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Advice On How To File For Bankruptcy

Christine — Wed, 30 Apr 2008 02:14:56 +0000

When people ask me how to file for bankruptcy the first thing I always tell them is to avoid bankruptcy at all costs. To many people bankruptcy seems like such an easy way out but that is a very short term view of the process. Bankruptcy my relieve some of the debt you are trying to deal with but there is a tremendous cost for it in your future that can haunt you for many years to come. Do whatever you can to avoid bankruptcy. Get a second job. Get a third job. Do whatever you can but avoid bankruptcy at all costs. But if you honestly cannot stop spending on credit and have gotten yourself way in over your head then you will probably need to know how to file for bankruptcy.

Before you get to a lawyer start listing out everything you own and when I say everything I mean everything. Make a comprehensive list of all of your possessions including make, model, serial number, and if you have the original receipt then all the better. Learning how to file for bankruptcy is learning how to keep meticulous records and after you learn how to file for bankruptcy you will never lose so much as a McDonald’s receipt ever again. Also get together all of your major bills of sale like your home and your cars. You will lose your home and your newer cars and anything else you have of value so get ready for that.

Lawyers And What Not To Do

After you have compiled your list then get yourself a lawyer. You want to compile the list first because the lawyer is going to need that and you might as well get it done before you see the lawyer. Talk to your lawyer about options and ask them how to file for bankruptcy in terms of the forms you will need to fill out and the procedures you will need to follow. Once you get your bankruptcy through the court you will be monitored by the court so get ready for that as well.

One of the biggest pieces of advice I give when people ask how to file for bankruptcy is do not hide anything from the courts. If you have expensive cars that you think you can sell to a friend cheap and get to keep them you will get caught. The biggest thing to remember in how to file for bankruptcy is that the more up front you are with the court the more they will work with you. If you hide anything from the bankruptcy court you will regret it.

Home Equity Loan Bankruptcy: Finding a Lender

Christine — Tue, 29 Apr 2008 02:10:38 +0000

When it comes to home equity loan bankruptcy, one of the first and most important things you are going to have to do here is find yourself a lender. Home equity loan bankruptcy is a great option, if you find the right lender.

After a recent bankruptcy, your loan options are going to be very limited but if you own a home then you may be approved for a home equity loan bankruptcy. This can help you out a lot, especially if you need quick cash for wedding expenses, a birthday, or sending a child to college for instance.

Finding a Lender

When it comes to finding a lender for this home equity loan bankruptcy, the Internet is going to be one of your best resources. Remember that getting a low rate on a home equity loan after bankruptcy is more likely than not going to be a little difficult. After all it is hard to get any lender to loan you money after bankruptcy, especially in the first few months after you filed.

Keep in mind the fact that even if you find a lender that is offering you a seemingly unbelievable rate, you should never make any rash decisions without continuing to check out what else is out there. You really never know what else there is to choose from unless you look, and you may just end up finding an even better offer.

You should obtain offers from various different mortgage lenders and then compare each offer. You want to consider the terms, interest rate, and monthly payments of each so that you can use this to determine which is going to be the best option for you.

Benefits

There are many benefits you may receive as a result of getting a home equity loan bankruptcy. For one, these loans are perfect for debt consolidation. They are also great if you need money fast and they usually come with lower interest rates than most other types of loans as well.

Bankruptcy can be a difficult thing for anyone to deal with, but the important thing is to remember that there are things you can do to rebuild your credit after you have declared bankruptcy and so you should not feel as though things are hopeless. Bankruptcy will definitely have a negative effect on your credit rating and life in general but it does not have to be the end all.

What Is The Federal Bankruptcy Court?

Christine — Sun, 27 Apr 2008 02:06:26 +0000

When you file a bankruptcy case to be considered you file it with the federal bankruptcy court. Even though the state can have laws that affect bankruptcy all bankruptcy cases are handled by the federal bankruptcy court and the judges in the federal bankruptcy court make the final decisions on bankruptcy cases. Those decisions can be appealed to either the district court or the bankruptcy appellate court but in the case of a the federal bankruptcy court there is no jury and the decisions of the judge are final.

