Categories
Loans

Can I Get A Loan After Bankruptcy?

Getting a loan after bankruptcy is not impossible. It is in fact quite possible to get a loan after a bankruptcy. However, the borrower must understand that it is not going to be easy. It is not going to be simple because lending institutions are still very wary of giving loans to people who have declared bankruptcy. This is because they want to be protected in the event that something goes wrong. They want to be protected in the event that the borrower fails to pay his or her loan back.

After Debts Are Discharged

A borrower who declares bankruptcy must first provide a copy of the papers that were filed with the bankruptcy court. The borrower must also supply a copy of the order from the bankruptcy court stating that the bankruptcy has been discharged. The lender must consider the borrower’s ability to repay the loan. The lender must consider the borrower’s income, assets, and current liabilities. They must also determine if the borrower has too much debt. If the borrower has too much debt, the lender must take the borrower’s debts and assets into consideration. They must then determine if the borrower can handle the new debt that they will be taking on if they are approved for the loan. If the borrower has too much debt and bad credit, they might still be approved for a loan if the loan is asset backed. This is a loan that is secured by assets. Even still, some lenders do have an outright ban on lending to bankruptcy filers until a certain period of time has passed. So its important to discuss the lenders guidelines early in the process to make the most of your lending search.

For instance, if the borrower has a house that is worth $200,000, they may be able to get a loan for $200,000 because the house will serve as the collateral, although most lenders don’t lend up to the full value of the collateral. If the borrower has too much debt and bad credit, the lender will assess the borrower’s credit history. They will determine the borrower’s ability to repay the loan. They will then take the borrower’s income and assets into consideration. If they determine that the borrower has a high likelihood of being able to repay the loan, they may be willing to grant the loan. A lender will want to make sure that the borrower can repay the loan. The lender will want to make sure that the borrower will not be put into a worse financial situation because of the loan. They will want to make sure that the loan will not cause the borrower to fail to pay his or her other bills.

Of course, the borrower should also be wary. Not all loans are alike, and many may not carry the best terms or financial incentives for the borrower after bankruptcy. Take time to shop around after working with your Roseville bankruptcy lawyer to discharge your debts. Once you start with a clean slate, make it count and find the best loan for your financial situation as you build your credit profile.

 

Categories
Mortgage

Mortgage Debt Options

Getting behind on your house payments can happen to the best of us.  Whether job loss, medical costs, or other life stressors have led you down a road to mortgage debt; there are solutions that can resolve your problems with mortgage debt.

Foreclosure Or Bankruptcy?

There are two general types of foreclosures — judicial and non-judicial. Most mortgage loans are secured by a lien on your home. In a judicial foreclosure, the lender files a complaint in court asking for a judicial foreclosure. If the lender wins, the court orders your home sold at an auction. The proceeds of the sale go to the lender to pay off the mortgage debt. In a non-judicial foreclosure, the lender uses a power of sale clause in the mortgage. The clause allows the lender to sell the property in a non-judicial foreclosure. The lender must follow the procedures required by the mortgage loan documents and state law. If you have a mortgage loan and can't pay your mortgage, you may want to consider the benefits and drawbacks of a judicial foreclosure. There are, however, benefits of a judicial foreclosure. The lender must go through the court process, so the foreclosure process takes longer. All foreclosure procedures are strictly followed by the lender, and the lender must wait to file a foreclosure complaint until after the loan is more than 90 days delinquent. The drawbacks of a judicial foreclosure include giving up the house and any equity you have in it and the borrower can be left with liability to the lender even after the sale completes.

If you file a bankruptcy case to reduce your debt after a property has been sold at a foreclosure sale, you might be able to eliminate liability to the lender that remains after the sale. However, you may want to consider your options before the lender forecloses. You may be able to sell your home to a third party or negotiate a payment plan with the lender prior to the sale date. In addition, homeowners can utilize chapter 13 bankruptcy to catch up the arrears on the mortgage when filing prior to a lenders foreclosure auction. Most chapter 13 reorganization plans provide for as much as sixty months to repay the missed payments. However, the homeowner also needs to consistently pay the regularly monthly payments on the mortgage that arise in the future during the chapter 13 case.

If you are suffering with missed mortgage payments or the risk of foreclosure, contact our Elk Grove bankruptcy attorney office today to discuss your options. Missed mortgage payments can quickly lead to foreclosure, which can turn into a financial disaster overnight. Don’t wait another day to find out how to stop foreclosure and resolve your mortgage debt today.

