Bankruptcy And Signing Reaffirmation Agreements

Article by Lisa Jones


Bankruptcy And Signing Reaffirmation Agreements    by Lisa Jones




So, you have no choice but to file bankruptcy, but you own a vehicle worth, say ,000.00. What will happen if you file bankruptcy? What really happens? If you file a Chapter 7, if your state’s exemptions only protect 00.00 of value in a car, your Chapter 7 case has just become what is known as an “asset case”. The trustee will contact you or your attorney to determine whether you are willing to come up with the money to keep that vehicle. If you are not, then yes, the trustee will hire someone to come get the vehicle and then sell it. If you are willing to come up with the cash, then you are given the opportunity to purchase the vehicle from the estate.A lot of people want to keep their car when having to go through bankruptcy. So, some might say, “Well, I’ll just sign the reaffirmation agreement then.” This might not make sense for you, though. If your budget doesn’t show that you have the money to make the payments, if you owe more on the car than it’s worth and can’t redeem the car, or if you’re likely to get into financial difficulties in the future, it might not be in your best interest to reaffirm. In many cases, even if you want to reaffirm, the Bankruptcy Court won’t approve the reaffirmation agreement.Before Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act in 2005, dealing with car loans in chapter 7 cases in most states was pretty simple–if you made your payments you could keep your car, and if you didn’t, even though the car finance company could repossess the car, you wouldn’t be personally liable for any deficiency.This has changed. Now, you are given some options. One of them is to “reaffirm” the car loan. This means that you sign a document, that must be approved by the Court, making you permanently liable for the car loan, regardless of what happens, as if you had never filed for bankruptcy. Reaffirming a car loan means that you keep the car so long as the payments are being made, and if they aren’t made, you’re on the hook. Although reaffirmation was available pre-BAPCPA, it didn’t make a lot of sense in those states where “keep and pay” was available.A Chapter 7 case’s timeline is very short. The typical amount of time between filing and discharge of the debtor is only 110 days. If you have filed a Chapter 7 with a vehicle, the Trustee is under timeline guidelines to finish that case quickly. The trustee will want to liquidate assets, if any, and close the case. Trustees will sometimes accept payment arrangements but those arrangements are typically very short (for example, from 30 days to 180 days). You or your bankruptcy attorney may be able to negotiate with the trustee to deduct the costs of sale or expenses from the amount you have to pay the estate. The bottom line is, you can keep your car, but you will have to pay to keep your car.



About the Author

The author formed FilingBankruptcyNow.Com that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy and helps individuals with debt problems and helping stop foreclosure by putting them in touch with a local bankruptcy attorney. Check our website for more answers to bankruptcy questions for a debt free future.

When the Bankruptcy Gets Complicated

Article by Oliver Savill


When the Bankruptcy Gets Complicated   by Oliver Savill




You would think a bankruptcy would be a fairly simple process – just list your debts and identify your income and the difference is what you cannot afford to pay.It’s never that simple though because people don’t just owe personal loans and credit cards.They also may owe:

>> Back taxes to the IRS

>> Mortgage payments on house nearing foreclosure

>> Auto loans

>> Prior judgments from cases settled in court

>> Lawsuits

>> Student loans

>> Medical bills

The bankruptcy attorney in Tyler, TX will also tell you that other complications include divorce, tax liens, child support issues and many others.The complications that a bankruptcy can experience are precisely why it’s so important to have an attorney on your side.

Bankruptcy is Not Intended to Create Homelessness

Though the bankruptcy will wipe out much of your debt, it cannot eliminate all of it.For example, a bankruptcy will not eliminate child support payments nor will it stop a creditor who accepted loan security from repossessing that property.You can eliminate some of your federal tax debts if but only if the debt is older than 3 years since the filing of the tax returns.

Filing bankruptcy is a frightening prospect because it brings to mind images of people thrown out of their homes and living on the streets with no assets to their names. Fortunately that is not the case because the government is not interested in creating homeless families or in leaving a person destitute.

For this reason there are exempt assets that you are allowed to keep even if filing bankruptcy. In fact, your attorney in Tyler, TX is sure to agree that Texas is liberal when it comes to exempt assets. You can keep some of your property, home furnishings, food, farming equipment, tools used for your job, clothes, vehicles, health aids, insurance benefits, retirement plans, social security payments, veteran’s benefits and more.

