Bankruptcy alternatives

Are there alternatives to bankruptcy?

The simple answer is, yes. There are alternatives to bankruptcy that should be well understood before anyone makes a decision to go bankrupt. A sense of responsibility about debt is a good thing and knowing what went wrong in the first place will help lead the way out. Most people would rather pay off their debts but some situations simply can not be avoided.

One way to deal with a debt situation is to do nothing. If there are no assets to garnish or win in a court case, no one will want to spend money trying to squeeze blood out of a turnip. They will simply write off the debt and forget about it.

A second way to deal with bankruptcy is to cut back on spending and pay off the debts slowly. Any creditor will usually want to work with someone to pay off a debt. They know that bankruptcy is an option in which they are not likely to see any money. Getting a part of the money or all of it over a longer period of time is better than none at all.

Thirdly, a business can ask their creditors to restructure a loan so that the debtor can take a breather and pay what they can afford given their current cash flow. This is often allowed in hopes of better business in the future. Should I hire a debt settlement lawyer?

Fourthly, debts can be consolidated into one loan with a monthly payment that is affordable. Various bills can pile up and cause a serious drain on monthly cash flow. When these are put into one loan, the monthly cash flow can improve dramatically.

Life is real. Sometimes there are tough decisions to make. When the rubber meets the road, consider the options and make a stand.

1. Should I file bankruptcy now or wait?
2. Can I file bankruptcy on my own online?

Filing for bankruptcy online

Can you file bankruptcy online

Filing for bankruptcy is a difficult decision to make and the bankruptcy process can be quite stressful. To help take some of this stress away there are free-bankruptcy sites that can help you determine what type of bankruptcy you qualify for. While most people qualify for Chapters 7 and 13 bankruptcy, it is important to file for the correct bankruptcy.

There are also other online conveniences when it comes to filing your bankruptcy online, such as software that can help you fill out the forms and the ability to file the bankruptcy paperwork online through PACER. However, it is important to show up in court to represent your case during the mandatory 341-creditors meeting. You will have to be present for this, regardless of how you filed your bankruptcy. This will be the time that you can meet with the judge to state your case.

If you choose to file your bankruptcy online you can download the forms from court’s website. It is important to fill these forms out completely and save a copy for yourself. When the forms have been completed you can register with PACER, Public Access to Court Electronic Records, to file your bankruptcy. There is a fee to registering for PACER.
When filing for bankruptcy it is important to follow these steps:

  1. Make a list of all the creditor you owe money to.
  2. Find out what type of bankruptcy you qualify for, this can be done online.
  3. Download the bankruptcy forms.
  4. Keep a copy of the forms after they have been filled out.
  5. Register for PACER to file your bankruptcy papers online.
  6. File your bankruptcy papers online
  7. Show up for the 341-creditors meeting.

It is advised to hire an attorney to help you through this process. You can contact the local bar association to help you find a pro bono lawyer to help you file this claim if you cannot afford an attorney.

Once you have filed for bankruptcy it is advised not to use your credit cards, because this will work against you during the final court hearing for this case.

1. “Can you declare bankruptcy on student loans
2. “Pre bankruptcy credit counseling
3. “About chapter 7 bankruptcy exemptions
4. “Home loans after bankruptcy discharge

Home loans after bankruptcy discharge

Can i qualify for a mortgage after bankruptcy

Although bankruptcy eliminates some or all of your personal debt, it causes severe damage to your credit score. Many people who file bankruptcy have trouble qualifying for a regular credit card, so what chance do they have of obtaining a mortgage. Luckily this damage to your credit is only temporary and in as little as 2 years after your bankruptcy is discharged, you can qualify for a mortgage.

How to qualify for an FHA loan after bankruptcy

If you’re wondering where to get home loans after bankruptcy? Don’t look any further than the FHA. The FHA loan is a federal assistance loan program insured by the Federal Housing Administration. It’s purpose is to insure loans so lenders can offer better terms and many times accept borrowers who may not have qualified by traditional means.

In order to obtain an FHA loan after bankruptcy you need to reestablish your credit and prove you can manage your financial affairs. Re-establishing credit can be as simple as opening a new credit card account after the bankruptcy is discharged and maintaining that card responsibly.

The FHA will also consider people who decide to refrain from using credit after their bankruptcy. If you decide not to incur new credit, the FHA will use non-traditional credit such as rental and other credit as a means to prove financial responsibility.They’re looking for a history of on-time payments.

