You Can Buy A Car The Next Day After Your Bankruptcy Discharge

After a bankruptcy discharge you can buy a car the very next day. Many people aren't aware you can buy a car as soon as your bankruptcy is discharged, but in many cases this is a real possibility.

If for some reason, you find yourself without a car after a bankruptcy discharge, you will want to read further.

The need to purchase a car shortly after bankruptcy may be the straw that breaks the camel's back.

If you have gone through a bankruptcy chances are you can relate to what a difficult time in life this can be. It can leave a person feeling ashamed, humiliated and embarrassed. No one likes to feel as if they have failed financially.

This entire process requires a lot of self-examination to discover how you got in over your head with your debts. All this can take a toll on the strongest of people.

The experience can be emotionally exhausting.

Perhaps you lost your set of wheels with the filing or maybe the one you did have just decided to quit running. This can add insult to injury. Most Americans cannot live without a car to get them to their job and around town.

If you can relate to this, let's remove the straw before it does break the camel's back. You could have a chance to purchase a car the day after a bankruptcy discharge.

The first place to start is to find a licensed dealership that works with special financing situations such as this. There are some lenders that may be able to work a deal for you and put you into a car, but you will have to search them out. This is because not all dealerships offer this type of financing.

You can try searching online for subprime lenders. Some websites make it possible to enter all your personal information which they will put out to several lenders at one time. This can be referred to as bidding; lending companies will compete to get a loan for you.

This is sometimes a great way to get a cheaper interest rate for a car loan after bankruptcy.

Another way may be to look for an auto consultant through a licensed dealership. An auto consultant does all the work for you. In addition, they understand that this is a temporary situation for most, and they want to earn your trust and hopefully build a relationship with you. This makes for happy customers and good business sense.

Most consultants will listen to you and work with you to figure out the best deal with the best monthly payment so that you can get back on your feet. These types of dealerships have the means to get you the car you want and a payment you can handle after a bankruptcy discharge.

An Essential Guide To Bankruptcy: What Is It All About

Bankruptcy almost seems like the big black hole of financial debt. But do we really know what it means? What does filing bankruptcy even entail? If you are looking for answers, then here is your source to all you need to know to help clear up some of the questions that you may have about the big bad "B" word.

What Exactly Is Bankruptcy?

Bankruptcy is a basic legal process that provides a person with immediate financial relief. Bankruptcy comes along in someone's life when they can no longer afford to pay for their bills. Past due debts are now going into collections and you have somehow gotten in way over your head. Bankruptcy can help by actually stopping legal actions by any and all creditors. This can more often than not release an individual from any and all outstanding debts and allows them to get back on their feet so to speak.

Different Bankruptcy Law

There are many different loopholes and versions of this and that when it comes to bankruptcy law. There are a few standard one that you should be aware of though. The process of bankruptcy according to the bankruptcy law requires you to first file an assignment of bankruptcy. Notify all present creditors that you are now starting to file bankruptcy. You will need to settle on some of your assets, meaning you may have to cash in on some of the things that you own to get out of debt. You must file tax returns, and then you are required to attend at least two credit counseling sessions. After that you are put through the discharge process and you now have officially filed for bankruptcy. These laws change all of the time so it may be wise to speak to a legal professional when handling such important financial matters.

Do You Need To File Bankruptcy?

Bankruptcy is definitely not a decision to be taken lightly. Take some time out and talk to a financial advisor before you decide anything. You can even look at your finances on your own and see if there is anything that you can figure out to do before declaring bankruptcy. This is not a quick fix. It will take not only a financial toll on you but an emotional and physical one too.

Declaring bankruptcy typically stays on your credit report for about seven or eight years. This will make it somewhat hard to make big purchases such as a house or a car. It may even make it difficult to obtain any types of credit card no matter how small. Since you have essentially defaulted on all of your debt, credit card companies and other loan companies will look at you as a high risk borrower. If you really feel like there is no other way for you to get back on your feet then go through with your bankruptcy plans, just tread lightly.

Nowhere Else to Turn

Obviously it is not an ideal situation to be going through bankruptcy proceedings. If you are however in serious financial ruin, bankruptcy may be the only choice you have to consider. Not just to get rid of old debts but to allow you to breathe easy again and not have to worry about a creditor on the phone every time it rings.

Why Pay Some Creditors Back After Filing Bankruptcy?

Since the economic meltdown of 2008, there have been an increasing number of individuals filing for bankruptcy. In the past, many people avoided filing bankruptcy and use it as a last resort because they feel that need to pay back their debts. Although many today don't have that luxury there are many situations that would make it advantageous for the debtor to pay back some of their creditors after the bankruptcy discharge.

Most normal folks don't understand what they can or can't do after a bankruptcy filing. There are many who believe it is illegal to pay someone back after the discharge. Then there are the few that get threatened by a previous creditor that was discharged in bankruptcy and feel the need to continue paying them. The truth is, once the debt is discharged in a bankruptcy filing, the debtor is no longer responsible for any of the debt. A bankruptcy discharge is a permanent statutory injunction that prohibits any creditor from taking action, including a lawsuit, while attempting to collect on a debt that was discharged in a bankruptcy filing. The creditor can be sanctioned by the bankruptcy court for violating the injunction that could include a fine for civil contempt.

Where an individual really needs to do some soul-searching as in the case of the debt from a friend, family member or employer that was discharged in the bankruptcy. They are not required to pay the debt back after filing for bankruptcy, but if they want to have any relationship with a family member or friend, they should work something out.

In the case of a debt that was owed to an employer and discharged in bankruptcy, it also would probably be a good idea. The bankruptcy law is very explicit of any discrimination of debtors by private employers or even government agencies. A private employer or agency cannot discriminate against a person filing for bankruptcy, because the employer's debt was discharged in the debtor's bankruptcy filing. These bankruptcy discrimination laws include, terminating the employee, any kind of discrimination against hiring or promotions, suspending the employee, not allowing the debtor to renew a license, a franchise or anything comparable. These are strong words protecting the debtor filing for bankruptcy that the employer may not discriminate against the employee based solely on the bankruptcy filing. Even though the bankruptcy laws very explicit about discrimination, it would be a good idea to continue paying the employer back the money owed. They could be as simple as the employer needs to lay off three employees if the debtor is more experienced but would probably be the first to go. It would be very hard to prove that this was a case of discrimination and not just economic downsizing.

Filing bankruptcy wields a lot of power and the debtor needs to remember if they want to keep relationships with family members and friends, even though they don't have to pay them back, it would be in their best interest. The debtor should discuss the matter with their bankruptcy attorney to get some feedback. The best thing to do is put yourself in the creditor's shoes and ask yourself, how would you feel if your friend didn't pay you back?

Why Chapter 13 Is Preferred Over Chapter 7

Deciding between which type of bankruptcy to file isn't always an easy task. Further, once you decide you may find yourself ineligible for one type of bankruptcy. In general, there are a few reasons why some people choose to file for Chapter 13 over Chapter 7 bankruptcy.

Mortgage Default

Chapter 13 bankruptcy can be more beneficial than Chapter 7 if you have fallen behind on your mortgage payment. First, your home can be protected from foreclosure with greater confidence than a Chapter 7 case. The reason is because you will be making payments towards the missed mortgage payments in a Chapter 13 case. Although bankruptcy exemptions offer protection of the home from seizure during bankruptcy, some state's exemptions rarely cover a house over $200,000. In many states, there is no guarantee the home is protected from seizure during Chapter 7. Second, you will be able to repay your delinquent mortgage amounts (arrears) over a specified period of time in Chapter 13. In many cases, you will be able to repay your missed mortgage payments in a way that you can afford without any additional interest fees or costs.