The federal bankruptcy court is a section of the federal court system and they are directly attached to the United States District Court system. The federal bankruptcy court is a court under the district court and the district court has jurisdiction over the bankruptcy court. So of the district court decided that they want to hear a bankruptcy case instead of referring it to the federal bankruptcy court then they have that power. However most of the 94 districts in the United States have standing orders that all bankruptcy cases must be referred to the federal bankruptcy court. While the district court leaves their options open a huge majority of the bankruptcy cases heard in the United States federal court system are heard by and ruled in a federal bankruptcy court within the district.

Here Comes The Judge

The judges in the federal bankruptcy court are appointed by the court of appeals for the circuit in which the district applies. The terms last for 14 years and the bankruptcy judges together all make up a single unit within the United States district court for which they are assigned. There is no such thing as a state bankruptcy judge as all bankruptcy matters are filed as federal events and the judges that hear the bankruptcy cases are all federally appointed judges.

In some cases the state laws do apply to a bankruptcy case. When a lien against a property is in question that it is a state law that governs something like that. When the decisions are being made as to what property is not to be part of a bankruptcy and exposed to creditors then that is a state law as well. Even though a bankruptcy decision is a federal court decision do not forget that some state laws apply as well and many of those state laws are not the same from state to state so doing proper research will help you prepare for bankruptcy in your particular state.

What You Should Know About Employment After Bankruptcy

Christine — Thu, 24 Apr 2008 02:05:12 +0000

Things have changed a lot over the years and while the government continues to try and keep up with our changing society to make things fair for everyone there are still practices that go on every day that seem unfair, and probably are unfair, but they are still used widely in our world today. One of the more daunting things you can face when your financial world has been turned upside down is employment after bankruptcy. It used to be that employment after bankruptcy was not too big of a deal because employers sometimes did not ask and if they did ask, and you were feeling adventurous, then you could deny your bankruptcy. Of course lying on the application usually gets you fired and if they find out then you are gone. But today employment after bankruptcy is a lot more complicated because up to 70% of employers now use a complete background check of a potential employee as early as the first interview. In those background checks is a credit check and that is where it can get ugly.

Here is where the game of employment after bankruptcy gets a little confusing and potentially frustrating. An employer can deny you a job, or release you from a job, if they find that your credit report is not up to their liking. Employers today directly associate a credit report with a person’s reliability and while this may not seem totally fair it does make a lot of sense. However an employer cannot deny you employment, or terminate you from employment, because of a bankruptcy. You would think that this change in the law would help in employment after bankruptcy but most people that have gone bankrupt have a pretty bad credit report so if an employer really doesn’t want you then they can point to your credit report as the reason and not your bankruptcy. Your only saving grace is if the bankruptcy is the only bad thing on your credit and you can prove that. Even then an employer can point to any other of a number of reasons for denying you employment.

When It Is Really Hopeless

In some cases employment after bankruptcy in certain fields of work is probably just not going to happen. Government work where a clearance is required is not going to happen, a job in the gambling industry is not going to happen, and more than likely that banking job won’t get you a call back either. Even though an employer cannot deny you employment after bankruptcy based on the bankruptcy they can still point to other factors to deny you employment.

If you go into an interview for employment after bankruptcy and you know they are going to look up your credit then probably the best thing to do is to try and head it off at the pass and talk about it right up front. Usually if a company asks for you social security number and then has you sign a release then they are checking your credit. In many case honesty is always the best policy.

Some Tips On Credit Repair After Bankruptcy

Christine — Tue, 22 Apr 2008 02:04:18 +0000

Bankruptcy is not the end of the world. Depending on the type of bankruptcy you went through you can get back on your financial feet within a couple of years but it takes hard work and dedication to bettering yourself. Credit repair after bankruptcy takes a long time and requires you to make only the best decisions you can so you need to be smart and follow this little guide to credit repair after bankruptcy.

