Filing bankruptcy may be the most stressful and difficult decision you will make in your life. There are many financial stressors right now, and you may find that looking for a lawyer will only put more pressure on your pocket book. While it is true that legal fees tend to be high, the decision to use a bankruptcy lawyer is a good one, since in the long run it will probably be less expensive than not using a bankruptcy lawyer. There are many reasons why one should make the decision to use a bankruptcy lawyer than deciding to go it alone in court.
First, the recent bankruptcy laws have changed and deadlines are now stricter. If you fail to submit the correct paperwork on time, your case could be dismissed. The legalese involved in submitting documents may be difficult for the average person to understand, particularly if you are under significant stress. Making the decision to use a bankruptcy lawyer may prevent your case from being thrown out because of an error.
The decision to use a bankruptcy lawyer may not be as costly as you imagine. Obviously, bankruptcy lawyers are used to dealing with people who are suffering from financial difficulties, and it isn’t hard to find a reasonably priced bankruptcy lawyer. However, this doesn’t mean that you should find the cheapest one. Investing in a good attorney who specializes in bankruptcy cases is part of making the important decision to use a bankruptcy lawyer.
http://www.refresharticles.com/articles/bankruptcy/credit_cards_after_bankruptcy.TXT
Tuesday, November 13, 2007
How to Manage Credit Cards After Bankruptcy
When people get credit cards, many think that they can purchase anything they want practically for free, that they can just “charge it on the credit card” and worry about paying it later. However, these same people often spend their paychecks recklessly on everyday items and are not able to pay their regular bills, so they now have to think of how to manage their credit cards after bankruptcy.
Monetary Caution is Needed with Credit Cards After Bankruptcy
The first thing that people should do with their credit cards after bankruptcy is evaluate how many they really should have in the first place. While some people carry many credit cards, it is a good idea not to have more than two. Thus, aside from two, people should get rid of their lesser important credit cards after bankruptcy.
Of course, before getting rid of the credit cards after bankruptcy, there is the issue of being able to actually pay them off beforehand. It all has to do with the credit that the person has at the time. For example, if the person has good credit, then the credit card company might set up some sort of a payment plan to help the person pay off their debt.
However, if the person has horrible credit (after getting a credit card, since a person needs to be pre-approved to get one in the first place) then the credit card company might treat the bankruptcy situation differently. In this case, you will need to call the customer service of each credit card company and enquire about their payment options.
When it comes to consolidating your credit cards after bankruptcy, the best way to do that is to take the credit cards that have the most money on them and pay them off little by little until there is not debt on them. Next, take the credit cards that were not used at all (if applicable) and pay them off right away. It is best to focus on the higher-debt credit cards.
Making sure that your credit cards are still usable after your bankruptcy is something that you will have to find out, as it is determined by each person’s unique situation. It is important to realize that you might need a financial planner to help get you out of debt. With the proper planning, you are sure to figure out the right ways to spend your money.
http://www.refresharticles.com/articles/bankruptcy/credit_cards_after_bankruptcy.TXT
Monetary Caution is Needed with Credit Cards After Bankruptcy
The first thing that people should do with their credit cards after bankruptcy is evaluate how many they really should have in the first place. While some people carry many credit cards, it is a good idea not to have more than two. Thus, aside from two, people should get rid of their lesser important credit cards after bankruptcy.
Of course, before getting rid of the credit cards after bankruptcy, there is the issue of being able to actually pay them off beforehand. It all has to do with the credit that the person has at the time. For example, if the person has good credit, then the credit card company might set up some sort of a payment plan to help the person pay off their debt.
However, if the person has horrible credit (after getting a credit card, since a person needs to be pre-approved to get one in the first place) then the credit card company might treat the bankruptcy situation differently. In this case, you will need to call the customer service of each credit card company and enquire about their payment options.
When it comes to consolidating your credit cards after bankruptcy, the best way to do that is to take the credit cards that have the most money on them and pay them off little by little until there is not debt on them. Next, take the credit cards that were not used at all (if applicable) and pay them off right away. It is best to focus on the higher-debt credit cards.
