The Finance Factor

When filing for bankruptcy there are some things you need to avoid doing. You can make your situation worse by doing certain things and that’s the last thing you want to do when your in this situation.

Borrowing From Relatives – I cannot stress this enough. Don’t do it! It may be very tempting but you will regret it in the long run. What got you into trouble in the first place? Borrowing! You can’t borrow your way out of debt so borrowing from a family member is basically just like borrowing from a creditor. Now if you are fortunate enough to have a family member that has more money than they know what to do with, you may be able to make an exception to this rule. Home Continue reading ‘3 Common Bankruptcy Mistakes That Everybody Needs to Avoid!’ »

When people with debt trouble turn to the bankruptcy options — either Chapter 7 bankruptcy or Chapter 13 bankruptcy — they are often intimidated by the prospect of having to be subjected to a bankruptcy means test.

Ensure Eligibility

In reality, it seems the Chapter 7 means test is meant to ensure people with debt trouble do not file for the wrong type of bankruptcy protection. For many, being able to retain control and ownership of valuable and necessary assets, such as a home or vehicle, is vitally important. The Chapter 7 means test, therefore, aims to promote Chapter 13 bankruptcy as an alternative to a liquidation under bankruptcy. Continue reading ‘The Chapter 7 Means Test – Nothing to Fear’ »

It seems with this financial crisis everyone is getting a bailout. The banks, wall street, car manufactures, even the postal service needs help, how about the average guy? Explore why bankruptcy is one form of a bailout for the average person.

Why Bankruptcy?

The bottom line in today’s financial system for a person who is deep in debt without hope is bankruptcy. The number 1 thing that holds people back from dealing with this issue is fear, lack of understanding. It’s true, this is not a pleasant subject to talk about, but faced with legal ramifications due to debt problems it’s an option you must consider. Continue reading ‘Bankruptcy – The Average Person’s Bailout Program’ »

Bankruptcy is the final solution to dealing with your financial issues – it is the measure of last resort and should never be undertaken lightly nor without professional advice and assistance. In a nutshell, bankruptcy is where all your assets are liquidated and sold with the proceeds being distributed to your creditors; after a period of supervision, which is 12 months in the UK, you are now free and clear to restart your life without the burden of your debts.

The devil is in the detail – “all of your assets are liquidated and sold”, and this includes your home, your business if you are self-employed, your vehicles and your investments as well as any savings if you have them.

The most common factor is of course, losing your home and having to move your family to usually, rented accommodation.

You can be made bankrupt in two different ways – voluntary bankruptcy is where you file your own petition with the court to have you declared bankrupt and involuntary bankruptcy, which is where a creditor who you owe more than £750 files to have you declared bankrupt. Continue reading ‘Guide to Bankruptcy’ »

For many people, it’s no big secret that declaring personal bankruptcy is not necessarily good news, that it definitely is not easy and that it comes with consequences. So as well as considering whether you have alternatives to declaring bankruptcy before you decide to do so, you also need to familiarize yourself with the potential harmful consequences and make sure you know how you will deal with them.

First of all, your financial reputation will be tarnished. Your credit record will carry information ascertaining to your declaring bankruptcy for around ten years. This is going to make it very, very difficult to obtain any kind of finance and in situations you find you are able to get credit, you will find yourself on the receiving end of very high interest rates. You can rebuild good credit, however.

You may also find that your family members and close friends have little sympathy. Many people, particularly those of an older generation, a generation before hire purchase and when everyone only bought what they had the cash for, struggle to understand credit, excessive finance and thus bankruptcy. You may also feel embarrassed about declaring personal bankruptcy and feel that relationships are strained with those who feel let down by this. Continue reading ‘Declaring Personal Bankruptcy – Consequences That You Need to Know Before Making a Decision’ »

One of the popular choices for those who need it is nothing other than the simple and basic FHA mortgage program. Way back in the 1930’s, the FHA was already the best option for low income families as well as those who were borrowing money for the very first time. But as the years passed, a lot of additions and expansions to the FHA program envelopes almost all types of people who need to borrow money.

Right now, there are roughly 30 million clients. This is undeniable proof that applying for their loan programs is really beneficial. So what are the advantages of applying for this federal program?

