What Happens To My Car Lease After Filing Bankruptcy?

There are several things that could happen to an auto lease after filing bankruptcy. It depends on the actions you take prior to filing. You do have a few options and it is best to be aware of these so that you can avoid the pitfalls that could happen after filing bankruptcy. Having this information will give you a roadmap to make the right decision for you and your specific situation.

One option would be to include the lease in the bankruptcy. This will take away the responsibility of the balance of payments; however you will lose the equity you have built from payments made thus far. You may want to consider how close you are to the end of your lease.

If you include your lease car in the bankruptcy, they will repossess the car, possibly leaving you with no transportation. Another thing to consider is what you will do for wheels should you let the car go with the bankruptcy.

Including the lease in the bankruptcy will also most likely excuse you from any of the fees and penalties that will come with breaking the lease, as these will become discharged after the filing.

Then, there is the assumption of the lease. Here the person filing bankruptcy has the choice to keep the lease separate from the bankruptcy and continue paying as per the original agreement. In some states, there may be paperwork for the lease assumption. These papers need to be filled out properly and filed with the bankruptcy. You want to hire an attorney if you go with this option.

Once you agree to a lease assumption, it is best to remain current with the lease payments and adhere to all terms. If not, the bank has the right to repossess the car with little or no notice.

The final option is called a ride-through. This will allow you to continue to the best of your abilities to honor the lease agreement. This works similar to the assumption of a lease, however there is no paperwork filed at the time of the bankruptcy.

Should you fall behind, the lessor has the right to come and take the vehicle from your possession, leaving you with no transportation.

An additional note here, you may not receive a statement for the monthly payment as the bank is going to avoid anything that could be misconstrued as an attempt to collect a debt. Obtain the address and make a note on your calendar when the payment is due so that you do not inadvertently miss the payment.

What happens to your car after filing bankruptcy could be best determined by you. Just remember to act ahead of time and make the best choice possible with your circumstances. It's always best to consult with your attorney when it comes to the bankruptcy laws in your state.

Your Life After Bankruptcy

Debtors who are faced with overwhelming debt due to circumstances beyond their control such as a sudden job loss, a pay cut, a cut in hours, and a medical emergency, death in the family or divorce may have no other choice but to file for bankruptcy.

Bankruptcy is not necessarily a bad thing, it has received a bad reputation in years past but in today's economy it is offering debtors a much needed fresh start. Bankruptcy gives people hope; it's the light at the end of a very dark tunnel. If you are experiencing out of control debt, you are probably intimately familiar with the high levels of stress that is associated with having bills you can't afford to pay.

Filing for bankruptcy does not mean that you can never get credit again; it doesn't mean that you can't get an auto loan or buy a house for the next ten years. Although bankruptcy does stay on your credit for ten years, there could still be many lending opportunities available to you despite the fact that you filed for bankruptcy. In fact, you may be a more attractive borrower after filing for bankruptcy because your debt to income ratio will be lower or non-existent, compared to if your credit cards were maxed out and if you were over-extended.

After a borrower files Chapter 7 bankruptcy, non-exempt assets are liquidated to pay off creditors and the remaining unsecured debt is discharged. In many cases, the bankruptcy is a no-asset bankruptcy, meaning that the debtor does not have any non-exempt assets; therefore, they get to keep everything that they have. In this case, the unsecured debts are discharged without having to liquidate anything.

Whether the borrower files a Chapter 7 bankruptcy, or a Chapter 13, they will experience immediate relief from the "automatic stay," which will halt all debt collection activity. It will put a pause on any repossessions, foreclosures or wage garnishments. The automatic stay will also prohibit creditors from contacting you by phone or by mail.

Separate from the Chapter 7 bankruptcy, the Chapter 13 is a debt reorganization bankruptcy. Debtors who earn too much to file a Chapter 7 are directed to filing a Chapter 13. With a Chapter 13, the debtor's bills are reorganized into a monthly payment that they can easily afford. These payments are spread out over a period of 3 to 5 years into what is called a Chapter 13 repayment plan. In both the Chapter 7 and Chapter 13 bankruptcies, the filers get to enjoy the benefits of the "automatic stay" immediately after filing.

Once your Chapter 7 or Chapter 13 is discharged, you will get to rebuild your credit rating. The Chapter 7 bankruptcy is the fastest and easiest of the two bankruptcies. Most filers receive their discharge within 4 to 6 months of filing. The months immediately following a bankruptcy are crucial for rebuilding your credit rating. When potential lenders look at your credit report, they want to see that you are focusing on rebuilding good credit after your bankruptcy. A potential lender would prefer to see "good credit" on your credit report after a bankruptcy as opposed to seeing nothing reported since the discharge.

You may want to wash your hands clean of credit cards after a bankruptcy but this is not the mindset that you need to have. It would be a big mistake not to establish credit after a bankruptcy discharge. There are a number of credit card companies out there that extend credit to individuals who have just completed bankruptcy. If you shop out the different credit cards on-line, you can compare interest rates and annual fees to find out what best suits your needs.

It is highly recommended post-bankruptcy debtors take out three credit cards after bankruptcy. It is essential that you do not max out these cards. It is best to charge a small amount, approximately 10% to 20% of the credit line each month, and to pay them off in full each statement period. It is a good idea to charge things that you would normally buy anyway like gasoline or groceries. After using a small amount of your credit every month and paying it off in full each month, you will slowly start to re-establish a good credit rating. This will be essential if you want to rebuild your credit after bankruptcy.

Be savvy, after a year or so of timely payments and maintaining a zero balance on your credit cards, you should be able to obtain lower interest rates and no-annual fee credit cards. It is crucial that following bankruptcy, you avoid the pitfalls that led you to filing bankruptcy in the first place.

Live within your means, establish a solid budget and stick to it. It is very important to remain steadily employed, and to avoid moving around a lot. If you can keep your job, and stay in your home, it will show stability to potential lenders. Rebuilding your credit after bankruptcy is not impossible, it is actually easier than it may seem. With hard work and discipline you can be on the road to financial recovery and a good credit rating after bankruptcy! If you would like more information about filing for bankruptcy or life after bankruptcy, contact a bankruptcy attorney today!

Ways to Implement Bankruptcy Recovery

It should mean a lot. Bankruptcy is one of the nastiest financial things that can happen to an individual, embarrassment not least among the drawbacks. But, consider that it can lead to denial of credit, housing, employment, along with other repercussions. Personal relationships may suffer serious damage. The trauma leading up to the bankruptcy and the process itself has led to many a divorce or lost friendship. And it is not cheap: Loss of assets, legal fees, other direct or indirect costs. You will be paying inflated interest fees and enduring uncomfortable terms for any future credit - if you can get credit - for a long time to come.

What does bankruptcy mean legally?

Two major forms of bankruptcy relief exist: Chapter 7 and Chapter 13. Chapter 7 calls for the complete liquidation of all personal assets (selling absolutely everything) to satisfy the interests of creditors. You may end up owning absolutely nothing, but you will not have any bills lingering from the past. Chapter 13 involves a court-supervised repayment plan that can last up to five years to satisfy the interests of the creditors. Usually the paycheck of the defaulter is garnered for a certain amount each month. Some assets, such as a home or a vehicle, may be retained by the defaulter. Though future lenders may look more kindly on a Chapter 13 bankruptcy, they are basically equal and the road to recovery is about the same.

What is your first recovery goal?

Your bankruptcy can stay on your credit history for up to ten years. Do not stand still for those ten years. First, pull a copy of all three credit reports and scrutinize them for errors and omissions. Chances are you will find a number of mistakes and you should write to each of the credit agencies disputing the information and asking them to remove them from the report.

How do you start repairing your credit?

Consider opening new accounts where you can. Do not go in over your head and make payments on time. Another good method to start improving your score is to take out a secured credit card. See a bank or credit union for details. Generally, you make a deposit that establishes your spending limit and then you must make payments on what you purchase. Taking these steps is important. Be patient. It will take some time for you to reestablish your credit worthiness, but you can do it.

