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Bankruptcy

February 04, 2011

Chapter 7 Bankruptcy

Simon Volkov

Chapter 7 is one of the six bankruptcy chapters encompassed by the U.S. Bankruptcy Code. This chapter is available to individuals, business partnerships, corporations, and other business entities who qualify for protection through the court.

Obtaining debt relief through Chapter 7 is not as simple as it used to be. Reason being, new bankruptcy laws that took effect in 2005 require debtors to repay a portion of their debts by making restitution to the court using Chapter 13 payments.

Real Estate Investing article on "Chapter 7 "

December 28, 2010 | Comments: 1

Forbearance in Bankruptcy

Simon Volkov

Forbearance in bankruptcy can be a complex matter that requires help from a qualified attorney. Forbearance is a special financing arrangement that delays loan payments and prohibits banks from commencing with foreclosure or repossession of property used to secure the loan.

Forbearance in bankruptcy can go awry because technically borrowers are defaulting on the forbearance plan once they record their bankruptcy petition. However, when the petition is submitted the courts enter an automatic stay that stops collection activities from all creditors, including mortgage lenders.

Real Estate Investing article on "Forbearance in Bankruptcy "

December 22, 2010

Filing Chapter 13 Bankruptcy

Simon Volkov

If you are considering filing chapter 13 bankruptcy it is crucial to take time to become educated about the process. Obtaining debt help through personal bankruptcy is not an easy or inexpensive process. The majority of people who use this strategy to reduce financial burdens often find it causes more harm than good.

Filing chapter 13 bankruptcy requires debtors to retain the services of a bankruptcy lawyer. This can be expensive because new bankruptcy laws require lawyers to certify that all financial information provided is truthful and accurate.

Real Estate Investing article on "Filing Chapter 13 Bankruptcy"

November 15, 2010

Most Bankruptcy Plans Fail

Simon Volkov

Did you know most bankruptcy plans fail within the first year? The reason being is new bankruptcy laws require the majority of bankruptcy petitioners to enter into a payment plan under Chapter 13. Debtors are often required to contribute as much as 60-percent of disposable income to pay off reorganized debts.

Another reason most bankruptcy plans fail is because petitioners do not understand what happens if they do not adhere to their Chapter 13 payment plan. New bankruptcy laws took effect in 2005 under the Bankruptcy Abuse Prevention and Consumer Protection Act. These laws are extremely restrictive and leave petitioners little room for error. One missed payment can result in bankruptcy dismissal.

Real Estate Investing article on "Most Bankruptcy Plans Fail"

June 03, 2009

Mortgage after Bankruptcy

Simon Volkov

Individuals wanting to obtain a mortgage after bankruptcy need to get their financial affairs in orders long before applying for a loan. Obtaining credit is considerably more difficult today than it was just a year ago. The banking industry meltdown caused lenders to tighten regulations. Individuals with excellent credit find it challenging to obtain mortgage loans. Those with poor credit don't stand a chance.

In order to qualify for a mortgage after bankruptcy, borrowers must establish a history of paying their bills on time. Housing costs are usually the largest expense people have. Financial experts suggest leasing a home with a monthly payment equivalent to a mortgage payment. Paying rent on time each month helps debtor's establish a track record.

Real Estate Investing article on "Mortgage after Bankruptcy"

May 28, 2009 | Comments: 2

File Bankruptcy

Simon Volkov

In order to file bankruptcy debtors must follow established protocol set forth in the U.S. Bankruptcy Code. In 2005, Congress enacted new bankruptcy laws, making it much more difficult to file. Few people can undergo the process alone and will require the services of an attorney.

When people file bankruptcy they must undergo the 'means' test; a financial tool that determines how much debt must be repaid. The Bankruptcy Abuse Prevention and Consumer Protection Act require debtors must repay a portion of debts unless they earn less than their states' median income level.

Real Estate Investing article on "File Bankruptcy"

May 16, 2009

Bankruptcy Confirmation

Simon Volkov

Bankruptcy confirmation hearings are required when debtors file for protection under chapter 13. Also known as 'reorganization', this bankruptcy chapter requires debtors to submit a repayment plan to the judge. The confirmation hearing is required to determine if the repayment plan adheres to regulations set forth in the United States Bankruptcy Code.

The bankruptcy confirmation typically occurs within 45 days after the 341 creditors meeting. This meeting allows creditors to question the debtor regarding their ability to repay outstanding debts. Information is provided under oath. If the debtor provides falsified information they could potentially face jail time and are certain to have their bankruptcy request denied.

Real Estate Investing article on "Bankruptcy Confirmation"

April 04, 2009

Business Bankruptcy

Simon Volkov

Business bankruptcy filings are occurring at an unprecedented rate. Last year, bankruptcy courts reported a whopping 50-percent increase in filings over the previous year. Bloomberg.com, a worldwide provider of financial information, reports more than 18,000 businesses filed for bankruptcy protection during the first four months of 2008 alone. Unfortunately, the outlook is even gloomier for 2009.

Filing business bankruptcy requires the assistance of a qualified bankruptcy attorney. The new bankruptcy laws enacted in 2005 have made filing both personal and business bankruptcy nearly impossible. Known as the Bankruptcy Abuse Prevention and Consumer Protection Act, BAPCPA places numerous restrictions on financial constraints on business owners.

Real Estate Investing article on "Business Bankruptcy"

March 15, 2009

Chapter Eleven

Simon Volkov

Chapter eleven bankruptcy is used by corporations, partnerships and sole proprietors to reorganize business debts. Oftentimes referred to as 'corporate bankruptcy', Chapter 11 allows business owners time to restructure debt in an attempt to become a viable business.

During chapter eleven, businesses are allowed to continue normal operations. If the company is publically-held the reorganization plan must be provided to investors. Distribution of interest and principal payments to bondholders is prohibited during the reorganization phase. Stockholders are placed at the bottom of the list and unable to collect proceeds until creditors are repaid

Real Estate Investing article on "Chapter Eleven"

March 13, 2009

Fail Out of Bankruptcy

Simon Volkov

The term, 'fail out of bankruptcy' refers to the debtor's inability to adhere to their bankruptcy repayment plan. Personal bankruptcy includes Chapter 7 and Chapter 13. With Chapter 7, outstanding debts are discharged, while Chapter 13 allows debtors to reorganize their debt and repay it over an extended period of time.

One missed payment can cause a debtor to fail out of bankruptcy. When this occurs, creditors are allowed to petition the bankruptcy court and request dismissal. In most cases, the judge will allow the debtor to explain why they missed their payments. However, if the bankruptcy is dismissed creditors can commence with collection proceedings

Real Estate Investing article on "Fail Out of Bankruptcy"