Filing for bankruptcy will undeniably have a great impact on your credit but sometimes it becomes the only option. It is important to evaluate the budgeting and financial mistakes that helped lead you to this direction. While we realize you didn’t get there on purpose you should self examine your spending habits and start working on ways to rebuild your credit. Yes you heard us right; you can still work on rebuilding your credit even AFTER filing a bankruptcy. But, it will take time and perseverance on your part.
Below are some tips to help you reestablish your credit after filing for bankruptcy.
1. Learn to live within your financial means. Spend your money wisely and do not buy luxury items that are not a necessity for living! This is an important lesson to learn and it will be hard to talk yourself out of some of those luxury purchases but you will thank yourself later.
2. Apply for a secured credit card and be sure to repay on time! This will reflect positively on your credit report and help you to start a new and on time paying credit history. Try not to jump right back in and get a card with a high deposit amount, start out small and progress forward.
3. Open a new checking and/or savings account. Lenders will take this into consideration when determining if you are responsible enough to lend money too.
4. This one can be trick, but see if you have a friend or relative that will cosign on a credit card or small loan with you and then be sure to make all the payments on time. This will help to reestablish good credit and an on time payment history.
5. When applying for new credit, try to start with a gas card or store credit card – these are items you would normally pay for in cash but now you can pay the bill monthly to reestablish credit. This may be a wise choice as to not give yourself extra credit on items you may not need right now!
6. Payday loans should always be a last resort and avoided at all costs if at all possible! The interest rates are extremely high and they can easily become a bad credit trap after all your hard work.
7. Lastly, pay all your credit card and utility bills on time!
These few small tips will help you to reestablish your credit history after surviving your bankruptcy. Don’t give up hope, it is possible but it will take timeFeature Articles, effort and a lot of hard work and determination.
ABOUT THE AUTHOR
Sam Argon is a retired banker who loves to contribute to financial message boards in his spare time. In addition, Sam has written information about www.filingforbankruptcyonline.com - a website offering information and resources for people who are thinking about declaring bankruptcy.
Thursday, May 10, 2007
Credit Repair: The Power of Post Bankruptcy Cleanup
Have you had a bankruptcy discharged? Chances are that you still have derogatory information lingering on your credit report. This is not necessary. Credit repair expert Jim Kemish discusses the benefits of a post-bankruptcy cleanup.
Your Post Bankruptcy Credit Report
Have you had a bankruptcy discharged? If you are like the vast majority of our post-bankruptcy customers you still have damaging derogatory information lingering on your credit report. This is not necessary. Once your bankruptcy is behind you it is time to take action. The law and the credit bureaus (believe it or not) are on your side. Take advantage of the opportunity. An intelligent effort will pay significant dividends.
The Post Bankruptcy Cleanup
Most people don't realize that the derogatory information associated with each of the discharged items can be removed by the credit bureaus upon request. This includes late payments that occurred on the discharged accounts, charge off and collection status notices, and past due balances. This information has an enormous impact on your credit scores. It is your right to have it removed. On the other hand, a public record of your discharged bankruptcy will appear on your report for many years, but has relatively little impact on your credit.
The Life Span of a Bankruptcy
Once you have had a bankruptcy discharged a line item will appear in the Public Records section of your credit report. This single line item will include your filing and discharge dates, and is likely to linger for the full duration allowed by law. This reporting period will vary based on the type of bankruptcy that you elected. The Fair Credit Reporting Act, also known as the FACT Act is the specific law that controls credit reporting (see section 605). The law states that credit reporting agencies must cease reporting of Chapter 7 bankruptcies ten years after the date the bankruptcy case is filed. Chapter 13 bankruptcies are treated differently and must be removed from your credit after 7 years.
The Two Year Effect
This single line item should not concern you! The presence of a bankruptcy on your credit report means little or nothing after two years have elapsed. This might surprise you. Many of the people that we speak to are under the false impression that after a bankruptcy you are destined to have bad credit for many years to come. This should not be the case. If you make the effort to clean up and rebuild your credit after your bankruptcy you should suffer little or no ongoing impact.
Planning for a Mortgage
In the credit repair business we are often contacted by people that would like to get their credit in shape for a potential mortgage application. This is very smart. You do not need any unnecessary derogatory items on your report when you are applying for a mortgage. As a matter of potential interest, Fannie-Mae offers its lowest interest rate mortgage programs to borrowers two years after a bankruptcy discharge (subject to other qualification of course). The real issue that plagues consumers is not the bankruptcy, but the unnecessary lingering derogatory items on the discharged accounts.
Credit Bureaus Can Be Stubborn
In spite of the fact that the credit bureaus are required to comply with a request to remove prior derogatory information they are typically slow to cooperate. A bankruptcy attorney will often submit a request to the bureaus to remove derogatory information. The majority of these requests are ignored or only partially completed. And so, in a terribly large number of cases old information will linger for up to seven years depressing the consumers credit score and making it impossible for them to get credit.
