Has your life been suffocated by debt and bankruptcy looks like the only way to breathe? If you have been controlled by debt and want out you need to understand how bankruptcy and credit repair go hand-in-hand. Today, filing for bankruptcy is not as easy as it was two years ago. With new bankruptcy laws now in place, things have changed. Currently, anyone interested in filing for bankruptcy must first go through credit counselling prior to filing.
In addition, before old debt can just be wiped out, further counselling on debt management and budgeting is required. Then, for people with higher income, they will no longer be able to file for Chapter 7 but instead, must repay a portion of their debt as outlined in Chapter 13. This new law makes it much harder to file and it creates a problem in finding a bankruptcy attorney to take the case. Therefore, rather than file for bankruptcy, credit repair may be a better, long-term solution.
Now, if you have already filed for bankruptcy and now your credit report looks bad, credit repair is still an option. The good news is that whether your bankruptcy is new or old, there are options for improving your credit score. With a bankruptcy, the goal is to have all your debt discharged, which makes life easier and credit better. Unfortunately, the bankruptcy just adds negativity to a credit report. Then, when you consider that credit bureaus are allowed to report a bankruptcy for 7 to 10 years, you live with a smudge that can make financial situations difficult.
The bottom line is that trying to qualify for credit or a mortgage loan after bankruptcy is near impossible unless the credit is cleaned up. Therefore, remember that bankruptcy, credit repair programs do exist but you need to be very careful when choosing a company in that they are not all honest. These special programs are designed to improve your credit and raise your FICO score even after filing a bankruptcy. However, keep in mind that cleaning up credit does not happen overnight, it takes time.
Look at it this way, bankruptcy is a legal issue. Therefore, while you may be thinking about filing for bankruptcy as a means of getting a fresh financial start, be careful and consider all your options first. For some people, there are times when a bankruptcy may be the only way to get back on track but today, bankruptcy credit repair is becoming more and more common, especially with the new laws in effect. Even thought the bankruptcy will stay on your credit report for the 7 to 10 years, during that time, you can do other things to rebuild and establish good credit.
In other words, while the bankruptcy may reside on your credit report for years, many lenders and creditors will look beyond the bankruptcy to see what else you have been doing. This means if you pay your other bills on time for an extended period, pay off some of your excessive debt, and show that you are creditworthy, creditors will eventually be willing to work with you. Yes, a bankruptcy will hurt but by using credit repair for other items, you can improve your score and again start to enjoy financial freedom.
Just remember that thousands of companies exist that will promise you bankruptcy credit repair in the form of removing the bankruptcy from your credit report. The truth is that this is impossible. Therefore, while some companies can offer bankruptcy credit repair and improve your credit, actually promising to remove the bankruptcy prior to the 7 to 10 years is nothing more than a scam. These companies will gladly take your $200 to $500 and in return, do nothing for you. Just be wise when working with a credit repair company and above all, educate yourself on your legal rights and the way in which credit bureaus work so you know what is and is not possible.
http://www.creditrepaircommando.com/bankruptcy-credit-repair.html
Tuesday, August 28, 2007
Post Bankruptcy Credit Repair
Although bankruptcy is not something any person wants to go through, it is a part of life for many. Sometimes, debt just becomes too overwhelming and no matter how hard you try, bankruptcy becomes inevitable. You might find yourself in a bad divorce situation, perhaps you just lost a spouse, or you might have just made some poor decisions from a financial perspective. No matter what, you still have rights. This article will address post-bankruptcy credit repair, showing you how to “start over”.
For most people having gone through bankruptcy, they feel beat down and unworthy. You can stand up for yourself and use the laws in place to help you get back on your feet. You are certainly not the only or the last person ever found in this situation so pull yourself up by your bootstraps and take chart. Post-bankruptcy credit repair is an excellent opportunity to clean up old credit history and start anew so you can enjoy the things in life you deserve.
What happens is that once you file for bankruptcy and it is discharged, the debts are reported on the credit report as “zero balance”. Keep in mind that a bankruptcy can remain on your credit report for up to 10 years but that does not mean you cannot enjoy buying power. One of the ways to enjoy post-bankruptcy credit repair is to re-establish yourself with a secured credit card. You might be thinking that was what got you into trouble in the first place, why would you want a card. Well, a secured card is different.
With this, you can choose a Visa or MasterCard, which is issued by a bank. You would be required to have a savings account at that particular bank, which would be used for collateral toward purchases. Therefore, let us say you were given a $300 credit line. You would open a savings account with a minimum of $300. You can spend on that card up to $300 just as you would with a traditional credit card but if at any time you were to be late on a payment or default, the bank would take the money required from the savings account, which you would not have access to. Therefore, you enjoy post-bankruptcy credit repair while the bank is secured.
Another post-bankruptcy credit repair option would be to buy a car from someone that advertises they specialize in loans specifically for people who have experienced bad credit, even bankruptcy. The good side of this is that you get the car and have a great opportunity to show creditors that even with a bankruptcy on your credit report, you are still trying and creditworthy. The downside is that you can expect to pay high interest rates so there is trade off.
Just remember that with any type of post-bankruptcy credit repair, you want to be careful to avoid the very, same traps that ensnared you before landing you in hot water. Too often, people having filed for bankruptcy will find their mailbox inundated with all types of unsecured credit card offers. The reason – you do not owe anyone money. Therefore, even though you filed for bankruptcy, all income is just that, income and not payments. This means companies are willing to take a small risk. Unfortunately, unsecured credit cards mean you can spend, be late, and miss payments altogether, and all that would happen is you would have another negative remark on your credit report while the company would have to pay an attorney to hunt you down. This is danger, as you can imagine.
In truth, you have too many good, post-bankruptcy credit repair options to be setting yourself up for failure. Just be smart and make wise choices. You can always work with a reputable credit counselor to learn all the options you have. Bankruptcy is not pretty but it is also not the end of the world. You will have to work to get back on track and improve your credit score but in time and by doing it the right way, you can and you will!
http://www.creditrepaircommando.com/post-bankruptcy-credit-repair.html
For most people having gone through bankruptcy, they feel beat down and unworthy. You can stand up for yourself and use the laws in place to help you get back on your feet. You are certainly not the only or the last person ever found in this situation so pull yourself up by your bootstraps and take chart. Post-bankruptcy credit repair is an excellent opportunity to clean up old credit history and start anew so you can enjoy the things in life you deserve.
What happens is that once you file for bankruptcy and it is discharged, the debts are reported on the credit report as “zero balance”. Keep in mind that a bankruptcy can remain on your credit report for up to 10 years but that does not mean you cannot enjoy buying power. One of the ways to enjoy post-bankruptcy credit repair is to re-establish yourself with a secured credit card. You might be thinking that was what got you into trouble in the first place, why would you want a card. Well, a secured card is different.
With this, you can choose a Visa or MasterCard, which is issued by a bank. You would be required to have a savings account at that particular bank, which would be used for collateral toward purchases. Therefore, let us say you were given a $300 credit line. You would open a savings account with a minimum of $300. You can spend on that card up to $300 just as you would with a traditional credit card but if at any time you were to be late on a payment or default, the bank would take the money required from the savings account, which you would not have access to. Therefore, you enjoy post-bankruptcy credit repair while the bank is secured.
Another post-bankruptcy credit repair option would be to buy a car from someone that advertises they specialize in loans specifically for people who have experienced bad credit, even bankruptcy. The good side of this is that you get the car and have a great opportunity to show creditors that even with a bankruptcy on your credit report, you are still trying and creditworthy. The downside is that you can expect to pay high interest rates so there is trade off.
