How to Qualify For Post Bankruptcy Loans

How to Qualify For Post Bankruptcy Loans

You may be feeling a little overwhelmed after you come out of bankruptcy. You are probably wondering where to turn, if anyone will loan you money, what type of loans you can qualify for, and more. The answers to these questions are foremost on the mind of each person who has a bankruptcy proceeding discharged. The fact is, by filing bankruptcy, you have caused a notation to be stamped upon your credit file that can take up to ten years to remove - and you will have to put some effort into making yourself appear to be a worthwhile borrower again before you will qualify for a post-bankruptcy loan.

Although you now have a slate that is wiped clean of debt, lenders also know that you are willing to forget about your debt entirely when you file bankruptcy. You can take a few steps leading up to borrowing your first post-bankruptcy loan that will make you look like less of a risk to potential lenders.

How To File For Chapter 7 Bankruptcy

Small Steps To Good Credit

How to Qualify For Post Bankruptcy Loans

Begin your quest to show your new responsible side by obtaining at least two secured credit cards. A secured credit card issuer will grant you a credit line equal to a deposit that you allow the to hold. This card will report to the credit bureaus just the same as other credit cards, and you can add points fast with proper usage. For example, if your credit line is 00 on your secured credit card, charge no more than 0 and pay off all of the balance each month other than 0. This is a great way to demonstrate your newfound ability to manage money.

Tips From The Pros

Establishing both a checking account and a savings account is vital to looking like a good borrower. Never overdraw your checking account, and make timely deposits to your savings account - even if it is just a week. By having these accounts, you show potential lenders that you are looking out for your financial future, which is a cornerstone of being a responsible borrower and good customer.

Do not expect to qualify for a huge loan when you are fresh out of bankruptcy. Most post-bankruptcy loans start out at 0 and may be written for as much as ,000 - and are short term loans usually requiring total repayment within one to two years after you receive the proceeds. Most lenders that accept you as a borrower will use your first couple of loan products to test your money management skills and responsibility in repaying them. They will not usually go out on a limb to grant you loans larger than ,000.

Cosigner Improves Chances

You can improve your chances of approval for your post-bankruptcy loan if you have a cosigner who has established good credit and is willing to sign with you for your loan. Your cosigner would become liable to the lender if you fail to honor your end of the bargain.

Online lenders have a greater approval rate than traditional brick and mortar lending institutions due to competition online and a saturated lending environment. Online lenders will also have the added convenience of totally electronic application processes over a secure website.

How to Qualify For Post Bankruptcy Loans

How Chapter 11 Works for Business Bankruptcy

How Chapter 11 Works for Business Bankruptcy

Chapter 11 of the United States Bankruptcy Code is available to both businesses and individuals to reorganize their debts. However, it is primarily used by businesses and is available to all types of legal entities from corporations to sole proprietorships.

Businesses or its creditors can file for protection under this section of the code when the business is no longer able to service its debt. The benefit is that the debtor retains control of business operations as a debtor in possession.

How To File For Chapter 7 Bankruptcy

While maintaining most of the features of other bankruptcy chapters, going this route gives the trustee the power to operate the business. Unless disqualified for cause, the debtor ordinarily acts as trustee while overseen by the court.

How Chapter 11 Works for Business Bankruptcy

There are 2 ways these types of proceedings can begin, each of which involves a petition to the court. In voluntary proceedings, the debtor files the petition for protection to the court. But in involuntary proceedings, the creditors file the petition when it meets certain requirements.

Restructure

The debtor can then restructure his business using a variety of mechanisms. The debtor can obtain new financing on better terms than previously. The debtor can also cancel or reject contracts. The debtor also receives an automatic stay from litigation.

In cases where debts exceed the business's assets and restructuring results in the owners being left with no value, the owners' rights and interests are usually ended and the company's creditors assume ownership and control of the company.

While creditors are heard in court, it is the court that makes the final determination of the restricting plans.