What to Do
Anyone who has attempted credit repair on their own is aware that the experience of dealing with the credit bureaus can be frustrating. An effective post bankruptcy cleanup can be done if you are just a little bit patient. Would you like some advice? I suggest that you keep your communications as terse as possible. Many people succumb to the temptation to tell their story to the credit bureaus. Do not ever, everFree Articles, ever include an explanation of your credit issues.
Minimize Your Communication
The people who work for the credit bureaus and process these requests are allowed to disregard your request if they feel that it is frivolous. I know that there would be nothing frivolous about your personal story. But every single extra bit of information that the clerk has to get through before they get to the essential documentation increases the possibility that you will get thrown in the “frivolous” category. Keep your communication to an absolute minimum. They will appreciate it and you will be rewarded with success.
ABOUT THE AUTHOR
Jim Kemish is the president and founder of Power Mortgage, a Florida mortgage company based in Delray Beach, Florida. Power Mortgage Corp was established in 1989 and serves the states of Florida, Georgia, Massachusetts, and Virginia. Jim is also the President of Sky Blue Credit, a national credit repair business. For great credit and mortgage tips visit the Florida Mortgage Blog. You'll be glad you did!
Your Post Bankruptcy Credit Report
Have you had a bankruptcy discharged? If you are like the vast majority of our post-bankruptcy customers you still have damaging derogatory information lingering on your credit report. This is not necessary. Once your bankruptcy is behind you it is time to take action. The law and the credit bureaus (believe it or not) are on your side. Take advantage of the opportunity. An intelligent effort will pay significant dividends.
The Post Bankruptcy Cleanup
Most people don't realize that the derogatory information associated with each of the discharged items can be removed by the credit bureaus upon request. This includes late payments that occurred on the discharged accounts, charge off and collection status notices, and past due balances. This information has an enormous impact on your credit scores. It is your right to have it removed. On the other hand, a public record of your discharged bankruptcy will appear on your report for many years, but has relatively little impact on your credit.
The Life Span of a Bankruptcy
Once you have had a bankruptcy discharged a line item will appear in the Public Records section of your credit report. This single line item will include your filing and discharge dates, and is likely to linger for the full duration allowed by law. This reporting period will vary based on the type of bankruptcy that you elected. The Fair Credit Reporting Act, also known as the FACT Act is the specific law that controls credit reporting (see section 605). The law states that credit reporting agencies must cease reporting of Chapter 7 bankruptcies ten years after the date the bankruptcy case is filed. Chapter 13 bankruptcies are treated differently and must be removed from your credit after 7 years.
The Two Year Effect
This single line item should not concern you! The presence of a bankruptcy on your credit report means little or nothing after two years have elapsed. This might surprise you. Many of the people that we speak to are under the false impression that after a bankruptcy you are destined to have bad credit for many years to come. This should not be the case. If you make the effort to clean up and rebuild your credit after your bankruptcy you should suffer little or no ongoing impact.
Planning for a Mortgage
In the credit repair business we are often contacted by people that would like to get their credit in shape for a potential mortgage application. This is very smart. You do not need any unnecessary derogatory items on your report when you are applying for a mortgage. As a matter of potential interest, Fannie-Mae offers its lowest interest rate mortgage programs to borrowers two years after a bankruptcy discharge (subject to other qualification of course). The real issue that plagues consumers is not the bankruptcy, but the unnecessary lingering derogatory items on the discharged accounts.
Credit Bureaus Can Be Stubborn
In spite of the fact that the credit bureaus are required to comply with a request to remove prior derogatory information they are typically slow to cooperate. A bankruptcy attorney will often submit a request to the bureaus to remove derogatory information. The majority of these requests are ignored or only partially completed. And so, in a terribly large number of cases old information will linger for up to seven years depressing the consumers credit score and making it impossible for them to get credit.
What to Do
Anyone who has attempted credit repair on their own is aware that the experience of dealing with the credit bureaus can be frustrating. An effective post bankruptcy cleanup can be done if you are just a little bit patient. Would you like some advice? I suggest that you keep your communications as terse as possible. Many people succumb to the temptation to tell their story to the credit bureaus. Do not ever, everFree Articles, ever include an explanation of your credit issues.
Minimize Your Communication
The people who work for the credit bureaus and process these requests are allowed to disregard your request if they feel that it is frivolous. I know that there would be nothing frivolous about your personal story. But every single extra bit of information that the clerk has to get through before they get to the essential documentation increases the possibility that you will get thrown in the “frivolous” category. Keep your communication to an absolute minimum. They will appreciate it and you will be rewarded with success.
