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Personal Bankruptcy Faq

July 8, 2010 By Leave a Comment

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Secured Personal Loans: Funding After Bankruptcy

Author: Melissa Kellett

After bankruptcy, it can be very difficult to get approved for a personal loan, nevertheless, there are some lenders willing to lend to people in such financial difficulties as long as they can provide enough security in order to reduce the risk of missed payments and default which is what worries lender’s the most.

There is no need to despair; someone who has gone through a bankruptcy process can easily get approved for a secured personal loan within certain period of time if able to meet certain requirements. Bankruptcy can be very stressful but finance can still be found during these hard times, you just need to know where to find it.

Requirements

Each lender has different requirements when it comes to personal loans. Due to a lack of regulation on this particular issue, lenders are free to lend to anyone and take as much risk as they want. Their only limitation is the interest rate they can charge but they usually bypass this limitation by charging additional fees and other costs.

The main requirement, as usual, is your credit score. Of course you will have a low credit score after bankruptcy. The question is, however, how low? If bankruptcy was your last delinquency, then, your credit score must have increased over some time and if there were not too many delinquencies before bankruptcy, perhaps you can convince lenders that bankruptcy was due to unfortunate events and not because of your poor credit behavior.

Your credit history is another important variable related to your credit score. The credit history that really matters is the months following your bankruptcy. Your credit report must show no late payments, nor missed payments and no other delinquencies whatsoever during those months. This will greatly increase your possibilities of getting finance after bankruptcy.

Collateral

Since bankruptcy implies a lot of risk, the key to obtaining finance is to reduce that risk. One of the best ways to do so is to offer some kind of security by providing an asset as collateral. A house, apartment, a car or any other vehicle can be used to secure your loan and increase your chances of getting approved. Obviously, the asset has to be worthy enough. Its value should exceed significantly the amount of money requested.

Even though the loan will be secured, the interest rate charged will be considerably higher, this is due to the fact that collateral will only reduce the risk but the risk for the lender will still be higher. A past bankruptcy shows you have defaulted before and that scares lenders away. Thus, the interest rate, which is based on the risk, will be higher under these conditions than under regular conditions.

Outstanding Debt

Since not all debts are discharged after bankruptcy, your debt level will also be a variable to take into account when a lender considers to provide finance or not. If you still have outstanding loans and high amounts of debt, chances are that you will not get approved unless you can show a steady income and provide a very valuable asset as collateral that is free from mortgages and other limitations.

Article Source: http://www.articlesbase.com/loans-articles/secured-personal-loans-funding-after-bankruptcy-368962.html

About the Author

Melissa Kellett is an expert loan consultant who has worked for twenty years in the financial industry and helps people to repair their credit and get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and many other types of loans and financial products. If you want to learn more about Unsecured Loans and Fresh Start Loans you can visit her site http://www.speedybadcreditloans.com/



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Bankruptcy Debt Relief Usa

July 8, 2010 By 2 Comments
... Debt Settlement Company Goes

Choosing Debt Settlement For Debt Relief – Better Than Bankruptcy

Author: Aurora Lillo

If at all possible, avoid bankruptcy by choosing a debt settlement for financial relief assistance.

Bankruptcy will create low credit scores for at least seven years making it impossible to acquire any necessary major loan with reasonable interest rates.

Aurora Lillo Editor of the “Best Debt Settlement Services” website — http://www.BestDebtSettlementServices.com — pointed out;

 

“…The bankruptcy process is lengthy and expensive with attorney charges, filing fees, and court costs, and appointments with the attorney handling the bankruptcy and court appearances take time away from work. A debt settlement agreement is swift and can be completed through numerous reputable online services. A list of reliable settlement companies is available through national consumer advocate and financial planning websites. With the current economic condition of the country, consumer debt counselors are advising individuals to eliminate all unsecured loans due to high interest rates and late fees…”

Many households are facing a loss of income due to unemployment, salary cuts, and mandated furlough days. These income reductions are causing necessary living expenses to be paid for with credit cards, payday loans, and store accounts. These types of unsecured accounts carry huge interest rates that fluctuate with the creditors’ discretion. A responsible alternative to bankruptcy is enlisting the assistance of a settlement specialist. The convenience of online assistance is available 24 hours a day, seven days a week. The entire process can be handled from the home computer before or after work, or on weekends without any loss of pay. The companies offer secure and confidential online communication with financial representatives.

