If you have recently experienced a bankruptcy discharge, you may be asking What happens after bankruptcy if I lost my car? This is a very valid question for some who have recently had the misfortune of having to file bankruptcy.
There are times when no matter what you try to do you have no other option but to include your vehicle loan in the bankruptcy which may leave you without a car.
There may be a couple reasons you may have to include the car in your bankruptcy. One may be that the payments are simply too expensive for you to keep up with each month. Another reason may be that you have fallen too far behind on the loan payments and the only way out is to discharge the vehicle with the balance of the bankruptcy.
Now you find yourself asking, What happens after bankruptcy if I lost my car? And fortunately the answer is to secure a bankruptcy car loan for a different vehicle. Some resources will tell you that this is simply not possible but that is not always the case.
There are some car dealerships and auto brokers who have special finance departments that will work with you and your situation to help you find financing for a new vehicle.
The first place to begin is on the Internet, research local dealerships and car brokers in your area. Make a short list of the name, address and phone number of a few of these places. Call and ask to speak with the special finance department. If the establishment has one, they will put you through to a salesperson that could possibly help you.
Take note as to the character of the person you speak with in the special finance department. Notice if you feel comfortable speaking with them or if you feel that you are an inconvenience to them. This can be used as a great indicator of the type of service you may receive throughout the transaction.
You deserve to be treated with the same respect as someone who has a perfect credit score and if you do not feel this, you have a choice to move on to the next resource on your list.
Once you have found someone you feel understands and will treat you with respect, ask what paperwork you would need to bring in to have them pre-qualify you for an auto loan. Bring these items into the office and allow the salesperson to begin looking for a vehicle that will suit your needs.
Showing posts with label Bankruptcy. Show all posts
Showing posts with label Bankruptcy. Show all posts
Wednesday, August 15, 2012
Thursday, August 9, 2012
What Traits To Look For In A Pasadena Bankruptcy Attorney
Filing for bankruptcy is a very difficult and complicated process. The person or business filing has to be sure that filing for bankruptcy is on their or their businesses best of interest. Consequently, there is no room to make mistakes, even small ones. The slightest error can weaken the client's bankruptcy case. Below is a guide to help individuals and businesses make the best possible choice when hiring the best Pasadena bankruptcy attorney.
Look for a Pasadena Bankruptcy Attorney who Specializes
The best Pasadena bankruptcy attorney for the job is one who specializes in that area of law. They will have expertise that can be learned only through years of practicing bankruptcy law.
When a debtor is searching for a lawyer, a long list of bankruptcy litigators and law firms will emerge. It is always a good idea to look for reputation first, and ask questions such as are they reliable and are they respected in the legal community. A Pasadena bankruptcy attorney's website will usually have client testimonials outlining their experience with them. These are always helpful to get a feel for their level of professionalism, and how empathetic they are to the overwhelming stress of having to deal with bankruptcy.
A reputable Pasadena bankruptcy attorney knows all the ins and outs of the bankruptcy laws in California. They know what documents to file, when they have to be filed, what information to include, and what paperwork is not necessary. They also know how to streamline the process because they have done it so many times.
As well, a lawyer specializing in bankruptcy law in Pasadena knows how to explain bankruptcy law in such a way that their clients will understand. They know how difficult legal terminology is for regular every day people. They can explain in detail, the process, alternatives, and ramifications of filing for bankruptcy for individuals, businesses and corporations. Another specialty of a Pasadena bankruptcy attorney is that they know what to do in a crisis situation. Their knowledge is in-depth and they know what questions governing authorities want answered while filing bankruptcy documents
Go to the California Bar Association Website.
The bar association website for the state of California, has a listing of all lawyers practicing bankruptcy law within the state. It also sometimes lists reviews about the litigator's successes and other aspects of their professional careers. A Pasadena bankruptcy attorney is not just a legal eagle. They are also act as the debtor's advocate who guides them through the bankruptcy process, meetings, and paperwork and helps them fulfil their legal obligations imposed during the bankruptcy.
The paperwork and steps involved in filing for bankruptcy are very particular. Without a Pasadena bankruptcy attorney, debtors can run the risk of making a grave error. For example, a debtor could unknowingly perform an action that constitutes fraud such as transferring assets in close proximity to filing for bankruptcy. This would be considered fraudulent, making the transaction void.
When looking for a Pasadena bankruptcy attorney, it is very important to find one that is well respected and experienced. Choosing the right lawyer is a major step to get out of a stressful financial situation.
Look for a Pasadena Bankruptcy Attorney who Specializes
The best Pasadena bankruptcy attorney for the job is one who specializes in that area of law. They will have expertise that can be learned only through years of practicing bankruptcy law.
