When people file for bankruptcy, they usually see that filing as the end of a chapter in their life. What some people fail to realize is that the bankruptcy can actually be a fresh start that enables them to realize their dreams. Residents of New York might be interested to hear about how one man emerged from personal bankruptcy to grow a thriving business. Five years ago, the man owned an independent film company that he founded 27 years prior with his brother. In 2009, the industry collapsed. He had over $15 million in business debt that he had guaranteed. He realized that with only $1,700 in his bank account that he needed to file personal bankruptcy. He then turned to social media and blogging to reinvent himself. He studied the film industry. He looked at the mistakes he made prior to filing for bankruptcy. He ultimately decided that he should focus on one thing – digital distribution. He created a business model. In January of 2010, he met a film producer and financier with whom he bonded. The financier and another man agreed to invest $200,000 to prove a concept the man came up with. The model was successful,… Continue reading
Sometimes New Yorkers get into costly situations — such as a divorce — that wipes out a large portion of their finances and assets. They may turn to bankruptcy to wipe out debt and obtain a fresh financial start. But what happens when parents file for bankruptcy while paying on their child’s student loans? Bankruptcy often wipes out credit card debt, car loans and personal loans, but it usually does not do anything with student loan debt. Even if the debt is listed in the bankruptcy proceedings, it won’t get erased unless a complaint is made against the lender during the bankruptcy filing. It’s very rare that this happens because it is very expensive for someone to do. So unless this step is taken, the parent is still on the hook to repay the debt. This means that the lender can still collect the unpaid balance through various means, such as wage garnishment, Social Security or through tax refunds. In addition, even if the child signed off on the student loan, the parent can still be held liable even in bankruptcy. For those struggling with debt, bankruptcy can be a viable option. However, it doesn’t get rid of all debts…. Continue reading
Many New Yorkers may file for Chapter 13 bankruptcy in order to pay back overwhelming debt through manageable payments. In order to free up some extra cash to pay off these debts, consumers may consider refinancing their home. Is this even possible after a Chapter 13bankruptcy? It all has to do with timing. For a homeowner with a recent bankruptcy, refinancing may be next to impossible. However, there is the Home Affordable Modification Program, which allows homeowners to refinance while in the middle of a Chapter 13 bankruptcy. The request must be submitted to the lender of the current mortgage. The chances of approval are greater a year or two down the line. For a Federal Housing Administration mortgage, the bankruptcy must have been finalized for at least one year. The homeowner must have paid all payments on time during that period. In addition, he or she must get permission from the court before refinancing. For conventional refinancing, the wait time is extended to two years. If the bankruptcy is dismissed, the wait time is four years. While a bankruptcy does offer a fresh financial start, it does come with some challenges when trying to refinance a loan or apply… Continue reading
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