Asset Protection

The biggest issue with Chapter 7 bankruptcy is that some assets are vulnerable for seizure and liquidation. Bankruptcy exemptions can offer protection of some of your property, but each state's exemption laws vary. With so much variability in exemption laws, and the federal laws only offering basic protection, this puts assets such as your house, car and personal property at risk during Chapter 7. There is far less risk of asset liquidation in Chapter 13, mainly due to the fact that the debts are being repaid. As long as you continue to make your payments through the Chapter 13 plan creditors are not allowed to seize and liquidate assets.

Income Standards

Qualifying for Chapter 13 bankruptcy can be easier for many people than qualifying for Chapter 7. The eligibility standards for Chapter 7 are strict in order to weed out those who could afford to repay their debts. Many married couples filing jointly find it difficult to qualify for Chapter 7 because their combined income exceeds the eligibility standards. In general, if your income is greater than the median income of your state, you will be eligible for Chapter 13, but not Chapter 7.

Non-Dischargeable Debts

Some debts are not eligible for discharge under a Chapter 7 bankruptcy, but could be repaid through Chapter 13. Many people make the mistake of filing for Chapter 7 without knowing whether or not their debts qualify for discharge, leaving them with a case dismissal and no debt relief. The main debts that are not dischargeable through Chapter 7 are taxes, student loan debts, spousal/domestic support payments or debts incurred by fraud.

Bankruptcy Automatic Stay - Why It Is Important To You

One of the most important and beneficial aspects of the bankruptcy process is the bankruptcy automatic stay. Essentially, the second that you file with the court, a bankruptcy automatic stay is issued. What this means is that wage garnishments, repossessions and foreclosures are all stopped. In addition, your creditors are now no longer permitted to contact you and if they do so, they face a potential fine for defying the terms of the bankruptcy automatic stay.

One common question is whether or not you should personally notify your creditors of your bankruptcy automatic stay. I would recommend that you do so if, for example, you have a repossession pending immediately. If a company does unwittingly repossess your vehicle, for example, while you are under protection of the bankruptcy automatic stay, you will be able to get it back in all likelihood, but this creates more work for yourself and your lawyer and thus is better avoided.

As such, I would recommend that you do notify, after filing, any car finance companies attempting to repossess vehicles and also your employer if you are currently experiencing wage garnishments. By federal law, your employer should not discriminate against you because you have filed for bankruptcy, so you should technically not have to worry about this or even consider it when notifying your employer. Though, of course, these things do happen sometimes anyway.

One thing to bear in mind is that it is probably not a good idea to notify any finance company trying to repossess your vehicle of your intention to file bankruptcy before you actually do file. This may simply make them go ahead and complete the repossession more quickly, while they still have the legal right to do and before you actually file. As such, I would recommend waiting until your bankruptcy automatic stay is in place.

Should You File For Bankruptcy Without An Attorney?

If you are one of the unfortunate many who are struggling to pay debts and simply cannot afford to do so, then you are probably considering bankruptcy. And let's face it; if you are already in this situation then you probably want to make it so you have fewer bills - not more. It is for this reason that so many seek to file for bankruptcy without an attorney, to save money

However, if you file for bankruptcy without an attorney, you really do set yourself up to fail. Yes, you have probably heard loads of people telling you about how you can file for bankruptcy without an attorney, how they did it themselves etc. But I would hazard a guess that this was prior to 2005.

Back in 2005 and after extensive campaigning by credit companies, Congress made a huge set of reforms to bankruptcy laws in order to prevent those who do not really need to declare bankruptcy from doing so just because they are unwilling to repay debts. This was known as the Bankruptcy Abuse Prevention and Consumer Protection Act. If you think the name of that law is complicated, then you should take a look at the laws themselves! Essentially, these changes made the bankruptcy code hugely difficult to understand, even by the standards of the professionals. So going it alone simply is not an option now.

In fact, so complicated were the reforms, that a number of institution professionals refer to it as the Bankruptcy Abuse Reform Fiasco, 'lovingly' shortened to 'BARF'.

So with the new added complications, avoiding attorneys is a bad idea. If you want to be successful in filing then you really need to accept legal fees will be a part of it and chalk them up as essentials that you will just have to pay!

Bankruptcy Records Are Not Free for a Reason

Plain and simple, bankruptcy records are not free. Though bankruptcy records may be documents residing in the public records, administrative fees are necessary for their release. Public clerks who maintain and provide those public records do not work for free, after all.

Paper and electricity are not free either. About the only thing that companies who offer such a service will be able to tell you for free is that you have filed for bankruptcy. Well, duh! They are going to know that bit of information just because you have contacted them. Do they think someone would approach them without having status as a person with a bankruptcy on their records?

Charging for Release of Bankruptcy Records

Of course, bankruptcy records can be found within a public database and these files can be accessed and printed. But, this is not a free service. Any company operating and delivering on the premise that they can offer you free records would soon go bankrupt.

They will be assessed a fee; how can they not charge you? Also, it is probably a good thing that these records are not free. Charging a fee adds another level of privacy to the documents and keeps many from digging for that sort of information for underhanded reasons. Also, if you are so interested in your bankruptcy records, realize that companies are not the only ones who can fetch those records. And they cannot do so unless they have pertinent information such as your social security number. You can go down to the courthouse and order up your own documentation. In fact, you should already have such documents left over from your bankruptcy proceedings. Your bankruptcy lawyer certainly has those records.

Not All Companies Are Bogus, But Beware

Folks who have a bankruptcy on their records should look for a company that is upfront about the fees it charges. Check a number of companies so you can compare fees. Beware of companies that overcharge, and beware of those that undercharge. Companies that overcharge are just trying to take advantage of troubled people. Sadly, this is not an uncommon practice in these recessionary times.

Companies who undercharge may be looking out for something and your best interests is probably not one of the things they are looking out for. They may be looking for your personal information for nefarious purposes. Even though you may have recently filed for bankruptcy, you can be sure that you are still a candidate for identity theft and all the bad things that go along with it. Some cases have emerged where the bankruptcy status of the person whose identity has been stolen has actually abetted the ability of the thieves to increase their dishonest self-enrichment.

When Marketing Turns into Lying

Just on the face of it, offering something for free as a way to attract a customer, and then tacking on miscellaneous fees to cover the costs, is just not right. This could be called flypaper marketing. Once you have landed, you are stuck. Would you really want to do business with folks who use such ploys? No! Honesty is probably in short supply in a business who employs such tactics. Look for a company that operates with integrity, that is up front about their fees, that is not out to take advantage of vulnerable people.

Business Law - Bankruptcy

Starting up a new business can be very hard, especially in these times of recession. More than 50% of businesses close in their first year and only 20% continue to trade after four years.

If you operate as a sole trader, you will be personally liable for any debts that your business incurs. If your company fails, your assets will be put toward paying back debts that the company has built up which means that you may face bankruptcy. If you are facing bankruptcy you may want to consider an Individual Voluntary Agreement (IVA) with your creditors first as it may be a way that you can pay back your debts without having to go bankrupt.

You should always leave bankruptcy as your last resort and it is important that you get professional legal advice from a commercial bankruptcy lawyer before you embark on the bankruptcy process. If you are sure that bankruptcy is the best option for you, you will have to go to court and convince a judge that you cannot deal with your financial situation any other way. The judge will normally issue bankruptcy for 12 months but it can last as long as 5 years depending on your circumstances and the extent of your debts.

The bankruptcy process begins with all your property and assets being sold off in order to pay off as many of your debts as possible. You will no longer be in control of your finances instead they will be controlled by an Official Receiver who will be assigned to you by the court. Any money that you make will go toward paying off your debts and you will only be given a small allowance out of your income to live on. After the period of bankruptcy set by the court is over, you will no longer be bankrupt and any debts you have left over will be written off.

