Fraud on Finance

How Much Debt Do I Need to Have to File Bankruptcy?

Many people who could benefit from filing bankruptcy put off doing so because they aren’t sure if it’s a wise choice or they’re eligible. They may wonder if they have too much or not enough debt to make filing worthwhile. A relatively small amount of debt could lead to bankruptcy if you don’t have the income to cover minimum payments, and having a healthy income doesn’t mean that you can’t get into debt over your head. No matter the dollar amount you’re dealing with, if your bills have become unmanageable, it may be a good idea to begin researching bankruptcy.

Chapter 7

When we meet, we’ll discuss the basics of your situation and then we’ll conduct the means test to help us decide which chapter of bankruptcy might be the best fit for you. This calculation looks at your income, living expenses, debt, and assets to come up with your disposable income. If you do not have enough disposable income to pay off your debt, you pass the test and are eligible for a Chapter 7. This type of bankruptcy discharges most types of debts, specifically unsecured debts, and there are no limits on the amount that may be discharged. You may only file a Chapter 7 once every eight years, so before filing, you’ll want to make sure it’s the optimal time for your situation. If you’re drowning in your debt, even if it’s not much, a Chapter 7 might give you the new start you need.

Chapter 13

When people do not pass the Means Test, they may worry that they are stuck with their debt and its consequences forever. Fortunately, there are other options, such as Chapter 13 bankruptcy. Rather than an immediate discharge of unsecured debts, a Chapter 13 consists of a reduced repayment plan that lasts for three to five years. The plan will be based upon your disposable income, and once you’ve made your payments during this time, your remaining debt will be forgiven. This could result in you paying pennies on the dollar of your original debt.

As with a Chapter 7, there is no minimum amount of debt you must have to file a Chapter 13, but there are maximum limits set. You may not have more than $360,000 in unsecured debts or $1,081,000 in secured debt. Even if you owe more than those amounts, there are several other options available, and I’ll work with you to find the right solution.

Don’t Go It Alone

Each decision related to your finances is important, and it can be overwhelming trying to decide what to do on your own. If you’re uncertain about the best way to handle your debt, I can help. You may just need to make some budgeting adjustments and work with your creditors for more manageable payment plans, or it may be time to take advantage of the many benefits of bankruptcy. Either way, now is the time to take control of your finances and make a new start.

Tips on Finding a Bankruptcy Lawyer

Initially, it is quite hard to declare yourself bankrupt, and filing a bankruptcy is a much more complicated thing to do. You should think careful before filing this kind of record, since it will last for 7-10 years on ones record. This is one simple reason of a bankruptcy lawyer exist, to help you filing all necessary legal paperwork while there are other benefits that you can have from a bankruptcy lawyer service. Before you decide to retain a bankruptcy lawyer you must have some previous referral to have further insight about them.

This way you would know the competency of the lawyer that you need to handle your case. You could look some information from your family and friends who already had been in bankruptcy condition. If you think it’s quite embarrassing for you to share, do not hesitate to ask for some information to your state’s Attorney General Office as they will advise you for referral list of bankruptcy lawyers in your area.

This recommended lawyer should be able to give you a lot of alternative ways to handle your case. You can ask their advice at their first consultation which usually comes free. And during this term, you should be putting out all of your real financial condition in order for them to give a lot of expert legal methods on wiping out your debts. They also will help you dealing with creditors for your debt repayment strategies.

So make sure that you choose an experienced and skilled lawyer who has dealt with lots of bankruptcy case. You also have to consider the level comfort that you need from your lawyer. A good lawyer will explain and respond well on every single questions and details that you need to know and to do subsequently. So you should provide your bankruptcy lawyer of all debt lists that you borne. A credible bankruptcy lawyer must also well aware with all new procedures and laws of bankruptcy, so you have access to legal advice and meet with required actions needed on time.

In order to choose a fair local standard fee, you can browse the bankruptcy lawyer fee online and have rates confirmation from your local association near you. Those free initial consultant lawyer also will offers a competitive rate for their fees, but don’t compromising quality and experience though. It might cost you a little bit but you will have a healthy financial back on track in the end.

Free Money Saving Auto and Home Loan Tips

Free Auto Loan Tips

The following tips should help increase your chances of getting a car loan at a better rate.

Tip #1 – If you just started a job (recently graduated from college) then wait 6 months to apply for your car loan.

Tip #2 – If you have currently have bad credit then repair it before applying for an auto loan.

