Strategic Bankruptcy: A Logical Choice
In the world of filing for bankruptcy, there are many things that you can do or not do in order to make sure that you have the best chance of getting the right amounts of money to get yourself or your company back on track. There are several ways to go about filing for bankruptcy in a good way – in a way that will help you more than it will hurt you.
While bankruptcy fraud is a crime – filing for bankruptcy if you don’t need it or filing in a way that makes you look like you are less off than you are – strategic bankruptcy isn’t so much of a crime as it is simply a way to file for bankruptcy at just the right time and in just the right manner so that your assets end up doing what they are supposed to do – be an asset to you.
Usually, you will find that strategic bankruptcy filing takes place most often within companies. They work together to find out what is the best way to make sure that they cut all of their loses and get out of debt, without losing too much of their own at the same time. Most of the strategic bankruptcy filings are going to take place when a company has been just at the cusp of going into bankruptcy. They might divide up and sell their assets in a way so that these assets are no longer part of the company and not liable when the bankruptcy is filed. Then, they might file for bankruptcy and not have to worry about certain assets that have been taken care of. That way after what is left has been divided up, they still have something to go home to. This is different from bankruptcy fraud because it is all done with the notion that they are going to be filing for bankruptcy, and so there is no secrecy and there are no lies that go along with it.
Strategic bankruptcy takes planning and it takes help to make sure that you are filing at jus the right time. You also have to be sure that you have done enough to ensure that your company is going to survive in the long run, and that by filing just where you do and at what time you do, you are allowing yourself the better chance for success in the long run.
Tuesday, July 14, 2009
How to Prevent Bankruptcy
How to Prevent Bankruptcy
There are many things that you can do in order to prevent yourself from having to file for any type of bankruptcy. It is very important that you figure out if any of these things can be done by you to avoid having to file for bankruptcy, because you are going to find that even if you file for bankruptcy and are able to be absolved of some of your debt, it is going to be disastrous for your credit report for at least 10 years and you are going to have even more trouble getting loans and other types of credit during that time frame.
In order to avoid filing for bankruptcy, you have to be able to stop it from coming a long way off. The most important thing that you can do to save yourself from having to deal with bankruptcy would be to find ways to make sure that you are protecting your credit while you have it. Be careful with credit cards and loans; be sure to not keep any funds out that you should not keep out. Make all of your payments on time, and pay more than the minimum amount due if at all possible. Remember that this is extremely important because it is going to be the only way that you can find yourself able to prevent bankruptcy when it is just beginning.
There are other things that you can do when you sense that you are getting into financial trouble. If you are finding that you are unable to pay certain bills, you should contact each of the places separately and see what can be worked out to make sure that you are going to be making the payments on time. Most credit card companies and other places have payment plans that you can be a part of, so it is a good idea to check these out. Never be afraid to ask what your options are because the creditors are going to want to get their money from you and if you have to file for bankruptcy that often means that they aren’t going to be getting all of the money that they are owed. If they know that you are trying your best to pay whatever you can, you might be able to find a way to get the debt taken care of and to get back on the track to getting everything paid off. This is something that is worth considering so that you are going to be able to pay back things that are owed to you.
There are many things that you can do in order to prevent yourself from having to file for any type of bankruptcy. It is very important that you figure out if any of these things can be done by you to avoid having to file for bankruptcy, because you are going to find that even if you file for bankruptcy and are able to be absolved of some of your debt, it is going to be disastrous for your credit report for at least 10 years and you are going to have even more trouble getting loans and other types of credit during that time frame.
In order to avoid filing for bankruptcy, you have to be able to stop it from coming a long way off. The most important thing that you can do to save yourself from having to deal with bankruptcy would be to find ways to make sure that you are protecting your credit while you have it. Be careful with credit cards and loans; be sure to not keep any funds out that you should not keep out. Make all of your payments on time, and pay more than the minimum amount due if at all possible. Remember that this is extremely important because it is going to be the only way that you can find yourself able to prevent bankruptcy when it is just beginning.
There are other things that you can do when you sense that you are getting into financial trouble. If you are finding that you are unable to pay certain bills, you should contact each of the places separately and see what can be worked out to make sure that you are going to be making the payments on time. Most credit card companies and other places have payment plans that you can be a part of, so it is a good idea to check these out. Never be afraid to ask what your options are because the creditors are going to want to get their money from you and if you have to file for bankruptcy that often means that they aren’t going to be getting all of the money that they are owed. If they know that you are trying your best to pay whatever you can, you might be able to find a way to get the debt taken care of and to get back on the track to getting everything paid off. This is something that is worth considering so that you are going to be able to pay back things that are owed to you.
Getting your finances back on track
Getting your finances back on track
There are many ways that you can get your finances back on track, either to avoid bankruptcy or after you have gone through the bankruptcy process. The first step to making sure that your finances are more manageable is to get organized. Bring all of your statements and bills into one place and find out exactly how much you owe to each place. Then, see how much money you are bringing in that you can afford to put towards what you owe. When you have done this, you are going to see if you can manage to make the minimum payments or not.
If you find that you are still unable to make the minimum payments even after you have organized all of your finances and have a list of what you owe, you might want to consider contacting each individual creditor and asking if there is anything that they can do to lower your payments. If they know that you are looking at bankruptcy, or that you are afraid this is going to happen, they are going to be willing to help you because if you do file for bankruptcy they aren’t going to end up getting all of the money that they hope to get from you. So, talk to each of the creditors. Make sure that they know what your situation is and give them the amount that you are willing to pay per month. More often than not there is something that they can work out for you.
Another thing that you should remember when you are getting your finances back on track is that building up credit is very important. You should be sure that you are finding ways to build your credit. Sometimes this means taking out a small credit card or a small loan and paying it off right away. This is a great way to build your credit little by little. As you build your credit you are going to find that you are able to pay back certain things that are owed and that you are getting more and more credit as you go along. These are all great ways to make sure that your finances are getting back on track, which is going to help you to be more successful when it comes to getting more credit and getting more money. Remember that you need to make sure to make each payment, and to make it on time. This is a great way to get your finances on track and be sure that you are putting your best options on the table.
