Important Steps Before Bankruptcy

One of the most important time frames in the bankruptcy process is the time between the decision to file and actually filing the paperwork. Why? Because this is the time that you have to make several important steps, which can maximize your chances of a successful case. In fact, there are several very important steps that should be completed long before you even sign the bankruptcy petition.

Organize Your Paperwork

When you file the petition, you will be required to provide a detailed account of your finances. This means that you will need to list information about your debts and who your creditors are, along with a list of your assets. The court will also want to see a financial spending history, statement of your accounts and evidence of your income. All of this information is highly important to the outcome of your case, which is why full disclosure and complete honesty is required.

A good rule of thumb is to list anything and everything from the last 3 to 5 years, even if you paid off the account or sold the asset. The reason is because the bankruptcy court may view missing or inaccurate information as fraudulent. Before you sit down and complete the filing paperwork, organize your paperwork and collect all of the necessary documents. This can make the process much smoother and more efficient.

Consult An Attorney

Perhaps one of the most important pre-bankruptcy steps is to consult an attorney. Although it is possible to complete the process without representation, it is recommended that everyone attend an initial consultation to have their case reviewed prior to filing. An attorney can review your paperwork, find out vital information and help determine the chance of success for your case. They are also very helpful throughout the process by assisting you with all of the necessary steps that are required to obtain a discharge. In general, you are more likely to successfully obtain a discharge with the help of a bankruptcy attorney.

Review Your Finances

Many people do not realize that their spending history prior to filing could impact their case. Bankruptcy courts may not allow debts accumulated within 3 to 6 months of filing into the discharge. Further, charging large amounts or taking out cash advances prior to filing for bankruptcy may be viewed as fraudulent. A good rule of thumb is to suspend all unnecessary spending and do not transfer or sell off any assets for 6 months prior to filing.

Bankruptcy Statistics in Oklahoma

Even as our nation begins the slow climb to economic recovery, the rate of bankruptcy continues to rise year after year. Research indicates that there are well over one million cases of bankruptcy filed in the United States each year, including both personal and business filings. In 2009, there were a total of 1,402,816 bankruptcy cases filed, 1,344,095 of which were non-business and 58,721 of which were business entities. While the states with the highest bankruptcy rates in the United States are Tennessee, Utah, Georgia and Alabama, the percentage of bankruptcy filings has increased by a great deal in most U.S. states over the past four years, including Oklahoma.

Statistically, In 2007, the total number of bankruptcy filings in Oklahoma was 8,742, 77% of which were Chapter 7 while 23% were Chapter 13. In 2008, there were 10,858 bankruptcy filings in Oklahoma, 80% of which were Chapter 7, while 20% were Chapter 13. In 2009, there were 13,813 bankruptcy filings in Oklahoma; 83% were Chapter 7 and 17% were Chapter 13. This year, the cumulative number of bankruptcy filings in Oklahoma was 11,278, 83% of which were Chapter 7 and 17% of which were Chapter 13. Oklahoma has suffered an increase of bankruptcy filings per capita every year, very nearly doubling from 2.44 filings per 1,000 people in 2007 to 4.08 filings per 1,000 people in 2010.

Researchers have collected information from cases of bankruptcy filed, creating a profile of the average bankruptcy filer. It is estimated that, as of 2008, 44% of people filing for bankruptcy are couples, 30% are women filing alone, and 26% are men filing alone. Two out of three filers have lost their job and half have experienced a serious health problem. Fewer than 9% of bankruptcy filers have not suffered job loss, divorce or serious medical issues.

In Oklahoma alone, there was an increase in per capita bankruptcy filings in 2010 while nearly doubled that of 2007. More specifically, the percentage of people who were able to qualify for Chapter 13 bankruptcy decreased each year, indicating that less and less people are able to repay their debt over time, opting instead for Chapter 7 bankruptcy, also known as "liquidation." As the trends of bankruptcy cases in Oklahoma and other states show, more and more people each year are finding themselves unable to pay their bills and mortgages on time, if at all, coinciding with the overwhelming percentage of filers who have lost their jobs or suffered a divorce or serious medical problem.

