bankruptcy questions

Many bankruptcy filers are wondering whether they are entitled to keep one or several credit cards for emergencies backup. In general, you may not because your credit cards will be cancelled regardless, since you file the bankruptcy. The credit card issuers tend to punish their card holders for filling any kind of bankruptcy; in most cases, the credit cards of bankruptcy filers will be terminated once they file for a bankruptcy. But there are some exemptions where terms and conditions will be applied to enable the bankruptcy filers to continue holding their credit cards.

There are some exceptions applicable only to chapter 7 bankruptcy filers. Some credit card’s issuers will allow you to keep your credit card but with a sized down credit limit, and in return you need to repay them for some of your debts. In fact, some companies will automatically send you or your attorney a proposed reaffirmation agreement, a contract between you and your creditor that you will pay all or a portion of the money owed, despite the bankruptcy filing, in exchange for a minimal amount of new credit.

Beside the sized down credit limit, a chapter 7 bankruptcy filers may allow to keep their credit cards by some of their card issuers but the interest rate will be revised to a higher than the normal interest rate. But, if you can always pay your credit balance in full each month, you will never incur a finance charge, and the high interest rate won’t hurt you.

Other than chapter 7 bankruptcy filers, all credit cards must be given up at the filling of bankruptcy. However, there are credit card holders who have maintained their credit cards at zero balance for a long period of time do not report their credit cards during the filing. This action can be considered illegal since in effect your preference on one creditor (your credit card issuer) over other creditors, because repayment ordination is a trustee job.

If you are not eligible to file under chapter 7 or even you are filling under chapter 7 but you didn’t manage to get approval from your credit card issuers to keep your credit cards, the best thing is report all your credit cards and give them up. In most cases, your need to wait until the bankruptcy filing has cleared and then work with a debt management consultant to rebuilt your credit step by step. Of course, in the months and years after the bankruptcy filling, you may not be eligible for top-tier or even middle-tier credit cards.

But with some efforts and fiscal strategy such pay your monthly credit balance in full and on schedule will help you to rebuilt your good credit record and you can begin to erase the stigma of the bankruptcy; and eventually put you back in the realm of good to high credit score.

In Summary

In most cases, bankruptcy filers need to give up their credit cards. But, there are exceptions for bankruptcy filers in chapter 7, the debtors who file their bankruptcy under chapter 7 may allow to keep their credit cards with some terms and conditions.

Cornie Herring is the Author from http://www.studykiosk.com/CreditBasics. “StudyKiosk-Credit Basics” is an informational website on credit basics, debt consolidation and bankruptcy. To see recommended bankruptcy attorneys, visit: Recommended Bankruptcy Attorneys

Cornie Herring
http://www.articlesbase.com/finance-articles/are-you-allow-to-keep-your-credit-cards-in-a-bankruptcy-83386.html

Are you thinking of filing for bankruptcy? If so, make sure that you have a good look at all your options. Bankruptcy should be considered only as a last resort. Many people who have filed in the past say now that they wish they had investigated other options more completely before they filed. However, sometimes bankruptcy really is the best option. Once you file, you’ll be looking at things from a better financial position.

Many people think that once they file for bankruptcy, they’ll be unable to have large possessions or get credit. Nothing could be farther from the truth. There are credit cards, vehicle loans, and even mortgages available for people who’ve filed bankruptcy in the past.

If you’re willing to look a little harder and use unconventional means, you should be able to get a good mortgage loan, even if you filed for bankruptcy. If there’s a demand for the service, someone will fill that demand. This is the case with credit for people who have filed bankruptcy.

It can be difficult to get credit from traditional lenders. Your bankruptcy will appear on your credit report for as long as a decade. This means that many lenders will consider you a high risk, and avoid lending to you. Fortunately, not all lenders are this way. There are some lenders willing to write a mortgage for you even if there’s a bankruptcy on your credit report. These specialists understand that your bankruptcy may well have been caused by circumstances outside your control, and that it doesn’t mean that you’ve managed your finances badly.

However, it’s important to stay realistic when getting these kinds of loans. Companies will want to see a good track record of payments in spite of and since your filing. You will also probably find yourself facing a higher interest rate should you sign for a mortgage loan after bankruptcy. However, if you’re willing to deal with these factors, you do have the power to buy your own home, even with a black mark on your credit report.

Remember to look for an experienced specialty mortgage broker. They will need to be familiar with the sort of lenders who are willing to make this kind of loan. Be sure to give all the pertinent details to your broker as soon as you start doing business. That way, there will be no time wasted with companies who won’t be willing to give you the loan you need.

You’ll probably get many offers through the broker. Go over them carefully, one at a time. Pay attention to service fees, and penalties to be paid if you miss or are late on a payment. This way, you can evaluate the offer to find out what the best option is for you. With a specialty mortgage loan, you can have a new home of your own, even if you’ve had bad credit luck in the past.