- This type of loan will give you leeway to purchase a house with a miniscule down payment. Future homeowners will only need to shell out a down payment worth 3% of their entire home purchase value. There are also some instances when the down payment can be given in gift form. One must be aware though that aside from the down payment amounts there are usually other fees to take care of such as insurance and processing. Continue reading ‘Good Reasons to Choose the FHA Mortgage Program’ »

When you are bankrupt, you have no easy way of securing a home equity loan. Your bad monetary situation and the black mark you got from the recent bankruptcy compel lenders to treat you as a less likely candidate for a loan. Even within this backdrop, if you follow the right advice and build your credit worth, lenders should not neglect your application for a bankruptcy home equity loan or a bankruptcy home loan.

The main aspect you have to work on after bankruptcy is finding ways to regain your credit worth to an acceptable level. This is vital as banks and lenders check your credit with credit bureaus before lending a bankruptcy equity home loan. If you maintain a healthy bank account and a credit card without misconducts and delays, you will reach the position you were at earlier on after about two years. Continue reading ‘The Good, the Bad, and the Ugly of a Bankruptcy Home Loan’ »

There is no question of a having bad financial reputation when you’re involved with a bankruptcy discharge. But it has a serious negative effect, especially when you need a loan, as usually the lenders overlook you because of your monetary condemnations. Generally it takes about two years from the date of bankruptcy to be approved you for a loan. Nevertheless, you can have a bankruptcy home loan before too long if you know the right technique and make necessary amendments with the money gained to obtain the credit ratings that you need for your future ventures.

If you are still working in the same company when the bankruptcy occurred after a year from the date, you are qualified to apply for a bankruptcy home loan and your chances for the approval of the application are also good. The loan you obtain by securing your house can give you enough credit. But you have to be extremely cautious in your steps to repay the loan as it may jeopardize your position further, jeopardizing even your house. Continue reading ‘Applying For a Bankruptcy Home Loan’ »

Your children rely on regular child support payments for all kinds of necessities: food, clothing, shelter, medical attention. It’s every parent’s responsibility to care for his or her child, and child support payments are a way of enforcing a non-custodial parent’s debt to his or her children. So what happens when the person supposed to make the payments files for bankruptcy? Will it put your children’s welfare into jeopardy? Can your children afford bankruptcy?

Fortunately, even during bankruptcy proceedings, a parent is still required to make his or her court-ordered child support payments. The welfare and care of the children is considered a top priority under American law, and these obligations take precedence over the relief afforded by filing for bankruptcy. The recent Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) helps clarify the rules surrounding such payments, and re-emphasizes the importance of providing for and caring for one’s children. Continue reading ‘How Bankruptcy Affects Child Support Payments’ »

Filing for bankruptcy ruins your credit for 10 years.

Not True. As with any other credit information, the fact of the bankruptcy can stay on your credit report for 7 to 10 years. (Remember, if you are considering bankruptcy it is highly likely that your credit rating has already been damaged, especially for the purpose of obtaining a home loan.) You can start rebuilding your credit, however, even before your bankruptcy is completed. Continuing to make your house or car payment on time can help you reestablish a good credit rating, as can making timely payments on a Chapter 13 plan or on any new loans.

Everyone will know you filed for bankruptcy.

Not True. The fact of your bankruptcy is a public record but unless you are a prominent official or high profile person, people aren’t going to go looking.

After the recent changes to the bankruptcy law, filing bankruptcy doesn’t help much.

Not True. The 2005 changes mean that a few people may no longer be able to file a Chapter 7 case, but most people are still able to get the same relief now as before the law changed. If a Chapter 7 is not available to you because of the 2005 changes, Chapter 13 may still offer you significant relief.

You are a bad person for filing bankruptcy.

Not True. Bankruptcy is a solution to help good people go through a tough financial time. It provides people with the fresh start that they deserve. Congress passed the bankruptcy laws because Congress recognized that we needed a safety net in our economic system for individuals, who have little control over large shifts in our economy or over unexpected personal developments such as job losses and medical expenses. The events of late 2008 should be making it clear to all of us that our financial health is not usually a function of whether we are good or bad persons. Continue reading ‘Bankruptcy Myths’ »