On top of this when you are bankrupt there are a lot of restrictions that you have to adhere to. These include:

• Not being able to set up another limited company

• Trade as a business under a different name

• Work as an accountant or a lawyer

• Work a as a justice of the peace

• Be a member of parliament

• Work as a member of a local authority

• Get credit over £250 without getting permission from the lender

• Act as a director of a company

On top of this you may have to go through a public examination of your finances in court and lose control of all your assets. Your credit rating will also be affected negatively meaning that even when your bankruptcy is over, it is likely that you will find it very hard to get affordable credit. You should always leave bankruptcy as you final option. There can be other ways of restructuring your debt to mean that you can avoid having to go bankrupt.

Get Yourself Out Of Debt - You Don't Have To Claim Bankruptcy Until You Have Seen All The Options

Caught Up In Debt?

Here's the bad news - Debt can ruin your credit, desired lifestyle and financial gain. But wait...here's the good news - There are debt help services available to help you restore your good name.

Many Americans are experiencing a crunch when it comes to prosperity. In fact due to poor economic production many households are taking a hit. They've found themselves without a job due to the rising amount of layoffs or not making enough money in their current places of employment.

It's natural to be concerned. Your income and financial status supports your everyday living. Stability ranks high on the list of "must haves" in this day and age and although it may seem almost impossible to come by, there is a way out of debt.

But here's what you need to know; Bankruptcy is not the way. It is an option but there's something better. Debt help services are the most effective and efficient way to lose the negative credit score and the hounding creditors.

They work wonders by doing most of the work while you regain your dignity and peace of mind. You no longer have to haggle with obnoxious and rude collection agencies. Debt help programs have experienced people who will act as the third party on your behalf.

You'll get the results you desire and gain a sense of accomplishment. Follow through. If you've gotten this far, take a step further. Don't let past mistakes or financial emergencies ruin your life while you have the opportunity to get back on the right track fast. There is a way to make things better and they are hoping that you don't know anything about it!

Get the help you need and let your credit be restored. There's never been a better time than now!

What Does Bankruptcy Under Chapter 7 Means?

Bankruptcy is a drastic situation where homeowners or car owners come under direct scanner from their respective lenders. Chapter 7 bankruptcy is amongst the most prominent chapters laid under the BAPCPA, which is the new Bankruptcy law, and hence Chapter 7 was modified in the form which is available as Chapter 7 Means Test. The purpose of modification seemed to be quite necessary as the Chapter 7 Bankruptcy was being abused by many in its present form. The good thing to know out here is that all people who earlier qualified for Chapter 7 Bankruptcy will easily qualify for Chapter 7 Means Test. What's more, in case you are having huge business debts on your head, you can qualify for this new means test. If your "Current Monthly Income" is lying below median income level of the household size of your state, even then you qualify for the Chapter 7 Test. Here the term "Current Monthly Income" would mean the monthly average accrued over the past six months. In case your average monthly income in the last six months is above the median, then you have to deduct the allowable expenses using a complex calculation formula. If at the end of applying the formula you find yourself with money which is left over top pay to the creditors even after deducting the allowable expenses you fail the eligibility of mean test. You can seek Chapter 7 Bankruptcy Information from the Federal government's website. Browsing through the website will provide you with the detailed information on the norms, terms and conditions

Get ready to avail benefits under the Test which is the result of BAPCPA -the new Bankruptcy law. Chapter 7 Means Test is the new and modified version of the Bankruptcy law envisaged under the BAPCPA. The purpose is to prevent people from abusing the terms and conditions written under Bankruptcy law. With the modified Chapter 7 bankruptcy, it has become quite easy to apply for the bankruptcy and get the best way out from the losses that have incurred in your business. Make sure that you understand all the written protocols in order to secure the benefits provided under this new bankruptcy law.

Make sure that you study the Chapter 7 Bankruptcy Requirements in detail. For this purpose you need to hire the services of bankruptcy attorney and discuss your eligibility requirements. You can also look for Test calculator online to find the details.

Bankruptcy Car Loan, Repairing Kit for Bad Credit

Financing a car after you have filed for bankruptcy is really a tricky situation, and you have to be honest in discussing the situation with the auto loan lender. You think that you have honestly filed for bankruptcy, and now you can easily get a car loan from any independent lender or car financier. This is not the right way to think about getting car loan after bankruptcy. Bankruptcy puts a question mark on your credit record and this question mark stays on it for almost a decade. During this period of time, the car loan financiers and dealers will not consider your car loan application seriously. They do also not consider you as genuine applicant for bad credit car loan, and as the result situation would become quite sensitive for you to tackle.

But, you do not need to worry. Though availing auto loan will become difficult after you have filed for bankruptcy, it would not be impossible to achieve the loan. If you search with all the patience, there are many independent car loan providers and also dealership financing facilities available on line that do give you the advantage to buy auto loan after you have applied for the bankruptcy. The bankruptcy car financing rates have high interest rates, and the borrower has to make it sure that he/she will be able to pay that high interest rate. The borrower who has turned bankrupt has to fulfill certain minimum requirements such as; he/she should be of minimum 18 years of age and also must be employed for at least six months on a minimum salary.

Avail auto loans after bankruptcy, as the loan process has become simple and thorough. The loans offer fresh lease of hope to the loan borrowers who are in a despicable situation as they have lost their credit and it is also not imminent if they will be able to get back to track immediately. Keep a note that you have an updated copy of your credit history before you apply for the auto loan in bankruptcy situation.

After you have ensured your eligibility criteria for buying a car after bankruptcy, the next thing that you should be doing is search for a genuine lender who will show interest in your requirements. If you can go for online search of loan lenders then you might come across a flexible auto lender who understands your requirements more closely. Such a lender will offer you best auto loan terms, despite considering the fact that you have filed your application for bankruptcy. Check with the lender how much you have to pay every month after you have secured the auto loan.

Having bad credit history does not mean you can not get the auto loans you need, you most likely know that insolvency is the last step to be taken, that means it should be only consider as a last resort, because it so rigorously damage a individual credit profile. But, if it was an obligatory condition, you can still find ways to get a bad credit car loan for the moving that is so necessary in today fast four lane free way of world. Nowadays, getting auto car loans is not so difficult task even that have less than perfect credit or bankruptcy in their credit history. It is best option that you approach toward lenders that specialized in providing car loans for people with bankruptcy to save precious time and money.

Have You Ever Wondered - What's the Effect of Bankruptcy on Credit Rating?

Although bankruptcy can be a cost effective and quick way to eliminate debt for many Canadians sinking in a sea of unpaid bills, the effect of bankruptcy on credit rating prevents them from even considering that option. So just what is the effect of bankruptcy on credit rating?

It's best to begin by alleviating the fear some people have - bankruptcy does not prevent you from being able to borrow money in the future. Contrary to what you may have heard life after bankruptcy discharge does not mean you will need to pay cash for a car, a home, or anything at all you might want to buy for the rest of your life. There are actually banks in Canada right now that specialize in mortgage loans for people who have been discharged from bankruptcy. It will cost you more to get credit for quite awhile, but you will be able to get it.

The two most common means of scoring a credit rating are the 9 point scale and the FICO score. With the 9 point system the highest score you can get is an R1 - Pays within 30 days as agreed while the worst is an R9 - Bad Debt, Placed for Collection.

In effect, an R9 rating reflects the purpose of bankruptcy - a chance at a fresh start. Your credit file will include a notation with the date of your bankruptcy discharge which will remain there for a minimum of 6 years after your discharge.

