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Archive for March, 2007

One Step Closer to Bankruptcy

31 Mar

bankruptcy

One Step Closer to Bankruptcy

Tip! Your credit history will be damaged by bankruptcy; it will appear on your credit report for as long as 10 years.

I have written a couple articles so far about the downfall of GM and Ford, although I have mostly focused on GM. GM announced today that they are going to offer some 113,000 hourly employees a severance package in the six figure range to leave and waive their rights to their healthcare benefits.

If I were in the position of some of these workers I would have a difficult decision to make. You have to weigh the fact that you would possibly get $140,000 to walk away from GM and the healthcare benefits you have worked years to secure against the fact that GM may go out of business by the time you retire and you would have turned down the package and still not get the healthcare benefits.

I know, you think I am crazy because I say GM may go out of business, right? Most people do think I am crazy when I say that. I bet a lot of people never thought Enron would crumble either and on paper they were a strong company. GM is a failing company on paper. The article above states that GM announced last week a loss of $10.6 billion. They have been losing billions and billions for years. They are well over $300 billion in debt and they continue to struggle with labor issues, declining market share, and more. I would like to know how anyone thinks they can stay in business.

Tip! I’ll lose everything I have. This is the misconception that keeps people who really should file for bankruptcy from doing it, says Chris Viale, chief operating officer of Massachusetts-based Cambridge Credit Counselling Corp.

As I have said in previous articles, GM is known for their cars but they are actually just as involved in mortgages and other financial tools through GMAC. GMAC has done well for the past few years because of the recent housing boom but they will pay the price within a couple years, adding to their already worsening financial situation. A former co-worker of mine was an attorney and he did closings on the side to make extra money. He did them for GMAC. He said many of the loans he did closings for were usually for people in bad shape financially. A lot of them were ARM mortgages or interest only mortgages.

Tip! It is true when they say that the bankruptcy laws can be rather complex. One of the most common is Chapter 7, which discharges all financial debts.

What is going to happen is once the rates climb higher these people will end up not being able to make their mortgage payments because the payments will have increased too much do to the adjustable rates. GM is going to end up losing a lot of money on this side of their business as well.

Oldsmobile went out of business a couple years ago and there has been some speculation that another one of the GM brands will be going out of business as well. I have read some “experts” articles that feel Pontiac will be the next to go do to slipping sales. Chevy is obviously the staple of the company, Cadillac does pretty well from what I have read, Saturn is one of the more successful brands as well. Hummer is a niche market and they continue to develop that to market to more types of customers. Saab is a “foreign” car and most people probably do not even realize they are owned by GM so they will most likely make the cut. This leaves Pontiac. The sales on their highly marketed GTO were weak and with good reason. I don’t think you can bring back a legendary name like the GTO and make it nothing more than a glorified Cavalier/Grand Am. I have always stuck by my belief that bad management has brought GM to the position it is in and the GTO is the perfect example. They didn’t build a car that lived up to the name and yet they were trying to pre-sell the cars for $35,000 or more.

Tip! Get a copy of your credit report. Many times (most times) the credit accounts that are absolved with your bankruptcy are not removed from your credit report immediately.

GM should really be studied in MBA programs in management classes. It should be made the example of what can happen when you have an industry leading company for decades fall apart because of some bad decisions. It has got to send, or at least should send a message that regardless of how big a company gets you still need to stay on top of your game or you could risk going out of business as well.

Maybe GM will fix things and end up not going out of business. Maybe things aren’t as bad as they appear to be. If you are reading this and you are a manager be sure to take a close look at what you are doing and make sure it is the right thing to do. If you are just an interested reader keep watching the headlines over the coming months and look for more bad news from GM, I think it is coming.

Tip! Obtain a copy of your bankruptcy and discharge papers from your attorney or the courthouse. This may include a copy fee.

Scott Bianchi operates http://www.best-internet-bargains.com. He writes on a variety of topics. If you would like to be added to his distribution list for his new articles when they are published just send an email to articles@bestinternetbargains.com.

 
 
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Ways to Bounce Back from Bankruptcy

30 Mar

bankruptcy

Ways to Bounce Back from Bankruptcy

Tip! The final step in considering bankruptcy is to actually engage the services of an attorney. At this juncture, you attorney will prepare a bankruptcy petition on your behalf that will be filed in the bankruptcy court.

