5 Personal Bankruptcy Filing Tips
If you've done all you can, but you just aren't able to pull yourself back up financially and you feel that filing for bankruptcy is your only resort, here are some personal bankruptcy filing tips that may help you make the process a little less stressful.
When you file for bankruptcy protection you are immediately safe from creditors calls and repossessions. A creditor cannot legally contact you while your bankruptcy has been filed and after it's been discharged they won't have a reason to contact you since all your debt will have either been wiped out, Chapter 7, or you have a repayment plan in place, Chapter 13.
Here are the steps you will need to take:
1. Decide whether or not you will be hiring an attorney. For most people it is advisable since bankruptcy laws are complicated and different from one state to the next. If you decide to hire an attorney take the opportunity to meet with several. Make sure you ask for a fee schedule, this isn't the same as asking them how much your case will cost, it just means you know how much they will charge per hour and what other fees you may incur.
2. Gather up copies of all three credit reports as well as a thorough listing of all your debts and assets. This will include all loans whether they are secured or unsecured, medical bills, and a complete listing of any accounts such as savings or checking that you have. Make sure to include a full listing of any investments you may have and their current value.
It's not a good idea to leave anything out. If it is found out later you will face serious legal issues, be honest. In many states you will be allowed to keep some personal property like your home and a car. It does vary not only from state to state but also depending on how much equity you may have in your home. Many states will set limits to the amount of equity you can have in your home and still be able to keep it.
3. When gathering up your paperwork make sure to include the last few years of income tax records along with all your pay stubs for several months.
4. Once you've hired your attorney, have an honest conversation about what option you should choose, Chapter 7 or Chapter 13. Each form has it's pros and cons and your attorney can help you decide which form would be best for you and your circumstances.
5. Even if you choose to hire an attorney, make sure you are as proactive during the process as possible. It's important that you stay in close contact with your attorney to make sure there are no surprises. You should also go to all the hearings even though this can be a time consuming and stressful thing to do.
The truth is that many people will hire an attorney and just step back. That is not a good idea. Any good attorney will have dozens of clients and while you'd like to think that they have all the facts about your case readily available, the fact is that they can overlook things and forget things. It's important that you pay close attention so you can point any oversights out to your attorney. After all, this is your life and your future on the line.
If it ever comes the time to do a personal bankruptcy filing, the tips listed above can take at least a little of the fear out of the process. You've heard the saying that knowledge is power, use this knowledge to help you make this difficult time a little less stressful.
Showing posts with label Bankruptcy. Show all posts
Showing posts with label Bankruptcy. Show all posts
Monday, August 20, 2012
Tuesday, July 17, 2012
Buying A Car After Bankruptcy Discharge Without The Stress
Bankruptcy can cause a terrific decrease in your credit score and stay on your credit report for ten years. Buying a car after bankruptcy discharge can help you to reestablish your credit and give you a new start immediately.
After a bankruptcy discharge there are some things you can do to make purchasing your next vehicle a little easier. Read further to learn how to increase your chances of buying a car after bankruptcy.
Pull your Credit Reports from All Three Bureaus
After the bankruptcy has been discharged obtain a credit report from each of the three credit bureaus. The three companies that determine your credit score are Equifax, Transunion and Experian. Read through the reports and check to make sure all debts included in the bankruptcy have been removed from your report.
Write letters of explanation to each of the three credit bureaus, asking them to attach the letter to your credit report. These letters may not forgive your past financial mistakes but potential future lenders will take note. These explanations may make a difference to the lender when they review your request for a loan. This is especially true if you had a positive report prior to an unexpected loss of income for any reason.
Stash Some Cash
Buying a car after bankruptcy discharge may require you make a down payment on the vehicle. Filing bankruptcy puts a person in the high-risk category when it comes to lenders. By putting a good size down payment on the car you may have a better chance getting the lender to say yes to your loan.
Look over your monthly bills and see if there is some way to stash a little extra cash here and there. Consider such things as eating out for dinner only once a month instead of once a week. Take the money you save and put it in a savings account towards your new car. Instead of going to the movie theater, maybe you could rent a movie and pop some popcorn at home. Again, put the money you save into the savings for the down payment on a new vehicle.
