governing reinstatement and cancellation of trustee sales as of February 2006. For updates you can go to the current Arizona Statutes.
33-813. Default in performance of contract secured; reinstatement; cancellation of recorded notice of sale
A. If, prior to the maturity date fixed by the contract or contracts, all or a portion of a principal sum or interest of the contract or contracts secured by a trust deed becomes due or is declared due by reason of a breach or default in the performance of the contract or contracts or of the trust deed, the trustor or the trustor's successor in interest, any person having a subordinate lien or encumbrance of record thereon or any beneficiary under a subordinate trust deed, before 5:00 p.m. mountain standard time on the last day other than a Saturday or legal holiday before the date of sale or the filing of an action to foreclose the trust deed, may reinstate by paying to the beneficiary, the trustee or the trustee's agent in a form acceptable to the beneficiary or the trustee the entire amount then due under the terms of the contract or contracts or trust deed, other than the portion of the principal as would not then be due had no default occurred, by curing all other defaults and by paying the amounts due under subsection B of this section.
B. The beneficiary shall notify the trustee in writing of the performance and the name of the person who performed the conditions. The proceedings shall be cancelled and the contract or contracts and trust deed shall be deemed reinstated and in force as if no breach or default had occurred upon performance of those of the following which may be applicable:
1. Payment of the entire amount then due.
2. Payment of costs and expenses incurred in enforcing the terms of such contract or trust deed. These costs and expenses may include the following:
(a) Reasonable costs for mailing and photocopying.
(b) Actual expenses incurred for recording, publication, posting of notice of sale, auctioneer's fee, postponement fees and title costs.
(c) Other reasonable costs and expenses.
3. Payment of the recording fee for a cancellation of notice of sale.
4. Payment of the trustee's fees, in an amount not to exceed six hundred dollars or one-half of one per cent of the entire unpaid principal sum secured, whichever is greater.
5. Payment of expenses and reasonable attorney fees that are not otherwise provided for in this section and that are incurred in protecting and preserving the beneficiary's interest in the trust property.
C. On request from the trustor or any person entitled to notice pursuant to section 33-809, subsection B, at any time that the trust deed is subject to reinstatement, the trustee shall provide a good faith estimate of the sums that appear necessary to reinstate the trust deed.
D. On written request from the trustor or any person entitled to notice pursuant to section 33-809, subsection B that is delivered to the trustee after the recording of the notice of trustee's sale, the trustee shall inform the person of the exact amount necessary to reinstate the trust deed, separately specifying costs, fees and any other amounts that are required to be paid as a condition to reinstatement of the trust deed. The trustee shall provide that information within five business days after receipt of the written request. If the written request is received by the trustee during the five business days before the day of the sale, the trustee shall provide the information to the person as soon as practicable. This subsection does not require the extension of the period for reinstatement of the trust deed prescribed in subsection A of this section.
E. If the trust deed is reinstated as provided in subsection B of this section, the trustee shall have a cancellation of the notice of sale recorded in the same county recorder's office where the notice of sale was recorded. A trustee who, for thirty days after reinstatement, fails to have proper notice of the cancellation of the notice of sale recorded is liable to the person who performed the conditions resulting in reinstatement for all actual damages resulting from such failure.
F. If the trust deed is paid in full or if the sale is not held or is not properly postponed pursuant to this chapter, the trustee shall record a cancellation of the notice of sale. The cancellation of the notice of sale shall be recorded in the office of the county recorder in which the notice of sale was recorded.
Getting Information About the Credit Bid:
Others may be interested in coming to the trustee's sale and purchasing your property. The amount that the lender is going to bid at sale is called the credit bid. A.R.S. Section 33-809(E) provides that beginning at 9:00 a.m. and continuing until 5:00 p.m. on the last business day preceding the day of sale and beginning at 9:00 a.m. and continuing until the time of sale on the day of the sale, the trustee shall provide to any person who requests of the actual bid or credit bid the beneficiary is entitled to make at the sale. If the trustee is unable to provide the credit bid during the prescribed time period, the trustee shall postpone the sale until the trustee is able to comply with this subsection. Again, the trustee has no liability for the accuracy or completeness of the information.
Filing Bankruptcy Before the Trustee's Sale is Completed
IMPORTANT NOTE: After October 17, 2005 this area of law is in flux - anyone who has filed more than one bankruptcy in the last 12 months may find that they cannot get the protection explained below. You must seek experienced bankruptcy attorney in order to determine your rights.
I have had several clients decide to file bankruptcy at this point because it can be a scary situation when they receive the Notice of Sale, or the investors start calling to "help them out of their situation". Unfortunately, by waiting until after a trustee's sale has actually been started you may have incurred $2,000 or more in fees and costs which must be paid as part of the arrears. All arrears can be included in the Chapter 13 bankruptcy plan and paid over a period of time stopping all additional service and late fees. The law is currently in flux as to exactly how long that period may be – probably 3-5 years. In order to qualify for a chapter 13 you must have more income than you have basic living expenses (excluding credit cards and other debts that will be discharged in your bankruptcy) and you must keep the new monthly mortgage payments current. Bankruptcy Monitoring fees, such as "drive by fees" cannot be charged to Debtor during an open chapter 13 (but see contract). (In re Stark vs Crestar Mortgage, (WD NC, 3/31/99) 242 B.R. 866)
If you are in a situation where you do not qualify for a chapter 13 then you might be able to file a chapter 7. The chapter 7 will delay the trustee's sale for a short period of time. The filing of a chapter 7 requires the creditor to file additional paperwork with the Bankruptcy Court called a Motion for Relief from the Automatic Stay. The Credit must obtain a signed court Order before proceeding with the trustee's sale. In that you have filed for bankruptcy the lender is not allowed to sue you and obtain money judgment. This result is that you can get rid of the debt on the house and all the other debts.
How Long Does All This Take?