Conversion

While Chapter 11 provides an automatic stay of collection efforts, creditors may ask the court to convert the bankruptcy to a 7, which will liquidate the debtor company. If this is in the best interest of the creditors, the court may grant this conversion. Sometimes liquidation can occur under an 11 to provide a greater return on the company's assets.

Contracts

In some cases, when executor contracts are cancelled, the non-debtor contracting party becomes an unsecured creditor in the bankruptcy.

Creditors

Creditors are given the same priority in this as in other chapters. Secured creditors are paid first and unsecured creditors are paid via a specified order. Each level must be paid in full before the next creditor level receives any payment.

Stocks

Chapter 11 will cause a company's stock to be delisted on the exchanges. These stocks may resume trading as over the counter stocks. The eventual result in many cases is making the stocks valueless.

Final thoughts

Sometimes it is in the best interest of the creditors for the company to be in Chapter 11 rather than a different bankruptcy chapter. Its value is greater than if assets were sold off piecemeal. Jobs may also be saved and creditors will benefit.

In the past, many large companies have been forced into this type of bankruptcy reorganization, one of the largest being Lehman Brother Holdings, Inc. in 2008.

How Chapter 11 Works for Business Bankruptcy

Is Chapter 7 Bankruptcy a Good Choice to Stop Foreclosure?

Is Chapter 7 Bankruptcy a Good Choice to Stop Foreclosure?

For those who are familiar with Chapter 7 Bankruptcy, and know what it means, they would probably recognize the fact that filing for it could help you delay and eventually stop foreclosure issues that you may be facing. This should normally be the final option for you if you have tried everything else and they have not worked for you, thus opting for Chapter 7 Bankruptcy would allow you the opportunity to buy you time to avoid ending up on the streets without the comfort of a home.

Do not live in delusion though, declaring bankruptcy would only help temporarily, you would still eventually lose your home, nevertheless it is a chance to start off on a new financial platform from scratch, debt-free! A lot of people would opt for this when their financial situation becomes precariously dangerous and unmanageable, and this may just help you stop any fore closure issues that you may be facing over your home.

How To File For Chapter 7 Bankruptcy

Opting to file for Chapter 7 Bankruptcy would give you crucial time to weight up your options and decide well about how you are going to go about managing your finances once your debts are cleared. By filing for it, you do not have to pay your mortgage payments anymore, while you still have some time available to stay in your current home and work out your finances to start a new life.

Is Chapter 7 Bankruptcy a Good Choice to Stop Foreclosure?

It would also help avoid the situation of the creditor or mortgage lender coming after you even after the auction of your home is complete or foreclosure is done. Chances of this happening might be low, nevertheless it is best that you eliminate the chances completely to safeguard yourself. If you do not accomplish this, you might even be sued by the creditors for not fully servicing your mortgage loan. In other words, filing for Chapter 7 Bankruptcy would give you the freedom of starting off on a new note without having to worry about old debts that you have incurred in the past.

For the question of how to stop foreclosure, filing for Chapter 7 Bankruptcy is definitely an option. Nevertheless, remember that you are going to start from scratch once again, and with no assets under your name, obtaining future loans for purchases such as homes, cars or even personal loans would be a lot harder in the future once you declare bankrupt. Even credit card applications may be more difficult to process and approve. Thus ensure that you have exercised all other options available to service your mortgage payments and avoid foreclosure before you opt to file for Chapter 7 Bankruptcy.

Is Chapter 7 Bankruptcy a Good Choice to Stop Foreclosure?

Hiring A Bankruptcy Attorney To File Under Illinois Bankruptcy Laws

Hiring A Bankruptcy Attorney To File Under Illinois Bankruptcy Laws

Filing liquidation under the Illinois bankruptcy laws is not an easy thing to do in a sense that you need to be aware of the complicated set of specific laws related to impoverishment that is applicable only in the state. This is because of the complications involved in the various bankruptcy laws in Illinois that we always suggest debtors to hire a highly qualified and experienced attorney to handle your liquidation case. When it comes to filing bankruptcy under the state laws, there are several things that you need to take into your careful consideration.

