Bankruptcy Reader

This tough new law was supposed to slash the number of bankruptcy filings, and it did show stellar effects — but only for a short period of time. Now, the numbers are rising again because the root causes of unpaid debt were never addressed. Moneycentral.msn.com reports:

Credit counselors are already reporting an increase in the number of debtors seeking help because of high gas prices and adjustable-rate mortgages that have reset at higher rates. Those debtors may well enter the bankruptcy pipeline in the next year or so.

Read more: The bankruptcy boom is back

Bankruptcy may seem like the end of the road. However, you needn’t be so morose. There are still a few things you can do. Agreed your credit is in a bad shape now — you are left with the painful tag of bankruptcy. In addition, one of the biggest problems people have after filing is about their homes. ‘Can I salvage my home, can I refinance,’ I’ve heard such questions innumerable times. The answer is a big YES. Don’t believe me? Just complete a short online application TODAY.

You will soon receive quotes from multiple lenders who will compete for your business! This, even if you have filed bankruptcy in the past. I have known people who have been contacted by lenders in as little as 24 hours. In addition, these people had all the info on the best refinancing packages available! In just a couple of minutes, you can even be pre-qualified and the application is quick and easy.

And why would you want to refinance your home after bankruptcy. Well, you can:

• Lower your payments
• Get some spare cash for a vacation that will help soothe you
• You can even consolidate your debts, bills
• Alternatively, fund your child’s college education.

In short, you can do just about anything with the money you get from refinancing your mortgage. Refinancing helps you to dramatically lower your monthly payments. Do you really need to be stuck with that high interest rate and less than desirable mortgage terms just because you’ve gone bankrupt? Of course not! Mortgage lenders have hundreds of loan programs that will help you meet your financial goals.

And why would mortgage lenders be so eager to court you and provide you with the best packages possible. Well, you can be assured that they are not doing it out of the goodness of their hearts. They consider refinancing your mortgage after bankruptcy a good option because the risks involved in refinancing an existing mortgage are extremely low. So, go ahead and get quotes from multiple lenders. You have nothing to lose and you will find that mortgage lenders are prepared to offer you better terms than you thought possible.

It seems like the Congress has absolutely no idea what bankruptcy is all about. The fact that it took a federal judge to overturn a particularly dumb provision in the new Bankruptcy law just underlines this fact. Lufkindailynews.com reports:

The provision forbids an attorney from advising a client to take on additional debt before filing bankruptcy. Taking on more debt? Well, how about refinancing one’s house to get a better rate? So asked the judge.

Read more: Young: Congress shows how to avoid bankruptcy

You’ve gone through a bankruptcy and have lost almost everything, now you want to rebuild your life and what better way to do it than buying a house. So, if you’ve filed a Chapter 7 or 13, there is a waiting period and certain other things you need to consider before you buy that home. Hotlib.com reports:

To obtain a mortgage after filing a chapter 7 or chapter 13, you must wait at least two years after the bankruptcy is discharged. Moreover, individuals who have had a bankruptcy case dismissed must also wait two years before applying for a mortgage.

Read more: Buying A Home After Bankruptcy - How Long Should You Wait To Buy?

Debt and its associated problems can make you begin to feel that life shouldn’t be so tough. You are forced to deal with all kinds of entities that range from the company (or companies) to which you owe money, to debt counselors. And if you are too deep in debt then you probably will have to consider bankruptcy as a serious option. And if you do, then there are innumerable problems associated with that as well. Now especially, before and after you file, you need to go in for credit counseling and may have to pay fees you can ill afford now. All this does leave you a bit discomfited. So, is there a way to avoid these problems?

The only way is to keep a look out for those warning signals. It is never a simple slide down into debtsville. You will sight numerous red flags on the way, which scream at you to stop and turn back. You just have to heed this advice and turn back before it’s too late.

Authors Note: If the primary reason you are concerned about bankruptcy at this moment is that you have been injured in a Jones Act related case in which you were working out on a ship or rig in international waters then you should contact a maritime lawyer. If you happen to be in or around the Houston area, you may instead want to contact a texas maritime accident attorney.

