Purchase a Home after Bankruptcy

Author: Sonia

     Filing a bankruptcy is a very stressful time in someone’s life. Along with discharging your debts, a fresh start seems like a draining task. You might wonder if you could ever purchase a home after declaring bankruptcy.

     The great news is, yes! These days, buying a home after bankruptcy is no impossible no more. Many online lenders and mortgage companies are offering special home loans to those who have bankruptcy declared on their credit report. Some lenders will approve your loan one day after the bankruptcy discharge.

     There are many reasons why a person has to file for bankruptcy. This includes, job loss, high medical bills and high credit card debts. The mortgage industry has created a special loan for those who filed bankruptcy in the past. They offer special packages and terms. With your home serving as collateral, the lending company has more confidence to approve your loan as soon as you are discharged of the bankruptcy. 

     You can get affordable payment rates and good interest from traditional and online lenders. The interest rates to date are much lower than they were decades ago. Do not let a bankruptcy deprive you from buying your dream house. After 18 to 24 months after the debt discharge, you can qualify for a home mortgage. What matters to the loan officer is not your bankruptcy history but your capacity to make a down payment and your income stability. The debt to income ratio is what could make or break your ability to purchase.

Here are several ways to purchase a property after your bankruptcy:

1. Get a copy of your credit report. It has been know that eighty-percent of credit reports contain mistakes strong enough to reject your capacity to get your home loan approved.

2. You can have those derogatory items removed with the help of a legitimate company authorized to do this job. They can assist you regarding this matter. Beware of frauds that assist you.

3. Pay your bills promptly. This will create a positive effect on your payment history.

4. Show more proof of your on time payments and amounts such as your rental history. This could help decide your mortgage price.

5. Try to apply for a secured credit card. This will allow you to deposit an amount of money and lets you borrow against it to create a positive payment history.

6. Provide a positive payment history, like your cell phone bills and car payments made on time.

7. Avoid large purchases such as cars and keep all your debts low to maintain your good credit payments.

     Following these easy guidelines can help you achieve your goal of buying your dream house for your and your family. If you diligently follow these, you will be smiling when you make your monthly mortgage payments. Bear in mind that not all is lost in a bankruptcy. The main thing is that you have the will and fierce determination to get back on the trail and move on.

Article Source: http://www.articlesbase.com/moving-and-relocating-articles/purchase-a-home-after-bankruptcy-1475961.html

About the Author

Amenities of a single family home at Townhomes for Sale in Cave Creek, reasonably priced homes at
New River Az Short Sale Realty for Sale and affordable homes in a breath taking scenery at Cheap Carefree, AZ Homes

Filing Bankruptcy - The Downside to Filing Bankruptcy

Author: Corey Landis

Depending on your current financial situation, bankruptcy might seem like the only answer. While in many cases this may be true, there are other solutions which might prove to be the better choice.

The biggest downside to bankruptcy is the fact that it remains on your credit report for up to 10 years. During this time it will be much more difficult for you to establish a positive credit history. Many credit applications ask if you've ever filed bankruptcy, so even if the 10 years have passed and it's not on your official credit report, you have to answer yes.

While your credit report will drop the bankruptcy after 10 years, the federal court has it on record forever. Those records are open to the public.

Your credit report can be checked when you apply for employment so a bankruptcy can affect your ability to get a job in some industries. Car insurance companies look at your credit score as a measure of reliability. A bankruptcy is looked at unfavorably and can result in denial of insurance, or insurance only provided at very high rates. When moving, it can even be the deciding factor in whether or not you live in the residence of your choosing. Many apartment leasing companies won't approve a lease to a person with a history of bankruptcy, even if they have the financial ability to now make the lease payments.

Another downside to bankruptcy is the cost. Recent changes in bankruptcy laws have initiated a huge increase in filing fees. While it's possible to file a bankruptcy without an attorney it's not recommended in complicated cases. Certain debts such as student loans and back child support can not be erased. Add the filing fees to the cost of retaining a bankruptcy attorney and you are talking about fees probably in excess of 00.

If you have equity in your home you may not be able to retain it but be forced to sell the home to pay off debts. While your debts may be high, if you have substantial assets it may be financially advisable to not declare bankruptcy.