Can you just forget the past?

Once you have learned your lesson about your past irresponsible credit behavior, you need to reset your priorities regarding how you should live. Indeed, some of your financial difficulty may have been caused by plain old bad luck. That raises the question: Why were you not responsible enough to set aside money to get you through hard times? Nothing is promised to anyone and everyone should be able to cover their own back. Unlike in the past, your focus should be proper debt management, long-term savings, and responsible spending.

Bankruptcy is a serious matter. It is not the end of life as you know it. Many have lifted themselves up and started living responsibly and are once again enjoying life. Once you are on the proper path, you may be pleasantly surprised how new financial responsibilities may offer themselves to make your future quite bright.

Converting a Chapter 13 to a Chapter 7 Bankruptcy

You can't watch the news on TV without hearing the word bankruptcy mentioned. When most people hear the word bankruptcy, they think of chapter 7. Chapter 7 is what individuals prefer to file because it's quick and it wipes out all the unsecured debt, making the individual virtually debt-free. Some consumers file Chapter 7 and think everything is going smoothly until the trustee contacts your bankruptcy attorney because he thinks that your case is an abuse of the system. At this point, the U.S. trustee can change your case to Chapter 13 because of the belief that you are capable of paying at least part of your debt. People that end up in this situation generally don't have the money for a Chapter 13, after all of their expenses. Some debtors make a little too much to qualify for the means test, but the reason they are trying to file Chapter 7 is because their living expenses are so high, and have nothing left from their income after they pay their expenses, not including their credit card bills. Your bankruptcy attorney can defend against this motion and can usually be successful.

Qualifying for a Chapter 7 is much different than a Chapter 13 as it is solely based on the income of the individuals filing. Basically, anyone will qualify for Chapter 13. This type of bankruptcy gives the debtor an opportunity to pay back their creditors within a 3 to 5 year payment plan. The trustee will use the individual's income and expenses to come up with a fair payment plan. The best use of a Chapter 13 bankruptcy is when you're trying to protect a piece of real estate that has a large amount of equity in it. Chapter 13, as all chapters of bankruptcy, has the automatic stay that will stop foreclosure and allow the debtor to catch up on the arrears owed.

In today's crazy economy no one is immune from losing a job or having a financial disaster hit their life. If the debtor is in the middle of a Chapter 13 bankruptcy and gets into trouble making their payments, the trustee can dismiss your case. You can let the court dismiss your case, but it will leave you with a lot of late payments due on debt. In this situation, once the automatic stay is lifted, the creditors will come after you with a vengeance. The better alternative is to convert your bankruptcy case to a Chapter 7. Contact your bankruptcy attorney and have them file a notice of conversion with the court. As long as you qualify for Chapter 7, the process should be easy.

After converting your Chapter 13 to Chapter 7, any money that is being held by the bankruptcy trustee should be returned to you less the administrative fees. Many times people in Chapter 13 have their wages garnished to pay their payment plans. It is important to have your bankruptcy attorney stop this immediately because it will usually take at least a pay period to get it stopped. If there are any overages paid, they should be returned to you also. When the conversion goes through, a Chapter 7 bankruptcy trustee will be appointed and a new 341 meeting will be scheduled. Your bankruptcy attorney will have to file amended schedules adding any debt that has been incurred. After your case is converted, you will have your 341 meeting 4 to 6 weeks later, and you should get your discharge about two months after that. The best part is, you will no longer have a payment plan, and after the discharge you should be debt free. The downside to this is you might lose some property that you are trying to protect by filing Chapter 13. This is not necessarily true, as property values continue to drop and you might not have as much equity as you thought. This is something to discuss with your bankruptcy attorney, so you can choose the path that will work best for your situation, pointing you to financial freedom and being debt-free.

Hot Tips For Getting A Car After Bankruptcy

If you are wondering how to get a car loan after bankruptcy because you recently had a financial downfall; then this article is for you. The next few paragraphs will describe how to get a car loan after bankruptcy arming your with the knowledge to get the best deal.

Sometimes a bankruptcy means losing your vehicle. Since most people cannot go without transportation it is a good thing that there are lenders out there that will help you get a car loan.

These lenders can be called sub-prime lenders and specialize in helping those with less than perfect credit. In addition there are some car dealerships and auto brokers who have expert salespeople that help secure a loan for a car. To locate these types of dealers or auto brokers conduct an online search for your local area.

An auto broker may be the answer to "How to get a car loan after bankruptcy." Many do not think of auto brokers when looking for special financing after a bankruptcy. An auto broker works for their clients and are much more interested in your satisfaction rather than selling a car today.

Because the auto broker works for you the chances are better that you will get individual service specific to your car loan needs. Maybe there is a specific make and model that you are interested in and don't know how to go about getting it. Because of the vast resources a car broker uses to get their vehicles the chances of them finding a specific car is better than at a dealership.

In addition, most auto brokers have their own technicians who will evaluate the vehicle for the soundness of the engine as well as complete a safety inspection. Imagine the comfort of knowing your car, truck or SUV will continue running as well as keep your family safe. There's nothing more frustrating than buying a car and having it in the shop the second week after you buy it.

Another added benefit the salesperson may provide is a Carfax report. This is a report that will reveal any previous damage done to the car such as accidents or flood damage. Again, this will offer you more confidence that the vehicle is safe and give you the peace of mind knowing you made the right decision.

By doing a pre-qualification with the salesperson you will know exactly where you stand in terms of finding a loan that suits your specific financial situation. In most cases, an auto broker has several lenders at their fingertips and will do their best to get you the best possible interest rate and terms. This could save you money over the length of your loan.

Therefore if you are looking to an answer of how to get a car loan after bankruptcy, you may want to check into a local auto broker. This could end up being the best possible solution for getting yourself a new set of wheels along with the service you deserve.

Surviving The Challenges Of Bankruptcy

With the burdens that the devastating fiscal disaster have caused to the world, people's view of bankruptcy has differed immensely. Formerly, debt arrangements and monetary ordeals are synonymous to social disgrace making it hard for impoverished individuals to perceive alternatives for accountability settlement. They are not meant to be left alone in their frantic effort of paying off their debts for counseling services of a bankruptcy attorney are available to deal with the shaky situations with regard to wealth and debt.

Nothing could be more depressing than slowly losing grasp of fiscal stability due to loss of employment, major health problems or loss of income sources. Gradually, bankrupt persons are in a great deal of challenging survival to keep their heads above the pith of fiscal failure. Remarkable circumstances in today's mortgage industry brought a new light for credit-burdened people with an array of alternatives to help them deal with such a demanding situation.

For individuals to rise from the pit-hole of debts, they must seek to be counseled by bankruptcy specialists. Bondage of permanent indebtedness can be vanished when debt issues and credit risks are well-tackled via professional assistance from insolvency attorneys. Wrong methods of managing finances could be eradicated firsthand and more effective approaches of expense balancing could be put into action.

Basically, debt consolidation badly modifies credit standings of individuals and corporations, and this must be straightaway addressed before fiscal difficulty worsens. Without appropriate support, individuals sorting out bankruptcy may turn to fund lending and more often debt standings are further impaired with ridiculous interest rates. Deciding on which substitute would be best put into action into personal circumstances if bankruptcy legalities and procedures have been talked over fully with a proficient lawyer.

As bankruptcy continues to evolve as a conventional alternative for handling financial predicament, individuals must learn to evaluate the results attached to such choice. As it is, bankruptcy must be the least requested resolution applied only when all else fails, when alternative methods are not suitable, and past efforts have not been fruitful.

Though bankruptcy can easily be handled, the fact remains that a history of bankruptcy shows in the record for more than a few years. With rapidly shifting lending standards, it often becomes too hard for bankrupt persons to take a loan to support a fresh start. Fiscal recovery that is free from obligations and devoid of credit concerns can be best realized by consulting a proficient Van Nuys Bankruptcy Attorney.

