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Bankruptcy Law - An Outline
By: Joseph Then
Bankruptcy law is the governing laws that say what happens in the bankruptcy process, who can file what type of bankruptcy and every other detail involved in filing bankruptcy. It is important that you are serious when filing bankruptcy and that you make sure your completely understand the process.
An Establishment of Bankruptcy Law
The United Bankruptcy Code is the law that regulates and establishes bankruptcy. This is a federal law and bankruptcy is held in federal bankruptcy courts. Federal bankruptcy judges hear bankruptcy cases.
States get involved on some level with the process. Each state has one or more bankruptcy courts to hear resident cases. Additionally, exemptions are established under federal law, but states also have exemptions that can be chosen instead of the federal exemptions.
Variations of Bankruptcy Law
There are many variances in the bankruptcy laws that can be confusing. Here are some top things you should know about:
Exemptions - Exemptions are assets that are protected. You will have a federal list and a state list. You have to choose one or the other. The idea is to go with the one that protects the most of your assets.
Different types of bankruptcy - There are many different types of bankruptcy. Individuals usually either file Chapter 7 or Chapter 13. In any case it is important to understand the difference. You also have to make sure that you qualify for the chosen type under the new laws.
Alternatives - Nobody really wants a bankruptcy filed. It will ruin your credit and possible cause you to lose assets. Creditors lose money and the government racks up costs during the process, too. In the end everyone benefits more from an alternative to bankruptcy. Many times during the process alternatives are explored to see if they would make more sense then filing bankruptcy.
The New Bankruptcy Laws
New laws were designed to help reduce the number of bankruptcies being filed and to help prevent abuse of the system. These new laws made several changes.
One of the best known changes is the new requirement of credit counseling. This is done two times during the process. The first time is to help a person make sure they should file bankruptcy and that an alternative is not a better solution. The second session helps the person to be a better consumer and learn about being responsible with credit.
Another major change is the limitation on who can file Chapter 7. This limitation makes a Chapter 7 based on income. Those making too much have to file a Chapter 13.
Loans to Ease Your Bankruptcy Worries - How Hard Are They to Obtain?
By: Tim Wilson
You need to rebuild your credit profile. Be sure all payments on loans that were not discharged in your bankruptcy are paid on time. This is vital. Car and home loans usually are left your own even after a bankruptcy so they are the logical place to begin. Making these payments on time will help you to re-establish credit.
It is also important to take the time and check your credit record before applying for any loan. Especially is the case after declaring bankruptcy. You want to make sure there are no mistakes in your report. An error against you could be the deciding factor that makes an application for a loan turned down. Remember it is a very negative report on your credit the filing of bankruptcy so you want all errors gone.
Some of the more typical post bankruptcy loans obtained are car, home equity, secured, or student loans. It is very likely that you will fall into the sub-prime category with the lenders so expect very, very high interest rates.
A car loan is a very smart way to rebuilding credit. You may be able to apply for such a loan as soon as the day after the closing on your bankruptcy case. How can you increase your odds of successfully obtaining the loan? Plan your purchase in advance and plan it carefully. Determine exactly what monthly payments you can afford. Find out the rates and terms on the loans you can get and plan the vehicle you are going to buy on the loan you can secure rather than the other way around.
Since it is so difficult to secure a loan while in the process or having just completed a Bankruptcy, an alternative available that I highly recommend is to use the service of one of the companies that find you multiple lenders. Their whole job is you finding a loan. If they don't find you a loan, they don't make their commission so they do all they can to get you a loan.
You may also want to work with an internet online car loan lender. They will help you achieve "pre-approval" status because as soon as you are approved, they send you a check.
After a year of making on time payments you should check into refinancing your loan. You should be able to secure a lower rate at this point. One other loan you can obtain, that is almost risk free for lenders so easier to obtain, is a home equity loan. This is secured by your home so the banks or lenders are more willing. However I urge you if you do go for this loan make every payment on time or the lender will foreclose on your property.
It usually takes someone around two years to rebuild their credit after a bankruptcy enough to secure a personal loan. Beware of the scams. Do not be fooled by those out there wanting to take advantage of your poor credit. Make sure a loan is a good investment before signing it.
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» Choosing a Bankruptcy Lawyer
» Bankruptcy Information Explained
» Bankruptcy Repair Strategy That Will Improve Your Credit Score
» Bankruptcy Information: Last Way of Freedom from Debts
» Bankruptcy Help is Only a Click and a Phone Call Away
» How To Asses Bankruptcy Petition Cost
» Finding Bankruptcy Assistance Online
» How Bankruptcy Works
» Avoid Bankruptcy - What Can I Do To Avoid Bankruptcy?
» The Cheapest Way To Avoid Bankruptcy
» The Need for Bankruptcy Lawyers
» The New Bankruptcy Law And Some Key Changes
» Bankruptcy Lawyers
» Enter Bankruptcy Protection The Right Way
» What Bankruptcy Information You Need To Know
» Alternatives to Bankruptcy
» Avoiding Debt and Bankruptcy
» Should I Hire a Debt Settlement Lawyer?
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