One of the conditions of the 2005 changes in bankruptcy law now requires individuals to seek credit counseling prior to filing. If at all possible, you should consider using a credit counseling agency or even a debt consolidation service before deciding to go bankrupt. The credit counseling service must be government approved to satisfy this requirement.

Other changes require that if you can pay at least 0 per month towards debt payment you must file Chapter 13 instead of Chapter 7. Chapter 7 means all your debts (with the exception of back child support, taxes, and a few others) are forgiven and you come away with a clean slate. Chapter 13 requires that you come up with a strict repayment schedule based on your income and assets to pay off as much of your debts as possible within a 5 year period.

You will find yourself on the road to good credit much sooner, if you can utilize a method other than bankruptcy to help you get out of debt.

Article Source: http://www.articlesbase.com/finance-articles/filing-bankruptcy-the-downside-to-filing-bankruptcy-576361.html

About the Author
Corey Landis contributes to several websites including Credit Card and Debt Management and Loans as well as Ways to Find Money

Guide to Bankruptcy

Author: Jensen Carlyle

Bankruptcy is the final solution to dealing with your financial issues - it is the measure of last resort and should never be undertaken lightly nor without professional advice and assistance. In a nutshell, bankruptcy is where all your assets are liquidated and sold with the proceeds being distributed to your creditors; after a period of supervision, which is 12 months in the UK, you are now free and clear to restart your life without the burden of your debts.

The devil is in the detail - "all of your assets are liquidated and sold", and this includes your home, your business if you are self-employed, your vehicles and your investments as well as any savings if you have them.

The most common factor is of course, losing your home and having to move your family to usually, rented accommodation.

You can be made bankrupt in two different ways - voluntary bankruptcy is where you file your own petition with the court to have you declared bankrupt and involuntary bankruptcy, which is where a creditor who you owe more than £750 files to have you declared bankrupt.

The process is started by filing a petition with the High Court in London or if you live out of the London area, with your local county court. The Official Receiver, a court officer who is appointed by the Secretary of State, will then advertise the bankruptcy in the London Gazette which is a publication dealing with legal notices. They are responsible for acting as your trustee in bankruptcy and are required to oversee the liquidation of your assets and the fair distribution of them to your creditors. They are also required to ensure you are honest in your dealings and are not concealing assets from your creditors. In addition, they are also responsible for making sure the bankruptcy notice is distributed to the various agencies involved and who have an interest in any bankruptcy order such as HM Land Registry, bailiffs, other courts handling your financial issues, and HM revenue and Customs.

An Insolvency Practitioner may be appointed as your trustee in bankruptcy as an alternative to the Official Receiver. An Insolvency Practitioner is a qualified professional who is authorised to act as your trustee in bankruptcy and do all of the functions normally performed by the Official Receiver. They will also perform the supervision of your finances for the next 12 months until you are eligible to be discharged. Discharge is usually granted after the 12 month period and you are now a discharged bankrupt and free to pursue your life without any financial supervision or restraint though the fact you have been declared bankrupt will be recorded and obtaining credit and a mortgage to buy a home may be more difficult.

Bankruptcy may be a simple and relatively quick method of clearing your debts but it is not suitable for many people; indeed, there are a number of other methods for dealing with your debt situation which do not include losing your home. It is absolutely vital that you seek professional and independent advice at the very earliest stage - the sooner you seek advice then the quicker and easier it will be to come up with an alternative that falls short of losing your home and assets.

Article Source: http://www.articlesbase.com/finance-articles/guide-to-bankruptcy-1348878.html

About the Author
Talk About Debt is the UK's premier online portal and web forum for free debt resources including links to all the major debt charities and professional organisations. CLICK HERE for Talk About Debt http://talkaboutdebt.co.uk

