Refinancing After Bankruptcy


Refinancing After Bankruptcy

Articles: (Updated Frquently)

Declaring Personal Bankruptcy

By: Alan Jason Smith

If you’re drowning in debt and creditors have your phone ringing off the hook, personal bankruptcy might seem the only way out. Indeed, for people whose debts dwarf their ability to pay, declaring bankruptcy can be a fast way to gain a fresh financial start.

There are two types of bankruptcy petitions you can file: Chapter 7 and Chapter 13. Each of these have a different purpose and different set of circumstances attached.

Chapter 7 bankruptcy involves the seizing and liquidation of your assets. This includes real estate, stocks, bonds and valuable property. Once liquidated, the proceeds are used to pay off the various creditors you owe. Property exempt from Chapter 7 bankruptcy includes vehicles worth less than $1500, most household furnishings and goods and clothing. You are also entitled to retain $18,450 worth of equity in your home.

The goal here is to leave you with enough to make a fresh start after bankruptcy is declared so you don’t end up completely destitute. At this point, you are discharged of all remaining debts. Once bankruptcy is filed, your creditors must cease from any lawsuits, wage garnishing, letters or telephone calls compelling you to pay.

There are some debts that cannot be discharged by filing for bankruptcy. These include current or back-owed child support and alimony payments, most student loans, recent tax bills or debts to creditors toward whom you’ve exhibited dishonesty in the past.

Within a relatively short time period after filing for Chapter 7 bankruptcy, your debts will be discharged and you will have a clean financial slate. However, filing for Chapter 7 does not always guarantee freedom from your debts. If a judge deems you fit to pay, you may be denied Chapter 7 bankruptcy and forced to file for Chapter 13.

Chapter 13 bankruptcy’s goal is not to discharge you of your debts but to reorganize them and develop a court-ordered repayment schedule. A person who files for Chapter 13 bankruptcy typically has three to five years to pay off all debts to creditors. Chapter 13 bankruptcy is preferable for people who want to retain ownership of their property and assets, and/or have a reliable and prolonged source of income.

Regardless of which type of bankruptcy you file, you must consider your co-debtors carefully before making the decision to file for bankruptcy. If there are people who have co-signed for loans but who are not declaring bankruptcy jointly with you, if your debts are discharged, your creditors will go after your co-debtors to collect your portion of the debt.

You may be afraid that declaring bankruptcy will permanently ruin your credit rating, but this is not true. If you are already in a position to considering bankruptcy, chances are that you credit rating is already so poor that declaring bankruptcy could not make it any worse. A fresh financial start and the opportunity to rebuild credit from the ground up may even improve your credit rating in the long term.

Whatever decision you make regarding personal bankruptcy, it is never a bad idea to consult with a lawyer, financial advisor or credit counselor before proceeding. These professionals can advise you on the most prudent course of action to protect the integrity of your financial future.

About the Author: Alan Jason Smith is the owner of http://www.blackbankruptcy.com which is a great place to find bankruptcy links, resources and articles. For more information go to: http://www.blackbankruptcy.com

Source: www.isnare.com

Keywords: bankruptcy credit rating, bankruptcy might seem, hook personal bankruptcy, declaring bankruptcy, bankruptcy, personal bankruptcy, bankruptcy’s, that declaring bankruptcy, http//wwwblackbankruptcycom

Bankruptcy News: (Updated Frquently)

Watch the latest videos on YouTube.com

Helpful Links:

Refinancing
When is the best time to refinance? A: The traditional answer to that question is when interest rates fall 2 percent below your current mortgage interest rate. ... Refinancing - Q & A Back Next ... after bankruptcy? A: Refinancing may be prudent but could be difficult after a bankruptcy. If you're considering bankruptcy ...

Home Equity and Refinancing FAQ
FAQ on refinancing. ... Can you refinance after bankruptcy? Popularity: 307. How does a home equity line of credit work? ... the judge approving a mortgage refinancing after a bankruptcy? Popularity: 162 ...

Refinancing mortgage after bankruptcy
Refinancing mortgage after bankruptcy can: Reduce your monthly mortgage payments, and put more money in your pocket each month. ... When you refinance your mortgage after bankruptcy, you're actually replacing it with ... you filed for bankruptcy. For refinancing mortgage after bankruptcy Complete our simple ...

Refinancing mortgage bankruptcy
Refinancing mortgage bankruptcy offers a convenient way to comparison shop for a loan in a secure, pressure-free environment. ... your monthly payment significantly. Refinancing mortgage after bankruptcy can reduce your monthly mortgage ... pros and cons of refinancing your mortgage after bankruptcy. You simply ...

Refinancing a mortgage after a bankruptcy
Dr. Don writes about refinancing your mortgage after you've declared bankruptcy. ... CFA â€¢ Bankrate.com. Refinancing after a bankruptcy. Dear Dr ... I declared bankruptcy in 1996. It was paid off in 1998 ...

Question: Can I refinance after bankruptcy?
... Learn about Real Estate " Financing " Refinancing " Question: Can I refinance after bankruptcy ... but could be difficult after a bankruptcy. If you're considering bankruptcy, you may ...

Refinancing after a bankruptcy
Dr. Don advises a reader who wants to get a home equity loan to pay off high interest debts a couple years after getting a bankruptcy. ... Of course, that's also the downside to refinancing your loans with secured debt ... I'm a little concerned that 2.5 years after your bankruptcy discharge you are in a position where ...

Refinancing
Refinancing - Q & A. Q: When is the best time to refinance? A: The traditional answer to that question is when interest rates fall 2 percent below your current mortgage interest rate. ... after bankruptcy? A: Refinancing may be prudent but could be difficult after a bankruptcy. If you're considering bankruptcy ...

Additional Links >>

Click here to add your link to our directory >>

online-bankruptcy-lawyer.com