License Of The Bankruptcy Attorney

How To File For Chapter 7 Bankruptcy

The first thing that you have to make sure is that the attorney has a valid license to handle impoverishment cases in the state. Some people have the misconception that all the bankruptcy lawyers are authorized to handle cases in all the states, which is not true. The attorney gets the license to handle such cases in a specific state only. In some places, where the boundaries of the states meet, the attorney may get the license to handle liquidation cases in more than one state. So, it is prudent to check all these things before hiring the attorney.

Hiring A Bankruptcy Attorney To File Under Illinois Bankruptcy Laws

Attorney Fee

The bankruptcy attorney will charge you a fee, which is usually a substantial amount. Therefore, while choosing the right attorney to file insolvency on your behalf under the state laws, the first of the few things that you must ask the attorney is the amount they will charge. You must try to get into the details because sometimes, there are hidden charges that you come to know only when it is too late.

Interview The Attorney

You are planning to hire a liquidation attorney because you want someone that could defend your claim successfully in the courts. Therefore, do not hesitate in asking questions. It is important to ensure that the attorney you have chosen is the best one for your case. The attorney must be able to make things easier for you, keeping in mind that the Illinois bankruptcy laws are complicated ones and it is not possible for a common person to be aware of everything. The attorneys are the specialized persons and they know how to use the various clauses of the bankruptcy code in favor of the debtor. If you are filing bankruptcy under state liquidation laws, you will require filing out a number of free forms. You have to be very careful while filing out these forms because if the court finds some manipulation with the facts, you may end up paying out some penalties. Your attorney must help you in filing out these forms.

Hiring A Bankruptcy Attorney To File Under Illinois Bankruptcy Laws

Are You Eligible For Georgia Chapter 13 Bankruptcy?

Are You Eligible For Georgia Chapter 13 Bankruptcy?

Filing Chapter 13 bankruptcy in Georgia has many clear advantages, even over Chapter 7. It used to be the latter was prominent, but with changing economies and foreclosures common, it's now different.

Filing for bankruptcy is about filing for help. But what are the eligibility levels for filing Chapter 7 and Chapter 13? This guide highlights mainly Georgia, but most of the tips can be used for other states too.

How To File For Chapter 7 Bankruptcy

Chapter 7 Eligibility
You can file under this if you are below the following stats. If you live in another state, simply find out your median income, often starting around ,000-,000 annually, and you can see if you're eligible.

Are You Eligible For Georgia Chapter 13 Bankruptcy?

1 Georgia Resident: Yearly Income ,691
2 Georgia Residents: Yearly Income ,258
3 Georgia Residents: Annual Income ,104
4 Georgia Residents: Annual income ,502

Can You File Chapter 7?
If you're over these rates, under the bankruptcy laws changed in 2005, you have to file under Chapter 13. This isn't all bad.

Advantages of Chapter 13
For Georgia residents who are over the limits mentioned in the above stats, this form of personal bankruptcy is still an option. The national limits for this are 0,475 in unsecured debts and ,081,400 in secured debts. You must be below these, as most are, in order to file.

Because just about everyone can file under these laws, you might wonder what's the point. Common reasons for filing Chapter 13 include: falling behind on mortgage payments, credit card debt rising, medical bills, or unemployment. In most cases, it's good to have some form of income. Under this form of bankruptcy, you have to pay back debts. In Georgia, unemployment and foreclosures are problems. If you face these, you might file.

The advantage, however, is time. In the debt repayment plan, you get 3-5 years to pay back creditors. This is a long time to catch up on mortgages and other bills. You must be able to pay these or risk losing assets.

Foreclosure
Foreclosure is perhaps the biggest benefit of filing. Why? Chapter 7 will not save your home, but Chapter 13 can. Foreclosures are a problem in Georgia, but less so than most other states. Unemployment however is very high.

By filing, you still have to keep up with payments, but you are given the opportunity to instead of a trustee taking your home and liquidating it to pay back debts. If you live in Georgia and are out of work, it might be best to try and file Chapter 7. If you have an income, Chapter 13 can help.