Chapter 7 and Chapter 13 Consumer Bankruptcy Filings on the Rise in Texas

Author: Tony Bertolino

Of course, it is not just happening in Texas. Men and women in households around this country are facing difficult financial decisions in light of our current economy. The questions being raised around the dinner table can range from how to scale back the summer vacation plans and who is going to be responsible for clipping coupons this week to which bills can go unpaid until next month and how to let your youngest child know that the plans to attend her dream college needs to be put on hold. What are the options available to an individual or a family that needs to see some improvement in their financial standing or else face dire consequences? In an effort to avoid a home foreclosure, many people try to sell their homes and look for a new place to live with a lower rent or mortgage payment. But, with today's housing market, properties can have "For Sale" signs planted in their front yards for months before an interested buyer is found. More and more debtors are turning to debt consolidation services, which promise on those daytime and late-night television ads to lower your monthly payments into one manageable fee. However, what if your situation is so desperate that these options will not be enough to ease your burden? As Texan debtors and others throughout the United States are deciding, filing for bankruptcy protection may be the best option in these troubling economic times.

The recent numbers concerning bankruptcy in our state show what is increasingly becoming a harsh reality for our fellow Texans, particularly in Austin, Houston and San Antonio. Just in the first few months of 2009, court records indicate that approximately 2,672 bankruptcy cases have been filed in Houston. This number shows a 6.2% increase over the 2,515 cases that were filed during the same time period last year. The jump in filings in some of our other major cities is even more startling. In San Antonio, the bankruptcy filings for the first three months of 2009 totaled 1,127, which is a 22.5% increase from the 920 such filings, which occurred between January and March of 2008. And, the numbers indicate that those living in our state capitol in Austin are also trying to relieve themselves of some of their overwhelming financial burdens. Bankruptcy filings of all types in the Austin area totaled just over 800 in the first quarter of 2009, which is up 25% from the same period last year. Despite data that shows more Texans are struggling to maintain their personal financial standing, our state is still faring better that most others in the country. Last year, Texas ranked forty-sixth in the nation in bankruptcies, even better than our 2007 ranking which placed us at number thirty-nine. Of course, this relatively good news does nothing to lessen the pain of each individual who is facing bankruptcy.

For those who are considering the option of declaring bankruptcy, you should be aware of the state and federal laws that affect such filings in Texas. There are two options available to individuals—Chapter 7 or Chapter 13 bankruptcy.

Chapter 7, the most common approach, is considered straightforward liquidation bankruptcy in which your non-exempt assets are handed over to a trustee appointed by the court and then converted into cash to pay your creditors. In reality, most people who file Ch. 7 have no non-exempt assets to sell and the Ch 7 bankruptcy filing essentially becomes a fresh start for their finances. The federal bankruptcy laws in Texas have deemed it so you can determine if you want to use the federal exemption statutes or the Texas statutes when cataloging the assets that creditors are not allowed to touch. With Texas having the most generous list in the country concerning what debtors may keep, most bankruptcy filers choose to follow the Texas guidelines. You are eligible for Ch 7 bankruptcy if your income is below that of the median family income in Texas, as determined by U.S. Census Bureau statistics. If your income is higher than this determined amount, the court can look at your income over the past six months as well as your current expenses to decide if you qualify.

If the bankruptcy court determines that your financial standing makes you ineligible for a Ch 7 filing, then Ch 13 may be the most appropriate action for you. Under this system, known as debt reorganization bankruptcy, debtors develop a payment plan that will repay creditors over a period of three to five years. If you have some non-exempt assets that you wish to retain even after declaring bankruptcy, you may prefer to file as a Chapter 13 bankruptcy. This also holds true for people who have debts such as taxes or students loans that cannot be cleared through a Chapter 7 bankruptcy.

While a Chapter 13 filing may be seen as similar to working with a debt consolidation service, as both set up regular payments with the intention of bringing you current with your creditors, individuals looking for financial relief should know there are differences in the two options. With Chapter 13, you get the assurance of a court-appointed trustee (who may or may not be lawyers) who works with you to make sure that payments are appropriate and processed correctly. On the other hand, some private companies may be scams out to make a profit by charging exorbitant fees and they may not even result in the credit relief you desire. Such contracts should only be signed after completing extensive research on the company and reading the experiences that others have had.