ABOUT THE AUTHOR
Jim Kemish is the president and founder of Power Mortgage, a Florida mortgage company based in Delray Beach, Florida. Power Mortgage Corp was established in 1989 and serves the states of Florida, Georgia, Massachusetts, and Virginia. Jim is also the President of Sky Blue Credit, a national credit repair business. For great credit and mortgage tips visit the Florida Mortgage Blog. You'll be glad you did!
Wednesday, May 9, 2007
Mandatory Credit Counseling for Those Considering Bankruptcy
Most Americans are aware of the sweeping changes in U.S. bankruptcy law that were made by Congress recently. These changes, strongly supported by the credit card industry, were designed to make it more difficult for Americans to file for bankruptcy under Chapter 7 of the Federal bankruptcy code. Chapter 7 allows consumers to essentially have all of their debts wiped away by the court. While many people will still be able to file under Chapter 7, many more will have to file under Chapter 13, which requires the establishment of a repayment plan. A less publicized provision of the bankruptcy bill is the one that requires debtors who are considering filing for bankruptcy to first undergo credit counseling. What does this mean for consumers?
Actually, the details are not yet known. The law, which takes effect on October 17, 2005, does require that debtors considering bankruptcy receive credit counseling at least six months before filing for bankruptcy. The law also requires that they receive additional counseling before the case is finalized and that any agency providing counseling services must charge an undefined “reasonable fee.” Other than that, there are no details yet. The portion of the law that deals specifically with credit counseling hasn’t yet been written, and the full details are not expected to be released until mid-summer. Even those who work in the credit counseling industry do not know what will be expected of them once the law takes effect.
For consumers with problem debt, this confusion is only making a bad situation worse. In the Fall, more steps will be required of those filing for bankruptcy, but no one knows what those steps are, what they will cost, or how involved they will be. Anyone who has a current financial situation that they feel may lead to bankruptcy would be well advised to consider filing now. Bankruptcy should be considered a last resort for those with problem debt, as a bankruptcy filing will stay on a credit report for at least ten years. If bankruptcy appears inevitable, however, filing now will probably be easier, cheaperFind Article, and faster than filing after the new law takes effect in October.
ABOUT THE AUTHOR
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and http://www.StructuredSettlementHelp.com, a site devoted to information regarding structured settlements.
Actually, the details are not yet known. The law, which takes effect on October 17, 2005, does require that debtors considering bankruptcy receive credit counseling at least six months before filing for bankruptcy. The law also requires that they receive additional counseling before the case is finalized and that any agency providing counseling services must charge an undefined “reasonable fee.” Other than that, there are no details yet. The portion of the law that deals specifically with credit counseling hasn’t yet been written, and the full details are not expected to be released until mid-summer. Even those who work in the credit counseling industry do not know what will be expected of them once the law takes effect.
For consumers with problem debt, this confusion is only making a bad situation worse. In the Fall, more steps will be required of those filing for bankruptcy, but no one knows what those steps are, what they will cost, or how involved they will be. Anyone who has a current financial situation that they feel may lead to bankruptcy would be well advised to consider filing now. Bankruptcy should be considered a last resort for those with problem debt, as a bankruptcy filing will stay on a credit report for at least ten years. If bankruptcy appears inevitable, however, filing now will probably be easier, cheaperFind Article, and faster than filing after the new law takes effect in October.
ABOUT THE AUTHOR
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and http://www.StructuredSettlementHelp.com, a site devoted to information regarding structured settlements.
Credit Card Bankruptcy
Writing this article for you was a pleasure, I desire it be likewise for your to read it.
As people use credit cards to make payments for items that they are buying, sometimes they overuse their credit card. This will not become a problem if the person has a way of paying off their debt. There are instances where credit card bankruptcy will have to be declared.
This bankruptcy claim can be disputed by the name card issuing agency if they feel that you have obtained the credit card by fraudulent means. If the name card company feels that you are Using the card in an outlaw(a) fashion they can refuse to discharge your debt.
When the credit card company challenges this debt it becomes a non-discharge ability action. In the non-discharge ability activity the credit card issuer will declare that you have obtained your credit card by submitting a fraudulent credit card application. They can also hold that you have received a credit card without any intent to pay any off the debts that you are incurring.
There are many reasons why credit card bankruptcy claims will be challenged. These reasons will include an increased use of your credit card before you register for bankruptcyFree Reprint Articles, or if you have just been issued a new credit card after the credit card company approved your application for the card.
Or perhaps large advancements of cash were made just before you filed for credit card bankruptcy. As these reasons can indicate to your creditors that you are not intending to pay off your debts they will be able to prove to the courts that you are planning on defrauding them.