Making sure that your credit cards are still usable after your bankruptcy is something that you will have to find out, as it is determined by each person’s unique situation. It is important to realize that you might need a financial planner to help get you out of debt. With the proper planning, you are sure to figure out the right ways to spend your money.
http://www.refresharticles.com/articles/bankruptcy/credit_cards_after_bankruptcy.TXT
Bankruptcy: The Implications
Those with debt problems too often subscribe to groundless myths and hearsay without ever understanding the law, and therefore the implications, of bankruptcy. Therefore, those with unmanageable debt should be aware of a few key facts before filing for bankruptcy. After all, how else will they know what life will be like after declaring themselves bankrupt? Let us look briefly at a few implications of liquidation.
Despite common belief, bankruptcy will not necessarily prevent you from getting credit. In today’s competitive lending market there are many lenders who are willing to take a risk in offering credit. Of course, the limit will be lower than usual, and the interest rates may be higher than before, but applying for credit after bankruptcy need not be the wild goose chase it’s made out to be.
What about home ownership? Is it possible to get a loan or mortgage after bankruptcy? Well, many lenders have been known to approve a mortgage to bankruptcy debtors in as little as 18 months after their liquidation. Again, there are lenders who are willing to take the risk, and many are willing to look at bankruptcy as a sign of your past problems with money, not as a warning about your future.
Finally, what about your pension savings? How will they be affected by your bankruptcy? Hopefully, not at all. Most pensions and savings plans are exempt from your estate upon bankruptcy, so they can’t be liquidated to repay your debts. However, there are exceptions to this rule. Outstanding tax liens are not generally forgiven after bankruptcy, so any taxes owed may be attached to your 401K, IRA, or other savings plan. You should bear this in mind before considering bankruptcy.
In any case, the best advice is always to seek professional counsel. A dedicated financial advisor can let you know all the facts about bankruptcy, as well as its implications. Only then can you make the right decision for you.
http://www.refresharticles.com/articles/bankruptcy/Bankruptcy%20-%20The%20Implications.txt
Despite common belief, bankruptcy will not necessarily prevent you from getting credit. In today’s competitive lending market there are many lenders who are willing to take a risk in offering credit. Of course, the limit will be lower than usual, and the interest rates may be higher than before, but applying for credit after bankruptcy need not be the wild goose chase it’s made out to be.
What about home ownership? Is it possible to get a loan or mortgage after bankruptcy? Well, many lenders have been known to approve a mortgage to bankruptcy debtors in as little as 18 months after their liquidation. Again, there are lenders who are willing to take the risk, and many are willing to look at bankruptcy as a sign of your past problems with money, not as a warning about your future.
Finally, what about your pension savings? How will they be affected by your bankruptcy? Hopefully, not at all. Most pensions and savings plans are exempt from your estate upon bankruptcy, so they can’t be liquidated to repay your debts. However, there are exceptions to this rule. Outstanding tax liens are not generally forgiven after bankruptcy, so any taxes owed may be attached to your 401K, IRA, or other savings plan. You should bear this in mind before considering bankruptcy.
In any case, the best advice is always to seek professional counsel. A dedicated financial advisor can let you know all the facts about bankruptcy, as well as its implications. Only then can you make the right decision for you.
http://www.refresharticles.com/articles/bankruptcy/Bankruptcy%20-%20The%20Implications.txt
Trauma of Bankruptcy
Nobody likes to admit defeat. For some people, filing bankruptcy means just that. It means that they have failed at repaying the debts that seem to be mounting daily. The whole idea of filing bankruptcy is an ominous one that often has a negative stigma attached to it. Every year, many Americans face the trauma of bankruptcy.
The trauma of bankruptcy has many facets. First, it affects people financially. Many times, it means having to give up a vehicle or even a home that you can no longer afford. It may mean you’ll no longer be able to secure loans easily since the trauma of bankruptcy can follow you for years to come.
Along with the financial trauma of bankruptcy comes the emotional trauma of bankruptcy. For many people, bankruptcy was something they tried to avoid at all costs. They fought diligently to pay off the bills in order to avoid filing bankruptcy, and in the end were unsuccessful. The feeling of failure is something that affects a person profoundly.
