One essential part of recovering from a personal bankruptcy filing is making sure you regularly check your credit report to verify that all your finance-rebuilding efforts are being duly noted by the proper authorities and are helping to improve your profile as a potential borrower.
Luckily, the Federal Trade Commission has, since 2004, been in the process of evaluating and improving the accuracy of the information that appears in credit reports. Here’s the latest.
In the next few months, the FTC has announced, it will undertake a project to determine the accuracy of credit reports. The plan works like this:
The overall goal, it seems, is to determine what types of errors are likely to occur, both at the level of groups that report information (including credit card companies and lenders) and of the credit bureaus themselves. Ideally, this will permit the FTC to make any changes that might be necessary to streamline the credit reporting and scoring process.
What this means for you: In the next three years (the review of credit reports will end in 2014), consumers should have a better idea of what kinds of errors they should look for when reviewing their credit reports. Down the road further, such errors might occur less often.
Another important part of recovering from bankruptcy is taking a proactive approach to maintaining your finances. A recent post on WalletPop.com warns that bank fees connected to debit cards and/or checking accounts could go up in 2011.
How can you stay ahead of the game and make sure you aren’t hit with any unexpected fees? The blog recommends taking these steps:
Over the past few years I have filed many Chapter 7 bankruptcies for real estate contractors, real estate brokers, and mortgage brokers . A common question pertains to bankruptcy’s effect upon their state – issued contrqactor’s and brokers license. These people are afraid that because they file bankruptcy the State of Florida will not renew their professional license, or that they State may refuse to issue a new license they intend to pursue after their bankruptcy.
I have not heard from any of my bankruptcy clients that they have lost or been denied a contractors or brokers license because they filed bankruptcy. There is protection in the Bankruptcy Code. The Code prohibits any governmental unit from denying or revoking a license because of a prior bankruptcy. Therefore, real estate professionals, as well as other professionals such as lawyers or accounts, should not worry about a bankruptcy ruining their professional carrier and their ability to earn a living after a bankruptcy.
If you have too much debt, you are thinking about debt consolidation, and you have bad credit there are some moves that you can make to lighten the load. One of the best moves is a bad credit debt consolidation home equity loan.
The idea is to make one payment for your debt instead of a lot of little payment. This would make paying your debt more manageable. There may be a reduction in your debt because of lower interests on equity loans. The debt consolidation industry has many variations of this loan package. For those with equity in their homes and bad credit it could be a light at the end of the tunnel. There are many loans advertized online, on T.V. and in the print media.
These loans have a great attraction and the equation works out for most. However, like many things you must look out for the pitfalls of such loans. If your home has some equity in it then it should workout for you.
This loan has the advantage of carrying a moderately low interest rate depending on how bad your credit is. These days they are running close to two digits, and this interest is tax-deductible. Many carry a term of 15 years on a fixed-rate loan. There is also an origination fee of about $80 or more. Then there is the cost of an appraisal and title insurance. Bad Credit Debt Consolidation Loans usually requires a homeowner to borrow against his home equity.
This kind of loan will not improve your credit score initially. However, in the long run it will if you continue to make payments on time. It will raise your credit score. Remember, with this type of bad credit loan your home is your collateral. If you default, you run the risks of losing your home. Bad Credit Debt Consolidation Home Equity Loans are just one option to think about when you find yourself falling behind on your payments.
Apparently, I get a lot of readers who want to learn about bankruptcy topics. Now, since this is a bankruptcy blog, that’s not a good thing in the broadest sense (since it reflects that we are in a Depression), but since I’m trying to educate everybody on the planet about Chapter 7, Chapter 13, Chapter 11, and Chapter 12, one person at a time, it may be a good thing that folks contemplating bankruptcy in Arizona (and elsewhere) can get a ground-zero look at how it really works.
Trust me, if somebody was going to crack my chest and install a stent, I’d be reading about it until my glasses fogged up! So I can understand that somebody thinking about a bankruptcy would, you know, want to read about it!
And I understand that somebody contemplating bankruptcy would want to find the best bankruptcy information they can, and track down the best bankruptcy resources to help them analyze their situations.
How do I know that I’m getting more readers? Well, there are a couple of ways. Today, however, I blundered into a site called wikio.com, and on that site there’s a little graph about…this blog!
As you can see from the graph, a lot more folks are reading about bankruptcy now than previously.
And since you can get your bankruptcy information a lot of different places, I appreciate it that you decided to visit with me until your glasses fogged up!
During the housing boom, many investment properties were purchased to increase income and build portfolios. Now, many of these properties are underwater and no longer producing income as tenants struggle to pay rents. If you’re an individual investor in a similar situation and you’re wondering what to do with your investment property portfolio, consider the benefit of what is called a “cramdown” of those mortgages under Chapter 11 of the Bankruptcy Code.
A cramdown of the mortgage pursuant to 11 U.S.C. §1322(b)(2) provides that a debtor may not modify the secured lender’s rights if the lender’s claim is “secured only by a security interest in real property that is the debtor’s principal residence.” Where a creditor takes an interest in real property that is not the debtor’s principal residence, such as property that will be used as income generating rental property, the anti-modification provision does not apply.
What this means is that you can “cramdown” the amount you owe on these investment property mortgages to the current market value. This will restructure the debt to an affordable level and allow the potential rental income to support this lower payment.