So if you are intending to file for credit card bankruptcy it is best if you don’t use your credit cards for at least Six months before you file for credit card bankruptcy. The less use that can be found with your credit cards will validate your claims that you are in fiscal difficulties.
Before you do file for credit card bankruptcy it is best if you talk the situation over with your lawyer. You can inform your attorney about your integral financial problems and see the assorted courses that you have open.
You must realise that once you have filed for credit card bankruptcy your public record will state that you have undergone bankruptcy for bad credit. This substance that you will need to uprise to various businesses that you are conformable to pay the higher credit rates that you can be charged.
While this course of activity may seem difficult to reflect sometimes it is the only way that you can find a Breathing space to reorganize your financial affairs. Once you have proven that you are in financial difficulties your credit card bankruptcy filing will let you negotiate with your lawyer and creditors the best way to pay their loans back.
I’am glad you have found this article I hope you found the data useful.
ABOUT THE AUTHOR
Michael Malega presents several credit card bankruptcy articles for your information. You can visit Michael's web site at: http://www.bankruptcy-chapter-13-facts.com/Credit-Card-Bankruptcy.php
As people use credit cards to make payments for items that they are buying, sometimes they overuse their credit card. This will not become a problem if the person has a way of paying off their debt. There are instances where credit card bankruptcy will have to be declared.
This bankruptcy claim can be disputed by the name card issuing agency if they feel that you have obtained the credit card by fraudulent means. If the name card company feels that you are Using the card in an outlaw(a) fashion they can refuse to discharge your debt.
When the credit card company challenges this debt it becomes a non-discharge ability action. In the non-discharge ability activity the credit card issuer will declare that you have obtained your credit card by submitting a fraudulent credit card application. They can also hold that you have received a credit card without any intent to pay any off the debts that you are incurring.
There are many reasons why credit card bankruptcy claims will be challenged. These reasons will include an increased use of your credit card before you register for bankruptcyFree Reprint Articles, or if you have just been issued a new credit card after the credit card company approved your application for the card.
Or perhaps large advancements of cash were made just before you filed for credit card bankruptcy. As these reasons can indicate to your creditors that you are not intending to pay off your debts they will be able to prove to the courts that you are planning on defrauding them.
So if you are intending to file for credit card bankruptcy it is best if you don’t use your credit cards for at least Six months before you file for credit card bankruptcy. The less use that can be found with your credit cards will validate your claims that you are in fiscal difficulties.
Before you do file for credit card bankruptcy it is best if you talk the situation over with your lawyer. You can inform your attorney about your integral financial problems and see the assorted courses that you have open.
You must realise that once you have filed for credit card bankruptcy your public record will state that you have undergone bankruptcy for bad credit. This substance that you will need to uprise to various businesses that you are conformable to pay the higher credit rates that you can be charged.
While this course of activity may seem difficult to reflect sometimes it is the only way that you can find a Breathing space to reorganize your financial affairs. Once you have proven that you are in financial difficulties your credit card bankruptcy filing will let you negotiate with your lawyer and creditors the best way to pay their loans back.
I’am glad you have found this article I hope you found the data useful.
ABOUT THE AUTHOR
Michael Malega presents several credit card bankruptcy articles for your information. You can visit Michael's web site at: http://www.bankruptcy-chapter-13-facts.com/Credit-Card-Bankruptcy.php
You Don't Have To Declare Bankruptcy To Deal With Your Debts
Considering filing bankruptcy? If your finances are in ruins and you're considering filing bankruptcy, there's a few things you should know.
Bankruptcy is not your only option. Millions of people credit is devastated by bankruptcy every year. Though filing a Chapter 7 Bankruptcy will clear you of any obligation to creditors, it is devastating to your credit and will ride your credit report for ten years.
There are several alternatives to bankruptcy depending on your current situation. You may consider:
Debt Consolidation- Debt Consolidation is an easy and timely alternative. A Debt Consolidation Counselor will evaluate your current situation and past debt and develop a budget for you.
They will negotiate payment options with your creditors and simply provide you with the alternative to make one easy monthly payment to them and they will disburse the payment among your creditors. The benefits include:
* Usually, a lower monthly payment
* Lower percentage rates
* Debt payoff in a timelier manner
* Less contact from creditors or no contact from creditors
* You will be able to keep your credit at satisfactory standards versus the harsh impact a bankruptcy would have on it
* You're able to obtain new credit
* And with the money you save with the advantage of a lower monthly payment plan you can contribute to a Savings Account or Retirement Account
The above benefits are just a few of the benefits of Debt Consolidation versus Bankruptcy.
