Real Bankruptcy

How To Get A New Loan After Bankruptcy?

Sat, 14 Oct 2006 20:38:49 -0800

Recreate Credit by Paying on Time To start recreating your credit, you need at least six months of uninterrupted bill payments. During this period you need to avoid missing payments, paying late, opening new bank accounts, closing existing ones, requesting credit cards or loans, having too many credit inquiries on your credit report, etc. Just pay your bills on time and reduce your debt exposure as much as possible without closing accounts or taking new debt. Slowly, your credit score will begin to rise and recover. Your credit history will start to show an uninterrupted pattern of timely payments that will aid you in this new task. Credit Cards Can Aid Your Credit Repair Once you can obtain a credit card, do so. A credit card will aid you in recovering your credit because all the payments are immediately recorded into your credit report as credit card issuers report to credit bureaus on a regular basis. Just make sure your payment behavior is impeccable. This implies paying always on time, never (absolutely never) missing a payment and paying your balance in full. Try as hard as possible to avoid paying only the minimum payment on your credit card as this creates a bad antecedent and risks your ability to repay if any unexpected situation reduces your available income. Personal Loans Can Also Boost Your Credit Score At this stage you might be able to successfully apply for a personal loan. Start with small loans as there are a lot more chances of getting approved this way. Also, request short repayment programs, this will not affect your credit score and you’ll improve your credit history as soon as the loan is repaid in full. After repayment you’ll be able to request loans for larger amounts and so on. The loan payments will also be recorded into your credit report, raising your credit score and improving your credit history. Though it may take a while, this procedure will eventually lead you again to having a good credit score and to recover your ability to get finance at more reasonable terms: You’ll get higher loan amounts, longer repayment programs and lower interest rates. A good credit score is just a few steps away!]]>

What Is Dismissed Bankruptcy?

Wed, 11 Oct 2006 23:40:17 -0800

An instance in which a judge has ruled against a consumer's petition for bankruptcy, sometimes at the consumer's request. Such cases are recorded in the public records section of the consumer's credit report, and the debts covered in the bankruptcy remain outstanding.

Four Ways To Get A Loan After Bankruptcy

Tue, 03 Oct 2006 15:36:55 -0800

Here Are 4 Ways On How To Get Approved For Loans After Bankruptcy 1. Whether you are getting a car loan, mortgage loan or personal loan, one major factor that will get you qualified is your present income. Financial institutions who offer loans after bankruptcy are more concerned about your present finances than your past credit problems. Lenders want to be certain - and you should too - that this time you can afford to make payments on a loan. So, if you have a steady and sufficient income, you have a good chance of securing loans after bankruptcy. 2. You will also have to prove how well you make payments. Again, lenders will not focus on your credit payment history ending in bankruptcy but rather on the payments that you have made since your filing. So, it is important if you have just recently filed bankruptcy to ensure that all succeeding payments to any existing financial obligations are met regularly and on time. Check with credit-reporting companies if your credit payments are being reported. 3. For car loans or mortgage loans after bankruptcy, another important consideration is the down payment. If you have enough funds to put down on a car or a house, then finding a lender will not be a problem at all. 4. Your credit rating is based on the information contained in your credit report so you would want to make sure that it is accurate. Get a copy of your credit report and check for errors.