When a debtor is searching for a lawyer, a long list of bankruptcy litigators and law firms will emerge. It is always a good idea to look for reputation first, and ask questions such as are they reliable and are they respected in the legal community. A Pasadena bankruptcy attorney's website will usually have client testimonials outlining their experience with them. These are always helpful to get a feel for their level of professionalism, and how empathetic they are to the overwhelming stress of having to deal with bankruptcy.
A reputable Pasadena bankruptcy attorney knows all the ins and outs of the bankruptcy laws in California. They know what documents to file, when they have to be filed, what information to include, and what paperwork is not necessary. They also know how to streamline the process because they have done it so many times.
As well, a lawyer specializing in bankruptcy law in Pasadena knows how to explain bankruptcy law in such a way that their clients will understand. They know how difficult legal terminology is for regular every day people. They can explain in detail, the process, alternatives, and ramifications of filing for bankruptcy for individuals, businesses and corporations. Another specialty of a Pasadena bankruptcy attorney is that they know what to do in a crisis situation. Their knowledge is in-depth and they know what questions governing authorities want answered while filing bankruptcy documents
Go to the California Bar Association Website.
The bar association website for the state of California, has a listing of all lawyers practicing bankruptcy law within the state. It also sometimes lists reviews about the litigator's successes and other aspects of their professional careers. A Pasadena bankruptcy attorney is not just a legal eagle. They are also act as the debtor's advocate who guides them through the bankruptcy process, meetings, and paperwork and helps them fulfil their legal obligations imposed during the bankruptcy.
The paperwork and steps involved in filing for bankruptcy are very particular. Without a Pasadena bankruptcy attorney, debtors can run the risk of making a grave error. For example, a debtor could unknowingly perform an action that constitutes fraud such as transferring assets in close proximity to filing for bankruptcy. This would be considered fraudulent, making the transaction void.
When looking for a Pasadena bankruptcy attorney, it is very important to find one that is well respected and experienced. Choosing the right lawyer is a major step to get out of a stressful financial situation.
Chapter 13 Bankruptcy Or Debt Settlement: Which Is The Best To Alleviate Debt?
There was a time when failure to repay debts meant creditors could take their debtor to court, and seize what assets they had left, leaving them bankruptcy. Today, debtors can choose how to rid themselves of insurmountable debts. But whether Chapter 13 bankruptcy or debt settlement is the best option depends on the situation.
There is no doubt that the pressure created by mounting debts can be crippling, and at a certain stage something is going to break. For all debtors, the issue is how to manage removing debts they simply cannot pay in full. In some cases, choosing Chapter 13 seems the right move, but the consequences can severe.
The alternative is to agree a debt settlement program with creditors, so that some of the debt is paid. But this can be costly in the long run and is never final until the last payment is made. So which is the best choice? Understanding each option is the key.
Understanding Debt Settlement
There is an idea that, whether opting for Chapter 13 bankruptcy or debt settlement, clearing debts without repaying them in full is a cheap way out. In fact, a settlement ensures both sides of the table gain and lose something.
Settling debts involves some tough negotiations in order to reach an agreement with a creditor to pay a certain percentage of an existing debt. It might be 65% of the debt, which is a welcome reduction, but with a very good negotiator, it could fall to 30%. This is quite different to choosing Chapter 13, which might see 100% written off without payment.
However, while a debt settlement program does require some money to be paid, the key advantage is that credit is only affected for 2 years by this measure, whereas Chapter 13 rulings stick to a credit report for a decade.
Understanding Chapter 13 Bankruptcy
Bankruptcy is often seen as the only way to escape crippling debts, if they cannot be repaid in full. But the ability to opt for Chapter 13 bankruptcy or debt settlement means the strict consequences do not have to be faced. Still, Chapter 13 of the Bankruptcy Code offers its share of positives as well as negatives.
This specific type of bankruptcy case is fast becoming a preference replacing Chapter 7. This is because Chapter 7 was like a surrender, claiming an inability to pay anything and having the stigma remain for decades. Choosing Chapter 13 means a more cooperative approach is taken.
The Chapter provides a means test to calculate what percentage of the debt can be repaid. Perhaps 100% of the debt is written off, but more often than not, 40% or 50% is. So, some money is repaid. It mirrors a debt settlement program, but the credit report still carries the reference to bankruptcy.
Identifying The Best Option
So, when considering whether Chapter 13 bankruptcy or debt settlement is the best option, how can a decision be reached? The key to that is the specific factors in your own situation, and applying the terms of both to them. This way the best outcome can be identified fairly quickly.
