Bankruptcy Help Center

Has The Bankruptcy Reform Helped at all?

noreply@blogger.com (Michael Hastings) — Sun, 20 Jul 2008 23:54:00 +0000

In bankruptcy, the attorney assigned to the case is responsible for making sure all information provided by their client is accurate. They usually do this before filing any and all paperwork. However, they often miss something and simply take their client’s word for the truth. Once the case is filed, a bankruptcy trustee will go over all information supplied by the client, looking for inaccuracies or reasons to believe fraud may be involved.

The role of the trustee in bankruptcy is to protect creditors are treated fairly and to be sure all non-exempt assets are sold for the highest price. The money raised is then distributed to the creditors in accordance with their claims and the trustee in bankruptcy helps make this happen. They go to creditor meetings and can discharge debt if fraud is found on the creditor’s end.
With a Chapter 13 bankruptcy filing things are different. The trustee's job is more administrative. This is because there are no assets to liquidate. They make sure the court approves the new payment plan. The trustee will often accept payments from the client. They then distribute them to the creditors, according to the court approved payment plan.

Many people use bankruptcy because they need to be relieved from the financial burdens that they are unable to take care of now or in the future. Unfortunately, too many people may have taken advantage of the bankruptcy system, and in May of 2004, the Bankruptcy Legislation Amendment Bill was passed. This bill was designed to stop those that were using the bankruptcy system as a quick way out of paying their taxes, although they were financially able to pay them. There may have been very few people that were taking advantage of the ability to not pay their taxes; however, the ones that are taking advantage have had debts that were a considerable amount of money. Since the bill was unfair to those that were in actual financial debt, there was an amendment in December of 2005.

This amendment allowed for those that truly needed to be relieved of their burdens to conduct a means test, which would evaluate them to see if they were in true need of filing bankruptcy. This includes taking a debt counseling course, in which the filer must pay for themselves. If after completing these requirements you were considered unable to file for the Chapter 7 bankruptcy, you still have the option of filing for Chapter 13 bankruptcy. Filing for Chapter 13 is more difficult, but can be a necessity if you are in desperate need of relief. With these new laws in effect, those that need help can still receive it, while those that are using it for avoidance, can no longer do so.

Filing for bankruptcy can be quite frightening. When filing for bankruptcy there are many rules you must follow exactly in order. If you don't, you won't correctly file your bankruptcy. In addition, you should completely understand each of the separate types of bankruptcy you can file, before your file. If you’ve had no experience with bankruptcy you may find yourself overwhelmed with the tasks of filling out the right paperwork. If your bankruptcy papers are not filed in the proper manner, you can end up with a bigger problem than you started with.
If you want to ensure you are doing everything the right way, you may want to consult with a bankruptcy attorney. The easiest way to contact a good bankruptcy attorney is to get in touch with a bankruptcy firm. A bankruptcy firm is actually a group that employs lawyers who specialize in the process of bankruptcy.

When you're dealing with something as sensitive as filing bankruptcy, you want to be sure you’re doing it right. A bankruptcy firm can help you know what type of bankruptcy you qualify for and the proper steps you need to take to complete the process. In addition, the attorney can help prepare you if you need to go to court and can often help you protect some of your most precious assets (like your home and car). Overall, it is a prime idea to contact a bankruptcy firm before filing for bankruptcy.

Survive Bankruptcy With The Help Of Good Bankruptcy Lawyers

noreply@blogger.com (Michael Hastings) — Sun, 20 Jul 2008 23:48:00 +0000

It is one of those words that can make your stomach drop. It creates images of fortunes squandered, homes lost, and dreams shattered. Bankruptcy affects millions of people every year, but with the help of bankruptcy lawyers it does not have to be a financial death sentence. In fact, bankruptcy lawyers help people survive bankruptcy every day, and with their expert help, individuals and companies can often be back on their financial feet within a few short years.

