If you’ve filed for bankruptcy in California, but need a personal loan, it can be a challenge to find a bank that will lend you money or give you a credit card. However, having a bankruptcy on your credit report doesn’t mean that it’s impossible to secure a personal loan. You still have a couple options available to obtain a loan even with bad credit.
Secured Loans
If you have savings in the bank, you can apply for a secured loan. The bank will place a hold on the money in your account for the amount that you want to borrow just in case you’re unable to pay the loan.
There are some banks who will give you an unsecured loan, but the downside is that you will most likely have to pay high interest rates. Sometimes the bank will ask for a co-signer with good credit who will be willing to take on responsibility of the loan if you can’t make payments.
Payday Loans
Another option to obtain a personal loan after filing bankruptcy is to apply for a payday loan, otherwise known as a “cash advance”. You can get these type of loans at some check cashing places, a store that specializes in payday loans, or you can easily apply for one online.
Generally, all that is required to receive California payday loans is that you have an active bank account and be employed. This short-term loan can help if you’re in a bind and just need a little cash to cover expenses until your next payday. In the state of California the most that you can borrow is $300.
With a payday loan it’s highly recommended that you only borrow what you need. If you borrow too much, you could short yourself when payday rolls around and get caught in a cycle of borrowing money. Remember that you do have to pay back the loan in full plus any fees, which are typically high.
As you can see, getting a personal loan after filing bankruptcy isn’t all that hard. Once you get your credit back in shape, you should have enough practice of borrowing money responsibly. Then you can go back to applying for regular loans with lower interest rates.
Photo Credit: Anthony Easton
by Arkady Kats
San Diego bankruptcy lawyers are seeing many more clients than they were last year. The statistics on San Diego bankruptcy are high and getting higher. Thought to have a more stable economic environment than many places and regions, it is now evident that no region of the country is immune to the havoc that has been dealt out by the Great Recession. San Diego bankruptcy rates are up quite a bit year to date.
Many people are finding that they have to reorganize their finances. Often this is through no fault of their own. Sometimes a job was lost or there was a sudden expense or maybe a mortgage payment was suddenly increased.
No matter what the reason, there has been a flood of people coming into lawyers to have them work with the courts to get them back on a better financial footing.
Many people arrive at their lawyer with no plan. They are mostly in shock. Just months prior they were solid, bill paying citizens. They were meeting the mortgage payments, the credit card bills and the college tuition without a problem.
But then maybe a job was lost, or there was an unexpected medical bill or even the credit cards increased the minimum payment and interest rates.
This tipped them over the edge.
So they had to search for lawyer. This can be as easy as talking to family member or relatives. It might be surprising to find how many people have had to seek out help with their finances, and that includes family and friends.
You may be advise to file Chapter 7 or Chapter 13 consumer bankruptcy, or your advice may be more conservative. You may be told to sell some assets or get a second job.
No matter what the advice, it is a sure bet that someone on your very block, besides you, is reorganizing their finances. One by one it is a procedure that is helping to stabilize the local economy.
For experienced, knowledgeable and trustworthy bankruptcy assistance, contact the attorneys from http://www.legalhelpers.com. Call toll-free 800-260-1402 today for your initial free consultation or come into one of their 100 offices across the country.
Photo Credit: Alan Cleaver
Some of the benefits of filing bankruptcy include:
- Wipe out the majority of your debts. (Student loans, certain taxes, alimony and child or other court ordered support payments are excluded.)
- Stop wage garnishments.
- Stop harassing phone calls from creditors.
- Stop repossessions.
There is a stigma associated with bankruptcy and many people are too embarrassed to file, however, if you could live a more stress-free life, then isn’t it worth it? Once you have this behind you, you can start a new life and look forward to creating abundance instead of focusing on the debt. Hopefully you will have learned some powerful lessons about personal finance and will be smarter about borrowing money in the future.
By Barry Nagassar
In this day and age, most individuals and companies are very careful to keep their financial information as private as possible. Publicly held companies are required to divulge a wide array of financial results on a regular basis in order to keep their shareholders apprised of their status, but most if not all privately held companies and individual citizens would prefer to keep the state of their financial situation a closely guarded secret. However, if they run into trouble and need to declare bankruptcy, their finances matters can be made available in public record.
Most people would be surprised to learn just how much personal information is laid bare in bankruptcy court records. Companies (1) even offer to provide such information as "name and alias, address, business name, file date, county of filing, case number, social security number, and judges initials" from any bankruptcy proceeding within 1 day of receiving the request for a fee of just $23. For most people, aside from the embarrassment of being identified publicly as being bankrupt, the most troubling piece of personal information being legally sold here is the social security number.
