Debt Bill Consolidation Advice » Bankruptcy

Want to Obtain After Bankruptcy Loans?

Tom Webster — Tue, 24 Jan 2012 17:56:05 +0000

Filing bankruptcy may be a relief for those who really can’t pay their debts but the moment they realize it, they have already put themselves in a very dire situation. Other than a temporary escape, bankruptcy also means that you won’t be able to apply for loans. But there are still some companies offering after bankruptcy loans which can still save you from your problem.

Although after bankruptcy loans can help you solve your financial problem, that doesn’t mean it will be easy to get one. There are many things that you should consider first when applying for the loan. Certain requirements are also needed. So if you really want to get a better life using after bankruptcy loans, you should then follow these steps to make that come true.

Even if you file bankruptcy, that doesn’t mean you don’t have to pay your previous debts. You are still entitled to pay all those debts. You should first disclose all your debts if you want to apply for after bankruptcy loans. Another thing you should be aware of is the term that you’ll face when you apply for after bankruptcy loans. It will be very bad and the payment term will be very strict. Well, it is only natural considering that you filed bankruptcy not long ago.

You should also maintain a source of income that can regularly pay your loan. Remember that you’re not using the amount of the loan to make your credit standing better. What you’re using is the responsibility along with the loan. Keeping your payments always on time and making responsible charges will make your credit rating better. Establishing a good credit background is the key for a better future and after bankruptcy loans will help you in achieving it.

Remember that loans are not just about the loaned money but the responsibility accompanied in it. If you want to know more on how to pay off student loans faster, you should then log on to the website for more details.

Tips on How to Avail Loans for Self Employed Some people thought that applying for loans for self employed...

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Why you would File for Bankruptcy

Tom Webster — Thu, 06 Jan 2011 19:54:17 +0000

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Are you having some problems with debt and are now researching your options? If so, you may have come across the option to file for bankruptcy. Bankruptcy is a very big endeavor and is not for everyone with money problems. You have to be in an extreme situation, for the most part, and you have to be approved.

A person becomes bankrupt when they can no longer pay their creditors. If you have debt from credit cards, auto loans, personal loans, student loans, and other debts and you can’t afford your minimum payments, you would be required to file for bankruptcy. Your debt will either be discharged or you will have a payment plan set up to repay the debt that you can afford to make. Certain debts cannot be discharged, such as student loans.

There are two types of bankruptcy for individuals, chapter 7 and chapter 13. There are other chapters meant for businesses, farms, etc. Chapter 7 will allow your debts to be discharged. In other words, you won’t have to repay them. However, your assets will be liquidated and that money will be used to repay as much of your debt as possible. There are some assets that are exempt. For example, in most states, a certain amount of what you own as a home may be exempt. Also, assets that cost more to liquidate than their value would not be liquidated and can remain with the debtor.

Filing for bankruptcy is difficult and takes time. You will have to attend a meeting of creditors where your creditors ask you questions to ensure you are being honest about all your debts. You will have automatic stay once you have submitted your petition for bankruptcy which means creditors aren’t legally able to call you. Creditors have 60 days to appeal any decisions of discharge of the money owed to them. After those 60 days, your debts will be discharged. With chapter 13 bankruptcy, you will be required to make payments for 3 to 5 years after which the remainder of your debts will be discharged.

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Filing for Either Chapter 7 or Chapter 13 Bankruptcy

Tom Webster — Thu, 16 Dec 2010 13:51:00 +0000

: Image via Wikipedia

No one ever plans on having to file for bankruptcy, but sometimes bad things happen. People lose jobs or have unexpected sicknesses that put them into the hospital for a long time, wiping out bank accounts and assets in the process. In the United States, individuals filing for bankruptcy can file for either chapter 7 or chapter 13 bankruptcy protection. Choosing which one to file for is largely determined by the individual’s financial circumstances.

Under the United States Bankruptcy Code, there are several kinds of declaring bankruptcy that offer different protections. Individuals can file for either chapter 7 or chapter 13 protection. Chapter 7 bankruptcy is what most people think of when they hear the word “bankruptcy.” A person’s assets are liquidated by the bankruptcy courts with the proceeds of the sale going to the debtor’s creditors. Chapter 13 bankruptcy is slightly different. In chapter 13 bankruptcy, the debtor petitions the courts to set up a payment plan to pay off his or her bills. In a way, chapter 13 bankruptcy is a form of debt consolidation except that it offers protection from creditors. Chapter 7 and chapter 13 bankruptcy can eliminate most debts with a few exceptions. In most cases, student loans, alimony, child support, and past lawsuit judgments against the debtor are exempt from bankruptcy discharge.