Chapter 13 Help
If you're considering filing for Chapter 13 and are unsure if you're eligible, if you can afford it, what courts to file at, how much the fees are, and many other questions, an experienced Georgia bankruptcy attorney can help. You want one who specializes in bankruptcy cases, and in the same district as you so they're familiar with the local courts. There are several courts in Georgia handling bankruptcy cases.

Are You Eligible For Georgia Chapter 13 Bankruptcy?

Chapter 13 Bankruptcy: Who Should File?

Chapter 13 Bankruptcy: Who Should File?

Recently I attended a luncheon to discuss issues affecting Iowa consumers filing for bankruptcy. Judge Lee M. Jackwig and Judge Anita Shodeen from the Iowa Bankruptcy Court for the Southern District of Iowa attended the luncheon as did bankruptcy trustees and local bankruptcy lawyers. Judge Shodeen asked me to speak on the state of Chapter 13 bankruptcy filing in Iowa.

For those of you who do not know the difference between a chapter 7 bankruptcy filing and a chapter 13 bankruptcy filing, here is my rule of thumb: If a debtor has the ability to pay back all or some of his debts, he most likely will need to file for protection under Chapter 13 of the bankruptcy code. If the debtor doesn't have the ability to pay his debts he will most likely file bankruptcy under Chapter 7 of the bankruptcy code.

How To File For Chapter 7 Bankruptcy

Judge Shodeen primarily wanted to know if I had seen an increase in individuals filing Chapter 13 and, if so, to what would I attribute the increase. I didn't know that I would be asked to present an opinion at this luncheon, so I hadn't researched the issue or prepared any specific remarks. All I could do was comment on my gut feeling and my personal observations from the day-to-day grind at the office.

Chapter 13 Bankruptcy: Who Should File?

I stated that I felt that I was seeing more people who probably qualified for Chapter 13 bankruptcy than I had in the past. Jim Snyder, Assistant United States Trustee, spoke up and agreed, citing the fact that across the country Chapter 13 filings were up 35% from this time last year.

Many members of the luncheon felt that it was most likely due to people wanting to use Chapter 13 to save their home. My observation was that the increase was due primarily to the fact that the people who are coming into my office who qualify for Chapter 13 are higher income earners and just can't manage their debt load any longer.

We continued the discussion and by the end of the luncheon a consensus emerged that we are seeing more people who have been struggling to pay their debts now being overwhelmed by the credit card industry's high interest rates.

These individuals did everything they were supposed to do but the credit card industry simply priced them out of the game. We agreed that many people who are in this position are pleased with what a Chapter 13 bankruptcy can offer and are happy to get some relief.

When considering whether to file for a Chapter 13 bankruptcy, you should consult with an attorney. When looking for an attorney to help with a Chapter 13 you should consider the attorney's experience. Chapter 13 cases require a significant amount of finesse that comes with experience.

A Chapter 13 can help a debtor in many ways. Likewise, there are ways that a Chapter 13 can be a miserable experience. If you're considering bankruptcy, you should contact a bankruptcy attorney immediately to discuss which option is best for your circumstances.

Chapter 13 Bankruptcy: Who Should File?

Chapter 13 Bankruptcy - Steps For Declaring And Filing For Bankruptcy

Chapter 13 Bankruptcy - Steps For Declaring And Filing For Bankruptcy

There are mainly two insolvency chapters, chapter 7 and chapter 13 bankruptcies. Through chapter 13 bankruptcy laws, you will get 3-5 years' time period for repaying the amount of money you owe to the creditors.

If you have a steady monthly income, but have huge liabilities to pay, you can opt for chapter 13 bankruptcy. To file bankruptcy through the new law, you must file a legal petition at the court and then you will be allowed to make full or partial payment against your financial liabilities. In fact, this has been beneficial because you will get 3 to 5 years for repaying back the loan amount. By choosing chapter 13 bankruptcies, your assets will not be affected or liquefied. In the past, this was not possible as people had to mortgage their assets and if the payment is not paid, the assets were taken over by the creditors.