So if your spending capacity is higher than your earning capacity, then the first thing you need to do is ground your credit card. Lock it in the deepest drawer and throw those keys away. Agreed it is a difficult proposition, but who ever said that getting out of debt was an easy task. But if you can curb those desires, you will be encouraged to spend only what you have and no more. So, if you have $20 in hand, you will not be tempted to buy something that costs $25.

Another simple trick is to enforce the saving habit. Every month, set aside a fixed amount of money for paying off your debts. Once the month is through and you still have the money, you can begin paying off your creditors, one at a time.

I really don’t know what to make of this piece of news. It seems bankruptcy filings have fallen 63 percent in South Carolina this year, thanks mainly to changes in federal law. Now, does this mean that people are no longer so neck deep in debt that they need to use the bankruptcy provision OR, is this just the calm before the storm? Only time will tell. Myrtlebeachonline.com reports:

The nonprofit Family Service Center of South Carolina receives about 25 to 30 visits a day with most people coming for debt consolidation after losing their job, said Schrendria Robinson, director of consumer counseling services. She said that is higher than before the changes in the law.

Read more: Bankruptcy filings in S.C. down 63 percent

Bankruptcy is a pretty painful proposition. You have to wipe your board clean and start all over again. Of course if you are in dire financial straits, then it is probably the best decision you could make. But that is when you think with your mind. But does your heart feel okay with it? If you are like most others, you will feel the pain long after you’ve left the whole business behind you.

Bankruptcy creates an emotional upheaval in your life and forces you out of your world of make belief. Yes you are a middle class, upwardly mobile person who has nothing to fear. And yet, all it takes are a few wrong decisions to set you on a path that exhausts you emotionally and drains you mentally. Dailymail.co.uk reports:

By going bankrupt, people are freed of their debts but lose all control over their own finances. To repay creditors, all of their bank accounts can be emptied and their assets sold. We were totally unprepared. I had no idea what happens during a bankruptcy, but it seemed as if, overnight, our lives changed completely. Here is the story of one such woman. You may find that it echoes with yours or someone you know.

Read more:Bankruptcy cost me my marriage

Bad financial planning combined with an unexpected emergency — this is just the right recipe for a person to swirl down the debt abyss. Here’s a story that may sound distinctly familiar… it just may be your story! I know once you are down and out in debt, people love to tell you about what you did wrong. Yes, bankruptcy is painful and pretty depressing. But it is a reality, one that is not going away.

But do be honest with yourself — isn’t it better to file for bankruptcy than lie to your creditors? So, if you are in debt, have tried your best to work your way out of it, and still cannot seem to find the end of the tunnel, don’t hesitate to give up. I mean you don’t have to flog yourself when the government has made this provision for you.

Michael Jackson fans (I’m one of them), this one’s a call to arms for you guys — the pop star recently ’stumbled’ across a conspiracy by former attorneys, associates and advisers to force him into financial ruin. It seems that former lawyers for the singer tried to recruit others into a petition that would drag him unwillingly into bankruptcy court. Smh.com.au reports:

"In what could be one of the biggest conspiracies in entertainment history, documents have been sent to Michael Jackson and his representatives which reveal a deliberate plan by some former attorneys as well as associates and advisers to force Mr. Jackson into involuntary bankruptcy," Jackson’s spokeswoman and manager Raymone Bain said.

Read more:Jackson claims bankruptcy conspiracy

The American Bankruptcy Institute, which has been following the developments since the new Bankruptcy Act went into effect last year, says that the number of filings have dropped dramatically — in the first half of 2006, filings were down nearly 70 percent from last year! However, there have been collateral effects of this new, tougher law — some practitioners have departed the field because they felt the statute was too complicated and there are liability risks they don’t want to take on. Nj.com reports:

Some firms are spooked by the possibility some junior associate would make some error that would expose the firm. But a lot of firms are still going to do it — they are just going to provide additional training and safeguards.

Read more: Burning Questions: Tracking the revised bankruptcy law