Bankruptcy - How You Can Tell If It Will Help You

People with very large amounts of debt are searching ways to fix the problem. Many choices come to the forefront, but it will all depend on many different factors. Bankruptcy is something more people are choosing as a way out of financial troubles. The key is finding out if this is what is best for you. In this article we will look at bankruptcy and see if it is what is in your best interest.

Dealing with debt problems can be tough on individuals and family. Before you decide to file you need to take a closer look at your financial picture. Here are some things that you will need to look at before making this tough financial decision.

The first step is to gather all your bills together and see how much you are actually in debt. How weird it may sound many people cannot actually tell you how much they owe. Tally up all your loans, credit cards and bills to see where your financial picture actually stands.

Grab your three credit reports from all three credit bureaus. You will want to look and see what is on these reports. Many times we forget about bills or collections against us. This will give you a good chance to see where you stand to others who request your credit report. These three credit reports should also be looked over in case there are any mistakes on them as well.

Make a budget of all your expenses and how much money you actually bring in to your household. The budget will be able to tell you how bad your situation really happens to be. If your expenses far outweigh your monthly income bankruptcy maybe an option that you will want to consider. Before choosing bankruptcy see if you can work out a payment schedule to try and get back on track. If that is not possible maybe filing is your own option left.

You will also need to decide which two options that would work best for you. Chapter 7 and Chapter 13 are the two options that you have at your disposal. Chapter 7 will get rid of most of your debts including credit card, and medical bills, but not child support, taxes, or student loans. Chapter 13 requires that you make payments on your debt in a three to five year plan.

Deciding which option is best for you could depend on your current income and situation. If you have a high income Chapter 13 will probably be your only option. Look into the rules very carefully as each will cost you to lose certain things. By knowing everything you can make a decision about your financial future.

Bankruptcy is a big decision and something that should be taken slowly. Talking with a lawyer to see what options you have. Maybe a repayment plan can be used instead of filing bankruptcy. Do not leave an option unopened. Visit each one and then you can make a decision that is best for you and your family.

Discover How To Get A Car Loan With A Bankruptcy

If you are in need of a new vehicle you will be happy to hear that there are car loans for people with bankruptcy. Due to the bankruptcy, your credit rating has declined so you will need to look for a dealer that offers subprime loans for cars. The standard finance programs won't work for you.

Not all dealers or auto brokers offer specialty financing for a vehicle so this will require a little research on your part. There a couple ways to go about this.

First, speak with friends, neighbors or relatives to see if any of them have found the need for car loans after bankruptcy. This may be the best place to start because you can hear first-hand what type of experience they had.

If this doesn't help then you can try doing an internet search. Go to your favorite search engine and type in "car loans for people with bankruptcy". In order to get the local car businesses include the town in your search.

Next, contact a couple of these dealers and speak with the salesperson who works with those that need special financing. Tell them a little about your situation and ask what you would need to bring when you meet with them. Set an appointment to meet with the salesperson.

Notice what you notice when you arrive at the dealership or auto broker. It will be important to feel a warm welcome from those you encounter. Bankruptcy has most likely been a difficult situation to work through and being treated with respect will make the process of purchasing a new vehicle much easier.

Once you feel comfortable ask if you can see the cars available with a bankruptcy. It will be best to look for a car, truck or SUV that is one to three years old and has lower miles on it. Finding a vehicle like this will help ensure that the car will be mechanically sound for the duration of the auto loan.

You may want to ask the salesperson if they have technicians that have inspected the engine. In addition, ask if they did a safety inspection on the vehicle. It's always good to know that the vehicle you are buying will leave you feeling confident that your family will be safe while in the vehicle. And, another good question is to see if the dealership has run a Carfax report to reveal any possible prior damage to the car.

After taking a few cars for a test drive, sit down with the salesperson to write up the loan papers. Once the deal is complete it is important to make the payments on time each month. This will help you begin the process of rebuilding your FICO score.

Car loans for people with bankruptcy can give you a fresh new start rebuilding your financial portfolio in a positive way.

Chapter 7: Who Qualifies?

In today's volatile financial times, many people face insurmountable debt. Mortgages and credit card payments are so high that it is a challenge for many people to even cover the interest that is accruing. Fortunately, the bankruptcy code of the United States provides several options for people who are struggling. One of the methods available to people is to file under Chapter 7.

This type of bankruptcy eliminates unsecured debts like credit cards, medical bills, and some personal loans. These are all called unsecured because they do not have any collateral assigned to them. For example you will not have to forfeit your house or your car if you were to default on these.

By filing Chapter 7, you protect things like your home, your car, and your earnings from your job by protecting them from your creditors. It is also sometimes used to prevent foreclosure. It is important to note, however, when this type of filing is appropriate, so here is a list of the various situations for which it is appropriate.

People with a huge amount of credit and medical bills are able to file Chapter 7. Fortunately, in this situation, the benefit is fairly immediate and it will not require years to get a new start. It is necessary to go to court and go through several processes so be sure to hire a competent attorney.

Chapter 7 is also best for people who have very little income. This bankruptcy code is designed to help people who are drowning in debt and cannot possibly afford both to live and to service these bills. In order to qualify, a person must have an income below the bankruptcy means test. This is different in every state, but a person must have an income below it or else be able to show that the money they do earn is insufficient to cover at least part of the amount they owe. There are a number of resources both online and at the local bankruptcy attorney that will be able to help you determine eligibility.

Finally, a person filing this chapter of bankruptcy has very little property. This is not the right thing to do if you own several homes, a boat, some jet-skis and a timeshare on the water. Because it is a sort of liquidation, anything that is non-essential may be sold to service the debt. People are often allowed to keep their home, their car, and their clothes and personal effects but anything extraneous may be seized to recoup some of the losses.

Remember that going bankrupt will have an effect on your credit for ten years. Obviously if it has reached this point, your score is probably pretty badly impacted as it is, but nonetheless this is nothing to enter into lightly. Contact a lawyer and discuss your options and determine what your needs are and whether Chapter 7 serves them.

Re-Establishing Credit After Bankruptcy

Facing bankruptcy, a common worry is that it will be nearly impossible to re-establish credit after bankruptcy. Contrary to what many people believe, your credit score can recover and rise again after a bankruptcy. Furthermore, a bankruptcy will not stay on a person's credit report or affect their credit forever. A chapter 13 bankruptcy stays on a person's credit report for 7 years, while a chapter 7 bankruptcy stays on the report for 10 years after filing. While this may seem like a very long time, it is worthwhile to remember that in determining one's credit score, new information is weighted more heavily than older information. In other words, two or three years of regular, monthly payments on a credit card without ever being late, can cause a person's credit score to rise despite a past bankruptcy filing.

However, one must always realize that a credit score does not necessarily mean easy access to loans since the current lending climate is more important in this regard than any other single factor. In 2005 it seemed anyone with a pulse could obtain 100% financing for a 4,000 square foot McMansion in California. Today, someone with a 750 credit score and twenty percent equity in a Bay Area home may find it difficult if not impossible to refinance. Why? The answer has nothing to do with that person's credit and everything to do with the reaction by mortgage lenders to the fall out from their own previous recklessness in extending credit.

Apart from credit scores, however, bankruptcy certainly has its benefits. For one, all the harassing calls from creditors must immediately stop. Our bankruptcy attorneys serving Fremont and the San Francisco Bay Area can explain what your options are and how much debt you may be able to discharge through bankruptcy. Additionally, an experienced bankruptcy attorney can help explain strategies to re-establish and improve credit after filing bankruptcy. While for some time it may be more difficult to get credit cards or other loans, bankruptcy can provide a fresh financial start and actually improve a person's credit after bankruptcy in the long run. Most people still can get a secured credit card after a bankruptcy, which is one of the best ways to begin to re-establish credit.

When facing a mountain of debt, getting a discharge through a Chapter 7 bankruptcy can go a long way towards getting a person back on track to financial freedom. However, if you cannot qualify for Chapter 7, either because you have sufficient income after monthly living expenses to pay some of your debt, or because you have more assets than you would be allowed to keep in a Chapter 7, then Chapter 13 may be a viable option. Instead of a relatively quick discharge of debt, Chapter 13 offers a partial or total discharge of remaining debt, but only after a payment plan is completed by the debtor.

