What Happens After A Bankruptcy Dismissal?

Many people seek debt relief through bankruptcy, which can provide more protection against asset liquidation than other forms of debt settlement. Bankruptcy can stop collection calls, wage garnishments and foreclosure proceedings.

Generally, a person filing for bankruptcy can benefit in many ways. However, many people are concerned about what happens during and after the bankruptcy process. If the case is discharged, the person is left with a clean slate to begin rebuilding their financial futures; but if the case is dismissed, they may face more challenges than before the bankruptcy was filed.

What About My House?

In many cases, people that enter bankruptcy protection have already had the foreclosure process initiated on their property. Once a foreclosure is already underway, stopping the proceedings are often difficult. If a person has filed for bankruptcy, and their case was dismissed, the home will no longer be protected from foreclosure. In a sense, the fate of the home will return to its pre-bankruptcy status.

After a dismissal, the lender is free to resume the foreclosure proceedings and collection efforts on the home as they deem necessary. However, not all hope is lost; the lender may still be willing to negotiate with the borrower in efforts to keep the home out of foreclosure. Lenders are also put at risk through foreclosure, as they stand to lose more money than if they approve a modification to the mortgage or a repayment plan. There are only two ways to keep a house out of foreclosure after a dismissal (1) negotiate a repayment plan with the lender directly or (2) re-file for bankruptcy and hope to have the case discharged.

What About My Credit?

In general, the bulk of damage done to a person's has been done long before they filed for bankruptcy. Having a delinquent credit account with unpaid debts is the fastest way to ruin a credit standing. In many cases, bankruptcy can provide a clean slate from delinquent account statuses and allow for a debtor to begin rebuilding their credit right away. When debts are discharged, the debtor is relieved of liability for the debts and their accounts are essentially marked as current, or non-delinquent.

If a case is dismissed, the credit standing will continue to suffer the effects of being marked as delinquent. Like mortgage lenders, many creditors are often willing to negotiate repayment plans with borrowers outside of bankruptcy. Similar to preventing foreclosure, the only way to protect your credit after a dismissal is to (1) negotiate a repayment plan with the creditor directly or (2) re-file for bankruptcy protection.

Moving Forward After Dismissal

Depending on the reason for the dismissal many people will be able to re-file their case immediately after a dismissal. If a case was dismissed due to failure to complete the necessary paperwork, debtor education course requirement or pay court fees, the court may grant permission to file again as soon as the steps are completed. However, if the court dismissed a case due to withholding information, concealing assets or suspected fraud, the debtor may be required to wait 180 days or more before filing again.

Anyone considering filing a second time should consult a professional bankruptcy attorney. An attorney is best able to advise whether the case is likely to be accepted a second time or whether filing for Chapter 13, rather than a second attempt at obtaining a Chapter 7 discharge, would be best.

What Every Consumer Should Know About Debt Forgiveness

Late night television is packed full of advertisements for debt settlement companies. Many people seeking debt relief options may be persuaded into using such services, some of which are not legitimate. In such cases many financially strapped people end up in worse financial condition.

The question is: is debt forgiveness legitimate? The short answer is: it depends.

Debt Forgiveness

The biggest problem to answering whether debt forgiveness or debt settlement is a legitimate process comes from the lack of definition. The industry lacks regulations that require a clear definition, which leaves room for companies to offer different types of services under its name. With so many different companies offering to settle your debts for "pennies on the dollar" or "erase debt overnight", it is hard to know whether these options will provide the financial relief you are looking for in a way that is best for your situation.

However, there are a few things to know when considering debt elimination options. First of all, bankruptcy is not the only way to financial freedom. Although it can be a valuable tool, bankruptcy is reserved for those that cannot afford to repay their debts or maintain their monthly payments. Secondly, debt settlement is possible, but finding the right company can be challenging.

Third Party Negotiations

A good rule of thumb when seeking debt relief options is to contact your creditor directly. Often, you can negotiation a debt settlement plan with your creditor directly. In many cases, negotiations involve changing the terms and conditions of the existing account, which means a new contract must be formed. Problems in debt settlement are often the result of using a third party mediator and not being able to ensure the new contract of modified conditions was approved by the creditor.

Many companies will offer to negotiate on your behalf in order to save you time and money. This problem is twofold (1) they will always charge you fees for their services and (2) it is difficult to know what you are agreeing to as they settlement contract may not present all of the fine print. Because debt forgiveness means that creditor is willing to absolve you of your debt liabilities, the arrangement should be clearly defined.