Just remember that with any type of post-bankruptcy credit repair, you want to be careful to avoid the very, same traps that ensnared you before landing you in hot water. Too often, people having filed for bankruptcy will find their mailbox inundated with all types of unsecured credit card offers. The reason – you do not owe anyone money. Therefore, even though you filed for bankruptcy, all income is just that, income and not payments. This means companies are willing to take a small risk. Unfortunately, unsecured credit cards mean you can spend, be late, and miss payments altogether, and all that would happen is you would have another negative remark on your credit report while the company would have to pay an attorney to hunt you down. This is danger, as you can imagine.
In truth, you have too many good, post-bankruptcy credit repair options to be setting yourself up for failure. Just be smart and make wise choices. You can always work with a reputable credit counselor to learn all the options you have. Bankruptcy is not pretty but it is also not the end of the world. You will have to work to get back on track and improve your credit score but in time and by doing it the right way, you can and you will!
http://www.creditrepaircommando.com/post-bankruptcy-credit-repair.html
The New Bankruptcy Law - What it Means to You
Years ago, just about anyone could file for bankruptcy. As long as they could show an imbalance of debt-to-income ratio and an overload of debt, they would quality. Well, times have changed. With so many millions of people now in debt and numbers growing, the government stepped in and said, “Enough is enough.” While some of the new bankruptcy laws are good, others might be considered not so good.
On October 17, 2005, a new bankruptcy law went into affect as a means of providing more protection for consumers. Officially known as the Bankruptcy Abuse Prevention and Consumer Protection Act, or BAPCPA, this law was signed in by President George Bush, which covers many changes to include debtors being required to pass strict rules to qualify. Through rigid testing, a determination is made whether Chapter 7 or Chapter 13 bankruptcy can be filed.
As you will discover, quite a bit of controversy surrounds this new law and for good reason. People supporting BAPCPA agree that it prohibits debtors who can afford to pay off debts from filing for bankruptcy, thus abusing the system. On the other end of the spectrum are those who do not support BAPCPA. For these individuals, the consensus is that the law is too strict. Regardless, just about everyone agrees that the changes are indeed the most significant law passed in several decades.
Again, opinions about the new bankruptcy conflict and considering the political motives and various viewpoints, it can all seem very confusing. The truth is that using bankruptcy to erase debt is a necessary evil for people who would otherwise have not way to get out of debt, whether from illness, loss of job, family death, and so on. In the past 20 years, the number of bankruptcies has jumped from 280,000 to 1.5 million! In fact, in just the past 10 years, one million people have filed for bankruptcy every year!
The downside to bankruptcy is that for each person unable to pay off debt, means someone else has to pick up the slack, which is the system by which we live. With so much debt and numbers staggering, the bankruptcy reform was designed to prevent the laws meant to help people from being abused. Obviously, bankruptcy in any case should be a last resort since once its done, it will remain on the person’s credit report for the next 10 years, meaning financial power is diminished although not impossible.
The truth is that the benefits that bankruptcy affords in wiping out debt needs to outweigh any negative aspects, which is something any person contemplating this action should consider. For most people, they would rather not file for bankruptcy but in some cases, this action is inevitable. The new bankruptcy law, BAPCPA, most definitely makes it more of a challenge for people who can afford other options out of the financial situation. Below are the changes this new bankruptcy brings:
· During the mandatory 180-day period prior to filing bankruptcy, you would have to go through a special briefing by an approved not-for-profit credit and budget, counseling agency. This agency must provide you with information outlining various counseling services to help you out of the situation. Additionally, this agency must perform a budget analysis. Then, if you were unable to pay for the service, it would be offered to you at no charge.
· Next, for you to qualify for Chapter 7 bankruptcy under the new law, which is the option that gives you a clean slate by wiping out debt, you would have to have an income level below the median income for the same size family living within your state or undergo a bankruptcy means test. This particular test is somewhat complex and considered strict when it comes to expenses. For instance, you would be allowed $1,500 annually per child under age 18 for expenses associated with private education no matter the actual expense.
· If you had an income more than the median income level for the same size family living within your state and you were able to pay a minimum of $6,000 over a five-year period or $100 monthly, then you would be required to file bankruptcy under Chapter 13, which means a portion of your debt would have to be repaid.
· A bankruptcy lawyer is required to certify your financial statement to the court. In fact, the lawyer will now be held financially responsible should any of your statements be false or misleading. Because so much responsibility has now fallen back on the lawyer, you can expect fees for filing bankruptcy to be much higher.
· The cost of filing a Chapter 7 bankruptcy has increased fro $155 to $200 and for Chapter 13 bankruptcy, the cost has decreased from $155 to $150.
For creditors, requirements under the new bankruptcy law have changed as well. These include the following:
· Under the new bankruptcy law, the Federal Reserve Board is required to study the question of, “Is there a connection between credit card debts developed in college with bankruptcies?” With so much research on the issue, a tremendous amount of documentation shows there is indeed a strong connection. The primary problem is that credit card companies swoop down over innocent college students with little money, making it far too easy for them to charge!
· The next change for creditors under this new bankruptcy law is that creditors cannot cancel and must display payback time. In other words, a creditor cannot cancel a credit card if the consumer pays it off. Additionally, the creditor is required to list the amount of time it will take to payoff the balance by the consumer paying only a minimum payment. This means now, a creditor must show that a $5,000 balance at 17% requiring a 2% payment will take a whopping 40 years to pay off!
· Third, bank regulators are now mandated to study whether credit card companies are issuing cards indiscriminately, without consideration to a person’s ability to repay. Credit card companies must also be studies to determine if they are actually key contributors to bankruptcy.
As the debtor, there are a few other requirements to consider in addition to those already mentioned.
· If there were any charges made on a credit card within the first three months after bankruptcy, you would be required to pay them in full.
· The bankruptcy courts have never given much credence to child support but the new law now sets a higher priority on both child support and alimony. With this, your income from child support and/or alimony may now be considered whereas with the old law, it was typically overlooked.
· IRAs are another factor to consider under the new bankruptcy law. Although bankruptcy should protect any money put aside in an education IRA, it also puts a cap on what things can be shielded from creditors in a Roth or other IRA. Interestingly, the cap is $1 million.
While all of these changes bring about great concern for people thinking about filing bankruptcy, other factors in the new law raise even more concern.
· Living expenses can now be dictated by the court. The concern is that most people are not sure the law can dictate a reasonable amount for living expenses. The reason is that different parts of the country are dramatically different. For example, if you live in the State of California, cost of living is 50% or more than the west coast. The question that has risen is “How can any court dictate ‘reasonable’ living expenses accurately”?
· Assets cannot be shielded by the debtor by moving to Texas or Florida, or buying a high-end home. In other words, if the rich decide to move to a different state such as Florida or Texas as a means of benefiting from a higher state homestead exemption, the new law no longer allows this.
· Auto loans are also a concern under the new bankruptcy law. In this case, the full amount of the auto loan must be paid off or surrendered to repossession, even if the automobile is not worth the amount of outstanding balance. Unfortunately, we have all seen where a great car salesman sells a car with high interest and ridiculously high payments, more than the person can afford. After having the automobile for five or six months, he or she realizes that the payments are more than can be afforded. The only option is to file for bankruptcy. Under the old law, the car would be surrendered and the debt wiped out. Under the new law, the amount of the debt must be paid in full regardless of the balance!
· Renter evictions are also hit by the new bankruptcy law. Now, landlords are able to evict tenants that have fallen victim to bankruptcy much easier. While the old law provided some protection, the new law means if you fall behind on rent payments, you can be evicted quicker and easier.
· Finally, creditors are now permitted to ask the courts to dissolve the established bankruptcy plan if you are late filing your paperwork to include copies of paycheck stubs, tax returns, employment verification, bank statements, and so on.
