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Iva Bankruptcy Loan and Information

February 28, 2010 By admin Leave a Comment


Have you been finding it very difficult to deal with multiple debts and are considering going for bankruptcy? Before choosing this option, it is advisable you gather all the information about bankruptcy. Bankruptcy has serious implications. It has long term effects. Hence seeking prior information can help one deal with the situation well.

One can find IVA and bankruptcy loan and information from scores of experts. There are many financial experts offering this advice online too. These experts will help you figure out if you really need an IVA, or should consider going bankrupt. If you are experiencing creditor pressure or fighting bankruptcy fears, you might need IVA.

What is an IVA?

IVA stands for Individual Voluntary Agreement. An IVA is a government backed, legally approved solution to your debt problems. Introduced as a part of the Insolvency Act of 1986, IVA is an agreement with your creditors which helps reduce your monthly payments, freeze interest rates and write off your debts in time (generally less than five years).

There are numerous advantages of an IVA:

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Five Rules to Consider Before Filing Banckruptcy

February 27, 2010 By admin Leave a Comment


Upon first recognition that you need to take drastic measures against your mounting pile of bad credit, it can be overwhelming. So many different avenues to take, do you want to file chapter 13 bankruptcy or do you qualify for chapter 7? And how exactly is chapter 11 bankruptcy any different? You've made the tough decision to file bankruptcy, now you just don't know where to start. Here are some tips on what to do first when facing a financial crisis.

Bankruptcy Rule 1: Stop using your credit cards. Using credit cards with intent to file for bankruptcy will give creditors the opportunity to challenge your discharge of the debt. If you've accumulated the debt knowing you could not repay it creditors have the option to nullify your debt discharge- usually done through a lawsuit or adversary proceeding. Lesson one, no more charging. Period.

Bankruptcy Rule 2: See to it that there are no other options for you to utilize. Between debt management, credit counseling, and all the untrustworthy organizations promising a quick fix, there is no doubt that it will require some homework. But do your research and make sure that there isn't a more gentle method of cleaning up your credit before you resort to the big "B".

Bankruptcy Rule 3: Once you've narrowed down your options and filing bankruptcy is the only one that seems like it will work for you and your situation, find a good lawyer. Many people try to go through this process on their own and end up losing big in the end. Proper legal council will guide you through the process, offer advice on which chapter of bankruptcy is best for you, and will be a huge asset if it comes down to negotiating for better terms with your creditors.

Bankruptcy Rule 4: Figure your costs. Bankruptcy filing fees vary widely from state to state and naturally different lawyers will have different fee schedules, some charging a flat fee, others charging based on how deeply you are in debt. Still other require you to pay up front before they even start the process, but once you have started working with a lawyer, refer all creditors to this office.

Bankruptcy Rule 5: Depending on whether you're filing for chapter 7 or chapter 13 bankruptcy, prepare to give up some of your belongings. Exempt items such as tools of your trade and low value heirlooms are considered exempt items. All others fall in the non-exempt category and are likely to be sold so that payments can be made to your creditors. Payment amounts differ between chapters; in chapter 7 bankruptcy you may never have to pay a creditor and had all of your debt written off. However if filing for chapter 13 bankruptcy you will be put on a three to five year payment plan at the end of which any outstanding debt will be written off. Again a good lawyer will be able to tell you which one would help more for your specific situation.

If you file chapter 7 bankruptcy, on the 60th day after meeting with your creditors to negotiate the terms of your bankruptcy declaration, your creditors forfeit the right to challenge any and all of your discharge and you will receive a notice of discharge. This notice will come within 30 - 60 days after your final payment under a chapter 13 bankruptcy filing Best of luck in all your endeavors and may your financial recuperation be speedy.

Nathan Dawson writes for http://www.mybankruptcycounseling.com a great online source for finance information regarding bankruptcy laws, alternatives and support.

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Fail Out of Bankruptcy: What Happens When Debtors Cannot Repay Debts?

February 27, 2010 By admin Leave a Comment

Fail out of bankruptcy refers to people who have filed for Chapter 13, but are unable to adhere to their repayment plan. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 mandates debtors must repay a portion of debts unless their income level is less than their states' median income. Under BAPCPA requirements, debtors must contribute a large percentage of disposable income toward debt repayment.

When individuals fail out of bankruptcy, creditors can file a petition through the court requesting the bankruptcy be dismissed. When Chapter 13 bankruptcies are dismissed, debtors lose all protection from the court and creditors can commence with collection action, including foreclosure.

Oftentimes homeowners will file for Chapter 13 bankruptcy to avoid foreclosure. If borrowers are able to maintain their regular mortgage payment and adhere to their bankruptcy repayment plan, Chapter 13 can be a saving grace.

Unfortunately, most homeowners fail to understand that in addition to maintaining monthly mortgage payments, they must also repay mortgage arrearages. Homeowners who are already struggling to make ends meet are seldom able to pay additional funds to prevent foreclosure.

When homeowners fail out of bankruptcy mortgage lenders can initiate foreclosure proceedings at the point where they were suspended when the bankruptcy petition was filed. For instance, if foreclosure would have occurred within 30 days, the bank can foreclose on the home within 30 days of the borrower missing a Chapter 13 payment.

When debtors are unable to adhere to their chapter 13 repayment plan they should immediately contact their bankruptcy attorney. If the debtor has encountered a temporary financial setback, the attorney can usually convince the bankruptcy Trustee to work with the debtor to get back on track and avoid failing out of bankruptcy.

Filing for bankruptcy protection can help debtors reorganize their debts and get back on track with finances. The new bankruptcy laws require debtors to undergo credit counseling through an approved agency either prior to or during bankruptcy proceedings. Debtors must present a credit counseling certificate and proposed repayment plan to the bankruptcy judge.