Individual bankruptcy is initiated one of two ways; either by the debtor or the creditor. In the case of the former, the debtor wishes to escape from oppressive debt and seeks a new start, while in the latter scenario the creditor wishes to recover assets from a creditor who is no longer solvent. In either case, creditors, with the help of bankruptcy lawyers, will usually exercise one of two options; Chapter 7 or Chapter 13 bankruptcy.

With the help of bankruptcy lawyers, individuals can assess their financial situation and pursue the bankruptcy option that affords them the best possible outcome. For some, Chapter 7 might be their only realistic option. Also known as straight bankruptcy, or liquidation, Chapter 7 bankruptcies allow the debtor to keep some property while non-exempt property is sold with all proceeds going toward the creditors. In the process, many other debts are discharged, while some remain – such as child support, taxes, legal fines, and many student loans, to name a few. In many cases the creditors have very few assets that are eligible for liquidation. In those instances, bankruptcy lawyers may suggest Chapter 7 because it will allow the creditor to start over quickly with minimal losses of personal assets.

Some creditors have much to lose – such as a home or automobile - and they would like to avoid losing them. In that case, bankruptcy lawyers may advise their clients to pursue Chapter 13 bankruptcy. Also known as reorganization, Chapter 13 bankruptcy allows a creditor to repay some or all of their debts, usually under more favorable terms such as less interest and waived fees. However, it is more difficult to qualify for Chapter 13 protection because the creditor must have sufficient disposable income to qualify. With the help of bankruptcy lawyers, debtors in Chapter 13 arrangements have three to five years to pay their creditors while enjoying the protection of the bankruptcy court – the creditor cannot make ongoing attempts to collect on the original debts during this time. However, the debtor cannot obtain additional debt during this time, so both parties are restrained by the court.

If you are in serious debt and are facing bankruptcy or foreclosure then you should immediately consult with competent bankruptcy lawyers. The details and qualifications for all forms of bankruptcy – including some not mentioned – are very complex and require expert counsel that only qualified bankruptcy lawyers can provide.

About the Author: For easy to understand, in depth information about bankruptcy lawyers visit our ezGuide 2 <a target="_new" href="Lawyers.">Lawyers.'>http://lawyer.ezguide2.com">Lawyers</a>.

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How Does Your Bankruptcy Affect Home Mortgage Refinancing?

noreply@blogger.com (Michael Hastings) — Sun, 20 Jul 2008 23:45:00 +0000

There are a few basic concepts one should know when looking into refinancing a mortgage after a bankruptcy. Most importantly, you need to know the two different types of personal bankruptcy that you can declare. Chapter 7 Bankruptcy, often called “straight bankruptcy”, is an attempt for someone financially overextended to liquidate most of their assets to satisfy creditors, keeping only a few personal assets needed for the basic necessities of life such as an economical car, personal clothing, etc.

In Chapter 13 Bankruptcy, your assets are not liquidated. Instead, you come to an agreement with an appointed trustee where late charges and other penalties are eliminated and you start a payment plan to repay much of the debt owed. This process can take over a year or two, but will allow you to retain belongings (and property). Also, it is looked at more favorably by lenders because you are attempting to repay your debts, not just write them off. Lenders will look at both the date the bankruptcy was filed and when it was discharged.

A Chapter 13 Bankruptcy “buyout” is a refinance loan, taking out a new loan to cover the existing mortgage and some or all of the other debts. This is basically considered a “cash-out” refinance. Most Chapter 13 Bankruptcy refinance loans are limited to roughly 85% of the value of your home.

When refinancing out of a Chapter 13 Bankruptcy, or soon after a Chapter 7 or Chapter 13 Bankruptcy, you will almost certainly be working with a sub-prime or “non-prime” lender. These lenders specialize in helping borrowers with blemished credit histories. Often, borrowers refinancing near the time of a bankruptcy will seek the assistance of a mortgage broker, many of whom have experience with this type of loan. If possible, it is best to wait at least two years after the discharge of your bankruptcy to refinance your mortgage. This will help you to receive a better interest rate. Start now to pay your bills on time and in full. This will help to repair your credit and give you even better chances of a lower rate.