There are certain procedures and requirements necessary to file for bankruptcy which vary state by state and it is imperative to be aware of these procedures before moving forward with filing. For example, if you are considering filing for bankruptcy in Oklahoma, you will need to know whether you qualify for Chapter 7 or Chapter 13 bankruptcy. It may be a good idea to contact an experienced Oklahoma bankruptcy attorney to guide you through the process of filing for bankruptcy.

What Happens To My Car In A Chapter 13 Bankruptcy?

Let's discuss what happens in chapter 13 bankruptcies and what will happen to your car. If you are facing having to file a bankruptcy then knowing what will happen to your car can be a real concern. In this article we will discuss what you need to know so you don't find yourself out on the street without a car.

It is suggested that you work with your legal team before making any final decisions.

To begin with here's what happens in a chapter 13 bankruptcy. When you file for chapter 13 you, your attorney and the estate trustee will work together to restructure your debts so that you can pay off your loans easier.

The attorney and trustee will work with your creditors, doing what they can to lower interest rates and they may deduct late charges and fees if they are able. Then, a new monthly amount will be determined for you to get out from under your debt. This can be considered a repayment bankruptcy. Depending on your specific situation you will pay this new monthly amount for 3 to 5 years until you have wiped the debt clean.

With a chapter 13, if you have a car loan payment, you can restructure the loan and any amount you are behind into the repayment plan. Here you could keep your car. Be aware, that your car payments could most likely be more than you were paying before; this is to get you caught up on your balance that you have fallen behind on. In addition, you are responsible for the entire amount of the loan. If your car is worth $4,000 and you still owe $6000, you are forced to pay the entire balance.

If your car was repossessed shortly before beginning the bankruptcy case, you have a slight period of time where you may be able to get the car back by including the balance due in the repayment plan.

The final option you may apply for is called a cram down. This is where the courts have the opportunity to lower your loan amount equal to the blue book value of the car. The difference between your original loan and the value of your car becomes like any other unsecured debt and you may not have to pay it, it will be discharged through the bankruptcy.

In addition, the courts have the ability to lower your interest rates to approximately 2 percent above the prime rate. Obviously, this would reduce your monthly payment making it more manageable for you.

In order to qualify for the cram down you will need to have purchased the car two and a half years prior to the bankruptcy. And the final stipulation is that the car must be paid off by the end of your repayment plan. So for example if your repayment through chapter 13 is three years, the car must be completely paid off by the end of that three-year period, sometimes this will require a lump sum to be paid in full at the end of the bankruptcy term.

Always consult with your attorney what might be the best options for you and your specific situation.

Remove Bankruptcy From Credit Report - 2 Secrets Revealed About Improving Your Credit

When someone debts exceed their annual income, they turned to the federal law where they surrender their assets to a third- party trustee who sells them to pay off outstanding debts. Any other debts left except for child support, student loans, back taxes, and alimony is discharged. Bankruptcies can be removed though they take time, so wait at least two years before you start disputing. The reason for this is that files go dead, and they are moved to storage.

Remove bankruptcy from credit report - Secret 1

You'll first want to dispute the individual items listed inside of the bankruptcy using the normal dispute method. You should then dispute items like incorrect names, dates, the amount of discharge, and the case number. Once you get rid of the accounts listed inside of the listing, it will be easier for you to delete the bankruptcy. The reason for this is the bankruptcy's records are stored in the archives, which make it harder for the credit bureau to investigate and respond back to you in 30 days.

Remove bankruptcy from credit report - Secret 2

If the debt was discharged, it must show zero on your credit report. The account should also say that it was included in the filing. Your listing should appear as Chapter 13 or 7. Some of the agencies still trying to collect may report the debt as open. These agencies are violating the Fair Debt Collection Practices Act (a law that regulates collection agencies) and the bankruptcy code. Write to the credit bureaus and the collection agencies letting them know that you may hire an attorney and file a lawsuit for violation of the code.

When trying to remove a bankruptcy from your credit report, you must have patience, and discipline as it could be very time-consuming. However, if you follow the two secrets mentioned above, you will start to see results.