If you have a stable job, the financial means to pay the mortgage and you’ve re-established credit, and you filed for a Chapter 7 bankruptcy this is all that is required to qualify for an FHA loan. If you filed Chapter 13 you need to have made your last 12 payments on time and have written permission from the court to enter into a mortgage.

Applying for an FHA loan after bankruptcy is as simple as going to your local lender. You’ll still need to complete a traditional loan application. You need proof of your income, assets and credit worthiness. You may also need to have an explanation of the bankruptcy, and why the events that led up to it are not likely to recur.

Now that you know where to get home loans after bankruptcy, you can see that homeownership is possible. Bankruptcy has helped many people get back on their feet and re-establish their credit, and with the help of FHA loans, they also have the ability to buy a house.

1. Can you file bankruptcy on federal student loans?

Can you declare bankruptcy on student loans

Can you declare bankruptcy on student loans? For the most part the answer to this question is no. As of 1998, student loans can not longer be discharged through bankruptcy. Most laws are written with an exception to the rules in mind and thus, there is a small loophole that can be of assistance in very rare cases.

Part of the balance of student loans can be discharged through bankruptcy if the borrower can prove that repayment of the loans will cause an undue hardship on the borrower. The key here is found in the phrase “provide a minimum standard of living.” This means that if for some reason or reasons the borrower can not provide a minimum standard of living for the borrower and his/her dependents then the student loans may be forgiven through bankruptcy. Because the definition of “minimum standard of living” is a term that is constantly redefined by various government agencies, it becomes important to consult with a legal professional to see if a borrower may meet the criteria needed to use this loophole.

Can student loans be included in chapter 13 bankruptcy

If the borrower is in default of his/her student loans then some hope can sometimes be found by using Chapter 13 of the bankruptcy code.

  • Chapter 13 can provide a means to clear up defaulted student loans and provide a repayment plan that may ease the struggle to repay loans.
  • In some cases, Chapter 13 may provide a partial discharge of the student loans. Since Chapter 13 is basically the repayment plan of the bankruptcy code of laws, which protects borrowers from debt collection and would stop collection of student loans.
  • Chapter 13 differs from Chapter 7 bankruptcy because Chapter 13 can eliminate some debts that Chapter 7 can not discharge. The benefit of Chapter 13 is that it allows the debtor the time to repay debts that can not be discharged. This gives the debtor the means to recover a more meaning financial life without abandoning the debtor to the constant struggle of regaining financial freedom.

Legal representatives can be of further assistance in determining the qualifying factors for financial hardship.

1. “Student loan consolidation
2. “Debt negotiation tips

Student loan consolidation

Finding help with your student loan

If you are a college student and you find your debt mounding, there are a number of ways to find help. It is possible to find relief through medical school loan consolidation, finding additional aid, or even begging the credit companies to reduce your monthly payment. Since this nation understands that education is vital, both law and creditors are fairly lenient about how you are made to repay debt. Make no mistake, you are still bound to repay it, and only bankruptcy or permanent injury can free you from your obligation.

Make no mistake: loan consolidation is big business. There generally is no penalty for repaying a student loan early, as there often is with other long-term, fixed-rate loans. If you have many loans, or if a parent has several children going to college and wishes to arrange their various loans into a single payment, then consolidation is also possible. Having only one payment is simpler than having many, as even a single student can arrange for quite a few within a few years. Federal and private services, such as, are eager to provide this service. Through such services, it is possible to arrange repayment lengths of up to 30 years. It is also possible to sometimes find a better interest rate.

There are other options. Having a job while in school can ease your financial burden considerably, and there are many sources of financial aid. Some institutions help you repay your loan as part of your incentive, and it is also possible to find more grants even while in school. It may pay to go to a cheaper school for certain credits. It all else fails, it is possible to beg the credit company to lower your payment. Interest will still accrue, and you must still repay the total amount, but it is possible to only pay interest until you find a happier position in the workforce.

1. “Debt negotiation
2. “Pre bankruptcy credit counseling

Debt negotiation

Debt negotiation companies

In this economy many people are finding it difficult to make payments on their debt, which has increased the use of the services of debt negotiation companies & debt negotiation attorneys. They can help someone pay off their debts for less than what is owed. They do the negotiating with the lender for a fee paid by the consumer. While there are scams, there are many reputable debt negotiation companies. Once you think that debt negotiation is your best course of action you can begin your search in the phone book or online for reputable companies that specialize in debt negotiation. When researching possible companies to use, you should check with the BBB to see how the company rates and if there have been any complaints.