Once your bankruptcy case has closed with a discharge, your credit can almost certainly go nowhere but up. The financial management courses mandated by the 2005 Bankruptcy Act (BAPCPA) generally advise debtors of two methods for re-establishing credit after bankruptcy: Obtain a secured credit card, as described above, or purchase a used car from a used car lot that will finance nearly anyone. Additionally, if an auto loan is reaffirmed in a Chapter 7 bankruptcy, then the lender will usually report timely payments to the three credit reporting agencies (CRAs) going forward.

Chapter 7 Considerations

Just as no two people's financial situation is the same, no two bankruptcy cases are the same. In fact, filing for Chapter 7 or 13 can vary greatly between filer. Before deciding on which to file, there are a few considerations that go along with a Chapter 7 case.

Your Income

Not everyone is eligible to file for Chapter 7 bankruptcy. In fact, there is a strict test that you must pass demonstrating that your income is not sufficient to repay your debts. Known as the means test, this test helps weed out the people that could repay their debts through Chapter 13 repayment plan. After all, your debts are your responsibility and although bankruptcy is a tool to help, it should not be abused.

Your income becomes especially important if you are filing for bankruptcy as a married couple. In general, a joint filing will lead to a higher reported income between the two of you, which may disqualify you from eligibility. If the bulk of your debts are individual debts, you may want to consider filing separate from your spouse to increase the chances you qualify for Chapter 7. However, if your debts are mostly jointly held debts you may not be able to file separately.

Your Assets

The biggest issue of concern for most people is the fear of losing their assets in bankruptcy. In general, many of your assets could qualify for exemption from liquidation during the bankruptcy process thanks to generous bankruptcy exemption laws. There are some situations in which certain assets may be allowed to be liquidated by creditors in order to satisfy a debt. However, this does not mean that any of your assets will be seized and liquidated.

The risk of having a secured debt asset liquidated in bankruptcy is higher in a Chapter 7 case than a Chapter 13 case, whereby you repay your debts over time. Only a qualified bankruptcy attorney can help determine if any of your debts are at risk in your Chapter 7 case.

Your Credit

You might be surprised to learn that the bulk of the damage done to your credit happens long before you decide to file for bankruptcy. However, a Chapter 7 case may make it harder for you to obtain a good line of credit after bankruptcy more so than if you file for Chapter 13. The reason is that lenders prefer a borrower who met their previous debt obligations rather than had them eliminated, as in a Chapter 7 case. This does not mean you will be unable to repair your credit and move forward, just that you may have to work a bit harder to prove you are not a potential risk to lenders.

SBA Loan Default: Does This Mean Bankruptcy for the Business Owner?

I frequently am asked this question from concerned business owners: "If I default on my SBA loan, and the bank calls the loan, do I have to declare bankruptcy?"

The answer is a resounding "NO!"

Bankruptcy is only necessary in certain situations. Many, if not most, situations of default (and the resulting workout) can be handled more effectively, for lower costs and better results for you, the business owner, outside of bankruptcy court.

The key is that you have to a clear understanding of what the secured creditors would obtain if the company were to declare chapter 7 (liquidation), and then figure out what the secured creditors would get from the borrower, if he/she were to declare personal chapter 7.

When a business fails, the bank must first liquidate the business assets. They typically get pennies on the dollar at the end of this process. However, the company loan does not go away, but merely become personal debt on the original borrower by virtue of the borrower's personal guarantee (PG).

But even if the borrower's PG has little or no value, the borrower must deal with the debt or it can snowball into an unforgiving issue that can lead to wage garnishment, judgments, lawsuits from the Department of Justice, and other unpleasant outcomes. Most people when faced with this situation think the only solution is to declare bankruptcy. However, the SBA actually has a procedure for settling defaulted loans called the Offer In Compromise.

The Offer in Compromise allows the borrower to make an offer to the SBA to settle their outstanding debt. This offer can either be in the form of a one time payment, or a monthly payment plan.

The Offer in Compromise does NOT require the borrower to declare bankruptcy.

In addition, the settling an SBA debt with an Offer In Compromise has NO effect on the borrowers credit score - so it is possible to huge debts for pennies on the dollar with NO NEGATIVE IMPACT ON YOUR CREDIT SCORE.

The key to success in making an Offer In Compromise is understanding the process, understanding your bank, and presenting the necessary information in exactly the manner that your bank and the SBA require.

What to Expect After Declaring Bankruptcy

Is your phone ringing off the hook? Are you receiving threatening letters in the mail from debt collectors? Have you had to borrow money to pay your mortgage, rent or basic necessities? If you can answer yes to any of these questions then you are probably experiencing financial turmoil.

Financial troubles can cause a substantial amount of stress for individuals and families. In this day and age nearly everybody's lives have been touched by the poor economy. Whether your property value tanked in the real estate collapse, if someone you know lost their job or if your favorite local café went bankrupt, you've probably been affected by the economy in some way or another.

Hard times can make people do things they wouldn't normally do. An educated father can take a second job working for minimum wage, while a stay at home mom rejoins the workforce. For some families adjusting to their weaker economic status means selling or losing their second vehicle, while others have to move from a three bedroom home to a small apartment. People generally do what they need to do to get by but sometimes doing their best just isn't enough.

There will always be those individuals and families that no matter what they do or how hard they work, they still have difficulty getting by. Perhaps mom or dad is having trouble getting a job or perhaps their mortgage rates have ballooned and they can't qualify for a refinance because there isn't enough equity in the house. Either way, these people deserve help. Nobody should have to go around in life struggling with debt that they can never repay. Bad things happen to good people all the time and debt overload is more common nowadays than it has been in decades.

People in situations like these should consider filing for bankruptcy. A Chapter 7 bankruptcy is ideal for people with a low income or for the unemployed. Through a Chapter 7, many if not most unsecured debts such as credit card debts, medical bills and personal loans can be wiped out.

For those individuals with a good steady source of income, they too might find relief from bankruptcy. Although they might earn too much money for a Chapter 7 bankruptcy, they can still consider filing a Chapter 13 bankruptcy. This bankruptcy allows them to reorganize their debts and pay them off in three to five years. If they have a home in foreclosure, it can save their home and protect the home from being lost though the foreclosure process.

Whichever bankruptcy a person files, they might experience a great sense of relief once their bankruptcy petition is filed. If you choose to file bankruptcy there are a few particular benefits that you will notice right away; for example, once the automatic stay is in place, you won't hear from your creditors any longer. This will give you some breathing room and a much needed sense of relief.

With both bankruptcies, you can take comfort in the fact that you are addressing the problem as opposed to ignoring it or letting it get out of hand. Those interest charges and late penalty fees don't go away on their own. They keep adding up each and every month, making your overall debt load larger by the minute.

Do you think you will ever catch up? Is it realistic that you will be able to earn enough money to pay off all of your debts within a few short years? If the answer is no to either question, it's probably time to start weighing your bankruptcy options. An experienced bankruptcy attorney will be able to guide you through the process so you can make the right decision.

Once your Chapter 7 or Chapter 13 bankruptcy is discharged you can start rebuilding your credit! In many cases people can rebuild their credit much faster after filing bankruptcy than if they chose to continue chipping away at thousands of dollars in debt. What might take a decade to repay if you don't file bankruptcy might be solved in a much shorter period of time if you do. To find out if bankruptcy is a sensible solution to your financial troubles, contact a bankruptcy lawyer today!

Common Myths About Bankruptcy

The decision to file for bankruptcy is not an easy one and many people experience stress when faced with the decision to file. The reason is that there are many myths that surround bankruptcy, which prevent people from benefiting from the outcomes that bankruptcy can provide.

My Assets Will Be Liquidated

Most people fear bankruptcy because they are unsure what will happen to their assets during the process. The truth is, there are federal and state bankruptcy laws that allow for much of your property to be protected from liquidation in bankruptcy. Federal bankruptcy laws can protect a home up to $125,000, one car per family and up to about $10,000 worth of personal property. Each state has different bankruptcy exemption laws, but some states allow for a home of any value to be protected, a car per licensed family member any up to $30,000 worth of personal property. A bankruptcy attorney can help you determine which exemption law would best protect your property during the bankruptcy process.