Lawyers and those providing bankruptcy counseling would be well advised to inform their clients of the exact nature of the personal information that will be made public in the filing state to their clients as another factor to be considered when contemplating bankruptcy. In some states it may be possible to seal certain pieces of information relating to the court proceedings, or otherwise keep them out of the public record. Bankruptcy attorneys are familiar with the steps that can be taken in their state on behalf of their clients and ensure this service is a part of their services for clients involved in bankruptcy proceedings. Only an experienced bankruptcy attorney can provide absolute details on the nature of protecting your personal information during and following bankruptcy proceedings. It is important for you to request this protection.
Ensure you retain professional assistance to protect your identity. Social Security numbers can also be used to create new identities. With a social security number and a name, an identity thief can get a new driver's license in your name, open new bank accounts, secure credit cards, or even take out a mortgage. There are even cases were law abiding citizens have been arrested and jailed for actions committed by an identity thief using a falsely gained driver's license or other documents when confronted by police.
Not taking steps to protect your personal information correctly during bankruptcy proceedings can also increase the exposure of your information to marketing databases which are used to target specific individuals for direct marketing campaigns. People who have undergone bankruptcy proceedings can become targets for high interest rate credit cards, or other offers designed to take advantage of their current financial distress.
While many of those considering bankruptcy are vaguely aware that their name and the fact that they filed for bankruptcy will become a matter of public record, very few are aware of the amount of information that may be released as a result of their filing. Bankruptcy proceedings can mean opening oneself to a greatly increased risk of identity theft, hacked accounts, internet scams, and unsavory financial product marketers if you do not seek professional assistance.
The American Bankruptcy Institute reports(4) that in the second quarter of 2009 alone, the state of California recorded more than 53,000 bankruptcy filings giving California the distinction of being the state with the highest number of bankruptcy filings in the United States, a distinction that it has held consistently for years. Just to provide a reference point, Florida had the second highest number of bankruptcy filings in Q2 '09 with less than half that number. The high volume of bankruptcy filings in the state of California, make the issue of publicly available, personal information released in bankruptcy filings a particular concern for residents of the state.
So take the necessary steps to go through the process of bankruptcy correctly. If you must go through proceedings then you MUST seek an experienced bankruptcy attorney prior to making potentially disasterous financial decisions. Also, ensure you do everything you to protect your personal information. Fact is, if you are going through bankruptcy proceedings then you'll have no choice but to open information for review. Protecting who ultimately views that information is paramount to ensure you recover over the long term.
Sources:
1. Discreet Research, discreetresearch.com, retrieved August 19,2009.
2. Release Number 91. Judicial Council of California, 12/18/2001., retrieved August 19, 2009.
3. Gellman, Robert. Public records. Access, Privacy and Public Policy. Center for Democracy and Technology. , retrieved on August 19, 2009.
4. Bankruptcy Filing Statistics-Filings by State. American Bankruptcy Institute. http://www.abiworld.org/AM/AMTemplate.cfm?Section=Home&CONTENTID=58414&TEMPLATE=/CM/ContentDisplay.cfm, retrieved August 19, 2009.
If you're in the San Diego area then visit CCLegal Group: San Diego Bankruptcy Attorney with extensive experience. CCLegal Group provides legal solutions with your needs in mind.
by Joe Marcotte
Let me start this article by saying that there is a great deal of speculation on what's happening with the moratorium that many banks have put on the foreclosure process and how it could affect the downtown San Diego real estate market.
In fact, there is a local San Diego attorney who is advocating that home owners, that have lost their homes in foreclosures, break in to their houses and resume residency. While I don't want to get into my opinion of the legal basis for such theories, I do want to share some of the professional information that has come my way.
According to The California Association of Realtors, the situation is constantly changing. Below is a set of factual occurrences, as published by C.A.R, on 10/12/10. As more information is released, I will publish new articles.
· In late September and early October some lenders and servicers began voluntarily halting foreclosures in select states while they reviewed their foreclosure processes.
· So far, only Bank of America has extended its foreclosure moratorium to California, where the vast majority of foreclosures are conducted without a court order. Foreclosures in the other 23 states are processed through the court system.
· Non-judicial foreclosures in California, however, do have legal requirements that lenders must follow. For example, California law requires that lenders for certain mortgage loans made between Jan. 1, 2003, and Dec. 31, 2007, attempt to make contact with borrowers to discuss options for avoiding foreclosure at least 30 days before filing a notice of default. Lenders also must sign a declaration in the notice of default stating that they tried to contact the borrower, made contact with the borrower, or fall within an exception (such as a bankruptcy filing).