A bankruptcy will follow you around for quite a while. If you took the high road and used a Chapter 11 then it could be on your credit report for 10 years or more. If you used a Chapter 7 then it could fall off your report sooner depending on how long it takes to satisfy the creditors. But credit repair after bankruptcy in either case is not impossible, you just have to learn to live within your means which can be tough because living outside your means is what got you to needing credit repair after bankruptcy in the first place. But there are things you can do to help with credit repair after bankruptcy.

What To Do

The first thing is to pay your bills. Now more than ever utility bills and all sorts of bills you would never expect are tied to your credit score and if you want to start credit repair after bankruptcy off right then the first thing you want to do is to just start paying your bills. Once again none of these are quick fixes because there are no quick fixes when it comes to credit repair after bankruptcy but this is one thing you can do that is simple that will help you out a lot.

You need to live within your means as well. No more credit cards, with one exception you will see below, and no more department store cards. Chances are you will not be able to get these cards for a while anyways but any offers for these cards are invitations to trouble. Take the next couple of years to get used to living within your means before you start looking at real credit again.

Finally you are going to want to get a secured credit card. Everyone needs a credit card of some sort and a secured card is one where you determine the balance by depositing money into the card. It is not a true credit card but as long as it has the Visa or Mastercard logo on it, and you use it within the rules, it will help you with credit repair after bankruptcy.

Some Useful Information On Business Bankruptcy

Christine — Sun, 20 Apr 2008 02:02:10 +0000

When a business goes bankrupt then lives are affected and some lives can be ruined. If the business was not incorporated then the bankruptcy affects the personal assets of the owner as well as the lives of the people that worked for the company that no longer have a job. A business bankruptcy is a pretty traumatic event and it can usually come in two different types. Most companies that experience a business bankruptcy do so through a Chapter 11 and a Chapter 7. If you hear that a business bankruptcy is a Chapter 11 then keep your chin up as there is still some hope. If a business bankruptcy is a Chapter 7 then you should probably pack your desk and get your resume together because it is pretty much over.

Chapter 11

Most people that experience a business bankruptcy will try a Chapter 11 before they try anything more severe. A Chapter 11 business bankruptcy is a long and drawn out process that first looks at the assets of the company and the income the company is generating. The court comes up with a plan to use the company’s assets and income to begin paying back creditors and restructures the company to assist the company in paying back the debt it owes. With the court on its side the company can bypass certain payment rules and the creditors must agree to work the company in some way if they are to get any of their money back. The creditors are usually asked to make concessions that allow the company to pay back its debt but at a greatly reduced value.

The company and the court then agree on a plan that will allow the company to still exist in its day to day operations but under the supervision of the court. The company will attempt to create a plan that will allow them to become profitable, pay off existing creditors, and being and maintain relationships with suppliers that are beneficial to both sides and profitable for the company. The court must approve everything the company does and will remain as a monitor for the company until all of the plan goals are met and the company can effectively emerge from Chapter 11 with a new start. A business bankruptcy done this way can work but it should be noted that many companies that emerge from Chapter 11 eventually wind up going out of business.

Chapter 7

A Chapter 7 business bankruptcy is a lights out bankruptcy where the court will discharge some of the company’s debt and then order all the assets of the company to be liquidated to satisfy as much of the remaining debt as it can. When a company files Chapter 7 then that is it and the company will sell its assets off and go out of business. Chapter 7 is not meant to help a company restructure its debt.

Dealing With Mortgage After Bankruptcy

Christine — Sat, 19 Apr 2008 02:15:46 +0000

Bankruptcy is the legal process in which a person declares their inability to pay debts. It is a condition of financial insolvency in which the person’s debts exceed their assets and they have no other way out of their debt but to file for bankruptcy. Bankruptcy should always be your very last option, after you have tried everything else with no success.