Consider a Co-Signer
It is a possibility that when buying a car after bankruptcy discharge you may require a co-signer. This is someone who will sign the loan paperwork with you, allowing the lender to loan you the money for a car.
A co-signer is someone who trusts you to make the payments on time. This is because the co-signer is assuming responsibility of the payments should you default for any reason. The loan will appear on this person's credit report as if it was his own loan.
Late payments will be documented on his credit score in addition to yours. Therefore, to preserve a close relationship with your co-signer you will want to do all you can to pay the loan back on time and communicate any issues with the co-signer.
Buying a car after bankruptcy discharge can help to give you a new start. Determine which route is best for you and your situation and begin rebuilding your financial future now.
After a bankruptcy discharge there are some things you can do to make purchasing your next vehicle a little easier. Read further to learn how to increase your chances of buying a car after bankruptcy.
Pull your Credit Reports from All Three Bureaus
After the bankruptcy has been discharged obtain a credit report from each of the three credit bureaus. The three companies that determine your credit score are Equifax, Transunion and Experian. Read through the reports and check to make sure all debts included in the bankruptcy have been removed from your report.
Write letters of explanation to each of the three credit bureaus, asking them to attach the letter to your credit report. These letters may not forgive your past financial mistakes but potential future lenders will take note. These explanations may make a difference to the lender when they review your request for a loan. This is especially true if you had a positive report prior to an unexpected loss of income for any reason.
Stash Some Cash
Buying a car after bankruptcy discharge may require you make a down payment on the vehicle. Filing bankruptcy puts a person in the high-risk category when it comes to lenders. By putting a good size down payment on the car you may have a better chance getting the lender to say yes to your loan.
Look over your monthly bills and see if there is some way to stash a little extra cash here and there. Consider such things as eating out for dinner only once a month instead of once a week. Take the money you save and put it in a savings account towards your new car. Instead of going to the movie theater, maybe you could rent a movie and pop some popcorn at home. Again, put the money you save into the savings for the down payment on a new vehicle.
Consider a Co-Signer
It is a possibility that when buying a car after bankruptcy discharge you may require a co-signer. This is someone who will sign the loan paperwork with you, allowing the lender to loan you the money for a car.
A co-signer is someone who trusts you to make the payments on time. This is because the co-signer is assuming responsibility of the payments should you default for any reason. The loan will appear on this person's credit report as if it was his own loan.
Late payments will be documented on his credit score in addition to yours. Therefore, to preserve a close relationship with your co-signer you will want to do all you can to pay the loan back on time and communicate any issues with the co-signer.
Buying a car after bankruptcy discharge can help to give you a new start. Determine which route is best for you and your situation and begin rebuilding your financial future now.
Friday, July 13, 2012
Bankruptcy Lawyer Can Save Your Marriage
When couples have money problems, a bankruptcy lawyer may be the legal eagle to turn to. There are many reasons why spouses end up drowning in debt but the end result is common: tremendous pressure. It's hard to be a giving and compassionate spouse when the wolf is at your door. Cleaning up money troubles can give the marriage a fresh start. Chapter 7 or Chapter 13 may be the best option, depending on the circumstances.
Chapter 7 is the legal option taken that wipes away debts. Your bankruptcy lawyer will perform an assessment of your financial situation in order to determine if this is the most advantageous course of action. If so, it means that the slate will be wiped clean of all bills for a fresh start. This is often the best option for couples who have overwhelming credit card debt, medical bills, and personal loans that they need to clear up. After your attorney determines that this is the best course of action for your situation, he or she will file documents, negotiate with creditors and represent you in court.
Chapter 13 may be the best route to take if a restructuring of debts is in order rather than completely wiping them away. This legal action can provide relief but still allow you to keep assets such as your house and automobiles. With this financial filing method, a bankruptcy lawyer will perform an assessment of your finances, file documents, negotiate with creditors, and represent you in court. The goal is to restructure your debt by breaking your large monthly payments into smaller amounts so that you can breathe.
Common problems that occur between husbands and wives include blaming, shaming, and becoming argumentative. If you find yourself in this situation, know that you're not alone. There may be finger pointing as one partner blames the other for the overwhelming debt. There may be accusations that one partner was spending too much and working too little. Both husband and wife may feel ashamed, depressed, and anxious - none of which are good for fostering a positive relationship. When money problems are a constant source of irritation, both partners may snap at each other and be argumentative. If a bankruptcy lawyer is called in, the money problems can be eased and the couple can start fresh. Putting the financial burdens behind them can leave room for healing and a renewal of love and affection.