· The lenders and servicers that have placed their foreclosure moratorium on properties in the 23 states where courts are involved in the foreclosure process include: Goldman Sachs Group Inc's Litton Loan Servicing, Ally Financial Inc.'s GMAC Mortgage unit, JPMorgan Chase, and PNC Financial.
· These lenders/servicers have only temporarily halted their foreclosures while they review their foreclosure process. This is in response to findings that questioned whether some lenders/servicers were following the correct procedures to foreclose on a property.
· This halting of foreclosures is a voluntary action taken on the part of these lenders/servicers and has not been mandated by either the states or the federal government.
· Some members have begun to report the immediate impact of this moratorium on transactions that involve foreclosed properties. Delays in escrow and the removal of listed foreclosures are temporary results of this moratorium.
· The immediate impact on the market will be the slowing of home sales, which could put upward pressure on home prices in the short term. The long-term effect on the market is uncertain at this point as it depends how long the moratorium remains in place.
· Assuming the moratorium is lifted in the next month, the flow of REOs to the market should resume, but the uncertainty created by the moratorium may cause hesitation on the part of buyers.
· Federal agencies, including the Office of the Comptroller of the Currency, the Federal Housing Administration, and the conservator of Fannie Mae and Freddie Mac, have asked lenders and servicers to review their foreclosure processes. This review would apply to all states including those like California where the vast majority of foreclosures are non-judicial.
The participating lenders and servicers believe their internal review processes should take anywhere from a few weeks to 30 days to complete.
Joe Marcotte is Real Estate Broker and president of the Downtown Condo Showroom. As a resident of San Diego County since the mid 80's, Joe has owned properties in the beach communities and the Downtown/Uptown Districts. Joe brings a high level of integrity to every client relationship: "My goal is to promote a business relationship founded on open conversation, truth, and integrity."
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Photo Credit: Taber Andrew Bain on Flickr
by Paul Staley
DIVORCE AND BANKRUPTCY
Divorce and bankruptcy are close enough to be kissing cousins. Lots of times, one follows the other. Financial troubles often are a major factor in the breakdown of a relationship. Nobody wants to file for bankruptcy. People wait to see if the financial issues work themselves out. Many times they wait too long and the relationship suffers. And if things were bad before the divorce, once the parties have to pay to operate two households instead of one, the financial situation becomes worse.
If you are married and considering divorce, get information about bankruptcy BEFORE the divorce is final. If you and your spouse can get along well enough to file a Chapter 7 bankruptcy before your divorce is final, you can probably avoid paying the additional attorney fees and filing fees you would have to pay if you file bankruptcy separately. That can be a good chunk of change.
Filing a Chapter 7 bankruptcy jointly, even while the divorce is going on, can be an especially good thing: it can also make the divorce much simpler. How about no billable hours trying to figure out who should pay which debts? Just chuck them all into the Chapter 7.
Chapter 13 bankruptcy is, well, problematic for a divorcing couple. That is because it requires cooperation for the whole length of the Chapter 13 plan, which is at least three years and can be as long as five years. Who wants that long-term commitment to a transaction with a person you're trying to get away from? Chapter 13 probably isn't a good solution for any couple divorcing.
A Chapter 13 bankruptcy happens when there is some really good reason not to file a Chapter 7 bankruptcy, or sometimes for other reasons. Mostly, it is when the clients have enough income to live on and then some - maybe as little as a couple hundred bucks a month - left over. That extra money goes to the Chapter 13 trustee who then pays what is required to the creditors.
If you are thinking about divorce and you've got enough financial problems to consider chapter 7 bankruptcy, go see a bankruptcy lawyer. Most bankruptcy lawyers will talk to you for free at least for the first meeting. Sometimes the elimination of the financial stress can give a couple enough relief for the two of you to figure out if the other seemingly insurmountable problems in the relationship can maybe be resolved after all. Good luck out there.
Paul Staley is a bankruptcy lawyer in San Diego California. Paul has practiced bankruptcy law for last sixteen years. You can find him on the web at http://www.bankruptcy-sandiego.com
by Daniel L. Warren
DISCLAIMER - It should be noted that although bankruptcy is Federal Law there are many distinctions that exist between different states and jurisdictions. Many jurisdictions have their own set of laws that apply to exemptions as well as median income. For this reason this article should only be considered a rough guide, and by no means a definitive answer. If you need a certain answer you should contact a bankruptcy attorney who is knowledgeable and practices in your jurisdiction.