Before filing for bankruptcy, debtors should investigate debt reduction alternatives. These might include debt consolidation, debt settlement, credit counseling and budgeting.

Bankruptcy filings remain on credit reports for ten years. Debtors who fail out of bankruptcy are rarely able to obtain any type of credit. Those who do are certain to pay high interest rates and have exceptionally low credit limits.

Personal bankruptcy can adversely affect other areas of life. Individuals with poor credit and bankruptcy filings typically have to pay more when renting a home or apartment. Landlords oftentimes require high-risk renters to pay first and last month rent, along with a security deposit.

Utility companies will charge security deposits which can be held for two or more years. Debtors are often forced to purchase automobiles through "Buy Here Pay Here" lots and end up paying much more for the vehicle than it is worth. Many banks will not allow consumers with bankruptcy filings to open checking or savings accounts. Insurance companies can charge higher premiums for automobile and home insurance.

Take time to become educated about the process of bankruptcy and the ramifications of failing out of bankruptcy. While it can be tempting to file bankruptcy to stop creditor harassment, the long term affect can be devastating.

Simon Volkov is a California real estate investor who specializes in offering solutions to individuals who fail out of bankruptcy and those facing foreclosure. If you can no longer adhere to your Chapter 13 repayment plan or in fear of losing your home, submit your property information via the "we buy houses" form at www.SimonVolkov.com today.

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Debt Consolidation Loans to Avoid Bankruptcy and Iva’s

February 27, 2010 By admin Leave a Comment


Earlier there were very few options to help people manage their debts easily. Once the debt level got too high to manage, people needed to declare them bankrupt or go for individual voluntary arrangements. But things are changed now as we have highly effective means like debt consolidation loans to resolve our debt problem.


To put it simply, debt consolidation loans are the loans used to pay off your existing debts. Paying off the outstanding debts with this loan means that you have only one lender to deal with and only one loan to manage. Still you are not out of your debt obligation. Your debts still exist, but in a different form. Your debts are all merged into debt consolidation loan.


Then what does the debt consolidation loan do if your debts are still there? Well, debt consolidation loans do not bring an end to your debts then and there. But, of course, they make your debts easily manageable so that you pay off it and avoid bankruptcy or IVA's. The financial stringency will not be there and you will start saving some money each month.


Lenders in UK offer debt consolidation loans with and without collateral. This makes the loans accessible to all, homeowners as well as tenants. Homeowners have the privilege of taking out both secured unsecured debt consolidation loans. But tenants will have to be satisfied with unsecured one only.


It is not the matter in which way you take a debt consolidation loan. Both types of debt consolidation loans will contribute to lower the interest rate and provide you with longer repayment term. So, getting out of your debts will become quite easy.

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Debt-Consolidation-For-The-Stress as a Finance specialist.

For more information please visit: www.debt-consolidation-for-the-stressed.co.uk

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Greatest Bankruptcy Weapon: the Automatic Stay

February 27, 2010 By admin Leave a Comment


The Debtor's Greatest Weapon, The Automatic Stay

Immediately when your bankruptcy case is filed, an automatic stay is created. An automatic stay is the equivalent of a restraining order that prevents creditors from taking certain collection actions against you. These collection actions include: Telephoning you at home, at work or on your cell phone; Filing lawsuits against you or continuing with lawsuits that are already in progress; Repossession attempts; Foreclosure proceedings; Wage or bank garnishments; Recording any liens or judgments; Anything that attempts to collect a debt or improve a creditor's position as it relates to you and your underlying debt.

The Automatic Stay Is Not Absolute

There are exceptions to the automatic stay, especially in the case of re-filings. Creditor actions are not stayed in the following circumstances: Criminal actions. Filing a bankruptcy case will not prevent Federal, State or local authorities from pursuing their criminal action against you. Lawsuits involving child support or spousal support are not stayed and can be pursued despite your bankruptcy filing. Actions by governmental units to enforce a police power are not stayed.

Recent Changes

There are many changes that have occurred in the area of automatic stays since bankruptcy reform generally went into effect October 17, 2005. The major changes have to do with repetitive bankruptcy filings. If you file a second bankruptcy case within one year of a prior filing, the automatic stay will only go into effect for thirty days, unless you can prove to the court that the second filing was filed in good faith. You must file a motion and have it heard before the Judge, prior to the expiration of the thirty day period. The motion can be brought against one particular creditor, or more likely, against all creditors. After notice and a hearing, the court will rule one way or another. You have the burden of proving that the second case was filed in good faith. This can be accomplished by showing a positive change in your circumstances such as higher, more stable income. Another example would be if you recovered from a serious medical condition which had previously prevented you from gainful employment. If you file a third bankruptcy case within one year of two prior filings, the automatic stay will not go into effect at all. You can attempt to invoke the automatic stay by bringing a motion, similar to the one mentioned above, showing that the third filing was made in good faith. Although not impossible, it would require a very compelling reason to convince the court to allow the stay to be imposed on a third filing within one year. In eviction cases, if the landlord has already obtained a judgment for possession prior to the bankruptcy case filing, then there is no automatic stay. You should file your bankruptcy case prior to the landlord obtaining a judgment so that the stay can go into effect. There is also no stay if the eviction is based upon endangerment of the rental property or an illegal use of controlled substances is occurring on the premises and the eviction started prior to the bankruptcy case being filed.

David M. Siegel is the author of Chapter 7 Success: The Complete Guide to Surviving Personal Bankruptcy. He is a member of the American Bankruptcy Institute and currently practices bankruptcy law in Chicago and its surrounding suburbs. Additional information is available at http://www.bankruptcy-lawyers-dallas.com .

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