Categories
Taxes

Things To Consider Before Becoming an Independent Contractor

Many people find being an independent contractor to be a preferred method of doing business. One of the reasons people enjoy contract work is because they can set their own hours and work from home. Many people have a spouse who works full time and the couple finds it convenient to work from home. Contractors can also work in a location that is convenient to them. Independent contractors can earn a higher income than someone who works for someone else. An independent contractor can manage their own taxes and keep 100% of their income initially. This freedom is enjoyed by many people.

Financial Planning Is Crucial

The independent contractor has the freedom to hire their own employees and build a successful business. They are not restricted by someone else’s schedule and can choose to work as much as they want or as little as they want. They are not required to work certain hours and they have the freedom of choosing their own marketing methods. An independent contractor has the freedom to choose the clients they want to work for and the type of work they want to do. When a person decides to be an independent contractor they must realize that they will have to focus on several important financial decisions, such as:

  • How to pay quarterly tax payments on their income.
  • How to make business related deductions
  • How to be an excellent accounting bookkeeper.
  • How to keep track of your medical, dental and vision insurance.
  • How to manage your insurance deductibles, co-payments, co-insurance and out-of-pocket maximums.
  • How to manage your 401(k) plan and other retirement plans.
  • How to manage your college savings accounts.
  • How to manage your charitable donations.
  • How to manage your investments.
  • How to select the best life insurance policy for your needs.

In addition to managing all of these business finance related decisions, contractors also have to be prepared pay their own taxes. In other words, expect to owe at the end of each year and develop a plan to pay these tax liabilities before the tax filing deadline to avoid large sums.

Categories
Taxes

Managing Taxes as an Independent Contractor

One big reason why freelancers don’t want to get paid as a 1099 independent contractor is that they are responsible for paying their own taxes. When you get paid as an employee, you don’t have to do much paperwork. But if you are a 1099 independent contractor, you probably have to pay quarterly taxes. However, if you get paid as a 1099 independent contractor, you are may have expenses that affect how much taxes your owe.

Planning To Owe

Paying taxes as a self-employed independent contractor is a pain, but it’s something you’ll want to do correctly and on time every year. Each state has different requirements, but you’ll need to pay estimated taxes four times a year and pay taxes on your earnings at the end of the year. It’s a little more complicated than just paying taxes on your earnings, though. You’ll need to pay self-employment tax, which is a combination of your income tax and your Social Security tax. How much you pay in self-employment tax depends on how much you earn and how much you pay in income tax.

If you’re self-employed, you have to pay income tax, and your deductions and credits you’d get are different than as an employee. Contributing to an HAS, making retirement contributions, and using a home office can serve as deductions. If you have a lot of expenses, you might be able to deduct them too, as long as you can prove they’re related to your business. You also have to pay state and local income tax. In most states, your state income tax is a percentage of your federal income tax. If you live in a state with no income tax, you’ll pay taxes based on the state sales tax.

Many independent contractors fall into financial trouble by failing to plan for their tax bill at the end of the year. Since independent contractors do not pay any taxes out of their paycheck, these tax liability totals can add up as the year goes on. If you have experienced difficulty with your tax payments or are concerned about an owed tax debt, contact one of our Roseville bankruptcy attorneys. They can help you review your income and tax liabilities, and develop a plan to eliminate your debt.

Categories
Debt Relief

Debt Differences In Bankruptcy

Having debt is not always a bad thing. In fact, a high credit score is often the result of debt. However, debt can quickly go from helping your credit profile to hurting it when debt begins to outweigh income. Further, the type of debt you carry may have a significant impact on your credit profile.

There are several types of debt. Credit card debt, also known as revolving debt, is the most common type of debt, and the easiest to acquire. A credit card is a line of credit with a credit limit that allows you to borrow money and pay it back over a period of time. Credit cards are convenient, but they can be dangerous if not used responsibly. Credit card debt, coupled with other types of debt, can be detrimental to your credit profile. Credit card debt is one of the easier types of debt to have eliminated through bankruptcy. This is because credit card debt is a type of unsecured debt. Unsecured debts are not tied to collateral; making them candidates for an easy bankruptcy discharge.

Mortgage debt is secured debt. Mortgages are long-term loans secured by a home or other real estate. They are often used to buy a home or refinance an existing home loan. Mortgages are difficult to eliminate through bankruptcy because they are long-term loans that are secured by a home, and homes are difficult to liquidate. However, mortgages may be more manageable than credit card debt because of the lower interest rates and longer repayment terms typically associated with mortgages.