Calculating a FICO score is pretty complex but the two most heavily weighted variables are the total amount you owe and your payment history. A surprising outcome of this method is that bankruptcy filers whose FICO score is extremely low before filing don't drop significantly lower after filing. If you are already near the bottom, how much lower can you go?

The simple fact is that regardless of which scoring system is used to rate your credit, bankruptcy is going to have a negative effect on your ability to get credit in the short term. You can find credit repair help on the Internet that outlines some little known but helpful techniques like adding your own notations to your file. If the circumstances that led to your bankruptcy were due to extremely unusual circumstances, a note explaining the situation can be viewed positively by some creditors.

If you are fortunate enough to have friends and family open enough to discuss their financial troubles you may have run across someone recently discharged from bankruptcy with an interesting story to tell.

Believe it or not, shortly after discharge some Canadians begin to get credit offers in the mail! How can that possibly be? If the effect of bankruptcy on credit rating is to destroy it in the near term, what is going on?

Creditors are in the business of lending money to make money and when some see a person who is virtually debt free, they can be ready to get you back in the game, albeit at an exorbitant cost. If you have a verifiable and stable source of income, these people see you as potentially a reasonable risk. There are specific things you can do - such as opening a secured credit card account - shortly after discharge that will allow you to demonstrate your ability to make timely payments and thus prove yourself to be a decent credit risk. For anyone willing to invest the time and effort after discharge, the real effect of bankruptcy on credit rating translates into this - you can get credit but it will cost you more.

Catch A New Dream After Your Bankruptcy - Get A New Car

If you are interested in learning how to finance a car after bankruptcy, you have come to the right place. "I don't have any credit cards, I don't have a car, I lost everything and I have nothing," she said. "How am I supposed to get back on my feet and get a car after all I have been through?"

Susan and her husband thought they were doing everything right, until their daughter got sick and insurance didn't cover her surgery and hospital bills.

They were forced to file bankruptcy.

The Truth Is: You May Never Get Back Your Old Life Style - But You Can Rebuild A Much Better Life Than What You Had Before

There are circumstances that may leave you looking for a car shortly after filing for a discharge of your debts. Where this may be a little more difficult because of your new, lower credit score and having a bankruptcy on your credit report, it may still be possible.

If you find yourself in this position, you will not want to miss this information. Catch a new dream on how to finance a car after bankruptcy, right here, right now. This is the start of your new life. You can build whatever you want now. You have a clean slate.

How To Start Rebuilding Your Credit History Right Away

The sooner you begin to reestablish your credit the quicker you can get back on your feet and rebuild your life. A car loan can be the first step to rebuilding your credit.

Why You Want To Start With Sub-Prime Lenders

Contact Sub-Prime Lenders: Sub-prime lenders are vendors who are willing to loan money for those asking how to finance a car after bankruptcy. They are able to do this by charging slightly higher interest rates. Another reason these lenders are able to do this is that if you should default they do have the choice of repossessing the vehicle. These lenders offer you the opportunity to start rebuilding your credit right away.

Three Top Choices For Finding Sub-Prime Lenders In Your Area

* The first choice would to be to do an online search. By taking this route, you can find websites that will allow you to fill in your personal information one time and the sites will present it to several lenders. These lenders may bid for your business and this could mean a chance at getting the best possible interest.

* The second choice would be a local bank or credit union. Although not every bank or credit union will work with those that have less than perfect credit, some may finance a car loan after bankruptcy. This may require a little more time on your part by simply doing a search to find a bank that will present you with a loan.

* A third choice would be an auto consultant. Auto consultants are licensed in the car business and have several resources willing to loan money for a car loan for those that have bad credit. You will more likely have the ability to explain your situation because an auto consultant works for you. You may find that you get more personal service because of this.

The key to rebuilding your credit is to be responsible and pay your bills on time. After getting your car loan you may want to apply for a secured credit card to help rebuild your credit even more.

What Is an Alternative to Bankruptcy?

If you have already begun searching the Internet for an alternative to bankruptcy you may be dazed and confused trying to sort through the options to determine which is the best for you. To help get through the maze let's begin by separating those alternatives to bankruptcy you're read about that provide legal protection from those that don't.

Alternatives with No Legal Protection

First, there are debt consolidation loans where you borrow new money to pay back old money. In almost all cases these loans are backed by the equity in your home. Some Canadians who wipe out $20,000 in credit card debt by borrowing $20,000 against their home cannot resist the temptation to continue to use those cards, resulting over time in new credit card debt plus the cost of the consolidation loan. If you fall into that trap and can't make the payments you have no legal protection against losing your home.

Second there are the debt management plans and debt settlement plans offered by for profit companies billing themselves as debt solution companies or credit counseling agencies or debt management consultants. If you enroll in any of their plans acceptance into the plan is at the discretion of your creditors. What's more there is nothing to stop them from refusing to honor the plan at any time in the future.

Alternatives with Legal Protection

Unfortunately, there are only two, and one of them - an Orderly Payment of Debts - is only available in the Provinces of Alberta, Saskatchewan, Prince Edward Island, and Nova Scotia. You will need to work with a not for profit counseling center to apply for one.

A legally binding alternative to bankruptcy available to all Canadians is the Consumer Proposal. To see if you qualify for this alternative you would need to work with a Licensed Bankruptcy Trustee. This option, along with an OPD, will stop any and all collection activity against you dead in its tracks. Creditors are ordered by the courts to stop any activity in progress - such as wage garnishments, bank account attachments, and property liens - as well as prohibiting them from initiating any activity or even communicating with you as long as you are successfully completing the repayment plan you are in.

As you probably already know there are variations in these plans but the issue of legal protection is one that is often overlooked in favor of the debt solution options advertised on television, which typically have no legal standing at all.

How important is it to be legally protected? To answer that question we have to examine the relationship between three critical aspects of your financial situation - how much you make, how much you owe, and how much you own.

Income, Assets, and Total Debt

If your total debt is low - many experts advise $5,000 or less - and your income is high enough to work out some consolidation of payments that will allow you to repay the total in 3 years or less, the chances are high your creditors will honor the plan without taking action.

Once you get into the stratosphere of total debt -- $20,000 or more - and you have significant income and assets, you could be in trouble. Your creditors could choose to garnish your income and get liens on your assets.

The best way to get specific advice about an alternative to bankruptcy for your situation is not the Internet; rather it is a face to face meeting with either a reputable Credit Counselor in your area or a Licensed Bankruptcy Trustee, or both.

What Is Chapter 7 Bankruptcy?

Do you own property in San Diego? Are you aware about the concept of filing for bankruptcies and foreclosures? First of all, let us take up the term, "bankruptcy." You have bought a property by taking a loan from a bank or from a lender. What happens when you can't make your loan payments on time? A notice will be sent to you reminding you to clear your pending payments. In case you fail to repay the amount within this period, the creditor will issue a foreclosure on your property.

Foreclosing of a property means that the borrower has to vacate the property and the control will go to the bank or the lender. They might sell it to reimburse the amount which was loaned to the borrower. You can stall the foreclosure proceedings by filing for bankruptcy. There are two types of bankruptcy known as chapter 7 and chapter 13. However, most people tend to opt for the chapter 7 bankruptcies.

To file for Chapter 7 you have to keep these things in mind:

* You need to make a list of your assets and liabilities. You also need to keep a record of your creditors and their claims.

* You need to maintain a record of liabilities and income. This list will include your monthly expenses and also the source of income and its frequency.

* A list of executory contracts and the leases that have not expired till date. For example, it can be a lease on your apartment.

* Keeping your financial statements at hand is also equally important. This statement will include your annual income for the last 3 years, foreclosures, repossessions, and also the debts that are still pending.