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What is a Chapter 7 Bankruptcy?

noreply@blogger.com (Michael Hastings) — Sun, 20 Jul 2008 00:22:00 +0000

Chapter 7 of the Title 11 of the United States Code (Bankruptcy Code) governs the process of liquidation under the bankruptcy laws of the United States. (In contrast, Chapter 11 governs the process of reorganization of a debtor in bankruptcy). Chapter 7 is the most common form of bankruptcy in the United States.

Individuals can file for bankruptcy in a federal court under Chapter 7 ("straight bankruptcy",or liquidation) or Chapter 13 (a "reorganization", or debt adjustment case). (Although individuals can technically file Chapter 11 bankruptcies, those filings are rare.) In a Chapter 7 bankruptcy, the individual is allowed to keep certain exempt property. Some liens, however (such as real estate mortgages and car loans), survive. The value of property which can be claimed as exempt varies from state-to-state. Other assets, if any, are sold (liquidated) by the interim trustee to repay creditors. Many types of unsecured debt are legally discharged by the bankruptcy proceeding, but there are various types of debt that are not discharged in a Chapter 7. Common exceptions to discharge include child support, income taxes less than 3 years old and property taxes, most student loans (unless the debtor prevails in a difficult-to-win adversary proceeding brought to determine the dischargeability of the student loan), and fines and restitution imposed by a court for any crimes committed by the debtor. Spousal support is likewise not covered by a bankruptcy filing.

Bankruptcy discharge stays on the individual's credit report for up to 10 years for most purposes. This may make credit less available and/or terms less favorable, although high debt can have the same effect. That must be balanced against the removal of actual debt from the filer's record by the bankruptcy, which tends to improve creditworthiness. Consumer credit and creditworthiness is a complex subject, however. Future ability to obtain credit is dependent on multiple factors and difficult to predict.

Another aspect to consider is whether the debtor can avoid a challenge by the United States Trustee to his or her Chapter 7 filing as abusive. One factor in considering whether the U.S. Trustee can prevail in a challenge to the debtor's Chapter 7 filing is whether the debtor can otherwise afford to repay some or all of his debts out of disposable income in the five year time frame provided by Chapter 13. If so, then the U.S. Trustee may succeed in preventing the debtor from receiving a discharge under Chapter 7, effectively forcing the debtor into Chapter 13.

It is widely held amongst bankruptcy practitioners that the U.S. Trustee has become much more aggressive in recent times in pursuing (what the U.S. Trustee believes to be) abusive Chapter 7 filings. Through these activities the U.S. Trustee has achieved a regulatory system that Congress and most creditor-friendly commentors have consistently espoused, i.e., a formal means test for Chapter 7. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 has clarified this area of concern by making changes to the U.S. Bankruptcy Code that include, along with many other reforms, language imposing a means test for Chapter 7 cases.

Creditworthiness and the likelihood of receiving a Chapter 7 discharge are only a few of many issues to be considered in determining whether to file bankruptcy. The importance of the effects of bankruptcy on creditworthiness is sometimes overemphasized because by the time most debtors are ready to file for bankruptcy their credit score is already ruined.

What are the main purposes of Bankruptcy?

noreply@blogger.com (Michael Hastings) — Sun, 20 Jul 2008 00:15:00 +0000

Bankruptcy laws serve two main purposes. First, Bankruptcy law gives creditors some payment on their debts if a debtor (the one who owes the debt) can afford to pay them. Second, Bankruptcy law gives debtors a fresh start, by canceling many of their debts, through an order of the court called a discharge.

There are four types of Bankruptcy available to individuals:

Chapter 7 (a liquidation-style case for individuals or businesses),
Chapter 13 (a payment plan or rehabilitation-style case for individuals with a regular source of income),
Chapter 12 (a payment plan or rehabilitation-style case for family farmers and fishermen), and
Chapter 11 (a more complex rehabilitation-style case used primarily by business debtors, but sometimes by individuals with substantial debts and asset).