Filing bankruptcy may seem like a wonderful solution to a financial crisis that has been draining you for years and this is true in many cases. However, you must remember that when you hire an attorney and declare bankruptcy you are affecting your assets, your credit score, and creating a record that is available to the public. It is essential that you have an effective and thorough bankruptcy lawyer who will be by your side as you navigate through the bankruptcy courtroom proceedings and the cumbersome paperwork. Mistakes can result in losing assets that you consider essential to protect. And, if you fail to report some of your assets, federal criminal charges may result. Why take any chances with your money, your treasured belongings, and even your future? If you may be filing a Chapter 7 or Chapter 13 bankruptcy soon, your first step should be a phone call to an experienced bankruptcy attorney.

Article Source: http://www.articlesbase.com/law-articles/chapter-7-and-chapter-13-consumer-bankruptcy-filings-on-the-rise-in-texas-976017.html

About the Author

Tony R. Bertolino is the managing partner of Bertolino LLP, a law firm with attorneys in Austin, Houston, and San Antonio who practice bankruptcy law. The attorneys at Bertolino LLP can assist with both Chapter 7 bankruptcy and Chapter 13 bankruptcy cases.

Bankruptcy – What Can We Expect in 2010

Author: Thomas Ajava

There is little doubt that most people and businesses are glad to see 2009 pass, but what does 2010 hold in store particularly when it comes to bankruptcy filings? Let's take a look.

The 2009 calendar year saw the bankruptcy filings of companies that were once thought impervious to such a development. Two that immediately come to mind are Chrysler and General Motors. Both filings were fairly quick because the nature of the reorganizations were figured out before the filings were made. This presents us with our first trend in 2010.

We can expect to see more pre-packaged bankruptcy filings this year by large businesses. This type of bankruptcy has always been around, but it was turned into an art form in 2009. The basic idea is to put the screws to the creditors while threatening a bankruptcy filing. Those creditors that don’t agree to the deal being offered are then washed away in bankruptcy while those that agree come out the other side with some interest still in the company, often an equity interest.

The second trend we will see in 2010 is the continuation of huge bankruptcy filings. The difference is you and I will not recognize many of the names. These companies will be behind the seen entities. The number on industry where this will occur is in commercial real estate. Everyone from mall owners to brokers to, well, anyone associated with the industry is going to be in big pain. 2009 started the commercial real estate market implosion, but 2010 will see the biggest bloodletting.

The third development will be the continued “hidden” second great depression. People say we were saved from a great depression, but this isn’t true. The key is the banks. More banks failed in 2009 than 2007 and 2008 combined. The government is just doing a good job of keeping the news under wrap. Ah, and what about unemployment? Well, the reported rate is just over 10 percent. In truth, it is closer to 20 percent. The official rate does not include people who are working part time or haven’t had a job in a year. All of this will lead to more personal and business bankruptcy filings.

Is there any economic hope in 2010? Yes. The good news is we’ve stabilized from a confidence stand point. That is important because it means people will go out and spend at least a bit on things. I just bought an exercise bike! Regardless, the panic of 2009 has ended and one can expect a bit of stability in 2010. Will there be a recovery? Technically, we are already in one, but the effects won’t be felt by people like you and I until the end of 2010 or early 2011. Still, that is better than where we were in January 2009.

Article Source: http://www.articlesbase.com/bankruptcy-articles/bankruptcy-what-can-we-expect-in-2010-1677236.html

About the Author

Thomas Ajava writes for BankruptcyAttorneysandLawyers.com - where you can find bankruptcy attorneys and lawyers in your area that will put an end to your financial misery.

Claiming Bankruptcy

Author: Steven Medvin

Bankruptcy is a legal proceeding that occurs when an individual or business cannot repay debts, and there is not another option to satisfy the collection effort.  Although this process may devastate an individual or business's credit for several years, it will lessen the immediate embarrassments and stresses of bill collection and unpaid debts.

Bankruptcy may become a process that is tedious and difficult to overcome.  There are numerous state regulations, exemptions and forms that must be completed to fulfill a lawful statement of bankruptcy.  A lawyer can not only assist in completing the necessary paperwork, but can also help choose which Chapter of bankruptcy best fits your financial situation.

There are four types of bankruptcy under law:

Chapter 7 - This type is referred to as 'liquidation' or 'straight' bankruptcy.  In Chapter 7, the individual in debt is to liquidate all properties that exceed exemption limits, to pay off collecting creditors.  With straight bankruptcy, a petition to the court is filed to eliminate all debts, in exchange for your property.  Chapter 7 can only be filed six years after the date of the previous filing.