Because every mortgage company is different and has different collection methods, it could take from 3 to 9 months for everything explained above to occur, your house to be sold at trustee's public auction and the new owner to require you to move out of the home. While it is not suggested that you live "rent free" in your home until the last minute before the Sheriff sets you out on the street, if you are severely behind in your mortgage payments and cannot afford to keep the house, use that time to save for a down payment on an rental and move as soon as possible.
http://www.dianedrain.com/Bankruptcy/BankruptcyArticles/Articles/TrusteeSaleForeclosuresinBankruptcy/trusteessaleandbankruptcy.htm
What should you do if you are behind on your mortgage payments? Once you realize that you cannot pay the regular payments you need to be immediately pro-active. Contact your mortgage company to determine if they have programs to help you. Find out from all your lenders the amount that is owed against the house. Determine the true value of your home. Talk to neighbors and realtors to determine the true value of your home; make sure to consider all necessary repairs. Deduct the costs repairs and the costs of selling your home (closing costs and realtor fees) from the value. After you have these numbers decide whether you can afford to keep this house and whether there is value (equity) over and above the debt(s) owed on the home. Do not include judgments; but do include IRS or Arizona Department of Tax liens - if they have been recorded. Options: (1) workout payment arrangements with the lender; (2) sell the house and use the equity to start over; or (3) rent to house for enough to pay the mortgage(s). If there is no equity and you cannot sell the house for what is owed against it, then you have to consider letting the lender foreclose, or talk to the lender about a "short sale" or Deed in Lieu of Foreclosure. All of this work must be done before you can make a decision as to the next step - whether or not to file bankruptcy.
Understand that if you wait until after a trustee's sale has been started there will be additional fees and costs for the trustee who is conducting the trustee's sale. Those fees and costs will be at least $1,500. You must pay those additional trustee's fees and costs, plus all past due mortgage payments. In addition, your past due payments will increase if your loan has a default rate of interest and late charges. The quicker you do something, the less money you will need to pay. If none of the options above work for you, then you may need to consider bankruptcy. Bankruptcy is not a long term answer if you cannot afford to pay the regular monthly payments. There are two types of bankruptcy which are applicable in your situation. The first is a chapter 7 and second type is a chapter 13 - see Bankruptcy FAQ for more information about the differences.
What is a trustee's sale? If you are behind in our mortgage payments the lender has the right to start a judicial foreclosure or trustee's sale of your home. Ultimately your home will be sold, whether through a trustee or by a sheriff. Once this happens you will no longer own the property and you must move. The following is the normal procedure followed by creditors to foreclose on your property. In Arizona there are two possible procedures (1) a judicial foreclosure, or (2) a trustee's sale. Most likely your lender will elect to proceed with a trustee's sale. It is the cheapest and quickest method to protect their interest in your property. This article is not going to discuss the judicial foreclosure process.
Trustee's Sale is recorded
Before the lender commences a trustee's sale they will normally send you demand letters identifying the default. It is very important that you respond to these demands. Ask for an accounting of the loan payments and compare them with your records. If there is any discrepancy - work diligently and quickly to fix the problem. Follow through on any requests for information and agreements to pay. Sometimes it is not possible for you to pay what you owe (the arrears). The lender will most likely start the trustee's sale. A Notice of Sale is recorded with the County Recorder and you, along with all those that have interests in your property, will receive a copy of the Notice of Sale and the Statement of Breach. The Statement of Breach will identify the defaults (e.g. failure to make monthly payments).
By Arizona State law the trustee's sale auction cannot be completed until at least 90 days after the date that the Notice of Sale was recorded (Arizona Revised Statutes: 33-807 D). Therefore, once you receive the notice you still have time to try to cure the back payments, sell the property and pay the debt or enter into a workout with the lender.
Curing the House Payment Arrears
The law is very specific as to the property owner's rights and what the trustee must do with regards to accepting payment to cure all the arrears. These rights also apply to all junior lienholders (other lenders secured by your home). There are some very specific steps to follow in order for the lender/servicer to provide the property owner with the exact amount necessary to cure the arrears. DO NOT WAIT UNTIL THE LAST MINUTE TO REQUEST THIS INFORMATION - IT WILL MOST LIKELY TAKE TWO WEEKS TO GET THE AMOUNTS DUE.
First you must contact the lender/servicer/trustee (best to contact all three) in writing and request a reinstatement through and including a specific date when you are sure you will have the money to pay the arrears. The trustee is required by law to respond to your request for a reinstatement (cure of the arrears or payoff - Arizona Revised Statues: 33-803.01). Include a request for them to identify where you should make the payment and what form (e.g. cashier's check).
If you do not receive a response within 72 hours then send another request. Keep sending requests every 3 days until you receive a response with the information that you requested. Keep copies of each demand in case you need them later to prove how difficult the lender/servicer/trustee has been to deal with. If the lender/servicer/trustee does not respond after four or five demands then immediately hire an attorney. You can also file a complaint with the Arizona Banking Department. In addition, go to the Arizona Corporation Commission's web site and find the shareholders for each of these entities. Send each of the shareholders a certified demand for information, along with the copy of the complaint that you have filed. If the Trustee is a lawyer than file a complaint with the State Bar of Arizona. Of course, you can always file a complaint in court to ask a judge to make the lender perform as request. Beware - none of these action will terminate the trustee's sale.
Once you have received the accounting compare it with your records. If you have not been keeping copies of payments, then you have no proof that you made any missing payments. Do not chance losing your home because you are stubborn and will not pay one or more mortgage payments you are sure you paid, but do not have proof. Immediately make arrangements to pay the full amount. Remember that the longer you wait to pay the more the late charges and other penalties you incur. Keep copies of all correspondence, keep diary of the person you talked to, including the date and time of the discussion. Confirm all verbal communications by sending a letter, fax or e-mail detailing your understanding of the agreement.
The following is the law governing reinstatement and cancellation of trustee sales as of February 2006. For updates you can go to the current Arizona Statutes.
33-813. Default in performance of contract secured; reinstatement; cancellation of recorded notice of sale
A. If, prior to the maturity date fixed by the contract or contracts, all or a portion of a principal sum or interest of the contract or contracts secured by a trust deed becomes due or is declared due by reason of a breach or default in the performance of the contract or contracts or of the trust deed, the trustor or the trustor's successor in interest, any person having a subordinate lien or encumbrance of record thereon or any beneficiary under a subordinate trust deed, before 5:00 p.m. mountain standard time on the last day other than a Saturday or legal holiday before the date of sale or the filing of an action to foreclose the trust deed, may reinstate by paying to the beneficiary, the trustee or the trustee's agent in a form acceptable to the beneficiary or the trustee the entire amount then due under the terms of the contract or contracts or trust deed, other than the portion of the principal as would not then be due had no default occurred, by curing all other defaults and by paying the amounts due under subsection B of this section.
