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Bankruptcy Credit Line

August 9, 2010 By admin 9 Comments

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Reestablishing Your Credit After Bankruptcy

Author: Eulalia Allmand

When it comes to reestablishing your credit after a bankruptcy, the first thing that you must consider is how long you should wait. Not everyone's circumstances are the same; some will not have the extra income to take on debt, some will still be repaying old debt based on their Chapter 13 bankruptcy repayment schedule, and they will all have a different credit score.

However, when you do finally decide that you are ready to begin the process of rebuilding your credit profile, there are different roads that you can take. Which method you are able to start out with will depend largely on what your credit score is and what your overall credit profile looks like. For many, it can take 5 or more years to get their credit back to where it was or they may have to wait for the bankruptcy to fall off of their credit report altogether.

Secured cards are one of the best ways to reestablish your credit profile when you continually get denied for unsecured cards. With a secured card, you will send the lender a check for a certain amount of money (usually 0-0) and they will send you a credit card that has an equal credit limit. Even though they have your money, you will still receive a monthly bill. Your bill will include interest and late payment fees if you don't pay it in full every month. The idea is that, if you default, the lender can use the money you sent them to secure the card toward your debt.

Eventually, if you use your card responsibly and pay on time, the lender will unsecure your card by sending you back your money (sometimes with interest) and allowing you do keep your credit line. Although you may be able to qualify for a low-limit, high annual fee unsecured credit card (for example, a 0 credit line that comes with a 0 annual fee), a secured card may still be a better option because you will eventually get your money back and you won't have to pay the high fee each year to keep the card listed as "open" on your credit report (which is important when rebuilding credit).

All in all, it is important to remember that, as someone who has been through bankruptcy before, the last thing you need is to get trapped by predatory lenders who will loan you money and then charge you ridiculously high interest rates and fees. These lenders will be the first to line up at your post-bankruptcy door, but the best thing to do is to avoid them so that you don't end up in over your head once again this time with no way out.

Article Source: http://www.articlesbase.com/finance-articles/reestablishing-your-credit-after-bankruptcy-390126.html

About the Author

Fort Worth Bankruptcy Attorneys Allmand & Lee specialize in consumer bankruptcy and offer bankruptcy services that help good people through one of the toughest times in their life. For more information please visit us at http://www.allmandandlee.com/



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Pre Bankruptcy Credit Counseling Ny

August 8, 2010 By admin Leave a Comment
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The New Bankruptcy Law: Information you Need to Know Before you File

Author: Liz Roberts

The new bankruptcy law is in effect, and the climate has drastically
changed for people who are considering bankruptcy. In this article we
will touch on some of the details of the new law, and explain exactly how
these new changes will affect you.

First, let's touch on the new counseling requirements. According to
the new law, you must complete credit counseling with an agency approved
by the United States Trustee's office before you can file for
bankruptcy under either Chapter 13 or Chapter 7. Because this counseling is to
decide whether you need to file for bankruptcy, or if an informal
payment plan would be a better alternative for your situation. The counseling
is mandatory for everyone, even for people who know for certain that a
repayment plan is not what they want.

However, you are required only to join in the counseling; you do not
have to go with any repayment plans the agency recommends. But if you are
given a plan, you will have to present the plan to the court with a
certificate showing that you attended the counseling before you can file
for bankruptcy. Once your bankruptcy case is over, you will have to
attend another counseling session focused on learning personal financial
management skills to complete your bankruptcy and erase your debts.

Another major change that comes with the new law effects many people
who want to file chapter 7 bankruptcy. Under the old law, most people
filing could choose between Chapter 7 and Chapter 13,and most people
chose Chapter 7. Because of the new law, many filers with higher incomes
will be prohibited from using Chapter 7.

The first step in determining whether or not you can file for Chapter 7
is to compare your current monthly income to the median income for a
family of your size in the state you live in. In the context of the new
law, your current monthly income is not your income at the time you
file, but your average income over the last six months before you file.

Once you have determined your income, measure it against the median
income in your state. If your income is equal to or less than the median,
you can file for Chapter 7. If it is more than the median, you must
pass a requirement of the new law called the means test. The means test
requires you to determine your amount of "disposable income" by
subtracting different variables from your current monthly income.

If your current monthly income after subtracting these amounts is
under 0, you pass the means test, and will be able to file for Chapter
7. If you income is more than 6.66, you will be prohibited from
using Chapter 7. Those in the middle of these incomes will be able to file
for chapter 7, but will be required to still pay a percentage of their
debt.

Yet another important change caused by the new law is that lawyers may
be harder to find, and possibly more expensive. The new law has added
many complex requirements to the process of filing for bankruptcy that
will make it more time consuming for lawyers to represent their clients
in bankruptcy cases. The end result being that attorney fees for
representation will increase. Also, the amount of time that lawyers must put
into the new regulations has increased and it is likely that it may be
harder to find a lawyer that solely specialized in bankruptcy in the
future. Many experts are predicting that the stress of these new
requirements may drive some bankruptcy lawyers out of the field completely.