Auto loans are loans for the purchase or refinancing of an automobile. They are often used to buy a car, but can also be used to refinance an existing auto loan. Like mortgages, auto loans may be eliminated through bankruptcy, but are difficult to eliminate because they are secured by a vehicle that the borrower can usually recover after bankruptcy.

Student loan debt is the newest type of debt to emerge on the market. Student loans are typically used to pay for an education. Virtually all students who attend college take out student loans, but they are not limited to college students. Student loans are available for students who are pursuing vocational, technical or advanced degrees. Like mortgages and auto loans, student loans can be eliminated through bankruptcy, but are difficult to eliminate because they are presumed to be non-dischargeable while there is still strength in the borrower's future income.

Whatever type of debt you are carrying, there is a solution to regain financial freedom. Contact our Citrus Heights bankruptcy attorney office today to learn more about how bankruptcy can free you from your debt burden.

Categories
Bankruptcy

Getting To Know Bankruptcy

Each year millions of people experience overwhelming debt. Financial hardship can strike at anytime, leaving a bad debt situation worse. For many people, harassing debt collections and the fear of losing assets may be a further risk.

One option for securing debt relief is through bankruptcy. Although the path to debt relief through bankruptcy is a well known path, many people are not aware of how the process works.

You will need to determine if you have the means to pay back your creditors. If you do not have enough money to pay back your creditors in full, you may need to file for bankruptcy. You will have to decide if you want to file for Chapter 7 or Chapter 13 bankruptcy. If you decide on Chapter 7 bankruptcy, you will need to file the appropriate documents. You will have to attend a credit counseling session.

If you are filing for Chapter 13 bankruptcy, you will need to file a bankruptcy petition and a repayment plan. The court will hold a meeting of creditors to decide if your case is eligible for bankruptcy. You will need to follow all the requirements for the bankruptcy proceeding. You will need to attend a meeting of creditors. The bankruptcy court will hold a hearing to determine your eligibility for bankruptcy. If the bankruptcy court approves your bankruptcy, you will be protected from creditors. If your bankruptcy is denied, you will need to repay your creditors. If your bankruptcy is approved, you will have to repay your creditors in accordance with your court ordered repayment plan.

If you are considering bankruptcy, you should educate yourself as much as possible about the process and seek the guidance of an experienced Citrus Heights bankruptcy attorney.

Categories
News

Summer Vacation Saving Tips

Summer vacation is just around the corner, and the season is expected to be booming this year. While more people traveling this summer is great for the economy, it isn't great for the consumer who is likely to be victim of above average hotel and airfare fees. If you are planning a trip this summer, here are a few money management tips to help you stick to your budget.

Book Early

Hotel rates are usually higher in peak seasons such as the summer and holidays. If you have your heart set on a particular destination and hotel, try booking it early; you may be able to save a good deal of money. If you book your airfare early, you'll probably get a good deal too.

Plan Ahead

Don't wait until the last minute to book your airfare. If you wait too long, you may have to pay a lot more. It's a good idea to book a round trip ticket just in case you want to stay longer or extend your stay.

Pack Light or Carry On

Don't pack more than you need. If you pack too much, you'll spend a lot more on baggage fees.

Avoid Convenience Fees

If you have to withdraw cash from an ATM, check the fee structure before you do. Make sure that the ATM you're using is free. Check the fee for using a credit card at restaurants, and make sure that you don't run up more fees than you can afford.

Leave Your Credit Cards at Home

The last thing you need is a card that is maxed out and an overdraft fee. Leave most of your credit cards at home, and only take the one you need. The summer is a great time to get away and enjoy yourself. You may even save some money if you follow some of these tips.

Categories
Debt Relief

Medical Debt In Bankruptcy

Many people are facing growing medical debt burdens and the risk of losing their homes or property as a result. While some people may seek debt relief through a settlement or consolidation loan, filing for bankruptcy may be more beneficial. There are several reasons bankruptcy may be the best choice for medical debt relief.

Bankruptcy can eliminate most unsecured debts, including credit card debt, medical debt, and personal loans. It also eliminates most types of tax debt, including federal income taxes, state income taxes, and unpaid property taxes. Bankruptcy may allow debtors to keep their homes and vehicles, and it can help people who have incurred large amounts of debt to pay off that debt and move forward with their lives.

If you have medical debt, you may have to pay off debts with higher interest rates before you can pay off your medical debt. And if you have a high interest rate on your credit card, you may be tempted to use the card to pay off some of your medical debt. If you can’t make payments on more credit card debt, you may end up in a cycle that you can’t escape. This can be especially true if you have unpaid medical debt. Medical debt can also be more difficult to work with than other types of debt.