How To Rebuild Credit After Bankruptcy

Tue, 03 Oct 2006 15:36:52 -0800

One of the major effects of bankruptcy is the damage to the person’s credit standing. Individuals who have gone through bankruptcy are more than eager to rebuild their credit by establishing new credit lines such as bankruptcy credit cards and loans. After bankruptcy, credit repair may be the first thing on your mind. While your eagerness and optimism are important as you start the process of bankruptcy credit repair, beware of those who will take advantage of people in your situation. After bankruptcy the options available to a person in terms of credit are few and not so flexible. That is why many recent bankrupts accept any bankruptcy credit cards that are offered to them without giving it a thought. The danger lies in the fact that there are many companies offering bankruptcy credit cards that are not really concerned about your financial well-being. When choosing bankruptcy credit cards, look at the fees you have to pay. If there are more than two fees required, you may want to pass. Remember, you do not know how much your credit limit is and you do not want to find out when you get your card that you already have a high balance and little available credit due to the fees. Try to find bankruptcy credit cards without application fees and with a reasonable annual fee. Other factors that you have to look at in bankruptcy credit cards are the interest rates and charges for late payments or for going over the credit limit. While the options may be limited after bankruptcy and you cannot expect to get the same deal as a person with a good credit score, you do not have to pay more than what is necessary. There are reputable financial institutions that are willing to help you restore your credit. Shop around, compare your options and be patient in your search. However, do not make the mistake of submitting your applications to all the credit card companies you are considering just to find out what their terms are. You can get information on the general terms of bankruptcy credit cards by simply inquiring with the different companies. Note that too many credit applications and credit checks will lower your credit score significantly. More over, before you apply for bankruptcy credit cards make sure that card payments will not be a strain on your finances. It would also be good to start with just one or two bankruptcy credit cards. Once you have been approved for a credit card, read the terms and conditions carefully and ensure that you understand them completely before accepting the card. Try to keep the credit balance low and manageable. Again, timely payments are essential. Remember, bankruptcy credit cards are great tools to re-establishing your credit if you are responsible in using them. There are no quick fixes when it comes to bankruptcy credit repair. Some may need the help of a professional. Most often, you can do it by yourself with simple yet effective steps such paying bills promptly. Either way bankruptcy credit repair requires time and a steady commitment on your part.

Things To Remember When You Choose Bankruptcy Lawyers

Tue, 03 Oct 2006 15:36:50 -0800

4 Things To Remember When Choosing Among Potential Bankruptcy Lawyers 1. Choose an experienced bankruptcy attorney. You need someone with considerable experience in bankruptcy proceedings who focus on practicing this type of law. An ideal bankruptcy lawyer would be someone who has handled more than a thousand cases and whose bulk of work is mostly bankruptcy cases. 2. Cost of lawyer’s fee. Bankruptcy lawyers charge clients either with a flat fee that covers all services or a base rate for standard services plus extra fees for any other additional work. Whatever payment option you choose be sure to know what exact services will be rendered for the fee. Compare fees of different lawyers. You want to choose a reasonable rate and not necessarily the cheapest one. 3. Choose a bankruptcy lawyer who is easy to speak with who will respond to you with respect. You have to be comfortable to ask the lawyer any question no matter how simple and a good lawyer should always be willing to answer them. 4. The better the information one can give to their lawyer, the better the lawyer’s advice would be – of course at a cost. Yet despite financial deficiency, it still is often best to consider at least consulting with a bankruptcy lawyer before filing. It’s important to learn the full details of the representation-agreement, draft-schedules, and court notices and communications about the bankruptcy case. A bankruptcy lawyer is just that someone who’s meant to help a person go through the bankruptcy’s legal procedures, deal with creditors, meet with the court systems, set up payment-plans, gather and liquidate assets, and fill out and file all necessary paperwork. He is the expert.]]>