B. The beneficiary shall notify the trustee in writing of the performance and the name of the person who performed the conditions. The proceedings shall be cancelled and the contract or contracts and trust deed shall be deemed reinstated and in force as if no breach or default had occurred upon performance of those of the following which may be applicable:
1. Payment of the entire amount then due.
2. Payment of costs and expenses incurred in enforcing the terms of such contract or trust deed. These costs and expenses may include the following:
(a) Reasonable costs for mailing and photocopying.
(b) Actual expenses incurred for recording, publication, posting of notice of sale, auctioneer's fee, postponement fees and title costs.
(c) Other reasonable costs and expenses.
3. Payment of the recording fee for a cancellation of notice of sale.
4. Payment of the trustee's fees, in an amount not to exceed six hundred dollars or one-half of one per cent of the entire unpaid principal sum secured, whichever is greater.
5. Payment of expenses and reasonable attorney fees that are not otherwise provided for in this section and that are incurred in protecting and preserving the beneficiary's interest in the trust property.
C. On request from the trustor or any person entitled to notice pursuant to section 33-809, subsection B, at any time that the trust deed is subject to reinstatement, the trustee shall provide a good faith estimate of the sums that appear necessary to reinstate the trust deed.
D. On written request from the trustor or any person entitled to notice pursuant to section 33-809, subsection B that is delivered to the trustee after the recording of the notice of trustee's sale, the trustee shall inform the person of the exact amount necessary to reinstate the trust deed, separately specifying costs, fees and any other amounts that are required to be paid as a condition to reinstatement of the trust deed. The trustee shall provide that information within five business days after receipt of the written request. If the written request is received by the trustee during the five business days before the day of the sale, the trustee shall provide the information to the person as soon as practicable. This subsection does not require the extension of the period for reinstatement of the trust deed prescribed in subsection A of this section.
E. If the trust deed is reinstated as provided in subsection B of this section, the trustee shall have a cancellation of the notice of sale recorded in the same county recorder's office where the notice of sale was recorded. A trustee who, for thirty days after reinstatement, fails to have proper notice of the cancellation of the notice of sale recorded is liable to the person who performed the conditions resulting in reinstatement for all actual damages resulting from such failure.
F. If the trust deed is paid in full or if the sale is not held or is not properly postponed pursuant to this chapter, the trustee shall record a cancellation of the notice of sale. The cancellation of the notice of sale shall be recorded in the office of the county recorder in which the notice of sale was recorded.
Getting Information About the Credit Bid:
Others may be interested in coming to the trustee's sale and purchasing your property. The amount that the lender is going to bid at sale is called the credit bid. A.R.S. Section 33-809(E) provides that beginning at 9:00 a.m. and continuing until 5:00 p.m. on the last business day preceding the day of sale and beginning at 9:00 a.m. and continuing until the time of sale on the day of the sale, the trustee shall provide to any person who requests of the actual bid or credit bid the beneficiary is entitled to make at the sale. If the trustee is unable to provide the credit bid during the prescribed time period, the trustee shall postpone the sale until the trustee is able to comply with this subsection. Again, the trustee has no liability for the accuracy or completeness of the information.
Filing Bankruptcy Before the Trustee's Sale is Completed
IMPORTANT NOTE: After October 17, 2005 this area of law is in flux - anyone who has filed more than one bankruptcy in the last 12 months may find that they cannot get the protection explained below. You must seek experienced bankruptcy attorney in order to determine your rights.
I have had several clients decide to file bankruptcy at this point because it can be a scary situation when they receive the Notice of Sale, or the investors start calling to "help them out of their situation". Unfortunately, by waiting until after a trustee's sale has actually been started you may have incurred $2,000 or more in fees and costs which must be paid as part of the arrears. All arrears can be included in the Chapter 13 bankruptcy plan and paid over a period of time stopping all additional service and late fees. The law is currently in flux as to exactly how long that period may be – probably 3-5 years. In order to qualify for a chapter 13 you must have more income than you have basic living expenses (excluding credit cards and other debts that will be discharged in your bankruptcy) and you must keep the new monthly mortgage payments current. Bankruptcy Monitoring fees, such as "drive by fees" cannot be charged to Debtor during an open chapter 13 (but see contract). (In re Stark vs Crestar Mortgage, (WD NC, 3/31/99) 242 B.R. 866)
If you are in a situation where you do not qualify for a chapter 13 then you might be able to file a chapter 7. The chapter 7 will delay the trustee's sale for a short period of time. The filing of a chapter 7 requires the creditor to file additional paperwork with the Bankruptcy Court called a Motion for Relief from the Automatic Stay. The Credit must obtain a signed court Order before proceeding with the trustee's sale. In that you have filed for bankruptcy the lender is not allowed to sue you and obtain money judgment. This result is that you can get rid of the debt on the house and all the other debts.
How Long Does All This Take?
Because every mortgage company is different and has different collection methods, it could take from 3 to 9 months for everything explained above to occur, your house to be sold at trustee's public auction and the new owner to require you to move out of the home. While it is not suggested that you live "rent free" in your home until the last minute before the Sheriff sets you out on the street, if you are severely behind in your mortgage payments and cannot afford to keep the house, use that time to save for a down payment on an rental and move as soon as possible.
http://www.dianedrain.com/Bankruptcy/BankruptcyArticles/Articles/TrusteeSaleForeclosuresinBankruptcy/trusteessaleandbankruptcy.htm
Filing Chapter 13 Bankruptcy
Filing chapter 13 bankruptcy is usually one of the last resorts for those facing debilitating financial circumstances. It is generally the last thing anyone wants who has tried to protect their financial investments, credit histories and future fiscal stability. However, there are times when choosing to use the protection provided through a chapter 13 bankruptcy filing may be the right move in order to stop the snowballing effect of clamoring creditors and foreclosures. For whatever reason a person finds himself in the paralyzing position of burdensome debt and crushing pressure, there are solutions that can be employed to regain security, restore credit and remove obstacles that hinder a prosperous future.
Many people find themselves dealing with unforeseen circumstances such as long-term illnesses, employment lay-offs or personal tragedies such as divorce. Sudden tragedies can alter the fiscal status of a family very quickly and send the family finances spinning out of control. In order to regain control and to alleviate the pressure caused by defaulted payments and persistent creditors, many consumers have had to consider using the legal measures provided through bankruptcy court. There are two types of legal fillings that can be made through the courts that address individual issues. Chapter 7 and chapter 13 bankruptcy has been set up by law to provide a system of repayment to creditors as well as financial protection for consumers who are trying to rebuild their crumbling finances.