Bankruptcy may be the best option for debt relief if a debtor has a lot of medical debt to pay. Working with a qualified Sacramento bankruptcy lawyer can stop harassing medical debt collection calls, and develop a plan to get you out of debt and back on track.

Categories
Bankruptcy

What Is The Means Test?

When you file for bankruptcy, there are some important steps that must be completed before the court will consider your case. You will need to compile and submit a list of all your assets and debts, and you will also need to complete a series of financial forms.

The Means Test

The means test is a test that the court requires you to complete to determine if you are eligible for Chapter 7 bankruptcy. The means test form is a six-page document that requires you to answer a series of questions about your income and expenses. In addition to the court-required means test form, you will also need to complete a creditors statement of your secured debts, and a statement of monthly net income and expenses with your current monthly income after taxes and deductions. If you are filing a joint bankruptcy, you will need to complete a form for each of you, as well as a statement of your net family income. The means test form is a necessary part of your bankruptcy filing, but if you are self-employed or have irregular income, it may be difficult to complete.

In determining disposable monthly income, the means test does not normally take into account the debtor’s expenses for the payment of debt-related attorney’s fees and court fees. The debtor’s disposable income is then compared with the median income for a family of the same size in the debtor’s state and county. If the debtor’s monthly disposable income is more than the applicable median income for a family of the same size, the debtor is considered to have “means” to pay some or all of the debts under a Chapter 13 repayment plan.

If you are considering bankruptcy or have questions about eligibility to file for bankruptcy, contact your Sacramento bankruptcy lawyer today.

Categories
Bankruptcy

Common Bankruptcy Mistakes

Many people seek debt relief through bankruptcy each year. Bankruptcy can be a great tool for resolving unpaid debts and getting back on track financially. However, the process is highly detailed and there are a number of mistakes that can prevent you from obtaining a debt discharge. If you find yourself in a situation where bankruptcy is a viable option, it is critical that you work with a skilled and experienced bankruptcy attorney who will help you navigate the process and avoid these common mistakes.

1. Don’t Hide Assets. It is important to be honest with your bankruptcy attorney throughout the process. While you may be embarrassed to admit that you have been overspending or that you have lost your job, hiding assets or lying about your income can be detrimental to your case. Your attorney will need to review your financial situation and develop a plan to help you pay off your debts. If you do not disclose your full income or assets, your attorney will not be able to properly estimate your income and assets, and your plan may not meet your needs. In addition, undisclosed assets will prevent you from meeting the good faith element that is required for the court to approve your case.

2. You Must Comply with Court Procedures. Many people do not realize that bankruptcy is a legal proceeding. If you fail to follow the procedures and rules set forth by the court, your case may be dismissed. For example, you must disclose all of the real and personal property that you own and provide information regarding your job or business. You also will need to attend court hearings and serve notices to your creditors. If you fail to do any of these things, your case may be dismissed.

3. Don’t Forget to File a Chapter 13 Plan. Chapter 13 bankruptcy is a good option for those with a steady income who want to keep their assets and pay off certain debts over time. While Chapter 7 bankruptcy results in a complete debt discharge, Chapter 13 bankruptcy is a more complicated form of bankruptcy that allows you to pay debts that you choose to pay. However, many people who file for Chapter 13 bankruptcy fail to file a plan and end up losing their case and needing to start over. If you hire a bankruptcy attorney, he or she will help you develop a plan and file it with the court. If you want to avoid this mistake, you will need to work with a knowledgeable attorney who will help you navigate the process.

4. Failing to Keep Up with Payments is Fatal to Your Case. If you want to receive a discharge of your debts in a Chapter 13 bankruptcy, you will need to make a certain number of payments. These payments are based on your income and the amount of your debt. If you fail to make these payments, your discharge will not be available to you and you will be responsible for repaying your creditors. The bankruptcy court can take your financial situation into consideration if you fail to make payments. If you cannot keep up with your payments, a Chapter 13 bankruptcy may not be the best option for you.

5. Failing to Stay Current on Your Debt Can Result in Creditor Action. If you fail to make your payments on time, your creditors may take action against you. In addition, your creditors may file a complaint with the court during the bankruptcy process. If you fail to respond to these complaints, the court may dismiss your case. If you are considering bankruptcy as a way to resolve your debts, it is critical to work with a Sacramento bankruptcy attorney who will help you avoid these common mistakes