Business Finance

Archive for the ‘Bankruptcy’ Category

Did you know that if you do not file a reaffirmation with your mortgage company after you file for bankruptcy that the mortgage company does not have to report your good payment history?

Yes, that is correct. If you file a bankruptcy and do not include the mortgage in the bankruptcy, you still must file a reaffirmation with the mortgage company within 30 days of the discharge of the bankruptcy.

By not doing so, the mortgage company will then report to the credit bureaus that your mortgage has also been discharged. However, they will not tell you that. Instead, you will continue to make your mortgage payments and they will be glad to take them.

It won’t be until years later that you discover that they have not been reporting your good payment history to the credit bureaus. Then when you have a credit history pulled to get a new mortgage or a car loan, you may not understand why your credit score is still low.

People file bankruptcy for a number of reasons. Some because they lost a job or came down with an unexpected illness. Others because they have simply overextended themselves and need a fresh start. Whatever your reason, It is very important that you understand a few basic things about bankruptcy. So here we go. Here are 4 things you should know before filing bankruptcy.

You must list all of your debts – When you file bankruptcy you must list every single debt you have. It doesn’t matter if it is current or not. It must be listed. Do not intentionally leave of any creditors. It is illegal and can come back to haunt you.

You must list all properties and assets – Most of your assets are protected and cannot be seized by the court during a bankruptcy proceeding. However, if they are not listed, they cannot be protected. So make sure you list every asset and property that you own. It is illegal not to.

Don’t file bankruptcy unless there are no ways left to clear off the liabilities. Don’t file bankruptcy because there are many ways through which the liabilities can be settled.

A person should not declare himself as insolvent but should opt for the settlement of liabilities. In fact, insolvency is the last option for any individual. There is no benefit of becoming insolvent except for the exemption of the liabilities. A person who is declared as insolvent can never get financial help in the future though the liabilities are totally exempted for one time. Today, there are many legitimate financial firms who are helping the people to step out of the liabilities through the settlement programs.