Chapter 7 applies to the liquidation of assets in order to repay creditors while also imposing an automatic stop on collections until the court instructions are carried out. This allows creditors to receive at least some of what is owed them while also protecting the consumer from accruing more financial problems. Chapter 13 bankruptcy filing is a reorganization of finances on behalf of a consumer in order to repay debt as well as provide protection for some of their property such as a personal home. In this case, a consumer files a reorganization strategy to the court that agrees to legally appointed oversight of a personal budget and any liquidation of assets that are deemed reasonable.
The benefits of filing chapter 13 bankruptcy often outweigh the chapter 7 alternative in that some assets may be retained, a repayment plan is implemented and it is usually paid off in up to 5 years, if not sooner. Some debt is required to be paid off completely, some may be paid off by a percentage of the total debt and others may be forgiven. There is a mandatory budget required by the courts when a chapter 13 bankruptcy is filed that must be followed to the letter. A plan for repayment is set up that may include wage garnishments and management of how a person can spend his or her money during the repayment plan. An appointed representative of the court will be provided that oversees transactions and makes sure that creditors are repaid on a schedule according to the earnings of an individual.
For those who carefully follow the repayment process as outlined by the court as a result, debt will be resolved and many creditors will be willing to extend credit again. This type of court managed financial resolution is more appealing to creditors and lenders which will be useful to those who are committed to restoring their future options. Consumers who file chapter 13 can expect to have it show up on the credit history for at least 6 years. It is less damaging for credit purposes than for those who file for chapter 7 bankruptcy, in that these cases usually receive poor credit standing for 10 years following court proceedings. Although filing chapter 13 bankruptcy allows greater protection for assets and offers a payment plan for creditors, there are some debts that cannot be forgiven by law. Alimony, back taxes, child support, any hidden debts not reported at filing and most student loans are some of the areas that are required to be repaid no matter what the situation.
Most individuals who are considering which avenue to take, prefer chapter 13 because of the shorter penalty on their credit history, greater protection for assets and court imposed solutions for repayment to creditors. While this option may be a bit more appealing, choosing chapter 13 bankruptcy is not a magic bullet for clearing up troubled, personal finances. If possible, it is always best to manage personal finances with commitment to fiscal freedom and integrity. There are, of course, times when no matter what a person does, tragedy strikes. When it does, only God and good, personal choices based on biblical principles can bring anyone out of the stress and pain of imminent financial ruin. "The young lions do lack, and suffer hunger: but they that seek the Lord shall not want any good thing." (Psalm 34:10) While filing chapter 13 bankruptcy may not be the first choice for fiscal resolution, it may be a solution that can provide a plan and give hope for a stable, fiscal future.
http://www.christianet.com/bankruptcy/chapter13bankruptcy.htm
Many people find themselves dealing with unforeseen circumstances such as long-term illnesses, employment lay-offs or personal tragedies such as divorce. Sudden tragedies can alter the fiscal status of a family very quickly and send the family finances spinning out of control. In order to regain control and to alleviate the pressure caused by defaulted payments and persistent creditors, many consumers have had to consider using the legal measures provided through bankruptcy court. There are two types of legal fillings that can be made through the courts that address individual issues. Chapter 7 and chapter 13 bankruptcy has been set up by law to provide a system of repayment to creditors as well as financial protection for consumers who are trying to rebuild their crumbling finances.
Chapter 7 applies to the liquidation of assets in order to repay creditors while also imposing an automatic stop on collections until the court instructions are carried out. This allows creditors to receive at least some of what is owed them while also protecting the consumer from accruing more financial problems. Chapter 13 bankruptcy filing is a reorganization of finances on behalf of a consumer in order to repay debt as well as provide protection for some of their property such as a personal home. In this case, a consumer files a reorganization strategy to the court that agrees to legally appointed oversight of a personal budget and any liquidation of assets that are deemed reasonable.
The benefits of filing chapter 13 bankruptcy often outweigh the chapter 7 alternative in that some assets may be retained, a repayment plan is implemented and it is usually paid off in up to 5 years, if not sooner. Some debt is required to be paid off completely, some may be paid off by a percentage of the total debt and others may be forgiven. There is a mandatory budget required by the courts when a chapter 13 bankruptcy is filed that must be followed to the letter. A plan for repayment is set up that may include wage garnishments and management of how a person can spend his or her money during the repayment plan. An appointed representative of the court will be provided that oversees transactions and makes sure that creditors are repaid on a schedule according to the earnings of an individual.
For those who carefully follow the repayment process as outlined by the court as a result, debt will be resolved and many creditors will be willing to extend credit again. This type of court managed financial resolution is more appealing to creditors and lenders which will be useful to those who are committed to restoring their future options. Consumers who file chapter 13 can expect to have it show up on the credit history for at least 6 years. It is less damaging for credit purposes than for those who file for chapter 7 bankruptcy, in that these cases usually receive poor credit standing for 10 years following court proceedings. Although filing chapter 13 bankruptcy allows greater protection for assets and offers a payment plan for creditors, there are some debts that cannot be forgiven by law. Alimony, back taxes, child support, any hidden debts not reported at filing and most student loans are some of the areas that are required to be repaid no matter what the situation.
Most individuals who are considering which avenue to take, prefer chapter 13 because of the shorter penalty on their credit history, greater protection for assets and court imposed solutions for repayment to creditors. While this option may be a bit more appealing, choosing chapter 13 bankruptcy is not a magic bullet for clearing up troubled, personal finances. If possible, it is always best to manage personal finances with commitment to fiscal freedom and integrity. There are, of course, times when no matter what a person does, tragedy strikes. When it does, only God and good, personal choices based on biblical principles can bring anyone out of the stress and pain of imminent financial ruin. "The young lions do lack, and suffer hunger: but they that seek the Lord shall not want any good thing." (Psalm 34:10) While filing chapter 13 bankruptcy may not be the first choice for fiscal resolution, it may be a solution that can provide a plan and give hope for a stable, fiscal future.
http://www.christianet.com/bankruptcy/chapter13bankruptcy.htm
Bankruptcy Law
Bankruptcy law used to be more lenient. As a result, people began to abuse the system, filing when they really didn't need to file and making huge purchases on credit before filing. For these reasons and more, changes had to take effect. When The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took effect, they now make it much harder for people to be able to file and eliminate their debts. The new bankruptcy law has new requirements and restrictions, some of which are beneficial. It will be important to look over the bankruptcy law changes to determine if they will affect any attempts to file. Consider other options you have if you actually can no longer qualify for bankruptcy under the new rules.