Business Chapter 11 Bankruptcy

Tue, 03 Oct 2006 15:34:01 -0800

Profits of commercial or business enterprises, whether a partnership or corporation, may at some point, go under. In this case, a petition for bankruptcy may be filed voluntarily by the indebted enterprise, or it may be involuntarily petitioned and taken to court by the creditors. Hence, the Chapter 11 Bankruptcy is mostly used to answer the debt liabilities of the concerned businessmen. In the Chapter 11 Bankruptcy, also called, and officially Code-entitled Reorganization, the bankrupt commercial enterprise may still continue to operate his business in a desire that this may solve the indebtedness at the same time. Yet, this may be legally allowed only after the enterprise’s creditors and the court have approved to the business’ comprehensible plan to reorganize and repay the debts. Under the Chapter 11 Bankruptcy, the court-approved plan of reorganization may only be granted after the indebted business has presented his business reorganization plan within 120 days of filing the bankruptcy case. Included in this is the indebted’s written disclosure statement, a sufficient document containing information concerning the enterprise’s assets, liabilities, and business affairs, provided for his creditors so they may be able to evaluate the feasibility of the reorganization plan. The final court-confirmed draft of the reorganization may include reduction of the debts by repaying only a portion of its obligations and also while completely discharging other debts altogether. Under the Chapter 11 Bankruptcy, the indebted enterprise may also eliminate his other problematic contracts and leases, as well as recover his assets, and also rescale their business operations in order to return to its normal productivity. Upon the accomplishment of this bankruptcy petition for relief, the indebted business enterprise automatically assumes the identity of ‘debtor in possession’ referring to him as a debtor who keeps possession and control of all his commercial assets independently without the backing of an appointed case trustee while still undergoing the reorganization payment plan not exceeding 3-5 years. In most cases, the business and all its property will not be taken control over by a US court trustee unless the judge decides its necessary. The indebted enterprise will remain a ‘debtor in possession’ until his payment plan of reorganization is finally court-confirmed, and, it is only after the indebted’s bankruptcy case is dismissed that it is procedurally converted to a Chapter 7 bankruptcy, or remains a Chapter 11 bankruptcy case with an appointed trustee. Large businesses often use this type of business bankruptcy, wherein the debtor is allowed to keep his assets and continue the operation of the business as supervised by the court. Chapter 11 offers a lot of flexibility to a business who is considering business bankruptcy but its complexity makes it an expensive option.

Retirees May Not Need Bankruptcy

Tue, 03 Oct 2006 15:34:01 -0800

An increasing number of retired people are finding themselves faced with more debt than they can handle, and are faced with a decision: is bankruptcy a solution to their financial problems? Many people find that when they retire their income decreases and they find themselves using credit cards and bank loans to pay their monthly expenses. On a fixed income it is difficult to make the payments on their debts, and then they find that they are getting calls from collection agents and bill collectors. It is very stressful, and they don't know what to do. When retired or elderly people are faced with debt problems, they have a number of options. First, they could try to repay the debts on their own. It may be possible to cut expenses to free up cash to service the debts. It may be possible to sell assets they no longer require, such as a car they no longer drive, or a house that is larger than they need. Second, they could ask family members for help. This is a good option, but it is often embarrassing to go to your children to ask them for help. Third, they could try to get a debt consolidation loan to consolidate their debts into one monthly payment. This is usually difficult, because on a fixed income it is difficult to make the payments. Fourth, they could try a debt management plan through a not for profit credit counselor who will negotiate a repayment plan. Again, it is difficult to make large monthly payments on a fixed income. The next option for residents of Canada would be to try a consumer proposal, or Americans could try a Chapter 13 Wage Earner Plan. This provides protection from your creditors, but also involves potentially difficult monthly payments. The next option is personal bankruptcy. A bankruptcy eliminates the debts and provides protection from the creditors, but also carries various obligations, including payments as part of the bankruptcy process. The final option is to do nothing. One of the main reasons for filing bankruptcy is to prevent your creditors from garnisheeing your wages or seizing assets. If you are retired and receiving pension income, you have no wages that can be seized, and if you don't own a fancy house or car, you may not have any assets that can be seized. In other words, if you have nothing that needs protecting, you may not need bankruptcy protection. You could open a new bank account at a new bank (to prevent your bank from helping themselves to unauthorized payments) and you could get a new, unlisted phone number (to prevent those annoying calls from collection agents). Doing nothing is a stressful option, but for a lot of people it is the correct and least costly option. Before deciding on any of these options you should consult a bankruptcy trustee, bankruptcy attorney, or other trusted financial advisor to review your options and determine which option is correct for you.