In summary, the new bankruptcy law has advantages and disadvantages. With the freedom in which credit was issued having increased over the years, as well as contribution to credit card company’s bottom line, changes had to be made. Although some of the new laws seem a bit harsh, the goal is to teach people to be more financially responsible. However, the new laws are also designed to help the people that REALLY need the help, not those just looking for a fast and easy way out. The key to the new bankruptcy law working is all about balance, social and economic balance.
While the changes with the bankruptcy law are certainly not perfect, the bottom line is that they are final. Therefore, reaction will occur but the law will stay. Keep in mind that as debt and the need for solutions continues it is likely that additional amendments will surface some day.
http://www.creditrepaircommando.com/new-bankruptcy-law.html
On October 17, 2005, a new bankruptcy law went into affect as a means of providing more protection for consumers. Officially known as the Bankruptcy Abuse Prevention and Consumer Protection Act, or BAPCPA, this law was signed in by President George Bush, which covers many changes to include debtors being required to pass strict rules to qualify. Through rigid testing, a determination is made whether Chapter 7 or Chapter 13 bankruptcy can be filed.
As you will discover, quite a bit of controversy surrounds this new law and for good reason. People supporting BAPCPA agree that it prohibits debtors who can afford to pay off debts from filing for bankruptcy, thus abusing the system. On the other end of the spectrum are those who do not support BAPCPA. For these individuals, the consensus is that the law is too strict. Regardless, just about everyone agrees that the changes are indeed the most significant law passed in several decades.
Again, opinions about the new bankruptcy conflict and considering the political motives and various viewpoints, it can all seem very confusing. The truth is that using bankruptcy to erase debt is a necessary evil for people who would otherwise have not way to get out of debt, whether from illness, loss of job, family death, and so on. In the past 20 years, the number of bankruptcies has jumped from 280,000 to 1.5 million! In fact, in just the past 10 years, one million people have filed for bankruptcy every year!
The downside to bankruptcy is that for each person unable to pay off debt, means someone else has to pick up the slack, which is the system by which we live. With so much debt and numbers staggering, the bankruptcy reform was designed to prevent the laws meant to help people from being abused. Obviously, bankruptcy in any case should be a last resort since once its done, it will remain on the person’s credit report for the next 10 years, meaning financial power is diminished although not impossible.
The truth is that the benefits that bankruptcy affords in wiping out debt needs to outweigh any negative aspects, which is something any person contemplating this action should consider. For most people, they would rather not file for bankruptcy but in some cases, this action is inevitable. The new bankruptcy law, BAPCPA, most definitely makes it more of a challenge for people who can afford other options out of the financial situation. Below are the changes this new bankruptcy brings:
· During the mandatory 180-day period prior to filing bankruptcy, you would have to go through a special briefing by an approved not-for-profit credit and budget, counseling agency. This agency must provide you with information outlining various counseling services to help you out of the situation. Additionally, this agency must perform a budget analysis. Then, if you were unable to pay for the service, it would be offered to you at no charge.
· Next, for you to qualify for Chapter 7 bankruptcy under the new law, which is the option that gives you a clean slate by wiping out debt, you would have to have an income level below the median income for the same size family living within your state or undergo a bankruptcy means test. This particular test is somewhat complex and considered strict when it comes to expenses. For instance, you would be allowed $1,500 annually per child under age 18 for expenses associated with private education no matter the actual expense.
· If you had an income more than the median income level for the same size family living within your state and you were able to pay a minimum of $6,000 over a five-year period or $100 monthly, then you would be required to file bankruptcy under Chapter 13, which means a portion of your debt would have to be repaid.
· A bankruptcy lawyer is required to certify your financial statement to the court. In fact, the lawyer will now be held financially responsible should any of your statements be false or misleading. Because so much responsibility has now fallen back on the lawyer, you can expect fees for filing bankruptcy to be much higher.
· The cost of filing a Chapter 7 bankruptcy has increased fro $155 to $200 and for Chapter 13 bankruptcy, the cost has decreased from $155 to $150.
For creditors, requirements under the new bankruptcy law have changed as well. These include the following:
· Under the new bankruptcy law, the Federal Reserve Board is required to study the question of, “Is there a connection between credit card debts developed in college with bankruptcies?” With so much research on the issue, a tremendous amount of documentation shows there is indeed a strong connection. The primary problem is that credit card companies swoop down over innocent college students with little money, making it far too easy for them to charge!
· The next change for creditors under this new bankruptcy law is that creditors cannot cancel and must display payback time. In other words, a creditor cannot cancel a credit card if the consumer pays it off. Additionally, the creditor is required to list the amount of time it will take to payoff the balance by the consumer paying only a minimum payment. This means now, a creditor must show that a $5,000 balance at 17% requiring a 2% payment will take a whopping 40 years to pay off!
· Third, bank regulators are now mandated to study whether credit card companies are issuing cards indiscriminately, without consideration to a person’s ability to repay. Credit card companies must also be studies to determine if they are actually key contributors to bankruptcy.
As the debtor, there are a few other requirements to consider in addition to those already mentioned.
· If there were any charges made on a credit card within the first three months after bankruptcy, you would be required to pay them in full.
· The bankruptcy courts have never given much credence to child support but the new law now sets a higher priority on both child support and alimony. With this, your income from child support and/or alimony may now be considered whereas with the old law, it was typically overlooked.
· IRAs are another factor to consider under the new bankruptcy law. Although bankruptcy should protect any money put aside in an education IRA, it also puts a cap on what things can be shielded from creditors in a Roth or other IRA. Interestingly, the cap is $1 million.
While all of these changes bring about great concern for people thinking about filing bankruptcy, other factors in the new law raise even more concern.
· Living expenses can now be dictated by the court. The concern is that most people are not sure the law can dictate a reasonable amount for living expenses. The reason is that different parts of the country are dramatically different. For example, if you live in the State of California, cost of living is 50% or more than the west coast. The question that has risen is “How can any court dictate ‘reasonable’ living expenses accurately”?
· Assets cannot be shielded by the debtor by moving to Texas or Florida, or buying a high-end home. In other words, if the rich decide to move to a different state such as Florida or Texas as a means of benefiting from a higher state homestead exemption, the new law no longer allows this.
· Auto loans are also a concern under the new bankruptcy law. In this case, the full amount of the auto loan must be paid off or surrendered to repossession, even if the automobile is not worth the amount of outstanding balance. Unfortunately, we have all seen where a great car salesman sells a car with high interest and ridiculously high payments, more than the person can afford. After having the automobile for five or six months, he or she realizes that the payments are more than can be afforded. The only option is to file for bankruptcy. Under the old law, the car would be surrendered and the debt wiped out. Under the new law, the amount of the debt must be paid in full regardless of the balance!
· Renter evictions are also hit by the new bankruptcy law. Now, landlords are able to evict tenants that have fallen victim to bankruptcy much easier. While the old law provided some protection, the new law means if you fall behind on rent payments, you can be evicted quicker and easier.
· Finally, creditors are now permitted to ask the courts to dissolve the established bankruptcy plan if you are late filing your paperwork to include copies of paycheck stubs, tax returns, employment verification, bank statements, and so on.
In summary, the new bankruptcy law has advantages and disadvantages. With the freedom in which credit was issued having increased over the years, as well as contribution to credit card company’s bottom line, changes had to be made. Although some of the new laws seem a bit harsh, the goal is to teach people to be more financially responsible. However, the new laws are also designed to help the people that REALLY need the help, not those just looking for a fast and easy way out. The key to the new bankruptcy law working is all about balance, social and economic balance.