Credit is hard to come by if you have a bankruptcy on your record. You are guaranteed higher interest rates. You may even be targeted by unscrupulous lenders who believe that you are probably desperate and will agree to anything. Don’t despair; there are ways to re-establish your good credit. Make this your main goal.

First make a budget. Look at your income and your expenses. Decide what your priorities are for spending and saving your money. You have to learn to control your money, don’t let it control you.

Learn that cash is your best friend. Make a deal with yourself. You can only pay in cash. Once you run out of cash, that’s it until the next pay day.

Make sure that you pay every bill on time every time! This is one of the most important factors for repairing your credit report. Bounced checks, overdrafts and bank fees can show up on your report. Pay attention to what you spend and when you spend it.

Keep an eye on your credit report. You want to make sure that everything is reported accurately. You want to make sure that there aren’t any errors. You need to know what others are seeing when they look at your report. Only then do you know what to fix.

Tip! Everyone will know I’ve filed for bankruptcy. Unless you’re a prominent person or a major corporation and the filing is picked up by the media, the chances are very good that the only people who will know about a filing are your creditors.

You do need to get a credit card. This card should only be used to raise your credit rating. Only charge very little. And you must pay it off every month in full. This shows that you have changed your ways and can use and pay for credit wisely. You could try deducting your credit card charges directly from your checkbook register. When the bill comes in, you’ve already taken the money out of your account.

A line of credit through your bank can help you to reestablish your credit. Use a savings account to secure the loans and be responsible in your spending.

Don’t go out and buy a car. While you will find financing, the terms will make it crazy. Wait a little bit and you’ll do much better when your credit is looking better. You need to prove you are responsible first.

Long-term relationships will pay off. A steady income and a steady job really help. Don’t do a lot of credit card hopping, because it will adversely affect your credit rating. Having long-term credit shows that you can form a lasting business relationship.

If you are having trouble with a lender, just let them know the truth. Explain your situation. The lending business does have a human factor. Being able to say that you made a mistake and learned your lesson says a lot. People know that bad things happen to good people.

There are no quick fixes. If it sounds too good to be true, it is. Anyone who claims that they can fix your credit is lying. It takes hard work. You can do it, but you really have to be patient. In the long run, it’s worth it.

Tip! The first step in learning how to file for bankruptcy is to make a comprehensive list of all of your creditors and outstanding debts. When you are working to determine how to file for bankruptcy, you need to appreciate that if you to proceed with a bankruptcy case, you must be sure that all of your debts are disclosed and listed in a bankruptcy petition.

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!

 
 
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Posted in bankruptcy, general finance, guides

 

Bad Credit Unsecured Personal Loans

29 Mar

personal loans

Bad Credit Unsecured Personal Loans

Tip! Bad credit personal loans are exclusively designed for people who are denied the much-needed money just because they have a bad credit history. The loan amount that you can draw varies from lender to lender and your individual financial requirements.

Anybody can have a poor credit history, perhaps due to missed payments on a previous loan. If you have a bad credit history, you will find it difficult to secure another loan. However, these days, lenders have come to realize that having bad credit does not mean that the person is totally incapable to pay any loan. So, they have developed a wide range of bad credit unsecured personal loans.

Bad credit unsecured personal loans are loans given to people with a bad credit history. Even if you have bad credit, you can receive an unsecured personal loan to pay other debts, or perhaps to have your home renovated and pay other necessary expenses. Since a lot of people who have credit problems request these loans, interest rates become more competitive as well.

You may wonder how come these lenders allow you to secure a bad credit, unsecured, personal loan in spite of your bad credit history. Well, basically, they allow you to have a loan, but you are required to place some item or property in the lender’s trust as collateral. In an unsecured, personal loan, there is usually no need for collateral, but with bad credit -you must provide collateral so that it can be repossessed in case you fail to repay the loan.

Tip! Though, both secured and unsecured personal loans in UK are good option, but still there are some basic differences between them. Since, secured personal loans in UK are given against any collateral, hence the rate of interest on secured personal loans is comparatively low.

So, where can you find lenders who are willing to give you the loan? You can try some finance companies and lenders that are willing to take the risk. If not, you can go online and check for bad credit unsecured personal loan providers. Just be cautious and pick the one that offers the best terms because you do not want your collateral to be forfeited if you cannot abide by the terms.

Unsecured Personal Loans provides detailed information on Unsecured Personal Loans, Bad Credit Unsecured Personal Loans, UK Unsecured Personal Loans, High Risk Unsecured Personal Loans and more. Unsecured Personal Loans is affiliated with Bad Credit Unsecured Loans.