Most people would prefer to file for chapter 7 bankruptcy since they do not have to pay back most of the debts, however, not everyone can qualify. In order to be eligible to file for chapter 7 bankruptcy protection, an individual must pass what the government calls the Chapter 7 means test. This test is a measure of a person’s ability to repay their debt obligations. According to the means test, individuals can file for chapter 7 bankruptcy if they make less than that of the median income of the state in which they claim residence. Individuals making greater than 166.67 dollars above the state median income are said to be in violation of the means test and do not qualify for chapter 7 bankruptcy. Instead, they will have to file for chapter 13, which is sometimes called a worker’s bankruptcy.

Filing for either bankruptcy protection will have a negative impact on an individual’s credit score for several years. A chapter 13 bankruptcy filing stays on a credit report for seven years, while a chapter 7 filing stays on the report for ten years. Having a bankruptcy on a credit report can make it difficult to obtain loans, get credit cards, find housing, or even be hired for a job. Although no one wants to file for bankruptcy, sometimes it is the best solution. Knowing whether to file for chapter 13 or chapter 7 bankruptcy can help individuals to plan their futures better, and get a fresh financial start when it is needed.

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Personal Bankruptcy Lawyer

Tom Webster — Mon, 30 Aug 2010 15:00:12 +0000

Anywhere you go in the world, you would notice that the economic slump is so bad that businesses are closing down and people end up jobless and broke. This is a reality that affects every person, whether you are the local store bagger or Bill Gates. In dire times such as these, bankruptcy looms just around the corner. With that said, the need for bankruptcy lawyer is also on the rise.
As an individual, you may have lapses when paying for your credit card statements or monthly rentals but that does not mean that you cannot get out of the slump at all. Banks will be hunting you down, asking you to pay for any debt that you have left hanging. But if your bank account is in the negative, what do you do? A personal bankruptcy lawyer might be able to help you in solving your problems at the fraction of the cost.
Whether it is a personal or business bankruptcy lawyer that you are looking for, the fact remains that you want to find the cheapest possible alternative. After all, you would not need a bankruptcy lawyer if you have the money, right?
It may be true that looking for a cheap lawyer is hard but it is also true that it is not impossible. One of the places you can go to in search for a cheap lawyer would be law schools. In most law schools, they have clinics wherein professionals, whether new or experiences, will give you practical advice and an estimate of how much you might need to spend. Because there are also cases wherein your case is placed before a class to analyze, you can even get cheaper rates or discounts that will help you save a lot on the total costs.
Debt is a reality in today’s bad economic times, but finding the right person to help you get out of it will save you time and money in the future when the clouds clear up once again.

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Bankruptcy and Student Loans

Tom Webster — Thu, 19 Aug 2010 16:43:04 +0000

More and more, payments for student loans are taking up a large percentage of many people’s income. If you’re one of those drowning in student loans, bankruptcy is likely not the way to eliminate them. In the majority of cases, student loans are protected against bankruptcy, allowing your creditors to come after you for student loans, even after bankruptcy has been filed.

The government gives a large number of low-interest student loans. Beneficiaries of these loans are given taxpayer dollars. Because every tax payer contributes to the loans, both state and local governments have created a series of laws which make it difficult for bankruptcy courts to discharge student loans. You must prove that continuing payment of the debt will impose an undue hardship on you and your dependants.

Undue hardship is not an easy thing to prove. Many times the bankruptcy court will be loathe to grant undue hardship. They understand that, although sometimes debt can become out of control, by eliminating much of the other debt (unpaid bills, for example), these student loans can often be repaid, preventing waste of what is often taxpayer dollars.

How can I prove undue hardship?

First, you need to find a good Minnesota bankruptcy lawyer. A good lawyer will be able to advise you on the ins and outs of bankruptcy law. Online articles are no substitute for a lawyer providing advice personalized for your situation. In every case, it is up to the bankruptcy court to decide if your student loan payments truly are an undue hardship. In most cases, you will need to show that you are physically unable to work and that you have very little chance of making a significant income in the future.

In order to even get your case heard, you must file a motion which is separate from your bankruptcy. This will allow you to plead your case before a judge, who will determine if you meet the criteria for undue hardship. Many people are not given a favorable ruling and are forced to continue payment for their student loans. If the majority of your debt is caused by student loans, you are better off not filing for bankruptcy. Minneapolis bankruptcy law does not look favorably upon those who mainly have loans used to further their education. There are alternatives to bankruptcy which would serve you better.

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Should You Claim Bankruptcy Without an Attorney?

Tom Webster — Thu, 29 Apr 2010 00:01:00 +0000

Each and every year thousands of people contemplate whether to claim bankruptcy in order to repair their troubled finances, yet many of these same people know nothing about the process itself. Filing for personal bankruptcy is a serious undertaking that can have lasting consequences on your credit and your valuable assets. Because of this, it makes sense to have a thorough understanding of what to expect before, during and after the process. While some people may feel comfortable forging ahead on their own, it’s often recommended that potential candidates seek the counsel of a qualified attorney, specifically an attorney that specializes in personal bankruptcy.