While the changes with the bankruptcy law are certainly not perfect, the bottom line is that they are final. Therefore, reaction will occur but the law will stay. Keep in mind that as debt and the need for solutions continues it is likely that additional amendments will surface some day.
http://www.creditrepaircommando.com/new-bankruptcy-law.html
Credit Repair After Bankruptcy
Going through a bankruptcy is a difficult time. Probably the worst aspect is the ten years the bankruptcy will appear on your credit report. However, if you have gone through this process, you need to know that you have options for credit repair after bankruptcy. Although the road will be somewhat challenging, remind yourself that bankruptcy does not have to be a black cloud that looms overheard. In addition, just because the bankruptcy will show up for ten years, you can still do several things during this time to improve your FICO credit score.
You need to look at your bankruptcy as a fresh start, a time of starting over where you can get your financial life back on track. Although the steps to credit repair after bankruptcy are not anything magical, they are sound and they do work. Remember, right now, you need to focus on your financial present, not so much on your credit history. This article will provide you with some great steps to credit repair after bankruptcy so you can rebuild credit to enjoy the things in life you deserve.
Our first step toward credit repair after bankruptcy is to consider joining a credit union. With this, you become a member, a part of the family of the credit union, not just another customer. Then, open both a checking and savings account at the credit union, keeping good record so these accounts will help you rebuild. Then, when you need to buy a home or car, or perhaps take out a personal loan, the credit union would be a much likelier source than a traditional bank.
Another step to credit repair after bankruptcy is to apply for a credit card. In this case, you have two options. First, you could go with a secured card, which means you open a bank-like account and deposit a certain amount of money in it. Whatever this amount is becomes the available credit on your card. In other words, the bank account is collateral. The other option is to choose a credit card designed to help people rebuild credit such as Orchard Bank or Capital One. Although you will pay higher interest, once you have the card and make regular payments on purchases made, your credit score will begin to climb.
Just as there are things you can do for credit repair after bankruptcy, there are also things you should do. For example, you want to avoid getting caught up in the trap of credit repair firms or agencies. These companies are run by scam artists that will ask for a large sum of money upfront, which is illegal, and then do virtually nothing in return. In fact, most of these so-called credit repair companies will suggest you make illegal steps toward credit repair, making the issue far worse.
Keep in mind that when it comes to credit repair after bankruptcy, some companies are legitimate and capable of helping but you will need to ask a lot of questions and check references. In addition, keep reminding yourself that you will get your credit under control. You will have a chance of reestablishing good credit so you can enjoy a sound financial future. However, be patient and work hard. Although you will not be able to start the rebuilding process immediately, it will come. Typically, we recommend you start about two years after the bankruptcy. This time is ideal for applying for a credit card, preferably one without an annual fee, and perhaps a personal loan.
The process for credit repair after bankruptcy is one that requires you to take small, baby steps. Obviously, a lender is not going to say, “Sure, you’re fine now – here’s a $10,000 loan”. You have to work to rebuild the trust of lenders. A simple credit card with a $300 credit line with payments made on time each month will do wonders for your credit score. As creditors notice you making payments on time and maintaining a workable and acceptable balance, they will begin to increase your credit line and be more willing to extend credit. Soon, you will again be considered a strong candidate for credit!
http://www.creditrepaircommando.com/creit-repair-after-bankruptcy.html
You need to look at your bankruptcy as a fresh start, a time of starting over where you can get your financial life back on track. Although the steps to credit repair after bankruptcy are not anything magical, they are sound and they do work. Remember, right now, you need to focus on your financial present, not so much on your credit history. This article will provide you with some great steps to credit repair after bankruptcy so you can rebuild credit to enjoy the things in life you deserve.
Our first step toward credit repair after bankruptcy is to consider joining a credit union. With this, you become a member, a part of the family of the credit union, not just another customer. Then, open both a checking and savings account at the credit union, keeping good record so these accounts will help you rebuild. Then, when you need to buy a home or car, or perhaps take out a personal loan, the credit union would be a much likelier source than a traditional bank.
Another step to credit repair after bankruptcy is to apply for a credit card. In this case, you have two options. First, you could go with a secured card, which means you open a bank-like account and deposit a certain amount of money in it. Whatever this amount is becomes the available credit on your card. In other words, the bank account is collateral. The other option is to choose a credit card designed to help people rebuild credit such as Orchard Bank or Capital One. Although you will pay higher interest, once you have the card and make regular payments on purchases made, your credit score will begin to climb.
Just as there are things you can do for credit repair after bankruptcy, there are also things you should do. For example, you want to avoid getting caught up in the trap of credit repair firms or agencies. These companies are run by scam artists that will ask for a large sum of money upfront, which is illegal, and then do virtually nothing in return. In fact, most of these so-called credit repair companies will suggest you make illegal steps toward credit repair, making the issue far worse.
Keep in mind that when it comes to credit repair after bankruptcy, some companies are legitimate and capable of helping but you will need to ask a lot of questions and check references. In addition, keep reminding yourself that you will get your credit under control. You will have a chance of reestablishing good credit so you can enjoy a sound financial future. However, be patient and work hard. Although you will not be able to start the rebuilding process immediately, it will come. Typically, we recommend you start about two years after the bankruptcy. This time is ideal for applying for a credit card, preferably one without an annual fee, and perhaps a personal loan.
The process for credit repair after bankruptcy is one that requires you to take small, baby steps. Obviously, a lender is not going to say, “Sure, you’re fine now – here’s a $10,000 loan”. You have to work to rebuild the trust of lenders. A simple credit card with a $300 credit line with payments made on time each month will do wonders for your credit score. As creditors notice you making payments on time and maintaining a workable and acceptable balance, they will begin to increase your credit line and be more willing to extend credit. Soon, you will again be considered a strong candidate for credit!
http://www.creditrepaircommando.com/creit-repair-after-bankruptcy.html
MEETING WITH A BANKRUPTCY LAWYER OR ATTORNEY
Your initial meeting with a Bankruptcy Lawyer or Bankruptcy Attorney, should give the Lawyer an opportunity to assess your financial situation, your goals, and the options available to you. You should feel that you can communicate well with the Bankruptcy Attorney or Bankruptcy Attorney and have confidence that your matters are handled with competence and care. Ask the Lawyer how much of his or her practice involves Bankruptcy Law and what portion of the Bankruptcy cases are similar to yours. Note whether the Bankruptcy Attorney answers your questions and explains matters in a manner you can understand. Do you feel comfortable asking the Bankruptcy Lawyer or Bankruptcy Attorney to further clarify matters? Filing Bankruptcy is stressful enough without having to wonder if you understand what is happening.
Review the pricing structure of the Attorney services. Most Bankruptcies are done for a flat fee. Ask the Attorney what costs there are in addition the flat fee, and get the arrangement in writing.
MAIN CHANGES TO NEW BANKRUPTCY LAW
foreclose mortgage refinancing common questions legal information filing debt problems debt consolidation creditor trustee bankruptcy lawyers law firms new port richey hillsborough pinellas county pasco polk countiesThe Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took effect on October 17, 2005. There are numerous changes that came about as a result of the new bankruptcy law:
Mandatory Credit Counseling
Anyone filing for bankruptcy must now undergo credit counseling and receive a credit counseling certificate through a program approved by the Department of Justice. Generally, you need this certificate at least 24 hours before filing bankruptcy. Therefore, especially if you are facing a foreclosure, make sure you obtain this certificate promptly.
Stricter Eligibility for Chapter 7 Filing
Under the new law, bankruptcy applicants who wish to file Chapter 7 bankruptcy must meet eligibility requirements under a “means test”. Under the means test, if your current monthly income is less than the median income in your state, you can file for Chapter 7 bankruptcy. This median income figure changes constantly, but our bankruptcy attorneys or bankruptcy lawyers can advise you of the current figures. If your current monthly income is above the median income and you can afford to pay $100 per month towards your debt (or $6,575 over a five year period), then you must file Chapter 13 bankruptcy.
