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Bankruptcy Chapter, Know What Each Means

February 14, 2010 By admin Leave a Comment


More and more people have been recently facing harsh economic times. They have a lot of debt and may not be in a position to know the options that are available to them. There are many ways of getting out of debt. You have to do research to find out what the best alternative for you is. You can get help from a debt consolidation company. You can also try and negotiate your repayments with your creditors. Whichever way you choose to go, bankruptcy is usually used when all other options have been fruitless.

Before you decide to file for bankruptcy, it is essential that you do as much research as possible. This is because this is a complex process. You should not leave anything to chance. You need to educate yourself about it and what the laws concerning it are. A bankruptcy chapter is a part of the bankruptcy law that governs the entire process. There are six chapters but most people understand just two or three.

Chapter 7 is the most common and widely known form of bankruptcy. It involves the court taking over your non exempt assets and selling them to get rid of your debts. The money collected from this is then used to repay your creditors. To be eligible for this chapter, you have to go for a

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What is Chapter 7 Bankruptcy Means Test?

February 13, 2010 By admin Leave a Comment

Filing for Chapter 7 bankruptcy can be a powerful device for dealing with tremendous debt. But it isn't available to everyone. There are a number of situations in which you will not be allowed

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Bankruptcy No Longer Means – No Mortgage

February 12, 2010 By admin Leave a Comment

In the past, traditional mortgage lenders have automatically rejected people who had declared personal bankruptcy. Many potential home-buyers or exiting homeowners felt they must wait at least seven to ten years after a bankruptcy to be eligible for financing. This is a common misconception.

While some people declaring bankruptcy have had trouble managing their money, a larger number of those declaring have simply experienced unfortunate events. Americans have been filing bankruptcies at record-high levels over the last many years, especially last year.

Though a bankruptcy is certainly a blemish on a credit report, it does not necessarily disqualify a borrower. Recognizing that sometimes bad things happen to good people, some select loan officers are becoming more willing to take a calculated risk.

Some lenders use a scoring system to determine whether potential borrowers are a worthwhile risk. Unfortunately, bankruptcy gives an automatic low score. However select lenders are beginning to look beyond the scores and look at the individuals in need.

Instead of waiting two or four years after being discharged from bankruptcy, some mortgage professionals are willing to give a home loan much sooner. Those who have declared Chapter 7 bankruptcy liquidation may be eligible for a loan in as little as one day after discharge, and those who have declared Chapter 13 may be eligible for a loan even while they are still in their plan.

Another common misconception is that a previous bankruptcy on your credit report will require you to have a large down payment and pay extremely high rates and points. There are currently programs available with no down payment required and with very attractive rates and points.

Some lenders are even pre-qualifying buyers for a loan, saving time and making the home-buying experience easier and more efficient. When a buyer pre-qualifies they will have the advantage of greater negotiation power.

No matter what the situation, select mortgage professionals have a program that will work for the buyer with a bankruptcy history. If a buyer cannot get approved, there are customized plans that can re-establish credit to help the buyer become mortgage ready, ensuring homeownership in the future.

Because of new options, bankruptcy no longer needs to stand in the way of getting a home loan. With the help of more creative lenders, those who have experienced financial difficulty will have an easier time getting a mortgage.

Luke Currier and Ed Jeffry are experts in mortgage lending. They specialize in working with homeowners who have had a bankruptcy or other credit challenge achieve financial security through home ownership. Visit their website at http://www.Chapter13Experts.com for more information or call them direct at 925-983-3127.

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Personal Bankruptcy- What It Entails To Pass A Means Test

February 10, 2010 By admin Leave a Comment

There are over a million people facing bankruptcy all over the world. There are many reasons that force people to be financially distressed. Some of these reasons could be out of the control of the debtor, though others are due to irresponsible spending habits. Medical bills could also escalate to the point where a person with no medical insurance may not be able to pay. Other reasons which make people to file a petition could be loss of a job, alimony and students loans which are all out of the control of an individual.

People who opt for personal insolvency today should be aware of the various modifications that are there in chapters 13 and 7. Unlike in the past, people no longer have the choice of which chapter to file under. In the past people filing a personal bankruptcy petition would opt for chapter 7 which was more popular. This is no longer applicable since the introduction of the means test, which is used to determine the chapter to use.