There are many ways that you can get your finances back on track, either to avoid bankruptcy or after you have gone through the bankruptcy process. The first step to making sure that your finances are more manageable is to get organized. Bring all of your statements and bills into one place and find out exactly how much you owe to each place. Then, see how much money you are bringing in that you can afford to put towards what you owe. When you have done this, you are going to see if you can manage to make the minimum payments or not.
If you find that you are still unable to make the minimum payments even after you have organized all of your finances and have a list of what you owe, you might want to consider contacting each individual creditor and asking if there is anything that they can do to lower your payments. If they know that you are looking at bankruptcy, or that you are afraid this is going to happen, they are going to be willing to help you because if you do file for bankruptcy they aren’t going to end up getting all of the money that they hope to get from you. So, talk to each of the creditors. Make sure that they know what your situation is and give them the amount that you are willing to pay per month. More often than not there is something that they can work out for you.
Another thing that you should remember when you are getting your finances back on track is that building up credit is very important. You should be sure that you are finding ways to build your credit. Sometimes this means taking out a small credit card or a small loan and paying it off right away. This is a great way to build your credit little by little. As you build your credit you are going to find that you are able to pay back certain things that are owed and that you are getting more and more credit as you go along. These are all great ways to make sure that your finances are getting back on track, which is going to help you to be more successful when it comes to getting more credit and getting more money. Remember that you need to make sure to make each payment, and to make it on time. This is a great way to get your finances on track and be sure that you are putting your best options on the table.
Filing Chapter 13
Filing Chapter 13
When it comes to different types of bankruptcy, there are different ways that you can file depending on who you are and where your money is currently tied up. Chapter 13 bankruptcy is a way of filing for individuals who live in the United States. These individuals are going to undergo a reorganization of their finances, which will be supervised, by a bankruptcy court. The chapter 13 bankruptcy is geared towards individuals who are in debt but who are currently earning income. If they are able to fulfill a court approved plan, they are going to be able to be completely rehabilitated from their debts.
If you are badly in debt, you have your choice of filing for either Chapter 7 or Chapter 13 bankruptcy. It is all going to depend on what kind of income you are bringing in. If you are not bringing in enough money, there isn’t going to be any way that you can file for Chapter 13, because Chapter 13 requires that you fulfill certain obligations.
If you have filed for Chapter 13, you are going to have a plan to pay back your creditors over 3 to 5 years. In this period of time, the creditors to whom you owe money cannot attempt to get this money from you except through the bankruptcy court. You will still get to keep your property, and the creditors are going to end up with less money than they are actually owed.
It is sometimes a good thing to file for Chapter 13 instead of Chapter 7. For instance, you are going to be able to stop a bank from foreclosing on your house, and you’ll be able to have a mortgage that has been accelerated actually be reinstated once you have completed the plan. However, the disadvantage is that you are going to have this on your record for at least 10 years. You are also not going to be able to get additional credit while you are trying to pay back your debts.
When you file for Chapter 13, you are going to develop and file a plan with the courts. This is going to tell you that you have to find ways to pay back your debts. These ways include committing every penny of the money you earn towards the debts for at least 3 years, making sure that the creditors are going to get at least as much money as they would if you file for Chapter 7, and provide a meaningful payback to your creditors.
When it comes to different types of bankruptcy, there are different ways that you can file depending on who you are and where your money is currently tied up. Chapter 13 bankruptcy is a way of filing for individuals who live in the United States. These individuals are going to undergo a reorganization of their finances, which will be supervised, by a bankruptcy court. The chapter 13 bankruptcy is geared towards individuals who are in debt but who are currently earning income. If they are able to fulfill a court approved plan, they are going to be able to be completely rehabilitated from their debts.
If you are badly in debt, you have your choice of filing for either Chapter 7 or Chapter 13 bankruptcy. It is all going to depend on what kind of income you are bringing in. If you are not bringing in enough money, there isn’t going to be any way that you can file for Chapter 13, because Chapter 13 requires that you fulfill certain obligations.
If you have filed for Chapter 13, you are going to have a plan to pay back your creditors over 3 to 5 years. In this period of time, the creditors to whom you owe money cannot attempt to get this money from you except through the bankruptcy court. You will still get to keep your property, and the creditors are going to end up with less money than they are actually owed.
It is sometimes a good thing to file for Chapter 13 instead of Chapter 7. For instance, you are going to be able to stop a bank from foreclosing on your house, and you’ll be able to have a mortgage that has been accelerated actually be reinstated once you have completed the plan. However, the disadvantage is that you are going to have this on your record for at least 10 years. You are also not going to be able to get additional credit while you are trying to pay back your debts.
When you file for Chapter 13, you are going to develop and file a plan with the courts. This is going to tell you that you have to find ways to pay back your debts. These ways include committing every penny of the money you earn towards the debts for at least 3 years, making sure that the creditors are going to get at least as much money as they would if you file for Chapter 7, and provide a meaningful payback to your creditors.
Bankruptcy and Exempt Property
Bankruptcy and Exempt Property
When you are dealing with bankruptcy, it can seem like everything is going in a way that is bad for you. Most ways that you will be filing bankruptcy include the fact that whether you have a business or you are an individual, you are going to have to have your property taken away from you so that you can pay back your creditors. It might feel like you are losing everything, because everything is being taken.
However, you should know that there are certain things that are exempt from being taking in order to pay back your creditors. The reason that there is exempt property stems from the actually point behind bankruptcy. Filing for bankruptcy serves two main purposes. It allows the creditors to get the money that they need, and it is also a way for the person who is filing bankruptcy to get on with their lives and to get a fresh start. Because of the fact that bankruptcy is meant to have a fresh start, it means that there is going to be certain exempt property, which are the things that you need to actually have this fresh start.
Because you are supposed to be starting again, there are certain things that will be exempt from bankruptcy. If you own a house, but there is no value in the house for the creditors, it will be exempt property. The same with the car that you need to drive to work so that you can make a fresh start. It will also be exempt, unless there is great value in it for the creditors.
Also, any retirement funds or other funds that you have acquired are not going to be able to be taken by the creditors because they are exempt property. Your household goods are not usually found to have been of any resale value, so these are exempt as well. The bank cannot take your wedding rings, either.
There are several ways to decide what is going to be exempt and what is not. Basically you have to look at the resale value of whatever it is that is in question to see whether or not you think it is going to be able to be resold for a higher value than you owe. If not, then that property will be exempt and you will be able to make a fresh start with it. If you have any questions, talk to a lawyer about what is and what is not exempt property.