Destitution is Not an Option

Each of these exemptions may have limitations, but the important point is that you will not be left destitute as a result of the bankruptcy filing. Of course, you need an experienced bankruptcy attorney in Tyler, TX to insure that your rights under the law are protected. The attorney can negotiate with the court trustee during the determination of what you will keep as assets and what is subject to sale or garnishment.

The bankruptcy is intended to give you a fresh financial start. When you don’t own a home or have a variety of debts, then the bankruptcy settlement is clear cut. The attorney in Tyler, TX will tell you though that most bankruptcies are not clear cut and almost always have complications.

If you are drowning in debt but are avoiding bankruptcy out of fear you will lose everything, then it’s time to consult with a bankruptcy attorney. The attorney can review your financial status and advise you as to the best course of action. The good news is that, when the financial relief comes, you will not be destitute!



About the Author

If you are interested to know something more on attorney Tyler, TX and bankruptcy attorney Tyler, TX than more details please visit our website www.williamlivelylawfirm.com

Your Guide To Understanding Bankruptcy Homes For Sale

Bankruptcy homes for sale are properties of persons who have chosen to declare themselves bankrupt rather than go through a foreclosure. Bankruptcy is actually a court proceeding administered through a separate federal court known as the US Bankruptcy Court. It is an option for an individual who cannot anymore pay his debts as they become due and demandable.

How Does Bankruptcy Works

In a bankruptcy proceeding, the court will essentially grant a person a relief from his overwhelming debts that he obviously cannot anymore handle. The idea is to give the person a fresh start in building again his financial freedom subject to certain restrictions.

The idea behind bankruptcy is for the person to gain a discharge of or a payment plan for his debts. Unlike in a foreclosure, though, bankruptcy is initiated by the debtor himself and not by the lender or creditor. The court will also appoint a trustee who will examine his finances, assets and obligations and determine the exemptions that he might be entitled to under the law.

Bankruptcy homes for sale are actually those properties that have already been identified to secure the payment of an existing debt to a creditor. There are also cases when a lender will permit a short sale of the property just so it could recover its money. This will allow the owner to negotiate for a good price for his property directly with the buyer.

Unlike in foreclosure, bankruptcy allows a person to retain some of his properties provided that certain requirements are met. The most common type of exemption followed in most states is the one applied on primary residence. This means that if your primary home is facing foreclosure, the person may actually invoke the homestead exemptions by filing a bankruptcy application.

There are many bankruptcy homes for sale now as a result of many people filing for bankruptcy. Both bankruptcy and foreclosure are serious business that one should consult and go to a lawyer when considering or facing either one. The implications are serious and results could stick to one’s credit for a long time. A lawyer will be able to represent you and help you in legal matters and issues that you need to know and understand.

Joseph B. Smith has been educating buyers on the finer points of bankruptcy homes for sale at ForeclosureConnections.com/ for over ten years. Contact Joseph B. Smith through foreclosuredatabank.com if you need help finding information about bankruptcy homes for sale .

Connecticut Bankruptcy Law: Exemptions That Help Protect Creditors

Article by Simon Peters


Connecticut Bankruptcy Law: Exemptions That Help Protect Creditors   by Simon Peters




There are certain exemptions related to the Connecticut bankruptcy law that helps protect creditors when a debtor files bankruptcy in Connecticut. One also has the choice in Connecticut to avail of federal exemption statutes instead of the Connecticut exemptions, and it is also possible to use federal supplemental exemptions in conjunction with the Connecticut exemptions.

Debtors don’t Necessarily Lose Everything in Bankruptcy

Many people are under the false impression that bankruptcy means losing everything that the debtor owns in order to satisfy his or her debt. As a matter of fact, the Connecticut bankruptcy law allows debtors to keep a number of things that are essential for the well being of the debtor and his family. In spite of the fact that there is a federal exemption law, Connecticut bankruptcy law allows you to choose between state and federal exemption laws.