Tax Returns and Proof of Income Required
In order to file either Chapter 7 bankruptcy or Chapter 13 bankruptcy, we must show, at a minimum, the last two years tax returns and proof of income for the last six months.
Fewer Automatic Stay Protections
People who file bankruptcy have generally been entitled to certain immediate protections from creditors, including most debt collection and lawsuit actions. This is called the Automatic Stay because creditors are automatically stayed or prevented from making collection efforts. Under the new bankruptcy law, some protections have been eliminated. Filing for bankruptcy no longer stops evictions, drivers license suspensions, actions for child support or divorce proceedings.
Priority Status for Unpaid Child Support and Alimony
Under the new bankruptcy law, persons owed unpaid child support and alimony take priority over other creditors. In a Chapter 13 bankruptcy, this means these persons are paid before any other creditor.
Mandatory Financial Management Education
At the conclusion of bankruptcy proceedings, but before any debt can be discharged, bankruptcy debtors must participate in an approved financial management education program. This can be completed by phone or on-line.
RE-ESTABLISHING CREDIT
One of the most commonly asked questions we receive is bow will filing bankruptcy affect my credit and what can I do to improve my credit after bankruptcy. After filing bankruptcy your credit rating could be affected, depending upon how bad or good your credit rating was before filing, but there are things you can do re-establish your credit. Here is a checklist of things to do after bankruptcy:
1. Employment-A steady work history, even part-time work, will help re-establish credit
2. Pull a credit report and make sure it accurately reflects the debts you included in the Bankruptcy. We provide a Credit Repair Service. It is not expensive and will improve your credit.
3. Apply for a secured credit card (if you are not eligible for an unsecured credit card) And make regular payments. You need to show a history, usually of about 18 months, of making on-time payments.
4. Open a savings account and make regular deposits. Do not bounce any checks.
5. Make sure that you make your house and automobile payments are paid on time if you retained these items after you filed bankruptcy.
6. If you apply for a credit card or loan to re-establish credit, make sure the organization reports these transactions to the credit bureau because not all organizations do so.
If you are interested in re-establishing your credit, please schedule an appointment to meet with one of our Bankruptcy Lawyers or Bankruptcy Attorneys who can further advise you on how to re-establish your credit after the bankruptcy.
http://www.jayweller.com/bankruptcy.htm#bankruptcy_lawyers
Review the pricing structure of the Attorney services. Most Bankruptcies are done for a flat fee. Ask the Attorney what costs there are in addition the flat fee, and get the arrangement in writing.
MAIN CHANGES TO NEW BANKRUPTCY LAW
foreclose mortgage refinancing common questions legal information filing debt problems debt consolidation creditor trustee bankruptcy lawyers law firms new port richey hillsborough pinellas county pasco polk countiesThe Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took effect on October 17, 2005. There are numerous changes that came about as a result of the new bankruptcy law:
Mandatory Credit Counseling
Anyone filing for bankruptcy must now undergo credit counseling and receive a credit counseling certificate through a program approved by the Department of Justice. Generally, you need this certificate at least 24 hours before filing bankruptcy. Therefore, especially if you are facing a foreclosure, make sure you obtain this certificate promptly.
Stricter Eligibility for Chapter 7 Filing
Under the new law, bankruptcy applicants who wish to file Chapter 7 bankruptcy must meet eligibility requirements under a “means test”. Under the means test, if your current monthly income is less than the median income in your state, you can file for Chapter 7 bankruptcy. This median income figure changes constantly, but our bankruptcy attorneys or bankruptcy lawyers can advise you of the current figures. If your current monthly income is above the median income and you can afford to pay $100 per month towards your debt (or $6,575 over a five year period), then you must file Chapter 13 bankruptcy.
Tax Returns and Proof of Income Required
In order to file either Chapter 7 bankruptcy or Chapter 13 bankruptcy, we must show, at a minimum, the last two years tax returns and proof of income for the last six months.
Fewer Automatic Stay Protections
People who file bankruptcy have generally been entitled to certain immediate protections from creditors, including most debt collection and lawsuit actions. This is called the Automatic Stay because creditors are automatically stayed or prevented from making collection efforts. Under the new bankruptcy law, some protections have been eliminated. Filing for bankruptcy no longer stops evictions, drivers license suspensions, actions for child support or divorce proceedings.
Priority Status for Unpaid Child Support and Alimony
Under the new bankruptcy law, persons owed unpaid child support and alimony take priority over other creditors. In a Chapter 13 bankruptcy, this means these persons are paid before any other creditor.
Mandatory Financial Management Education
At the conclusion of bankruptcy proceedings, but before any debt can be discharged, bankruptcy debtors must participate in an approved financial management education program. This can be completed by phone or on-line.
RE-ESTABLISHING CREDIT
One of the most commonly asked questions we receive is bow will filing bankruptcy affect my credit and what can I do to improve my credit after bankruptcy. After filing bankruptcy your credit rating could be affected, depending upon how bad or good your credit rating was before filing, but there are things you can do re-establish your credit. Here is a checklist of things to do after bankruptcy:
1. Employment-A steady work history, even part-time work, will help re-establish credit
2. Pull a credit report and make sure it accurately reflects the debts you included in the Bankruptcy. We provide a Credit Repair Service. It is not expensive and will improve your credit.
3. Apply for a secured credit card (if you are not eligible for an unsecured credit card) And make regular payments. You need to show a history, usually of about 18 months, of making on-time payments.
4. Open a savings account and make regular deposits. Do not bounce any checks.
5. Make sure that you make your house and automobile payments are paid on time if you retained these items after you filed bankruptcy.
6. If you apply for a credit card or loan to re-establish credit, make sure the organization reports these transactions to the credit bureau because not all organizations do so.
If you are interested in re-establishing your credit, please schedule an appointment to meet with one of our Bankruptcy Lawyers or Bankruptcy Attorneys who can further advise you on how to re-establish your credit after the bankruptcy.
http://www.jayweller.com/bankruptcy.htm#bankruptcy_lawyers
Monday, August 27, 2007
What Can a Creditor Do When a Chapter 7 or 13 Bankruptcy Is Filed?
Bankruptcy is designed to protect both the debtor and the creditor. There are powerful tools in the Bankruptcy Code to assist a creditor and protect their rights. Creditor's Rights is a legal term used to describe a lawyer's specialized practice area focused on the collection of debts on behalf of creditors.
Attorneys who practice in the area of "Creditor's Rights" will perform one or all of the following:
* Filing lawsuits and using other legal collection techniques to collect consumer debts (i.e. debts owed by individuals).
*
Filing lawsuits and using other legal collection techniques to collect commercial debts (i.e. debts owed by businesses).
* Representing a creditor's interests in a bankruptcy proceeding.
* Foreclosure or trustee’s sale of real estate if the purchaser defaults on payment
* Recovery of secured goods (e.g. automobiles) if the purchaser defaults on payment
GENERAL:
◙ Now that a bankruptcy has been filed what do I do first?
◙ Do I receive notice of the Bankruptcy?
◙ Do your homework
◙ Important Deadlines and Timeline for chapter 7 and 13 cases.
◙ What is a proof of claim and why should I file one?
◙ What is a creditor's meeting?
◙ What if I am owed alimony/maintenance or child support?
◙ How can I complete my trustee's sale/foreclosure?
◙ What if I am a landlord?
◙ How does the creditor ask the debtor questions?
◙ Can I object to the discharge of my debt?
◙ What is a reaffirmation agreement?