Another alternative is a Personal Loan or Debt
Consolidation Loan. This is one large loan to pay off smaller loans or debts. With one large loan, you will normally have a lower percentage rate and a longer pay off period. The benefits include:
* The ability to pay off debts in full
* No more harassing phone calls from creditors
* Your credit will be saved from derogatory accounts and collections
* Low percentage rate
However, in order to obtain a Personal Loan or Debt Consolidation Loan you will need satisfactory credit. Though there are alternative to filing bankruptcy; in some cases, bankruptcy is the only option.
Before deciding whether to file bankruptcy or consolidateFeature Articles, consult a financial advisor. He or she should be able to give you advice after evaluating your situation and current credit standings.
Discover the debt consolidation alternatives to Bankruptcy. Find out useful advice and information. Click http://www.debtconsolidation-easy.com
ABOUT THE AUTHOR
Feel free to reprint this article in its entirety in your ezine or on your site so long as you leave all links in place, do not modify the content and include my resource box as listed above.
Bankruptcy is not your only option. Millions of people credit is devastated by bankruptcy every year. Though filing a Chapter 7 Bankruptcy will clear you of any obligation to creditors, it is devastating to your credit and will ride your credit report for ten years.
There are several alternatives to bankruptcy depending on your current situation. You may consider:
Debt Consolidation- Debt Consolidation is an easy and timely alternative. A Debt Consolidation Counselor will evaluate your current situation and past debt and develop a budget for you.
They will negotiate payment options with your creditors and simply provide you with the alternative to make one easy monthly payment to them and they will disburse the payment among your creditors. The benefits include:
* Usually, a lower monthly payment
* Lower percentage rates
* Debt payoff in a timelier manner
* Less contact from creditors or no contact from creditors
* You will be able to keep your credit at satisfactory standards versus the harsh impact a bankruptcy would have on it
* You're able to obtain new credit
* And with the money you save with the advantage of a lower monthly payment plan you can contribute to a Savings Account or Retirement Account
The above benefits are just a few of the benefits of Debt Consolidation versus Bankruptcy.
Another alternative is a Personal Loan or Debt
Consolidation Loan. This is one large loan to pay off smaller loans or debts. With one large loan, you will normally have a lower percentage rate and a longer pay off period. The benefits include:
* The ability to pay off debts in full
* No more harassing phone calls from creditors
* Your credit will be saved from derogatory accounts and collections
* Low percentage rate
However, in order to obtain a Personal Loan or Debt Consolidation Loan you will need satisfactory credit. Though there are alternative to filing bankruptcy; in some cases, bankruptcy is the only option.
Before deciding whether to file bankruptcy or consolidateFeature Articles, consult a financial advisor. He or she should be able to give you advice after evaluating your situation and current credit standings.
Discover the debt consolidation alternatives to Bankruptcy. Find out useful advice and information. Click http://www.debtconsolidation-easy.com
ABOUT THE AUTHOR
Feel free to reprint this article in its entirety in your ezine or on your site so long as you leave all links in place, do not modify the content and include my resource box as listed above.
Tuesday, May 8, 2007
9 Simple Steps On How To File Bankruptcy
A bankruptcy is the last option any businessman wants to take. They can cause a big dent on their credit rating and deeply ruin their reputation. But sometimes filing for bankruptcy is the only solution to get a person out of dire straits.
A bankruptcy is the last option any businessman wants to take. They can cause a big dent on their credit rating and deeply ruin their reputation. But sometimes filing for bankruptcy is the only solution to get a person out of dire straits. Here are the nine steps to be followed in filing a bankruptcy:
1. See to it that there is no other solution that you can do to avoid filing for bankruptcy. Bankruptcy allows for a fresh start. Under the Bankruptcy Abuse Prevention and Consumer Protection Act ("BAPCPA"), which significantly amended the U.
S. Bankruptcy Code effective October 17, 2005, prior to filing a bankruptcy case, an individual must obtain some consumer credit counselling from an entity approved by the U.
S. Trustee within 180 days of the date of the filing of a bankruptcy case. Such counselling is intended to provide an individual with alternatives in filing a bankruptcy case.
2. Consider the two common bankruptcy types. The most popular is the chapter 7 (which is a straight or liquidation bankruptcy), and there is also the chapter 13 (which is a repayment plan for individuals). BAPCPA has made chapter 7 to be more difficult to file, because of the means test. Many individuals will be forced to file a chapter 13 case because of this test.
3. Research your options as it relates to filing. Some people choose to file without the aid of a lawyer. But it's highly recommended to hire a lawyer. Your research should help you decide on a lawyer. In most cases, people who choose large firms to represent them will work with a paralegal and not the lawyer. Try to find a firm in which you have direct contact with your lawyer.
4. Meet with the lawyer you've selected and go over your case. Your lawyer should be asking and answering all of your questions. They will determine which chapter is best for you, based on your financial affairs. A lawyer will also assist you with completing the BAPCPA's means test.
