| Getting Approved After Bankruptcy (bankruptcy)
|
| ACS provides free articles on credit counseling, debt consolidation loans and refinance mortgage. |
Getting Approved After Bankruptcy
[ Bookmark this page! ] [ get HTML Version ]
Bankruptcy And Mortgage Refinance Rates
It isn't difficult to get approved for a California mortgage refinance after bankruptcy, but it is difficult to get low interest rates and fair loan terms. The exact impact of bankruptcy on interest rates will depend on the type of bankruptcy you filed and the state of your credit upon applying.
Mortgage Refinancing After Chapter 7 Bankruptcy
If you filed Chapter 7 liquidation ... Read bankruptcy article
Bankruptcy Help
What is bankruptcy?
Bankruptcy is one way of dealing with debts you cannot pay. The bankruptcy proceedings will free you from overwhelming debts so you can make a fresh start, subject to some restrictions; and make sure your assets are shared out fairly among your creditors. Anyone can go bankrupt, including individual members of a partnership.
How are you made bankrupt?
... Read bankruptcy article
Getting Approved After Bankruptcy
If you plan to apply for a loan, you need to do some homework beforehand in order to increase your chances of getting approved. A bankruptcy on your credit report is really a drawback, however, some lenders are willing to approve loans even if you have gone through a bankruptcy as long as it has been discharged and you can prove that you are to be trusted. To prove such a thing you need to make sure that your credit behavior shows no stains for a significant period of time.
Recreate Credit by Paying on Time
To start recreating your credit, you need at least six months of uninterrupted bill payments. During this period you need to avoid missing payments, paying late, opening new bank accounts, closing existing ones, requesting credit cards or loans, having too many credit inquiries on your credit report, etc.
Just pay your bills on time and reduce your debt exposure as much as possible without closing accounts or taking new debt. Slowly, your credit score will begin to rise and recover. Your credit history will start to show an uninterrupted pattern of timely payments that will aid you in this new task.
Credit Cards Can Aid Your Credit Repair
Once you can obtain a credit card, do so. A credit card will aid you in recovering your credit because all the payments are immediately recorded into your credit report as credit card issuers report to credit bureaus on a regular basis. Just make sure your payment behavior is impeccable.
This implies paying always on time, never (absolutely never) missing a payment and paying your balance in full. Try as hard as possible to avoid paying only the minimum payment on your credit card as this creates a bad antecedent and risks your ability to repay if any unexpected situation reduces your available income.
Personal Loans Can Also Boost Your Credit Score
At this stage you might be able to successfully apply for a personal loan. Start with small loans as there are a lot more chances of getting approved this way. Also, request short repayment programs, this will not affect your credit score and you'll improve your credit history as soon as the loan is repaid in full. After repayment you'll be able to request loans for larger amounts and so on.
The loan payments will also be recorded into your credit report, raising your credit score and improving your credit history. Though it may take a while, this procedure will eventually lead you again to having a good credit score and to recover your ability to get finance at more reasonable terms: You'll get higher loan amounts, longer repayment programs and lower interest rates. A good credit score is just a few steps away!
Kate Ross is a professional consultant with fifteen years in the financial field. She helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and prevents consumers from falling into financial scams.
Bookmark this page | Search this site | E-mail to a Friend
Bankruptcy Liability
Are You a Director of a Corporation? Do You Know Your Liability?
If you sit on a Board of Directors of a corporation then exposure to liability exists under various statutes. For example, unpaid wages and vacation pay, workplace liabilities, liabilities under corporate statutes as well as environmental liabilities are a major concern of the corporate director.
Amounts owing to the Crown with respect to taxes are the most common of the liability claims. Unremitted source deductions which consists of income taxes, employment insurance and Canada Pension Plan premiums from employee wages is the liability that the Crown has been very aggressive in collecting in recent years. The Crown is also being more aggressive in the collection of other taxes such as unpaid sale taxes and the ever controversial Goods and Service Tax (GST).
A common scenario in creating director's liability is that a business that is struggling financially is using the unremitted source deductions as capital to keep the corporation in business rather than close the doors. However, when the corporation realizes that the unremitted source deductions is not enough capital to keep the operations going, the company goes out of business. Canada Revenue Agency (CRA) has a statutory right to go after the directors for unremitted source deductions plus interest and penalties.
For CRA to successfully claim against a director it must meet certain requirements under the Income Tax Act. CRA must file a certificate in respect of the corporations tax liability and CRA must attempt to have execution against the corporation and the execution must be returned unsatisfied. In the case of a liquidation in bankruptcy, CRA must prove its claim within 6 months of the date of bankruptcy. If these actions have not been met by CRA then the director has no liability.
CRA also has only 2 years to attempt to collect the liability from the director. If the 2-year period passes then the director escapes any liability for the unremitted deductions. In order to attempt to collect from the director, it must be established that the funds could not be collected from the corporation or from the Receiver or Trustee in bankruptcy.