Money problems are often the cause of divorce. Instead of splitting up, marriages can be saved by alleviated financial pressures. By calling in a bankruptcy lawyer, the debt burden can be eased so that the spouses can breathe again and find the strength to heal their relationship.
Chapter 7 is the legal option taken that wipes away debts. Your bankruptcy lawyer will perform an assessment of your financial situation in order to determine if this is the most advantageous course of action. If so, it means that the slate will be wiped clean of all bills for a fresh start. This is often the best option for couples who have overwhelming credit card debt, medical bills, and personal loans that they need to clear up. After your attorney determines that this is the best course of action for your situation, he or she will file documents, negotiate with creditors and represent you in court.
Chapter 13 may be the best route to take if a restructuring of debts is in order rather than completely wiping them away. This legal action can provide relief but still allow you to keep assets such as your house and automobiles. With this financial filing method, a bankruptcy lawyer will perform an assessment of your finances, file documents, negotiate with creditors, and represent you in court. The goal is to restructure your debt by breaking your large monthly payments into smaller amounts so that you can breathe.
Common problems that occur between husbands and wives include blaming, shaming, and becoming argumentative. If you find yourself in this situation, know that you're not alone. There may be finger pointing as one partner blames the other for the overwhelming debt. There may be accusations that one partner was spending too much and working too little. Both husband and wife may feel ashamed, depressed, and anxious - none of which are good for fostering a positive relationship. When money problems are a constant source of irritation, both partners may snap at each other and be argumentative. If a bankruptcy lawyer is called in, the money problems can be eased and the couple can start fresh. Putting the financial burdens behind them can leave room for healing and a renewal of love and affection.
Money problems are often the cause of divorce. Instead of splitting up, marriages can be saved by alleviated financial pressures. By calling in a bankruptcy lawyer, the debt burden can be eased so that the spouses can breathe again and find the strength to heal their relationship.
Wednesday, June 13, 2012
Orange County Bankruptcy Law Office
Hiring a bankruptcy lawyer does not seem to appeal to a lot of people who believe that they are better off filing their own cases and representing themselves. The downside of this mistake is somewhat far-reaching and unpleasant. The continuing evolution of laws and specialized information is beyond the average person's understanding, especially in recent times. Dismissing a case over errors made in mere filing of necessary forms usually happens. The likelihood of this is greatly reduced by hiring a bankruptcy lawyer.
Filing for bankruptcy is never an easy decision. Only several failed attempts to meet with demands for unavailable money will cause you to file bankruptcy, like most people.
Your decision to file bankruptcy is probably due to having failed at every other attempt. A bankruptcy lawyer is then next on your agenda.
The choice of bankruptcy lawyer to use is easy for some. You might find a good lawyer following recommendations from a family member who may have undergone a bankruptcy in the past. The bankruptcy lawyer who handled their case might appeal to your because of their competence and professionalism in the past.
With no option in mind, the yellow pages might not be such a bad idea for finding a good bankruptcy lawyer. The attorneys' special section houses the bankruptcy lawyers' subsection.
Some pointers are important to keep in mind when choosing a bankruptcy lawyer.
A lawyer cannot handle your case efficiently if they have too many other cases to attend to. Initially, you should try for a consultation with the bankruptcy lawyer. You want to know if the lawyer can make time to meet you within a short time.
Be sure to ask questions once you're face to face with your bankruptcy lawyer. Be sure to ask for the lawyer's fees as well as what the implications are with your case.
Hiring a bankruptcy lawyer does not seem to appeal to a lot of people who believe that they are better off filing their own cases and representing themselves. Many make this horrible mistake and subsequently end up biting their fingers. Average people do not have the expertise and technical knowhow to navigate the waters of bankruptcy law that bankruptcy lawyers have, particularly recent changes in the law as regards the topic. Some judges could actually dismiss a case because there were mistakes in the filing of relevant paperwork. Errors of this nature do not necessarily have to be as a bankruptcy lawyer can help out.
Bankruptcy always has people struggling within before they file the case. Only several failed attempts to meet with demands for unavailable money will cause you to file bankruptcy, like most people.