The two most important types of cases for consumers are chapter 7 and chapter 13. Both provide for some possible payments to creditors, a discharge for debtors and supervision by a trustee. Chapter 7 involves surrendering some of your property (at least in theory) in return for a discharge of many of your debts. The trustee sells any non-exempt property and pays your creditors. In chapter 13, you keep your property but must commit to a three- to five-year repayment plan. You then obtain a discharge of most of the debts not paid in the plan.

In both types of Bankruptcy most creditors must stop efforts to collect debts after your case is filed. This protection is called the “automatic stay.” In a chapter 7, this relief is often temporary.

Understanding Chapter 13 Bankruptcy

noreply@blogger.com (Michael Hastings) — Wed, 16 Jul 2008 05:07:00 +0000

Chapter 13 bankruptcy is one type of bankruptcy. There are various types of bankruptcy and understanding each type is important. Chapter 13 is available only in certain situations and only those who are best qualified for this type of bankruptcy should file under it.

The Chapter 13 Bankruptcy

So, who can file for Chapter 13? Well Chapter 13 can be filed by individuals who have a steady and secured source of income.

A Chapter 13 is a repayment plan. Debts are not wiped clean. Instead the individual agrees to a plan in court that established repayment of debts. Creditors also must agree to the plan, which is based on the individual’s income.

Steps in Filing Chapter 13 Bankruptcy

The new bankruptcy laws require you to first seek counseling about your credits. You will then need to file paperwork before the process of Chapter 13 begins.

After that process is done, your income and debts are gone through and a payment plan will be drawn out according to your income. However, both the creditors and you, and most importantly the court have to agree with the plan.

As you can see, this is a lot of work and also time consuming as there are a lot of paperwork to be done and also court hearings to attend. However, the best suggestion I can offer you is that you should have a lawyer who can help you with negotiations with creditors. This may not be easy but trust me, it is worth the trouble. This way, you have nothing to worry about.

It may take up a lot of you time before it gets finalize but you will be on the winning end after all the trouble you went through.

Things to Know About Chapter 13 Bankruptcy

Have you ever wondered why you should file a Chapter 13? It is just a repayment plan, so why don’t you just consolidate your debts instead? Well, the answer is you can get the court’s involvement in the process.

As mentioned above, you should file for Chapter 13 instead of debt consolidation because the court can protect you. Other than that, you will also have more options. The court will ensure that you are able to afford the repayment plan and thus treated like a willing party.

Other than that, another advantage of filing for bankruptcy is that you are protected from creditors when you file for bankruptcy.

Of course, as with bankruptcy in general, it is always best to avoid it if possible. You can start with trying to get creditors to work with you and then only move to bankruptcy if you are feeling threatened with losing assets and court proceedings.

It Is The Bankruptcy Court That Handles All Matters Relating To Bankruptcy

noreply@blogger.com (Michael Hastings) — Tue, 15 Jul 2008 03:59:00 +0000

Article III of the U.S. Constitution establishes the judiciary as one of the three separate as well as distinct branches of the federal government along with the legislative and executive branches. Federal courts are considered the guardians of the Constitution because their rulings help protect the rights as well as liberties as guaranteed by the Constitution. An independent judiciary is fundamental to obtaining fairness as well as justice for all citizens of the United States.

94 Federal Judicial Districts

There are 94 federal judicial districts that have bankruptcy courts that handle all matters relating to bankruptcies. It is not possible to file a bankruptcy case in a state court, and bankruptcy laws help people that cannot pay their creditors get a new start through the liquidation of their assets in order to pay off their debts, or through the creation of a repayment plan.

Bankruptcy courts and laws work together in order to protect troubled businesses as well as helps in providing orderly distribution to business creditors through different means including reorganization or liquidation. The procedures that need to be followed in a bankruptcy court are covered under Title II of the Bankruptcy Code. Most cases that are filed fall under the three main chapters of the Bankruptcy Code and these are Chapters 7, 11 and 13.