In the past before the new law was put in place, counseling was not a mandatory part of filing for a personal insolvency petition. However the rules have changed and an individual must go through counseling before and after the petition. Without the financial management certificate, the debtors petition may not be accepted.

In case the mean test proves that the debtor can indeed pay the debts, the only option would to file under chapter 13 which allows the debtor to pay pending debts. Since bankruptcy is a serious decision, the debtor should consult a lawyer before making that crucial decision.

Peter Gitundu Creates Interesting And Thought Provoking Content on Finance. For More Information On How To Deal With Bankruptcy, Read More Of His Articles Here DEALING WITH BANKRUPTCY If You Enjoyed This Article, Make Sure You SUBSCRIBE TO MY RSS FEED!

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Commercial Bankruptcy – Commercial Bankruptcy Means Filing for Chapter 11 Protection

February 9, 2010 By admin Leave a Comment

Whether you have been in business for a long time and are now facing new and very strong competition from a chain, or you are operating a new venture that just has not gotten off the ground, when the enterprise begins to experience serious business debt problems, you will probably consider bankruptcy. The United States commercial bankruptcy statutes are in place and Chapter 11 proceedings are specifically aimed to aid persons who are trying to pay their business debt, but are unsuccessfully struggling to do so. But Commercial Bankruptcy may not be the answer you are looking for.

It may be that the business debt help you receive from a business debt management consultant may be a better route to meeting the financial obligations and getting the venture back on track. A reorganization of the venture's finances such as businesses debt consolidation or a business debt settlement may provide the real relief that is needed without petitioning for formal Chapter 11 business bankruptcy protection.

With this in mind, it is required that a person seeking chapter 11 Commercial Bankruptcy prior to filing and a business management plan is developed to file in addition to the petition. There are two forms of bankruptcy protection offered. Chapter 13 is incorporated for individuals who have a debt limit of $175,000 but it can be and often is extended to individuals who operate a small business.

But the most widely used Commercial Bankruptcy tool that is designed to give business debt help is the chapter 11 business bankruptcy plan. There is a $1000 fee for filing a chapter 11 business bankruptcy, and the debt management plan must be filed with it. It is a misconception that Chapter 11 discharges business debt; on the contrary, the assets of the business are placed under the guidance of a conservator who will use the business assets to repay the financial obligations over a specified period of time, usually 3 years, if possible.

Is this the form of business debt help you are really looking for?

Seek the advice of a business debt management consultant for other options that may resolve business debt and alleviate pressures from creditors without filing for commercial bankruptcy. If you want to get debt relief without placing the business in an inoperable position, find out about business debt consolidation or business debt resolution, which may be a better fit to your business' specific situation.

It may be far better to enter into a reorganization of your enterprise that will include negotiation of repayment of the business debt with each and every one of the creditors. It is crucial that a plan such as this is all-inclusive, leaving out a lender or giving preferential treatment to one creditor will make the plan null and void. The debt negotiation plan will transfer some of the organizational responsibilities from you to the consultant who will also become the primary contact for the creditors. You will be required to make one payment each month that has be worked out by the counselor to fit the incoming cash flow. This payment will be dispersed among the creditors according to a pre agreed amount. The payments are lowered because the interest rate of the loans has been eliminated or reduced in the negotiation, thus more money goes directly to paying down the principal and the business debt is paid off more rapidly. This process restores a good credit rating instead of tainting it with the stigma that is often associated with business bankruptcy. With the help of a qualified business debt consultant, you will never have to answer yes to the question, "Have you ever filed for commercial bankruptcy?" but you will still receive all the business debt relief that you require.

Check these links to learn more:

http://www.commercialdebtcounseling.com

http://www.commercialdebtcounseling.com/business/business-y/business-index.shtml

James Banks is a contributing writer to http://www.commercialdebtcounseling.com and is currently writing some special articles to guidebusiness owners on how to manage debt and avoid bankruptcy. For FreeInformation on Commercial Bankruptcy, call toll-free1-877-324-1218.

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