Everything else having been tried, you might finally decide on bankruptcy. Next stop is obviously getting a bankruptcy lawyer.
Some folks find it really easy selecting a bankruptcy lawyer. Prior experiences can help a family member in recommending a good lawyer to you. You might appreciate a bankruptcy lawyer if you know they handled your family member's case with ease and professionalism.
The yellow pages also offer workable options when you can look nowhere else. Listed under attorneys', you will find bankruptcy lawyers.
You cannot loose sight of some important things when making your choice of a bankruptcy lawyer.
An attorney's caseload makes a difference; too much of it means he won't have enough time for you.
Filing for bankruptcy is never an easy decision. Only several failed attempts to meet with demands for unavailable money will cause you to file bankruptcy, like most people.
Your decision to file bankruptcy is probably due to having failed at every other attempt. A bankruptcy lawyer is then next on your agenda.
The choice of bankruptcy lawyer to use is easy for some. You might find a good lawyer following recommendations from a family member who may have undergone a bankruptcy in the past. The bankruptcy lawyer who handled their case might appeal to your because of their competence and professionalism in the past.
With no option in mind, the yellow pages might not be such a bad idea for finding a good bankruptcy lawyer. The attorneys' special section houses the bankruptcy lawyers' subsection.
Some pointers are important to keep in mind when choosing a bankruptcy lawyer.
A lawyer cannot handle your case efficiently if they have too many other cases to attend to. Initially, you should try for a consultation with the bankruptcy lawyer. You want to know if the lawyer can make time to meet you within a short time.
Be sure to ask questions once you're face to face with your bankruptcy lawyer. Be sure to ask for the lawyer's fees as well as what the implications are with your case.
Hiring a bankruptcy lawyer does not seem to appeal to a lot of people who believe that they are better off filing their own cases and representing themselves. Many make this horrible mistake and subsequently end up biting their fingers. Average people do not have the expertise and technical knowhow to navigate the waters of bankruptcy law that bankruptcy lawyers have, particularly recent changes in the law as regards the topic. Some judges could actually dismiss a case because there were mistakes in the filing of relevant paperwork. Errors of this nature do not necessarily have to be as a bankruptcy lawyer can help out.
Bankruptcy always has people struggling within before they file the case. Only several failed attempts to meet with demands for unavailable money will cause you to file bankruptcy, like most people.
Everything else having been tried, you might finally decide on bankruptcy. Next stop is obviously getting a bankruptcy lawyer.
Some folks find it really easy selecting a bankruptcy lawyer. Prior experiences can help a family member in recommending a good lawyer to you. You might appreciate a bankruptcy lawyer if you know they handled your family member's case with ease and professionalism.
The yellow pages also offer workable options when you can look nowhere else. Listed under attorneys', you will find bankruptcy lawyers.
You cannot loose sight of some important things when making your choice of a bankruptcy lawyer.
An attorney's caseload makes a difference; too much of it means he won't have enough time for you.
Friday, June 1, 2012
Bankruptcy Petition Drafting Tip 14
There are TWO things you should find out from the attorney (or ask the debtor in the client intake interview) before you start drafting a bankruptcy petition. These two questions are:
1. Have you completed the credit counseling requirement?
2. Have you ever filed bankruptcy? If so when?
As a virtual bankruptcy assistant working for bankruptcy attorneys, we have encountered several problems when not asking these questions before drafting the petition. After the attorney has the client fill out the Client Intake Forms and sends them to us, we assume the attorney has already qualified these debtors. But as amazing as it sounds we have spent many hours inputting information into the bankruptcy petition only to find out the client has not completed the credit counseling requirement.
At this stage we have no choice but to immediately stop drafting the bankruptcy petition and notify the attorney at once. Unless the debtor can go online and obtain his or her credit counseling certificate within a few days, the figures we entered into the bankruptcy software will need to be changed. Therefore, we will stop the process. Then, when the client obtains the credit counseling certificate, we will go back and update the Means Test as well as any additional income information on Schedules I and J and year-to-date totals under Item #1 or #2 of the Statement of Affairs.
But if you want to eliminate the possibility of this situation occurring altogether, do not input a bankruptcy petition until you have verified the debtor has completed the credit counseling requirement. This information should be provided by the attorney you are working for or a member of the law staff. But in our experience, we obtained this information from the debtor during the client intake interview.