The United States bankruptcy court is a federal court that deals with all manner of bankruptcy cases, and bankruptcy judges in each of the 94 federal judicial districts in regular active service constitute a “unit” of the applicable United States district court. Bankruptcy judges that preside over the bankruptcy court cases are appointed for a fourteen year term by the United States court of appeals.

In technical terms, the US district courts are authorized to handle bankruptcy cases, though each such district needs to refer bankruptcy matters to the bankruptcy court. Initially at least, all matters relating to bankruptcy are handled by the bankruptcy court.

However, if circumstances are unusual, the district court can withdraw the reference or take the bankruptcy case away from the bankruptcy court and decide upon the matter itself. Most of the bankruptcy matters are handled by a bankruptcy judge sitting in a bankruptcy court who may pass decisions on these matters which will be final except for appeals to the district judge who may review such decisions.

About the Author: Simon Peters is the owner of On Bankruptcy, it is THE best source for advice on the subject on bankruptcy, nothing to sell, just information . . .

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Bankruptcy Means Testing Under The New Bankruptcy Law

noreply@blogger.com (Michael Hastings) — Tue, 15 Jul 2008 03:57:00 +0000

The rush to file bankruptcy ahead of the new bankruptcy law is over. Now what? Did you miss the boat if you didn't file bankruptcy before the new law went into effect?

Absolutely not. Although the new bankruptcy law has made it much more difficult to file bankruptcy, most attorneys are finding out that the new bankruptcy law is manageable and filings are on the rise.

One of the most confusing parts of the new bankruptcy law is the bankruptcy means test.

In an effort to stop bankruptcy abuse, Congress decided to implement a step to the bankruptcy process called the "bankruptcy means test".The new bankruptcy law requires a test to be performed by every debtor prior to filing bankruptcy. The actual test is alot like doing your taxes. The means test revolves around the median state income for the state in which the debtor will file bankruptcy.

The bankruptcy means test is used to determine what type of bankruptcy a debtor can file. The bankruptcy means test is an attempt to make chapter 7 available to only those debtors who absolutely need to file a chapter 7 bankruptcy. Most people trying to file bankruptcy want to try to file a chapter 7 bankruptcy which can wipe out most debt quickly; a chapter 7 case is usually completed in about 90 to 120 days with no required repayment plan. The other type of consumer debtor bankruptcy is a chapter 13 bankruptcy which requires a debtor to make repayments to the bankruptcy court over the course of 3 to 5 years.

The means test is designed to weed out those people who don't really need to file a chapter 7 in the hopes that more people will have to file a chapter 13 bankruptcy and pay all, or a portion, of their debt back to their creditors through a court ordered repayment plan. Remember, the new bankruptcy law was funded by creditors so it only seems logical that the law would encourage the repayment form of bankruptcy.

The actual means test can be quite simple if a debtor is below their median state income. If a debtor is below the median income for their state, the debtor can file a chapter 7 bankruptcy. Debtors who exceed the median income may still be able to file a chapter 7 bankruptcy but they must complete several additional steps in the test that are far more complicated. If a debtor fails the means test, the debtor is not prohibited from filing. However, a debtor who fails the test cannot file a chapter 7.

About the Author: Jameson Joyce is a legal writer for http://legalhelponline.org and Direct Lex, the global legal resource solution.

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Get A Mortgage Loan After Bankruptcy

noreply@blogger.com (Michael Hastings) — Mon, 14 Jul 2008 03:02:00 +0000

If you have a recent bankruptcy on your credit and are looking to get financing for a home, there is hope. Buying a home with bad credit will just put more emphasis on the other two factors needed to get a mortgage loan, which are; income verification and a down payment.