The Right Company

If you decide to use a debt settlement company, be sure you found a legitimate one by looking for the following:

The company has been in business for several years; or is rated by the Better Business Bureau.

They do not charge up-front fees for the services; or offers to rebate your money if no settlement is reached.

They offer a variety of services, such a credit counseling or debtor education courses.

They provide you an open line of communication with your creditor; and provide a copy of a negotiated settlement.

How To Qualify For A Loan After A Bankruptcy

If you have filed for bankruptcy you may already be wondering how you are going to start rebuilding your credit. The challenge is that after a bankruptcy you will have to find a company who is willing to give you a second chance to prove yourself.

The first thing you should do is to think about other components within your financial profile that would be attractive to a lender. You will want to emphasize these points in your credit application. There are 5 things that most lenders look for when considering an applicant for credit. These are character, capital, collateral, consideration and credit.

If you have good job stability, income and some assets, you are a better candidate for credit. So what are the most popular forms of credit that someone who has filed for bankruptcy could qualify for? A secured credit card, a small personal loan from a finance company or a secured loan against a vehicle are some options if you need to rebuild your credit.

Do a lot of research and shop around. Don't confuse payday loans as a credit product that will rebuild your credit. Payday loans do not report to the credit report. Neither do pre-paid master cards.

If you have filed for bankruptcy, the faster you begin re-building your credit the better. There are some loan companies who will start helping you re-establish your credit as soon as the day after you have filed for bankruptcy. All you have to do is research your options!

Keeping Your College Student Out Of Debt

As a new school year approaches, many young adults are heading off to college for the first time. Armed with many new responsibilities, these young adults have much to learn about their futures.

Sadly, it has been reported that financial literacy is declining with each generation. This suggests that as our children grow up and go off to college, they haven't been adequately trained on good money management skills.

Many college students fall into the trap of credit card debt before the end of their first year. Along with student loans, credit cards are quickly becoming the largest source of debt among Americans under the age of 25. Fortunately, there are a few ways to protect your college student's credit while allowing them to learn how to responsibly manage a line of credit.

Teaching Tools

There are numerous tools available to help your son or daughter learn to use credit wisely. Before allowing your them to apply for a loan have them participate in a credit counseling course. These courses are a required part of the bankruptcy process, but have highly valuable information for people in all financial situations. A credit counseling course overs how to create a budget, money management strategies and how to use credit responsibly. Typically, a credit counseling course is offer for around $30-$60 and last around 90 minutes. That is 90 minutes of information that can change the financial future of your son or daughter.

With the advances in technology, comes smarter ways to manage your money. There are many online tools available to help anyone create and manage a budget, which even sends alerts when they approach their budget limit. Many new smartphones have applications that can be purchased or downloaded from their banks software as an additional tool for keeping track of their money. Knowing when their money is low can prevent the misuse of a credit card on non-essential items.

Setting Rules

As a parent, you may have to co-sign on a credit card for your son or daughter. Taking on such a great responsibility requires your participation in the entire process. Don't just give your child a credit card and say "good luck", instead make the credit card a source of monthly discussion. Before your college student applies for the card, sit down and make a list of spending rules for the card. List what items or activities are acceptable for purchase with a credit card, and which are not. For example, items such as gas, groceries and school supplies may be acceptable purchases; whereas, clothing, restaurants and parties would not.

Make sure you both receive monthly copies of the statements and discuss the statement in detail. Let your child know you are proud of them for maintaining a low balance, paying on time, etc. The fiscal behaviors you instill in your son or daughter at an early age are likely to stick with them a lifetime.

The Perfect Bankruptcy Is the One You Never Have Because There Are Better Alternatives

You're now ready to enjoy the perfect bankruptcy lifestyle because you've had all you can handle of the banks and debt collectors ringing your phone constantly. No more phone calls and you won't be afraid to go to the mailbox for fear of another collection notice jumping out to bite you.

An attorney is going to fix everything for you so the judge can make all your decisions about money for you. Your paycheck goes to the court and the court trustee will send you a small allowance for food and maybe enough extra for some nice toilet paper with the remainder going to creditors. Life is just perfect again! The only thing that could make life better would be that "bankrupt" tattoo across your forehead!

Not exactly what most people would want for the new definition of the American dream is it? Suppose for just a moment that back in the late 1950s and 60s banks and the new credit card companies got Congress so upset with their shenanigans Congress decided to outlaw credit cards. Well it almost happened but lawmakers decided to give them a chance. They made a law so if you didn't want to pay unsecured debts you didn't have to!