When you are dealing with bankruptcy, it can seem like everything is going in a way that is bad for you. Most ways that you will be filing bankruptcy include the fact that whether you have a business or you are an individual, you are going to have to have your property taken away from you so that you can pay back your creditors. It might feel like you are losing everything, because everything is being taken.
However, you should know that there are certain things that are exempt from being taking in order to pay back your creditors. The reason that there is exempt property stems from the actually point behind bankruptcy. Filing for bankruptcy serves two main purposes. It allows the creditors to get the money that they need, and it is also a way for the person who is filing bankruptcy to get on with their lives and to get a fresh start. Because of the fact that bankruptcy is meant to have a fresh start, it means that there is going to be certain exempt property, which are the things that you need to actually have this fresh start.
Because you are supposed to be starting again, there are certain things that will be exempt from bankruptcy. If you own a house, but there is no value in the house for the creditors, it will be exempt property. The same with the car that you need to drive to work so that you can make a fresh start. It will also be exempt, unless there is great value in it for the creditors.
Also, any retirement funds or other funds that you have acquired are not going to be able to be taken by the creditors because they are exempt property. Your household goods are not usually found to have been of any resale value, so these are exempt as well. The bank cannot take your wedding rings, either.
There are several ways to decide what is going to be exempt and what is not. Basically you have to look at the resale value of whatever it is that is in question to see whether or not you think it is going to be able to be resold for a higher value than you owe. If not, then that property will be exempt and you will be able to make a fresh start with it. If you have any questions, talk to a lawyer about what is and what is not exempt property.
Saturday, May 30, 2009
The Chapter 7 Bankruptcy Timeline
The Chapter 7 Bankruptcy Timeline
Bankruptcy is when you legally declare that you can no longer repay your debts. Individuals have the choice of either declaring chapter 7 or chapter 13 bankruptcies, depending on the severities of their debts and the incomes being made. Of most, chapter 7 bankruptcy makes the most sense, although you should consider both carefully and do what is right for your. However, if you do declare chapter 7 bankruptcy, here is how it will play out:
First, your declaration officially begins when you sign the paperwork and file the proper documents with a bankruptcy court. In most states, you have to finish a counseling course regarding bankruptcy so that you can be sure this is the correct option for you. This can be done no longer than six months before file your paperwork. Upon filing, your wages will no longer be garnished and your creditors can no longer proceed with legal actions against you or, in most cases, even call you regarding your debt. The court will contact your creditors.
Next, you must meet with your creditors in what is called the 341 meeting. Creditors may or may not choose to attend, but you must be there. A trustee will be assigned to your case and presides. This meeting will typically only last five minutes, and creditors usually do not show up. Afterwards, your trustee will sell any of your possessions that are nonexempt. Creditors have up to 90 days to then file claims. A bankruptcy lawyer will be assigned to help you through this process.
After the 90 days are over, or after all of your creditor have files their claims (whichever comes first), you will be discharged and all of your debts will be written off, except certain exceptions, like student loans and child support payments. Other debts that cannot be wiped clean from your slate include alimony obligations and taxes.
Be aware that most of your possessions can be sold when you file for bankruptcy and will be sold rather quickly. In many cases, it is better to sell them yourself for more money before you declare bankruptcy and use them to help pay off debts. If you can do this effectively, you might not have to declare bankruptcy at all. If you can, look for options to avoid bankruptcy. You have choices, and debt counselors can help you figure out a financial plan that is right for you. Get more info.
Click Here!
Bankruptcy is when you legally declare that you can no longer repay your debts. Individuals have the choice of either declaring chapter 7 or chapter 13 bankruptcies, depending on the severities of their debts and the incomes being made. Of most, chapter 7 bankruptcy makes the most sense, although you should consider both carefully and do what is right for your. However, if you do declare chapter 7 bankruptcy, here is how it will play out:
First, your declaration officially begins when you sign the paperwork and file the proper documents with a bankruptcy court. In most states, you have to finish a counseling course regarding bankruptcy so that you can be sure this is the correct option for you. This can be done no longer than six months before file your paperwork. Upon filing, your wages will no longer be garnished and your creditors can no longer proceed with legal actions against you or, in most cases, even call you regarding your debt. The court will contact your creditors.
Next, you must meet with your creditors in what is called the 341 meeting. Creditors may or may not choose to attend, but you must be there. A trustee will be assigned to your case and presides. This meeting will typically only last five minutes, and creditors usually do not show up. Afterwards, your trustee will sell any of your possessions that are nonexempt. Creditors have up to 90 days to then file claims. A bankruptcy lawyer will be assigned to help you through this process.
After the 90 days are over, or after all of your creditor have files their claims (whichever comes first), you will be discharged and all of your debts will be written off, except certain exceptions, like student loans and child support payments. Other debts that cannot be wiped clean from your slate include alimony obligations and taxes.
Be aware that most of your possessions can be sold when you file for bankruptcy and will be sold rather quickly. In many cases, it is better to sell them yourself for more money before you declare bankruptcy and use them to help pay off debts. If you can do this effectively, you might not have to declare bankruptcy at all. If you can, look for options to avoid bankruptcy. You have choices, and debt counselors can help you figure out a financial plan that is right for you. Get more info.
Click Here!
Is Bankruptcy Right for you?
Is Bankruptcy Right for you?
Bankruptcy is a financial practice that allows you to officially declare that you cannot repay your debts now and do not see how it will ever be possible in the future. Declaring Bankruptcy is a big step. For some people, there are other ways to get out of debt, like debt consolidation or negotiating with your lenders. However, if your best option for getting out of debt is bankruptcy, than you should take steps to make this financial situation work in the best possible way for you. A financial profession can help you do that. In any case, before you jump into anything, you need to fully decide if bankruptcy is right for you.
First, it is important to learn as much as you can about bankruptcy. For individuals, chapter 7 and chapter 13 are the two types of bankruptcy that can be filed. There are other options for businesses and entities. Learn the difference between the two so you can see how they work. If bankruptcy is right for you, you must be aware of your obligations and your lenders’ choices.