Filing bankruptcy, if that is indeed your best option, does not mean it is also the end of the world. Hopefully you will have learned some things in the process about watching over things likes finances and even things that are outside your direct control, and you will be financially stronger in the future for having that knowledge.

Jon Arnold
http://www.articlesbase.com/finance-articles/how-to-get-credit-or-a-mortgage-after-filing-bankruptcy-185355.html

Bankruptcy is an ugly place to be, no doubt about that. Hopefully at the point of considering filing for bankruptcy, you have learned what got you into this position and are already making plans to ensure that this position does not occur to you again. You hopefully also understand that this is significantly different than the game of Monopoly where you can just roll the dice and start over – filing for bankruptcy is much different than that, unfortunately.

Do not declare personal bankruptcy until you have considered all of your bankruptcy options and alternatives. The very last solution to debt relief should be the consideration of bankruptcy, and there are various bankruptcy alternatives that should be considered first. Although it may sound like an easy and attractive solution for your dismal financial situation at this point in time, bankruptcy should be the last option anyone should resort to.

Why do I say that? Because declaring bankruptcy is going to haunt you for a very long time, like about 7 to 10 years. This will be a huge red flag on your credit report from all three of the major credit reporting bureaus for this amount of time, and future lenders will see that and either decline your loan or credit request, or charge you an astronomical interest rate with your approval, where neither of those two possibilities are attractive.

Before you file for bankruptcy, you should make sure to consider all possible options first. One popular option would be debt consolidation. If for example you have $2000 in monthly payments going out to a dozen different lenders, all of whom are charging you interest rates (and perhaps interest rates that are higher than they should or could be), a debt consolidation loan may be your best option. With such a loan, you can pay off these creditors and just have a single payment due, where you are now only paying interest on ONE loan and the amount of your monthly obligation is likely to be much lower than the sum total of your previous obligations.

Another option would be to work with your creditors. Nothing upsets a creditor more than your silence. Work with them, explain your situation and see what kind of options you can work on on a creditor-by-creditor basis. More often than not, lenders realize that if you declare bankruptcy, much of your decision to do so will be due in part to their lack of willingness to work with you and make things more bearable for you, and in which case, they will likely only get back pennies on the dollar for the money you owe them. Things that can be done would include deferred payments, refinancing the loan to make for lower monthly payments, and/or lowering your interest rate.

Yes, it will require some effort to talk to each of your creditors about this individually, and it may not be comfortable. But I can guarantee that the effort you put forth to do this is going to be much more comfortable than your other option of filing for bankruptcy.

The bottom line is to make sure you have investigated all possible options. Visit the web site below for more possible options and alternatives. If it ends up where you do need to file for bankruptcy, make sure you know your rights, how to approach it, and how to do it correctly so that you don’t end up in a worse position than you are right now.

Jon Arnold
http://www.articlesbase.com/finance-articles/why-you-must-consider-bankruptcy-alternatives-105992.html

Is your business in financial trouble?  Considering that the economy is in a recession, many people are having problems with their finances. If you do not sell a product or a service that is in high demand during tough times, then it is most likely that your business will see a significant drop in revenue if you do not change your approach. When jobs become scarce, people become extremely reluctant to spend money. Instead of helping to keep the economy rolling, individuals decide to hold onto their cash, which puts other people out of a job. It is a vicious cycle.

If your business is one of those that is contemplating filing bankruptcy, you should first consider the other options. Restructuring your business to make it more profitable, hiring an outside financial accountant, and liquidation are all options that should be considered before you make a trip to the bankruptcy court. Even your creditors would prefer that you explore all other options before you file as bankrupt.

When a company files for bankruptcy, they can file for either Chapter 7 bankruptcy or Chapter 11 bankruptcy. Chapter 7 is in place for either businesses or individuals who are unable to pay back their creditors in any way and need to liquidate their assets immediately. This type of bankruptcy is known as straight bankruptcy. It is often the last resort because every non-exempt asset is immediately in possession of the court, everything is sold off, and the revenue generated is split among your creditors. In all likelihood, there is nothing left over for you once your creditors are paid.

Chapter 11 bankruptcy, though not ideal, is still a better option than Chapter 7. It involves the reorganization of the business so that it can continue operating and pay back its creditors on a different time schedule. The bank assigns a person to your case who is to work with you on reorganizing your business plan. Their job is to help you stay in business while giving you a structured way to pay back your creditors in full. The majority of Chapter 11 bankruptcies do not work, however, and these companies end up filing for Chapter 7 bankruptcy in the end. 

Jane Worthington
http://www.articlesbase.com/bankruptcy-articles/chapter-7-bankruptcy-101-754933.html