In addition, there are other important questions you will want to ask a potential mortgage broker - ones that could help you save money and/or increase your chances of qualifying for a mortgage after bankruptcy. While there isn't enough room to cover them here, I go into detail on them in After Bankruptcy Credit Solutions.
Few people set out to file for bankruptcy when they get into debt. The problem is that getting into too much debt can easily spiral out of control. That's why it's a good idea to build up a financial savings cushion to protect yourself from getting into debt when a job loss or unexpected expenses come your way.
Filing for bankruptcy is not something to be taken lightly but at the same time is quite often the only option for families who've reached the end of the road. With Bankruptcy Mississauga set to increase over the next few years the number of highly skilled lawyers who can help families is also increasing. These skilled attorneys can guide a family through the legal complexities of bankruptcy and fight for the best option for the clients.
Make sure that you pay on time or early on any credit account that you retained after your Bankruptcy filing, such as a house or car. This will show creditors that you are now managing your credit and will improve your credit score.
Make a detailed list. Every creditor and debt should be listed on your application. Even if your credit cards do not carry a balance at all, it should still be included. Loans for cars or recreational vehicles should also be included on your application. Full disclosure is imperative during this part of the bankruptcy process.
In chapter 7, the trustee liquidates any non-exempt property of the estate, and makes distributions to creditors. The chapter 7 trustee will examine the debtor's pay advices and tax returns which are required to be submitted under the current law. The trustee will ask the debtor questions, under oath, to determine whether or not there are assets available for distribution. Trustees in chapter 12 and 13 have similar duties to a chapter 7 trustee and the additional responsibilities of overseeing the debtor's plan, receiving payments from debtors, and disbursing plan payments to creditors.
Chapter 13. Chapter 13 bankruptcy is like a Chapter 11 only for individuals. The individual still retains control and ownership of all his assets. The individual is required to work out a three to five year repayment plan. In some cases, a portion of the debt may be discharged, but this is dependent on the income of the individual. There is also a maximum amount of debt allowed.
Shortly after you file your bankruptcy papers, you will receive a notice informing you of the name, business address, and business telephone number of your trustee. This person is appointed by the Office of the United States Trustee, a branch of the Department of Justice. A trustee may be a local bankruptcy attorney, or a non-lawyer who is knowledgeable about chapter 7 and chapter 13 bankruptcy and the rules and procedures followed by the court.