Once you have learned all you can about bankruptcy, take a moment to consider other options. For example, you can consolidate your debts into one large monthly payment. If you are considering bankruptcy because you just barely miss paying off your bills on time every month or if you feel overwhelmed by credit card debt, this may be a great option for you. You can also try doing nothing and living simply for a number of years, which works well if you have no family for which you are responsible. Another options is negotiating with your lenders. In the end, there are many different options other than bankruptcy, so make sure that your second step is to consider them all.
Next, check out the requirements for eligibility for declaring bankruptcy. If your debts are too high and your income too low, you probably will not qualify for chapter 13 bankruptcy. On the other hand, if your income is too high and your debts too low, you probably will not qualify for chapter 7 bankruptcy. In some cases, you may not qualify for either, and this is a sign that you did not think through your other choices.
Consider all of your property and debts if you do qualify. What will happen to your home? Your car? Your retirement plan? Every state has different specification when to comes to this, so make sure that you understand how your property will or will not be taken. Also, it is important to begin compiling lists of your assets and debts. Remember that some debts cannot be wiped out, like child support payments.
Once you have all your information compiled, you can begin the declaration process. It is best to work with a lawyer or financial professional to complete this task, and remember to always be completely honest. Declaring bankruptcy is not for everyone, but it can work for some people. Click Here!
Bankruptcy is a financial practice that allows you to officially declare that you cannot repay your debts now and do not see how it will ever be possible in the future. Declaring Bankruptcy is a big step. For some people, there are other ways to get out of debt, like debt consolidation or negotiating with your lenders. However, if your best option for getting out of debt is bankruptcy, than you should take steps to make this financial situation work in the best possible way for you. A financial profession can help you do that. In any case, before you jump into anything, you need to fully decide if bankruptcy is right for you.
First, it is important to learn as much as you can about bankruptcy. For individuals, chapter 7 and chapter 13 are the two types of bankruptcy that can be filed. There are other options for businesses and entities. Learn the difference between the two so you can see how they work. If bankruptcy is right for you, you must be aware of your obligations and your lenders’ choices.
Once you have learned all you can about bankruptcy, take a moment to consider other options. For example, you can consolidate your debts into one large monthly payment. If you are considering bankruptcy because you just barely miss paying off your bills on time every month or if you feel overwhelmed by credit card debt, this may be a great option for you. You can also try doing nothing and living simply for a number of years, which works well if you have no family for which you are responsible. Another options is negotiating with your lenders. In the end, there are many different options other than bankruptcy, so make sure that your second step is to consider them all.
Next, check out the requirements for eligibility for declaring bankruptcy. If your debts are too high and your income too low, you probably will not qualify for chapter 13 bankruptcy. On the other hand, if your income is too high and your debts too low, you probably will not qualify for chapter 7 bankruptcy. In some cases, you may not qualify for either, and this is a sign that you did not think through your other choices.
Consider all of your property and debts if you do qualify. What will happen to your home? Your car? Your retirement plan? Every state has different specification when to comes to this, so make sure that you understand how your property will or will not be taken. Also, it is important to begin compiling lists of your assets and debts. Remember that some debts cannot be wiped out, like child support payments.
Once you have all your information compiled, you can begin the declaration process. It is best to work with a lawyer or financial professional to complete this task, and remember to always be completely honest. Declaring bankruptcy is not for everyone, but it can work for some people. Click Here!
How to get a Mortgage After Bankruptcy
How to get a Mortgage After Bankruptcy
Declaring bankruptcy can be a great tool if you find yourself drowning in debt. Bankruptcy is meant to help people who just cannot find another way out. It allows you to use all of your assets to pay back as much as possible over a set number of years are all at once and then start anew. When you declare bankruptcy, you free yourself from creditor and collection agency phone calls and have the chance to start over again with a fresh slate.
Well, almost. When you declare bankruptcy, it appears on your credit history that you took this action. Bankruptcy means that your lenders probably did not get back all of the money you owed them. Therefore, if future lenders see that you have declared bankruptcy in the past, you are considered to be a very high-risk candidate, because you might not have changed. Getting a mortgage after bankruptcy can be especially difficult, but there are ways to go about doing it.
First, building up credit—good or bad—takes time. If you declare bankruptcy, you effectively wipe out your credit history. However, that includes any good credit you may have had as well. Therefore, you have to start from scratch. Just like a mortgage lender would consider a young adult a high-risk candidate because he or she has little credit history, you too will be considered a high-risk candidate. You can explain to your lender about how you’re going to change until you are blue in your face, but a more effective way to do that is to prove it. Build up your good credit again, and wait about two years before even considering approaching a lender regarding a mortgage.
You can also use special government programs to help you get a mortgage. Some will work with you to put less money down on your new home and to convince a lender that you should qualify, even if you have declared bankruptcy in the past. If you have a solid income now and are working to pay off debts, you can probably qualify for some of these government programs.
You can also use your current home as equity to convince a lender that you should qualify. The less money your want to borrow, the less risk you are to a lender. Therefore, if you can pay for the majority of your new home by selling your current home, your lender will be more likely to overlook the fact that you’ve declared bankruptcy in the past.
The real lesson here is that bankruptcy should not be declared lightly. You need to make absolutely sure it is the best option for you. Bankruptcy should be your last resort financially, because it will make it difficult to do things like get a mortgage in the future.Get more Information. Click Here!
Declaring bankruptcy can be a great tool if you find yourself drowning in debt. Bankruptcy is meant to help people who just cannot find another way out. It allows you to use all of your assets to pay back as much as possible over a set number of years are all at once and then start anew. When you declare bankruptcy, you free yourself from creditor and collection agency phone calls and have the chance to start over again with a fresh slate.
Well, almost. When you declare bankruptcy, it appears on your credit history that you took this action. Bankruptcy means that your lenders probably did not get back all of the money you owed them. Therefore, if future lenders see that you have declared bankruptcy in the past, you are considered to be a very high-risk candidate, because you might not have changed. Getting a mortgage after bankruptcy can be especially difficult, but there are ways to go about doing it.
First, building up credit—good or bad—takes time. If you declare bankruptcy, you effectively wipe out your credit history. However, that includes any good credit you may have had as well. Therefore, you have to start from scratch. Just like a mortgage lender would consider a young adult a high-risk candidate because he or she has little credit history, you too will be considered a high-risk candidate. You can explain to your lender about how you’re going to change until you are blue in your face, but a more effective way to do that is to prove it. Build up your good credit again, and wait about two years before even considering approaching a lender regarding a mortgage.