When a debt settlement company has been selected, the negotiations begin between the settlement representative and each client’s creditors. The negotiations will produce reduced balances due to lower interest rates and the removal of any late fees and penalties. At the end of the negotiation period, the client will be presented an outline of the restructure agreement. A savings of at least 50% of overall personal debt can be expected with a repayment period of less than three years, depending on the amount of indebtedness. The process is fast and produces better credit scores in a shorter period of time than bankruptcy.

“…Across the nation, thousands of clients are experiencing the financial relief when entering into a debt settlement program. Harassing phone calls and the flood of late notices in the mail have ended, leaving customers enjoying financial freedom once again. Let a settlement specialist place your finances on the fast track to bill elimination today…” added A. Lillo.

Further Information By Visiting; http://www.BestDebtSettlementServices.com

Article Source: http://www.articlesbase.com/personal-finance-articles/choosing-debt-settlement-for-debt-relief-better-than-bankruptcy-2804694.html

About the Author

Aurora Lillo runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.



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Bankruptcy Debt Settlement

July 6, 2010 By 10 Comments
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Filing for Bankruptcy? Debt Settlement Programs are Better Options

Author: Hector Milla

Filing for bankruptcy can seem like the only option when your are in serious debt.

A bankruptcy can ruin your credit for a decade or more. Fortunately this doesn’t have to be the only option. Debt settlement is a much better option that won’t damage your credit as seriously. Here’s what you should know about the programs available.

Aurora Lillo Editor of the “Reputable Debt Settlement” website — http://www.ReputableDebtSettlement.com — pointed out;

 

“…A debt settlement is a way to pay your creditors a portion of the balance you owe. Since the creditor would rather see some of the money over none of it, many of them are willing to cut the amount you owe to clear the account. A settlement negotiation will allow you to shave anywhere from half to three quarters of the existing financial obligation and clear the account…”

Many creditors won’t advertise the availability of these programs. As a result, many consumers are left in the dark regarding their options. This is where a debt settlement company can help.
These companies are designed specifically to help consumers get a grip on existing obligations. Many programs include counseling to help people stay out of trouble in the future.

These debt relief companies work by taking the reigns and working directly with the creditors. They will negotiate an acceptable amount of money based on several factors. Your income, other bills, and credit score to find a payment plan that works best. Once the original creditor has agreed to a set amount and time frame, a counselor will then work with you to save the money in the time allotted. In most cases you will be required to set up a savings account that will be used only for this.

Debt settlement companies aren’t free. Many will charge a fee based on the percentage of the amount of money owed, or a percentage of the amount of money you save with the settlement offer. While this can be a turn off for many, the amount of money spent on the fee is usually far less than what you spend paying the full amount. Not to mention the fee is almost always worth saving your credit by avoiding bankruptcy.

“…These programs won’t preserve a perfect credit score. However, a bankruptcy is beyond damaging, and settlements will reflect a payment made and the account was settled in a satisfactory manner. It’s much easier to rebuild from this than it would be with a bankruptcy scarring your credit for 10 years…” added A. Lillo.

Further Information By Visiting; http://www.ReputableDebtSettlement.com

Article Source: http://www.articlesbase.com/personal-finance-articles/filing-for-bankruptcy-debt-settlement-programs-are-better-options-2804860.html

About the Author

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.



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Declaring Bankruptcy Nova Scotia

July 1, 2010 By Leave a Comment
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How To Refinance Your Mortgage After Bankruptcy

Author: Jill Smi

It is a general conception that getting a refinance loan after filing a bankruptcy is quite difficult. But you can avail a home loan provided you pay the interest at a slightly higher rate. Generally, lenders do not prefer taking the risk of offering mortgages to someone who has filed bankruptcy. But there are the subprime lenders who can offer you loans at higher interest rates, sometimes even after six months of finalizing your bankruptcy.

Filing a bankruptcy case affects your credit status as it reflects your inability to pay down your debts. A Chapter 7 Bankruptcy stays in your credit report for at least 7 years whereas Chapter 13 Bankruptcy is featured in the report for 10 years. But this does not mean that you won’t be getting credit – the only thing is that you won’t qualify for a reasonable rate.