If you are facing the trauma of bankruptcy, be comforted by the fact that filing bankruptcy doesn’t have to be a negative experience. For some people, it has been just the opposite. It has been a burden lifted from their shoulders as they are able to regain control of their financial obligations with a fresh new start. It means facing the future with a clean slate and no previous financial obligations. For many people, it can be a wonderful new beginning.
http://www.refresharticles.com/articles/bankruptcy/The%20Trauma%20of%20Bankruptcy.txt
The trauma of bankruptcy has many facets. First, it affects people financially. Many times, it means having to give up a vehicle or even a home that you can no longer afford. It may mean you’ll no longer be able to secure loans easily since the trauma of bankruptcy can follow you for years to come.
Along with the financial trauma of bankruptcy comes the emotional trauma of bankruptcy. For many people, bankruptcy was something they tried to avoid at all costs. They fought diligently to pay off the bills in order to avoid filing bankruptcy, and in the end were unsuccessful. The feeling of failure is something that affects a person profoundly.
If you are facing the trauma of bankruptcy, be comforted by the fact that filing bankruptcy doesn’t have to be a negative experience. For some people, it has been just the opposite. It has been a burden lifted from their shoulders as they are able to regain control of their financial obligations with a fresh new start. It means facing the future with a clean slate and no previous financial obligations. For many people, it can be a wonderful new beginning.
http://www.refresharticles.com/articles/bankruptcy/The%20Trauma%20of%20Bankruptcy.txt
Using a Bankruptcy Lawyer
Many people think they can represent themselves in court when they file for bankruptcy, rather than hiring a bankruptcy lawyer. This is a mistake many make, and it can have far-reaching consequences. A bankruptcy lawyer has specialized information that the average person lacks, and knows the details of bankruptcy law, which has changed in recent years. A small error in paperwork, for instance could lead to one’s case being dismissed. This is less likely to happen if one is using a bankruptcy lawyer than going it alone.
Some believe that they can get around problems with paperwork by hiring a paralegal rather than using a bankruptcy lawyer. This is a misconception, because paralegals charge exorbitant fees just to prepare documents, and unlike bankruptcy lawyers, they will not represent you in court. It is much better to invest the money in using a bankruptcy lawyer than hiring a paralegal who will not guide you through the process of filing bankruptcy.
When you have realized that using a bankruptcy lawyer is by far the best option when filing bankruptcy, you will have to do some research to find out which bankruptcy lawyer is for you. It is perhaps worthwhile to visit a bankruptcy court during a trial to see which lawyers you want to work with. You will want to hire a bankruptcy lawyer whose specialty is bankruptcy, since the changes to bankruptcy law are complicated. Finally, you will want someone with experience and yet, is not too busy to pay attention to your case and to take care of your needs.
http://www.refresharticles.com/articles/bankruptcy/Using%20a%20Bankruptcy%20Lawyer.txt
Some believe that they can get around problems with paperwork by hiring a paralegal rather than using a bankruptcy lawyer. This is a misconception, because paralegals charge exorbitant fees just to prepare documents, and unlike bankruptcy lawyers, they will not represent you in court. It is much better to invest the money in using a bankruptcy lawyer than hiring a paralegal who will not guide you through the process of filing bankruptcy.
When you have realized that using a bankruptcy lawyer is by far the best option when filing bankruptcy, you will have to do some research to find out which bankruptcy lawyer is for you. It is perhaps worthwhile to visit a bankruptcy court during a trial to see which lawyers you want to work with. You will want to hire a bankruptcy lawyer whose specialty is bankruptcy, since the changes to bankruptcy law are complicated. Finally, you will want someone with experience and yet, is not too busy to pay attention to your case and to take care of your needs.
http://www.refresharticles.com/articles/bankruptcy/Using%20a%20Bankruptcy%20Lawyer.txt
Monday, November 12, 2007
Reality Check Regarding Student Loan Bankruptcy
Up until 2005, there were many more options for students who decided to declare bankruptcy in order to avoid repayment of their student debt. However, borrower's bankruptcy options on student loans have been cut to very few. Changes in the Bankruptcy Code in late 1998 made most student loans non-dischargeable, which means that even if a student filed for bankruptcy, he/she would retain the loan and have to repay. This is regardless of the age of the loan unless the borrower can prove "substantial hardship".
Hardship means that repayment will create undue hardship the repayment of the loan will create an undue hardship on the debtor/borrower and his family. This is defined as the debtor cannot maintain a minimally adequate standard of living and repay the loan with proof being the conditions are such that repayment and living at the minimum standard are impossible and that this situation is unlikely to improve substantially over time. Many undue hardship cases are compared to the 1987 case argued before the U.S. Supreme of Marie BRUNNER, Appellant, v. the New York State Higher Education Services Corp., Appellee.