Eliminating or pay off debt under the protection of the government is one program to look into. Under Chapter 7, debt is forgiven while under Chapter 13, it is expected that a person follow a debt payback plan. The old bankruptcy laws allowed filers to basically choose which chapter they preferred to file under. Also, Chapter 7 filers could value their property at the auction price under the old bankruptcy law. The new law puts the retail price on personal property, increasing the value and the chance of the property being repossessed. Under the old law, debtors were allowed to keep an amount of personal property regulated by the filers state of residence. The new law requires at least two years of residence in the state before using their exemption laws. When the old law was enacted, housing and food allowances were determined by the actual cost.
Under the law changes, there are fewer leniencies for housing and food allowances. The IRS sets these allowances around $200 for food per month and less than $800 for housing and utilities. Income has to be below the state's median income for your size family. A repayment plan will also need to be enforced under Chapter 13 if the court determines owing is $100 or more of disposable income. Child support becomes a high priority debt. Also, if you file now, credit-counseling courses within 180 days of filing are also required. The new bankruptcy law changes also limit home exemptions to $125,000 nationally if the home was purchased less than three year and four months before filing for bankruptcy.
These changes not only affect those filing, but everyone involved. The new bankruptcy law affects credit card companies. They now have to include on the bill how long it would take to pay off the current balance at the minimum payment rate. Lawyers are expected to raise their fees for these services because of the liability issues the new rules imposes. The lawyers will have to spend more time crossing their T's and dotting their I's to make sure not to break any laws and meet all requirements when filing client documents and processing files. Thus, this type for debt elimination is becoming more expensive for those filing. With the new bankruptcy law changes, came a flood of last minute filings under the old law. Thus, the sudden number of filings affected the courts. Overall, the new laws force those who would otherwise qualify for Chapter 7 to file under Chapter 13.
As you look into filing, you will want to seriously consider other options. Filing for bankruptcy can eliminate a large portion of your debts, but it is a black mark on your credit for ten years. After reading up on this course of action, consider talking with a free credit or financial counselor. Finding these companies on the Internet or even through various Christian ministries. They will be able to look at the debt situation and help to determine other methods of paying off the debt. Working on a budget and managing spending should be in the overall plan as well. Cutting up credit cards is a good start. Another option is taking out a consolidation loan for all debts. Be careful about this, though. Watch out for hidden charges, high interest and pay-off penalties. A counselor can help review all of these options in detail so take the time to talk to one before calling a lawyer for bankruptcy.
Finding out more information about bankruptcy law and bankruptcy law changes by searching the Internet or through an attorney who handles this sort of case. Be sure that to understand the whole process as well as the consequences. Responsibilities to debts and finances will still be a reality. Remember vows made when signing for loans and credit cards. "The wicked borroweth, and payeth not again: but the righteous sheweth mercy, and giveth." (Psalm 37:21) Understanding how God desires money to be used is a great step toward freedom from debt and a more positive financial future.
http://www.christianet.com/bankruptcy/bankruptcylaw.htm
Eliminating or pay off debt under the protection of the government is one program to look into. Under Chapter 7, debt is forgiven while under Chapter 13, it is expected that a person follow a debt payback plan. The old bankruptcy laws allowed filers to basically choose which chapter they preferred to file under. Also, Chapter 7 filers could value their property at the auction price under the old bankruptcy law. The new law puts the retail price on personal property, increasing the value and the chance of the property being repossessed. Under the old law, debtors were allowed to keep an amount of personal property regulated by the filers state of residence. The new law requires at least two years of residence in the state before using their exemption laws. When the old law was enacted, housing and food allowances were determined by the actual cost.
Under the law changes, there are fewer leniencies for housing and food allowances. The IRS sets these allowances around $200 for food per month and less than $800 for housing and utilities. Income has to be below the state's median income for your size family. A repayment plan will also need to be enforced under Chapter 13 if the court determines owing is $100 or more of disposable income. Child support becomes a high priority debt. Also, if you file now, credit-counseling courses within 180 days of filing are also required. The new bankruptcy law changes also limit home exemptions to $125,000 nationally if the home was purchased less than three year and four months before filing for bankruptcy.
These changes not only affect those filing, but everyone involved. The new bankruptcy law affects credit card companies. They now have to include on the bill how long it would take to pay off the current balance at the minimum payment rate. Lawyers are expected to raise their fees for these services because of the liability issues the new rules imposes. The lawyers will have to spend more time crossing their T's and dotting their I's to make sure not to break any laws and meet all requirements when filing client documents and processing files. Thus, this type for debt elimination is becoming more expensive for those filing. With the new bankruptcy law changes, came a flood of last minute filings under the old law. Thus, the sudden number of filings affected the courts. Overall, the new laws force those who would otherwise qualify for Chapter 7 to file under Chapter 13.
As you look into filing, you will want to seriously consider other options. Filing for bankruptcy can eliminate a large portion of your debts, but it is a black mark on your credit for ten years. After reading up on this course of action, consider talking with a free credit or financial counselor. Finding these companies on the Internet or even through various Christian ministries. They will be able to look at the debt situation and help to determine other methods of paying off the debt. Working on a budget and managing spending should be in the overall plan as well. Cutting up credit cards is a good start. Another option is taking out a consolidation loan for all debts. Be careful about this, though. Watch out for hidden charges, high interest and pay-off penalties. A counselor can help review all of these options in detail so take the time to talk to one before calling a lawyer for bankruptcy.
Finding out more information about bankruptcy law and bankruptcy law changes by searching the Internet or through an attorney who handles this sort of case. Be sure that to understand the whole process as well as the consequences. Responsibilities to debts and finances will still be a reality. Remember vows made when signing for loans and credit cards. "The wicked borroweth, and payeth not again: but the righteous sheweth mercy, and giveth." (Psalm 37:21) Understanding how God desires money to be used is a great step toward freedom from debt and a more positive financial future.
http://www.christianet.com/bankruptcy/bankruptcylaw.htm
Auto Loan After Chapter 13 Bankruptcy
Bankruptcy on car loans can be a tough break because shoppers never know how banks will respond to their attempts to get another vehicle. Consumers might go to car dealership after car dealership, only to hear the same answer over and over again. The consumer doesn't have the right credit, their bankrupt status prevents getting a car, or he or she doesn't qualify for a vehicle. This can be heartbreaking. Many people may have had to claim bankruptcy on car loans in the past, but they are trying to rebuild their lives and credit. Unfortunately, car dealers aren't lenient when it comes to bad financial histories. Usually, salesmen can't approve a purchase or have to charge outrageous interest for customers with an unfortunate spending history. These consumers and those thinking of going bankrupt should try talking with a creditor. By talking to the person or company to which money is owed, the current situation can be improved. The creditor might be able to give some insight on what going bankrupt really does - how the process affects credit and the like.