GENERAL:
Now that a bankruptcy has been filed what do I do first? Order a copy of the debtor’s bankruptcy schedules or check with the clerk’s office to verify that your name and debt has been listed to ensure receipt of notices. This should be done at the Bankruptcy Court where the case was filed. A creditor should review the schedules filed by the debtor, noting whether the creditor's claim (what is owing to the creditor) was properly designated as secured or unsecured and listed in the accurate amount. It should also be noted whether the debtor disputes the claim or lists it as un-liquidated or contingent. Any errors can be rectified by filing a proof of claim, if a claim was not listed on the debtor’s schedules, the creditor must file a proof of claim by the court deadline or the claim will be disallowed and the creditor will not receive any monies if there is to be a distribution of funds.
Do I receive notice of the Bankruptcy? Section 342 requires that all creditors receive notice of the bankruptcy in order for the full restraining action of the automatic stay to become effective. The debtor is to list all addresses provided by the creditor within the 90 days before the bankruptcy was filed, and/or any other address used by the creditor in another bankruptcy. Section 342(c) Again, this is new law and I would not advise the creditor to ignore any notice, written or otherwise. Once the creditor receives notice of the bankruptcy they must cease all attempts to contact the debtor or seize property, without obtain permission from the bankruptcy Court. There are monetary penalty for ignoring this prohibition. Section 343(g) and 362(k).
Do your homework. Carefully check all of the loan and security documents to ensure that they are complete and that all necessary steps have been taken to perfect liens on any collateral securing the obligation. This step is extremely important and will determine the strength of a secured creditor’s position in the case. Section 506 describes how the value of a secured claim is determined. Although curing deficiencies post-petition may be a violation of the automatic stay, nevertheless it is essential to be aware of any problems. Section 547(c)(3) & (e) gives the secured creditor no more than 30 days after the debtor receives possession of property or transfer is made to perfect the creditor's lien.
What is a proof of claim and why should I file one? File a proof of claim. It is the creditor’s proof of claim that will govern unless specifically objected to by the debtor.
In a Chapter 7 no-asset case, proofs of claim need not be filed. There will not be any distribution of funds to any unsecured creditors. A no-asset is a case where all the assets of the Debtor were protected by law (exemption property). The majority of all chapter 7 cases involving individuals are no-asset cases.
In all other Chapter 7 cases and Chapter 13 cases, a creditor must always file a proof of claim to participate in any distribution.
In a Chapter 11 case a proof of claim is not required if the claim is accurately listed in the schedules and is not scheduled as disputed, contingent or un-liquidated.
What is a creditor's meeting? Shortly after a bankruptcy is filed, creditors will receive notice of an initial meeting of creditors (Section 341, Meeting of Creditors) to be held at the Office of the United States Trustee. You may attend the Section 341, Meeting of Creditors, but are not required. This meeting provides the creditor a opportunity to ask the debtor a few questions regarding its claim, its collateral, other claims against the debtor, the debtor’s plans for its bankruptcy case and any other aspects of its financial affairs. This is not an opportunity to interrogate the Debtor. This is a good time to reveal to the Trustee (the person conducting the meeting) any inconsistencies the creditor has discovered in the schedules. Make sure to be able to support any statements. Either the creditor or its counsel can attend the meeting. To Top Of Page
What if I am owed alimony/maintenance or child support? The 2005 changes to the Bankruptcy Code greatly favor anyone owed child support or alimony/maintenance (called "domestic support obligations" or "DSO"). There is no automatic stay on the collection of any DSOs from property that is not property of the estate 362(b)(2)(B). Also, the legislative history of the new law and Section Section 522(c)(1) makes it clear that all property owned by the debtor can be liquidated to pay DSO debt. The Bankruptcy Trustee even has obligations to the DSO claimant. Section 704(c).
How can I complete my trustee's sale/foreclosure? If a creditor wants its collateral out of the bankruptcy completely a Motion for Relief from the Automatic Stay should be filed early in the case, forcing the debtor to deal with the problem head on. Normally a hearing is scheduled in approximately 30 days on “lift stay” motions. Without an Order lifting the stay the creditor is prohibited from completing their trustee's sale or foreclosure.
What if I am a landlord? (1) Residential real property or personal property: Chapter 7 - The debtor/trustee has 60 days from filing the bankruptcy to either accept or reject the lease. If the lease is accepted then rents must be brought current. Section 365(p(2) If the lease is not accepted within within the 60 days then it is automatically deemed rejected. Unfortunately, despite the fact that the lease has expired the landlord still cannot take any action against the debtor or his personal property without filing a motion for relief. Therefore, it is wise in a lease to file a motion for relief immediately upon the debtor filing their bankruptcy. Chapter 11, 12 or 13 - trustee/debtor may assume or reject lease at any time before the confirmation of the Plan Section 365(d)(2) and 365(p)(3)
(2) Non-residential real property - trustee must assume within 120 days of the filing of the bankruptcy or order confirming Plan, court can extend for additional 90 days. Section 365(d)(4). See 503(b)(5) previously assume lease, then rejected - possible administrative claim.
* Section 362(b)(22) indicates that there is no automatic stay, so long as the landlord obtained a judgment for possession of residential property prior to the filing of the bankruptcy.
* Section 362(c)(3)(A) indicates that the automatic stay may terminate 30 days after filing the bankruptcy with respect to any lease, if that debtor had a prior bankruptcy (7, 1 or 13) pending in the last 12 months.
* Section 362(c)(4)(A)(i) No automatic stay if debtor filed two or more cases in last 12 months.
* Beware - this is new law and may "bite the landlord in the a_ _". Until the law is settled I highly recommend obtaining a comfort order as described in 362(j).
* The landlord may not use the filing of a bankruptcy as grounds for terminating a least 365(e)(1)
* Trustee may assign the lease, despite non-assignment clauses Section 365(f).
How does the creditor ask the debtor questions? You can ask the debtor questions at the creditors meeting (see above), or Bankruptcy Rule 2004 permits a creditor to take the deposition of the debtor and inquire into all aspects of its financial affairs. The scope of the examination is broad and should be taken advantage of to obtain information.
Can I object to the discharge of my debt? Look for a basis to object to the discharge of a particular debt under Sections 523 or 727. Creditors have only 60 days from the date of the initial meeting of creditors to file suit to declare their debts non-dischargeable on the basis of a false financial statement. It is very difficult for a creditor to win a non-dischargeable case and normally the creditor will not receive its attorney's fees/costs for bringing the action.
What is a reaffirmation agreement? After a bankruptcy is filed, but before the discharge is entered, the secured creditor, or landlord, could request the debtor sign a new contract "reaffirmation agreement". This new contract has the exact terms as the original, Section 524(c) and (k) delineates several documents, disclosures and procedures that must be followed by the creditor in obtaining this new contract. It must be approved by the Court in order to be binding on the debtor. It is most likely no debtor's attorney will sign the reaffirmation agreement because 524(k)(5)(B) requires that the debtor's attorney certify that the debtor will be able to make the payments. This is not only ludicrous, but how could anyone certified anyone else's ability to pay a future debt. This is also new law and few, if any, creditors will be able to follow the complicated procedures.
http://www.dianedrain.com/Bankruptcy/BankruptcyArticles/BKArticlesCreditorInfo.htm
Attorneys who practice in the area of "Creditor's Rights" will perform one or all of the following:
* Filing lawsuits and using other legal collection techniques to collect consumer debts (i.e. debts owed by individuals).
*
Filing lawsuits and using other legal collection techniques to collect commercial debts (i.e. debts owed by businesses).
* Representing a creditor's interests in a bankruptcy proceeding.
* Foreclosure or trustee’s sale of real estate if the purchaser defaults on payment
* Recovery of secured goods (e.g. automobiles) if the purchaser defaults on payment
GENERAL:
◙ Now that a bankruptcy has been filed what do I do first?