This is important to remember because bankruptcy is so damaging. It can stay on your credit for up to ten years after you file, and so generally you will not be able to get any loans or forms of credit during this time. Lenders will be especially hesitant to loan you money during the months immediately following your filing for bankruptcy.

Mortgage After Bankruptcy

Many people wonder about mortgage after bankruptcy and whether it is possible. Mortgage after bankruptcy actually is quite possible, as long as you go about it the right way. The first thing you will need to do is find a lender.

You are going to have to find a lender that is willing to loan you money for your mortgage even though you have filed for bankruptcy. Basically the longer it has been since you actually filed the better off you are going to be, because the lenders will see that you will have had some time to get your finances together and therefore will have more money to spare.

When it comes to finding a lender for mortgage after bankruptcy you are going to want to learn about the different options you have available, consider the necessary factors such as interest rates and any requirements they may be requesting, and use this to make your decision.

If you have just recently filed for bankruptcy then you are generally just going to have to apply to all the companies and see which ones are even willing to consider you.

Mortgage after bankruptcy is possible but there are a few things you are going to want to remember here. One of the best things you can do is rebuild and repair your credit as soon as possible after filing for bankruptcy. Getting a secured credit card is one good idea, and as long as you make your payments on time you will be regaining your credit this way.

You should also check frequently to make sure that your credit history is accurate. Often times the credit bureau will make mistakes and you want to be sure that this does not happen in your case. If you ever do notice any inaccuracies, you need to inform them as soon as possible and have it taken care of.

The Different Bankruptcy Rules

Christine — Fri, 18 Apr 2008 02:01:23 +0000

There are many different kinds of bankruptcy rules but in the case of the private individual there are two common types of bankruptcy. Private individuals can apply for Chapter 7 or Chapter 13 bankruptcy and since 2005 the bankruptcy rules have changed with the enactment of the federal Bankruptcy Abuse Prevention And Consumer Protection Act that President Bush signed into law in 2005. The bankruptcy rules will differ depending on the type of bankruptcy you choose but since the BAPCAP act was signed into law some of the bankruptcy rules have changed a little but not nearly as much as the law intended them to change.

A Chapter 7 bankruptcy is a liquidation type of bankruptcy where the debtor can file for bankruptcy and his non-exempt property is sold and the assets are used to pay back the creditors. But there are a bunch of bankruptcy rules in the Chapter 7 that make it almost worthless to try. Exempt property is clothes, older vehicles, and anything of small value like that. If you are exceedingly wealthy then you stand to lose a lot in a Chapter 7 but if you are an average American all you would lose is your home. Certain debts like tax liens, student loans, and child support and alimony payments would survive a Chapter 7. So you could file for Chapter 7 and lose almost nothing and still have a lot of your bills left to pay. Looks like the bankruptcy rules make Chapter 7 kind of pointless.

Next Chapter Please

The next common type of bankruptcy is Chapter 13 and this one is also full of bankruptcy rules that make it not a great thing at all. This is the one that sticks with you for at least 10 years because a Chapter 13 bankruptcy is simply a court monitored reorganization of your debts so that you are forced to pay your creditors through court order. A Chapter 13 means that you cannot rebuild your credit through secured credit cards unless the court says so and you will probably not get a loan for a long time to come.

However Chapter 13 does have some beneficial bankruptcy rules. If you file for Chapter 13 then your mortgage cannot be foreclosed on and must be reinstated after the case is resolved. Any co-signers you had for any loans are not required to repay the loan back as they agreed to do when they co-signed the loan. Make sure you understand the bankruptcy rules before you get involved in a bankruptcy.