Most people need a car for work, at least. Reliable transportation is a serious necessity today. However, people with bankruptcy on car loans have a hard time meeting this important need. There is hope after filing Chapter 13, though. An auto loan after chapter 13 bankruptcy can allow a person who has filed to keep their vehicle. The auto loan taken out for the vehicle is still in effect as long as the owner makes arrangements to pay the monthly payments on time. If one can commit to making a budget conducive to paying the required bills, this can probably qualify the filer for an auto loan after chapter 13 bankruptcy. Someone who is struggling with a bankrupt status should see specialists who deal with auto loan after chapter 13 bankruptcy.
Knowing someone who specializes in getting a car after going bankrupt would be invaluable for someone struggling to buy a vehicle. The more information available to hear on the subject in general, the more filers can benefit and find ways to get the loans they need. It's important, though, to make sure that the information is accurate. "Should a wise man utter vain knowledge, and fill his belly with the east wind?" (Job 15:2). Vehicle shoppers should ask friends, family and even fellow church members if they can recommend some financial advisor or credit counselor to work with on the problem. If consumers don't have any referrals to specialists or professionals, the Internet is a great referral source, including websites and contact information for local and national help.
For those who are new to bankruptcy and don't really understand what it means in regards to auto loan after chapter 13 bankruptcy, a little investigation is necessary. The best way to get educated (besides talking with a financial professional) is to look on the Internet for bankruptcy on vehicle loans. This is a quick and easy way to get the required information needed on just about any financial topic. A search engine may turn up an overwhelming response so a little bit of extra time sifting through the weblinks may be necessary to find information that is actually helpful and relevant. Information should always come from a trusted and knowledgeable source. Someone who works in finances may be able to provide some pointers as to which websites are the best to get information regarding getting a car after filing.
http://www.christianet.com/bankruptcy/autoloanafterchapter13bankruptcy.htm
Most people need a car for work, at least. Reliable transportation is a serious necessity today. However, people with bankruptcy on car loans have a hard time meeting this important need. There is hope after filing Chapter 13, though. An auto loan after chapter 13 bankruptcy can allow a person who has filed to keep their vehicle. The auto loan taken out for the vehicle is still in effect as long as the owner makes arrangements to pay the monthly payments on time. If one can commit to making a budget conducive to paying the required bills, this can probably qualify the filer for an auto loan after chapter 13 bankruptcy. Someone who is struggling with a bankrupt status should see specialists who deal with auto loan after chapter 13 bankruptcy.
Knowing someone who specializes in getting a car after going bankrupt would be invaluable for someone struggling to buy a vehicle. The more information available to hear on the subject in general, the more filers can benefit and find ways to get the loans they need. It's important, though, to make sure that the information is accurate. "Should a wise man utter vain knowledge, and fill his belly with the east wind?" (Job 15:2). Vehicle shoppers should ask friends, family and even fellow church members if they can recommend some financial advisor or credit counselor to work with on the problem. If consumers don't have any referrals to specialists or professionals, the Internet is a great referral source, including websites and contact information for local and national help.
For those who are new to bankruptcy and don't really understand what it means in regards to auto loan after chapter 13 bankruptcy, a little investigation is necessary. The best way to get educated (besides talking with a financial professional) is to look on the Internet for bankruptcy on vehicle loans. This is a quick and easy way to get the required information needed on just about any financial topic. A search engine may turn up an overwhelming response so a little bit of extra time sifting through the weblinks may be necessary to find information that is actually helpful and relevant. Information should always come from a trusted and knowledgeable source. Someone who works in finances may be able to provide some pointers as to which websites are the best to get information regarding getting a car after filing.
http://www.christianet.com/bankruptcy/autoloanafterchapter13bankruptcy.htm
Alternatives To Bankruptcy
Finding alternatives to bankruptcy and avoiding financial problems altogether should first be the goal for a debtor. A bankruptcy stays on a credit report for up to 10 years. The negative impact lessens with each passing year, but in order to re-establish credit, lending institutions will charge an exceptionally high interest rate. Personal bankruptcies are reaching record levels, which is not surprising, because consumer debt levels are also reaching record highs. Alternatives to should be considered because the FICO score (Fair Issac) is lowered tremendously. How does this affect a debtor? For example: on a $150,000 mortgage, someone with a good FICO score could get an interest rate of about 6% (depending on interest rate levels at the time). Someone with a high FICO score will be lucky to get a 9% interest rate. That works out to an extra $370 a month, over 7 years that equals an extra $31,000 paid in interest charges alone.
The FICO score is used for everything, from home buying and car buying, to insurance quotes, and rental deposits. Keeping a high FICO score by avoiding bankruptcy and instead finding alternatives should be explored. Before opting for giving up, it is recommended that a debtor try to get some help sorting through their options. There is an entire industry built on providing help to consumers who are overwhelmed with their debt. Some of the debt-help businesses are not exactly legitimate. It is advised to only work with debt counselors who have high ratings through a myriad of certified organizations. When alternatives to bankruptcy have been the decided plan of action, meeting with a debt counselor is the first step.
Debtors will lay out their financial situation, and if the debt counselor thinks the debtor can get out of debt within 5 years they will establish a repayment plan. All debts will be gathered together and consolidated, with only one monthly single payment to worry about. There will probably be a monthly fee for the service of repayment planning, but it is a small price to pay. Quite often debt counselors will attempt to lower the balances or interest charges with the creditors, sometimes they are able to forgive the debt altogether. In addition to setting up a repayment plan, they will also discuss programs and classes that can be enrolled in to learn some tricks for better budget and credit card management.
If the debt load is so large that the credit counselor doesn't think the debtor can be debt free within 5 years, then they will probably not offer any alternatives to bankruptcy that include a payment plan. Each creditor will be contacted to attempt a final paid in full balance amount that is a small percentage of what is actually owed. This is the last step and many creditors will opt for the lower percentage than force the debtor to file in which they will get nothing. Another aspect to consider is the effect it will have on the spouse's credit. Ideally, not having both debtor credit scores lowered is the goal. However, a divorce decree will stop any debt collectors from coming after the spouse.