5. Find out how much it will cost. The fees for filing are varied. Some lawyers will charge a flat fee, while others will charge based upon the amount of debt that you have. Some lawyers will require that you pay up front before they file. Refer all creditors to your lawyer's office, once he or she has been retained.
6. Wait for a meeting of creditors. Once your lawyer has submitted your petition, you will be notified by mail with your date for a meeting of creditors (or a "341 meeting," named after the section of the Bankruptcy Code requiring it). This will allow the trustee to ensure that you have given truthful answers on your bankruptcy petition, and that you understood and agreed to filing for bankruptcy.
Your lawyer should have met with you prior to this meeting to go over all of your debt to ensure that it is all listed. You must also list all of your assets. He or she will also go over sample questions that will be asked at the meeting. Prior to the meeting, you should have reviewed your file with your lawyer. Once you are sworn in at the meeting, you will answer questions that are recorded.
7. In filing a bankruptcy case, do not use your credit cards. If you do so with the intent to file, a creditor can challenge the discharge of the debt owed or even your right to discharge any debt. If you obtained the debt knowing that you could not repay it, you may not be able to discharge that debt if the creditor challenges it through a lawsuit, or adversary proceeding, in your bankruptcy case.
8. In a chapter 7 bankruptcy case, the trustee will determine whether or not there are assets that can be liquidated and used to repay your creditors. If the trustee determines that all your assets are exempt, a report of no distribution will be filed with the bankruptcy court. If the trustee determines that there are non-exempt assets, they will be sold and payments may be made to your creditors. In a chapter 7 case, you may never have to pay a creditor back. In a chapter 13 bankruptcy, you will be required to enter into a 3 to 5 year plan, in which you will pay creditors as much as you can over time, taking into consideration the BAPCPA means test.
9. The 60th day after your meeting of creditors is first set is the deadline for creditors to file lawsuits to challenge the discharge of a particular debt or your entire discharge.
If no such lawsuits are filed, shortly after that 60th day you will receive notification of a discharge of debt if you filed chapter 7 bankruptcy. A discharges means that you have no further obligation to repay the discharged debt, the existence of that discharged debt may still appear in your credit reports though, and that your creditors can never collect the debt from you.
If you filed a chapter 13 bankruptcy caseFree Articles, you will receive the notice of discharge approximately 30 to 60 days after your final payment has been made and the trustee ensures your payment plan has been followed and completed.
ABOUT THE AUTHOR
Dean Shainin offers online bankruptcy and debt advice. For more information, articles, news, tools and valuable resources on bankruptcy and debt solutions, visit this site: http://bankruptcy.deans-knowledgebase.com
A bankruptcy is the last option any businessman wants to take. They can cause a big dent on their credit rating and deeply ruin their reputation. But sometimes filing for bankruptcy is the only solution to get a person out of dire straits. Here are the nine steps to be followed in filing a bankruptcy:
1. See to it that there is no other solution that you can do to avoid filing for bankruptcy. Bankruptcy allows for a fresh start. Under the Bankruptcy Abuse Prevention and Consumer Protection Act ("BAPCPA"), which significantly amended the U.
S. Bankruptcy Code effective October 17, 2005, prior to filing a bankruptcy case, an individual must obtain some consumer credit counselling from an entity approved by the U.
S. Trustee within 180 days of the date of the filing of a bankruptcy case. Such counselling is intended to provide an individual with alternatives in filing a bankruptcy case.
2. Consider the two common bankruptcy types. The most popular is the chapter 7 (which is a straight or liquidation bankruptcy), and there is also the chapter 13 (which is a repayment plan for individuals). BAPCPA has made chapter 7 to be more difficult to file, because of the means test. Many individuals will be forced to file a chapter 13 case because of this test.
3. Research your options as it relates to filing. Some people choose to file without the aid of a lawyer. But it's highly recommended to hire a lawyer. Your research should help you decide on a lawyer. In most cases, people who choose large firms to represent them will work with a paralegal and not the lawyer. Try to find a firm in which you have direct contact with your lawyer.
4. Meet with the lawyer you've selected and go over your case. Your lawyer should be asking and answering all of your questions. They will determine which chapter is best for you, based on your financial affairs. A lawyer will also assist you with completing the BAPCPA's means test.
5. Find out how much it will cost. The fees for filing are varied. Some lawyers will charge a flat fee, while others will charge based upon the amount of debt that you have. Some lawyers will require that you pay up front before they file. Refer all creditors to your lawyer's office, once he or she has been retained.
6. Wait for a meeting of creditors. Once your lawyer has submitted your petition, you will be notified by mail with your date for a meeting of creditors (or a "341 meeting," named after the section of the Bankruptcy Code requiring it). This will allow the trustee to ensure that you have given truthful answers on your bankruptcy petition, and that you understood and agreed to filing for bankruptcy.