CRA has first priority on all assets of a bankrupt company. If a company files a bankruptcy CRA has priority over all other secured creditors even those who had security on the assets of a company prior to CRA having a debt owed, such as a General Security Agreement by a banking institution. This priority is given to CRA through the Income Tax Act. If the company continues to go forward in a receivership CRA must be paid for any arrears in crown taxes.
There are only a few defenses available to a director in order to avoid payment of the liability. In order to be liable you must be a ''director in law" at the time the source deductions were not remitted. For example, the individual may not have been properly appointed as a director or may have resigned prior to the failure to remit.
If the above exemptions do not apply then the only defense is the "due diligence" defense as set out in the Income Tax Act. This defense provides that the director is not liable for the corporation's failure to remit source deductions where he/she exercises the degree of care, diligence and skill to prevent the failure that a reasonably prudent person would exercise in a similar situation.
In determining if a director has acted with due diligence the court will look at a variety of factors such as, the capability of the person, their business knowledge, education and the actions taken by the director to prevent the failures. The courts have stated that there is a positive duty to take action to prevent the failures.
To prevent failure the director should familiarize himself with the withholding and remittance requirements. Ensure that an appropriate system is in place to withhold and remit all taxes and require on a timely basis written reports to ensure that the remitting procedures are being done correctly.
It is human nature especially for most entrepreneurs to do anything to find away to keep the doors of their company open. This determination sometimes leads to the careless use of unremitted source deductions and other government taxes to fund the operations. The courts have said where a corporation reaches the point where it cannot issue a remittance cheque for fear that it won't be honored it is time to close down the business. Thus, the mere decision or will of the entrepreneur to keep the doors open may result in the director reducing his/her ability to rely on the due diligence defense.
Joel Easter, joined Scott and Pichelli Limited as a student in 1992. Joel has steadily worked his way though the company ranks and obtained his trustee license in 2000.
Joel has wide ranging experiences in both consumer and corporate bankruptcy. Joel has headed the restructuring of many companies and has helped several professionals reorganize their practices and regain profitability.
Joel has a compassionate approach when dealing with stressful financial issues. His genuine interest and concern in people enables him to provide practical solutions to each individual.
Top rated articles for bankruptcy
1. Bankruptcy Services
When the 2005 Bankruptcy Act was created, this affected the bankruptcy laws in California, as well as other states across the country. Within this act, those involved in California bankruptcy are requ... Read bankruptcy article
2. Bankruptcy
If you cannot pay your debts one option is to file for bankruptcy. Your creditors can also make you bankrupt. If you go bankrupt then your assets can be sold to raise money to settle your debts. Outst... Read bankruptcy article
3. IVA - Truth Revealed
IVA Basics
An Individual voluntary arrangement (IVA is a government alternative to bankruptcy. You may feel there is no other solution other than going bankrupt. This is where you can use a... Read bankruptcy article
4. Secured Bankruptcy Loans
Secured bankruptcy loans are one of the financial options available to those with damaged credit. Borrowing becomes easier, if the borrower can offer sufficient collateral. Secured loans are often obt... Read bankruptcy article
5. If I go Bankrupt do I lose my Car
Throughout Ontario, and in fact everywhere in North America, people drive cars, and they worry that they will lose their car if they file for personal bankruptcy. The rules are different in every prov... Read bankruptcy article
6. Why Personal Bankruptcy is a Wrong Option
An increasing number of retired people are finding themselves faced with more debt than they can handle, and are faced with a decision: is bankruptcy a solution to their financial problems?
... Read bankruptcy article
7. How Credit Cards Aid Bankruptcy Loan Approval
Recovering your credit is essential when you want to get approved for a loan after bankruptcy. Most lenders will just run away at the sole mention of the word bankruptcy, so in order to reduce the ris... Read bankruptcy article
8. Chapter 7 Bankruptcy Eligibility
Most people who file for bankruptcy choose Chapter 7 instead of Chapter 13 because it's fast, effective, easy to file, and doesn't require payments over time. Chapter 7 bankruptcy usually takes the le... Read bankruptcy article
9. Bankruptcy - A Way Out
Have you suddenly found yourself swimming in rivers of debt? Have you found yourself avoiding the phone like the plague daily because of harassing creditors? Are you out of money? Have you, without kn... Read bankruptcy article
10. Bankruptcy Reviewed
Bankruptcy is a very misunderstood process and it has been a hush-hush subject for so many families facing financial difficulties. Once you understand your options, you can better decide what choice y... Read bankruptcy article
Credit Counseling and Debt consolidation services in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,
Getting Approved After Bankruptcy
Debt consolidation services in Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania,
Debt consolidation services in Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and Wyoming.
Add website or submit URL link of your site to 1000 free directory