A Brief Introduction To Ohio Bankruptcy Laws

Tue, 03 Oct 2006 15:14:00 -0800

Bankruptcy laws are designed to give debtors a fresh financial start. Ohio, like most other states, has its own bankruptcy laws. Ohio bankruptcy laws are specifically designed for Ohio citizens. The law primarily includes the federal statutory law contained in Title 11 of the United States Code. However, bankruptcy cases in Ohio follow the state's bankruptcy laws, not federal bankruptcy laws. The two courts in Ohio engaged in bankruptcy cases are federal bankruptcy courts that follow Ohio law. They are Ohio Northern Bankruptcy Court and Ohio Southern Bankruptcy Court. Ohio bankruptcy law forms can be downloaded or accessed directly from a form provider. The form to be selected depends on whether the debtor files a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. Exemptions based on Ohio bankruptcy laws help protect exempted properties from creditors. Properties exempted by Ohio bankruptcy laws include a residence up to $5,000, one automobile of up to $1,000, cash up to $400, a cooking range and refrigerator totaling up to $600, personal injury awards up to $5,000, death benefits up to $5,000, household goods and furniture for $1,500, jewelry up to $3,500, tools of trade up to $750, wild card and personal properties up to $400, as well as all pension and education plans. Ohio bankruptcy laws also allow exemptions on health aids, alimony and child support aids, property of business partnerships, ERISA-qualified benefits, retirement benefits, firefighters' and police officers' death benefits, group life insurance policy benefits, and seal and office registers. The new Ohio bankruptcy law that took effect April 20, 2005, states that the value of the state homestead exemption is reduced by any addition to the value by disposition of non-exempt property during the ten years prior to the bankruptcy filing. Federal supplemental exemptions can be used in conjunction with Ohio exemptions. If one is not a permanent citizen of Ohio or has changed states frequently in the course of the past five years, one does not follow Ohio bankruptcy laws. Instead, the law of the state where one spent most of these years becomes operational.

A Brief Introduction To Hawaii Bankruptcy Laws

Tue, 03 Oct 2006 15:14:00 -0800

The declaration of bankruptcy allows debtors to solve significant financial debts after their non-exempt assets are distributed. Bankruptcy in the United States falls under Federal jurisdiction by the United States Constitution (Article 1, Section 8). However, bankruptcy is implemented as statute law, and relevant statutes are incorporated within Bankruptcy Code of Title 11 of the United States Code. At present, two forms of filing bankruptcy are available to individuals: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is a liquidation of assets, while Chapter 13 involves a reorganization by which the debtor creates a three- to five-year payment plan. Although bankruptcy cases are filed in the United States Bankruptcy Court, they are often highly dependent upon state laws. Hawaii is one of the thirteen states in the U.S. that offers a choice between federal and state bankruptcy laws. Hawaii bankruptcy laws provide exemptions that save a part of the properties from bankruptcy. Details of the exempted property are provided in the Hawaii bankruptcy chart. When bankruptcy is filed in Hawaii, an individual gets federal exemption in addition to Hawaii exemptions. According to Hawaii bankruptcy laws, an exemption limit applies to any equity in property secured by loans. Properties included in the Hawaii exemption chart are homestead (up to $30,000 for senior citizens and $20,000 for others), all insurances, property of business partnerships, pensions, personal property such as appliances, books, burial plots, clothes, jewelry to $1,000, and motor vehicles to $2,575, public benefits, tools of trade, and wages to minimum of 80%. No wildcard exemptions are given in Hawaii. In Hawaii bankruptcy law, Chapter 7 filing has advantages such as a complete fresh start, immediate protection, lack of a minimum limit on the debt, and quick discharge of the case. The advantages of a Hawaii Chapter 13 payment plan are that it enables a person to keep his property, has more dischargeable debts, gives more payment time, and separates creditors by class. Major changes in the new act effective October 17, 2005, include a means test, proof of income, state exemptions, counseling, and child support. Declaring bankruptcy is an important decision and quite complicated in its implementation. Hiring an attorney with experience in the field concerned is generally recommended.