If you want to save putting that tattoo on your forehead maybe you should check out how this strange law came into being. Use the search term "Frontline - the Chicago debacle" to see how the banks upset Congress big time by throwing money at total strangers!

Banks don't loan money or extend credit for unsecured loans, it is created out of thin air and if the so-called debt becomes uncollectible the account vanishes back into thin air where it came from plus an amount nine times the amount of the account is removed from the banks assets. It gets them upset but either way the bank doesn't lose any money whatsoever.

This war between government and banks has been going on for centuries. If you wish to watch a video chronicle then use the search term "the gig is up - money, the Federal Reserve and you" to see how the banks are winning. This Google video was presented at the University Of Colorado School Of Law in 2008 and it has dramatic life changing information.

The bank does not care about the money because they lose nothing and they have no power to take your money except through lawsuits. The cost of a lawsuit today is around $94,000 which usually exceeds the amount supposedly owed. Instead they sell the account information to collectors that will try to do the dirty work and this is where bankruptcy is easily avoidable and could even bring in some serious money if you follow the letter of the law.

Those angry congressional members wrote the Fair Debt Collection Practices Act back in 1966 making it virtually impossible for collectors to carry on the banks scheme and dooming the banks legal efforts to failure in undertaking a lawsuit because neither can ever show proof of debt. When no money is lost, the bank cannot prove damages. A letter demanding either to show damages will put an end to their claim.

Collectors are nothing more than telemarketers and here's where the Debt Collection Act gets really serious. Use the search term "FTC debt video" to see your rights over the phone. Record those calls because each violation is worth $1000 minimum and should a collector slander you in any way it could be worth a lot of money. Read how one man took his answering machine to court using the search term "man wins 1.5 million from collector" and other amounts exceeding $8 million have been awarded.

In a perfect bankruptcy you can expect to have everything taken from you with no chance whatsoever of actually making money from those creditors causing your problems. The new bankruptcy act of 2005 was bought and paid for by the banking industry while the 1966 law was written by angry congressional members. Either way you use the legal process to dissolve debt so you be the judge and maybe save that tattoo on your forehead!

Mortgage Application Pitfalls

It is true that they say that not all mortgage lenders are equal, as the same goes for applicants. The truth is, the mortgage lending market is competitive and if you want to get the best deal, you need to set yourself apart from other applicants. When applying for a mortgage many people make very common mistakes that may put them in a bad light. However, getting to know some of these common traps can help you avoid making a costly mistake.

Credit

Obviously, one of the most important aspects of applying for a loan is your credit history. Having a negative mark or delinquent account on your credit history can greatly impact the type of loan that you are able to obtain. If you have a bankruptcy on your credit report, many lenders may be hesitant to lend you money. However, this does not mean that a bankruptcy will prevent you from obtaining a loan.

After bankruptcy, make sure your credit report is accurate and reflects your debts have been satisfied. It is also a good idea to get a letter from your creditors stating that you have no outstanding debts. If you completed a Chapter 13 bankruptcy plan, be sure to provide the lender a copy of your debt repayment plan, proving you repaid your debts. In many cases, a lender will not mark you as a risky borrower if you have paid your debts in full. This also applies to any current or delinquent debts; arrange a repayment plan with the creditor and obtain documentation to show that are currently paying these debts on time.

Employment

Many mortgage lenders prefer to see a stable employment history. Any changes to employment may flag you as a risky borrower, leaving you with a sub-par or no loan at all. The lender wants to see that there is no potential for financial hardships down the road. In the event you have changed jobs before applying for a mortgage loan, you need to prove your stability in other ways. For example, demonstrate that you changed to a higher paying job, or job with more work hours. If you signed an employment contract with your employer, provide a copy to the lender along with your loan application.

Relationships

Mortgage lenders cannot discriminate between single, married or divorced applicants based on their relationship status alone. However, your status may greatly affect your total income potential; which may influence the type or amount of a loan you are able to qualify for. Because your loan eligibility will be based on the proportion of your income to expenses ratio, keep in mind that you may not qualify for a higher loan amount if you are single or divorced. If you are required to pay child support payments, provide documentation to demonstrate your ability to make timely payments. Although these payments are considered an expense, the lender always appreciates a pattern of timely payments.

Purchases

Many people fall into the trap of making too many large purchases at once. If you are applying for a mortgage loan, do not buy any other large purchases or apply for additional lines of credit. Remember that the amount of loan you will be able to obtain, and the interest rate on that loan, are directly influenced by the amount of debt you have and the amount of cash in the back. Wait until after the loan is secured before buying any new furniture or materials for renovations.