There are less drastic methods besides student loan bankruptcy when you run into problems financially. Aside from bankruptcy, a defaulted student loan can be rehabilitated, consolidated, stretched out or discharged if the default is because of disability. If it is not defaulted, then ask for a forbearance or deferment.
If the borrower does reach the "wage garnishment" stage, some small comfort can be taken in the fact that federal regulations limit the amount of the student/borrowers garnishment to 10% of the total amount borrowed. Before reaching that stage, other options are available including contacting various agencies who can offer information on workouts and student loan consolidation programs for loans in trouble, including a program of repayment based on income. Nolo Press and EdFund have information on student loans. Carreon & Associates provides information defaulted loans and Consumer reports provides facts on graduated payments.
While there are many reasons why student loan bankruptcy might seem a viable option, in today's world, it should be the last and not the first resort. In point of fact, the only thing that it will affect in terms of debt reduction and the student loan is that it will reduce the borrowers other debts making it easier to repay the student loan. As a result, unless there is no other option available, student loan bankruptcy is not a good way to go unless all other bills and creditors involved need to be held off. If the sole purpose of filing bankruptcy is to avoid repayment of student loan debt, it is not the correct course of action.
Article Source: http://EzineArticles.com/?expert=Rob_Hickey
Hardship means that repayment will create undue hardship the repayment of the loan will create an undue hardship on the debtor/borrower and his family. This is defined as the debtor cannot maintain a minimally adequate standard of living and repay the loan with proof being the conditions are such that repayment and living at the minimum standard are impossible and that this situation is unlikely to improve substantially over time. Many undue hardship cases are compared to the 1987 case argued before the U.S. Supreme of Marie BRUNNER, Appellant, v. the New York State Higher Education Services Corp., Appellee.
There are less drastic methods besides student loan bankruptcy when you run into problems financially. Aside from bankruptcy, a defaulted student loan can be rehabilitated, consolidated, stretched out or discharged if the default is because of disability. If it is not defaulted, then ask for a forbearance or deferment.
If the borrower does reach the "wage garnishment" stage, some small comfort can be taken in the fact that federal regulations limit the amount of the student/borrowers garnishment to 10% of the total amount borrowed. Before reaching that stage, other options are available including contacting various agencies who can offer information on workouts and student loan consolidation programs for loans in trouble, including a program of repayment based on income. Nolo Press and EdFund have information on student loans. Carreon & Associates provides information defaulted loans and Consumer reports provides facts on graduated payments.
While there are many reasons why student loan bankruptcy might seem a viable option, in today's world, it should be the last and not the first resort. In point of fact, the only thing that it will affect in terms of debt reduction and the student loan is that it will reduce the borrowers other debts making it easier to repay the student loan. As a result, unless there is no other option available, student loan bankruptcy is not a good way to go unless all other bills and creditors involved need to be held off. If the sole purpose of filing bankruptcy is to avoid repayment of student loan debt, it is not the correct course of action.
Article Source: http://EzineArticles.com/?expert=Rob_Hickey
7 Scams To Avoid When Recovering From Bankruptcy
Any bankruptcy lawyer worth his fee and weight in gold, knowledgeable and experienced in the field, application, specialty sector of the market, will tell you that the intricacies and complexities of the personal bankruptcy filing process, business bankruptcy or chapter 7 or 13 bankruptcy procedures, are nothing to tangle with lightly. It is not a welcoming, inviting world for newbies and novices, or those who are going the journey and challenges alone. Not only that, it is made more perilous by criminal elements taking advantage of fraud, scams and crime, to exploit, steal, lie and get what is not rightfully their to ask or take, by some scam or scheme.
Bankruptcy law requires a fair amount of scrutiny, scruples and wise discernment, especially during the recovery phases, when there are many unscrupulous elements and exploiters out to make a quick buck, off the misfortunes, desperation and angst of those who have faltered, fallen and could not successfully stave off or avoid bankruptcy. To them any straw or glimmer of hope seems worth embracing, even if it means taking a risk, against all odds, believing in something so ludicrous that someone in different circumstances might just see right through it, without any difficulty, but they do, can not or do not want to, do not care or have no choice and are taken advantage of, lied to, stolen from and left devastated with and by yet another setback.
