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understanding bankruptcy laws
A 2nd mortgage loan after a bankruptcy is the easiest way to
access cash. With online sub prime lenders, you can qualify for
a mortgage as soon as your bankruptcy closes. But for near
conventional rates, it is better to wait two years and build a
solid credit history.
Bankruptcy And Sub Prime Lenders
Millions of people file for bankruptcy every year for many
understandable reasons, such as job loss or illness. Sub prime
lenders understand this and are willing to lend to such people
Specializing in high risk loans with unconventional terms, sub
prime lenders can work out financing for virtually anyone.
Legitimate lenders will offer rates that are competitive
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Deciding Whether or Not to Declare Bankruptcy
If you've found yourself facing severe financial problems, you
might be considering filing for bankruptcy as a way to take care
of your debt. It's important to remember that the process of
filing for bankruptcy isn't an easy one, and that it should be
used only as a last resort... after all, the effects of a
bankruptcy filing can take several years to pass completely.
Below you'll find some information on exactly what bankruptcy is
and what it isn't, as well as some alternatives to bankruptcy,
so as to assist you in making the difficult decision as to
whether or not you should declare a bankruptcy.
What Bankruptcy Is
Bankruptcy is a legal filing, making an official statement that
you are unable to repay your outstanding debts and asking the
court system to intercede on your behalf. The bankruptcy laws
vary from country to country, but they are similar in that the
court will generally appoint a mediator to create a repayment
schedule for some of your debts and erase or reduce others.
Payments are generally then made to the court, often in the form
of wages that are withheld from your salary or paycheque, and
continue to be made until the agreed upon amount has been repaid
in full and the bankruptcy is discharged.
What Bankruptcy Isn't
Contrary to what many people believe, bankruptcy isn't a simple
means of erasing your debts and starting over. While some debts
will be negated by the court, many of those that you claim in
you filing will still need to be repaid... and the court will
see to it that they are repaid per the schedule that was created
by the mediator. There are also additional fees that must be
paid when filing for a bankruptcy... attorney's fees, court
costs, and other fines that are imposed to help prevent the
bankruptcy system from being abused.
Bankruptcy can be quite expensive, and it can be nearly
impossible (and in some cases restricted by law) to get any sort
of credit or financial account until well after the bankruptcy
has been discharged... which may take up to seven years.
Looking for Alternatives to Bankruptcy
A variety of alternatives to bankruptcy exist, though they may
vary depending upon your location and your financial situation.
Common bankruptcy alternatives include debt consolidation loans,
in which a sum of money is borrowed and used to repay older
debts that have become overwhelming (and leaving the borrower
with only a single monthly payment as opposed to multiple
payments), or credit counseling, in which a third-party agency
negotiates settlements with some of your debtors and assists you
in creating a budget so as to repay what you owe.
Other alternatives also exist, though you should always exercise
caution when considering them... if any service claims that they
can instantly repair your credit score or payment history, you
may not only be looking at a scam but also at activities that
can get you into legal trouble as well.
When Bankruptcy Is Best
Bankruptcy exists so as to help those individuals who have no
other options. If you find yourself in a situation where you can
find no other alternative and are on the verge of losing
everything that you have, you might want to consider looking
into a bankruptcy filing.
Consult an attorney in your area and see what advice they can
offer you, and learn what your options might be to help protect
some of your property and take care of your problems once and
for all.
You may freely reprint this article provided the following
author's biography (including the live URL link) remains intact:
About the author:
John Mussi is the founder of Direct Online Loans who help
homeowners find the best available loans via the www.directonlineloans.
co.uk website.
John Mussi
bankruptcy record
Bankruptcy laws give debtors a way to resolve debt by dividing their assets among their various creditors and in some cases will allow debtors to be freed of outstanding debts that cannot be paid, even after the division of assets. For individuals who find themselves unable to pay their debts, bankruptcy can be a viable option. As a debtor, you are entitled to file for bankruptcy. There have been recent changes to bankruptcy laws that may affect your ability to discharge your debts without credit counseling, but individuals who have found themselves unable to pay their debts can still file
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Chapter 7The potential chapter 7 debtor should understand that a straight bankruptcy case does not involve the filing of a plan of repayment as in chapter 13, but rather envisions the bankruptcy trustee's gathering and sale of the debtor's nonexempt assets, from which holders of claims (creditors) will receive distributions in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, under chapter 7, the individual debtor is permitted to retain certain "exempt" property. The debtor's remaining assets are liquidated by
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