* The court will ask for a copy of your recent tax returns.

Remember, if you owe a consumer debt or business debt, then you need to submit a certificate of credit counseling along with a plan for the debt repayment. This plan will be outlined by the credit counseling agency. After the petition is filed, a trustee (sometimes it is appointed by the law firm representing your case) will review all the assets that you own. If any asset turns out to be non-exempt it will be sold to recover some of the loan money and it will be paid to the creditor or bank. After a gap of a month, a meeting will be arranged where the court will review your case and rule accordingly.

How Will Bankruptcy Look to Lending Institutions?

Bankruptcy can put an unfavorable mark on a person's credit report which can last up to ten years. However, the overall effect of a bankruptcy filing can be less harmful than a poor bill paying record as reported to potential lenders.

From the perspective of lending agencies, a recently discharged debtor is a better credit risk then one drowning in debt. For a person who is in need of filing a bankruptcy, their credit report often has collections, judgments, or a credit history of slow or non payments. When compared to a recently discharged debtor who is not responsible for any debt and few loans, many lending agencies are willing to extend credit to someone with a bankruptcy filing on their credit report. Many people who do end up filling bankruptcy are offered new credit cards or car loans within weeks of a bankruptcy discharge.

I have seen in my own practice of law clients whose credit score has gone up into the mid six hundreds within months of filing the bankruptcy. I have had clients be able to buy new cars and obtain a new credit cards too. Required credit counseling courses taken during the course of the bankruptcy process can help educate people so they can make responsible credit decisions. Diving back to credit cards or loans after a bankruptcy should be done with great care.

Each prospective lending institution has different regulations and it is hard to say what weight each institution will give to a bankruptcy on a credit report. With more and more people filing bankruptcy and the more common bankruptcies are, the stigma of a bankruptcy is surly less than it was before. The bankruptcy will be reported on your credit report for up to ten years but often it will be better than a credit report bogged down in unpaid debt. Bankruptcy is a tool used to give people a fresh start or a financial redo.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is otherwise known as a "straight bankruptcy," or the "debt liquidation" bankruptcy. A Chapter 7 bankruptcy is relatively simple, and it can be completed within 3 to 5 months on average.

With a Chapter 7 bankruptcy, the debtor is able to discharge the majority of their unsecured debt. Unsecured debt is not secured by any property such as a home, or a vehicle. The types of unsecured debt that can be discharged in a Chapter 7 include: credit cards, medical bills, utility bills, certain taxes (more than 3 years old), and personal loans.

Not all debts can be discharged in a Chapter 7 bankruptcy. The debts that cannot be discharged in a Chapter 7 include: child support, spousal support or alimony, court ordered fines, recent taxes, student loans, and victim restitution.

In order for someone to file for Chapter 7 bankruptcy, they must first pass the "bankruptcy means test." This test compares your median income, for a family of your size, to the median income of your state. If your income falls below the median income for your state, then you automatically qualify for a Chapter 7 and can proceed with the filing.

If your income is greater than the median income of your state, then your bankruptcy attorney will calculate certain allowable deductions. If you still have too much income, then you will be diverted to filing a Chapter 13 (debt reorganization) bankruptcy instead.

Once you have the green light to file for Chapter 7, your attorney will file a petition with the bankruptcy court serving the area where you live. You will have to file a schedule of assets and liabilities, a schedule of your current income and expenditures, a statement of financial affairs, and a schedule of any executory contracts or expired leases. Furthermore, you will be asked to provide the trustee a copy of your recent tax returns.

You will be required to file a certificate of credit counseling with the court; however, this is a relatively inexpensive course and only takes a few hours to complete on-line, or in person. The California courts will charge a $245 case filing fee, a $39 miscellaneous administrative fee, and a $15 trustee surcharge. Most filers pay these fees upon filing, but if you can't afford to pay them, the court may arrange a payment plan with you.

Once you file a petition for Chapter 7, the "automatic stay" will stop most collection activity against you and your property. For the duration of the stay, which is until your bankruptcy is discharged, creditors won't be allowed to continue with any lawsuits, wage garnishments, or telephone calls demanding payments. The bankruptcy clerk will give notice of the bankruptcy case to all of the creditors that were provided by you. A court appointed trustee will work with you to liquidate any non-exempt assets. In most cases, the debtor doesn't have any non-exempt assets and they get to keep everything that they own. In the state of California exempt property includes: a percentage of the equity of your primary residence, your vehicles up to a certain value, jewelry, pensions, clothing, furniture, work related tools, social security or unemployment income, and money from a personal injury settlement.

You will have to attend one meeting, and it is called the meeting of the creditors. This meeting is typically held around a month after the filing. You will be placed under oath, and the creditors will have the right to ask you any questions. In most cases, the meeting is very brief and it is usually a forum where the trustee can confirm that all the information in the papers is accurate.

If there aren't any objections to the bankruptcy, you will receive your discharge notice in the mail from the court stating that your debts have been discharged. You can then wash your hands of most of your unsecured debt and start out with a clean slate. Your primary focus from this point forward should be developing a sound budget and sticking to it, and rebuilding your credit after bankruptcy.

Consumer Bankruptcy Claims Down for November, But Economy Still Hurting

November bankruptcy filings by consumers were considerably down compared to last month. However, filings for the year are higher than those filed in 2009 thus far. This article details some bankruptcy statistics for 2010 and provides a summary of information on Chapter 7 and Chapter 13 bankruptcy.

A recent drop in bankruptcy claims might be an indicator the U.S. economy is slowly starting to crawl out of its current recession.

Individual bankruptcy filings for November were significantly lower than the previous month, according to the American Bankruptcy Institute (ABI).

U.S. bankruptcy filings totaled 114,587 during November, a 13.3 percent drop from October consumer filings. While individuals filing bankruptcy in November saw a decline from the previous month, the number of filings actually rose by 2.2 percent compared to November 2009.

"The drop in consumer filings from October is perhaps a positive step that the deleveraging of the U.S. consumer may be underway, after years of expanding consumer debt," ABI Executive Director Samuel J. Gerdano said. "Still, we anticipate that there will be nearly 1.6 million consumer bankruptcy filings by year end."

Bankruptcy filings by individuals during the first nine months of 2010 increased by 12 percent compared to the same period last year. The most common types of bankruptcy filed by consumers are chapter 7 and chapter 13.

Chapter 7 bankruptcy typically removes expenses such as credit card and medical debt. Filers are still required however to satisfy debts such as child support, student loans and taxes, as well as most liens, which often include car loans and mortgages. While there is no debt threshold for chapter 7 filings, eligibility is typically limited to individuals whose income is below the state median. Additionally, filers are required to relinquish any qualified assets worth over a certain amount. Profits from the sale of these assets are given to creditors.

Those eligible for Chapter 13 bankruptcy are typically able to pay back some portion of their debt. Chapter 13 filers typically enter into a three or five year repayment plan based on an individual's monthly disposable income. Filers are usually allowed to keep any remaining assets in their control once the payment plan is satisfied. Debts not part of the payment plan are not required to be repaid. Individuals filing for Chapter 13 bankruptcy can generally prevent their homes from entering foreclosure by paying delinquent mortgage payments over a set period of time.

The benefit of bankruptcy is that it provides individuals with some degree of financial relief. However, it remains on an individual's financial record for as many as 10 years, making it hard to qualify for credit.

Changes were made to the bankruptcy code in 2005 with the intention of making it harder to file. However, the ABA reports the number of bankruptcies filed by individuals continues to increase. As a whole, U.S. bankruptcy filings have risen by 12 percent since 2006.

If you're considering filing for bankruptcy, consult one of the bankruptcy lawyers in your area for a better understanding of your options.

