I am from Brazil and my monograph is about it.
The laws about bankruptcy in Australia are governed by the Insolvency and Trustee Service Australia (ITSA) and this is their website for further information.
http://www.itsa.gov.au/
When you face repossession of your home or your car, you may need to declare bankruptcy to save them. If creditors have a valid lien or mortgage on either your vehicle or you real estate filing bankruptcy will temporarily stop any repossession process.
If you have already had your car or home repossessed (foreclosed on, in the case of your house) you may still be able to get either or both back if you act right away.
If you file a chapter 13 bankruptcy you should be able to keep your home and your car. If you file a chapter 7 bankruptcy you will keep both for awhile but you might ultimately be faced with repossession for liquidation.
Depending on which U.S. state you live in, and what the state laws say about the matter, the trustee of that bankruptcy may be charged with liquidating both your car and home to pay your debts.
Declaring bankruptcy, while it can halt or at least slow down the repossession process should not be looked at as the preferable cure for your financial problems.
While it is one course of action – and if it gets to the point of repossession drastic action would be required to save your home and vehicle – its always best to try to salvage the situation through debt consolidation, loans or negotiation with your creditors.
Bankruptcy will give you somewhat of a fresh financial start but it can have consequences almost as grave as repossession.
The fact that you had a bankruptcy will be on your credit record for ten years, and that is a matter of public record, unlike your other credit history. If you should run into similar financial crises and subsequently repossession possibilities you wont be able to again declare bankruptcy for another eight year.
There are two types of bankruptcy, as we mentioned before, that will help you keep your home safe from foreclosure and your vehicle from repossession. A chapter 7 bankruptcy is a short term band aid whose help depends on your homes equity and that states laws on homesteading and personal bankruptcy.
If you file for a Chapter 13 bankruptcy, however, not only will it stop that repossession and foreclosure but it will more than likely save you from losing your home at all. With a Chapter 13 bankruptcy you will make arrangements to pay some of your debt and generally all of your debt on any secured loans.
Chapter 13 is sometimes called a wage earner bankruptcy because it lets debtors who have their own consistent income create a financial plan to repay at least a portion of their debts.
With a typical Chapter 13 the debtor ask the creditors to accept installment payment for three to pay years. During this time frame these creditors are legally restricted from continuing collection efforts or starting any new ones.
The debtors level of income and the type of bankruptcy determine the time allowed for repayment. The primary benefit to choosing a Chapter 13 over a Chapter 7 is to save a home and car from repossession.
This is in sharp contrast to a Chapter 7 bankruptcy in which a trustee takes repossession of all or most of the debtors property and liquidates it to settle debts.
Once the possessions are sold and the money paid to creditors, all debts are erased whether there was enough money to pay them off or not. There are some exceptions, of course. Bankruptcy will not protect a U.S. citizen from the IRS.
James Copper
http://www.articlesbase.com/finance-articles/the-facts-about-repossession-and-how-it-works-138841.html
In this state only in court or judicial foreclosures can be used. In Maine, their foreclosure doctrine is set up, so that the property is owned by the bank until the loan is paid in full. In this state, if the borrower breaks any of the conditions set forth in the mortgage, before the loan is paid in full, then they lose all right to the property. The bank can choose to either take possession of the home or sell it. Because owning property does not make the bank money, and in fact costs it money, and further, because the federal reserve severely punishes banks for having too many bank owned properties on their books, selling the house is virtually always the banks 1st choice in foreclosing.
If the mortgage was entered into before 1975, the home buyer has a three month right of redemption. If the mortgage was signed after 1975, then the home buyer, borrower is given a twelve month right of redemption. A right of redemption period is a time frame during which the person who loses their home to foreclosure has the right to regain ownership of the home by paying what is owed. If the bank has taken possession of the home in order to foreclose, then they must retain possession of the home for the whole redemption period, before it can finalize the foreclosure.
The bank may also choose to foreclose without taking possession of the home. They must still wait out the redemption period, before they can sell the house. The terms of the sale will be set forth by the court and will vary from case to case.
Deficiency judgments are allowed in main. This is the right allows the bank to seek more money than is generated by the sale of the house. The bank would attempt to collect that money from the person who lost their home to the sale. The banks limited in how much it can seek. They can only attempt to collect the difference between what the house sold for and what an appraiser says the fair market value of the home is. Of course, the bank will not be inclined to pursue a person with little or no assets to pay. It would be a wasted of time.
In this state, the power of sale clause that allows a bank to foreclose, without going through the court system is only allowed on commercial property.