Chapter 11 - This type of bankruptcy is mainly used by businesses.  Very few individuals file Chapter 11 bankruptcy.  Although, if a debtor has an extremely large amount of debt, a lawyer may refer this option.

Chapter 12 - This chapter of bankruptcy is reserved only for family farmers.

Chapter 13 - Chapter 13 bankruptcy requires a debtor to create a payment plan for which to repay collectors of unpaid debts.  With this, collectors will receive their payments from substantial withdraws from a current income.  This chapter will allow an individual to keep property such as a house or vehicle, which may be lost in other bankruptcy filings.  The court system must accept your payment plan, for the filing to take place.  Chapter 13 bankruptcies can be filed at any time, without a waiting period between filings.

Any of these filings can take between seven to ten years to clear from your credit record.  It is important to attempt to rebuild your credit score, while these claimant years take place.  Beware of fraudulent advertisements for an easy rebuild of credit.  There is not a simple fix to starting a fresh credit report, although with time, your credit may be stronger than it was initially.

There are several financial problems that bankruptcy cannot cure.  To name a few:  child support, alimony, criminal fines, some taxes and variant student loans.  Debts that also occur after bankruptcy has been filed will not be cleared after the filing has been submitted.  Also, if anyone has co-signed on an individual's loans or unpaid debts, the co-signer may have to repay the debt completely.

There is much information to gather before and after filing for bankruptcy.  Although bankruptcy may assist with the financial problems of the moment, there is much that makes up a lawful bankruptcy filing.  As always, it is in your favor to understand the law and its requirements.

Article Source: http://www.articlesbase.com/bankruptcy-articles/claiming-bankruptcy-2727751.html

About the Author

Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit: http://www.smpadvance.com

Act Quickly As Bankruptcy Fees Are Set To Rise Next Month

Author: Steve Thatcher

Time is fast running out for those of you seeking to go bankrupt before the Official Receivers' deposit raises from £360 to £450 on 6th April 2010. The fee rises are part of the governments plan to make the Insolvency Service self funding.

It cannot come at a worse time however for those seeking relief from their debts. It is hard enough now for a potential bankrupt to find enough to cover the petition costs and deposit without a 20% rise in these costs.

It actually may also not be possible to get into court and have your petition heard before the 6th April even if you could get your paperwork completed. Each county court up and down the land have different rules as to how they wish you to present your petition for bankruptcy to them.

Operating across the midlands we have come across the following procedures:-

Leicester:- You can attend at court on any day Monday to Thursday between 11 and 3 to present your petition and then you come back the next day to collect the order. It is rare that you need to see the District Judge.

Coventry:- You need to book an appointment. These can be as much as three weeks ahead now. You attend at the set time and the paperwork is checked. Their system is designed for the petitions to be heard at 2pm, but experience shows that they will try to get you before a District Judge within about 20 minutes, other appointments permitting. You will see a Judge but you will be dealt with in one day.

Stoke on Trent: Very similar to Coventry, except that they only need one set of papers, not three like every other court.

Birmingham: Again similar to Stoke and Coventry except there is a bit of running around to have papers checked at one counter, pay a fee at another and see a Judge on another floor, then back up again to collect the order.

Nottingham: Similar to Coventry, but appointments begin very early and they try to get you seen as quickly as possible.

Northampton:- You can turn up here any day at 10 am. They will check the paperwork, and then you leave. The District Judge considers the papers within 24 hours and the order is sent to you by post within about five days. Very quick and very simple procedure.

If you need help and advice on bankruptcy please call me

Article Source: http://www.articlesbase.com/debt-consolidation-articles/act-quickly-as-bankruptcy-fees-are-set-to-rise-next-month-2046210.html

About the Author

Contact Steve Thatcher a qualified solicitor with Help With Debt (UK) Limited the total debt solutions company. For all further reading see http://www.helpwithdebtuk.com

For personal contact, email sthatcher@helpwithdebtuk.com. If you have any debt problem whatsover either personal or corporate make Steve your first call on 0808 160 5577. All telephone advice is free.