Items that are exempt under Connecticut bankruptcy law include personal effects, furniture, cars (subject to a specified amount of equity), and tools of trade, equity in residence, clothes, household goods as well as books and jewelry.

It should not be difficult to locate a Connecticut bankruptcy law attorney, because there are a number of them that specialize in providing service to all kinds of clients. You will be able to get effective counsel across Connecticut that deals with unforeseen medical expenses, divorce or unemployment that can catch you off guard and result in bankruptcy. A good Connecticut bankruptcy law attorney will be able to assist in taking the best option in all matters relating to filing bankruptcy.

Whether it is consumer, business or commercial bankruptcy, you will need a Connecticut bankruptcy law attorney with extensive experience in knowing all the intricacies of the laws pertaining to Connecticut bankruptcy. Keep in mind however, that there is no magic formula to help make the decision to file bankruptcy. You may consider bankruptcy as an option if you are paying minimum amounts on bills, receives a notice that a mortgage or loan is being foreclosed on or you have had severe financial setback.

Consumers can file for bankruptcy under Connecticut bankruptcy law either as Chapter 7 bankruptcy or Chapter 13 bankruptcy. With new federal bankruptcy laws coming into effect from October 17, 2005, a “means test” will determine whether the debtor is eligible for Chapter 7 bankruptcy. For those that do not qualify for Chapter 7 bankruptcy, the best and only option will be the Chapter 13 bankruptcy.



About the Author

Simon Peters is the owner of On Bankruptcy, it is THE best source for advice on the subject of bankruptcy, nothing to sell, just information…

Bad Credit Debt Consolidation: The Bankruptcy Alternative

Article by David Faulkner


Bad Credit Debt Consolidation: The Bankruptcy Alternative   by David Faulkner




The way to establish a good credit rating is to use your credit in such a manner that your total debt never approaches your total credit limit, and that you always make your payments by their due dates. Getting a bad credit rating means that you have a record of incurring over limit charges and late payment fees.

But no matter how stellar your credit history, as long as you owe money, you are at risk of having that credit history damaged either by bad financial management, or by circumstances completely beyond your control. A sudden illness and the accompanying medical bills, the loss of a job, or a denied insurance claim can leave you struggling with a financial nightmare, and dependent on credit cards or other loans to keep you afloat until things turn around.

Do You Need A Bad Credit Debt Consolidation?

The difficulty arises when it is time to pay back those loans, which may not have been enough to eliminate your other expenses, and in the meantime are accruing interest. If you feel helpless because you owe so much money to so many different creditors, it may be time for you to explore bad credit debt consolidation.

Your first thought may be, “But why not just file bankruptcy?” You may eventually decide to do that, but think long and hard before you do. Having a bankruptcy on your credit history can severely limit your financial options for up to ten years; getting a bad credit consolidation loan, on the other hand, will let you restore your credit by paying off your existing bills, and maintain a good credit rating as long as you make your payments on the bad credit consolidation loan.

The first thing you are likely to experience after taking out a bad credit consolidation loan is relief. You will have paid off all your other debts, and be on the road to retaking control of your finances. But bad debt consolidation loans need to be looked at in the light of both their advantages and disadvantages.

The biggest advantage, as far as you’re concerned, about a bad credit debt consolidation loan is that it will carry a lower interest rate than the other loans which you had been trying to pay off. When you research bad credit consolidation loans, find those with the lowest possible interest rates.

The Home Equity Loan

The most frequently requested bad credit consolidation loan is the home equity loan. A home equity loan allows you to take a second mortgage on you home; the amount of money you can borrow will depend on how much of your existing mortgage you have already paid off. Because you are putting your home up as collateral, these bad credit consolidating loans are considered secure and lender can foreclose on your home if you go into default. Home equity loans, therefore, demand a great deal of consideration.

You can learn more about bad credit consolidation home equity loans by doing some Internet research; information on the lenders and loan process is easily and quickly available. For more info see http://personalbadcreditloanshelp.com/Articles/Bad_Credit_Car_Loan.php on Bad Credit Car Loan.

Precaution

The disadvantage of searching for a bad credit consolidation loan is that there are many unscrupulous lenders offering unsecured loans, promising to let you pay off all you other debt without requiring collateral or high monthly payments. Just remember that if it sounds to good to be true, it probably is, and approach such offers with extreme caution.