To begin, the in-court or judicial process, the bank must 1st file a complaint along with a âLis Pendensâ. This is a lawsuit against the home owner who is having trouble paying his mortgage. The âLis pendensâ is a recorded public statement by the bank that the property is being foreclosed upon. The bank must wait on the court to make a final judgment of foreclosure.
The bankâs attorney must notify the home owner no less than thirty days before the scheduled sale date that the home is going to be sold. The scheduled sale date must be advertised once a week for the three weeks leading up to the scheduled sale date. This ad must be run in a local paper with general circulation in the county where the home is located.
Foreclosure in Maine, takes quite a long time, because of the necessity of every case having to move through the courts to be completed. The average length of time for a foreclosure, beginning to end, in this state is one hundred days. This process can be delayed even longer that this by using contesting or delaying strategies. These strategies can include adjournment hearings or even bankruptcy.
Integrity 1st Consulting is your Foreclosure ebook specialist- Kathy Swift
Kathy Swift
http://www.articlesbase.com/mortgage-articles/foreclosure-laws-in-maine-467103.html
Debt settlement is a very practical approach towards effective debt management and also practical enough to avoid bankruptcy. However, there are several myths associated with debt settlement due to which many people fail to notice this alternative.
Myth1: Debt negotiation and debt consolidation are considered to be one and the same.
Fact: This is absolutely wrong. Dent consolidation combines all your debts into one sole amount to be paid at a lower rate of interest. However, this debt is recovered by some other form of security such as your house. As you pay at a lower interest rate, you make finish paying the entirely amount in a huge span of time, which actually means you are ending up paying far more than your actual debt. In contrast to this, debt settlement reduces the total amount payable by around 50% thus allowing you to pay off your debts within shorter period of time.
Myth2: My creditors will not work for sure with a debt settlement company.
Fact: Usually most creditors are willing to work with debt settling companies if you have any payments to be cleared off. However if any creditor claims not to work with debt settling company, he/she is only being mendacious because they want to impel you towards making the entire payment. They do this to elude the negotiation tactics and other laws that the debt settling companies may use for settling the debts.
Myth3: The debt settling company cannot give assurance that I will get a settlement, they will just take my money and leave me with the full amount to pay.
Fact: Nearly all debt settlement companies offer refund in case they are ineffectual in settling your debts. All you need to do before finalizing on a particular debt settlement company is to make sure that some type of provision is there if the company is unable to help you.
Myth4: My credit will be washed-up if I settle my debts.
Fact: Do remember that every dark cloud has a silver lining. Once the debt settlement plan is done with, you can then start rebuilding your credit. But incase you are unable to manage your finances efficiently in the limited budget after settlement and you again come under debts, your credit will be adversely affected then.
Myth5: I will have to pay taxes on all the forgiven money.
Fact: There are certain margins decided by the IRS beyond which your debt amount becomes taxable. If you cross the boundary then you ought to pay the taxes. To understand your situation properly, you should contact a tax professional.
Jay Moncliff
http://www.articlesbase.com/non-fiction-articles/prevent-bankruptcy-by-opting-for-debt-settlement-123455.html
After one has been forced to declare bankruptcy for whatever reason, it is a common belief that life in this world almost comes to an end in terms of finances or any future hope of getting credit again. But in reality, by faithfully following some simple steps and following the correct procedure, getting loans and new credit approved even after you have filed for bankruptcy can be done without too many more steps than anyone would have to go through.
It is particularly important to âget your ducks lined upâ with the advice offered here, because it will put you in a much better position. Your goal should not simply be to get credit approved, but to get credit approved that is not at an exorbitant interest rate. The difference in just a couple of percentage points on a car loan can still mean hundreds of dollars, and on a mortgage loan, can mean tens of thousands of dollars that you donât need to pay if you get your homework done first.
Your first step is to get a copy of your credit report. And be sure to get a copy of it from each of the âbig threeâ credit bureaus, which are Equifax, Trans Union and Experian. The reason for this is because some creditors may report to all three of them, while others may only report to one or two of them. You can pretty much rest assured that if you are trying to get credit approved for any type of sizeable purchase, the credit grantor is going to check with more than one of the credit bureaus, and very likely all three of them.
The other reason for getting a copy of your credit reports is because, believe it or not, the majority of credit reports contain errors. These errors do not get fixed automatically, but it is up to the consumer to ânoticeâ the error and insist that it be corrected. Having inaccurate information on your credit report can also cause you to have a lower overall credit score, and perhaps prevent you from getting the best loan deal possible.
