You are here: Home / Archives for Bankruptcy information

After Bankruptcy

October 16, 2010 By Leave a Comment

Credit Report Repair by Credit Building

Tips To Improve Your Credit Score After Bankruptcy

Author: Thomas Jhon

When the court declares a person as bankrupt, it has direct adverse effects on his/her credit record. If you are one of those who are facing this painful situation, you must know that life does not end with bankruptcy. There are still plenty of ways to improve your credit score after bankruptcy. However, in order to know how to do that, you must first have a good understanding of how getting bankrupt affects FICO score. Lack of awareness may prove to be very costly for you. Once you get the right picture about that, you can easily figure out the steps you need to follow to improve your situation.

Effects Of Bankruptcy On Credit Score

If you are in a situation where filing for bankruptcy seems to be the only option, you are very much likely to have a very low credit score at this point. But, it is important for you to keep in mind that when you are declared as bankrupt, a large part of your credit record is deleted. Most of the negative items, such as late payments are removed from your report. The deletion of all these negative items offsets the mention of bankruptcy on your credit report to a great extent. It means your credit score after bankruptcy is not going to fall much further down. You will see a very little difference – if at all there is a difference.

You Are In A Different Category

Another thing that is very important for you to understand that the FICO score system has special provisions for people in bankruptcy. You will be put into a separate category, where the past financial history will not be taken into account to determine credit score after bankruptcy. Only the future use of credit is taken into consideration.

Monitor Your Credit Record

Monitoring of your credit record is very crucial at this stage. There are three major credit agencies and you can get a free copy of your FICO report annually from each of them. The idea behind monitoring is to make sure that your report is free from any kind of errors or omissions.

Pay Your Bills In Time

If you are serious about improving your credit score after bankruptcy, you must make it your top priority to pay all your bills in a timely manner. Any default at this stage is going to be very expensive for you. Even if you are in a situation where you think you are going to run late on payments, you must contact your lender and ask him to make some arrangements.

Likewise, you must also pay down your outstanding debts as soon as possible, as it will help you achieve a better credit score after bankruptcy at a faster pace.

Article Source: http://www.sooperarticles.com/law-articles/immigration-law-articles/tips-improve-your-credit-score-after-bankruptcy-25633.html

About Author:
Having been declared bankrupt by the United States bankruptcy court, you are bound to have adverse effects on your credit record. after bankruptcy. You may also look forward to paying your outstanding debts as soon as possibledebt consolidation loan.

Filed Under: Bankruptcy information Tagged With: , , ,

Corporation Bankruptcy

October 13, 2010 By Leave a Comment

fda peanut butter recall jpg

Corporate Bankruptcy Details You Should Know

Author: Poly Muthumbi

When a public company files for bankruptcy, everyone with a stake in the company, from employees to creditors to bondholders, is concerned about the future of the company and the outcome of the bankruptcy proceeding. As a result many tend to wonder who protect the shareholders interests and whether the old securities have any value when and if the corporation is restructured. Corporate bankruptcy refers to the legal filing process undertaken by businesses that have been overtaken by their debts.

Federal bankruptcy laws govern how companies go out of business or recover from huge dangerous debt crisis. A bankrupt company, the -debtor might use Chapter 11 of the Bankruptcy Code to restructure its corporation and try to become cost-effective again. Management continues to run the day-to-day business operations but all important business decisions must be approved by a bankruptcy court.

Under Chapter 7though, the company stops all operations and goes completely out of business. A trustee is appointed to sell or if you like liquidate, the company’s assets and the money is used to pay off the debt, which may include debts to creditors and investors. The investors who take the slightest risk are paid first such as the secured creditors take less risk because the credit that they extend is usually supported by collateral, like assets of the company. They know they will get paid first if the company declares bankruptcy.

Bondholders have a larger potential for recuperating their losses than stockholders, because bonds signify the debt of the company and the company has agreed to pay bondholders interest and to return their principal. Stockholders own the company, and take greater risk. They could make more money if the company earns good profits, but they could go down money if the company does badly. The owners are last in line to be reimbursed if the company does not succeed. Bankruptcy laws determine the order of disbursement.

A company’s securities may carry on to trade even after the company has filed for bankruptcy under Chapter 11. In most occasions, companies that file under this chapter of the Bankruptcy Code are generally incapable to meet the listing standards to continue to trade on the New York Stock Exchange. However, even when a company is deleted from one of these major stock exchanges, their shares may continue to trade since there is no federal law that bans trading of securities of corporate bankruptcy kind.