Alternatives to bankruptcy should always be considered first. The financial and emotional impact of it is devastating. Work with a credit counseling agency to devise a plan to pay the way out of a financial hole. There are two types of major unsecured debts. They are credit card debt and student loan debt. It is recommended that a person who wants to declare bankruptcy for student loan debt, instead find alternatives because student loans will not be dismissed with a file for bankruptcy. Unless the debtor gets a court order for a hardship case, which is usually only in the situations of permanent disability, the student loan debt stays.
Alternatives when dealing with student loan debt abound. The student loan industry bends over backward to help find solutions that are manageable. They offer deferments, forbearances, financial hardship, loan consolidation, and a variety of other options that will lessen the burden of high monthly payments. If a home equity loan is an option, it is suggested to consolidate all credit card debt. Home equity loans offer a lower interest rate, much the same way a student loan offers. There are not as many deferment options with a home equity loan, but at least it is secured, unlike credit card debt. Having two flexible repayment plans only, will surely help when trying to manage a financial crisis. It is up to each person to pay off their own debt. A vow to pay a creditor is a vow to pay God (who owns everything). "When thou vowest a vow unto God, defer not to pay it; for he hath no please in fools: pay that which thou has vowed."
http://www.christianet.com/bankruptcy/alternativestobankruptcy.htm
The FICO score is used for everything, from home buying and car buying, to insurance quotes, and rental deposits. Keeping a high FICO score by avoiding bankruptcy and instead finding alternatives should be explored. Before opting for giving up, it is recommended that a debtor try to get some help sorting through their options. There is an entire industry built on providing help to consumers who are overwhelmed with their debt. Some of the debt-help businesses are not exactly legitimate. It is advised to only work with debt counselors who have high ratings through a myriad of certified organizations. When alternatives to bankruptcy have been the decided plan of action, meeting with a debt counselor is the first step.
Debtors will lay out their financial situation, and if the debt counselor thinks the debtor can get out of debt within 5 years they will establish a repayment plan. All debts will be gathered together and consolidated, with only one monthly single payment to worry about. There will probably be a monthly fee for the service of repayment planning, but it is a small price to pay. Quite often debt counselors will attempt to lower the balances or interest charges with the creditors, sometimes they are able to forgive the debt altogether. In addition to setting up a repayment plan, they will also discuss programs and classes that can be enrolled in to learn some tricks for better budget and credit card management.
If the debt load is so large that the credit counselor doesn't think the debtor can be debt free within 5 years, then they will probably not offer any alternatives to bankruptcy that include a payment plan. Each creditor will be contacted to attempt a final paid in full balance amount that is a small percentage of what is actually owed. This is the last step and many creditors will opt for the lower percentage than force the debtor to file in which they will get nothing. Another aspect to consider is the effect it will have on the spouse's credit. Ideally, not having both debtor credit scores lowered is the goal. However, a divorce decree will stop any debt collectors from coming after the spouse.
Alternatives to bankruptcy should always be considered first. The financial and emotional impact of it is devastating. Work with a credit counseling agency to devise a plan to pay the way out of a financial hole. There are two types of major unsecured debts. They are credit card debt and student loan debt. It is recommended that a person who wants to declare bankruptcy for student loan debt, instead find alternatives because student loans will not be dismissed with a file for bankruptcy. Unless the debtor gets a court order for a hardship case, which is usually only in the situations of permanent disability, the student loan debt stays.
Alternatives when dealing with student loan debt abound. The student loan industry bends over backward to help find solutions that are manageable. They offer deferments, forbearances, financial hardship, loan consolidation, and a variety of other options that will lessen the burden of high monthly payments. If a home equity loan is an option, it is suggested to consolidate all credit card debt. Home equity loans offer a lower interest rate, much the same way a student loan offers. There are not as many deferment options with a home equity loan, but at least it is secured, unlike credit card debt. Having two flexible repayment plans only, will surely help when trying to manage a financial crisis. It is up to each person to pay off their own debt. A vow to pay a creditor is a vow to pay God (who owns everything). "When thou vowest a vow unto God, defer not to pay it; for he hath no please in fools: pay that which thou has vowed."
http://www.christianet.com/bankruptcy/alternativestobankruptcy.htm
Bankruptcy Advice
Bankruptcy advice for those who are thinking that it is time to file is offered through many sources. Before looking, though, debtors need to see some bankruptcy FAQ. These will help with understanding what the process involves before making a possible mistake. Filing can be a death nail in a coffin on one's finances if the process isn't totally necessary. When filing, one of the bankruptcy FAQ that must be answered is, Do I really need to file? Filing can be done just because a person is simply scared about paying off their finances or losing a home. Erasing past debt must be treated as a final option, not the first.
First and foremost, consumers need to make sure that they are asking the question "Is this honoring the Lord?" Many times the Lord desires to provide for us and we are not giving him the option. We must look to the Lord for guidance into what he wants for us to do. It is possible that we can get so scared about our finances, that we forget who is in complete control of our lives. Often we will forget who gave us the finances in the first place. The Lord is good and will give us what we need in everything that we do for him.
He can be there for us all the time and help us see him in new ways through anything that we are experiencing. Let the Lord lead you through this process before you make the decision to go it alone. "If any of you lack wisdom, let him ask of God, that giveth to all men liberally, and upbraideth not; and it shall be given him." (James 1:5) The Lord desires to give us blessings and wisdom in all that we do. We must be willing to ask for it in all situations.
When a debtor considers going bankrupt, a thorough examination of their finances must be done. If losing a home is possible, bankruptcy advice is the next step. When making the final decision to file, another bankruptcy FAQ is how you can go about doing it. This is where many people have gotten themselves in trouble. Many will go to an attorney or preparer who specializes in debt forgiveness. These places are commonly referred to as bankruptcy mills.
By going to a mill, consumers are biting off more than they can chew. People have gotten into a lot of trouble with these establishments. Many times the high volume attorneys may file the paperwork but never show up at court or they will conveniently forget to answer financial questions that are necessary. The petition preparers offer services that don't always deliver. Before going to one of these establishments, potential filers need to make sure it is absolutely necessary and that the attorney or preparer really has the filer's interests at heart.