Utilizing the specialty services on offer in the realms and arena of the big league bankruptcy attorney California talent-pool or bankruptcy Los Angeles specialist practitioners, might cost you some disbursements and fees down the line, when assets are liquidated, bills settled for quality and comprehensive bankruptcy services rendered and delivered. However, it will be totally worth it to protect you against some of the scams, fraudulent practices and outright misleading out there.
Do not be merely one more or another statistic, be taken advantage of, sign anything until you know and verify whom you are dealing with, what is at stake, check them with the better business bureau. If you have to and retain a qualified, licensed and experienced attorney bankruptcy law expert and insider, to handle all aspects of your filing, case and recovery, do so. You will not regret it.
Home equity loan bankruptcy candidates and prospects are especially vulnerable, as they are hooked into signing away their most prized possession and asset, their home!
Many online, fly-by-night, fronts and criminal rings tap into this ‘hidden’ market to take advantage of exploiting those desperate for a bankruptcy loan, look for financing for cars, homes and other ventures, in the post-filing bankruptcy phases and stages. (These can typically last up to 7-10 years on a credit report, affecting access and credit ratings, scores negatively. They then step in, looking like the ‘heroes that save the day, at exorbitant rates and terms, getting people to sign away their life savings, pensions, equity rights and assets, from a position of powerless, hopeless, despair and desperation, turning out to be the would-be thieves, loan-sharks and criminal wolves in sheep’s-clothing that they really are, just out to make a quick buck and take what does not legally belong to them.
One of the most common bankruptcy form offenses and misleading out there, is the purchase of a falsified, fraudulent, inaccurate, or false credit score. This is actually breaking the law and a crime that you can be prosecuted for, so avoid this practice in its entirety.
If you are an unfortunate candidate for filing bankruptcy, or you have gone through the process, protect your interests and well-being, not falling victim to identity thieves, loan sharks and unscrupulous opportunistic lenders, who want to exploit your circumstances and unfortunate fate, turn of events and slow, painstaking recovery.
In the current realty markets, with all the foreclosures, some markets are especially vulnerable, think of the seniors in Florida bankruptcy processes, at risk to lose their homes and life savings. Those after hurricane season, natural disaster left with nothing but bad debt and no options, or those with simply too much credit card debt, who opt to get representation in the sunny state from a reputable Florida bankruptcy lawyer, to handle all aspects of it, only to find that they have been sold down the river, by someone posing to be what they are not.
There are lots of money to be made in the cadres and halls of after bankruptcy recovery type markets, especially now in this downturn type economy that we are facing.
#1: There are bankruptcy car loan schemes, after bankruptcy car loan financing at exorbitant rates, that promises the world, for an arm and a leg and then some, making the real market for car loan after bankruptcy more complex than it has to be, for those recovering from bankruptcy themselves, making debt relief seem even more unrealistic than ever.
#2: There are emails and spam that enter your mailbox, (spammers), enticing you to consolidate your bills into one monthly payment without borrowing; stopping all credit harassment, foreclosures, repossessions, tax levies and garnishments; or wipe out your debts. These are then offered through the means of declaring bankruptcy, without the candidate or prospect being told that’s what it is. It is a last resort, not a quick fix strategy for everyone. Take care and be cautioned to pay special attention to all the long-term negative impact on your creditworthiness of these types of steps, filings and processes. There might also even be attorney fees that you will end up being responsible for and footing the bill. Read the fine print before signing anything and know whom you are dealing with.
# 3: Home equity, home collateral type loans are also being exploited right now in the uncertain, downturn, foreclosure, over-extended mortgage market we are in. This leads to making some extremely gullible, desperate and an open target to be taken advantage of, by criminals that approach them with ‘creative’ short-term financing, that only digs the hole of debt deeper. This results in owners losing the equity or deeds to their homes, being taken advantage, especially true and sad of those facing the challenges and obstacles so common surrounding this financial situation. No real solutions, just more heartache, debt and ruined credit, stolen identity and worse.