Bankruptcy Filings - 2008

Author: Ryan Tenney

According to some recent stats, both personal & corporate bankruptcy filings increased from 2007 to 2008. Bankruptcies seem to be rising in many states & some people think that the numbers will only continue to rise in the immediate future...

In fact, in 2008, the number of bankruptcy filings is expected to exceed 1 Million! One of the more common reasons that some people file for bankruptcy are large medical bills that can't be easily paid back. Another common reason is the loss of a job. And finally, unsecured debt, like credit card debt, can get very large, very quickly, if not properly managed.

Furthermore, as many consumers have recently discovered, debt levels become unmanageable when they are the result of large increases in fixed expenses. If more money goes out than comes in every month, debt levels can become difficult to manage.

For instance, imagine a hypothetical consumer who signed up for an adjustable rate mortgage in 2005. If that consumer's mortgage payment was originally 00 per month & it readjusts to 00 per month, where will the 00 difference be made up? If that particular consumer doesn't get a substantial raise to cover the difference, how can the increased amount be paid every month? The extra 00/month has to come from somewhere....With current U.S. savings rate at 0%, is it realistic to think that people will be able to come up with the extra amount every month?

During the 1990s, some banks started extending generous credit lines to consumers through credit cards. Credit was easy to get & consumers used credit cards to purchase just about everything imaginable. The added reward points & bonus' made credit cards very convenient for a lot of consumers. Credit cards can make life easier for a lot of consumers because they make it easy to manage and track expenses.

However, as stated above, principal amounts & fees can compound very quickly if they are not paid off.

Nationwide, courts are seeing double digit increases in the number of people filing for bankruptcy protection. And, not surprisingly, bankruptcy filings are reported to have increased substantially in many states that experienced both the "housing bubble" & the resulting wave of foreclosures...Arizona, California, Florida & Nevada are four states that have seen double digit increases in the number of bankruptcy filings from 2007 to 2008.

Furthermore, according to some statistics, while some costs have increased recently, incomes have not kept up with increased expenses. Especially energy costs. Take a look at the latest gas or power rates. According to the latest BLS.gov CPI stats, energy costs have been increasing more than 15% per year for the last 6 years at least! Have incomes increased enough to match the increased expenses?

Probably not.

So, are expenses that over run incomes the reason why so many more people are filing for bankruptcy protection? These are not easy questions to answer today, given the apparent contradictions in both inflation and deflation, not to mention many other factors that aren't easily identifiable.

However, more people are apparently filing for bankruptcy protection & some experts think that the trend may continue.

Article Source: http://www.articlesbase.com/finance-articles/bankruptcy-filings-2008-541928.html

About the Author
Get 100% live bankruptcy news & information, click here: http://www.bankruptcyaccess.com.

Before you declare yourself bankrupt, you should take time to carefully consider all of your options as there may be better alternatives in your situation. You may be able to pay off your debt over time by bringing in additional income, or you can try working with creditors to reduce your overall obligation.

Even something as simple as transferring your credit card balances to another card with a lower interest rate can be quite helpful. Before you take this strategy, however, you should be careful since this is just another loan that you have to worry about. It will not solve your problems by itself, and if you continue with your current spending habits you could find yourself in an even deeper hole. Transferring to a lower interest rate can bring some relief, though, as part of a more comprehensive debt reduction program.

After going through all the alternatives, you may come back to bankruptcy as the best or only option for you in your current circumstances. This may be a bit discouraging for you, but it should not be a reason for despair. You do need to make sure that your decision has been well researched and that you understand the basic process.

You need a good lawyer to help you with your case because the process has become more complex with the recent changes in the bankruptcy code. There are also various laws which vary by states, even though there are Federal laws that provide some uniform standards. For example, declaring bankruptcy in California may not be the same as declaring bankruptcy in Texas, especially when it comes to your homestead exemption.

The homestead exemption, by the way, protects your house from creditors if you file for bankruptcy. For example, if you're trying to get rid of tens of thousands of dollars of credit card debt, your creditors cannot go after your house if your state has a homestead exemption. Of course, you still have to pay your mortgage, and you may still have to deal with foreclosure if you don't pay your lender for your house payments.

Don't let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn more about declare yourself bankrupt visit us at http://personalbankruptcyquestions.org