 
 
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Posted in bad credit, consumer loans, credit, guides

 

Unwrapping Bankruptcy

26 Mar

bankruptcy

Unwrapping Bankruptcy

Tip! Shop around. Most bankruptcy lawyers will at least offer a free initial consultation.

Bankruptcy is a choice many consider when faced with unmanageable multiple debts. But finance experts agree that declaring oneself bankrupt should be an indebted individual’s last resort to meet his dues. It may free a person’s mind from the pressure of paying his debts but it can also seriously damage the person’s morale and credit history for a long time. Aside from this, people who declared themselves bankrupt are often met with hostility by the people around them. But as an option to reduce financial burden, bankruptcy is still worth considering.

Tip! Even if I file for bankruptcy creditors will still harass me and my family.

By filing for and declaring oneself bankrupt, a debtor’s relationship with his creditors is adjusted. Many of his debts are forgiven and he is also allowed to keep some properties labeled as exempt items. However, all of his valuable properties are sold off and the proceeds are distributed among his creditors. As a result, some of his debts can be paid in full or just partly. If most of his valuable properties (i.e. house, car) are named as collateral for any debt such as mortgage or a car loan, the proceeds from the selling of these items are used to pay these specific debts. Only the balance or excess is used to pay off the other debts. In a sense, bankruptcy fulfills two ojectives: it frees the debtor from paying his debts and ensures that all assets are distributed among the his creditors.

Tip! There are no after payments. Once your bankruptcy is discharged that is it, you are debt free.

Bankruptcy happens in two ways: voluntary or involuntary. Declaring oneself bankrupt is categorized as voluntary whereas being forced into declaring bankruptcy by creditors is involuntary. Lawyers who specialize in finance cases advise debtors to cooperate in cases of involuntary declarations. There are also different types of being bankrupt. One is filing for a straight bankruptcy wherein all your properties are sold to pay off debts and the other is arranging for a repayment plan to avert foreclosure or repossession of properties. People whose debts are incurred by temporary setbacks (sickness, divorce) are usually considered for the partial type.

Tip! If I file for bankruptcy I will never get credit again.

Although being bankrupt does lighten one’s financial burden, it also has drawbacks. First, the debtor loses all control over his properties and assets. Any business the debtor owns is closed and all its employees are dismissed. Second, his credit accounts are closed such as loans, credit cards, and bank accounts. Also, bankruptcy remains in a person’s credit history for 10 years which can seriously damage his credit reputation. Third, his bankrupt state is made public by advertisements in local papers. In addition, the bankrupt individual must inform every person he deals with about his bankrupt state unless after he is discharged. As a result, the bankrupt often faces hostility, or prejudices in terms of business or professional opportunities.

Tip! After filing for bankruptcy, all of your possessions will be in charge of the trustee.

Finance experts generally recommend assessing financial situations before filing for bankruptcy. It is often the case that debtors declare bankruptcy without first exploring other options to settle their debts. However, if it is unavoidable, they advise debtors to seek professional help such as financial advisors or finance lawyers to help them understand the process and its effects. Debtors need to pay court application fees, but if they cannot afford it, there are non-profit legal aid organizations that are willing to help.

For more valuable information on Bankruptcy, please visit http://www.bankruptmiami.com.

 
 
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Refinance After Bankruptcy

26 Mar

bankruptcy

Refinance After Bankruptcy

Tip! Get a referral. If you know someone who has filed bankruptcy, don’t be afraid to ask them whether they felt their lawyer handled their case well.

You think you have hit the bottom of the finance world when “bankruptcy” is mentioned. Whether you went into bankruptcy due to business reasons or because you could not pay off a loan for your house, it is not the end of the world. It may appear hard to refinance after bankruptcy, but you do have options that may be able to get you back on track.

After you file for bankruptcy you have some time before you can really refinance a mortgage. You have roughly 6 months so you might as well take this time and get a plan together. You still have bills to pay, so make sure you pay those on time. Regardless if you have filed bankruptcy or not, paying bills on time always improves your credit. If you can manage to get a new credit card then you might want to think about using that as well. Pay the bills with the credit card on time, then pay your credit card payments on time. This is like a little double bonus as it shows multiple payments all on time and improving your credit.