After bankruptcy most lenders want you to wait at least 2 years from the time of the bankruptcy discharge before they will consider you for a mortgage loan. After the two year waiting period is over, you should be able to get financing easily. You should also be able to get 100% financing as well. You can usually achieve this as long as at least most of your payments have been reported to the credit bureau as having been paid on time since the discharge of your bankruptcy.

If you are looking to get a mortgage loan after bankruptcy sooner than the 2 years from the time of discharge, you will need to have almost flawless payment history since your bankruptcy discharge. Also, you may need to have a down payment. If you have even 3-5% to use as a down payment, that may be enough to help you get approved.

There are ways to get a down payment for your mortgage besides having the money saved in the bank. Here are some ideas of ways to do that:

1. Borrow or ask for a gift from relatives. After you have financed the house, you can usually go and take out a 2nd or 3rd mortgage up to the full value of your house, and then you could repay the relatives. Keep in mind that if you intend the money to be as a loan only from the relatives, you would need to disclose that to the lender before you close. Lenders usually have regulations about where the down payment is coming from and if you are not honest, it could be considered defrauding a lender.

2. There are down payment assistance programs like Neighborhood Gold or the Nehemiah program. These programs basically aid the seller in helping you with a down payment. Receiving a down payment from the seller of the property is illegal, but through these programs, it is legal. There are also other down payment assistance programs which are grants and do not need to be repaid or paid for by anyone. To find out about these, do a search on “down payment assistance” with your favorite search engine.

3. You could cash out a 401K or another investment and like in the first example, repay yourself with a 2nd or 3rd mortgage after the loan has closed.

About the Author: To see a list of recommended bad credit mortgage loan companies online, visit this page: www.abcloanguide.com/lessthanperfectcredit.shtml. Carrie Reeder is the owner of ABC Loan Guide. It is an informational loan website, with informative articles and the latest finance news.

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Can I get a Mortgage after Bankruptcy?

noreply@blogger.com (Michael Hastings) — Mon, 14 Jul 2008 02:32:00 +0000

If you have recently filed bankruptcy, you may have a few questions about your ability to get a home loan. Here are some common questions about mortgages after bankruptcy:

How long after my bankruptcy has been discharged should I have to wait to get approved for a mortgage loan? - Typically, mortgage lenders are open to considering an approval for a home loan after 2 years. Some lenders that are more strict have a policy of waiting 3 years to begin considering financing. It's possible to get mortgage financing before 2 years from the discharge date, you just may end up needing a down payment or you may have to settle for a much higher interest rate.

Can I get the best interest rates available? Is it possible? - It's not likely. The most likely way to get the lowest interest rate available would be to have a large down payment. Also, another factor that will contribute to what type of interest rate you qualify for would be how well you have paid your bills since the bankruptcy discharge.

What other factors will help me get approved for a home loan? - Your credit is only one of a few of the main factors in getting a home loan. Other factors include, employment history, debt-to-income ratio, the homes loan-to-value, income and down payment. So, consequently, if you have credit problems, it's important, not only to work on increasing your credit score but to strengthen the other factors that work for you in the loan process.

How long will a bankruptcy affect my ability to get a mortgage loan? - A chapter 13 bankruptcy stays on your credit history for 7 years and a Chapter 7 bankruptcy stays on credit for 10 years. However, starting from the first day after your bankruptcy discharge date, as your credit improves, your credit score improves. As you make payments over time, your credit score will continue to go up and can be in the high 600's or 700 even before you bankruptcy filing has come off your credit report.

About the Author: After Bankruptcy Home Mortgage Loans Online

How can you obtain an Auto Loan after Bankruptcy?

noreply@blogger.com (Michael Hastings) — Mon, 14 Jul 2008 02:19:00 +0000

I've always chuckled at the reactions I receive when people ask about bankruptcy auto loans, and I suggest they be open to leasing. The looks I get are a cross between “are you kidding?” and “what did you just call me?”

Leasing has undergone a change in popularity since its inception. In the beginning, everyone purchased cars outright…they could do this because a) buying a car on time was not an option, b) because cars cost much less then than they do now.