Tips For Getting A Car After Your Bankruptcy

So, you have been through the process of bankruptcy and find the need to search for a car loan. Don't despair there is hope for getting a loan.

If you have recently used a bankruptcy to climb out from mounds of debt and your car has decided to quit running, you may find this article helpful. Here are three tips that can help you find a car after cleaning up too much debt.

Bankruptcy Will Be On Your Credit Report For 10 Years

Where this is true, it is comforting to know that it does not mean you are powerless to get credit for the next 10 years. In fact, car loans after bankruptcy are the best chance you have to obtain a loan and begin rebuilding your credit history.

There are sub-prime lenders available who are a little more willing and understanding than conventional lenders when it comes to giving you a loan for a quality used vehicle. Chances are most likely you will have to pay a little more in interest rates but if you have got the income, your car loan can be a reality.

With this, you can begin the task of increasing your FICO score by paying the loan on time each month. Each payment will be recorded on your credit report and future lenders will be able to see the responsibility you have been putting forward with your auto loan.

After One Year Of Making Current Payments, Consider Refinancing

Through the process of being responsible with your auto loan payments, you may qualify for a more conventional loan after one year. When refinancing, you may be able to get better interest rate and terms so you can lower your monthly payments.

Some people overlook the thought of refinancing for better terms. Just because your original loan is for a term of 3 or 4 years doesn't mean you can't apply for a new loan. It is good to know that with one year of faithfully paying your auto loan on time, you have this option available. Please remember to try refinancing after a year and see if it doesn't reduce your monthly payment.

Consider An Auto Consultant for After Bankruptcy Car Loans

Some auto consultants offer special financing for those with less than perfect credit scores. An auto consultant works for you and will do their best to find you special financing after a bankruptcy. An auto consultant works with you and your situation, they are less concerned about just making a car sale for the day.

In addition, using a consultant could offer you a better selection in the choice of quality used vehicle you get with your new loan. These establishments most often have a variety of resources from which they locate your vehicle.

Quality service, along with a car loan that makes sense for you and your specific situation, and auto broker may be a wise choice to help you get your new car loan.

The Disadvantages of Chapter 7 Bankruptcy

Bankruptcy is often promoted in the media as an easy way of getting oneself out of one's financial troubles. However, life after bankruptcy is rarely considered in the rush to rid oneself of the stress and strain of financial overstretch. The bottom line is the bankruptcy should be avoided at all costs.

The downsides of bankruptcy should not be underplayed, and anyone consider filing for bankruptcy would be well advised to consider them before proceeding down the bankruptcy route.

One of the biggest disadvantages to chapter 7 bankruptcy is the fact that you lose the majority of your assets including the roof over your head!

Then there is the hurt to one's pride, as your details will be published in various places, including the local media. Bankruptcy is not something that one can keep hidden.

It is also important to realise that not all debt can be discharged under chapter 7 bankruptcy, such things as alimony payments, unpaid taxes and student loans are just three of a longer list of things that cannot be discharged and always have to be repaid.

Another thing to bear in mind and think about is your relationship with your bank. The problem here is that after bankruptcy you are unlikely to have one, as banks will consider you an unnecessary risk.

Of course it may be that one's financial situation is such that one has absolutely no choice but to file for bankruptcy. Something like 90% of bankruptcies in the US are filed under chapter 7, making chapter 7 the most popular form of bankruptcy.

However, you cannot simply file under chapter 7 and a few weeks later are debt free. In 2005 the Bankruptcy Abuse and Consumer Protection Act was bought in to counter the growing practice of individuals claiming bankruptcy when they did in fact have the means to repay. Now anyone wishing to enter into a chapter 7 bankruptcy has to undergo both credit counselling and a means test to ensure that chapter 7 is indeed the best option for all concerned.

The main difference between a chapter 7 and chapter 13 bankruptcy, is that under chapter 7 bankruptcy the debtors assets are sold and the money raised distributed amongst the creditors, the debtor then being declared not liable for any further outstanding debt not covered by the sale of assets. Chapter 13 bankruptcy however, is a repayment plan where creditors are repaid over a period of 3 to 5 years, with no forced sale of assets.

How To Get A Used Car Loan After Your Bankruptcy Discharge

Yes, it's true you really can get car loans after a bankruptcy discharge. This may be more difficult with the bankruptcy reported on your credit report; however, it can be done if you know what to do.

People from all walks of life are filing bankruptcy for a variety of reasons. Maybe it is a divorce, an unexpected illness or a temporary job loss. Whatever the reasons for filing bankruptcy some people find themselves without a vehicle and don't know how to get a car loan after a bankruptcy discharge.

There are subprime lenders who are willing to grant a loan for a new car. Here are some tips on how to locate someone that can help you into a new ride.

There are auto sales consultants who are experts at finding subprime financing. It begins with a simple, local search on the internet. Make a short list of a few that you discover and begin calling them.

Tell the person you speak with a little about your situation and ask if they provide car loans after a bankruptcy discharge. Some dealerships will answer yes and some will tell you they do not.

After you discover a couple dealerships that do offer this special financing, here are a few questions to ask:

*Do they have a department that works mainly with those that have poor credit and bankruptcies?

If they say they have a specific department, this may be a good indicator as to the quality of help you will get during your specified purchase.

*What paperwork do you need to bring with you for them to determine if you can get a car loan?

Some dealerships will pre-qualify you before you begin the process of choosing a car. This can help you determine what type of car and price range you can comfortably afford.

*Do they have an inventory of vehicles from which to choose?

If the dealership has a specific inventory for those who need a subprime loan you have another good sign that special financing is something this dealership takes seriously and works with often.

*Do they have their own auto technicians who work on the premises?

This is yet another factor to help you determine the condition of the vehicles they have to offer. If they have certified technicians on the lot, chances are better that the car will be inspected for mechanical stability and possible safety inspections.

Asking these questions ahead of your visit can help you determine if this dealership is a good match for you as you look for car loans after a bankruptcy discharge.

Is It Possible To Get A Car Loan After My Bankruptcy Is Over?

In our business we often have clients ask us, "Can I get a car loan after a bankruptcy?" It seems that we have more and more people asking this same question now days. The answer to that question is yes, you usually can get a car loan after a bankruptcy.

It all depends on your personal circumstances. Every person and their bankruptcy is different and needs to be approached that way.

Due to the increasing demand, there are many lenders who will offer a subprime car loan to help those who are in need begin to rewrite their financial history. In fact, securing a car loan after a bankruptcy is a great way to begin the ascent toward a higher credit score.

Let's investigate a couple solutions to help you answer yes to the question "Can I get a car loan after bankruptcy?"

Begin by locating a couple different subprime lenders through local dealerships. Because not all dealers offer special financing, ask this up front when you call the dealership. The following tips can help you speed up the process of getting a car loan.

Prepare For Your Visit

After an interview I conducted with an auto consultant that specializes in helping people find car loans after bankruptcy, I learned it could be helpful to prepare for your visit. Nancy explained to me that getting pre-qualified can help her tailor-fit an auto loan to a person's specific car-buying-DNA.

Nancy suggested to collect the following pieces of information before taking a trip to the dealership.

*Proof of Identity - Bring a current state issued driver's license.

*Proof of Income - Bring a couple of your most recent pay stubs.

*Proof of Insurance - Bring with you your current insurance card.

*Proof of Residency - Bring a couple utility bills in your name with your current address on them.

Take A Visit To The Dealership

Now, you are prepared for your appointment. Go meet with the expert auto consultant, present your information and begin a discussion on the type of car you are looking for. An added bonus working with an auto consultant is that because they care about your specific needs, they will do all they can to find a car that suits you. This is better than being given a choice of having only three cars to choose from.