◙ Do I receive notice of the Bankruptcy?
◙ Do your homework
◙ Important Deadlines and Timeline for chapter 7 and 13 cases.
◙ What is a proof of claim and why should I file one?
◙ What is a creditor's meeting?
◙ What if I am owed alimony/maintenance or child support?
◙ How can I complete my trustee's sale/foreclosure?
◙ What if I am a landlord?
◙ How does the creditor ask the debtor questions?
◙ Can I object to the discharge of my debt?
◙ What is a reaffirmation agreement?
GENERAL:
Now that a bankruptcy has been filed what do I do first? Order a copy of the debtor’s bankruptcy schedules or check with the clerk’s office to verify that your name and debt has been listed to ensure receipt of notices. This should be done at the Bankruptcy Court where the case was filed. A creditor should review the schedules filed by the debtor, noting whether the creditor's claim (what is owing to the creditor) was properly designated as secured or unsecured and listed in the accurate amount. It should also be noted whether the debtor disputes the claim or lists it as un-liquidated or contingent. Any errors can be rectified by filing a proof of claim, if a claim was not listed on the debtor’s schedules, the creditor must file a proof of claim by the court deadline or the claim will be disallowed and the creditor will not receive any monies if there is to be a distribution of funds.
Do I receive notice of the Bankruptcy? Section 342 requires that all creditors receive notice of the bankruptcy in order for the full restraining action of the automatic stay to become effective. The debtor is to list all addresses provided by the creditor within the 90 days before the bankruptcy was filed, and/or any other address used by the creditor in another bankruptcy. Section 342(c) Again, this is new law and I would not advise the creditor to ignore any notice, written or otherwise. Once the creditor receives notice of the bankruptcy they must cease all attempts to contact the debtor or seize property, without obtain permission from the bankruptcy Court. There are monetary penalty for ignoring this prohibition. Section 343(g) and 362(k).
Do your homework. Carefully check all of the loan and security documents to ensure that they are complete and that all necessary steps have been taken to perfect liens on any collateral securing the obligation. This step is extremely important and will determine the strength of a secured creditor’s position in the case. Section 506 describes how the value of a secured claim is determined. Although curing deficiencies post-petition may be a violation of the automatic stay, nevertheless it is essential to be aware of any problems. Section 547(c)(3) & (e) gives the secured creditor no more than 30 days after the debtor receives possession of property or transfer is made to perfect the creditor's lien.
What is a proof of claim and why should I file one? File a proof of claim. It is the creditor’s proof of claim that will govern unless specifically objected to by the debtor.
In a Chapter 7 no-asset case, proofs of claim need not be filed. There will not be any distribution of funds to any unsecured creditors. A no-asset is a case where all the assets of the Debtor were protected by law (exemption property). The majority of all chapter 7 cases involving individuals are no-asset cases.
In all other Chapter 7 cases and Chapter 13 cases, a creditor must always file a proof of claim to participate in any distribution.
In a Chapter 11 case a proof of claim is not required if the claim is accurately listed in the schedules and is not scheduled as disputed, contingent or un-liquidated.
What is a creditor's meeting? Shortly after a bankruptcy is filed, creditors will receive notice of an initial meeting of creditors (Section 341, Meeting of Creditors) to be held at the Office of the United States Trustee. You may attend the Section 341, Meeting of Creditors, but are not required. This meeting provides the creditor a opportunity to ask the debtor a few questions regarding its claim, its collateral, other claims against the debtor, the debtor’s plans for its bankruptcy case and any other aspects of its financial affairs. This is not an opportunity to interrogate the Debtor. This is a good time to reveal to the Trustee (the person conducting the meeting) any inconsistencies the creditor has discovered in the schedules. Make sure to be able to support any statements. Either the creditor or its counsel can attend the meeting. To Top Of Page
What if I am owed alimony/maintenance or child support? The 2005 changes to the Bankruptcy Code greatly favor anyone owed child support or alimony/maintenance (called "domestic support obligations" or "DSO"). There is no automatic stay on the collection of any DSOs from property that is not property of the estate 362(b)(2)(B). Also, the legislative history of the new law and Section Section 522(c)(1) makes it clear that all property owned by the debtor can be liquidated to pay DSO debt. The Bankruptcy Trustee even has obligations to the DSO claimant. Section 704(c).
How can I complete my trustee's sale/foreclosure? If a creditor wants its collateral out of the bankruptcy completely a Motion for Relief from the Automatic Stay should be filed early in the case, forcing the debtor to deal with the problem head on. Normally a hearing is scheduled in approximately 30 days on “lift stay” motions. Without an Order lifting the stay the creditor is prohibited from completing their trustee's sale or foreclosure.
What if I am a landlord? (1) Residential real property or personal property: Chapter 7 - The debtor/trustee has 60 days from filing the bankruptcy to either accept or reject the lease. If the lease is accepted then rents must be brought current. Section 365(p(2) If the lease is not accepted within within the 60 days then it is automatically deemed rejected. Unfortunately, despite the fact that the lease has expired the landlord still cannot take any action against the debtor or his personal property without filing a motion for relief. Therefore, it is wise in a lease to file a motion for relief immediately upon the debtor filing their bankruptcy. Chapter 11, 12 or 13 - trustee/debtor may assume or reject lease at any time before the confirmation of the Plan Section 365(d)(2) and 365(p)(3)
(2) Non-residential real property - trustee must assume within 120 days of the filing of the bankruptcy or order confirming Plan, court can extend for additional 90 days. Section 365(d)(4). See 503(b)(5) previously assume lease, then rejected - possible administrative claim.
* Section 362(b)(22) indicates that there is no automatic stay, so long as the landlord obtained a judgment for possession of residential property prior to the filing of the bankruptcy.
* Section 362(c)(3)(A) indicates that the automatic stay may terminate 30 days after filing the bankruptcy with respect to any lease, if that debtor had a prior bankruptcy (7, 1 or 13) pending in the last 12 months.
* Section 362(c)(4)(A)(i) No automatic stay if debtor filed two or more cases in last 12 months.
* Beware - this is new law and may "bite the landlord in the a_ _". Until the law is settled I highly recommend obtaining a comfort order as described in 362(j).
* The landlord may not use the filing of a bankruptcy as grounds for terminating a least 365(e)(1)
* Trustee may assign the lease, despite non-assignment clauses Section 365(f).
How does the creditor ask the debtor questions? You can ask the debtor questions at the creditors meeting (see above), or Bankruptcy Rule 2004 permits a creditor to take the deposition of the debtor and inquire into all aspects of its financial affairs. The scope of the examination is broad and should be taken advantage of to obtain information.
Can I object to the discharge of my debt? Look for a basis to object to the discharge of a particular debt under Sections 523 or 727. Creditors have only 60 days from the date of the initial meeting of creditors to file suit to declare their debts non-dischargeable on the basis of a false financial statement. It is very difficult for a creditor to win a non-dischargeable case and normally the creditor will not receive its attorney's fees/costs for bringing the action.
What is a reaffirmation agreement? After a bankruptcy is filed, but before the discharge is entered, the secured creditor, or landlord, could request the debtor sign a new contract "reaffirmation agreement". This new contract has the exact terms as the original, Section 524(c) and (k) delineates several documents, disclosures and procedures that must be followed by the creditor in obtaining this new contract. It must be approved by the Court in order to be binding on the debtor. It is most likely no debtor's attorney will sign the reaffirmation agreement because 524(k)(5)(B) requires that the debtor's attorney certify that the debtor will be able to make the payments. This is not only ludicrous, but how could anyone certified anyone else's ability to pay a future debt. This is also new law and few, if any, creditors will be able to follow the complicated procedures.
http://www.dianedrain.com/Bankruptcy/BankruptcyArticles/BKArticlesCreditorInfo.htm
Saturday, August 25, 2007
Nevada Bankruptcy, Following the Rules
Before filing for Nevada bankruptcy, people must find out what bankruptcy means and what consequences there will be.