Tip #3 – If you’ve recently moved then wait until you have lived at your new address for 6 months before applying for a loan.

Tips #4 – If you have had a previous auto loan or home mortgage on your credit report then your chances for a new loan improve greatly.

Tip #5 – Try and pay off all of your credit card balances or at least lower them. You may want to consider finding the best debt consolidation loans to erase all of your credit card bills. The bottom line is don’t keep a high debt load or credit card balances.

Tip #6 – You must have a stable job or occupation.

Tip #7 – Other examples of credit extended to you should appear on your credit report. Verify this with a quick and easy online credit report. Also avoid charge off’s on your credit report.

Tip #8 – If you’ve filed bankruptcy before then you should wait 3-4 years before trying to get an auto loan.

Free Home Loan Tips

Tip #1 – Make Bi-Monthly Payments: Instead of paying your mortgage with one monthly payment switch to paying half of your loan payment every 2 weeks. The savings comes from the 26 half payments you make which add up to 13 monthly payments versus the regular 12 payments you would normally make in a year. The end result is you save a large sum of money on the interest owed and you’ll own your home a lot sooner!

Tip #2 – Choose a 15 year mortgage instead of a 30 year mortgage: You’ll end up with a higher monthly payment but in the long run you also save tens of thousands of dollars in interest charges, especially if you shop for the best home loans you can afford.

Tip #3 – Mortgage Refinancing: Currently this is the most popular trend. You refinance your mortgage if you can get a rate that is at least one percentage point lower than your existing mortgage rate and plan to keep the new mortgage for several years or more.

Tip #4 – Buy down the rate: The seller or builder, or through innovative pricing, can help you buy down your mortgage rate for one, two, or three years.

Tip #5 – Consider an adjustable-rate mortgage (ARM): If you think you will be in your house for less then 5 years then perhaps you should consider an ARM. An adjustable-rate mortgage (ARM) starts with a considerably lower interest rate, but then adjusts every year. This type of loan moves a little bit of the risk away from the lender, and the lender rewards you with a lower rate. Usually these mortgages are capped to rise not more than two percent in any year, and not more than five or six percent for the life of the loan for your protection.

Mortgage Loan Tips

Finding the right mortgage loan when purchasing a house can be very hard and frustrating. Especially, if it is your first time of taking a loan. Buying a house and taking a mortgage loan on the house is a big step for you since it involves a lot of risk. You probably don’t know what to do or where to go. Do not allow other people take advantage of you ignorance. Take the time to learn everything there is to know about mortgage loans. Here are some mortgage loan tips to guide you on what to do.

The very first step you need to take is to shop around for lending companies offering mortgage loans. You can do research in the internet or personally talk to people who are experts in the field. Check out not only three but more than six lending companies and get estimates or quotes from each company to be able to compare. Then as you get to know each company inquire about their interest rates both in fixed and adjustable, fees and services being offered. With all the needed information at hand you can now compare one company to another. Then it would be easier for you to decide.

Never allow a company to encourage you to commit fraud by claiming that the loan is intended for business use when in fact it is for personal, family or household use. A loan that is based in wrong information will never get far nor prosper.

Get to know and understand everything about the loan you are taking. You have to know why you are paying it and know the different fees you are paying for.Every detail of the loan should be familiar to you and understood by you.

Be wary of prepayment penalties. Prepayment penalties are incurred when you make advance payments for your loans. The company will obligate you to pay the lending company six months worth of interest that you just paid in advance. So in the long run you still had to pay the interest even if you have made advance payment of the loan.

Quicksand loans should be avoided at all cost. This kind of loans contain combinations of short-term, high up front fees, high rates, balloon payments, exorbitant late fees and prepayment penalties. All these could swallow all your equity and ruin your financial position.

Review everything and in details before you sign any contract. You should know what every paragraph is saying. Go for lending institutions that offers the best deal and one you are most comfortable with.

Find out what is your credit report and check for any errors in the report. A good rating on credit report helps in the early approval of your loan.

You should have an idea on what mortgage plan will work best for you. What interest rate will be sustained by your current income? Take the time to study the advantages and disadvantages of the different mortgage loan types. Educating yourself will be an advantage for you. All these mortgage loan tips will hopefully help you make sound decision that will work best for your situation.

How to Get a 95% Home Loan for a Discharged Bankrupt

It is a widely held belief, that a discharged bankrupt can only apply for a home loan up to 80% of the value of the property, this is totally incorrect, there are lenders who will lend up to 95% of the value of the property, even if you have only been discharged for as little as one day.