During corporate bankruptcy, bondholders will stop receiving interest and principal payments, and stockholders will stop receiving dividends. If you are a bondholder, you may receive new stock in exchange for your bonds, new bonds, or a combination of stock and bonds. If you are a stockholder, the trustee may ask you to send back your old stock in exchange for new shares in the restructured company. The new shares may be less in number and may value less than your aged shares. The restructuring plan will spell out your rights as an investor, and what you can expect to receive, if anything, from the company.

If the company does come out of corporate bankruptcy, there may be two different types of common stock, with different indicator symbols, trading for the same company. One is the old common stock -the stock that was on the market when the company went into bankruptcy, and the second is the new common stock that the company issued as part of its reorganization plan.

Poly Muthumbi is a Web Administrator and Has Been Researching and Reporting on Debt for Years. Visit Her Site at CORPORATE BANKRUPTCY

Article Source: http://www.articlesbase.com/banking-articles/corporate-bankruptcy-details-you-should-know-389070.html

About the Author

See other site on DEBT

See other site on PAY DAY LOANS LIFESPAN

Filed Under: Bankruptcy information Tagged With:

Filing Bankrupt

October 11, 2010 By Leave a Comment

government debt consolidation loans feat jpg

Filing Bankruptcy Online: For A Smoother Bankruptcy Process

Author: Judy

Now days, with the wide availability of bankruptcy form processing services on Internet, filing bankruptcy online has now become easier and the good part of the story is that the process is very easy and time saving. If you understand the legal requirements associated with filing bankruptcy and you know what are the forms that you need to fill and submit in this regard, you do not even require hiring a bankruptcy attorney to help you with the procedure of filing bankruptcy.
Ways To File Bankruptcy
In fact, there are plenty of ways you can use to file court petition for bankruptcy. For example, if you can hire bankruptcy lawyers to do the job for you or you can avail the various online bankruptcy services available on Internet, or if you are a legal expert and you know the ins and outs of the various bankruptcy laws, you may choose to go for personal filing.
How Much Does Filing Bankruptcy Online Cost?
Depending upon the type of filing process you have chosen, the costs will vary. For example, filing bankruptcy online for chapter 7 bankruptcy and chapter 13 may cost you somewhere around two hundred dollars or less, depending upon the type of bankruptcy you are filing for. If your bankruptcy case is a bit complicated and you know that you are not capable enough to defend your bankruptcy claims yourself successfully, it is always recommended to avail the valuable services of an expert bankruptcy attorney. They will never let you down. These days, even the bankruptcy lawyers choose to go for filing bankruptcy online, as it makes the process much easier and most importantly, it saves a lot of time both for the debtor and the bankruptcy attorney, but of course, it costs a little more.
Advantages Of Filing Bankruptcy Online
If you do not want to hire a bankruptcy attorney, it will be wiser for you to take advantage of the various online bankruptcy services. They are known as online bankruptcy form processors. They will help you in several ways. For example, when you submit your specific bankruptcy case to them along with all the relevant information, they will suggest you the right type of bankruptcy that you should claim for and they will provide you the right bankruptcy forms to fill. Once you submit those forms, they will review all the information you provided with the forms. If some information is missing, the online bankruptcy forms processor will inform you regarding the same and will ask you to submit the missing information.

Article Source: http://www.sooperarticles.com/finance-articles/bankruptcy-articles/filing-bankruptcy-online-smoother-bankruptcy-process-11450.html

About Author:
If you do not want to hire a bankruptcy attorney, it will be wiser for you to take advantage of the various online bankruptcy services. There are various alternatives available for filing bankruptcy such as chapter 7 bankruptcy and chapter 13 bankruptcy.

Filed Under: Bankruptcy information Tagged With: , , , ,

Bankruptcy Law

October 8, 2010 By Leave a Comment

American Bankruptcy Law Journal by fast hot rod

Four Questions To Ask a Bankruptcy Lawyer Before Signing

Author: BassFranklin

With the widespread changes that happened in bankruptcy law in 2005, it is more important than ever to hire a competent, experienced lawyer for a successful bankruptcy case. If you are considering filing for bankruptcy, you want to be fully informed about what a prospective lawyer can offer and what to expect from them before you sign a contract. Here are four questions to ask before signing a contract:

Should I file for bankruptcy or do I have other options?

This question covers a lot of ground and allows the attorney to talk with you about several different issues and discuss your options. It allows them to give a recommendation as to whether Chapter 7 or Chapter 13 is a better option for you, or even if there is an option outside of bankruptcy that you haven't considered. This overview will give you a clear understanding of the benefits and drawbacks of filing for bankruptcy and is a good place to start with a prospective attorney.