You can also use special government programs to help you get a mortgage. Some will work with you to put less money down on your new home and to convince a lender that you should qualify, even if you have declared bankruptcy in the past. If you have a solid income now and are working to pay off debts, you can probably qualify for some of these government programs.
You can also use your current home as equity to convince a lender that you should qualify. The less money your want to borrow, the less risk you are to a lender. Therefore, if you can pay for the majority of your new home by selling your current home, your lender will be more likely to overlook the fact that you’ve declared bankruptcy in the past.
The real lesson here is that bankruptcy should not be declared lightly. You need to make absolutely sure it is the best option for you. Bankruptcy should be your last resort financially, because it will make it difficult to do things like get a mortgage in the future.Get more Information. Click Here!
Doing Nothing and Avoiding Bankruptcy
Doing Nothing and Avoiding Bankruptcy
Bankruptcy is the official declaration that you cannot repay your debts. This is used only as a last resort, when you have found no other way to get out of debt. For most people, this is not a good option. Bankruptcy can only be successful if you really have tried every other option and none of these options have worked. For some, bankruptcy might be the answer, but there are many options you should try first. One of these options is actually doing nothing.
Unlike most people think, you cannot simply be thrown in jail for not paying your debts. This only happens in extreme cases, like if you refuse to pay your taxes or don’t pay child support. As long as you pay these debts, there is not much a creditor can do to you. The key is, however, that you must live simply with only the basic needs until your debts are no longer collectable.
For example, a creditor can sue you for the debt you owe and take you to court. However, even if that debtor wins in court, which is most likely, he or she cannot take away your basic needs. Basic needs that cannot be taken include clothing, food, ordinary household items, like your bed and blankets (as long as they are not excessively ornate or valuable), and checks you receive for social security, public assistance, or unemployment. If you have nothing else, the creditor has nothing to take.
Be forewarned that you will not be able to save any money during this time period, nor will you be able to live with anything other than the basic human needs. If you start earning an income, anything you do not use for food and other basic human needs can be taken away. A court will decide how much your wages will be taxed.
After a number of years, the debt becomes uncollectable. The basic plan behind doing nothing is that you will live simply until this time arrives. It will probably be different for every debt you have, depending on what kinds of debts they are. However, after that time period, you can again start saving money, living more extravagantly, and even applying for new loans. Of course, you probably will not quality, but after seven years, all past debts are wiped clean from your credit history.
This method takes time and is not for everyone, but if you don’t want to declare bankruptcy, it is an option you have. Talk to a financial professional if you want to figure out the best course of action for you and your lifestyle. To get more info.
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Bankruptcy is the official declaration that you cannot repay your debts. This is used only as a last resort, when you have found no other way to get out of debt. For most people, this is not a good option. Bankruptcy can only be successful if you really have tried every other option and none of these options have worked. For some, bankruptcy might be the answer, but there are many options you should try first. One of these options is actually doing nothing.
Unlike most people think, you cannot simply be thrown in jail for not paying your debts. This only happens in extreme cases, like if you refuse to pay your taxes or don’t pay child support. As long as you pay these debts, there is not much a creditor can do to you. The key is, however, that you must live simply with only the basic needs until your debts are no longer collectable.
For example, a creditor can sue you for the debt you owe and take you to court. However, even if that debtor wins in court, which is most likely, he or she cannot take away your basic needs. Basic needs that cannot be taken include clothing, food, ordinary household items, like your bed and blankets (as long as they are not excessively ornate or valuable), and checks you receive for social security, public assistance, or unemployment. If you have nothing else, the creditor has nothing to take.
Be forewarned that you will not be able to save any money during this time period, nor will you be able to live with anything other than the basic human needs. If you start earning an income, anything you do not use for food and other basic human needs can be taken away. A court will decide how much your wages will be taxed.
After a number of years, the debt becomes uncollectable. The basic plan behind doing nothing is that you will live simply until this time arrives. It will probably be different for every debt you have, depending on what kinds of debts they are. However, after that time period, you can again start saving money, living more extravagantly, and even applying for new loans. Of course, you probably will not quality, but after seven years, all past debts are wiped clean from your credit history.
This method takes time and is not for everyone, but if you don’t want to declare bankruptcy, it is an option you have. Talk to a financial professional if you want to figure out the best course of action for you and your lifestyle. To get more info.
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Debt Consolidation: An Alternative to Bankruptcy
Debt Consolidation: An Alternative to Bankruptcy
Bankruptcy is when a person or business officially declares the inability to pay back creditors the money that was previously borrowed. This should only be done as a last resort, because bankruptcy will affect every aspect of your life. It will also affect your ability to get loans, mortgages, and credit card in the future. However, for some people, declaring bankruptcy means finding freedom once again. It wipes your slate clean so to speak, and you can start over again with your credit.
However, there are a number of things you should try before you declare bankruptcy. One of these things is debt consolidation. Deb consolidation cannot help everybody concerned with money problems, but for some, it is jus the boost needed to keep them from declaring bankruptcy.
Debt consolidation is basically taking all of your loans and paying them off using one large loan. You then have one monthly bill to pay instead of a number of smaller bills. This can save you money in the long run. Why? The one large loan will usually have a secured lower fixed interest rate. This is especially advisable if you are considering declaring bankruptcy because of high credit card debts.
Credit cards have very high interest rates—usually much higher than any other kind of loan. If you miss just one month of paying your card in full, you may never get back on track for paying off the balance. This can really start to add up if you find that you have more than one card. If you are far into debt, you can probably not get an unsecured loan from a financial institution, like a bank. However, you should be able to get a secured loan. A secured loan uses your house, car, or other possessions as collateral. With a lower interest rate, you can start making headway into your debt instead of simply making the minimum monthly payments. This will help you to avoid bankruptcy.
Consolidating your debts may not be the best choice for everyone. In fact, in some cases, bankruptcy is really the best way to get back on the financial fast track. However, it is important to realize that you have choices. If you don’t have to declare bankruptcy, avoid it and you will find that your life will be financially easier to handle in the future. It depends on your unique situation. Talk to a financial professional if you want more help learning about debt consolidation.
To learn more. Click Here!