How To File For Chapter 7 Bankruptcy

Let us have a look at the procedures to file chapter 13 bankruptcy.

Chapter 13 Bankruptcy - Steps For Declaring And Filing For Bankruptcy

First of all, you have to find a capable bankruptcy lawyer and consult the matter with him. When you give details about your income and financial liabilities, the lawyer or the financial expert will help you choose an appropriate solution. You can ask the financial expert or the lawyer to know whether filing bankruptcy will be beneficial for you or not. However, in the modern time, bankruptcy should be considered as the last option.

Before you choose any chapter of bankruptcy, you must understand them properly. The consequences of bankruptcy can be more overwhelming than getting a solution. Therefore, you must determine whether chapter 13 will be beneficial for you or not. Chapter 13 bankruptcy laws help the defaulters to repay the amount in full or partial to the creditors, over a period of time.

If you are ready to file bankruptcy, then filing a petition at the court is a must. While filling insolvency, you must give details about your assets, liabilities, income and expenditure. Giving these details along with information about your unexpired leases and financial contracts will help you prepare a strong document or petition. It is always better to seek help from your bankruptcy lawyer or a top financial expert.

It is a must for every defaulter to pay the court fees and lawyer fee. Filing petition is a strong point for the defaulter because after it is filed, the creditors cannot continue to sue you or make any collection calls.

Chapter 13 Bankruptcy - Steps For Declaring And Filing For Bankruptcy

Car Loan After Bankruptcy - How to Get a Car Loan and Rebuild Your Credit After Chapter 7 Bankruptcy

Car Loan After Bankruptcy - How to Get a Car Loan and Rebuild Your Credit After Chapter 7 Bankruptcy

You just completed filing for your bankruptcy; it's been discharged and now you have a problem. Your car just died and you are in need of a car loan after bankruptcy. This can seem challenging especially after all the stress and confusion of filing for chapter 7. You may be afraid to go to a car dealership because you're afraid of being denied and laughed off the car lot. Luckily, I have good news for you folks.

Obtaining auto financing for a car loan after bankruptcy is a lot easier now that your bankruptcy has been discharged. Many individuals use automobile loans to begin rebuilding their credit and you can too. By searching for an auto loan online you can receive multiple offers from multiple lenders all within 60 seconds or less.

How To File For Chapter 7 Bankruptcy

If you have had any bankruptcy that has been discharged within one year, most lenders and car dealerships are not going to be welcoming you with open arms. They know your bankruptcy will remain on your credit history for 7 years; so chances are the dealers financing company will not want to deal with you. The good news is, there are many lenders willing to overlook this problem and give you a chance to start over again. If you can afford to make consistent monthly payments it is possible to be approved for a car loan after bankruptcy. Quite a few individuals are rebuilding their credit the smart way. Having proved themselves by keeping their car loan payments up to date has improved their credit history significantly.

Car Loan After Bankruptcy - How to Get a Car Loan and Rebuild Your Credit After Chapter 7 Bankruptcy

There are legitimate lenders on the Internet that will offer you a number of auto loans to compare once your bankruptcy has been discharged or dismissed. Don't expect to pay a 3% interest rate, but you will find multiple offers with various rates that you'll be able to compare and you will have options to choose that will fit your individual budget. From the comfort of your own home, you can find the best car loan after bankruptcy and begin to rebuild your financial history. Reasonable financing with reasonable terms is only a mouse click away.

Keep in mind the fear of walking into a dealership and getting denied is a thing of the past. Walking into the dealer with a pre-approved auto loan in your pocket will make you a VIP customer in their eyes. The lenders are aware that many folks use this method to rebuild their credit and the dealerships are more than willing to be a part of your financial rebuilding plan. Just make your choice and drive away with your new car or truck. Your new ride can be parked in your driveway by the end of the day.

Car Loan After Bankruptcy - How to Get a Car Loan and Rebuild Your Credit After Chapter 7 Bankruptcy