Consider a newer model car that has lower miles. A slightly used car can save you hundreds to thousands of dollars by avoiding the immediate depreciation that comes with new cars.

Ask to see a history report on the vehicle. You want to see a CARFAX or AutoCheck report to see if there were any previous problems with the vehicle. Next ask to see a safety inspection report to ensure the vehicle is safe for you and your family.

Being prepared and working with someone who is an expert can help you answer, yes to the question, "Can I get a car loan?"

Follow These Tips To Help Get A Car Loan After Your Bankruptcy

Getting a car loan after bankruptcy is not as easy it is for someone that has a stellar credit score, but it is not impossible. This news may be comforting to those who have recently had to endure the experience of a bankruptcy.

If you find yourself in the position of getting a car loan after bankruptcy you may feel helpless. It may feel as if any attempts at doing so would be futile. This is not always true! So, put a smile on your face and read on to discover some solutions for getting a car loan after bankruptcy.

Inspect Your Credit Report

The first suggestion would be to collect all three credit reports from Experian, Transunion and Equinox. Unfortunately, mistakes do happen. Comb through each report to be sure the loans or credit cards that were discharged have been removed. If you find mistakes on any of the reports, write a letter of dispute and ask that they be taken off of your credit history.

Another good suggestion would be to send a letter of explanation to each of the three bureaus. Document the reasons for your recent financial fall and explain the situation. Perhaps you had a temporary job loss, or maybe a mound of unexpected medical bills that caused you to file bankruptcy. Potential lenders will be able to read this letter and may be more understanding to your situation more willing to help you in getting a car loan after bankruptcy.

Search for a Subprime Lender

Subprime lenders specialize in helping people with bruised, poor or no credit. Your best bet is to choose a dealership or auto consultant who has experience working with people who have filed bankruptcy. Because of their expertise in this area they have several resources at their fingertips that are willing to give people another chance through a car loan. You can allow them to do the work to find you the best loan terms that will fit for your unique situation.

Go Used Over Brand New

In addition, a dealership or auto consultant may have the best selection of used cars for you to choose from when getting a car loan after bankruptcy.

Research shows that you would be wise to select a used car to avoid the serious, almost immediate depreciation that comes from a brand new vehicle. In most situations the value of your new car drops anywhere from 10 to 30 percent as soon as you drive it off the lot. This is a huge savings for you if you choose a slightly newer model used car.

The final note would to be sure that you stay current on your payments. By diligently paying back the auto loan after a bankruptcy you are beginning a positive trek back toward rebuilding your credit score.

Alternatives to Bankruptcy

In today's economic climate, a vast amount of people are dealing with the loss of their job, having difficulty finding a new one, and underwater mortgages. A poor economy can also have a direct correlation between marital stresses; hence more divorces and more money issues.

Between unemployment, losing one's home to foreclosure, and divorce, millions of Americans are experiencing serious financial turmoil. These types of problems lead people down the path to consider filing for bankruptcy. Even people, who don't suffer from any of the above afflictions, can be contending with mountains of medical bills that equally create a substantial amount of stress.

A car accident, or a life-threatening disease such as cancer can costs hundreds of thousands of dollars if not more, and these numbers are even greater if the sickened or injured individual is not covered by some kind of insurance. Having a serious illness in a family, can wreak havoc on a family's finances. These families can drain their 401k, breadwinners can be forced out of the workforce due to their injuries or illness, or they can be forced to care for an injured or ill spouse or child. All of which, can make it impossible for the family members to keep up with their medical bills, let alone their daily living expenses. Being in this situation can be quite exasperating, leaving families desperate for a reasonable solution.

When people are having serious difficulties keeping up with their monthly or daily living expenses, they should consider all of their debt relief options. Some people may not qualify for a Chapter 7 (debt liquidation) bankruptcy, where others may qualify for a Chapter 13 (debt reorganization) bankruptcy instead. Some people may wish to avoid filing for bankruptcy altogether and therefore, may wish to examine their alternatives to bankruptcy.

Bankruptcy is a personal choice, and people have to weigh all of the advantages of filing bankruptcy against the disadvantages of filing for bankruptcy before they make an official decision. One alternative to bankruptcy is debt consolidation. With debt consolidation, the debtor takes out one large loan to pay off all the smaller loans. Typically, the larger loan has a lower interest rate; therefore, the debtor pays less in the long run.

Another alternative to bankruptcy is debt settlement. With debt settlement, a bankruptcy attorney contacts your creditors and negotiates with them for smaller balances and/or lower interest rates. The goal is for the lawyer to come up with an agreement that is lower than what you owed previously, and as a result of this agreement the payments become more affordable.

Loan modification is also a tool that a bankruptcy lawyer may use when helping a debtor. With loan modification, the terms and conditions of your mortgage are lowered so that your monthly payments are lowered and made more manageable.

With both loan modification and debt settlement, the concept is that creditors usually prefer to get something out of the debtor as opposed to nothing, which is what would happen to some creditors (namely unsecured creditors) if the debtor were to file for bankruptcy.

If you are presently dealing with out of control debt, and if you would like to learn more from a qualified attorney about all the debt relief options available to you, then contact a bankruptcy attorney as soon as reasonably possible. They may be able to help you take back control of your finances so you can face a brighter tomorrow through bankruptcy alternatives.

How To Go About Getting A Loan During Your Bankruptcy

Car loans during bankruptcy are a little different than car loans after a bankruptcy. If you are still in the process of going through the bankruptcy and have not yet received the discharge, an auto loan may take a little more work on your part.

This article is going to discuss a few helpful hints for car loans during a bankruptcy. There are additional things that need to happen in order to apply for an auto loan with these circumstances.

First, let me briefly explain the process of a bankruptcy. Most often someone will retain an attorney to file bankruptcy. Once the bankruptcy has entered the court system, the court will assign an estate trustee. Now you have a legal team working together to work through the resolution of your financial debts.

In order to see the greatest benefits for finding a fresh new financial beginning, it is a good idea to use the expertise of this legal team. Their advice and opinions can truly help you in getting your feet back on the ground and start reestablishing your credit right away. There is no need to wait to start over and start building your credit score back up again.

When considering an auto loan during bankruptcy you may want to present your situation to your legal team and allow them to guide you through the best process for getting a car loan. Your court appointed estate trustee has access to both your income and your monthly bills.

Once the estate trustee sees that you will have the room in your monthly budget for a car loan, he can write a letter of permission for obtaining a car loan. This letter will be attached to your bankruptcy papers and presented to the judge. In addition, this letter will provide permission to prospective lenders that it is okay to give you a loan.

If you are trying to secure an auto loan during a bankruptcy, this permission is critical to the dealership.

It is best to be up front and honest with the auto consultant who is helping you. Meet with someone who specializes in subprime auto loans and explain that you are looking for an auto loan during your bankruptcy. Present the letter of permission to the person helping you and allow them to begin working for you.

You may be surprised to find out what your options are and that you may be able to qualify for a car loan the day after you file bankruptcy.

Getting A Used Car Loan After Bankruptcy Can Be A Wise Choice To Rebuilding Your Credit

A used car loan after bankruptcy can be a real asset to begin rebuilding your credit score. Securing a loan and making the payments on time can work like a charm by allowing you to build a positive credit history and get back on track financially.

If you have recently filed bankruptcy and had to give up your vehicle as part of the discharge, you may not be stuck out on the highway with no wheels. Today there are lenders who work closely with those that have poor credit to obtain a used car loan after bankruptcy.

You can begin by doing a search for subprime lenders in your area to find such a loan. Not all car dealerships offer this service and to prevent even higher interest rates you may want to avoid those that do not work with bankruptcy car loans.