Bankruptcy is when a person or business officially declares the inability to pay back creditors the money that was previously borrowed. This should only be done as a last resort, because bankruptcy will affect every aspect of your life. It will also affect your ability to get loans, mortgages, and credit card in the future. However, for some people, declaring bankruptcy means finding freedom once again. It wipes your slate clean so to speak, and you can start over again with your credit.
However, there are a number of things you should try before you declare bankruptcy. One of these things is debt consolidation. Deb consolidation cannot help everybody concerned with money problems, but for some, it is jus the boost needed to keep them from declaring bankruptcy.
Debt consolidation is basically taking all of your loans and paying them off using one large loan. You then have one monthly bill to pay instead of a number of smaller bills. This can save you money in the long run. Why? The one large loan will usually have a secured lower fixed interest rate. This is especially advisable if you are considering declaring bankruptcy because of high credit card debts.
Credit cards have very high interest rates—usually much higher than any other kind of loan. If you miss just one month of paying your card in full, you may never get back on track for paying off the balance. This can really start to add up if you find that you have more than one card. If you are far into debt, you can probably not get an unsecured loan from a financial institution, like a bank. However, you should be able to get a secured loan. A secured loan uses your house, car, or other possessions as collateral. With a lower interest rate, you can start making headway into your debt instead of simply making the minimum monthly payments. This will help you to avoid bankruptcy.
Consolidating your debts may not be the best choice for everyone. In fact, in some cases, bankruptcy is really the best way to get back on the financial fast track. However, it is important to realize that you have choices. If you don’t have to declare bankruptcy, avoid it and you will find that your life will be financially easier to handle in the future. It depends on your unique situation. Talk to a financial professional if you want more help learning about debt consolidation.
To learn more. Click Here!
Monday, May 18, 2009
Corporate Bankruptcy: Where Does it Leave You?
Corporate Bankruptcy: Where Does it Leave You?
Corporations can file for bankruptcy, just like individuals. Bankruptcy is the legal declaration that you cannot pay your debts. However, the problem arises when the corporation is a large public company that has given out thousands of shares of stock to different stockholders. If you are one of these stockholders, you may be wondering how this company’s bankruptcy will affect you.
Don’t worry—when you are a stockholder, although you own a tiny piece of the company, you personally are not financially responsible for the company declaring bankruptcy. You may lose a lot of money because the value of the stock might drop to zero, but creditors won’t be banging you’re your door asking for millions, that’s for sure! However, as a stockholder, you are responsible to continue to understand how the company is operating throughout the bankruptcy. You do have a small say and how it operates.
Companies can choose to file either chapter 11 or chapter 7 bankruptcy. Most choose to file chapter 11. This means that, although the company cannot currently pay off its debts, it is hoping that with some help and with reorganization the company can be profitable again. The company’s stock can continue to trade while this is occurring. Sometimes a trustee and creditors will handle the reorganization, and sometime the new owners will handle it. It depends on the specific situation.
In this case, when the reorganization plan is complete, you as a stockholder will get a vote. You should read everything sent carefully, and if you agree vote in favor. If you do not agree, vote against. Your voice does make a difference, because if enough people vote against, the company cannot carry through with the plan.
However, in some cases, this is not how companies choose to proceed. If the company is deeply in debt and does not see any chance for coming back from this debt, even after a reorganization, the company will declare a chapter 7 bankruptcy and liquidate. When a company liquidates, the trustee sells all of the assets to pay off creditors. For, secured debts are repaid, and then unsecured debts are repaid. If there’s any money left, it is split amount he stockholders, but this is usually not the case.
The bottom line is that bankruptcy is bad for everyone. It is important to follow the things happening in your company so that you are aware of things like this that could be on the horizon. The stock market is a gamble, and sometimes it does not pay off. Click Here!
Corporations can file for bankruptcy, just like individuals. Bankruptcy is the legal declaration that you cannot pay your debts. However, the problem arises when the corporation is a large public company that has given out thousands of shares of stock to different stockholders. If you are one of these stockholders, you may be wondering how this company’s bankruptcy will affect you.
Don’t worry—when you are a stockholder, although you own a tiny piece of the company, you personally are not financially responsible for the company declaring bankruptcy. You may lose a lot of money because the value of the stock might drop to zero, but creditors won’t be banging you’re your door asking for millions, that’s for sure! However, as a stockholder, you are responsible to continue to understand how the company is operating throughout the bankruptcy. You do have a small say and how it operates.
Companies can choose to file either chapter 11 or chapter 7 bankruptcy. Most choose to file chapter 11. This means that, although the company cannot currently pay off its debts, it is hoping that with some help and with reorganization the company can be profitable again. The company’s stock can continue to trade while this is occurring. Sometimes a trustee and creditors will handle the reorganization, and sometime the new owners will handle it. It depends on the specific situation.
In this case, when the reorganization plan is complete, you as a stockholder will get a vote. You should read everything sent carefully, and if you agree vote in favor. If you do not agree, vote against. Your voice does make a difference, because if enough people vote against, the company cannot carry through with the plan.
However, in some cases, this is not how companies choose to proceed. If the company is deeply in debt and does not see any chance for coming back from this debt, even after a reorganization, the company will declare a chapter 7 bankruptcy and liquidate. When a company liquidates, the trustee sells all of the assets to pay off creditors. For, secured debts are repaid, and then unsecured debts are repaid. If there’s any money left, it is split amount he stockholders, but this is usually not the case.
The bottom line is that bankruptcy is bad for everyone. It is important to follow the things happening in your company so that you are aware of things like this that could be on the horizon. The stock market is a gamble, and sometimes it does not pay off. Click Here!
Bankruptcy fraud
Bankruptcy fraud
Even though a bankruptcy can sit on your record or on your companies record for a very long time, and even though it can make it nearly impossible for you to get loans, get credit or even do any large financial trading, there is still the factor that remains that once you have filed for bankruptcy, your debts are most likely going to be taken care of. This had led to many advancements in bankruptcy fraud, and has led in turn to a crackdown on this fraud by the government, which is going to hopefully be able to take care of too many different bankruptcies and get more and more people back on their feet in the correct manner.