My Credit Will Be Ruined

You may have heard that a bankruptcy stays on your credit report for up to 10 years. While this may be true, it doesn't mean that your credit will be damaged in the process. The truth is, the majority of damage done to your credit happens long before you file for bankruptcy. Delinquent accounts and negative account histories are the most damaging to a credit report. After a bankruptcy, your accounts are no longer considered delinquent and your credit history has been erased to start fresh. Most people find that their credit improves after bankruptcy.

My Reputation Will Be Tarnished

A common fear that people hold about bankruptcy is that their friends, family, neighbors and employers will find out about their bankruptcy. The truth is, none of these people will find out unless you tell them. Bankruptcy is a matter of public record, but that refers to the fact that the information is publicly available for legal and court purposes. No one will put a sign in your yard or mark your personal file with a scarlet "B". Even further, bankruptcy laws prohibit employers discriminating against you based on a bankruptcy. If an employer was to find out and discriminate against you in any way, you would have legal recourse against that employer.

My Future Of Getting Credit Will Be Compromised

Many people worry they will not be able to get credit after a bankruptcy. The truth is, many lenders are willing to offer credit to consumers post-bankruptcy. You may not get the biggest line of credit with the best interest rate, but you will surely be able to obtain financing again soon. The best way to get back on track for new credit is to obtain a small, manageable credit balance and make timely payments. The more positive payment history you can prove, the better your chances of obtaining an ideal loan in the future.

Going Bankrupt? It's Not the End of the World

It's a very daunting process, going bankrupt, but realize you're not at the end of the road. Thanks to Canada's Bankruptcy and Insolvency Act (BIA) and Alberta's own bankruptcy laws, you're actually being offered a fresh start. You now have to chance to change the ways you spend and borrow money and do everything right. For many things in life you never get this option.

That's not to say that filing bankruptcy is a walk in the park either. Your credit rating bottoms out at 0 again and you may have to give up some of your prized assets, not mention all the legal work that goes into it. But don't let this stop you from inquiring.

What bankruptcy may do:

You have the chance to start fresh, debt free

Collectors and creditors will leave you alone

Your financial stresses will be lifted

As long as you can find or have employment you will have the ability to gain back your desired lifestyle

Perhaps you've already begun filing for bankruptcy or you've become overburdened with debts and are looking into your financial options. Meet with an Alberta licensed bankruptcy trustee to learn your options before filing. They will help you learn what to do with creditors and can get you started on the path to freedom from debt.

After all is said and done, know that you will no longer receive harassing phone calls from creditors and collection agencies, nor will you have severe anxieties every time you go to open your mail box because your pile of bills will have all but diminished.

You have a clean slate on which to build your estate on again. This is a wonderful time to teach yourself the tricks to finances, borrowing and lending. Meet with financial advisers, friends or family who have enjoyed financial success and read financial magazines and books to empower yourself and learn how to make smart decisions with your money.

Be thankful that you live in Alberta, where there is a $40,000 exemption allowance for home equity and the allowance to keep one vehicle valued at $5,000. Retirement accounts will also be preserved. Your bankruptcy is not a total loss. You will still have the necessities for life.

You may be surprised to learn that you can begin to rebuild your credit rating between 18 and 24 months if you're a first time filer. If you manage a steady income and are now debt free, lenders may see you as low risk. You can even get a mortgage, though the interest rates will be higher.

This is not a time to be ashamed or fearful. The black cloud of debt is being lifted from your shoulders through your bankruptcy. With some time and financial education you'll be back to building a normal life, debt and stress free. Make smart new financial resolutions and take control of your life again. Going bankrupt is definitely not the end of the world.

Chapter 7 Bankruptcy - Some Thoughts On The Discharge

Any debt that remains outstanding once a chapter 7 bankruptcy has been discharged is no longer the responsibility of the bankrupt and no further attempt at payment may be made by any creditor for any outstanding debt covered by the bankruptcy.

Under recent legislation, a means test has been introduced to ensure that everyone filing under chapter 7 is qualified to do so. It is therefore most important that anyone considering filing under chapter 7 bankruptcy employs the services of a qualified professional to review their financial position, and advise whether or not a chapter 7 bankruptcy is feasible and will result in a discharge.

It usually takes 60 to 90 days for the discharge order to be issued after the meeting of creditors. This is usually a formality and over 90% of chapter 7 bankruptcy cases are discharged. However, it is possible for a creditor to object to a chapter 7 filing, in which case the discharge can be delayed and in some cases, depending on the financial circumstances of the applicant, the filing dismissed or altered.

A chapter 7 bankruptcy discharge is dependent on a number of things and the court can legally deny a discharge for the following reasons:

- a failure or refusal to supply the court with the required financial information.

- a failure to declare certain assets that the applicant is known to have in their possession.

- committing certain illegal acts under bankruptcy legislation.

- it can be the case that an individual will transfer ownership of assets so that they are not sold but retained by the individual fraudulently after discharge which denies creditors funds that they would have had, had the assets been sold.

Under the 2005 legislation, it is now a condition that anyone applying for chapter 7 bankruptcy attends a financial management course, partly to ensure that bankruptcy is the only remaining option. Failure to attend such a course can result in the court refusing a discharge.

In order to retain certain items after bankruptcy, for example a car, the bankrupt may enter into an agreement with the creditor that as long as repayments continue to be made the vehicle can be kept and at the same time the creditor will not make representations for repossession.

Whilst a reaffirmed debt may be a possibility for some individuals, it should be noted that even after the bankruptcy has been discharged, the creditor has the right to repossess the goods if the repayments are not kept up.

A reaffirmation will only be granted after close examination of the bankrupt financial situation, and if it is shown that the bankrupt cannot be considered sufficiently solvent to maintain the required repayments, reaffirmation will not be allowed.

Chapter 7 bankruptcy is not appropriate if the individuals financial situation is compromised due to things like unpaid tax, alimony payments and student loans. This is not an exhaustive list, but such financial demands are not discharged and always have to be repaid.

The Different Kinds of Personal Bankruptcy

You have thought about it a couple hundred times. You feel that it is your last resort and the only way of possibly avoiding more financial ruin. You have read and seen other people go through it and now you are soon to take that same course yourself. Before embarking in a potentially life-changing decision of filing for bankruptcy, there may be some things one needs to know about personal bankruptcy.

There is more than one type of personal bankruptcy under the law. There is the Chapter 7 or "straight" bankruptcy where part or all of the individual's debt may be discharged to repay some of the money that the person owes.

In the process of liquidation, a person's assets are determined if they should be classified as exempt or non-exempt. The difference between the two is that non-exempt assets are usually the ones easily liquidated or convertible to cash.

These assets are then to be distributed by the court-appointed Chapter 7 trustee, who handles the financial affairs of the debtor, as payment to the creditors. Once all of the non-exempt assets are distributed, the remaining debts are now discharged, essentially making the debtor no longer liable for the discharged debts.

Chapter 7 may not be available to those who had their bankruptcy cases dismissed within the last 180 days prior to recent application and those who had been granted a discharge within the last 6 years. Remember that each state has varying laws with regards to which assets are to be exempted or not.

A person who intends to file for Chapter 7 is required to take and pass a test proving that the filer's earnings is below the state's median income for a corresponding family size. Failure to meet this requirement disqualifies the applicant for a Chapter 7 filing but instead has the option to file for Chapter 13 bankruptcy.

The second type of bankruptcy under the U.S. Bankruptcy Code is the Chapter 13. It provides the courts the supervisory powers to oversee the financial reorganization of the filer's debts.

Under Chapter 13, the court will request the applicant to submit a 3- to 5-year repayment plan in which the court will have to approve. Immediately after submission, the debtor is requested to start making payments to the court even if the proposed plan has yet to receive final approval. It is then the court who will pay the creditors.