A Brief Introduction To Florida Bankruptcy Laws

Tue, 03 Oct 2006 15:14:00 -0800

Bankruptcy law is the area of federal law that deals with the handling of bankrupt persons or businesses. Florida bankruptcy laws explain the federal bankruptcy process and common issues pertaining to residents of Florida. According to Florida bankruptcy law, a permanent resident of Florida can file bankruptcy in a Florida bankruptcy court. Florida has three bankruptcy courts, one in every bankruptcy district. They are Florida middle bankruptcy court, Florida northern bankruptcy court, and Florida southern bankruptcy court. All counties in Florida come under one of these bankruptcy courts. Bankruptcy has to be filed in the district of residence. Most bankruptcy claims are personal claims that come under Chapter 7 and 13 of the federal bankruptcy law. Chapter 7 is also named liquidation or straight bankruptcy. Chapter 13 bankruptcy is known as a wage-earner plan. When a Chapter 7 or Chapter 13 bankruptcy is filed, a trustee takes all the non-exempt property and sells it for the benefit of the creditors. But exempted property cannot be taken. Florida bankruptcy laws make determinations regarding non-exempt and exempt property. If Florida bankruptcy laws render a person ineligible for any exemption, he is allowed to choose federal exemptions. Florida bankruptcy laws deviate from the federal bankruptcy law mainly with regard to exempted property. Properties that can be exempted are included in the Florida bankruptcy exemptions chart. One can exempt any property that falls into any of the categories in the chart, up to the dollar amount listed. Florida bankruptcy laws allow liberal bankruptcy exemptions. Homestead (160 acres outside a municipality and ½ acre within a municipality), insurance, motor vehicle ($1,000), personal properties ($1,000), a portion of wages, life insurance policies, unemployment compensation benefits, disability benefits, pension and retirement funds, education funds, and health aid interest are among those exempted. The new Florida bankruptcy law, effective from October 17, 2005, makes filing bankruptcy cases more complicated. It incorporates impediments to filing bankruptcy, new court rules, new forms, and additional work for debtors and attorneys. According to the new Florida bankruptcy law, the Florida exemption law is applicable to your bankruptcy only if you have resided for two years in Florida, immediately prior to the filing date. If not, in order to get exemption, most of the 180 days prior to those two years should be spent in Florida. Bankruptcy may be the only solution for extreme financial hardship. At the end of the bankruptcy proceedings, the court discharges the borrower from the debts. The bankrupt person can start all over again with a clean financial slate, but a record of bankruptcy will remain on his credit profile for up to ten years.

A Brief Introduction To California Bankruptcy Laws

Tue, 03 Oct 2006 15:14:00 -0800

California bankruptcy laws allow the use of federal supplemental exemption in conjunction with California exemptions. These laws are derived from federal bankruptcy laws, from Title 11 of the United States Code. The state of California is divided into four bankruptcy districts, each with a bankruptcy court named after the district. They are California Eastern bankruptcy court, California Northern bankruptcy court, California Southern bankruptcy court, and California Central bankruptcy court. California bankruptcy laws give the option to pay secured loans, allowing the property to be repossessed or purchased at its current fair market value. Exemptions are shown in the California bankruptcy exemptions chart. California bankruptcy laws allow different sets of exemptions, mainly System 1 and System 2. One has the right to choose a suitable system. In System 1, the exemptions available are homestead (to $50,000 if single and not disabled, to $75,000 for families, and to $125,000 for senior citizens), personal properties (bank deposits to $2,000, building materials to $2,000, burial plots, appliances, furnishings, clothing and food, health aids, jewelry and heirlooms to $5,000, motor vehicles to $1,900, and personal injury and wrongful death claims), insurances of all kind, pensions, benefits (workers' compensation, health aid, and unemployment benefits), tools of trade (tools, implements, materials, instruments, uniforms, books, furnishings, equipment, vessel and motor vehicle to $5,000), and wages to a minimum of 75%. System 2 differs from System 1 in the following exemptions: homestead to $17,425 for all categories; jewelry to $1,150; motor vehicle to $2,775; personal benefits to $17,425; tools for work to $1,750; pension benefits only for ERISA-qualified benefits; no wage exemption; and wild card exemption to $925. The new California bankruptcy law that has taken effect from October 17, 2005, states that if you want to take advantage of California bankruptcy exemptions, you must be a permanent resident of the state of California for the two-year period prior to filing bankruptcy. Otherwise, you must spend most of the 180 days prior to these two years in the state of California.