Tip! Make three copies of the section of papers that list all of the creditors and collection agencies that were included in the bankruptcy – usually this is called the Schedule F.

When possible, save as much money as you can before you refinance after bankruptcy. Even if it is just a few dollars per week, make sure to put it into a savings account. People are less likely to withdraw money from savings accounts and any money you have in the bank will improve you ability to refinance after bankruptcy. The lenders view this as another asset you have. THe more you have the better client you appear to be.

If you don’t feel you can save much money, then you should consider some options that raise a little money. Sell some things on eBay. Have a yard sale. Take a part time job, or do odd jobs for people. Any money you can raise will help you in the long run.

When it comes to choosing a lender make sure you research! This cannot be stressed enough – there are a large number of lenders out there competing for your business. Find out the lowest interest rates and ask about extra fees involved. You are going to want a balance between the fees you have to pay and the interest rate you are being charged so make sure you really think things over before you settle for a lender. When you refinance after bankruptcy You are probably going to get a slightly higher interest rate than normal due to the bankruptcy on your credit report.

Tip! The final step in considering bankruptcy is to actually engage the services of an attorney. At this juncture, you attorney will prepare a bankruptcy petition on your behalf that will be filed in the bankruptcy court.

After a lender has been chosen be sure to completely fill out all the paperwork that you need. Ask questions about anything you are not 100% clear on. You do have the opportunity to review the loan again before it is finalized, but it’s best to have everything in order from the beginning.

By refinancing after bankruptcy and doing all of this you will accomplish improving your credit rating in just a few years. Keep making all your payments on time and continue to grow that savings account you were working on. Remember, every dollar counts. Once all your accounts are closed from the bankruptcy you will be able to refinance again with another mortgage lender and get those lower interest rates again. Your credit should be much better by now and the process shouldn’t be difficult at all.

For more information on how to Refinance After Bankruptcy and other financial information, please visit the author’s website.

 
 
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Mortgage Loan Tips: How to Rebuild Bad Credit after a Bankruptcy

26 Mar

bankruptcy

Mortgage Loan Tips: How to Rebuild Bad Credit after a Bankruptcy

Tip! The first step in learning how to file for bankruptcy is to make a comprehensive list of all of your creditors and outstanding debts. When you are working to determine how to file for bankruptcy, you need to appreciate that if you to proceed with a bankruptcy case, you must be sure that all of your debts are disclosed and listed in a bankruptcy petition.

According to both the Bankruptcy Code and the Fair Credit Reporting Act (FCRA), information on a Chapter 7 and Chapter 13 bankruptcy can remain on your credit profile for 10 years from the commencement of the case. But, the devastating effects don’t have to last forever, and you can immediately start rebuilding your credit by following these tips:

Clean Up Your Credit Reports

Many people find that when their Chapter 7 bankruptcies discharge, their credit reports still show several, if not all, accounts as open and overdue instead of being closed with the obligation wiped out as part of the bankruptcy. Contacting the credit bureaus and insisting that those accounts be properly reported as “included in bankruptcy” will help lessen the damage by a surprising amount. See “How to Raise Your Credit Score” for more information on cleaning up your credit reports.

Rebuilding Your Credit

Most people know that getting a secured credit card (with a typical credit line of $200 to $500) will help raise your credit score and rebuild your credit provided that you don’t charge more than about 30% of your credit limit, and you make the payments on time each month. But did you know that getting a mortgage or a home equity loan (second mortgage) also helps rebuild your credit?

Tip! The next step in filing for bankruptcy is to determine exactly what assets you have available to you. Your assets include your recurring income from your job, your home and major items of personal property that you might own (including such items as motor vehicles).

If you are a first-time buyer, there are government incentives to help you buy a home in just the right neighborhood. If you are already a homeowner, a home equity loan or line of credit can be used to remodel your kitchen or make other home improvements that will help improve the curb appeal of your home. And, if you currently have an adjustable rate mortgage (ARM), you may want to consider mortgage refinancing to a fixed mortgage rate to avoid the next interest hike and possibly cash out on some of your home equity for home improvements or loan consolidation. Believe it or not, a mortgage refinance can also help you rebuild your credit and raise your FICO scores.

Tip! Fourth step is optional; you can apply for a mortgage after bankruptcy even with bankruptcy discharged yesterday and just about any time you want.

Maria Ny is a respected free-lance writer from San Diego, California. She has written many articles that covered a broad range of subjects ranging from Bankruptcy Reform, Credit Repair to Second Mortgage Financing. Check out her interesting articles online at Nationwide Second Mortgage & Refinance.