A hearing will commence to determine the exact amount that has to be paid even as payments are continuously being made to the court. The judge will then make a ruling about the plan and then the debtor will continue paying until the repayment plan is completed. The remaining part of the loan is to be discharged and the debtor is no longer liable for it.

As bankruptcy laws are complex and changes constantly, it is a good idea to seek an advice of a bankruptcy lawyer on how to proceed in addition to checking other bankruptcy websites that offer comprehensive information that can arm you with the knowledge before taking the jump to bankruptcy filing.

Chapter 7 Bankruptcy

What is it?

The procedure of liquidation within the laws of bankruptcy in the United States. In fact, it is one of the most common types of bankruptcies in the USA.

A Deep Look:

If declaring bankruptcy is a chance for the debtors to come out of the financial crunch and begin afresh, then Chapter 7 Bankruptcy Code is one of the best ways to obtain this in a quicker way. In this code, the rule signifies that every non-exempt property that belongs to the debtor is sold off and the received money is then distributed among the creditors. However, in many cases, the debtors do not possess any assets that they may lose and thus, the new start for the debtor occurs comparatively faster.

How Chapter 7 Bankruptcy Works?

An appointed trustee collects all the non-exempt property, sells the belongings and then distributes the returns collected from the sale to all the creditors. In fact, Chapter 7 is unique compared to other forms of bankruptcy filing codes, because here the debtors do not have to pay anything to trustee.

Although in a few cases, this might mean that the debtors will lose all their assets, but this is not the fact in every case. Thus, it is highly advisable to have appropriate consultation with your bankruptcy attorney if you feel that you might lose all your assets and are hesitant to go for Chapter 7.

Under the Chapter 7 Bankruptcy, debtors obtain a discharge on every dischargeable debt. In fact, there are 19 categories of debt, which are dischargeable under Chapter 7 Bankruptcy code.

An additional benefit of Chapter 7 Bankruptcy code is that the debtors after signing a reassertion contract can continue paying for mortgage on homes or car loan. This contract according to the US Government Bankruptcy Code allows the debtors to keep some of the assets from all.

Is It the Best Solution?

Chapter 7 Bankruptcy is also popular as liquidation, which means conversion of assets or property into money or direct bankruptcy. It is the most common bankruptcy form and 65% of consumer bankruptcy petitions are filed under the Chapter 7 Bankruptcy code. As stated above, it is the quickest way to start afresh for the debtors and this is more favorable, when there is no objection from any of the involved parties. Usually, most of the debts and not all are discharged in a few months after your attorney files for Chapter 7 Bankruptcy petition.

Chapter 7: Questions About 'Liquidation' Bankruptcy

In the event you're contemplating declaring bankruptcy, there's much to learn regarding the course of action, documents and the requirements to file. It also is based, though, on which Chapter of bankruptcy you plan to go through. Here's a short summary about Chapter 7 and how it could have an impact on the way you live.

Is Chapter 7 suitable for me?

Chapter 7 bankruptcy, generally known as liquidation, is made for people who are lacking resources to settle money they owe. Their credit card companies are calling often, seeking money that just is not there. Especially if creditors are threatening to file a lawsuit, very little seems as necessary as escaping from their overwhelming debt. Sometimes the bare minimum installments on your monthly bills are difficult to come by, and the stack of debts never appears to get lessened. When this sounds close to your current circumstances, Chapter 7 may be the answer.

Exactly what do I have to do before I can file?

You will have to have finished a brief consumer credit counseling program within six months before filing. The credit advisor has to be out of a government-accredited organization or agency. You will be subject to a means test, and this stacks up your revenue alongside that of the state average. In the instance that yours is a smaller amount, your Chapter 7 petition may most likely be effective.

What goes on after I file?

On authorization of your case, the judge will set an automatic stay on your obligations, which helps prevent the continuous calls and notices creditors. About thirty days afterward you will go to the 341 meeting, at which a trustee questions you regarding the facts and factors of your case. Creditors, too, are welcome during this meeting, and qualified to formally contest any prospective dismissal of debts that they consider is unfair - typically, however, they are not there, and the whole meeting requires less than 1 hour.

May I keep any of my belongings?

This can be different between states and is worth investigating closely with your lawyer,before pursuing your filing your petition. In all of the US states, though, there are several possessions you get to keep so long as the selling of others pays off every last one of your obligations.

Bad Credit In Your Past? Get a Bankruptcy Auto Loan Fast!

You may think that a bad credit history means no auto loans for you. You probably already know that bankruptcy is to be avoided if at all possible; that it should be used only as a last resort, because it so severely damages a personal credit profile. But, if it was an unavoidable circumstance, you may still find ways to get a bad credit auto loan for the transportation that is so necessary in the four-lane free-way world of today.

Bankruptcy Auto Loans Have a Market

If you have filed for bankruptcy within the last ten years and need a car, you need to get organized. First, you need to find out who would be willing to extend credit to folks with a bankruptcy in their past. On first consideration, it might seem the odds are pretty small for such a lender to exist. Look at it this way: There are thousands of people with bad credit, especially in the rough and tumble financial milieu of today. Among them, there are thousands of people who need transportation. So, there is certainly a market for bad credit or bankruptcy car loans.

Searching for Bad Credit or Bankruptcy Auto Loans

As you look for car loans set up for those with a bankruptcy, it is easy to get discouraged. Chances are, the terms for these loans will not be nearly as good as those for folks with good credit. Many strings may be attached. Interest rates will be higher, loan amounts will be lower. It might seem unfair that lenders charge so much more, with far fewer benefits and higher miscellaneous fees. You just have to deal with it until your credit recovers from your bankruptcy crash.

Bankruptcy Auto Loan, A Repair Kit for Bad Credit

You have to understand that lending money to people who only have failure to repay written all over their credit reports is a big risk for a lender. They are giving money to folks who have not been able to make payments in the past. Also, consider this, even though the terms and conditions of your bankruptcy auto loan may be almost outrageous, you are being handed a repair kit that will help you get out of your besmirched financial situation. It will be proof that you can be counted on to pay your debts in full. Paying the loan off in a timely manner (With no late payments!) will put your credit score back on track in a timely manner.

Help for Finding Bankruptcy Car Loans Fast

Nowadays, getting auto loans is not so difficult, even for those with bad credit or bankruptcy in their credit history. To save yourself time and money, it might behoove you to approach a lender researcher. Make one application to a bankruptcy or bad credit auto loan broker and let them do the shopping. You will be able to pick among the bad credit or bankruptcy auto loan lenders so you get the best possible interest rates and repayment terms to fit your pocketbook. Shop for a broker as carefully as you shop for any product or service.

Do Not Get Discouraged

As you struggle with your bad credit history, do not get discouraged. Shop to find the best deal. Find a lender who is willing to work with you. A bankruptcy car loan you can live with will make your first steps toward credit repair rewarding. Once given your bad credit or bankruptcy auto loan, stick with your payments. You will have transportation now and a better credit rating down the line.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy permits the people to undergo a kind of financial reformation administered through a federal or centralized bankruptcy court.

What Is It?

When a person files for Chapter 13 Bankruptcy, his prime aim is to get a chance for paying back some or the entire debt with lowered or zero interest rates. Unlike the Chapter 7 Bankruptcy wherein you liquidate your assets, Chapter 13 Bankruptcy involves reorganization of debts allowing the debtors to make use of their income that they might earn in the future to repay the creditors. Thus, going for Chapter 13 Bankruptcy is relevant or apt for the debtors, who have a regular source of income and can afford to pay off the debt according to the plan. The code provides the debtors with a period of five years during which they have to pay back their creditors. Though an attorney will secure your interests in this bankruptcy code, the courts administer the entire procedure.

How It Works?

Even though the debtors are permitted to keep all their assets, the court acknowledges a fresh zero-interest repayment plan. In addition, a written plan is drafted stating the details of every transaction that will take place along with the duration of the same. The repayment process must start within a period of 30-45 days after the case begins. The temporary phase of you paying a trustee, who in turn pays to the creditor as seen in Chapter 7 Bankruptcy code is generally exempted from Chapter 13 Bankruptcy.