So then the question is should you hire an attorney or should you just proceed on your own? This is an interesting question, particularly since having an attorney is not legally mandated in order to file for bankruptcy. With that said, there are several reasons why an attorney may be a good idea –

•   Review of Your Personal Finances – because an attorney will have a trained eye when it comes to money matters, they will be able to help you assess your current financial situation. You may discover that there are some alternatives to bankruptcy that better align with your personal situation
•   Type of Bankruptcy – an attorney can help you choose between the two most common types of protection – Chapter 7 and Chapter 13. There are some very important reasons why you might choose one form over the other, and an attorney can help you make the right choice
•   See You Through the Process – a qualified attorney can help you determine how to claim bankruptcy, meaning that they will walk you through the process. Most attorneys will tell you what to expect during and after the process and can even help you to fill out claim forms prior to filing.

As you can see, there are many reasons why one would choose an attorney for their bankruptcy filing. Although the associated fees for an attorney can range from $1,000 to $3,000 per individual case, the peace of mind you gain may be worth the cost in the end.

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What is the Definition of Bankruptcy Fraud?

Tom Webster — Tue, 23 Mar 2010 20:35:06 +0000

Bankruptcy was established to assist those in seriously difficult financial circumstances, offering them the opportunity to start anew. However, some people try to manipulate the bankruptcy process by committing bankruptcy fraud. A crime, bankruptcy fraud is punishable by law. Offenders have committed a felony and may owe as much as $250,000 in addition to prison time. There are five types of bankruptcy fraud.

False Information

If a filer is intentionally dishonest when filling out bankruptcy forms, the filer is committing fraud. This is an attempt at misleading the courts. In some states, providing false information falls under perjury. (For more information on Minneapolis bankruptcy law and fraud, contact a Minneapolis bankruptcy attorney.)

Concealing Assets

This is the most frequently-occurring form of bankruptcy fraud. Nearly 70% of bankruptcy filings listed as fraudulent concern concealment of assets. If you file for bankruptcy but fail to provide information about all of your assets, you are committing fraud. Some people avoid listing assets because surplus assets may be sold to pay Bankruptcy creditors. This happens when the debtor simply does not list the assets or relinquishes assets to someone else. To ensure that all assets are properly listed on bankruptcy paperwork, have a Minneapolis bankruptcy lawyer review all documents.

Filing for Bankruptcy Multiple Times

It is considered fraud when a debtor files for bankruptcy in multiple states. Filers sometimes provide information such as false social security numbers on one or more forms. Often times, those committing this type of fraud also conceal assets on both bankruptcy petitions.

Petition Mills

When a debtor faces losing her home, she may fall victim to petition mills. These businesses target those facing eviction and claim to help, but instead of helping, obtain the debtor’s information and file a bankruptcy in the client’s name. This is done without the debtor’s knowledge. The petition mills deliberately extend the case and charge fees to the debtor, resulting in further loss and often homelessness.

Bribes

Bribing any official appointed by the court is illegal; this includes court-appointed bankruptcy trustees. When bankruptcy trustees are the target of bribes, it is considered bankruptcy fraud.

The bankruptcy system is meant to provide those in real trouble with a new start and a means of re-finding financial success. It depends somewhat on the faith of bankruptcy applicants. Unfortunately, some do manipulate this process, which is meant to help those in unfortunate circumstances. Paperwork costs, investigations and legal fees hurt everyone—including the American taxpayer.

To avoid complicating the process (even unintentionally), consider hiring a Minneapolis bankruptcy lawyer. A reputable lawyer can assist you in navigating this process and can help you provide thorough and accurate information when filing.

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Bankruptcy Versus Credit Consolidation

Tom Webster — Tue, 26 Jan 2010 22:52:23 +0000

Credit counseling can be a great way to help you deal with your debt before it gets to the point where you will need to declare that you are bankrupt. If you do need to continue to the point where you declare and start the process, you will need to speak with a bankruptcy trustee. Dealing with a bankruptcy trustee can help you deal with the ins and outs of the declaration procedure. It can also lead to alternatives that can help you avoid declaring bankruptcy but you need to start the process before they can be made available to you. Consumer proposals are one way that you can get back on your feet without filing for chapter 7 or 13.

With a consumer proposal, you meet with your creditors. You work with them in order to determine how much of your current debt they are willing to excuse if you continue to make regular payments. This is actually somewhat similar to the payments you would be making if you were bankrupt but they will often be higher.

The good news about a consumer proposal is that you can excuse a part of your debt but will avoid the mark on your credit history that bankruptcy will leave. If you want to get back on your feet sooner, you will probably prefer a consumer proposal. Of course, a trustee will take a look at both options and will be able to recommend the choice that is best for your particular situation.

You don’t need to think that declaring bankruptcy is the end of the world financially. However, it is a serious decision that can have long reaching impact on your life. Self help bankruptcy is not an advisable decision I would take to an attorney or a trustee that can make it easier for you to start working to a stronger future. Do not worry about getting credit cards after bankruptcy because within a couple of months you will be getting offers, trust me on this.

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