#4: Then there are the companies offering bankruptcy credit repair services under the guise to get your information, financial details, to ruin your credit, steal, conduct crime and leave you to sort out the mess and aftermath. There are no quick and easy ways to clean or wipe out a bad credit report; delete your bankruptcy record or create a new identity using a TIN or business tax number for example. These are all fraudulent practices. Remember, if an offer sounds too good to be true, in all likelihood it is or will prove to be down the line.
#5: Offering solutions that are downright criminal, but does not sound that bad. Getting a fake identity, effectively concealing any/your bankruptcy is against the law. It is a crime for which you can be prosecuted. Getting an Employer Identification Number (EIN) that you will use in your credit application instead of your social security number actually proposes fraudulent intent, which the dress up as a great way to get your life and finances, debt, credit rating back on par – they forget to mention that you might go to jail in the process (as this is a crime)
#6: Bankruptcy foreclosure fraud scams, taking advantage of yet another loophole in the system identified as many as five different kinds and rings of bankruptcy fore-closer type scams, in the L.A. area. This is but one and a recent example of how opportunistic these types of practices can be. There are trends in the market to file for bankruptcy to delay or defraud creditors, home lenders, without the clear intention and purpose to actually see it through and adhere to the requirements for obtaining a bankruptcy discharge or completing a repayment plan.
#7: Other scams to look out for are ways others get you to part with the little that you do have, pay off creditors that do not matter (taking the money, never paying your bills). NEVER pay anyone upfront money, or funds in advance. Do not give out any personal or financial information with which you do not feel 100% confident and comfortable.
There are exploiters and abusers of the processes too, both debtors and creditors trying to obtain more than they are entitled to under the Bankruptcy Code. Do not get roped into this by so-called professionals professing and advocating maximizing the retention of assets in bankruptcy, conceal earlier crimes, maximize profit, while leaving town with your riches and precious little recourse that you had left, taking with them means, opportunity, reputation and hope.
Article Source: http://EzineArticles.com/?expert=Alexander_Wennstrom
Bankruptcy law requires a fair amount of scrutiny, scruples and wise discernment, especially during the recovery phases, when there are many unscrupulous elements and exploiters out to make a quick buck, off the misfortunes, desperation and angst of those who have faltered, fallen and could not successfully stave off or avoid bankruptcy. To them any straw or glimmer of hope seems worth embracing, even if it means taking a risk, against all odds, believing in something so ludicrous that someone in different circumstances might just see right through it, without any difficulty, but they do, can not or do not want to, do not care or have no choice and are taken advantage of, lied to, stolen from and left devastated with and by yet another setback.
Utilizing the specialty services on offer in the realms and arena of the big league bankruptcy attorney California talent-pool or bankruptcy Los Angeles specialist practitioners, might cost you some disbursements and fees down the line, when assets are liquidated, bills settled for quality and comprehensive bankruptcy services rendered and delivered. However, it will be totally worth it to protect you against some of the scams, fraudulent practices and outright misleading out there.
Do not be merely one more or another statistic, be taken advantage of, sign anything until you know and verify whom you are dealing with, what is at stake, check them with the better business bureau. If you have to and retain a qualified, licensed and experienced attorney bankruptcy law expert and insider, to handle all aspects of your filing, case and recovery, do so. You will not regret it.
Home equity loan bankruptcy candidates and prospects are especially vulnerable, as they are hooked into signing away their most prized possession and asset, their home!
Many online, fly-by-night, fronts and criminal rings tap into this ‘hidden’ market to take advantage of exploiting those desperate for a bankruptcy loan, look for financing for cars, homes and other ventures, in the post-filing bankruptcy phases and stages. (These can typically last up to 7-10 years on a credit report, affecting access and credit ratings, scores negatively. They then step in, looking like the ‘heroes that save the day, at exorbitant rates and terms, getting people to sign away their life savings, pensions, equity rights and assets, from a position of powerless, hopeless, despair and desperation, turning out to be the would-be thieves, loan-sharks and criminal wolves in sheep’s-clothing that they really are, just out to make a quick buck and take what does not legally belong to them.
One of the most common bankruptcy form offenses and misleading out there, is the purchase of a falsified, fraudulent, inaccurate, or false credit score. This is actually breaking the law and a crime that you can be prosecuted for, so avoid this practice in its entirety.