Who will actually be handling my case?

Sometimes the lawyer you are speaking to isn't actually the one who will be handling your case. It is important to know if they plan to pass the case on to someone else or will handle it themselves. There is typically a single hearing in bankruptcy cases, so if someone other than the lawyer you are speaking with is going to court with you, it is a good idea to talk to them so you can be comfortable with them and discuss the intricacies of your case.

How much of your time is devoted to bankruptcy cases?

If an attorney has 20 years of experience but only tries two or three cases a year, they won't be as experienced as a lawyer that does bankruptcy work exclusively for a much shorter period of time. Bankruptcy laws have changed, so it is important to know that your attorney is familiar with these changes and can make them work for you.

How much do you charge for your services?

This might seem like a no-brainer first question, but it is a good idea to ask it last. First of all, it gives you an opportunity to see all of the other services that the attorney plans to provide. There are a number of ways an attorney can request to be paid. Some work on cases on an hourly basis, while others may charge a flat fee, so it is a good idea to get an estimate of how much a case will cost. Additionally, it is important to know if there are any other expenses that may be incurred during their work that may be charged to you. Remember, like in so many other things, with a lawyer, you get what you pay for.

If you're searching for Los Angeles bankruptcy attorneys who will take your case from start to finish, visit blclaw.com or call the law office of Borowitz, Lozano & Clark at 800-509-3200 for a free consultation.

Article Source: http://www.sooperarticles.com/law-articles/four-questions-ask-bankruptcy-lawyer-before-signing-22152.html

About Author:
Brian Reed. Los Angeles bankruptcy attorneys Four Questions To Ask a Bankruptcy Lawyer Before Signing.

Filed Under: Bankruptcy information Tagged With: ,

About Bankruptcy

October 6, 2010 By Leave a Comment

365 Day 125* by pimpexposure

Advice About Bankruptcy

Author: Legal Helpers

Deciding to file for bankruptcy is never an easy choice to make. You must first weigh the pros and cons, and determine what type of bankruptcy you can file.

There are two major ways to file bankruptcy and you should know that it is not an easy process. You can do it on your own if you understand the laws and the two different types of bankruptcy you can file. First there is chapter 7; chapter 7 bankruptcy is the conversion of assets into money. This allows you to payoff debts quickly. With chapter 7 bankruptcy you sell your assets to pay your creditors and within a few months you have charge offs on your credit. Chapter 13 is the next method used to file bankruptcy in the United States. Chapter 13 is the repayment plan with little or no interest. This means that you file chapter 13 with the courts, then all of your debts are compiled and you are set up on a repayment of those debts to take place each month until it is paid off. This is the advised way to go if you have a steady job but just cannot make all your monthly payments.

When considering both of these options you may be overwhelmed by what is best for you and your situation. The best advice is to seek out legal council that can assist you in determining which type of bankruptcy you should file as well as help you with filing the papers with the courts.

When it comes to choosing an attorney to represent you in your bankruptcy case you want to ask some important questions to aid you in your decision. Do not consider fees and payment prices alone, as you should focus on other factors that are just as important if not more important.

Important Questions To Ask

Ask each attorney you speak with how long they have been in practice and what level is their experience as an attorney. Ask for the attorney’s qualifications and what areas they specialize in. Asking about fees and payments is also needed for your choice in choosing your bankruptcy attorney. Also ask yourself some questions. Questions such as does the attorney seem competent? Is his office staff organized and punctual? If you are able ask some questions about the attorneys client relationships. Law does prohibit an attorney from speaking about clients unless he has been given the permission from the client. These questions can allow you to make a solid choice on who will represent you.

Comfort And Confidence

When meeting with your attorney does he or she seem to be considerate of your concerns? Do you feel comfortable speaking to your attorney about all aspects of your bankruptcy decision? Do you personally feel confident that your attorney will be able to perform all his or her duties in your bankruptcy case? If you feel discomfort of any kind you may want to continue reviewing possible attorneys for your case. You have to feel safe enough to put your financial concerns in the hands of your attorney. This will allow the process of bankruptcy to be much less uncomfortable and to proceed much more fluidly for a positive experience.

Article Source: http://www.articlesbase.com/finance-articles/advice-about-bankruptcy-276490.html

About the Author
Legal Helpers is a debt relief agency helping people to file for bankruptcy relief under the bankruptcy code. We’re one of the largest consumer bankruptcy firms. Bankruptcy attorneys answer the phones six days a week and evenings.

Filed Under: Bankruptcy information Tagged With:
« Older Posts
Newer Posts »