Your lawyer should have met with you prior to this meeting to go over all of your debt to ensure that it is all listed. You must also list all of your assets. He or she will also go over sample questions that will be asked at the meeting. Prior to the meeting, you should have reviewed your file with your lawyer. Once you are sworn in at the meeting, you will answer questions that are recorded.
7. In filing a bankruptcy case, do not use your credit cards. If you do so with the intent to file, a creditor can challenge the discharge of the debt owed or even your right to discharge any debt. If you obtained the debt knowing that you could not repay it, you may not be able to discharge that debt if the creditor challenges it through a lawsuit, or adversary proceeding, in your bankruptcy case.
8. In a chapter 7 bankruptcy case, the trustee will determine whether or not there are assets that can be liquidated and used to repay your creditors. If the trustee determines that all your assets are exempt, a report of no distribution will be filed with the bankruptcy court. If the trustee determines that there are non-exempt assets, they will be sold and payments may be made to your creditors. In a chapter 7 case, you may never have to pay a creditor back. In a chapter 13 bankruptcy, you will be required to enter into a 3 to 5 year plan, in which you will pay creditors as much as you can over time, taking into consideration the BAPCPA means test.
9. The 60th day after your meeting of creditors is first set is the deadline for creditors to file lawsuits to challenge the discharge of a particular debt or your entire discharge.
If no such lawsuits are filed, shortly after that 60th day you will receive notification of a discharge of debt if you filed chapter 7 bankruptcy. A discharges means that you have no further obligation to repay the discharged debt, the existence of that discharged debt may still appear in your credit reports though, and that your creditors can never collect the debt from you.
If you filed a chapter 13 bankruptcy caseFree Articles, you will receive the notice of discharge approximately 30 to 60 days after your final payment has been made and the trustee ensures your payment plan has been followed and completed.
ABOUT THE AUTHOR
Dean Shainin offers online bankruptcy and debt advice. For more information, articles, news, tools and valuable resources on bankruptcy and debt solutions, visit this site: http://bankruptcy.deans-knowledgebase.com
Rebuilding Your Credit After Bankruptcy
In the past, filing bankruptcy was like having a Scarlet Letter on your chest. Bankruptcy made people outcasts and pariahs. It was as if a contagious disease struck, and no one wanted to be near you for fear of infection.
In the past, filing bankruptcy was like having a Scarlet Letter on your chest. Bankruptcy made people outcasts and pariahs. It was as if a contagious disease struck, and no one wanted to be near you for fear of infection.
Today, bankruptcy doesn’t quite have the stigma it used to. Many of the world’s most successful people have filed for bankruptcy. These people hit rock bottom, and have bounced back to become wildly successful.
To emerge from bankruptcy requires diligence and discipline. In order to get back on your financial feet, you must rebuild your credit.
If you filed a chapter 13 bankruptcy, you had to make your court-ordered payments until the bankruptcy was satisfied. Even though you made great strides financially by doing so, lenders don’t see it quite that way. Lenders don’t consider your bankruptcy payments as a way to rebuild your credit. In fact, the “rebuilding credit” clock starts after it’s discharged, no matter how long it takes you to pay while in chapter 13.
If you filed a chapter 7 bankruptcy, rebuilding won’t take quite as long. When you file for chapter 7 bankruptcy, your debts are essentially wiped out, and you start all over. Once your chapter 7 is discharged, which usually takes a few months from when you filed, your rebuilding credit clock starts.
When you file for chapter 7 bankruptcy, you have the choice of reaffirming some of your debt. In other words, you can choose to keep some of your credit lines open instead of having them wiped out. This is an option you might want to consider, especially if you have smaller credit cards with low balances (under $500). By continuing to pay your reaffirmed debt, you can help rebuild your credit with timely payments and low balances.
Regardless of which bankruptcy you file, there will come a time when the bankruptcy is fully discharged. It’s almost like being free after years in prison – you made some mistakes, you paid for them, you (hopefully) learned your lesson, and you’re looking to make a fresh start. Now, you have to rebuild your credit.
Paradoxically, you need to obtain credit to rebuild credit, but you can’t obtain credit if you just invalidated your creditors. One of the best and most popular ways to begin the process is to obtain a secured credit card. With a secured credit card, a credit company will extend you a credit line in exchange for a cash deposit. Your credit limit is usually equal to, or a percentage of, your deposit. Rarely, if ever, will it be higher than your deposit.
These credit cards are not hard to find. In fact, since bankruptcy is public record, many of these companies will find your name at the county courthouse and send you a solicitation to apply. You must be careful when dealing with these companies. Some are notorious for “kicking you when you’re down.” In addition to the deposit, they will charge you exorbitant junk fees and interest rates. Always read the fine print in the solicitation. As required by law, they must disclose their fees and rates to you.