If you are an unfortunate candidate for filing bankruptcy, or you have gone through the process, protect your interests and well-being, not falling victim to identity thieves, loan sharks and unscrupulous opportunistic lenders, who want to exploit your circumstances and unfortunate fate, turn of events and slow, painstaking recovery.
In the current realty markets, with all the foreclosures, some markets are especially vulnerable, think of the seniors in Florida bankruptcy processes, at risk to lose their homes and life savings. Those after hurricane season, natural disaster left with nothing but bad debt and no options, or those with simply too much credit card debt, who opt to get representation in the sunny state from a reputable Florida bankruptcy lawyer, to handle all aspects of it, only to find that they have been sold down the river, by someone posing to be what they are not.
There are lots of money to be made in the cadres and halls of after bankruptcy recovery type markets, especially now in this downturn type economy that we are facing.
#1: There are bankruptcy car loan schemes, after bankruptcy car loan financing at exorbitant rates, that promises the world, for an arm and a leg and then some, making the real market for car loan after bankruptcy more complex than it has to be, for those recovering from bankruptcy themselves, making debt relief seem even more unrealistic than ever.
#2: There are emails and spam that enter your mailbox, (spammers), enticing you to consolidate your bills into one monthly payment without borrowing; stopping all credit harassment, foreclosures, repossessions, tax levies and garnishments; or wipe out your debts. These are then offered through the means of declaring bankruptcy, without the candidate or prospect being told that’s what it is. It is a last resort, not a quick fix strategy for everyone. Take care and be cautioned to pay special attention to all the long-term negative impact on your creditworthiness of these types of steps, filings and processes. There might also even be attorney fees that you will end up being responsible for and footing the bill. Read the fine print before signing anything and know whom you are dealing with.
# 3: Home equity, home collateral type loans are also being exploited right now in the uncertain, downturn, foreclosure, over-extended mortgage market we are in. This leads to making some extremely gullible, desperate and an open target to be taken advantage of, by criminals that approach them with ‘creative’ short-term financing, that only digs the hole of debt deeper. This results in owners losing the equity or deeds to their homes, being taken advantage, especially true and sad of those facing the challenges and obstacles so common surrounding this financial situation. No real solutions, just more heartache, debt and ruined credit, stolen identity and worse.
#4: Then there are the companies offering bankruptcy credit repair services under the guise to get your information, financial details, to ruin your credit, steal, conduct crime and leave you to sort out the mess and aftermath. There are no quick and easy ways to clean or wipe out a bad credit report; delete your bankruptcy record or create a new identity using a TIN or business tax number for example. These are all fraudulent practices. Remember, if an offer sounds too good to be true, in all likelihood it is or will prove to be down the line.
#5: Offering solutions that are downright criminal, but does not sound that bad. Getting a fake identity, effectively concealing any/your bankruptcy is against the law. It is a crime for which you can be prosecuted. Getting an Employer Identification Number (EIN) that you will use in your credit application instead of your social security number actually proposes fraudulent intent, which the dress up as a great way to get your life and finances, debt, credit rating back on par – they forget to mention that you might go to jail in the process (as this is a crime)
#6: Bankruptcy foreclosure fraud scams, taking advantage of yet another loophole in the system identified as many as five different kinds and rings of bankruptcy fore-closer type scams, in the L.A. area. This is but one and a recent example of how opportunistic these types of practices can be. There are trends in the market to file for bankruptcy to delay or defraud creditors, home lenders, without the clear intention and purpose to actually see it through and adhere to the requirements for obtaining a bankruptcy discharge or completing a repayment plan.
#7: Other scams to look out for are ways others get you to part with the little that you do have, pay off creditors that do not matter (taking the money, never paying your bills). NEVER pay anyone upfront money, or funds in advance. Do not give out any personal or financial information with which you do not feel 100% confident and comfortable.
There are exploiters and abusers of the processes too, both debtors and creditors trying to obtain more than they are entitled to under the Bankruptcy Code. Do not get roped into this by so-called professionals professing and advocating maximizing the retention of assets in bankruptcy, conceal earlier crimes, maximize profit, while leaving town with your riches and precious little recourse that you had left, taking with them means, opportunity, reputation and hope.
Article Source: http://EzineArticles.com/?expert=Alexander_Wennstrom
Subscribe to:
Posts (Atom)