Getting your credit report cleaned up as much as possible is going to take time, so if possible, be sure you allow time to get inaccurate information removed. The laws today state that credit bureaus have up to 30 days to either verify that they information they have on file is correct, or to remove it, and that 30 day clock does not start ticking until AFTER you have notified them of an error or inaccuracy.
For a sizeable purchase like a mortgage or a car, consider using a loan broker. Loan brokers deal with hundreds of different lending institutions, and they should be very familiar with which ones are strict and which are more lenient. Your goal is to have the broker understand your situation of having declared bankruptcy, and find the right lender who can accept that situation under the right circumstances and still not charge sky-high interest rates.
One of the most important things you can demonstrate is a good financial track record after your bankruptcy. That means paying all your bills on time with more than the minimum payment due, even your electric bill and your phone bill. A demonstrated track record of being âfinancially squeaky cleanâ in your post-bankruptcy days will go a long way towards a lender being willing to give you a second chance.
Jon Arnold
http://www.articlesbase.com/finance-articles/how-to-get-loans-approved-after-bankruptcy-88897.html
http://news.yahoo.com/s/ap/20090528/ap_on_bi_ge/us_gm_bondholders
To the Liberals, Obama is the LAW.
Consumer credit counseling has grown significantly in the past couple of decades, due mostly to the many people in this country who have accumulated a high amount of debt. Yes, some individuals and families have accumulated such debt and are in a tough financial situation because of unforeseen events, medical expenses, divorce or death, but the majority of the debt in this country is credit card debt. This debt has accumulated so quickly that consumers are not able to meet their minimum payments, which usually only cover the high interest rates applying very little if anything to the principal balance. Bankruptcy was the only option for many people, until consumer credit counseling companies were established as an alternative. These agencies help individuals with repairing their credit by working with their creditors to resolve the debt, make satisfactory credit card debt settlement arrangements and avoid bankruptcy.
New bankruptcy laws have recently come into effect that require individuals to seek consumer credit counseling first and try to find come to an agreement with creditors short of involving the legal system. Bankruptcy is a drastic step and remains on your credit report for ten years, though you can file every seven years. Of course, this is not recommended. After filing bankruptcy, it is possible to get credit again with a secured loan or secured credit card but this is only a small step toward repairing the damage caused by the bankruptcy. Your credit score is reviewed for many reasons, including renting or buying a home, purchasing a vehicle, obtaining employment, applying for a loan or even opening a bank account.
However, consumer credit counseling is not a free service and this, unfortunately, is a barrier in itself for those individuals too far in debt to afford the service. Consumer counseling works on your behalf to help improve your situation, by reducing interest rates, late charges, over limit fees and monthly payments. The counseling agency can consolidate your monthly payments into one payment paid to the counseling agency which will then make the payment on your behalf. The counseling agencies are there to help you reach financial stability and get back on your feet. You can eliminate your debt and settle debt concerns with the help of experienced credit counselors. They will help educate you on how to stay out of debt while you rebuild your credit and find hope for you financial future.
Greg K. Hansward
http://www.articlesbase.com/travel-articles/consumer-counseling-as-an-alternative-to-bankruptcy-85310.html
They have made it where you must qualify for a chapter 7 which is total liquidation and most of us do not qualify because we are not as far into debt as they think that we should be but they can let you file a chapter 13 which is reorganization that makes the payments smaller but the bill higher. You also are not able to file for 8 years after you already have filed even if it was discharged.
I guess to appreciate the new law you have to be on the "receiving" end.
My sister was renting her house to someone. After a few months of hardship stories, she finally had to start evicting them after $2000 in back rent had accumulated.
Then they filed for bankruptcy.
Then 2 days after the creditors meeting, they apply and get a brand new mortgage, putting down $5000 on the loan.
That’s abuse of the bankruptcy system.
Now, on the other hand, we see the 78 year old retiree who runs up $20,000 in medical bills. No way to ever catch up, rent runs behind, credit cards get maxed out…..
Or the husband with 2 kids, factory worker getting $25 an hour and thinks his job is secure. Gets laid off, can’t find any jobs that pay more then $9 an hour. Wife can’t work cause she’s raising kids…….
In both of these cases, creditors don’t care. They want their money. Collection agents relently hound and threaten them.
Yeah, I know both sides of the story.
IRA’s are protected from creditors as long as the assets remain in the account. That is why it cannot be used as collateral for a loan. Once the money is distributed (withdrawn), all bets are off (you could even end up with a lien against distributions).
This provision in bankruptcy laws was put in to protect banks. A protection that they’ve clearly abused. It’s time to take it away.
While I would make a fortune if I could do this, literally millions, I have to disagree. I was given cash money, I need to repay it.