However, in certain cases, individuals may take help of a trustee to carry out the process of distributing the money to all the creditors as stated in the plan. Moreover, according to the laws, creditors need to rigorously follow the repayment plan acknowledged by court and are also not allowed to gather any types of claims from debtors. Here, the attorney has to come up with a fresh repayment plan that will best suit your circumstances.

One of the best advantages of Chapter 13 over Chapter 7 is the entire discharge option that you get, which is not valid under the Chapter 7 Bankruptcy. For instance, in case a debtor makes all the essential payments mentioned in plan, then he/she is offered with a full plan discharge option. There may be a few exemptions here and your attorney will advise you about that.

Another great benefit of is that the repayment plan may be drafted even if your creditor disapproves for the same, but you need to necessarily have the court's approval. However, for enabling fair proceedings, the court permits the creditors to file for an objection if they have one.

Filing Bankruptcy and Keeping Your Car

Right after I am asked if a client can keep a house, I am usually asked if they can keep their car when they file for Chapter 7 bankruptcy in Michigan. Cars are really important especially in this area where we don't have a very good public transportation system. We need cars to get to work, get the kids to school, and take care of all of our daily errands.

First we need to figure out if your car is even an asset. Remember, the Chapter 7 Trustee is interested in assets. Your car has to be worth more than you owe to be an asset. You can use NADA to value your car. Using Federal exemptions, you can protect up to $3,225 in equity in your car. If you have more equity than that, you can use some of your wildcard exemption to protect more. Virtually all of my clients get to keep their cars.

However, if you have, lets say, a brand new 2010 Audi and it is paid for then get ready to turn over the keys to the Trustee. Most of my clients don't have luxury sport cars but you get my point. If your car is worth less than what you owe, then you need to make sure you want to keep it. Maybe it's breaking down, has a really high interest rate or is worth much, much less than what you owe. In those cases, you may want to not keep the car. You can walk away from it and any deficiency will be discharged in your Chapter 7.

If you have a loan on your car and you still want it, you will have to sign a reaffirmation agreement. When you file for bankruptcy, any loan contracts you have signed are wiped out. This includes a car loan. A reaffirmation agreement reinstates the car loan. If after bankruptcy you default, the lender can repossess the car, auction it off, and sue you for any deficiency so make sure the car is worth that risk.

To learn more about bankruptcy, please take some time to visit my website at: Downriver Bankruptcy.

How Long It Takes to Declare For Bankruptcy

The First Step - Sitting Down With an Attorney. The bankruptcy process begins at your initial consultation with an attorney.

After discussing and evaluating your specific situation, your attorney will make a recommendation concerning which type of bankruptcy will be the best for you. The recommendation will not only be based on the bankruptcy laws, but also on your goals.

The Second Step - Credit Counseling. One of the requirements necessary to file a Chapter 7 or Chapter 13 bankruptcy is that you must take a credit counseling class prior to filing your case. There are several United State Trustee approved credit counseling agencies. Many of these agencies offer classes on-line to accommodate busy people. This class must be taken within 180 days prior to the filing of your bankruptcy. Once completed, you will receive a certificate of course completion. That certificate will be filed with your bankruptcy case.

Filing Your Bankruptcy - The Hard Part Is Over

After you have completed your credit counseling class, you will come in to your attorney's office to review and sign your bankruptcy papers. Your attorney will then file your case with the Bankruptcy Court. Once your bankruptcy is filed, the Automatic Stay is imposed. The Automatic Stay stops anyone from continuing or starting any collection efforts against you without the Bankruptcy Court's permission, including law suits, repossessions, garnishments, and foreclosures.

When your bankruptcy is filed, a Trustee is appointed. In a Chapter 7 Bankruptcy, the Trustee's main job is to review your Bankruptcy Petition and to sell any non-exempt property you have. Don't worry! Most people don't lose anything. Your attorney will let you know before your bankruptcy is filed if you are in danger of losing any property.

In a Chapter 13 Bankruptcy the Trustee's job is different. The Chapter 13 Trustee reviews your Bankruptcy Petition and Chapter 13 Plan to make sure your plan to re-pay your bills will work. The Chapter 13 Trustee also collects payments from you each month. The money collected by the Chapter 13 Trustee is then distributed to your creditors according to your Chapter 13 Plan. The amount of money you will have to pay to the Chapter 13 Trustee and the length of your plan depends on a variety of factors, such as your monthly income, expenses, and the type of bills you have.

Your "Court" Date - The Section 341 Meeting

It's not really court. It is a meeting with the Bankruptcy Trustee assigned to your case, otherwise known as a Section 341 Meeting of Creditors. This usually takes place approximately 30 days after your bankruptcy has been filed. Even though it's called a Meeting of Creditors, creditors rarely show up. The meeting typically takes only 10 minutes and is generally pretty simple. The Bankruptcy Trustee will ask you questions, under oath, based on the information contained in your Bankruptcy Petition.

One Last Class To Take

In order to receive your bankruptcy discharge (which is what you are shooting for) you are required to take a Debtor Education Course. This course is very informative and helps people in identifying financial issues to work on in the future. Like the Credit Counseling Class, the Debtor Education course can be taken on-line. This course typically takes a little over an hour. Once completed, you will receive a Certificate of Completion which your attorney will file with the bankruptcy court.

Discharge - You're All Done!

In a Chapter 7 Bankruptcy, you will receive your discharge approximately 75 days after your Section 341 Meeting of Creditors. In a Chapter 13 bankruptcy, you will receive your discharge once you have successfully completed your Chapter 13 Plan. The Discharge is the document issued by the Bankruptcy Court which officially relieves you of your dischargeable debt. Please note that some debts cannot be discharged in a bankruptcy. Examples of non-dischargeable debts include most student loans, most taxes and other debts owed to the government, child support obligations, and debts that were not included in a Chapter 13 plan. Your attorney will advise you concerning which of your debts will be discharged and which debts will not.

Bad Credit Car Loans May Be Easier Than You Think

Car loans for people with bad credit may take a little more effort but are not impossible today. If you find yourself recovering from a tough financial situation and are in need of a set of wheels you do have options for a car loan. This is good news for a large number of people in today's economy.

Bad things happen to good people and it is welcome news to know that there are car dealerships and car brokers who are there to help in the recovery process by doing everything possible to secure you a car loan.

A car loan can be very beneficial in helping to rebuild your credit history. One of the fastest ways to increase your credit score is with a car loan that you can responsibly pay back on time. Each time your car payment is made on time your credit score will increasingly improve.

Finding a car loan for people with bad credit requires a special finance car dealership or car broker. Here are a few tips to help you find a compassionate and understanding salesperson that will do all they can to help you into a new set of wheels to begin improving your credit history.

The first place to begin is to search online for a local dealership or auto broker that has a special finance department. Not all car dealerships or brokers offer these services. Try using the words "special financing" in your Google search. This may help narrow down your search.

Next, contact a couple of these that do have a special finance department and ask what you would need to bring with you on your first visit. There are a few items that will help the salesperson with a pre-qualification process for a car loan for people with bad credit.

Once you have been able to collect the necessary information, visit a couple different dealerships or car brokers. Your initial visit will be a great indicator of the type of dealership you are working with. It is a good sign if you are welcomed in a warm and caring manner. There are some car dealerships or brokerage firms that may tend to ignore you once you ask for the special finance department. If you feel uncomfortable in any way, I would suggest that you move on to your next choice.

After you find someone that you feel comfortable with, discuss your personal situation answering all questions honestly so that the salesperson can best help you.

Finally, allow the special finance department of the car dealership or broker work out the best possible solution to your car loan needs. Pay your car loan on time each month and trust that you are on the road to recovering your positive credit score.