As a Bankruptcy Attorney I receive calls everyday from people that want to know if bankruptcy is right for them. This is a question that is much more complex than it may seem. Bankruptcy has many variables, as do the clients. Certain clients might benefit from filing for bankruptcy under Chapter 7 of title 11 of the Bankruptcy code, while others might find Chapter 13 to be more beneficial. Unfortunately I won't be able to provide you with all the answers in a simple article right now. But I will provide a little bit of direction that will help get you started.
Before we get started you should understand the different Chapters of bankruptcy. For most individuals you will only need to know about two - Chapter 7 and Chapter 13. Chapter 7 is the liquidation of one's debts. In other words it will usually allow a debtor to wipe out his/her debts without having to make any additional payments. It does get more complicated than that, specifically when you have equity in some of your properties. We will go into that a bit more later. Chapter 13 bankruptcy requires a debtor to propose a payment plan to the United States Trustee. This payment plan will be used to pay a percentage of your debts, sometimes all of them, over the next 3-5 years. There are many other differences between the various chapters of bankruptcy but that should be good enough to keep us moving right along!
After explaining the difference in the chapters to clients they usually want to do a Chapter 7 since it does not require a payment plan. The concern at that point is whether or not you actually qualify for a Chapter 7 bankruptcy. Determining if you qualify usually requires your attorney to conduct what is called the "means test." This is essentially a formula that weighs your incomes versus your expenses. However, it is not simply a test subtracting expenses from income. It actually is a formula that is averaged out over a 60 month period. This means that some of your expenses might come out lower on the means test than they do in your current payments. Debtors whose income is higher than the median income in their jurisdiction will be required to run an in depth and detailed means test which requires more information. Having a higher income doesn't automatically disqualify you from bankruptcy. It just means you would have to show a higher amount of expenses.
For explanation purposes let's say you do qualify for a Chapter 7 bankruptcy under the means test, congratulations! The next thing you need to consider is what property you own. Real property and personal property. That means houses, cars, jewelry, and anything else that is of considerable value. The reason this is important is because once you file bankruptcy everything you own technically becomes part of the "bankruptcy estate." Once in the bankruptcy estate the United States Trustee has the ability to take possession of that property and sell it, using the proceeds to pay back your creditors. This might sound bad, but don't worry! If your property is "upside-down" (i.e. - you owe more than it is worth) than you do not have to worry since no equity exists.
But lets say you do own property and it does have equity. What can you do? Does this mean you can't file bankruptcy?
NO! You can still file bankruptcy so long as you are protected by what are called exemptions. Exemptions are basically laws that allow debtors to keep property from being taken by the Trustee and sold. In the Southern District of California CCP Section 704 provides that a debtor is able to exempt anywhere between $50,000 up to $125,000. These numbers increase based on being married and/or disabled.
As for your car - In the Southern District you can exempt up to $3,525. And many of you might say, "well that is not enough, my car is worth more." And that is a common problem. But don't worry - the law makers didn't forget about those of you in this situation! CCP 703.140(b)(5) outlines what is called the "wildcard" exemption. This is basically an exemption in the amount of $23,250 that can be used on a variety of assets. So if the exemption allocated to the automobile is not enough in your case, you can also apply the wildcard exemption to cover the difference. This way your entire vehicle would be protected during the bankruptcy.
There are many other exemptions outlined in the California Code of Civil Procedure sections 703 and 704, as well the United States Bankruptcy code. These exemptions allow you to protect many of your personal belongings - homes, cars, jewelry, tools of the trade, personal injury recoveries and more.
Please note that this article wasn't intended to give you all the answers, but provide you with a very basic understanding of bankruptcy and how it might be possible for you, if you need it. Many people think that because they own property there is no way they could file for bankruptcy. This article hopefully provides you with enough information to get the ball rolling. If you still think it might be right for you I recommend you contact a competent attorney in your area. To view other articles written by the same author, and additional articles relevant to bankruptcy please read these articles [http://sandiegobkattorney.com/articles.html]
Best of luck!
-Nothing in this article shall be construed as legal advice. Nor shall anything in this article be construed to create an attorney/client relationship. Nothing in this article shall be considered privileged. Bankruptcy can be very complicated and requires the interpretation of many laws. Laws can only be interpreted by a bar certified attorney. Beware of any paralegal or bankruptcy petition preparer that is not an attorney. It is illegal for them to interpret laws and apply exemptions, thus, there are times the Trustee will have issues with your petition.
Daniel L. Warren, Esq. is a bankruptcy attorney in San Diego, CA. For more information relating to bankruptcy please contact Daniel L. Warren, Esq. His contact information, and more information regarding bankruptcy can be found at http://sandiegobkattorney.com