Finding an auto consultant who will work closely with you to get a used car loan could end up being your best ally. Auto consultants are usually more concerned with your situation and getting you the right terms and car, instead of just selling you a car today. Tell them your complete situation so they can be sure to get you a loan that you can afford each month.

Another key to getting a car you can afford each month is to be careful of dealerships that want to put you into a brand new car. Where it is true, there are some salesman who will offer you a loan on a new, never been driven vehicle, this may not be the best choice.

The first reason is that more than likely you will be paying top interest rates and this will cost you more money in the long run. In addition, a car loan on a new car will most likely be stretched out over 5, maybe even 6 years. This scenario will total more interest over a much longer term, which means the car will end up costing you much more money. Plus you will have more depreciation on a new car than you would a used car.

This is a common reason for people finding themselves upside down on their auto loan. Being upside down means that you owe more than the car is worth. If you were to consider selling it or trading it in before the term of the loan is fulfilled, you could be left owing more than you get for the trade or the sale.

Consider a quality used car loan after bankruptcy to help you save money and keep you on a budget you can manage. This could be your best choice to put your finances back on track and begin looking forward to a brighter financial future. Remember, bankruptcy is not the end of your life.

Chapter 13 Bankruptcy Car Loans

Chapter 13 bankruptcy car loans are available to those who find themselves in need of a different vehicle after restructuring their debts. However, there may be some hoops you will need to jump through. Let me explain further.

When someone files a chapter 13 bankruptcy they are agreeing to pay off their debts within a 3 to 5 year period. Chapter 13 consolidates all your debts and requires cooperation with your creditors to restructure a new payment plan to pay off your existing debt.

Typically, you are agreeing to make the regular payments along with an added amount each month to help you get caught up on your debts that may have fallen behind. Additionally, this type of bankruptcy will do less damage to your credit score versus a chapter 7.

With this form of bankruptcy, you are able to keep your major purchases such as your home and your car. However, what happens if your car should start leaving you with heavy repair bills before the 3 to 5 year pay-off plan?

If this happens to you, you will need to contact your bankruptcy attorney who works with your court appointed trustee. Getting chapter 13 auto loans require permission from your estate trustee. In addition, you will be asked for a valid reason and proof for needing a chapter 13 auto loan.

This may seem a little harsh but the trustee really does have your best interest at heart. He wants to assure that you stay on the well thought out plan to getting your finances back on track. Nor does he want to put your current creditors at risk because you have made a promise to them. You will have to convince the trustee that you have a real need for a new vehicle as well as your plans to repay the new car loan.

To prepare your presentation to the Chapter 13 trustee, you will need to find a dealer or auto broker who can find realistic terms for a loan. You will want to show the trustee that you have found a reasonable interest rate as well as a car that is mechanically sound enough to last the duration of your Chapter 13 repayment term.

Another point to consider, your current loan will need to be paid off before you can get your next car. So, you will have to be sure that you can either sell your car or trade it in to collect enough for the balance of your current car loan.

Research an auto consultant dealer that works with specialized situations such as chapter 13 bankruptcy auto loans. Set up a meeting with them to get pre-approved. Do the preliminary paperwork including the interest rate, monthly payment as well as any other fees you will be charged.

An auto consultant may be able to help you more than a regular dealership because they tend to cater more to individual needs, instead of just trying to make a car sale.

Is Bankruptcy Ever a Good Idea?

In the good times we are often tempted to take on as much debt as we can afford. However, recent economic conditions have resulted in many businesses going to the wall and people losing their jobs. For many people this has meant that they can no longer afford to finance their lifestyle.

As the economic storm clouds gather and jobs lost the psychological pressure on those struggling to make ends meet can become too much. In addition, the media is awash with companies purporting to get you out of debt and giving you a clean financial start. If these two aspects can often combine to make bankruptcy look irresistible.

However, there is a problem here in that people's judgement can often be clouded by the stress they are under. Financial freedom is not the result of bankruptcy.

These adverts are designed to make you feel that bankruptcy is simple and that having gone through the process everything in the garden will be rosy. The fact is that these companies behind these ads do very nicely financially, but fail to fully explain the real consequences of bankruptcy.

The downsides of bankruptcy are many and serious. The bottom line is that the majority of your assets will be sold, including your home and cherished possessions, and your credit rating will be in tatters, your financial credibility destroyed.

Very often credit cards can be the root cause of one's bankruptcy. You may think that not having a credit card will be of real benefit to you after bankruptcy. However, credit cards can often act as a short term buffer for unexpected costs, and people often underestimate their value.

In fact the best way to improve one's credit rating is to demonstrate that one can handle credit responsibly. This can be extremely difficult to do after bankruptcy, as any sort of borrowing, even a simple overdraft, can be very hard to obtain. If you cannot obtain any sort of credit, how are you going to demonstrate that you can be financially responsible?

And this is what most companies and organisations specialising in "debt relief" failed to point out, at least in their sales literature. They concentrate on the appeal of being free from your debt and the stress that comes with it, but failed to emphasise that after bankruptcy one's financial life can still feel impossible.

Before deciding on the bankruptcy path, you should explore every single possibility of raising money to pay off some of your debt. Swallow your pride and contact friends and family, this can be very damaging to one's pride but if you go bankrupt everybody's going to know you're broke anyway. Problem is the most important thing you can do, is to have a third party who can think clearly go through your financial position and see if they can come up with an alternative to bankruptcy.

If I Declare Bankruptcy, Will That Clear All My Debts?

Everyone want to avoid being in debt. However, things happen, by choice or by chance, and everybody is indebted at times during their lives. Unfortunately, especially in these recessionary times, debt can get out of control. Your home phone is constantly ringing with collectors on the other end. Maybe your boss is complaining about phone calls the collectors make to him. Maybe you are in danger of going into default on some loans or the late fees are piling up.

Once you are at this set circumstances, you may be thinking about declaring bankruptcy to get rid of this nightmare. However, you are hesitant because of all the horror stories you have heard. You hear about people losing all their property, their homes, and any money they may make in the future. The most confusion seems to circle around whether all of your debt will be cleared away.

There are a couple of ways to approach the problem and timing is key. Your first step should be to consult a bankruptcy counselor, usually a lawyer. Their professional knowledge and experience will be put to use to your advantage. The will help you understand why timing is important. They will guide you so that you remove as much debt as is legally possible.

Bankruptcy Chapter 7 and Bankruptcy Chapter 13

There are two types of bankruptcy offered to consumers overwhelmed by uncontrollable debt. Chapter is a total liquidation of you every debt that you have current at the time of the bankruptcy declaration. It also calls for the complete liquidation of all valuable property you may own. The sale of this property will go to satisfy as much of the debt as it will cover. You are starting all over.

Chapter 13 is a way for you to repay your debt in a controlled manner and you do not have to forfeit any property. The debt is paid over time, usually via wage garnishment. But collectors can no longer hound you as they will be paid in time under the direction of the bankruptcy court.

Bankruptcy and Timing

Timing is important when it comes to bankruptcy for some obvious reasons that still are often overlooked. If you are facing a foreclosure of your home or other property, you need to start the bankruptcy process well before you lose it. However, if there is not imminent danger of losing real property, you may want to delay the bankruptcy if a large bill is about to come due. For instance, if you have a huge medical bill for a hospital stay or expensive treatments, you will want to wait so that the bill is wiped clear when the process is finished.

Another timing aspect has to do with getting help. Do not procrastinate on getting a counselor or lawyer to start the process. When they asses your financial circumstance, they will be able to help you time the procedure to cover all possible debt. The sooner you seek help, the sooner the situation can be brought under control. If your debt has become impossible for you to control, get help immediately.