In a case of first impression, the Fifth Circuit, in Condor Insurance Limited v. Petroquest Resources, Inc. (In re Condor Insurance Limited),[1]held that foreign representatives in a chapter 15 proceeding can assert an avoidance action under foreign law in a United States bankruptcy court.[2] The case was initiated when a foreign insurance company’s creditors filed a winding up petition, which is similar to a U.S. chapter 7 proceeding, in Nevis, [3] a small Caribbean island that is part of the Federation of Saint Kitts and Nevis. The Nevis liquidators filed a chapter 15 bankruptcy proceeding in Mississippi and sought to recover the assets under Nevis avoidance law. [4] The Fifth Circuit held that section 1521(a)(7) allows a U.S. bankruptcy court to offer avoidance relief under foreign law.[5]
Once the court recognized the foreign proceeding as a foreign main proceeding, the foreign representatives had certain rights under chapter 15. Specifically, in the ancillary proceeding, the court could grant “‘any appropriate relief,’ including staying various aspects of the proceedings, suspending rights of transfer, providing for discovery, granting administrative powers to the foreign representatives and ‘granting any additional relief that may be available to a trustee . . . .’”[6] The foreign representatives, however, could not apply for relief using the Bankruptcy Code’s avoidance powers, which are explicitly excluded from available relief under section 1521(a)(7).[7] Generally, a foreign representative must initiate a plenary bankruptcy proceeding in the U.S. to receive the benefits of the U.S. avoidance powers.[8] The foreign representatives, however, could not file a petition for relief under chapter 7 or 11 because insurance companies are excluded from eligibility for U.S. bankruptcy. [9]
The Fifth Circuit relied on statutory interpretation and legislative intent to allow the foreign insurance company to use the avoidance powers available under foreign law. [10] First, the court noted that section 1521(a)(7) provides enumerated exceptions for the available relief and that no other language in the statute suggests further exceptions.[11] In the absence of explicit language excepting foreign representatives’ avoidance relief, the court deemed such relief available.[12] Second, under section 304, chapter 15’s predecessor,[13] the courts allowed the use of avoidance powers provided by foreign law.[14] Moreover, the court found its ruling consistent with a long-standing effort of Congress “to harmonize international bankruptcy proceedings for the benefit of American businesses operating abroad.”[15] Third, the court found that not applying avoidance relief provided for by foreign law would undermine the legislative intent to “provide effective mechanisms for dealing with cases of cross-border insolvency . . . .”[16] Finally, the court found it proper to apply foreign law in order to avoid unnecessary choice-of-law issues.[17]
Condor Insurance is significant because it establishes that a bankruptcy court has jurisdiction over an avoidance claim, arising under foreign law, in a chapter 15 case. This ruling broadens both the range of the subject matter in U.S. bankruptcy cases and the possible relief for foreign representatives in foreign bankruptcy proceedings. In addition, the ruling is especially significant for entities that cannot be debtors under chapter 7 or 11 including foreign insurance companies[18] because avoidance powers would otherwise be unavailable to them in the U.S. Furthermore, this decision has further solidified the purpose of chapter 15, which is the facilitation of a fair and efficient insolvency administration among U.S. and foreign countries.
[1] 601 F.3d 319 (5th Cir. 2010).
[2] Id. at 329.
[3] Id. at 320.
[4] Id.
[5] Id. at 329.
[6] Id. at 322 (citing 11 U.S.C. § 1521(a)(7) (2006)).
[7] 11 U.S.C. § 1521(a)(7).
[8] See id.; 11 U.S.C. § 1523(a) (2006).
[9] 11 U.S.C. § 109(b)(3)(A) (2006).
[10] See generally, In re Condor Ins. Ltd., 601 F.3d at 329.
[11] See id. at 324.
[12] Id.
[13] See 8 Collier on Bankruptcy ¶ 1521.LH (Alan N. Resnick & Henry J. Sommer eds., 16th ed. 2010).
[14] See In re Metzeler, 78 B.R. 674, 677–78 (Bankr. S.D.N.Y. 1987).
[15] In re Condor Ins. Ltd., 601 F.3d at 322.
[16] 11 U.S.C. § 1501(a) (2006).
[17] In re Condor Ins. Ltd., 601 F.3d at 327.
[18] 11 U.S.C. § 109(b)(3)(A).
Married couples facing tough financial decisions must also face eachother. Here in California, we are in what is called a community property state. That means that income earned during marriage and debts incurred during marriage are part of the marriage community. In contemplating bankruptcy, couples must know that the act of filing a bankruptcy case creates an estate for the purposes of liquidation under Chapter 7, or reorganization under Chatpers 13 or 11.
The bankruptcy estate consists of all the assets and debts of that estate. So, your spouse’s income, expenses and debts will come into the bankruptcy case even if they do not sign the bankruptcy papers. The bad news is that you’re in this together. The good news is that you can also rebuild your credit quicker after bankruptcy.
Depending upon how the assets of your community estate are set up, will depend on how you should best proceed in bankruptcy. So, talk to your spouse first about your finances and set a goal for yourselves. Once you’re teamed up and have your goal in mind, consult with your tax professional, financial planner and your local bankruptcy lawyer to determine which direction is best for you. There are many solutions to your current situation and the best strategy is to stay united and enlist help from several professional resources. Most professionals will consult with you for free, so take their advice and then make your decision from a well informed position.
A bad credit loan with collateral is a loan that is guaranteed by something of value that you own. You will forfeit the asset to the lender if the terms of the loan are defaulted. These loans are not as risky for lenders and are the easiest bad credit loans to get. It is important that you know what you are getting into before you sign bad credit loans with collateral.
To find out how much a lender will loan a bad credit borrower with collateral the follow are considered:
These issues will also determine the interest rate that is charged, how much time given to pay back the loan, and any additional cost.
Those that are thinking about purchasing a home and they are in a bad credit situation, should consider the following advice before they look for a bad credit home loan:
There are many collateral loans for people with bad credit on the market. These loans will usually have high interest rates and only use them when necessary. Many lenders will use various name for them however the formula remains the same: if you do not repay the loan to terms you will lose your collateral.