Some Telling Bankruptcy Statistics

Christine — Tue, 15 Apr 2008 02:00:12 +0000

There are a lot of factors that go into any set of statistics and bankruptcy statistics are no different. The recent hard economic times would infer that bankruptcy statistics will show a rise in the number of filings from last year to this year and indeed this does seem to be the case with the bankruptcy statistics. In September of 2006 there were 96,442 Chapter 7 filing. Chapter 7 is the form of bankruptcy where the court liqudates your assets and uses the proceeds to pay the creditors that the court deems to be worthy of paying back. In September of 2007 that number skyrocketed to 132,008. There are a lot of factors that could have caused this but obviously the failing US economy, further deflated by the mortgage foreclosure rate rising sharply for the same period, is causing many people to seek refuge behind a Chapter 7 bankruptcy to try and get a fresh start in life years down the road.

However the news about bankruptcy statistics is not necessarily all bad and does indicate that people are attempting to hang in there with their finances. In 2006 the federal bankruptcy court reported a total of 1,112,542 business and non-business filings for the year ending in September. However the bankruptcy statistics show that for the same period that ended in September of 2007 there were a total of 801,269 business and non-business bankruptcy filings which is down by over 300,000 filings. It is hard to say why the bankruptcy statistics show such a sharp drop in filings but it is suspected that toughening laws regarding personal bankruptcy had a lot do with it as business filings were only off by 1,408 for the same period with that number being the drop from 2006 to 2007 which is definitely a sharp contrast to the personal bankruptcy statistics.

Breaking It Down Even Further

Looking closely at these numbers we can see that the drop was definitely affected by the sharp drop in Chapter 7 filings. In 2006 there were 833,147 Chapter 7 filings while for the same period ending in 2007 the Chapter 7 filings had plummeted to 484,162. Once again this sharp increase could be attributed to a number of factors including the law changes that have made filing for personal bankruptcy more difficult. Since Chapter 7 is the preferred filing for personal bankruptcy then this is a logical assumption to make. However this may not be the case as this is only based on the statistics and not an in depth analysis.

Looking at the bankruptcy statistics can make you think that bankruptcy is not what it used to be but it is conceivable with all of the failing mortgages in 2007 that we could see the 2008 bankruptcy number jump again.

It Is Possible To Obtain A Home Loan After Bankruptcy

Christine — Sun, 13 Apr 2008 02:11:42 +0000

Many people who have filed for bankruptcy have the opinion that they will have to wait until the action has been removed from their credit report before they can apply for credit. The reality is that many companies have no trouble issuing high risk, high interest credit to recently discharged bankrupt and obtaining a home loan after bankruptcy is a little harder, but it is possible. Typically, a few credit card companies are attracted to those who have been discharged from debt and while their cards carry a higher interest rate, people are willing to accept them to start rebuilding their credit rating.

Typically, following bankruptcy most lenders are shy about approving loans especially receiving a home loan after bankruptcy and rebuilding credit can be a time-consuming process. It may take years before all of the bad notations have been removed from a credit report, but once a bankruptcy has been discharged some creditors see it as a good thing, knowing it will be at least seven years before that person can file bankruptcy again.

By selecting one or two low limit credit cards and making prompt payments is the first step in being able to receive a home loan after bankruptcy. In fact, many lenders after a year or so of the individual rebuilding their credit and showing a desire to keep their financial nose clean can often receive car loans and loans for other purposes.

Unsecured Loans May Be At A Premium

Many lenders will help provide secured loans for those recently discharged from bankruptcy, knowing that if the person defaults on the note they can repossess the property and garnish wages to recoup their loan. However, getting a home loan after bankruptcy can be more difficult because most home loans will be for considerably longer than the seven-year period required before a person can file bankruptcy again.

However, in applying for several credit cards as well as other loans is actually detrimental to receiving a home loan after bankruptcy. Every time a person applies for credit and a report is requested, it places a notation on their credit report. The report does not show if the credit was approved or not and can lead some lenders to believe they have too much credit and will be a risk. Limiting the number of applications and only applying for loans that are likely to be approved is the best way to build up your credit before applying for a home loan after bankruptcy.