Using the services of a reputable company, such as debt negotiation associates or an individual debt negotiation attorney will enable you to get the best possible debt reduction deal. Since they deal with companies on a regular basis they are familiar with their process and policies on debt negotiation. Using the knowledgeable services of a company specializing in negotiation will not only save you money but a lot of time. Additionally, they can help insure that your settlement agreement is legally binding. It is important to investigate the terms and conditions prior to signing up with anyone, as there is a wide range of prices and service levels.

  • The Federal Trade Commission now requires that nonprofit debt relief companies must not collect a fee until they actually have been successful at negotiating with creditors.
  • To be compliant the company must also give a written agreement or plan that both the creditor and consumer agree to.
  • They are not allowed to misrepresent their abilities, must clearly state what the cost of the service is, and how long the process should take.
  • Understand that individual results of debt negotiation will vary even within the same company.

It is important to understand that not all debt can be eliminated or negotiated. Secured debt like a home mortgage or car cannot be negotiated. However, unsecured debt that can include things like credit cards and personal loans can be successfully negotiated for a fraction of what is owed. You will typically have two options to consider, either a lump sum payment or a reduced rate payment over time. A lump sum payment will clear up your account faster than payments over time.

1. “2nd mortgage debt consolidation
2. “Refinancing with poor credit score

2nd mortgage debt consolidation

Second mortgages and bankruptcy options

Filing for Chapter 7 bankruptcy means that you will be able, or will be forced, to surrender some of your possessions in lieu of paying off the loans. One of the questions that comes up often is how a 2nd mortgage bankruptcy works during Chapter 7 proceedings.

Will Chapter 7 wipe out my 2nd mortgage loan?

This question is one that people have frequently over the course of bankruptcy proceedings, and the short answer is that no, it will not. A second mortgage, also called a home equity loan, is a lien against your house. That means that your home is securing this loan, and if you plan to keep your home, then you cannot have the second mortgage loan discharged.

The exception is that if you are surrendering your home, then you may be able to get rid of your second mortgage. That’s because the property used to guarantee the loan is no longer yours. The complication here is that your home already has a loan against it. Your primary mortgage is simply a loan against your home, and that loan has “first right” over 2nd mortgages in bankruptcy proceedings. That means financial institution holding our primary mortgage will sell your house, and the proceeds go toward that loan.

The second mortgage can be paid only if the house fetches more than you owe on the primary mortgage, which is rare for a house surrendered in bankruptcy. In a Chapter 7 bankruptcy, that means you may have to roll the second mortgage into your reorganized debt repayment, depending on your income and other debts.

In some cases, you will be able to find a company to do refinance 2nd mortgage loans. In this case, you may be able to get your interest rate lowered or your term stretched to help you make the payments. Once a bankruptcy is complete, however, most people need to wait at least six months before they are able to get a refinancing loan completed.

The best way to find out how to handle a second mortgage during bankruptcy is to seek out someone who is adept at handling these proceedings and can advise you on your debt consolidation options. There may be choices other than continuing to pay at the current rate or losing your home, and someone with a specialization in debt consolidation plans can help you wade through the choices to determine what’s best for you.

Refinancing with poor credit score

Can you refinance mortgage with bad credit

You can do it, even with poor credit! A question many of us would like to answer (even if we are embarrassed to admit it), how do you achieve refinancing with poor credit? One fast answer is that refinancing can be a powerful tool in some situations that might actually improve your credit rating. One example is consolidating credit card debt. Credit cards are designed for obtaining cash quickly, with the expectation the money will be repaid within a few months. Cards are a source of easy credit; you can use them whenever you want, or never use them and still carry them in your wallet.

In exchange for this convenience and the risk credit card companies face, borrowers are penalized with a high annual percentage rate, often in the range of 20 to 30 percent. If financial pressure forces you to repay these over a prolonged amount of time, you may find yourself wasting money, a stack bigger than what you borrowed. An obvious solution, then, is to borrow money from a more amiable source, such as a bank, and pay off your cards with it. Banks and other long-term lenders offer much lower rates than credit card companies, and so payments can be smaller and less painful.

If your credit card debt is small (less than ten thousand), it is not too difficult to obtain a short-term loan. If you must tackle larger problems, making a financial arrangement means learning to do tricks. Larger loans often require good credit, or some form of collateral. This typically means obtaining a second mortgage on a home, if you own one. If you have other assets, such as land, you may wish to simply sell the land, especially if it is not particularly productive.