About the Author

You can also find more info on Bad Credit Loan and Bad Credit Business Loan.

The Pros and Cons of the Bankruptcy Option

Article by Benedict Smythe


The Pros and Cons of the Bankruptcy Option   by Benedict Smythe




Being insolvent is one of the worst situations a person can find himself in. The threat of foreclosures, or losing one’s home and valued possessions looming over one’s head would cause sleepless nights. This predicament would force a person to grasp any possible solution. However, if all possible solutions fails to deliver the desired result, the last course of action is to opt for bankruptcy.

If you have tried credit counseling and you still can not pay your bills, and if you have exhausted your savings, then you should consider filing for bankruptcy.

Bankruptcy is considered as the last debt management resort because of its long lasting effect. Bankruptcy will stay in a person’s record for at least 10 years. Needless to say, this would affect his future financial standing. Lenders will have to think twice before extending credit because of his being a potential credit risk. Acquiring credit cards and mortgages will be difficult if you have this on record.

Bankruptcy records are easily accessible because they are published and also can be viewed on line. This far reaching result would be detrimental to future financial dealings and employment. A person who declares bankruptcy should be prepared for the consequences – face the rejection and ridicule of the society and associates, being branded as a failure and oftentimes judged as culpable and dishonest.

With a bankruptcy order the debtor can expect to have all his bank accounts closed. Credit cards will also be closed. On a positive note, closing of credit cards will be beneficial since credit cards could be one of the causes of the bankruptcy.

Contrary to the notion that bankruptcy would give a distressed debtor a new slate, not all debts can be discharged or written off. Examples of this are student loans, unpaid taxes and child support.

On the positive side, bankruptcy will give the debtor peace of mind, will free him from harassment of creditors and will give him a chance to have a brand new start. Stress in dealing with countless creditors will be eliminated because once the bankruptcy order is made; the appointed trustee will do the administration and the payment of the debts.

A bankruptcy stops the creditors from filing collection actions. Creditors are prevented from foreclosing, repossessing and garnishing your assets. In some states, bankrupt individuals are allowed to keep the house, the car and other possessions and a reasonable amount of cash to live by. The primary purpose of this is to lessen the risk of the bankrupt person to be bankrupt all over again.

Filing for bankruptcy could be a “habit” though. Many filers have been noted to file again. This could be attributed to the absence of proper finance and debt management. People who have experienced financial downfall would commit the same errors again and will eventually grab the last resort to get them out of the difficult financial situation…again.

Repeat bankruptcy filers are strongly advised to get proper counseling and to learn how to manage debts and finances effectively.



About the Author

With the increasing financial problems within the UK more and more people need expertise from companies such as Wilson Field Ltd Insolvency and Liquidation Practitioners.

Retaining Your Normal Life Through Bankruptcy

Article by Legal Helpers


Retaining Your Normal Life Through Bankruptcy   by Legal Helpers




Facing numerous creditors and the constant threat of losing all of your possessions can be a very scary situation for many Americans. You may feel that you will never find a way out and will end up with nothing. Fortunately with bankruptcy, that does not have to be the case. One very untrue belief is that you will lose your house and your car through the bankruptcy process. Each bankruptcy case is an individual as the person filing it, but with most cases your possessions, including your home and car, are exempt from being part of the losses. You will be able to set up a payment plan that allows you pay for your home or car, without the possibility of losing it, which can help considerably if your house is close to being foreclosed on.

If you car has already been repossessed but not sold, you have the possibility of reclaiming it with your bankruptcy. Past car payments that were not been able to pay will be consolidated through your bankruptcy, as long as you have filed for bankruptcy prior to the repossession. Your payments will not however go to the finance company but to a trustee instead. Speaking with an experienced attorney can help you decide if this is the type of process that you should undergo and let you know what rights you have as a filer of bankruptcy. Your attorney will also know of other benefits that you are liable to with filing your bankruptcy. If you are not sure if you qualify for bankruptcy, you can even fill out a free bankruptcy evaluation.