Bankruptcy fraud can be done in several ways, and some of them are quite hard to catch. One thing that is done is when someone files for bankruptcy but really doesn’t need to file for it. They might hide most of their assets by giving them to others to own or hold, and by not disclosing them. This means that the assets that they do have are taken and sold, and their debts are forgiven, and once the bankruptcy act is closed, these people simply get their property back from wherever they had it, and they are in much better shape than they were before, even with the mark on their credit. If you have enough property and you hide it from the government, then even though your credit says you have filed for bankruptcy, you can still find ways to pay for things because you still have the assets.
Bankruptcy fraud is dangerous because it is hurtful to the people who file bankruptcy when they actually have to. Those that are filing in fraudulent manners are tying up the court system and are tying up the resources that the other people need in order to actually get their debts taken care of. This is detrimental to the whole process. It also isn’t fair to the creditors because if someone files bankruptcy and hides their property, the creditors are not going to get everything that has been owed to them and are going to find themselves out of luck. Because of the fact that bankruptcy fraud can be harmful to so many different people, the government has cracked down on it and now makes sure that being caught with bankruptcy fraud is something that is very punishable. It is also not easy to get away with in any way. To learn more. Click Here!
Even though a bankruptcy can sit on your record or on your companies record for a very long time, and even though it can make it nearly impossible for you to get loans, get credit or even do any large financial trading, there is still the factor that remains that once you have filed for bankruptcy, your debts are most likely going to be taken care of. This had led to many advancements in bankruptcy fraud, and has led in turn to a crackdown on this fraud by the government, which is going to hopefully be able to take care of too many different bankruptcies and get more and more people back on their feet in the correct manner.
Bankruptcy fraud can be done in several ways, and some of them are quite hard to catch. One thing that is done is when someone files for bankruptcy but really doesn’t need to file for it. They might hide most of their assets by giving them to others to own or hold, and by not disclosing them. This means that the assets that they do have are taken and sold, and their debts are forgiven, and once the bankruptcy act is closed, these people simply get their property back from wherever they had it, and they are in much better shape than they were before, even with the mark on their credit. If you have enough property and you hide it from the government, then even though your credit says you have filed for bankruptcy, you can still find ways to pay for things because you still have the assets.
Bankruptcy fraud is dangerous because it is hurtful to the people who file bankruptcy when they actually have to. Those that are filing in fraudulent manners are tying up the court system and are tying up the resources that the other people need in order to actually get their debts taken care of. This is detrimental to the whole process. It also isn’t fair to the creditors because if someone files bankruptcy and hides their property, the creditors are not going to get everything that has been owed to them and are going to find themselves out of luck. Because of the fact that bankruptcy fraud can be harmful to so many different people, the government has cracked down on it and now makes sure that being caught with bankruptcy fraud is something that is very punishable. It is also not easy to get away with in any way. To learn more. Click Here!
Bankruptcy and Taxes
Bankruptcy and Taxes
When it comes to bankruptcy and taxes, there can be several serious things that you are going to want to think about. If you are going to file for bankruptcy, you are going to want to make sure that you are doing everything you can to save yourself as much trouble, money, and time as you can.
You should know that any income tax debts might be eligible for being taken care of under Chapter 7 or chapter 13. If you are willing to file for bankruptcy, this is one of five ways that you can get out of tax debt. However, you should remember that in order to get your taxes discharged by filing for bankruptcy, you are going to have to meet certain requirements, so you should make sure you meet them before you file for bankruptcy to get out of tax debt.
If you file for Chapter 7, you are going to be able to get fully discharged of the debts that are allowable. With Chapter 13, there will be a payment plan that is required so that you can pay back some of your debts, and the rest will be discharged. Remember that not all of the tax debt that you might have is going to be discharged if you file for bankruptcy. You have to meet five criteria in order to get your taxes taken care of.
These five criteria that you need to meet in order to get your tax debt discharged when you file for bankruptcy are all important. The first is that the date that the tax return was due was at least three years ago. The second is that the tax return had been filed at least two years ago. The third is that the tax assessment is at least 240 days old. The fourth is that the tax return cannot have been fraudulent. And the fifth is that you are not guild of tax evasion. If you can meet all of these criteria, you are going to be able to most likely get your tax debt discharged when you file for bankruptcy.
Remember that filing for bankruptcy carries its own consequences, especially on your credit. You should not file for bankruptcy just to be able to get out of paying your tax debt, because it is going to do much more harm than good in the long run when it comes to the damage done to your credit. Only file if you have no other option and if you’ve been told that it is your best chance of beginning to rebuild your life.
For more information. Click Here!
When it comes to bankruptcy and taxes, there can be several serious things that you are going to want to think about. If you are going to file for bankruptcy, you are going to want to make sure that you are doing everything you can to save yourself as much trouble, money, and time as you can.
You should know that any income tax debts might be eligible for being taken care of under Chapter 7 or chapter 13. If you are willing to file for bankruptcy, this is one of five ways that you can get out of tax debt. However, you should remember that in order to get your taxes discharged by filing for bankruptcy, you are going to have to meet certain requirements, so you should make sure you meet them before you file for bankruptcy to get out of tax debt.
If you file for Chapter 7, you are going to be able to get fully discharged of the debts that are allowable. With Chapter 13, there will be a payment plan that is required so that you can pay back some of your debts, and the rest will be discharged. Remember that not all of the tax debt that you might have is going to be discharged if you file for bankruptcy. You have to meet five criteria in order to get your taxes taken care of.
These five criteria that you need to meet in order to get your tax debt discharged when you file for bankruptcy are all important. The first is that the date that the tax return was due was at least three years ago. The second is that the tax return had been filed at least two years ago. The third is that the tax assessment is at least 240 days old. The fourth is that the tax return cannot have been fraudulent. And the fifth is that you are not guild of tax evasion. If you can meet all of these criteria, you are going to be able to most likely get your tax debt discharged when you file for bankruptcy.
Remember that filing for bankruptcy carries its own consequences, especially on your credit. You should not file for bankruptcy just to be able to get out of paying your tax debt, because it is going to do much more harm than good in the long run when it comes to the damage done to your credit. Only file if you have no other option and if you’ve been told that it is your best chance of beginning to rebuild your life.
For more information. Click Here!