You will need to be able to fund the cost of the LMI waiver fee, which at a borrowing level of 95% could be approximately 2% of the funds borrowed, this fee is charged in lieu of Lenders Mortgage Insurance, which is unavailable for borrowers who have been declared bankrupt.

So you would be wise to consider saving in the region of between 9% to 13% of the purchase price of the property, considering there may be transfer duty to pay as well.

Interest rates are an important consideration, they most certainly are not as low as those for people who do not have credit history problems, but the ability to switch to a lower rate is possible once 20% equity has been established in the property, subject to being discharged greater than two years.

What type of property can a discharged bankrupt buy?

As a discharged bankrupt you can buy an established dwelling to live in or as an investment property, newly completed dwellings or vacant land. You will be unable to build until you have enough equity to refinance to a lender who will approve your loan application for a total loan amount of 80% or less of the completed property’s value.

You will need to show solid repayment history for any property that you have rented, so renting via a property manager is a must, they will be able to provide the lender with a copy of your rental ledger to confirm that you have paid your rent on time.

The same applies for any credit facilities you may still have, or have obtained post bankruptcy, living by the mantra, “on time, every time” will put you in the best position for a home loan approval.

In essence, loans of this type are made available to people who have suffered a life changing event and who were unable to meet their financial commitments at that time, for many, these events were beyond their control. Lenders of this type take the opinion that having been in bankruptcy for three years and having re-established yourself via long-term employment and residential status you are sufficiently credit worthy again.

Bad Credit Car Loan Tips for Consumers

You have just received a response from an auto loan company that your application has been declined. According to the lending officer, your loan proposal has been rejected because of your bad credit history or low credit score. The lending company you submitted your car loan application to only accepts customers with good credit rating and obviously, you did not meet the lender’s criteria. What can you do?

Subprime Car Loans for People with Bad Credit

If your credit score is below average, then you fall into the subprime category. Does that mean you cannot get the car financing you need? Not at all! Many lending companies in the market do offer financing for the subprime market or consumers who are credit challenged. Even with bad credit, you can still get approved for a car loan but you need to find the right lender.

Do subprime car loans mean high rates and fees? Because of the greater risk involved, lenders may charge a little more on interest rate for this type of loan. But that does not mean you should settle for an unreasonably high rate or unfair terms. Even though you need to improve your personal credit score, you still deserve fair treatment.

Car Loan Tips for Consumers with Bad Credit

How can you get approved for a car loan if you have bad credit? More importantly, how can you find a car loan lender that offers a reasonable rate despite having bad credit? Consider the following tips:

Check out credit unions. It’s a good idea to check out your local credit unions for possible car loan financing programs. Credit unions are more likely to offer a much lower rate than what commercial lending companies offer even for consumers with bad credit history.

Check your credit report. If you’ve been denied financing because of your credit rating, you should immediately check your credit report. Order your report from each of the three major credit bureaus – Trans Union, Experian and Equifax.

See if there are errors or misinformation which could have caused your score to drop even more. If you do find errors, send a letter to the bureau that issued your report and request for corrections. Once the errors have been corrected, you might be able to raise your credit score significantly.

Watch out for predatory car dealers. Some car dealers that offer financing deals are after only one thing – making sales and making profit. You might be offered an attractive deal and easy approval despite your bad credit but once you signed up the contract, you might be informed that you did not qualify for the low rate because your credit score. You might end up paying an expensive loan because you’ve been ripped off by an unscrupulous car dealer.

Shop around and compare deals. In order to make sure that you’ve found a good deal, you should gather quotes from at least three to five lenders and compare the rates and fees. Use the internet to request for quotes for free. Use these quotes to narrow down your choices. Afterwards, be prepared to examine the background, terms and conditions of each prospective car loan lender.

Lawsuit Loan Services

Sometimes there comes a situation when you find yourself a plaintiff in a personal injury case. This may because you might have faced discrimination at the workplace, or fired from a job for an unjust reason. Other reasons can include your having to face the consequences of a medical malpractice or even injuries because of an automobile accident.

To compound this problem, you do not have the necessary finances to take your case to court and even if you do manage to find the services of a lawyer, you may not have sufficient funds to enable him to prepare a watertight case. With no solution in sight, you agree to an out-of-court settlement, which would mean accepting for compensation a lesser amount than what you would have got had you taken the case to its natural conclusion in a court of law. To solve this problem, you can seek Lawsuit Loan Services to bail you out of the difficult situation.