As well, make absolutely sure that the credit card company actually reports your payment history to the three major credit bureaus. Getting a secured credit card is worthless if your history isn’t reported. It’s worth repeating that you must find out if they report to all three bureaus, as opposed to just one or two. You will handicap your rebuilding efforts if the history does not show up on all three.
Lastly, make sure the credit card is an actual Visa or MasterCard. Some credit companies offer credit cards that are only usable on their own products. They look like real credit cards, but if they’re not Visa or MasterCard, you can’t use them anywhere of consequence.
Once you have discharged your bankruptcy, obtain a copy of your credit report from the three major bureaus. In order to start your rebuilding credit campaign, you must know where you stand. Filing bankruptcy will have a tremendous impact on your credit scores. When you know where your score standsFree Web Content, you can take the necessary steps to boost them in the shortest possible amount of time.
ABOUT THE AUTHOR
Frank Bruno has spent the last 3 years assisting hundreds of clients in saving thousands of dollars in Interest rates by teaching them unique techniques on how to quickly and dramatically raise their credit scores. For more information please visit his website- http://www.CreditScoreBooster.com
In the past, filing bankruptcy was like having a Scarlet Letter on your chest. Bankruptcy made people outcasts and pariahs. It was as if a contagious disease struck, and no one wanted to be near you for fear of infection.
Today, bankruptcy doesn’t quite have the stigma it used to. Many of the world’s most successful people have filed for bankruptcy. These people hit rock bottom, and have bounced back to become wildly successful.
To emerge from bankruptcy requires diligence and discipline. In order to get back on your financial feet, you must rebuild your credit.
If you filed a chapter 13 bankruptcy, you had to make your court-ordered payments until the bankruptcy was satisfied. Even though you made great strides financially by doing so, lenders don’t see it quite that way. Lenders don’t consider your bankruptcy payments as a way to rebuild your credit. In fact, the “rebuilding credit” clock starts after it’s discharged, no matter how long it takes you to pay while in chapter 13.
If you filed a chapter 7 bankruptcy, rebuilding won’t take quite as long. When you file for chapter 7 bankruptcy, your debts are essentially wiped out, and you start all over. Once your chapter 7 is discharged, which usually takes a few months from when you filed, your rebuilding credit clock starts.
When you file for chapter 7 bankruptcy, you have the choice of reaffirming some of your debt. In other words, you can choose to keep some of your credit lines open instead of having them wiped out. This is an option you might want to consider, especially if you have smaller credit cards with low balances (under $500). By continuing to pay your reaffirmed debt, you can help rebuild your credit with timely payments and low balances.
Regardless of which bankruptcy you file, there will come a time when the bankruptcy is fully discharged. It’s almost like being free after years in prison – you made some mistakes, you paid for them, you (hopefully) learned your lesson, and you’re looking to make a fresh start. Now, you have to rebuild your credit.
Paradoxically, you need to obtain credit to rebuild credit, but you can’t obtain credit if you just invalidated your creditors. One of the best and most popular ways to begin the process is to obtain a secured credit card. With a secured credit card, a credit company will extend you a credit line in exchange for a cash deposit. Your credit limit is usually equal to, or a percentage of, your deposit. Rarely, if ever, will it be higher than your deposit.
These credit cards are not hard to find. In fact, since bankruptcy is public record, many of these companies will find your name at the county courthouse and send you a solicitation to apply. You must be careful when dealing with these companies. Some are notorious for “kicking you when you’re down.” In addition to the deposit, they will charge you exorbitant junk fees and interest rates. Always read the fine print in the solicitation. As required by law, they must disclose their fees and rates to you.
As well, make absolutely sure that the credit card company actually reports your payment history to the three major credit bureaus. Getting a secured credit card is worthless if your history isn’t reported. It’s worth repeating that you must find out if they report to all three bureaus, as opposed to just one or two. You will handicap your rebuilding efforts if the history does not show up on all three.
Lastly, make sure the credit card is an actual Visa or MasterCard. Some credit companies offer credit cards that are only usable on their own products. They look like real credit cards, but if they’re not Visa or MasterCard, you can’t use them anywhere of consequence.
Once you have discharged your bankruptcy, obtain a copy of your credit report from the three major bureaus. In order to start your rebuilding credit campaign, you must know where you stand. Filing bankruptcy will have a tremendous impact on your credit scores. When you know where your score standsFree Web Content, you can take the necessary steps to boost them in the shortest possible amount of time.
ABOUT THE AUTHOR
Frank Bruno has spent the last 3 years assisting hundreds of clients in saving thousands of dollars in Interest rates by teaching them unique techniques on how to quickly and dramatically raise their credit scores. For more information please visit his website- http://www.CreditScoreBooster.com
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