Another question is whether going bankrupt works for student loans. Erasing debt will almost never take care of student loans so a company advertising such services is a red flag. In addition, consumers should never pay a ton of fees to a company promising to help with debt forgiveness if that company is not going to deliver. Bankruptcy advice can be found all over the Internet so that filers can know what to expect. However, another option is for the filer to speak with their bank. The bank will give honest information about filing so that potential filers won't have to try to get information from am unfamiliar source that cannot be trusted.
When looking for bankruptcy advice, the best place to go will be through companies that will give self-help knowledge. If one files, the best way to do so is by doing so without assistance. Filing for bankruptcy can be an easy process. Another bankruptcy FAQ is whether one should go to a professional for help. This is not always a necessary thing. Many times the filer is completely equipped to do the self help filing process on their own. In order to get the most out of the situation, consumers may need to read some books or may want to work with a company that can help. This will make the process and decision-making easier.
http://www.christianet.com/bankruptcy/bankruptcyadvice.htm
First and foremost, consumers need to make sure that they are asking the question "Is this honoring the Lord?" Many times the Lord desires to provide for us and we are not giving him the option. We must look to the Lord for guidance into what he wants for us to do. It is possible that we can get so scared about our finances, that we forget who is in complete control of our lives. Often we will forget who gave us the finances in the first place. The Lord is good and will give us what we need in everything that we do for him.
He can be there for us all the time and help us see him in new ways through anything that we are experiencing. Let the Lord lead you through this process before you make the decision to go it alone. "If any of you lack wisdom, let him ask of God, that giveth to all men liberally, and upbraideth not; and it shall be given him." (James 1:5) The Lord desires to give us blessings and wisdom in all that we do. We must be willing to ask for it in all situations.
When a debtor considers going bankrupt, a thorough examination of their finances must be done. If losing a home is possible, bankruptcy advice is the next step. When making the final decision to file, another bankruptcy FAQ is how you can go about doing it. This is where many people have gotten themselves in trouble. Many will go to an attorney or preparer who specializes in debt forgiveness. These places are commonly referred to as bankruptcy mills.
By going to a mill, consumers are biting off more than they can chew. People have gotten into a lot of trouble with these establishments. Many times the high volume attorneys may file the paperwork but never show up at court or they will conveniently forget to answer financial questions that are necessary. The petition preparers offer services that don't always deliver. Before going to one of these establishments, potential filers need to make sure it is absolutely necessary and that the attorney or preparer really has the filer's interests at heart.
Another question is whether going bankrupt works for student loans. Erasing debt will almost never take care of student loans so a company advertising such services is a red flag. In addition, consumers should never pay a ton of fees to a company promising to help with debt forgiveness if that company is not going to deliver. Bankruptcy advice can be found all over the Internet so that filers can know what to expect. However, another option is for the filer to speak with their bank. The bank will give honest information about filing so that potential filers won't have to try to get information from am unfamiliar source that cannot be trusted.
When looking for bankruptcy advice, the best place to go will be through companies that will give self-help knowledge. If one files, the best way to do so is by doing so without assistance. Filing for bankruptcy can be an easy process. Another bankruptcy FAQ is whether one should go to a professional for help. This is not always a necessary thing. Many times the filer is completely equipped to do the self help filing process on their own. In order to get the most out of the situation, consumers may need to read some books or may want to work with a company that can help. This will make the process and decision-making easier.
http://www.christianet.com/bankruptcy/bankruptcyadvice.htm
Bankruptcy Advantages
The advantages of bankruptcy are why many people seek this as an option. Many times in the eyes of those filing, the good things outweigh the little things that are bad. But before deciding that there are so many good reasons to file, take some time and figure out what the disadvantages are as well. Remember how crucially important finding out all of this information is before making any rash decisions.
The first of the disadvantages of bankruptcy is your credit rating. Since filing means there are no longer funds available to pay off the debts, this will take a huge hit on the records of financial status. After filing, applying for loans will be much harder because lenders will not be jumping at the chance to loan to an unsafe client. However, one of the advantages of bankruptcy is there are no more worries about a lot of debt.
Many people have gotten in trouble with filing because of whom they have used to file. There are advantages of bankruptcy that comes with filing if you are doing it personally. But make sure that if having someone else file, they are not leaving all kinds of loose ends. One good thing about filing personally is it will help a person see the importance of knowledge of what they are doing. However, it is bad to file with another company if that they may not tie up all the loose ends. Many companies will end up sending the debts to collections because everything is not fully explained. Losing a home would be worse than filing for bankruptcy. The disadvantages of bankruptcy come when filing out of haste or worry. Let the Lord still be in control of all decisions. Many times people will experience the disadvantages of bankruptcy because of the amount of worry that they have.
God is good and will help anyone be able to trust Him. Let him determine if the advantages of bankruptcy will make the effort worth it. Filing can leave lenders in a bad situation with filing. They are not getting paid and being left high and dry. Is it worth it to risk moral standards to see what will happen in this in this situation? "For this cause we also, since the day we heard it, do not cease to pray for you, and to desire that ye might be filled with the knowledge of his will in all wisdom and spiritual understanding."
http://www.christianet.com/bankruptcy/advantagesofbankruptcy.htm
The first of the disadvantages of bankruptcy is your credit rating. Since filing means there are no longer funds available to pay off the debts, this will take a huge hit on the records of financial status. After filing, applying for loans will be much harder because lenders will not be jumping at the chance to loan to an unsafe client. However, one of the advantages of bankruptcy is there are no more worries about a lot of debt.
Many people have gotten in trouble with filing because of whom they have used to file. There are advantages of bankruptcy that comes with filing if you are doing it personally. But make sure that if having someone else file, they are not leaving all kinds of loose ends. One good thing about filing personally is it will help a person see the importance of knowledge of what they are doing. However, it is bad to file with another company if that they may not tie up all the loose ends. Many companies will end up sending the debts to collections because everything is not fully explained. Losing a home would be worse than filing for bankruptcy. The disadvantages of bankruptcy come when filing out of haste or worry. Let the Lord still be in control of all decisions. Many times people will experience the disadvantages of bankruptcy because of the amount of worry that they have.
God is good and will help anyone be able to trust Him. Let him determine if the advantages of bankruptcy will make the effort worth it. Filing can leave lenders in a bad situation with filing. They are not getting paid and being left high and dry. Is it worth it to risk moral standards to see what will happen in this in this situation? "For this cause we also, since the day we heard it, do not cease to pray for you, and to desire that ye might be filled with the knowledge of his will in all wisdom and spiritual understanding."
http://www.christianet.com/bankruptcy/advantagesofbankruptcy.htm
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