There are a handful of Lawsuit Loan Service companies who advance you the cash to fight your legal battles. Simply stated, they purchase a part of the settlement that you would get as a result of a court verdict. You can approach these companies with your case. They in turn will consider the facts, consult a lawyer to seek legal opinions to judge the merit of the case and the amount of compensation that can be expected. Based on this they extend their services, which include advancing you the amount to take legal action, and the amount to meet personal expenses while awaiting settlement. This can also include funds required for medical treatment, in case of an accident. Also, the funds can help the attorney to prepare a strong case in terms of finding witnesses and collecting depositions.”
Lawsuit Loans “A Lawsuit Loan, or pre-settlement funding, is the ideal option for people involved in personal injury suits who do not have the necessary finances to take their cases to court. It is not a loan in the traditional sense of the word, because the injured person has to pay back the amount only if he or she wins the case and gets a settlement verdict.

Typically, personal injury cases may involve any of the following: discrimination, malpractice (either medical or legal), injury due to accidents, etc. A person under these conditions may not have the necessary funds to fight the case for compensation. Lawsuit Loans come to the rescue of all such people. Also, the Lawsuit Loan does not require credit checks, monthly payments, notes, or any other security.

The injured person can contact any of the lawsuit funding companies for loans. The loans offered by these companies are non-recourse loans. . This means that the person does not have to pay back anything if he loses the case. Given the high risk involved, the financing companies charge a significantly high fee for the services provided. Usually, they charge about 10 to 15% of the settlement amount. Before issuing a loan, they would contact a lawyer to ensure the merit of the case and the amount of settlement expected. Based on the feedback, the companies offer the loans.

The fee for the loans can be a flat fee or a recurring fee. You can obtain loans from banks also. But it has generally been observed that banks do not prefer to sanction such loans, as they do not have the necessary skills to judge the merit of the case.

Also, you must keep in mind that the rules of ethics of the Bar Association prohibit a person from taking a loan from his attorney or lawyer. This is because a conflict of interest may result, and the injured person might be pressed into accepting a settlement that is less than what he could otherwise accept.

How to Recover From Filing For Bankruptcy

The Fastest Ways to Recover from a Bankruptcy

No one expects being in a financial bind (personally or business wise) that makes them have to file for bankruptcy. In the worse case scenario if you have to file for bankruptcy (whether it is chapter 7 or chapter 13) understand that it is not the end of the world. All you have to do is understand that there is a way to rebuild your finances back up to normal and eventually live life stress free again (at least in this situation).

Save, save, save!

The main key to recovering from a bankruptcy is beginning to save your money wisely. After a financial burden such as bankruptcy you will not only have to pay off your debt (which could include interest) in addition to daily living. Once you begin saving your money and budgeting correctly you will be able to pay off your debt while being able to pay current bills and other life necessities.

Re-adjust your lifestyle

This element goes hand in hand with the first step, which is to save your money. Although it may be a bit tough mentally to scale back on your lifestyle, at the end it will be all worth it. Maybe you will not be able to go out and splurge on entertainment events or eat your favorite food every single day. It will take some time to adjust and get back to. Don’t worry… in due time you will be able to get back to your normal lifestyle. When you do, be sure to reward yourself once you are back to where you are financially stable and comfortable.

Apply for a secured credit card when it is time

Once you get back to a place where you can begin rebuilding your credit, it is important to start off small. The time in which you can apply for a secured credit card line will vary depending on your situation. This time frame can be 6 months or 2 years. Just remember to not make the same mistakes you made before.

Keep a positive attitude

Although this is not the best situation to be in and it may be easier said than done, stay positive. In due time, everything will be taken care of and it will only hurt you more (mentally) if you keep reflecting on the negative more than the positives that will happen as you recover from bankruptcy.

Getting a Good Bankruptcy Lawyer

There is nothing worse than having to file for bankruptcy. Bankruptcy is a very serious matter which can destroy the lives of many people and render them completely helpless. Before moving forward with this article it is important to describe bankruptcy and what it entails. Bankruptcy is also referred to as insolvency and is a legal state of being unable to repay debts owed to creditors.