You may have many questions as to how your life will look after bankruptcy. Many people think after they file for bankruptcy, they’ll never own their own home. This is not necessarily the case as there are many lenders willing to help, once the bankruptcy has been discharged. Before you attempt to get a loan however, be sure you take these steps to be sure you are completely prepared for the process.

Being sure you are keeping your current bills under control is the number one thing to do when trying to obtain a loan. Even if you’ve filed for bankruptcy, you may have loans to pay such as student loans or a car loan, student loans are basically impossible to have forgiven during a bankruptcy claim. If you’re late on those, you can forget about getting a new loan.

One of the most looked at criteria for home loans is the borrower’s debt to income ratio. If you’ve previously filed for bankruptcy you should have minimal debt. You need to be sure all debt is gone from your credit report. This may take time and persistent calls to your creditors. They won’t go down easily!

If you’re turned down the first time for a home loan, don’t fret! You can always wait six months or a year and try again. Often your credit report will change greatly during that time and you may qualify for something much better by waiting.



About the Author

Bankruptcy Attorneys

Bankruptcy – The Automatic Stay

Article by Debra Proctor


Bankruptcy – The Automatic Stay   by Debra Proctor




If you have reached a point in your life where your debt has piled up and you are considering filing bankruptcy, then odds are that life hasn’t been too pleasant for you lately. One of the worst issues you will have at this time is the harassment by creditors, fear of repossessions, and utilities being turned off. While these issues shouldn’t be the reason for filing bankruptcy one “benefit” (if it can be called that), is the automatic stay. The automatic stay is “automatically” put in place and accomplishes several things including protection against bill collectors, foreclosure, utility disconnections, and being evicted. There are some cases where it isn’t automatic such as when people have recently filed other bankruptcies. Here are some points of relief that the automatic stay can give you during this stressful time:1. Foreclosure – An automatic stay will temporarily stop foreclosure. The creditor will probably be able to foreclose eventually if you file Chapter 7, but this will buy you some valuable time to make decisions. Chapter 13 bankruptcy is a better option if you want to keep your house and you can usually file a bankruptcy petition any time before the sale of your house. 2. Utilities – If the utility company is threatening to cut off your water, electricity or gas, the automatic stay could give you up to 20 days of extra time. Once you file bankruptcy the automatic stay will force the utility company to reconnect your service if your utilities have already been disconnected.3. Wage Garnishments – Garnishments as in the case of child support and alimony will be completely stopped when bankruptcy is filed. Your paycheck will be protected and you will be able to take home a full salary and can also discharge the debt in bankruptcy.4. Eviction – Some help will be provided, but the new bankruptcy law makes it easier for landlords to evict you. If your landlord already has a judgment of possession against you when you file, the automatic stay won’t affect these eviction proceedings; the landlord can continue just as if you hadn’t filed for bankruptcy. Also if the landlord alleges that you’ve been endangering the property or using controlled substances there, the automatic stay won’t any good. In some cases, the automatic stay might give you a few days or weeks but the landlord can ask the court to lift the stay and the court will probably do so. 5. Repossession – Your car cannot be repossessed while you have an automatic stay but this does not prevent you from having to handle the issue by reaffirming your car loan of returning it. You may be able to save your car with a Chapter 13 Bankruptcy but will have to make your trustee payments. Also, you need to be aware that a creditor can ask a judge to lift the stay so they can repossess. As you can clearly see, an automatic stay won’t solve all your problems but it does give some temporary relief. It will stay in effect until you complete the bankruptcy and receive a discharge, the judge lifts the stay when a creditor requests it, and the property you want to protect is no longer a part of the estate. Be sure to read further information before you make any decisions about filing bankruptcy so you can be well-informed.



About the Author

www.debt-relief-advice.info is an informative site that explains the painful process of bankruptcy, debt management, and debt relief. You will learn different options and strategies to help you through this difficult situation.

Bankruptcy Questions – What To Know Before Filing For Bankruptcy

Article by Benjamin Robert Ehinger


Bankruptcy Questions – What To Know Before Filing For Bankruptcy   by Benjamin Robert Ehinger




Are you having debt issues and considering filing for bankruptcy? Do you really know what you are getting into? Bankruptcy is a very serious decision and you need to know before you do it. Here are the answers to the bankruptcy questions you might have.