File Bankruptcy Paperwork Without The Help Of An Attorney

For consumers of ordinary means attempting to eliminate mounting medical bills or credit card debt balances, the assistance of legal representation will be most valued during the initial bout of paperwork before they file bankruptcy. Still, even if the expense of an attorney would not be easily affordable, borrowers need not break the bank to forge an effective measure of debt elimination. Handling the bankruptcy documents alone might take a bit more time, but it should definitely be within the capacity of every head of household, so long as they exercise patience and sound judgment.

When debtors first start to tackle the bankruptcy paperwork, they tend to waste the greatest amount of time puzzling over which of their household possessions to include within the disclosure of assets, and this makes just about no sense, once you stop to think. We don't wish to imply that this part of the documentation isn't important. If anything, this relatively small section could make or break the declaration to file bankruptcy, and, for that reason, the men and women filling out the forms should not spend more than a moment considering whether or not an old jalopy left to rust or a big screen television on the fritz might merit inclusion. As a rule of thumb, during the preliminary process of getting ready to file bankruptcy, we encourage all readers managing their own financial; affairs without the aid of counsel to consider the Hippocratic oath and first do no harm. In other words, should any line of the forms give you pause, err on the side of too much information and take pains to not tweak the suspicions of the ruling bodies.

Ostensibly, the primary reason for going through the trouble of turning your financial life upside down to file bankruptcy (Chapter 7 bankruptcy, at least) should be to arrange the elimination of all outstanding burdens applicable under federal law. Let's assume that you are comfortably assured you will be able to show the courts that your household earned such little income over recent years that admission to the Chapter 7 bankruptcy framework isn't a concern. Further, let's go ahead and assert that your credit ratings are already so battered (and your personal property either long ago hawked or utterly beyond value, apart from the sentimental) that the fated repercussions of bankruptcy protection are no longer a concern, and you needn't burn the midnight oil trying to hide any assets or maintain some semblance of a FICO score. This does not mean that you can speed through the application without a care in the world.

Remember, it's only the job of the trustee and the judicial clerks to analyze your eligibility to file bankruptcy and, provided you emerge victorious from the bureaucratic gauntlet, inform the lenders and collection agencies specified upon your original declaration that their loan balances, if relevant for this discussion, are no longer viable for collection under federal law. If you forget to mark down the name of a lower limit credit card account you haven't used in a few years while the bankruptcy sails through the courts, that last lender shall still remain a threat to your bottom line. Even if it should come out that you've been less than deliberate when compiling your list of creditors, it would not jeopardize the program just somewhat reduce the effectiveness of the bankruptcy as a whole.

Yes You Can Get A Car After Your Bankruptcy

Just as bankruptcy is sometimes the only option when it comes to climbing out from a mound of debt, auto loans for bankruptcy are sometimes the only alternative to getting a set of wheels that will take you where you need to go. If your bankruptcy included losing a car due to high payments, auto loans for bankruptcy can be made a little easier. Learning these few steps can help you to lighten the load and get a more affordable car after bankruptcy.

Begin by doing an online search for auto brokers in your area that specialize in financing vehicles for those with poor credit or a recent bankruptcy. Not all car brokers have a special finance department so this will be your first question when you contact the brokerage firm.

After locating a couple brokers that do help those with a recent bankruptcy, pay them a visit to see if they can help you.

When approaching the brokers office, your first impression should leave you feeling comfortable and welcome. After all, filing bankruptcy has most likely been a difficult and trying experience and searching for a car should not have to add to your stress. You deserve to be treated with dignity and respect just as any other customer who has good credit.

If that first impression gives you the feeling that you are dealing with an establishment that cares and understands it is time to take the next step. The most powerful thing you can do is be up front and completely honest with your situation. Each person who has been through financial tough times has unique and individual reasons for inquiring about auto loans for bankruptcy. Your situation is just as specific as your unique DNA and should be treated as such.

Once you have been honest with your distinctive circumstances, here is a list of questions to ask the special finance department in regards to your auto loan. The answers to these questions will help ease the anxiety as well as inform you of what this brokerage has to offer you in terms of getting a new used vehicle.

* Do you require a down payment? There are some dealerships that will require little or no down payment.

* What types of used vehicles do you have that will work with my financial budget? You want to know that the broker has quality used cars that are affordable for your specific situation.

* What types of added service do you offer if I buy my car here? Look for the added Customer Service such as a free oil change and the car being completely detailed before you take ownership. Ask the dealership if they run a Carfax or AutoCheck report exposing any prior damage to the vehicle. This way you will know if there are any issues on the car you are looking at buying.

Using these few basic steps can help you with the process in finding auto loans for bankruptcy. Use this knowledge to help you feel more confident and at ease before trying to purchase a new used vehicle.

New Bankruptcy Laws - How New Bankruptcy Laws Make Debt Settlement A Better Option

After the new bankruptcy laws were passed many consumers began opting for debt settlement programs. This is mainly due to the fact that bankruptcy is much more difficult to qualify for and far less advantageous for consumers seeking debt relief. Up until October 27th 2010, debt settlement was still a risky option. Now it isn't.

On that date, the FTC passed new laws which makes it illegal for debt relief companies to collect upfront fees. Those that enter a settlement program now will not have to pay a fee unless the negotiation company is able to eliminate at least 35% of your unsecured debts. So if you have $40,000 in credit card debt, and the negotiation company isn't able to eliminate at least $14,000 off the balance, you do not have to pay them for their efforts.

The new bankruptcy laws were passed in 2005 and ever since then bankruptcy has become a much less advantageous option for consumers and small businesses. These laws make Ch. 7 bankruptcy nearly impossible to qualify for. Ch.7 bankruptcy is the "fresh start" bankruptcy where nearly all your debts are forgiven. In the past consumers would file for Ch. 7 and it was easy to qualify for and have your debt completely forgiven. Now you are much more likely to qualify for Ch.13 which basically just reorganizes your debt and makes it more manageable to payback. Ch. 13 is similar to debt settlement with one major difference. Bankruptcy will damage your credit score much worse than a settlement will.

What Do Bankruptcy Lawyers Actually Do?

If you've been looking at your finances lately and have come to the conclusion that bankruptcy is the only option for you to get rid of the debt that you owe, your next step is to look into finding bankruptcy lawyers to help you through the process. But you may be wondering exactly what they do.

Of course, the quick and glib answer is that they deal in bankruptcy proceedings. However, it is a little more detailed than that. For one thing, bankruptcy lawyers essentially do one of two things: they either represent their client during the liquidation of the client's assets to ensure the creditors get paid off, or, they do what is known as rehabilitation, by which they work with the client and their creditors to create a plan for repayment that does not involve the client eating Kraft dinner for the next 30 years of his life.

Bankruptcy lawyers are an important part of the entire process because they act as an intermediary between the client and that clients creditors. They ensure that each side works together towards the common goal of putting the whole process behind and they work to ensure that each party is satisfied at the end of the proceedings.

In short, bankruptcy lawyers could be considered an almost recession proof industry. After all, although the economy is doing better, there are still people that are dealing with bankruptcy and as such need these types of professionals to guide them through the process so that their dignity remains intact.

The Main Reason To Get A Bankruptcy Lawyer

If you come to the point that you are buried under a mountain of bills, collection agencies calling, and your wages are garnished, you know the sheer desperation you may feel at this time. Not only that, but your relationship with your family may be suffering as well due to the situation. In fact, you may think that the only way out of this is bankruptcy. But before you start the process, you should hire a bankruptcy lawyer.

Why this is such a good idea. In fact, you might think that you can go through the entire process on your own. However, the main reason you want to hire a bankruptcy professional is because it is their job to the various bankruptcy laws better than anyone else. They will always be able to find ways that you can get through your file with dignity and may even find a way to make it less painful.

Something else to consider is that having a bankruptcy lawyer in your honor will make the process go much more smoothly than if you were to try to do it all yourself. She or she will take a lot of the stress out of what is already stressful situation and ensure that you not get trampled in court.

Something to consider here as well is that once your bankruptcy lawyer has successfully represented you in court, you will be able to make a fresh a financial start and the whole experience behind you. One final thing to think about is that you will come away with a better appreciation of how to manage her money and of the entire process.