To learn more information and get accurate interest rates quotes for Bad Credit Mortage Loans. We suggest you learn more about the benefits of the Second Mortgages to 125% from the loan experts at BD Nationwide.

 
 
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Consumer Loan After Bankruptcy: These Steps Could Help

26 Mar

bankruptcy

Consumer Loan After Bankruptcy: These Steps Could Help

Tip! The third step you need to undertake when it comes to seeking bankruptcy relief is to contact all three major credit bureaus. When all is said and done, the three major credit bureaus may have the best record of all of your outstanding debt.

If you are planning to apply for a consumer loan after bankruptcy, here are three steps that could help:

1) Increase your credit score prior to applying for a consumer loan after bankruptcy

Ideally want to increase your credit score before you apply for a consumer loan after bankruptcy. Why? Because a higher credit score could mean a lower interest rate. Depending on what you’re financing this could save you $100s or even $1,000s in extra interest and other finance charges.

So how can you increase your credit score to potentially lower your interest rate on a consumer loan after bankruptcy? There are a number of different ways. One way is to have any inaccurate or obsolete negative items removed from your credit reports. Another way is to add positive accounts to your credit report. These are just two examples – there are more ways you can increase your credit score. Again – if you are able to increase your credit score enough, it could potentially reduce the interest rate you pay on a consumer loan after bankruptcy.

Tip! Make three copies of the section of papers that list all of the creditors and collection agencies that were included in the bankruptcy – usually this is called the Schedule F.

2) Talk to the lender before applying for a consumer loan after bankruptcy

Before you complete a credit application for a consumer loan after bankruptcy you will want to see if the lender would even consider approving your application. How do you find out? You ask. For example, will the lender consider someone with a recent bankruptcy on their credit report? Do they require a minimum credit score? These are just two questions you need to ask – I cover more in After Bankruptcy Credit Solutions.

If it turns out that the lender would not even consider your application for a consumer loan after bankruptcy, then you save the time and effort of submitting it in the first place. In addition, you also avoided having an inquiry placed on your credit report from the lender.

3) Negotiate reasonable finance terms on a consumer loan after bankruptcy

Once you’ve increased your credit score and found a lender who would consider you for a consumer loan after bankruptcy, you will want to try to negotiate the most reasonable finance terms – that is, the interest rate and other finance charges.

Tip! Every single state in the United States has it’s very own interpretation on bankruptcy, some better than others. In some states you are permitted to hold onto your assets while other states grab hold of everything you own and require you to turn over ownership.

How can you negotiate finance terms on a consumer loan after bankruptcy? Much depends on the type of loan – auto loan, home loan, personal loan, etc.. One way is to shop lenders – if you find two that will approve you for a consumer loan after bankruptcy, compare the finance terms. You can also ask for a lower interest rate – again much depends on what you’re financing, but it doesn’t hurt to ask. In After Bankruptcy Credit Solutions I go into more detail on negotiating finance terms.

You now have three tools you can use when it comes to applying for and negotiating a consumer loan after bankruptcy. It may take some time and effort on your part, but the rewards can be well worth it!

Tip! Only deadbeats file for bankruptcy. Most people file for bankruptcy after a life-changing experience, such as a divorce, the loss of a job or a serious illness.

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Copyright © 2006 Innovative Solutions Publishing, Inc. All rights reserved.

The company and product/service names referenced in this article are the trademarks, registered trademarks or service marks of their respective owners. None of the owners have sponsored or endorsed this article.

DISCLAIMER:

This information is designed to provide only a general overview of the subject matter herein.

This information is provided with the understanding that neither the publisher nor author is engaged in rendering legal, accounting or other professional advice. If legal or other expert assistance is required, the services of a professional should be sought.

Neither the publisher nor author shall be liable for any loss or damages, including but not limited to special, consequential, incidental or other damages, caused by the information contained herein.

Tip! Get a referral. If you know someone who has filed bankruptcy, don’t be afraid to ask them whether they felt their lawyer handled their case well.

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About the Author: R. Lawrence Anderson is author of After Bankruptcy Credit Solutions, which shows individuals how to qualify for credit and loans after bankruptcy – including how to qualify for a consumer loan after bankruptcy. For details visit http://www.bankruptcy-credit-solutions.info

 
 
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Bankruptcy – Not for the Faint Hearted

26 Mar

bankruptcy

Bankruptcy – Not for the Faint Hearted

Tip! If I file for bankruptcy the trustee will seize all of my assets and sell them to settle my debts with creditors.