The same thing holds true regarding prior bankruptcy filings. If you discover a debtor has filed bankruptcy within the past 2 years, you will want to use the information below to determine if the debtor's are eligible to file.
Under the new bankruptcy law:
1. If someone files a Chapter 7, they cannot file another Chapter 7 for 8 years.
2. If someone files a Chapter 7, they cannot file a Chapter 13 for 4 years.
3. If someone files a Chapter 13, they cannot file a Chapter 7 for 6 years.
4. If someone files a Chapter 13, they cannot file another Chapter 13 for 2 years.
Completing this step before drafting the bankruptcy petition will save you, your attorney and the law firm a great deal of time and expense.
To receive more bankruptcy petition drafting tips subscribe to the free Bankruptcy Training News at
1. Have you completed the credit counseling requirement?
2. Have you ever filed bankruptcy? If so when?
As a virtual bankruptcy assistant working for bankruptcy attorneys, we have encountered several problems when not asking these questions before drafting the petition. After the attorney has the client fill out the Client Intake Forms and sends them to us, we assume the attorney has already qualified these debtors. But as amazing as it sounds we have spent many hours inputting information into the bankruptcy petition only to find out the client has not completed the credit counseling requirement.
At this stage we have no choice but to immediately stop drafting the bankruptcy petition and notify the attorney at once. Unless the debtor can go online and obtain his or her credit counseling certificate within a few days, the figures we entered into the bankruptcy software will need to be changed. Therefore, we will stop the process. Then, when the client obtains the credit counseling certificate, we will go back and update the Means Test as well as any additional income information on Schedules I and J and year-to-date totals under Item #1 or #2 of the Statement of Affairs.
But if you want to eliminate the possibility of this situation occurring altogether, do not input a bankruptcy petition until you have verified the debtor has completed the credit counseling requirement. This information should be provided by the attorney you are working for or a member of the law staff. But in our experience, we obtained this information from the debtor during the client intake interview.
The same thing holds true regarding prior bankruptcy filings. If you discover a debtor has filed bankruptcy within the past 2 years, you will want to use the information below to determine if the debtor's are eligible to file.
Under the new bankruptcy law:
1. If someone files a Chapter 7, they cannot file another Chapter 7 for 8 years.
2. If someone files a Chapter 7, they cannot file a Chapter 13 for 4 years.
3. If someone files a Chapter 13, they cannot file a Chapter 7 for 6 years.
4. If someone files a Chapter 13, they cannot file another Chapter 13 for 2 years.
Completing this step before drafting the bankruptcy petition will save you, your attorney and the law firm a great deal of time and expense.
To receive more bankruptcy petition drafting tips subscribe to the free Bankruptcy Training News at
Tuesday, May 15, 2012
Personal Loans for Those After a Bankruptcy
If you need a loan after bankruptcy, then you might need to understand a little bit about personal loans for those with less than perfect credit. This article will tell you everything you need to know about personal loans after bankruptcy.
Sometimes it's not easy to get a loan of any sort after bankruptcy, but this simply isn't true. Many people think that the bankruptcy must be eliminated from their credit report before they can apply and get approved for a personal loan. However, this thinking is wrong and even those with a recent bankruptcy can become approved for a personal loan from a bank or another lending institution.
Personal Loan Guidelines After Bankruptcy
It's important to be very careful with any personal loans you decide to take out after a bankruptcy. Especially if you want to improve your financial situation. With a bankruptcy, you will have to take specific steps to help improve your credit score and get rid of some of the accounts you have defaulted on. Start by looking for the right lender that can offer you a personal loan after bankruptcy. Very rarely, a lender will require you to clear the bankruptcy from your credit report before they approve you for the loan you need and want.
Personal Lenders for After Bankruptcy
Many lenders offer personal loans after bankruptcy, but you still need to make sure you find the right type of loan for you and apply for one you will be approved by. As long as you have improved your credit score in one way or another, after bankruptcy, you will be able to find a lender that will work with you.
They will, however, look at the income you have and make sure you can handle the payments on the loan you want to take out. Credit won't be the only deciding factor and if your income can support the loan, most of these lenders will take into consideration how much you make and how long you have been working for your current company.