Now that you know many of the changes the new bankruptcy laws hold for
your situation, be aware and file with care.

Article Source: http://www.articlesbase.com/finance-articles/the-new-bankruptcy-law-information-you-need-to-know-before-you-file-51523.html

About the Author

Liz Roberts is a loan consultant with NewHorizon Finance and has been providing consumers and business owners with financing since 1989. Join our mailing list for FREE tips on building and repairing your credit . We also have a list of recommended bad credit credit cards
Copyright 2006


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Bankruptcy High Point Nc

July 24, 2010 By admin 2 Comments
(Charlotte, High Point ...

What Are Bankruptcy Lawyers?

Author: James Hunaban

Bankruptcy lawyers can be the savior of people who have made the tough decision to file for bankruptcy; their help will be invaluable as the process can affect the whole family for a number of years. Filing for bankruptcy has been made more complicated recently and more work is required before the process can be completed. An attorney will be able to carry out the work on your behalf so that there are no mistakes. Most debtors will find that once this means-testing is over, most of the changes to the law end there, and they will be able to proceed with the application just as did before the changes were introduced.

One important thing to remember is that most individuals who file for bankruptcy protection don't lose any property as the U.S. bankruptcy code provides exemptions. These exemptions allow you to keep a certain amount of value in large property like your home and an automobile. Work clothes, tools and other essential items like furniture are also exempt, as a bankrupt still needs a place to live and a way to travel to work.

Of course, some States have made additions to the federal law and this is where your bankruptcy lawyer will be of more assistance if you want to retain the possessions to which you are entitled. The chances are that the person filing for bankruptcy does not own very high value items. The purpose of insolvency is not meant to be a punishment therefore many things required for living are exempt from creditors.

The unfortunate aspect to this is your credit rating will be affected and on your record for a decade. You see, you're the majority of your credit score rating is made up of more recent financial activities and not so much about past ones. What this means is that within a relatively short space of time after you become bankrupt you will start receiving credit applications but at this stage you must be very careful.

Your bankruptcy lawyer will tell you to be wary of these offers at this time as many companies specialize in approaching these types of cases and offer loans at extortionate interest rates or conditions. Such credit could put you back in the position you were before. Your attorney will be able to advise you on reputable companies but whatever your credit agreements are, you will do your credit rating a great deal of good if you ensure that you always pay more than the minimum required.

In fact if you keep your financial affairs clean, in a matter of a few years, you can find yourself with a re-built credit rating. Buying a house or arranging an unsecured loan after this short period should not cause you any undue problems even though your bankruptcy will be on your record for 10 years.

It usually the result of a set of unfortunate circumstances that leads to a bankruptcy. It is not because the individual is a failure looking for an easy way out of his debts as the credit companies would like you to believe. After the recent changes, the government may decide to make it even harder to qualify for bankruptcy if this type of approach by credit companies continues. Your bankruptcy lawyer will tell you that the vast majority of people who file for bankruptcy protection are honest, hard working, law abiding people that are just victims of poor fortune and circumstance; they are not criminals who are trying to deceive the State.

Article Source: http://www.articlesbase.com/law-articles/what-are-bankruptcy-lawyers-371774.html

About the Author

To learn a lot more about lawyers of all kinds, visit lawyers



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Bankruptcy Creditor Automatic Stay

July 21, 2010 By admin 10 Comments
automatic bankruptcy stay ...

Secured Creditors and the Automatic Stay

Author: David Siegel

Secured Creditors and Relief From The Automatic Stay

In certain circumstances, a secured creditor can move the court for modification of the automatic stay so that they may pursue recovery of their collateral. For example, an auto finance company can petition to the court to modify the automatic stay if you are not making current payments toward the creditor, if you are not up to date with the creditor or if you are not properly insuring the vehicle against loss. In those cases, the creditor will be granted its relief and will be permitted to recover the collateral despite the bankruptcy filing. In a Chapter 7 bankruptcy case, you will lose the right to possess and own the vehicle; however, you will not be responsible for any outstanding debt related to the vehicle. This could be a tremendous relief for you by eliminating a huge vehicle loan obligation.

As it relates to real estate mortgage companies, the same situation as above applies. The lender will petition the court for relief if you are not making timely payments, if you are not current with the loan, if you are not paying the real estate taxes on the property or are otherwise creating a hazard or risk to the lender. Thus, in a Chapter 7 bankruptcy case, the automatic stay will only provide temporary relief to you as it relates to secured creditors. As far as general creditors and unsecured creditors, the automatic stay may continue until the case is discharged. At that point, you likely be free from any future obligation toward the creditor.

The Bankruptcy Estate

What is the bankruptcy estate? The bankruptcy estate is all of your property as of the date of the bankruptcy filing, wherever located and by whomever held. Every possible interest (contingent, partial, legal or equitable) goes into the bankruptcy estate. Although there are exemptions which allow you to keep all or a portion of your property, the property is still technically considered property of the estate.

The concept of the estate applies to property owned at the time of filing. Most of what you acquire after the date of filing will remain your property. However, there are a few exceptions to this general rule.