As options were added to cars, such as color, 2-doors or 4-doors, 5-speed or automatic, am radio or 8-track (oh, am I dating myself here?), vehicle prices begin increasing. Auto loans terms came out at 12 months…moving up quickly to 24 months…36 months…and soon it became apparent that cars were costing more than people could afford.

In stepped the leasing option. It was a neat program at first. You would go in, negotiate a payment with the auto dealer calculating the suggested residual value at the end of the lease. You were soon the proud renter of that vehicle.

The popularity of this method spread like wildfire….until it became snuffed out when the first lessees drove back in years later to drop off their cars. That residual value, the value that their vehicle was supposed to be worth was much higher than what it actually turned out to be…..and people were told they needed to come up with thousands in order to drop off their vehicles.

As you can imagine, “open-ended leases” such as those (where the vehicle's value would be ascertained when you came to drop off your car at the end of the lease, rather than set in stone as they are now in “closed-end leases”) became about as popular as a electric shock therapy in the rain.

So, purchasing vehicles was back in vogue. And, just like in high school economics, the prices of the cars increased faster than the incomes of those who wanted them….and soon terms increased to 48 months.

Today, a 60 month loan is commonplace, with people signing up for 72 and 84 month loans without batting an eye. So, not surprisingly, leasing was given a second look, has been restructured, and is now an option for people to get the best of both worlds.

People can get a brand new (or slightly used…yes, they even lease used cars now too!) vehicle for a reasonable payment.

So, how does this relate to me, you ask? I thought you had to have stellar credit in order to lease.

Enter the world of the bankruptcy auto loan!

This was the case until about 8 years ago. Banks were finding that there were many people with sub-prime credit that needed car loans or a bankruptcy auto loan.

For years, if you had bad credit, or required a bankruptcy auto loan, you were charged a hefty interest rate if you wanted their loan, take it or leave it.

Well, funny thing about interest rates. The higher the rate, the more interest you pay out in the first years of your bankruptcy auto loan term….the less you pay to principle. This simple fact means, if after 1 year of paying on this bankruptcy auto loan the person finds themselves unable to continue making payments….the amount of money they still owe on their vehicle is still very high because such a small percentage of their payments have been going towards principle.

Those lucky banks that had been counting their money with their greasy fat fingers, suddenly found themselves a year later stuck with repossessed cars that still had huge balances owed on them.

How does this affect you? Banks and manufacturers have devised a way that everyone benefits from leasing. Someone who does not qualify for a prime rate, and in fact requires a bankruptcy auto loan can, depending on the lender's guidelines, lease a new or newer vehicle.

The lender is happy because you are given a shorter term (generally 36 months) to pay on the vehicle. The end value is fixed (“closed-end leases” I spoke of earlier) and backed out of the loan amount, so you are only paying on your 3 years of use.

The interest paid is based on 3 year usage, not on the whole value of the car, so you pay down your principle faster. And, if the worst case happens and the car gets repossessed, the lender is in a better position with regard to the vehicles loan balance and current value.

What does this mean to you?

You can obtain a new or nearly-new vehicle and bankruptcy auto loan for a reasonable payment, a shorter loan term, and all the benefits of things like bumper to bumper warranty…things that are not always available when you purchase a vehicle through a dealership, and definitely not available when you purchase from a private party.

Obtaining a bankruptcy auto loan, and even a lease can get you on the right track immediately.

I've gone through a lot of information here. I encourage you to learn more about obtaining a bankruptcy auto loan; ask more, and educate yourself in the insider methods and strategies I and my colleagues teach by signing up for membership at www.creditiskey.com. You will benefit from my and others' years of educating people in various aspects of rebuilding your credit after a bankruptcy as well as how to obtain a bankruptcy auto loan.

I'll see you there!

John Preston

About the Author: Join the Credit Is Key membership website and receive a FREE e-course to use
our proven strategies to rebuild your credit and click now http://www.creditiskey.org to find out how you can obtain a bankruptcy auto loan.

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