Inability or impairment of ability of individuals or organisations to pay off their creditors is known as bankruptcy. Normally individuals and business establishments initiate the process of bankruptcy but sometimes a group of creditors can ask for a declared state of bankruptcy in order to recover money owed to them.

The law of bankruptcy serves the primary purpose of giving a second chance to the honest debtors by relieving them from most of the debts and to enable the debtors to repay the portions of the debts with their available financial resources. For more information visit www.onlinebankruptcyresource.info

To keep the financial ship from sinking, declaring bankruptcy should be treated as an absolute last resort. This emotionally difficult choice can be carried out through a relatively simple process. Information detailing property, income, creditors and debts should be provided to the court and further collection efforts by the creditors is prevented by the issuance of a notice by the court to the creditors.

Tip! Make three copies of the section of papers that list all of the creditors and collection agencies that were included in the bankruptcy – usually this is called the Schedule F.

Child support, alimony, recently accrued back taxes, loans availed by students, large purchases made recently and penalties or fines of government agencies cannot be evaded by filing bankruptcy.

A negotiation with the creditors to reduce the extent of monthly payments should be explored prior to filing bankruptcy.

Non-exempt assets which can be divided among the creditors are permitted by the laws of bankruptcy. In addition, the bankruptcy declaration permits the debtors to be discharged from most of the financial obligations even if debts are paid in full after the distribution of non-exempt assets. Through a legally binding “Stay” the debtor is protected from extra bankruptcy action by other creditors. The creditors cannot demand payment, garnish wages or continue with lawsuits.

In its strictest legal sense, bankruptcy relates only to partnerships and individuals in the United Kingdom. Even though various different procedures such as administrative receivership, administration or liquidation are followed in the cases of companies and corporations, it is often wrongly referred as bankruptcy in general conversation and by media.

A licensed insolvency practitioner or a civil servant (official receiver) is usually appointed as a Trustee in bankruptcy cases.

Tip! Have derogatory credit items removed from your credit report. For the items charged off in your bankruptcy, you will need to send a copy (not the original) of your bankruptcy discharge papers to all 3 of the credit bureaus asking them to remove these inaccuracies.

After the introduction of Enterprise Act 2002, a bankruptcy in United Kingdom normally can not last longer than 12 months or less if the Official Receiver files a certificate in the court stating that the investigation is complete.

After the liberalisaion of the bankruptcy regime by the Government it is expected that bankruptcy cases will increase.

Lucy Bartlett is a proud contributing author. Find more here. For more info visit Bankruptcy or Bankruptcy Alternatives

 
 
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Bankruptcy and Student Loans

26 Mar

bankruptcy

Bankruptcy and Student Loans

Tip! You can also lose valuable assets when filing for bankruptcy, or you have to pay the equivalent in money.

Student loans can be a burden on anyone. With other bills piling up and your student loans to pay on top of that, sometimes people seek bankruptcy as a way out. If you find yourself in this category, then please pay careful attention to the rest of this article! You need to understand these points before you even consider bankruptcy as an option.

The first misconception is that bankruptcy is an end-all be-all for debt. That’s not true! If you file for bankruptcy, your lenders will still expect you to pay your student loans and you are still obligated to do so. The only way to get out of paying them is to prove that your student loans are a huge financial hardship. The down side is that you just filed bankruptcy, so if the rest of your debt has been handled with the bankruptcy then chances are the payments for your student loans are now much easier to pay.

If you think that they are a large financial hardship, then you are going to have to show that you will never be able to pay off the loan according to the length of the loan. You have to show that no matter what, even down the road, you still won’t be able to pay off your loan. You also will most likely need to be behind in your payments because the lenders need to see that you are actually putting forth effort to pay them back. That means both paying them what you can, and working as much as you can to come up with their money. The real down side of attempting to get rid of these loans is that there is no set rule on what counts and what doesn’t. When you file for bankruptcy, it will be up to that person to determine whether or not student loans will fall under the bankruptcy, and even then it’s up to their discretion.

Tip! Once you narrow down the list of attorneys you are considering, the next phase in considering bankruptcy is to obtain references in regard to each of these attorneys’ prior performance. References will provide you with specific information on how a particular lawyer handles his or her business and on how successful he or she has been in the pursuit of prior bankruptcy cases.