Generally, most lenders in the primary mortgage market will consider offering you the loan only after 2 years of filing for bankruptcy. But you need to be current on your bills during this period. You will be able to re-establish a better credit profile with a Chapter 13 bankruptcy, as it requires you to follow a repayment plan to become debt-free within 3 to 5 years. This isn’t easier with a Chapter 7 bankruptcy because it allows for the discharge of all your debts, and you don’t have to repay any part of your unpaid credit. But Chapter 13 bankruptcy helps you to prove your creditworthiness while you continue to pay for a certain percentage of your debts including the mortgage.   

One way to establish good credit within 2 years of declaring bankruptcy is to open a credit card account and make payments regularly. This will enable you to improve your credit score. You should also try to build up a savings account, since the more cash you have at hand, the better. You may also look for a secondary source of income so that you can pay down the debts, which are not discharged by bankruptcy. Maintaining a good credit profile thus becomes a necessity if you wish to refinance after bankruptcy.

When you have build up a fair credit history, try to look for mortgage quotes that are affordable, although you may get a slightly higher interest rate on account of declaring bankruptcy. You should also consider the Annual Percentage Rate (APR) and the loan fees that come along with the refinance loan.   

Refinancing after bankruptcy helps you to restore your credit profile. You can refinance your existing debts with a home equity loan that is often offered at a better rate than the other kinds of credit. Use of such credit for refinancing will help you to maintain a good payment history. With a refinance loan after bankruptcy you can thus rebuild your credit history and this helps you to qualify for loan programs with lower rates and payments.

Article Source: http://www.articlesbase.com/finance-articles/how-to-refinance-your-mortgage-after-bankruptcy-2797670.html

About the Author

To read about bulging belly and lose belly flab, visit the Obese Belly site.


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Chapter 12 Bankruptcy

June 26, 2010 By Leave a Comment

istockphoto 5894124 chapter 12 bankruptcy paperwork jpg

Can A Farmland Foreclosure Be Stopped by Filing Chapter 12 Bankruptcy?

Author: Hector Milla

Chapter 12 bankruptcies were designed to handle the farm financial crisis that occurred in the 1980s. Prior to that time, farm bankruptcy was relatively unheard of because they were few.

In the 1980s, they became very common and a new law provisioning for Chapter 12 bankruptcy was written. It is exclusive to family farmers who go broke. For family farmers that qualify, Chapter 12 serves as a reorganizational bankruptcy similar to that of Chapter 11 for businesses and Chapter 13 for regular wage-earners. It is allows the family farmer to attempt to dodge liquidation and continue his or her businesses.

Natalia Osorio Editor of the “Loan Modification Foreclosure” website — http://www.LoanModificationForeclosures.com — pointed out;

“…Two main types of bankruptcy available to farmers are liquidation bankruptcy –chapter 7– and reorganization bankruptcy –chapter 12–. If the 80% or more of the family’s gross income comes from farming, that family is eligible and able to file a chapter 12 reorganizational bankruptcy. If less than 80% of the family’s total income is derived from farming, normal rules apply and that family can be forced into a chapter 7 bankruptcy by its creditors the same as any other debtor…”

By filing in federal bankruptcy court, an automatic stay occurs. All creditors are immediately forbidden from pursuing any debt collection activities, including foreclosure. This stay is the primary and most important consumer protection feature of bankruptcy law.

In order to be eligible for this protection, a family farmer must not have debt exceeding the permissible debt limit of $3.27 million. At least 50% of that debt must have risen from farming operations. In 2005, laws were passed that made it easier for stressed family farmers to qualify for bankruptcy relief. With the current state of the economy, it is likely that similar measures may be passed again, so it is important to watch your state and federal laws on bankruptcy for updates and changes.

“…This stay is maintained throughout the proceedings, until the debt is reorganized into a manageable form for the farmer and his family. Through filing a chapter 12 bankruptcy, even the day of a foreclosure sale, an eligible family farmer can retain his business and livelihood, potentially for years and years to come…” N. Osorio added.

Further information about how to get professional assistance with a mortgage loan modification by http://www.LoanModificationForeclosures.com

Article Source: http://www.articlesbase.com/mortgage-articles/can-a-farmland-foreclosure-be-stopped-by-filing-chapter-12-bankruptcy-1757217.html

About the Author

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

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