What will bankruptcy do to my credit?

Here is the answer. Bankruptcy will basically ruin your credit for a couple years. You will struggle to get a good loan, even though you will get bombarded with offers as soon as your filing becomes public. Loan companies and credit card companies know that you cannot file for bankruptcy again for 7 years so they will try to get you to take out a high interest loan or credit card.

How much will bankruptcy cost me?

To file you will pay between 0 and ,500 depending on what type of bankruptcy you file for and whether you do it on your own or with an attorney. Most people will file for chapter 7 or 13 and will use an attorney. This will run around ,000 and if it is chapter 13 you will have to pay off your debts as well.

Will I be able to keep my car or home if I file for bankruptcy?

The only way to keep anything when you file for bankruptcy is to not include it in the bankruptcy. If you do your mortgage company will foreclose right away and your auto lender will come and reposess your vehicle. They will do this so they can get as much of their money as possible.

There are many things to consider when it comes to filing for bankruptcy and these are just a few of the many bankruptcy questions you might have. Make sure you are considering all of your options before you spend the money to file and make sure you are making the right decision.



About the Author

Discover the answers to all your Bankruptcy Questions. Get the answers here:

Bankruptcy Questions, go here

Can Bankruptcy Save My House?

The filing of bankruptcy activates the automatic stay which prevents all creditors from any action to gather their claim including foreclosure.

Can Bankruptcy Save My House?  A creditor secured by the house can find relief from the stay to complete the foreclosure if there is danger that the secured claim will become larger than the value of the security during the bankruptcy.   Since the creditor’s lien is not removed by the bankruptcy, Chapter 7 provides temporary relief from foreclosure, but no lasting solution.

If you are among the record number of under pressure families who face increasing mortgage payments on a home where much of the value has already gone, you may be running out of options. Most banks are not eager to renegotiate rates or extend loans, opting instead to foreclose on properties.

Can Bankruptcy Save My House?  If you are about to lose your home through foreclosure, filing bankruptcy can seem enticing.  As soon as you file bankruptcy, your lender will suspend foreclosure proceedings temporarily.  Your lender’s attorneys will then present the court that your lender has a security interest in your home.  The bankruptcy court will likely let your lender to continue foreclosure.

Although you may maintain your home for a few months more, the consequences of filing bankruptcy and home foreclosures can cause long term financial suffering.  Legal proceedings such as bankruptcy and foreclosure remain on your credit history for ten years.  Although it may be possible to get credit within that time, it will likely cost more in interest rates and additional charges.  It is possible to qualify for a mortgage loan right after your bankruptcy has been discharged or your property seized, however, the terms are usually so adverse that few borrowers actually obtain one.  The rising use of credit reporting and scoring by employers, insurance companies, and other entities can reduce your options if you have a foreclosure and/or bankruptcy on your credit record.

We know your house is important to you and your family.  We also want you to create good economic decisions.  Your bankruptcy lawyer will discuss the costs and benefits of home ownership with you.  Your bankruptcy attorney will also help you decide whether it is the best decision for you and your family to try to stay your home.  And if this is your choice, your bankruptcy attorney will help you craft the best plan to give you the best chance of winning the battle to save your home from foreclosure.

If losing your home is pending then you may be considering bankruptcy as a way to absolve all of your debts and start with a clean slate.  However, there are many negative phases to filing for bankruptcy.  Any credit cards that are included in your bankruptcy claim will no longer be applicable.  Any cars that are in the claim will be retrieved.  You will be dispossessed from your home if the mortgage is included.  Your credit will be totally ruined and a bankruptcy will remain on your record for ten years that is three years longer than a foreclosure.  Therefore bankruptcy should be your very last choice if it is at all avoidable.  But you do not need an attorney to file bankruptcy.  It could cost you a lot of money.

You can always hire a bankruptcy petition preparer to prepare your petition.  They only charge less, they are authorized to do it and the end result is the same.  To know more on how to file bankruptcy, visit http://www.onlinebkassist.com.

Steve Young is the author of The #1 Secret On How To File Bankruptcy. To get your free CD on How to File Bankruptcy Without an Attorney, go to http://www.onlinebkassist.com

« Older Entries