Bankruptcy is applicable to both individuals and organizations. When bankruptcy happens to an organization, many creditors will normally file a bankruptcy petition in an effort to recover a portion of the money owed to them by the company or organization. This results in the organization seeking the services of a bankruptcy lawyer. A bankruptcy lawyer is someone who is conversant with bankruptcy law and will be able to defend you against the petition filed by the creditors. Bankruptcy lawyers are quite expensive and you will have to prove to them that you can pay them before securing their services.

Tips on how to hire a good bankruptcy lawyer?
The increase in bankruptcy petitions has resulted in an increase in demand for bankruptcy lawyers. This has led to an increase in the number of lawyers who are looking to make a quick buck at the expense of debtors who do not know any better, while offering very poor legal services in return. It is important to ensure that the bankruptcy lawyer you have chosen is up to the task and will give you the required help you need throughout the entire process. Some of the tips you can use when trying to identify a good bankruptcy lawyer are given below.

Investigation: Many people often panic when they declare bankruptcy and will select the first bankruptcy lawyer that they come across. This is not a wise move because you need to conduct a thorough investigation. This investigation should involve a thorough background check of the lawyer and should be done before the bankruptcy claim is made. This will also give your lawyer enough time to prepare for the case.

Word of mouth: A good bankruptcy lawyer will be well-known, especially in the business world, so it is very important to ask around and gather information about companies that have filed for bankruptcy and who represented them. It is also important to know the outcome of the cases. You are bound to get information that is helpful. Experience should be your main focus in the search for a good lawyer who can adequately represent you.

The courts: A bankruptcy court is a good source about bankruptcy lawyers. You should always take some time off and visit a bankruptcy court so as to see and experience a bankruptcy case. This will give you an idea of how a good lawyer should conduct the trial when defending someone.

The panel of lawyers: The best place to find out about the best and most respected lawyers is by visiting the bankruptcy lawyer’s panel. The reputations of these lawyers precede them and you are likely to find a very good lawyer who deals with bankruptcy issues and is experienced in the field. Visiting the office of the lawyer may also give an indication about the lawyer’s reputability.

Attending free consultation sessions: Free consultation sessions are the platforms that make it possible for you to ask as many questions as possible about bankruptcy and where to find good lawyers. It is also the beginning of a good working relationship between you and the lawyers because you might get good contacts which will help you in the future. A bankruptcy lawyer will make the difference in the outcome of your case so you should ensure that the lawyer you choose is able to swing the final result in your favor.

How Soon Can I File Again?

If you’ve been struggling with debt for a while, finally deciding to file bankruptcy can offer some relief and hope. It’s important to be strategic with the timing of filing your case in order to maximize the benefits and decrease the risk of needing to file again. Life can be unpredictable, even with the best planning, so sometimes people do need to file bankruptcy more than once in their lifetime. Bankruptcy law does allow for this, with some restrictions and guidelines.

Exploring New Options

If life circumstances have led you to more debt and you need to file an additional bankruptcy, we’ll need to get the facts of your previous case and current situation. If you previously filed a Chapter 7 and need to file a 7 again, you’ll need to wait eight years to do so. If you filed a Chapter 7 and now want to file a 13, you’ll need to wait four years.

After your first Chapter 13, you’ll need to wait two years to file a 13 again, but we’ll need to look closer at your circumstances before moving forward. If it’s been two to six years since your first 13, the trustee has the option of not approving another 13. If they do not approve, you may be able to file a Chapter 7, as long as you’ve been keeping up with your Chapter 13 payment plan and have either paid off all of your unsecured debt or 70% of that debt if you can show you’ve been making a reasonable effort. If these conditions have not been met, you’ll need to wait six years before filing again.

Additional Information

Even if most of your debt can’t be included in your new Chapter 13 after a 7, this still may be a wise choice. This situation is classified as a Chapter 20 bankruptcy, and the biggest benefit is that the automatic stay will give you some time to get your finances in order. We can discuss this option to determine if the benefits outweigh the negative consequences.

A bankruptcy case can be dismissed for a variety of reasons, which can be frustrating. If this happens, you will most likely need to wait 180 days to refile, but you may be able to file again right away. We can work together on this; if your discharge was denied or your case was dismissed and nothing has changed in your situation, it’s unlikely the court will approve a new case.

Let’s Work Together

When you file bankruptcy, you expect your finances to improve and never expect that you’ll need to file again. However, unexpected things can happen, and it can be disappointing and frustrating to see your debt begin to grow again. If this happens to you, call me right away so that we can come up with a plan to get you back on track.

Scroll To Top