Posts Tagged ‘Financial Guide’

Can You Get Loans and Credit Cards After Bankruptcy?

Financial Analyst | Posted by Joseph Carr-Boyd
Jan 11 2011

-  Question: As you well know, the economy is not that great at the moment. I was one of these people who thought that it wouldn’t affect them, but it finally did and I now have to claim bankruptcy. My plans are to live off of cash for a few years and in the future hopefully rebuild my credit.

Can I get a loan and credit cards after bankruptcy?

Answer: Bankruptcy is a devastating event that can occur in any person’s life. The effects it has on a person’s credit score is similar to the effects caused by foreclosure. A bankruptcy will stay on your credit report for 7-10 years.

The simple answer to the question is yes, you can get loans and credit cards after bankruptcy, but they are not at all the same as loans and credit cards you would get before you filed bankruptcy. It’s pretty much impossible to get a mortgage loan right after bankruptcy, even from FHA. Bankruptcy is not a way to wipe out all of your debts from your record, and bankruptcy in no way makes it easier to obtain any kind of loan from any source.

Types of loans and credit cards you’ll be able to acquire after bankruptcy would be secured, instead of unsecured. Secured loans and credit cards will have you put some kind of collateral on them, as a security in case you don’t pay the loan back. One of the trade offs you have with getting a secured credit card or loan is that you’ll have extremely higher interest rates and fees that go along with them. However, rebui

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Thoughts About Car Values In Chapter 7 Bankruptcy

Financial Guide | Posted by Kiara Withers
Dec 07 2010

How much is my car worth? This a question asked by most bankruptcy debtor’s who plan to file Chapter 7 and own a car free and clear of any liens. Florida law exempts only $1,000 of car equity in most cases, and cars’ liquidity makes them a prime target of Chapter 7 trustees who seek to recover non-exempt assets for creditors.

My own clients have suggested many methods they intend to use to value their own non-exempt cars. Example valuation standards are: written appraisals from their personal used car “guy”; an average of the car’s wholesale and retail values; the bid they get at Carmax, the Blue Book etc. This past Tuesday I was at a creditors meeting and I asked a bankruptcy trustee how she, and other trustees she speaks with, determine the value of debtor’s automobiles. She said that most trustees she has spoken with use the “trade-in” or in the yellow NADA book. That’s the book the banks use for car lending. She said that some trustees use “loan value” which is close to the “trade in” value. Carmax provides the lowest valuation based on auction wholesale price.
If you plan to take a car through bankruptcy make sure you are “on the same page” and in the same value book as your bankruptcy trustees.

Secondly, if there is something wrong with your car you need to adjust the car value and tell the trustee at the creditors meeting. One of my recent clients told me his car was worth $4,000 based on NADA value. The trustee made him buy back Read more…

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How to Use Bankruptcy to Your Advantage

Financial Analyst | Posted by Joseph Carr-Boyd
Oct 26 2010

In our culture we have an impression of bankruptcy as the end of a financial life in a way. We seem to gain the impression that when someone declares bankruptcy they are just done functioning, in a personal financial way at least. This however is not the case. In fact, most people who declare bankruptcy are in fact just taking some time to reorganize how they are going to deal with finances in the future.

Debtor’s reorganization is the process by which someone who is in large amounts of debt declares bankruptcy in order to help themselves find better ways to be able to pay back the debt. They are basically getting the creditors to take a step back so that they can start to earn the money that they need to pay them back. If they are constantly having to pay the debts that they currently have, then it becomes difficult to build to capital in order to really pay back the bulk of the debt. Debtor’s reorganization gives them time to begin this process of building the capital that they need.

If you feel that you may be in need of doing this process, then you should make sure to do your proper research to learn more about the ways in which you can set up payment plans.