Bear in mind that individuals have to apply for bankruptcy, and not everyone is successful. The first step is to compare your income over the previous 6 months with the average income in your state. If it is lower, success is probable. Also, remember that choosing Chapter 13 involves a means test, so your claim to have 100% debt written may not be upheld.
The debt settlement program, in contrast, does not take place in a courtroom, and so there is no legal bind to what terms are agreed. Hiring a professional debt settlement negotiator is necessary to seal the best deal, but despite the cost, it is worth considering to maintain debt credibility.
There is no doubt that the pressure created by mounting debts can be crippling, and at a certain stage something is going to break. For all debtors, the issue is how to manage removing debts they simply cannot pay in full. In some cases, choosing Chapter 13 seems the right move, but the consequences can severe.
The alternative is to agree a debt settlement program with creditors, so that some of the debt is paid. But this can be costly in the long run and is never final until the last payment is made. So which is the best choice? Understanding each option is the key.
Understanding Debt Settlement
There is an idea that, whether opting for Chapter 13 bankruptcy or debt settlement, clearing debts without repaying them in full is a cheap way out. In fact, a settlement ensures both sides of the table gain and lose something.
Settling debts involves some tough negotiations in order to reach an agreement with a creditor to pay a certain percentage of an existing debt. It might be 65% of the debt, which is a welcome reduction, but with a very good negotiator, it could fall to 30%. This is quite different to choosing Chapter 13, which might see 100% written off without payment.
However, while a debt settlement program does require some money to be paid, the key advantage is that credit is only affected for 2 years by this measure, whereas Chapter 13 rulings stick to a credit report for a decade.
Understanding Chapter 13 Bankruptcy
Bankruptcy is often seen as the only way to escape crippling debts, if they cannot be repaid in full. But the ability to opt for Chapter 13 bankruptcy or debt settlement means the strict consequences do not have to be faced. Still, Chapter 13 of the Bankruptcy Code offers its share of positives as well as negatives.
This specific type of bankruptcy case is fast becoming a preference replacing Chapter 7. This is because Chapter 7 was like a surrender, claiming an inability to pay anything and having the stigma remain for decades. Choosing Chapter 13 means a more cooperative approach is taken.
The Chapter provides a means test to calculate what percentage of the debt can be repaid. Perhaps 100% of the debt is written off, but more often than not, 40% or 50% is. So, some money is repaid. It mirrors a debt settlement program, but the credit report still carries the reference to bankruptcy.
Identifying The Best Option
So, when considering whether Chapter 13 bankruptcy or debt settlement is the best option, how can a decision be reached? The key to that is the specific factors in your own situation, and applying the terms of both to them. This way the best outcome can be identified fairly quickly.
Bear in mind that individuals have to apply for bankruptcy, and not everyone is successful. The first step is to compare your income over the previous 6 months with the average income in your state. If it is lower, success is probable. Also, remember that choosing Chapter 13 involves a means test, so your claim to have 100% debt written may not be upheld.
The debt settlement program, in contrast, does not take place in a courtroom, and so there is no legal bind to what terms are agreed. Hiring a professional debt settlement negotiator is necessary to seal the best deal, but despite the cost, it is worth considering to maintain debt credibility.
Tuesday, July 10, 2012
Va Home Loan Guidelines For Bankruptcy And Foreclosures
I receive numerous VA loan questions in regards to bankruptcies (BK) and foreclosures and trying to determine how long the borrower has to wait after their bankruptcy before they become eligible for a VA home loan. Or is there anything they can do while they wait to help their chances of getting approved for a VA loan once their waiting period is up? So let's take a look because as of right now the VA requirements are much more lenient than both conventional and FHA's.
Chapter 7 Bankruptcy
First, a chapter 7 bankruptcy involves a complete discharge of debtors. Once the petition is file and accepted by the court and the BK is finalized the borrower is released from liability from the creditors. Generally, with a chapter 7 bankruptcy the VA underwriting guidelines require a 2 years waiting period from the discharge date of the bankruptcy before financing becomes available. There are, however, certain uncontrollable circumstances such as medical conditions or job loss that allow for financing 1 year after the discharge date but these are very rare. To contrast this with conventional guidelines at the time of the article Fannie Mae is now requiring a 4 year waiting period after a chapter 7 BK.
Chapter 13 Bankruptcy
A chapter 13 on the other hand is called a wage earners plan. A trustee is appointed from the court and a repayment plan is negotiated. A veteran may actually be eligible for a VA mortgage while in the chapter 13 bankruptcy; but will need to have at least made 12 on time payments and have approval for the loan by the court trustee. Also, after the chapter 13 is finished the veteran borrower is eligible immediately. Fannie Mae requires a 2 year waiting period after the discharge.