How To Find A Bankruptcy Attorney

Tue, 03 Oct 2006 15:14:00 -0800

A bankruptcy attorney will: * Educate you on bankruptcy laws, your rights and responsibilities including your options and the consequences of bankruptcy. * Assess your financial situation and help you decide the best option to take. * Walk you through every step of bankruptcy filing and all the new regulations. * Represent you in court. * Deal with your creditors. Here are some important things to consider when interviewing a prospective bankruptcy attorney: • Fees – Ask if the bankruptcy attorney will charge you a fixed fee and be certain as to what services are covered in that fee. Find out if there are any additional fees that you have to pay. The average fee of a bankruptcy attorney is around $800 to $1000.00. The cost is just one of the things to consider but should never be the deciding factor in choosing a bankruptcy attorney. • Expertise – Look for someone who is experienced in bankruptcy cases and is who is up to date and familiar with all bankruptcy procedures. Find out how long the bankruptcy attorney has been in practice and how many cases similar to yours has he handled. • Service – Will the bankruptcy attorney assist you in every step of the process? Will he go with you at court meetings? Will you be working with him mostly or with a legal assistant? • Communication - In choosing a bankruptcy attorney, go with someone you can speak to with ease. Communication is very critical so you have to be comfortable in asking your bankruptcy attorney questions. Study how he responds to you and if he makes an effort to make sure you understand everything. Bankruptcy laws differ in each state so be sure to find a qualified bankruptcy attorney in your area. Once you have made your selection, be sure that all agreements are in writing. Read all documents carefully. Be honest with your lawyer and do not withhold any information that is relevant to your case. Be involved. It is your case and your life. Your bankruptcy attorney is there to assist you but you should play the central role.

How To Get A Credit Card After Bankruptcy?

Tue, 03 Oct 2006 15:11:54 -0800

A credit card after bankruptcy? It is possible! You may thinking that obtaining any type of credit card after having filed a Chapter 7 or 13 bankruptcy is an extremely bad idea. However, they can help in reestablishing your credit reputation and history, as well as being quite easy to get. Once you get the credit card after bankruptcy, it is extremely important that you always make the payment on time, as well as continually pay the balance. Doing so will help you in opening up other roads such as home loans, personal loans, or car loans. However, it is important to take extreme care when you apply for a credit card after bankruptcy. Avoid jumping at each credit card offered by any company. They may offer the credit cards to you; however, they will come with low spending limits and high interest rates, when compared to those who have not filed for bankruptcy.

Personal Loans After Bankruptcy

Tue, 03 Oct 2006 15:11:54 -0800

When it comes to bankruptcy, there are some repercussions, and one of them is that it can remain on your credit report for a maximum of ten years. Not long ago, it was extremely hard to obtain a personal loan after you have filed for bankruptcy. However, now it is not so hard and many people advertise specializing in bankruptcy personal loans, specifically for those who are working to repair their credit. However, you will want to be sure you are not adding to your financial detriment when applying for credit cards and bankruptcy personal loans. The thing to keep in mind, after you have filed for bankruptcy, is that it will likely be very hard to comes across and obtain decent credit cards and personal loans. What this means is that personal loans and credit cards that are offered by lenders that are unknown should be investigated thoroughly. You will want to find out if there is a catch, how high the interest rates are, and why they are so willing to extend credit to a person who has just filed bankruptcy. The key is to avoid making your financial situation worse. Lenders who are of high quality and reputation generally wait to extend credit for two years on bankruptcy personal loans. They will want to ensure that you are trying to improve your credit history and your actions since you filed bankruptcy.

How to Refinance Your Mortgage After Bankruptcy?

Tue, 03 Oct 2006 14:56:35 -0800

There are lenders in the market willing to refinance home loans for people who have gone through a bankruptcy. However, there are many things you need to know before jumping in to the refinance loan market. Otherwise, you may end up in a worse credit situation than you started. You need to be very careful when it comes to timing. It is highly improbable that you’ll get approved for a refinance home loan unless at least six months since your bankruptcy has been dismissed have passed. There is no way round this waiting period and you should be very aware of this because applying for a loan and getting declined will affect your credit negatively. Even if the lender doesn’t report the decline to credit agencies the sole credit report pull will affect your credit score negatively.

Cost of Bankruptcy: The Bankruptcy Petition

Tue, 03 Oct 2006 00:43:19 -0800