Improving your Credit Score
Before you decide you want to get a personal loan after bankruptcy, you want to make sure you have done everything you can to improve your credit score. Your bankruptcy might cause your credit score to drop by as much as 100 points. However, once the bankruptcy is discharged and some of the debts go away or change your credit score will start to recover.
You want to make sure your credit has recovered quite a bit before you try to get a personal loan of any nature. You may want to hire a company to help settle some of the debts you still have or to help get rid of debts that your bankruptcy handled. If you can get your credit to the point where e you don't have any negative debts, then getting approved for a personal loan will be very easy. Also, take the time to ensure any errors are removed or fixed. You can do this by writing a letter to the creditor or making a phone call and asking to have them report the correct information. If that doesn't work, you can simply dispute the debt with the credit agency.
Other Things to Consider
Once you fix your credit, you still need to consider a few things before applying for the right personal loan for you. If your credit score becomes very good, many financial institutions will allow you to get a loan through them. It will not be very hard to get your loan if you have a good credit score and a strong income. Some lenders will charge a higher interest rate due to your bankruptcy. This is due to how risky your loan is compared to another one. Most lenders, however, will overlook your credit history and will not care much about the bankruptcy. Make sure you understand all the policies of the lender before you take out the loan.
Your debt amount could also cause you an issue, but after bankruptcy, this should all be cleared up. This type of loan will help you whenever you want to get a loan after you have filed for bankruptcy. Personal loans after bankruptcy will help you do more with your finances and will allow you to take care of anything you need to deal with currently or in the future.
Sometimes it's not easy to get a loan of any sort after bankruptcy, but this simply isn't true. Many people think that the bankruptcy must be eliminated from their credit report before they can apply and get approved for a personal loan. However, this thinking is wrong and even those with a recent bankruptcy can become approved for a personal loan from a bank or another lending institution.
Personal Loan Guidelines After Bankruptcy
It's important to be very careful with any personal loans you decide to take out after a bankruptcy. Especially if you want to improve your financial situation. With a bankruptcy, you will have to take specific steps to help improve your credit score and get rid of some of the accounts you have defaulted on. Start by looking for the right lender that can offer you a personal loan after bankruptcy. Very rarely, a lender will require you to clear the bankruptcy from your credit report before they approve you for the loan you need and want.
Personal Lenders for After Bankruptcy
Many lenders offer personal loans after bankruptcy, but you still need to make sure you find the right type of loan for you and apply for one you will be approved by. As long as you have improved your credit score in one way or another, after bankruptcy, you will be able to find a lender that will work with you.
They will, however, look at the income you have and make sure you can handle the payments on the loan you want to take out. Credit won't be the only deciding factor and if your income can support the loan, most of these lenders will take into consideration how much you make and how long you have been working for your current company.
Improving your Credit Score
Before you decide you want to get a personal loan after bankruptcy, you want to make sure you have done everything you can to improve your credit score. Your bankruptcy might cause your credit score to drop by as much as 100 points. However, once the bankruptcy is discharged and some of the debts go away or change your credit score will start to recover.
You want to make sure your credit has recovered quite a bit before you try to get a personal loan of any nature. You may want to hire a company to help settle some of the debts you still have or to help get rid of debts that your bankruptcy handled. If you can get your credit to the point where e you don't have any negative debts, then getting approved for a personal loan will be very easy. Also, take the time to ensure any errors are removed or fixed. You can do this by writing a letter to the creditor or making a phone call and asking to have them report the correct information. If that doesn't work, you can simply dispute the debt with the credit agency.
Other Things to Consider
Once you fix your credit, you still need to consider a few things before applying for the right personal loan for you. If your credit score becomes very good, many financial institutions will allow you to get a loan through them. It will not be very hard to get your loan if you have a good credit score and a strong income. Some lenders will charge a higher interest rate due to your bankruptcy. This is due to how risky your loan is compared to another one. Most lenders, however, will overlook your credit history and will not care much about the bankruptcy. Make sure you understand all the policies of the lender before you take out the loan.
Your debt amount could also cause you an issue, but after bankruptcy, this should all be cleared up. This type of loan will help you whenever you want to get a loan after you have filed for bankruptcy. Personal loans after bankruptcy will help you do more with your finances and will allow you to take care of anything you need to deal with currently or in the future.
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