Foreclosure
The VA guidelines state the foreclosure period follow the same rules as the Chapter 7 Bankruptcy. Basically, the veteran borrower needs to wait 2 years. Fannie Mae requires a 5 year waiting period now after the completion of the foreclosure and FHA is 3 years, ouch.
Tips for after a Bankruptcy
As a top VA lender that has dealt with their fair share of bankruptcies we've put together a few tips that borrower can put to go use.
Don't ever miss payments on your creditors going forward. This may sound like a no brainer but nothing will take a score down faster than missing a payment with a creditor plus an underwriter will be looking at your credit with a fine tooth comb after the bankruptcy.
I strongly suggest that a person reestablish at least 3 trade lines to build credit and also offset some of the negative blemishes that they bankruptcy has created. I can't tell borrower that fall into this category enough that this is important because for a lot of individuals they decided to pay their bills with strictly cash. While Dave Ramsey and others would find this financially wise decision to make when it comes to apply for a mortgage without good credit score you may not get financing. I recommend credit cards if you can get approved for them or a secured credit card if financing becomes difficult. Then simply keep a small balance on the card and pay it off every month.
I recommend after the bankruptcy has been discharged that you mail in a full copy of your discharge paperwork with all of the appropriate schedules the three credit bureaus Equifax, Experian and TransUnion. Often time some of the accounts included in the bankruptcy won't reflect that accurately.
I also suggest you start by pulling your credit at least once a year from each of the nationwide consumer credit reporting companies. Keep track of what's gone on and make sure there are no inaccuracies by the time you are ready to apply for a VA loan.
Of course the VA loan bankruptcy guidelines could change or be amended in the future but so far the majority of the VA guidelines have stayed unchanged for the last several years.
Chapter 7 Bankruptcy
First, a chapter 7 bankruptcy involves a complete discharge of debtors. Once the petition is file and accepted by the court and the BK is finalized the borrower is released from liability from the creditors. Generally, with a chapter 7 bankruptcy the VA underwriting guidelines require a 2 years waiting period from the discharge date of the bankruptcy before financing becomes available. There are, however, certain uncontrollable circumstances such as medical conditions or job loss that allow for financing 1 year after the discharge date but these are very rare. To contrast this with conventional guidelines at the time of the article Fannie Mae is now requiring a 4 year waiting period after a chapter 7 BK.
Chapter 13 Bankruptcy
A chapter 13 on the other hand is called a wage earners plan. A trustee is appointed from the court and a repayment plan is negotiated. A veteran may actually be eligible for a VA mortgage while in the chapter 13 bankruptcy; but will need to have at least made 12 on time payments and have approval for the loan by the court trustee. Also, after the chapter 13 is finished the veteran borrower is eligible immediately. Fannie Mae requires a 2 year waiting period after the discharge.
Foreclosure
The VA guidelines state the foreclosure period follow the same rules as the Chapter 7 Bankruptcy. Basically, the veteran borrower needs to wait 2 years. Fannie Mae requires a 5 year waiting period now after the completion of the foreclosure and FHA is 3 years, ouch.
Tips for after a Bankruptcy
As a top VA lender that has dealt with their fair share of bankruptcies we've put together a few tips that borrower can put to go use.
Don't ever miss payments on your creditors going forward. This may sound like a no brainer but nothing will take a score down faster than missing a payment with a creditor plus an underwriter will be looking at your credit with a fine tooth comb after the bankruptcy.
I strongly suggest that a person reestablish at least 3 trade lines to build credit and also offset some of the negative blemishes that they bankruptcy has created. I can't tell borrower that fall into this category enough that this is important because for a lot of individuals they decided to pay their bills with strictly cash. While Dave Ramsey and others would find this financially wise decision to make when it comes to apply for a mortgage without good credit score you may not get financing. I recommend credit cards if you can get approved for them or a secured credit card if financing becomes difficult. Then simply keep a small balance on the card and pay it off every month.
I recommend after the bankruptcy has been discharged that you mail in a full copy of your discharge paperwork with all of the appropriate schedules the three credit bureaus Equifax, Experian and TransUnion. Often time some of the accounts included in the bankruptcy won't reflect that accurately.
I also suggest you start by pulling your credit at least once a year from each of the nationwide consumer credit reporting companies. Keep track of what's gone on and make sure there are no inaccuracies by the time you are ready to apply for a VA loan.
Of course the VA loan bankruptcy guidelines could change or be amended in the future but so far the majority of the VA guidelines have stayed unchanged for the last several years.
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