Even if you filed bankruptcy already and aren’t getting bills sent from your lenders (they can’t do this if you have filed) that does not mean the loan has vanished. Instead, it means that the loan is sitting there collecting interest. That’s right, the interest you owe just builds up over time and when you come out of bankruptcy, the lender will expect that you pay them the money you owe plus the new interest.

So if you can’t file bankruptcy but your student loans are still causing a problem, what can you do? Well you still have options. One option might be to consider consolidating your student loans. Depending on which consolidation service you choose, they have many different options on how you can consolidate and repay these loans.

Tip! It is also a requirement, for those wishing to obtain a bankruptcy home loan, to have a debt-to-income ratio of between forty-five to fifty percentile range.

Another thing you should do is call your lender and let them know that you are having trouble paying them back. Sometimes they have different options you can take. You might be able to differ the loans if you are looking at a short term financial hardship situation. They might be able to come up with a different payment schedule that accomodates your situation. Just talk to them as they deal with these types of situations every day. You never know how they might be able to help you.

While bankruptcy is an option, if student loans are the only thing bringing you down financially, then you should consider other options. The chances are too slim that you will have your student loans fall under the bankruptcy and again, even if you are not paying during that time, your interest is collecting. Call your lender and ask them for help. After all, you are paying them money, they want to make sure they get the most they can and will work with you as best as possible.

Tip! It is true when they say that the bankruptcy laws can be rather complex. One of the most common is Chapter 7, which discharges all financial debts.

Please visit the author’s website for more information on Bankruptcy and Student Loans and other financial information.

 
 
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Bankruptcy and the Investor

26 Mar

bankruptcy

Bankruptcy and the Investor

Tip! You can only file for bankruptcy once.

Investing is all fun and games until someone goes broke. One hard reality which ever investor has to come to terms with is that you are not always going to gain. In a matter of six months, with bad decisions, a stock portfolio can be completely destroyed. Leaving the investor with no cash flow and no way to pay bills. There are very little options for investors who have had some bad luck other than to file bankruptcy. Bankruptcy is a process in which an individual who is in debt can seek relief from that debt from the government. It can be a viable option to an investor debt relief but certainly should not be the first choice.

Tip! It’s really hard to file for bankruptcy. It’s really not.

There is no clear way to know if you should file for bankruptcy or not. Discuss your with your financial advisor or seek the help of a credit counselor. Additionally, most bankruptcy attorneys offer a free advisory meeting to help you clarify issues and see if you are a good candidate for bankruptcy. Bankruptcy is a choice that you will have to live with for years. It will affect your ability to get a loan, lease a car, rent an apartment, and invest. Individuals who file bankruptcy are considered back risk for lending and investment companies. There are alternatives to filing bankruptcy. Below are a summary of those options. Choosing which option is for you is going to depend on your specific situation and how much in debt you actually are.

Tip! You can’t get rid of back taxes through bankruptcy. Generally speaking, this is true.

Hire a Financial Advisor – This may be hard for an investor to do but often giving up the control of your money can help you get a grasp on your life. A financial manager takes your money, pays your bills, gives you set allowance. This is done until your life, finances, and spending habits are in control. If feel you can help self control seek out a financial counselor that can help you set up a budget. Making a budget is the easy part, adhering to it can be extremely difficult. Make sure you select an experienced and moderately priced financial manager. Many managers offer services for large fees and have very little experience.

Tip! Get a referral. If you know someone who has filed bankruptcy, don’t be afraid to ask them whether they felt their lawyer handled their case well.

Working with Creditors – Calling up your creditors, explaining your situation, and hoping that they will be able to work with you is always an options. Some creditors are more than willing to help their clients through a time of financial crisis. Most creditors are aware that some debts are just hard to collect even if there has been a bankruptcy therefore it is in their best interest to work with you.

Tip! If I file for bankruptcy now, I will never be able to file again.

Refinance What You Can- If you own a home, and have some equity in the home, consider refinancing your home to pay off all of your high interest debt. Make sure you seek out refinancing options from a bank or respectable lending institution. There are many companies who will offer to combine all your debts into one low payment but these companies also charge huge fees for this service. In other words to not give up one group of debts for another (perhaps more damaging) debt.

Visit the Global Investment Institute and signup for our free Investing For Beginners E-Course at http://www.Global-Investment-Institute.com

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