At Sagaria Law, we offer an exceptional team of bankruptcy lawyers, bankruptcy client care specialists and bankruptcy staff supporting California. If you need help regarding bankruptcy in California, contact us at 1800.941.6730 for a free consultation or visit us online at www.sagarialaw.com to request a free in person appointment at a Sagaria Law office location nearest you.

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Tags: Bankruptcy Advantage, Financial Guide
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What happens to my house if I file bankruptcy?

Financial Analyst | Posted by Joseph Carr-Boyd
Oct 19 2010

With the increase in foreclosure rates nationwide, people are understandably concerned about their homes and foreclosure risks. If you file bankruptcy, it is not guaranteed that you will lose your home. Often, homeowners who file for Chapter 7 bankruptcy do not have enough equity in their homes to benefit creditors. If the trustee sees that the home is not a large enough asset, they will decide not to liquidate the home and the debtor will be allowed to keep the home.

Also, an automatic stay goes into effect once a bankruptcy petition is signed. This will stop foreclosure, wage garnishment and other legal proceedings until you can work out a financial plan to repay debts, giving you more time to consider possible options.

We can answer all your questions regarding filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. If you need help regarding a bankruptcy in California, call us at 1800.941.6730 and we will be more than happy to offer you a free consultation over the phone. You can also fill out a free online evaluation at our website, www.sagarialaw.com, or request a free face to face appointment at a Sagaria Law office location close to you.

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Tags: File Bankruptcy, Financial Guide
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What is a Chapter 7 bankruptcy?

Financial Analyst | Posted by Joseph Carr-Boyd
Oct 14 2010

A Chapter 7 bankruptcy filing virtually wipes out a person’s debt, giving them the chance to start with a clean slate. The option to file a Chapter 7 is a legal right that every citizen has, if they meet certain criteria. An experienced attorney can help determine which form of bankruptcy is right for an individual. Some debts such as government loans and fines are not allowed to be included in a bankruptcy filing.

Once a person files for Chapter 7 bankruptcy protection, their creditors are not allowed to continue contact or harass for payments. Collection calls and any other legal action is stopped while the filing is reviewed. During this time, creditors will be allowed to speak to the court and the petitioner, to ask for any property that is unpaid for to be returned.

The bankruptcy trustee will have the right to order any assets the petitioner currently has to be sold. The monies earned will be distributed to debtors on a priority basis. An attorney can protect a petitioner’s best interest in the case of any auction or seizing of assets. Once the conditions have been met, the U.S. Bankruptcy Court will officially discharge the debt.

We can answer all your questions regarding filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. If

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Chapter 7 Debtor Defers Income Tax Refund And Protects The Money From His Bankruptcy Trustee

Financial Guide | Posted by Kiara Withers
Oct 13 2010

A Chapter 7 bankruptcy debtor’s tax refund is non-exempt and is part of the bankruptcy estate. Except that a Florida bankruptcy attorney told me about a case in another district  where the bankruptcy debtor may have beaten ths system. The debtor filed his federal income tax return as he was preparing for Chapter 7 bankruptcy. He realized he would be eligible for a significant tax refund which would be lost to the trustee. So, when the debtor filed the tax return he check the box authorizing the IRS to apply the tax refund to future year’s tax liability. When he filed bankruptcy, the trustee demanded the tax refund. The debtor replied that he was expecting no refund. The issue went to court and was appealed all the way to the circuit court of appeals.

The appellate court ruled for the debtor. The court said the debtor had no right or ability to claim and turnover the tax refund because under the Internal Revenue Code the debtor/taxpayer’s election to defer the refund is irrevocable. Because the debtor had no right under the tax law to reverse his election and get the tax refund, so the trustee had no right to seek its turnover.

If you plan to file Chapter 7 bankruptcy before you file your 2010 tax return, and you are entitled to a significant refund,  you should tell the IRS not to send the refund and apply the amount to your future taxes. The trustee will not be pleased, but there is legal authority to back up your position. Graves No. 08-1462

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Tags: Financial Guide, Tax Refund
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