Bankruptcy (3)
When someone runs out of money and can't pay their bills one of their options is to declare bankruptcy. Essentially the are declaring to their creditors that they are unable to pa their bills and thus they are erased. In the old days people were sent to prison, now there are other consequences.
Filing Bankruptcy for a Clean Start
Written by Randy CannDeclaring bankruptcy is a way to get a fresh start if you find yourself in a crippling financial situation. While chapter 7 or 13 bankruptcy should not be taken lightly or jumped into without proper consideration, is it a proven method of getting creditors off your back so you can improve your quality of life. You would be wise to educate yourself on the two primary methods of filing bankruptcy, and should set up an action plan for handling your finances once your proceedings are finalized and you have a clean financial slate.
Chapter 7 Bankruptcy
When filing for chapter 7 bankruptcies, an individual agrees to have all of their non-exempt assets liquidated to pay as much of the total sum owed as possible. The rest of the debt is erased, though a record of the fact that you filed for bankruptcy is kept on file for seven or more years after the fact. People may lose house declare bankruptcy, but this is unlikely.
Many people decide that declaring bankruptcy via chapter 7 may be a way to get rid of their unsecured debt. If you have very few possessions that lenders would repossess for liquidation, you can file for chapter 7 bankruptcy and obtain a fresh financial state with very little loss on your part. Basically, if you have very little to lose, you stand to lose very little through chapter 7 bankruptcy.
Chapter 13 Bankruptcy
If you are in possession of assets that you do not want liquidated, chapter 13 bankruptcy can give you a fresh start without having your assets repossessed. In a chapter 13 bankruptcy, you agree to pay off debts over an agreed upon period. In exchange, you get to keep your property and the harassing debt collection tactics are put to an immediate halt.
Debtors often pay far less of the total amount owed when filing for chapter 13 bankruptcy, as much of the debt is discharged a few months after the application for chapter 13 is approved.
Financial Action Plan
Once you have wiped out your debt and gotten a fresh start, you will need to establish healthy spending habits to keep you from falling into the same financial pit again. Create and adhere to a budget that is realistic. Make sure that you are saving a pre-determined amount of money each month, so that if an emergency arises you have the funds needed to handle the situation without going into debt.
Can I File for Bankruptcy Online?
Written by Randy CannFor individuals who are burdened with excessive debt and see no way to escape it, bankruptcy may be the answer. Negotiating with creditors and debt consolidation should be considered prior to bankruptcy. However, if these potential solutions do are not viable options, bankruptcy may be the right alternative for solving severe financial difficulties. Bankruptcy is becoming more common in these tough economic times and it has also become more convenient. It is now possible to answer the question how to file bankruptcy online.
There are two main type of bankruptcy for individuals. The first type is Chapter Seven bankruptcy. This is also referred to as liquidation bankruptcy. The consumer’s debt is discharged and their property is sold (liquidated) by the court. The proceeds are then used to pay off their creditors. Chapter Thirteen bankruptcy is the other main type of bankruptcy. The goal with Chapter Thirteen bankruptcy is to renegotiate debt to manageable levels. The court will approve a new repayment plan with stated terms and conditions. Both types of bankruptcy offer consumers an alternative when dealing with financial problems.
In these technologically advanced times many consumers opt to declare bankruptcy online from the convenience of their home. This can be done by utilizing the Bankruptcy Court’s PACER system. The PACER ( Public Access to Court Electronic Records) system is an online database maintained by the Federal Courts. It is advisable to utilize the services of an attorney when filing for bankruptcy. Even if it is done online, the use of an attorney is recommended. Bankruptcy can be a complex process and mistakes can be costly. Professional help will reduce the chances for errors and ensure the process goes as smoothly as possible. Even though the process is done online, the attorney will usually want to meet with the consumer. Due to new bankruptcy laws, an attorney can be held personally liable for misrepresentations and omissions that occur during the bankruptcy process.
Filing for bankruptcy without the services of an attorney is called pro se. Pro se means “for oneself” in Latin, and this can be a viable option if there are few assets and the person filing is has the time and patience to do research on bankruptcy laws and procedures. There is a wealth of information on the PACER website that can help guide the consumer through the bankruptcy process. Reading this before deciding to proceed without a lawyer is recommended.
Filing for bankruptcy online is cost-effective and convenient. Though a court visit may still be necessary, time spent navigating the court system is greatly reduced. Make certain to check any submitted documentation carefully to avoid mistakes. Filing online can save time and money while eliminating some of the stress that comes with filing for bankruptcy.
Getting a Car Loan After Bankruptcy
Written by Investor JimMany creditors avoid giving out loans to people who have bad financial records. This is the reality of the financial world. But there are some creditors who are willing to give out loans, specifically auto loans, to people who have at least a credit rating score of 500. They are called subprime lenders. Subprime lenders are willing to overlook any trauma financial records have gone through, but they also charge more than the traditional lenders. That’s because it’s their business to give credit to those all other creditors have ignored. Since there is a greater risk involved, it just follows that a bigger amount will be charged.
If you’re looking for financial assistance in getting hold of a new car, then try calling the special financing department of some car dealerships. If you’re lucky enough to find a dealership that would be open to special financing, make sure that you thoroughly explain to them your credit situation. Most of them would be glad to help out and maybe even throw in a perk or two. Since there is no known standardized rate, and lenders and dealers all have different rates, don’t hesitate to shop around so you’ll be assured that you get to choose the best deal. Another place where you can go look for a car that you can use is at a charity for cheap vehicles. People who work at these charities restore old cars by asking around for car parts as donations. They then sell newly fixed cars for charities at a fraction of the price a dealership would normally charge.
Getting a car loan right after bankruptcy is a practical way to start nursing a bad credit rating back to health as long as you make vigilant on time payments. You may also want to check all your credit reports before filing an application for a car loan so that you can double check any accounts that may hurt your chances of getting approved for one. You can also explain your situation to the lenders, in addition to any financial improvements your records have gone through, in order to acquire favourable rates and fast approval. And once you have that new car loan in tow, target refinancing your car loan your new goal. By doing so, you’ll be able to get lower rates and at the same time a good credit rating once again.