Obtaining a long-term loan is frequently better than continuing with the credit card companies month after month, but such loans are peppered with their own risks. If you have bad credit, you can probably expect a higher interest rate, even with collateral. Contracts too often have penalty clauses, lightly termed “provisions,” which means you have to pay a fee if you repay the loan early. There also may be transaction and closing costs involved. As with any financial decision, it is important to shop around and understand all the fees and terms of the contract. The borrower should also beware, some of the services that specialize in refinancing to escape debt might actually be a front for loans that cost you more money.

If the sum is large enough, you may wish to contact an accountant or even an attorney to help you negotiate a lower interest rate. They are often the most reliable source of help, and their professional advice is worth the fee.

1. Using credit card while traveling
2. Increase credit score in 24 hours

Using credit card while traveling

How to protect yourself using credit cards while traveling abroad

There are some tips out there to keep in mind when traveling with a credit card. This is because you want to keep yourself safe, but ensure that you have something in case of emergencies. You want to keep these tips in mind, and some of them provide you with credit card resources for the future when traveling anywhere else. Traveling is a fun thing to do, and you can be covered without having to worry about where your credit card is, or using it the whole time you’re on your vacation when you follow these simples steps to have better credit card management.

1. Only bring one credit card with you on your trip. This eliminates the confusion of using more than one. It also helps so you do not charge a lot of money to both cards, and have a lot to pay back when you return from your trip. It is also easier to deal with one card being stolen, rather than all of your cards in case something was to happen.

2. Record the numbers to the card and the bank their through just in case you need them for something. This provides you with an easy way to get a hold of them if the card was stolen, lost, or misplaced. You also might want their number in case you have to verify that you used the card for a purchase. The numbers should be on a piece of paper stored in a safe place.

3. Notify the credit card company that you’re going to be traveling with the credit cards. They will be alerted to know you have your cards on you, and where you will be charging money to them. This will stop them from banning your credit card because they think they have gotten stolen.

4. Make photocopies of the cards, tickets, and photo IDs that you have, and store them in a safe place. This will ensure that you still have the information of all the cards, tickets, and IDs if something was to happen to the originals. This is something that a lot of people do not think to do, but having a copy makes all the difference when you do not have the originals. These copies should not be stored with the originals however. This is because if you lose the originals, the copies will be with them.

1. Identity theft red flags
2. My identity was stolen what do I do

2nd mortgage commercial property

The ins and outs of secondary mortgage

second mortgages commercial property. It is possible you are a maverick entrepreneur, or perhaps just an ordinary person with some property you are willing to risk for a loan. Either way, there is the option of finding a secondary mortgage on commercial property. Whenever you buy a major property, such as a home or a piece of land for agriculture, the loan obtained to purchase the property is secured by the property itself. That means if the loan cannot be paid, then the creditor may collect the purchased item. Since homes and land do not loose value, loans given for such things tend to be very secure. For the buyer, this means it is easier to obtain loans for such things. Such loans with collateral are called mortgages.

A secondary mortgage is a loan secured by a property that is already owned by the borrower. Such mortgages are much riskier for lenders than first mortgages because by law the first mortgage gets paid first in a foreclosure. For this reason, second mortgages often have higher interest rates than primary ones, although the interest is typically less than an unsecured loan.

For those of you inexperienced in legal jargon, a foreclosure is when a creditor decides they are sick and tired of not getting their money, and decide to recoup their loan by taking the property through the court. This means a legal battle, which can be expensive for both parties. Again, if the borrower owes a lot of money to a primary lender, then the primary lender collects first, leaving little or no money for the secondary lender. The secondary lender, rather than pouting, may try to go after other assets you may have. This is the most important thing to thing about, for both the borrower and lender.

Creditors, for this reason, may turn down a secondary mortgage. The first thing they look for is equity, meaning how much you have paid on the first loan. If you already own the property, all paid for, then the lender is as happy as can be. She may, however, look at how much other debt you have. If you have much more debt than you make in a year, then you are a risky investment. A high credit score and a stable source of income also play a role in the final decision.

What happens if you cannot pay the dough? Your remaining assets are liquidated by the judge when the creditors (in the plural) take you to court, and secured lenders get first dibs on your stuff. Your home goes, your car goes, bank account empty, stock sold, etc. You must file bankruptcy, not everyone gets their money, and your credit rating falls and burns like a poorly maintained passenger jet. Just remember before you gamble with other people’s money.

Important tips for 2nd mortgage loans