If you inherit money or property within six months after your case is filed, that money or property will become property of the estate to the extent that it cannot be exempted.

If you receive a marital property settlement that arises from a pre-bankruptcy divorce or separation, then that property becomes property of the estate to the extent that the property cannot be exempted.

Tax refunds that are received after the date of filing become property of the estate to the extent that they cannot be exempted.

Article Source: http://www.articlesbase.com/law-articles/secured-creditors-and-the-automatic-stay-210864.html

About the Author

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-phoenix.com .



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California Bankruptcy Attorney Fees

July 17, 2010 By admin 9 Comments
These fees are for reference ...

California Respa Attorney Warns That Respa Imposes Severe Penalties On Realtors And Lenders Who Violate The Kickback Provisions

Author: R. Sebastian Gibson

RESPA

For thirty-five years, RESPA has confused people in the real estate industry and attorneys alike. In 1974, Congress enacted RESPA, the Real Estate Settlement Procedures Act primarily to address abusive practices, promote greater understanding to homebuyers and to prohibit practices such as kickbacks or referral fees that result in higher costs.

Efforts began in earnest in 2008 to reform RESPA and on November 17, 2008, HUD published its new 341-page RESPA final rule. Though published in the Federal Register, there is a one year implementation period and mandatory compliance begins January 1, 2010. Now RESPA is about to confuse the real estate industry once again, this time perhaps even more so with respect to its prohibition against kickbacks and fee splitting with questions of how those prohibitions will be enforced.

If you have been the victim of a violation of RESPA in California and have been improperly charged as a result of such a violation, or if you are in the real estate industry and are facing RESPA litigation visit our website at http://www.sebastiangibsonlaw.com and call us at any of the numbers easily found on our website.

RESPA Prohibition of Kickbacks

RESPA was created in the first place partly because various types of entities involved in the purchase and sale of real estate such as Realtors, lenders, construction companies, and title insurance companies were often engaged in providing undisclosed kickbacks to each other, thereby causing the costs of real estate transactions to become inflated.

RESPA was designed to prevent kickbacks not just in California, one of the states with the greatest number of foreclosures in this current economic crisis, but throughout the U.S. But RESPA has been criticized for failing to prevent what it was meant to prevent. Lenders and others in the real estate industry in California, for instance, still see customers go with the default service providers associated with a lender or Realtor, even though the documents the homebuyer signs explicitly state they can choose any service provider they wanted.

However, Section 8 of RESPA quite explicitly and forcefully prohibits a person from giving or accepting a fee, kickback or anything of value for referrals of settlement service businesses relating to a federally regulated mortgage loan. It also prohibits fee-splitting or a person from giving or accepting any part of a charge for services that are not performed.

RESPA Penalties for Kickback Violations

Violations of Section 8's kickback, referral fee and unearned fee provisions subject a person who violates RESPA to criminal and civil penalties. In criminal cases, a person in violation of Section 8 cam be fined up to ,000 and imprisoned for up to one year. In a civil lawsuit, a person in violation of Section 8 can be liable to the person who was charged for a settlement service an amount equal to three times the amount of the charge paid by the person for the service, and for the person's attorneys fees. Individuals have one year to file a complaint to enforce violations of Section 8 in federal court in the district the property is located or where the violation occurred.

Without oversimplifying Section 8, a real estate agent in California or anywhere in the U.S. may not offer nor may a real estate agent accept anything of value for referring business to a settlement provider such as a mortgage banker, mortgage lender or title company or to a friend who refers the agent business. Realtor to Realtor referrals are excluded and there is a contract for such referrals that is enforceable. It is probably still acceptable to take such contacts out to dinner, discuss business and thank them for their support, but that is about as far as one can go.

With all that has happened in the mortgage industry in California and throughout the U.S. that has led to the current economic recession (and some would call it a depression), anyone criticizing the kickback and fee-splitting prohibitions should remember the excesses in lending to unqualified homebuyers that led us to the situation the financial industry now finds itself.

Visit our website at http://www.sebastiangibsonlaw.com and call us if you have been the victim of a violation of RESPA in California and have been improperly charged as a result of such a violation, or if you are in the real estate industry and are facing RESPA litigation.

Entities who are found to have formed sham joint ventures for the purpose of evading the Section 8 prohibitions risk potentially millions of dollars in damages and attorney fees as well as criminal charges and imprisonment.

If you believe you have been the victim of a violation of RESPA in California and have been improperly charged as a result of such a violation, or if you are in the real estate industry and are facing RESPA litigation, we recommend that you consult with our California RESPA law firm immediately.

Article Source: http://www.articlesbase.com/law-articles/california-respa-attorney-warns-that-respa-imposes-severe-penalties-on-realtors-and-lenders-who-violate-the-kickback-provisions-784285.html

About the Author

Visit our website at http://www.sebastiangibsonlaw.com if you have been the victim of a violation of RESPA in California and have been improperly charged as a result of such a violation, or if you are in the real estate industry and are facing RESPA litigation in California. We have the knowledge and resources to be your California RESPA Lawyer and California RESPA Attorney or anywhere in Southern California.



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