Bankruptcy and Divorce
Bankruptcy and Divorce
If you believe that you and your partner are headed for divorce, and you both have a lot of debt between you, it might be a good idea to decide to file for bankruptcy before you begin to file for divorce. This will pave the way for the divorce to proceed much more easily because it will allow you to get rid of some of your debt and to clear the way for a clean break. If you can file for bankruptcy, then you can have a better idea of how to deal with the debts that do remain between the two of you. It will also mean that if your ex files for bankruptcy later on down the road, you can be protected because you are going to take care of your debts before the divorce.
The way it works is rather simple. When one or both of the spouses file for bankruptcy, all of the property that has been shared by both of them will become a part of the estate and will then be available to pay for the debts. This will also mean that you have been granted an automatic stay, which means that the creditors can’t hound you for money. Remember that this stay does not prevent you from getting spouse or child support from your ex. The next thing that will happen is that the bankruptcy court will decide what shared property is exempt from the bankruptcy, meaning that it cannot be sold in order to pay for your debts. Then, the divorce court can divide that property between you and your ex spouse.
If you are trying to negotiate property settlements, and also going through bankruptcy, you are going to be dealing with very complicated issues. Some of the debts that might be related to a property settlement might not be wiped out during the bankruptcy, so you will still need to pay them. However, these debts can be wiped out if you can show that you can’t pay the debt and still take care or yourself or your children, or that if you wipe out the debt it is going to be better for you than the harm that would be done to the people that you owe by not paying it. This means that if you think your spouse is going to consider filing for bankruptcy after the divorce is final, you need to make sure that your finances are squared away so that you aren’t going to be faced with any more debts.
If you believe that you and your partner are headed for divorce, and you both have a lot of debt between you, it might be a good idea to decide to file for bankruptcy before you begin to file for divorce. This will pave the way for the divorce to proceed much more easily because it will allow you to get rid of some of your debt and to clear the way for a clean break. If you can file for bankruptcy, then you can have a better idea of how to deal with the debts that do remain between the two of you. It will also mean that if your ex files for bankruptcy later on down the road, you can be protected because you are going to take care of your debts before the divorce.
The way it works is rather simple. When one or both of the spouses file for bankruptcy, all of the property that has been shared by both of them will become a part of the estate and will then be available to pay for the debts. This will also mean that you have been granted an automatic stay, which means that the creditors can’t hound you for money. Remember that this stay does not prevent you from getting spouse or child support from your ex. The next thing that will happen is that the bankruptcy court will decide what shared property is exempt from the bankruptcy, meaning that it cannot be sold in order to pay for your debts. Then, the divorce court can divide that property between you and your ex spouse.
If you are trying to negotiate property settlements, and also going through bankruptcy, you are going to be dealing with very complicated issues. Some of the debts that might be related to a property settlement might not be wiped out during the bankruptcy, so you will still need to pay them. However, these debts can be wiped out if you can show that you can’t pay the debt and still take care or yourself or your children, or that if you wipe out the debt it is going to be better for you than the harm that would be done to the people that you owe by not paying it. This means that if you think your spouse is going to consider filing for bankruptcy after the divorce is final, you need to make sure that your finances are squared away so that you aren’t going to be faced with any more debts.
Bankruptcy: A Matter of Pride
Bankruptcy: A Matter of Pride
Bankruptcy is a financial technique in which you declare that you cannot repay your creditors now or see a way to repay them in the future. Depending on your income and the amount of money you owe, an individual may declare chapter 7 or chapter 13 bankruptcies. However, in either case, bankruptcy is a fairly public affair. Your name and address will be published in at least one of the local newspapers for all of your friends to read, and your neighbors will see movers coming to repossess some of your items. For many people, the worst part of bankruptcy isn’t losing the money; it’s losing pride and dignity.
The first way to deal with this is to realize that most of your friends and family have gone through money problems at one time or another in their lives. Although they may not have resorted to bankruptcy, there is certainly no question that only the very lucky do not feel drown by debts at one point or another. Simply put, people will understand. Even though you may feel like everyone is snickering at you behind your back, the truth is that most people are actually empathizing with you.
Also realize that not everybody will realize you’ve declared bankruptcy. Most people do not take the time to read the newspaper that carefully, and even though word does travel fast, it is not a topic that most people will bring up because it simply is not that interesting. You might feel like you’re the headlining news, but in actuality, most people probably didn’t even know about it.
It is important to continue with the process, even if people do find out. If you are embarrassed, simply understand that so our all of people in this country who are going through the same thing. You are not alone. In fact, you may be able to get counseling to help you go through the bankruptcy process. You may be surprised at how many people have declared bankruptcy and gone on to be very successful.
If bankruptcy is the best thing for your family and your financial situation, it is most important that you continue with the declaration. Take care of yourself first, then worry about what other people have to think. The most important thing is not what your neighbors have to say, but instead what you are doing to get yourself bank on track financially so that your future will be brighter. Click Here!
Bankruptcy is a financial technique in which you declare that you cannot repay your creditors now or see a way to repay them in the future. Depending on your income and the amount of money you owe, an individual may declare chapter 7 or chapter 13 bankruptcies. However, in either case, bankruptcy is a fairly public affair. Your name and address will be published in at least one of the local newspapers for all of your friends to read, and your neighbors will see movers coming to repossess some of your items. For many people, the worst part of bankruptcy isn’t losing the money; it’s losing pride and dignity.
The first way to deal with this is to realize that most of your friends and family have gone through money problems at one time or another in their lives. Although they may not have resorted to bankruptcy, there is certainly no question that only the very lucky do not feel drown by debts at one point or another. Simply put, people will understand. Even though you may feel like everyone is snickering at you behind your back, the truth is that most people are actually empathizing with you.
Also realize that not everybody will realize you’ve declared bankruptcy. Most people do not take the time to read the newspaper that carefully, and even though word does travel fast, it is not a topic that most people will bring up because it simply is not that interesting. You might feel like you’re the headlining news, but in actuality, most people probably didn’t even know about it.
It is important to continue with the process, even if people do find out. If you are embarrassed, simply understand that so our all of people in this country who are going through the same thing. You are not alone. In fact, you may be able to get counseling to help you go through the bankruptcy process. You may be surprised at how many people have declared bankruptcy and gone on to be very successful.
If bankruptcy is the best thing for your family and your financial situation, it is most important that you continue with the declaration. Take care of yourself first, then worry about what other people have to think. The most important thing is not what your neighbors have to say, but instead what you are doing to get yourself bank on track financially so that your future will be brighter. Click Here!
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