Repair Your Bad Credit Score With Bankruptcy Car Financing

If you are having poor credit, or if you are not maintaining your credit score than you would be ignored by the lender, should you file an application for the car financing? It is because, auto loan lenders straight away consider you as risky borrower and even if they offer you car loan, it'd be on very high interest rates. And if you are filling an application for auto loans with bankruptcy, things would be quite different than when you otherwise apply for bad credit car loan. Lenders know that you have applied for bankruptcy, and it'd be a long haul for you to fix your credit report and get back to track. Therefore, in case you have already applied for bankruptcy and now you want to go for auto car loan, it'd not be a smooth sailing at all for you.

There are a lots of reason why individual file for bankruptcy, we do not want to discuss over here about it. But the most important point is managing a balance due (debt). Filing for bankruptcy should be a last alternative. You should know what bankruptcy lead to before you file for it. Generally there are two types of bankruptcy (1) Chapter 7 (liquidation) and the (2) Chapter 13 (Reorganized).

Here are some tips that you need to consider that would minimize the hardships when you avail car loan after showing bankruptcy:

Check the Credit Report and Credit Score and Make Sure that they are Accurate and Cleaned Up - Before applying for bad bankruptcy car finance, you need to make it 100% sure that your credit report is updated and accurate and it should mention that you have applied for bankruptcy. If you find that the credit report has flaws or it is not updated, you need to check it and remove the flaws in it. For this purpose you can always seek professional help.

Look For Experienced Car Loan Lender - Such car loan lender should have good level of experiencing in dealing with borrowers who had filed for bankruptcy. These car loan lenders will ask you the reason why you have filed for the bankruptcy and based on it will come out with low interest rate car finance.

Know How Much You Can Afford - After you have applied for the bankruptcy, you need to check what will be the amount that you can easily set against the car loan. Make it sure that you will be able to pay for the loan smoothly every month. Choose the online loan calculator in case you are availing online auto financing.

Get Financing to Improve Credit Rating - Getting a new or used vehicle financing from a lender will facilitate you to competently, though slowly but steadily, reinstate your credit ratings. Once you start paying car loan payments on time and regularly, your credit score will also get improve. Later with good credit score, you have the power to negotiate the requisites of your current loan or exchange current car and obtain a new car financing.

Before you are ready to get your next car financing after you have shown the bankruptcy. The best way to deal with situation is to go for lenders who will give you the best options on car loans for people with bankruptcy. Discuss your situation with the car lenders, and get finance quotes that match your requirements.

Reasons To Consider Hiring A Bankruptcy Attorney

The bankruptcy process can be scary enough for many people and trying to represent yourself can add to that stress. Although many people are able to successful navigate the bankruptcy process without a bankruptcy attorney, the process can be much smoother with representation.

The problem is that the process is extremely detailed and requires full attention to detail. Many people miss simple items and make mistakes, which results in having their case dismissed rather than discharged. A bankruptcy attorney can be beneficial in many ways, maximizing the chances of successfully obtaining a debt discharge.

The Process

The most common area of mistakes made by people representing themselves is failing to complete the necessary steps accurately. The bankruptcy petition requires numerous financial details and accuracy is of utmost importance. If any information is missing or inaccurate, the case may be dismissed and could be viewed as fraudulent. A bankruptcy attorney can ensure the paperwork gets completed accurately and with full disclosure. However, this also requires complete honesty on the part of the debtor. An attorney can make sure that the debtor completes the credit counseling course and files the necessary paperwork with the court. If there is any problems with the paperwork, an attorney can ensure corrections are made and the papers are promptly returned to the court.

A Mediator

Many people representing themselves are unaware of the requirements between themselves and their creditors. Once the case is filed, creditors must be contacted to be informed about the bankruptcy. If the debtor fails to notify the creditor, the case could be complicated and even delayed. An attorney acts as a mediator between the debtor and their creditors. Not only will the debtor benefit by not having to directly deal with the creditor or fend off collection attempts, the attorney will take care of any notifications and arrangements that need to be made.

Guidance

Proceeding without representation may save a small fee, but it won't help if bankruptcy is not the best option. Many people lack the knowledge to know whether they qualify for a less intrusive measure of debt relief, or whether they would even qualify for the bankruptcy. An attorney can review the financial situation and help the debtor determine if bankruptcy is truly their best option. They can also help the debtor determine if their debts qualify before they go through the hassle of filing the paperwork.