The Nevada bankruptcy system has the following definition for bankruptcy: it is a business or person’s legally declared inability to pay off their debts. Although the Nevada bankruptcy court may be considered as a last legal resort, sometimes it is necessary and can also mean the only way out for a person or business. This means that by filing for Nevada bankruptcy, someone can continue living his financial life whenever there’s a financial setback of any kind.
Facing your life after filing for Nevada bankruptcy is not an easy task. It always gets a lot harder before getting any easier. We, as a professional bankruptcy counseling company, always suggest people think twice before making this final decision.
Angela Anderson, former client of Personal Bankruptcy Avoidance, had to file for Nevada bankruptcy 4 years ago. We went through the bankruptcy process with her and also gave her advice on how to recover after the process ended.
Angela Anderson:
How does Nevada bankruptcy work?
Martin Rogers:
Nevada bankruptcy as a federal court process has 2 different kinds of proceedings: liquidation known as number 7 or by reorganization known as numbers 11, 12 and 13.
The first one, number 7, is the most recognized Nevada bankruptcy proceeding.
This process is used to get rid of all or part of an accumulated debt and to give the person a relief from financial breakdown.
A professional counselor will guide you through the process and will help you explore other options before filing for bankruptcy because sometimes debt relief programs can make a difference.
Angela Anderson:
If I file for Nevada bankruptcy, can I save my house?
Martin Rogers:
While Nevada bankruptcy is designed for specific purposes such as withdrawing from the program at any time during the collection process and stopping all harassment activity from letters to collection calls almost immediately; you can save your house by following some basic rules. First, a debtor has to receive 180 days of counseling from a non-profit credit counseling company before filing Nevada bankruptcy. Even though collection companies may have stopped contacting the client, they can still continue the collection process and can even serve the debtor with foreclosure papers. Meaning that you could end up losing your house even if you follow the procedure and hire your own lawyer. The Nevada bankruptcy trick lies in the timing of filing for bankruptcy be very careful and plan your filing.
Angela Anderson:
Is there a legal way to avoid Nevada bankruptcy?
Martin Rogers:
Of course. On my previous articles, I have stated the importance of thinking filing Nevada bankruptcy or any other bankruptcy system through. People need to see beyond all this and start looking for new debt relief options.
In conclusion, it is up to the debtors or the future clients to educate and brace themselves for worse-case scenarios. The Nevada bankruptcy system may be easy to grasp, but it is important to keep the consequences in mind. Applying in the Personal Bankruptcy Avoidance program is an excellent way of facing your debt problems once and for all. The program can also be used as training ground to avoid similar situations in the future. It surely will teach homeowners how to protect themselves under the new bankruptcy law. Most Americans do not have health or disability insurance and are vulnerable to work layoffs because of a stagnant economy.
We have different articles of interesting topics and current and former clients’ experiences with our programs. Take a look at the different situations on debt related topics such as the Nevada bankruptcy process and learn how to keep yourself a debt free person.
Avoid Nevada bankruptcy and become debt free once more. If at the end of this process you do not feel filing for bankruptcy is inevitable, remember to seek professional counseling.
Check these links to learn more:
http://www.personal-bankruptcy-avoidance.com/Bankruptcy/NV-Nevada/Bankruptcy-NV-Nevada.shtml
http://www.personal-bankruptcy-avoidance.com/Bankruptcy/NV-Nevada/Bankruptcy-NV-Nevada-form.shtml
Martin Rogers is a contributing writer to http://www.personal-bankruptcy-avoidance.com and is currently writing some special articles to guide business on how to manage debt and avoid bankruptcy. For Free information on the Nevada Bankruptcy Information, call toll-free 1-877-850-3328
http://www.buzzle.com/articles/nevada-bankruptcy-following-rules.html
The Nevada bankruptcy system has the following definition for bankruptcy: it is a business or person’s legally declared inability to pay off their debts. Although the Nevada bankruptcy court may be considered as a last legal resort, sometimes it is necessary and can also mean the only way out for a person or business. This means that by filing for Nevada bankruptcy, someone can continue living his financial life whenever there’s a financial setback of any kind.
Facing your life after filing for Nevada bankruptcy is not an easy task. It always gets a lot harder before getting any easier. We, as a professional bankruptcy counseling company, always suggest people think twice before making this final decision.
Angela Anderson, former client of Personal Bankruptcy Avoidance, had to file for Nevada bankruptcy 4 years ago. We went through the bankruptcy process with her and also gave her advice on how to recover after the process ended.
Angela Anderson:
How does Nevada bankruptcy work?
Martin Rogers:
Nevada bankruptcy as a federal court process has 2 different kinds of proceedings: liquidation known as number 7 or by reorganization known as numbers 11, 12 and 13.
The first one, number 7, is the most recognized Nevada bankruptcy proceeding.
This process is used to get rid of all or part of an accumulated debt and to give the person a relief from financial breakdown.
A professional counselor will guide you through the process and will help you explore other options before filing for bankruptcy because sometimes debt relief programs can make a difference.
Angela Anderson:
If I file for Nevada bankruptcy, can I save my house?
Martin Rogers:
While Nevada bankruptcy is designed for specific purposes such as withdrawing from the program at any time during the collection process and stopping all harassment activity from letters to collection calls almost immediately; you can save your house by following some basic rules. First, a debtor has to receive 180 days of counseling from a non-profit credit counseling company before filing Nevada bankruptcy. Even though collection companies may have stopped contacting the client, they can still continue the collection process and can even serve the debtor with foreclosure papers. Meaning that you could end up losing your house even if you follow the procedure and hire your own lawyer. The Nevada bankruptcy trick lies in the timing of filing for bankruptcy be very careful and plan your filing.
Angela Anderson:
Is there a legal way to avoid Nevada bankruptcy?
Martin Rogers:
Of course. On my previous articles, I have stated the importance of thinking filing Nevada bankruptcy or any other bankruptcy system through. People need to see beyond all this and start looking for new debt relief options.
In conclusion, it is up to the debtors or the future clients to educate and brace themselves for worse-case scenarios. The Nevada bankruptcy system may be easy to grasp, but it is important to keep the consequences in mind. Applying in the Personal Bankruptcy Avoidance program is an excellent way of facing your debt problems once and for all. The program can also be used as training ground to avoid similar situations in the future. It surely will teach homeowners how to protect themselves under the new bankruptcy law. Most Americans do not have health or disability insurance and are vulnerable to work layoffs because of a stagnant economy.
We have different articles of interesting topics and current and former clients’ experiences with our programs. Take a look at the different situations on debt related topics such as the Nevada bankruptcy process and learn how to keep yourself a debt free person.
Avoid Nevada bankruptcy and become debt free once more. If at the end of this process you do not feel filing for bankruptcy is inevitable, remember to seek professional counseling.
Check these links to learn more:
http://www.personal-bankruptcy-avoidance.com/Bankruptcy/NV-Nevada/Bankruptcy-NV-Nevada.shtml
http://www.personal-bankruptcy-avoidance.com/Bankruptcy/NV-Nevada/Bankruptcy-NV-Nevada-form.shtml
Martin Rogers is a contributing writer to http://www.personal-bankruptcy-avoidance.com and is currently writing some special articles to guide business on how to manage debt and avoid bankruptcy. For Free information on the Nevada Bankruptcy Information, call toll-free 1-877-850-3328
http://www.buzzle.com/articles/nevada-bankruptcy-following-rules.html
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