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Bankruptcy Home Equity Loan Choices
Bankruptcy is a legal proceeding where a debtor declares an inability to pay debts as they become due. Since the Bankruptcy Abuse Protection and Consumer Protection Act of 2005, personal bankruptcy filings for the year ending June 30, 2006, fell 9.46 percent to 1,453,008.
The two most popular bankruptcy options are:
Chapter 7 - Its purpose is to achieve a fair distribution of the debtorâs available non-exempt property. Unsecured debts not reaffirmed are discharged, providing a fresh financial start.
Chapter 13 - Available only to someone with regular income whose debts do not exceed specific amounts. It is used to budget future earnings under a plan to pay unsecured creditors.
In a chapter 7 bankruptcy, every state has its own laws regarding the type and amount of property a person can keep. Under chapter 13, a person does not have to surrender any property.
âItâs important to have competent counsel advise you,â says Ted Janger of The American Bankruptcy Institute; âboth about the choices among chapters and about how best to make sure that bankruptcy operates to solve your financial difficulties, rather than just as a hiatus.â
Bankruptcy negatively impacts your credit in the short and medium term because it remains as a black mark on your credit report for up to ten years. However, some creditors offer new loans to bankruptcy debtors because they cannot file bankruptcy again for many years.
To view a Bankruptcy Checklist from The American Bankruptcy Institute, or to see if a bankruptcy home equity loan makes sense in your particular situation, you can complete the no-obligation loan request at Bad Credit Mortgage Refinancing Now.This article is free for republishing
Source: http://www.financealley.com/article_198105_76.html
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, mortgage refi, obligation loan, personal bankruptcy filings, unsecured creditors, unsecured debts.
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