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Chapter 11 Bankruptcy

Individuals, creditors and businesses are protected by the bankruptcy law of the United States. Bankruptcy laws for businesses facilitate and enable reorganization of debt to pay off creditors without the business being destroyed or the orderly liquidation of assets to pay off creditors and divide up a failing business for others to buy up parts of and try to make successful. These laws therefore protect businesses and their owners and operators as well as creditors, consumers, and the economy in general.

The federal courts of the United States is the one that presides over bankruptcy cases. In 1978, the federal law established two types of bankruptcy namely, Chapter 7 and Chapter 11. Another type of bankruptcy is found in Chapter 13, however, this is not applicable to be filed by incorporated businesses. On the other hand, self-employed individuals could file under Chapter 13.

For a business, Chapter 7 means filing a petition for bankruptcy which then results in there being a court-appointed interim trustee who gets control of all non-exempt business assets and accounts.

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Web links for 28th October 2011

  • And whilst were at it, the Resolution Foundations new commission has a website that deserves a big audience. Clever use of interactive charts very clearly presents the hugely unequal growth in living standards seen in the UK since the 70s, and lets you see where your own household fits in the picture.
  • Workers are gaining less of the proceeds from economic growth right across the OECD, claims the Resolution Foundations latest report. Painful Separation examines the relationship between economic growth and wages for middle earners over the last 30 years.

Clearing Up Some Confusion About the New Federal Student Loan Rules

On Wednesday, President Obama introduced two changes to the federal student loan program that could affect several million borrowers. The broad outlines of his plans to encourage loan consolidation and assist people who are struggling financially are reasonably clear.

But if the questions sent to our Bucks blog from indebted people are any indication, any change in Student Loan Land almost inevitably leads to enormous confusion. Many questions had to do with whether private loans, the kind that come from banks and often have higher and variable interest rates, are part of these changes.

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FHA Mortgage loan COMPENSATING FACTORS

FHA Mortgage loanPENSATING FACTORS

For the  home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

  No minimum FICO score or credit score requirements. FHA will allow a home purchase 1 year after a Bankruptcy. FHA will allow a home purchase2 years after a Foreclosure.

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New Debit Card Fees Got You Angry? Switch to a Local Bank.

Bank of America made news a few weeks back with its announcement to begin charging a $5 monthly fee for using its debit card. As you can imagine, this (along with other new credit card fees) generated the kind of publicity BofA would rather not have.

A consumer backlash and bad publicity from bloggers. Here are but a few examples:

  • NerdWallet shared 6 Ways to Fight Back Against New Debit and Checking Fees.
  • Free From Broke shared his information about the New Bank of America Debit Card Fee: Here’s What You Should Know.
  • The new fee prompted PTMoney to write What You Can Do About It
  • And Ron at The Wisdom Journal told us How You Can Avoid The New Debit Card Fees .

Perhaps the easiest way to fight back is to simply take your business elsewhere. There really is less and less reason to use a big bank. And besides, it was the multi-national banks at the heart of the financial crisis in 2008 not local banks. Lo

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7 Things to ask a debt counselor

If you are thinking of hiring a debt counselor, there are a few things that you should first ask them before finalizing your deal. You should know that your debt counselor is someone who will be representing you and helping you in your credit dealings, which is why it is important that you choose the right person. In this article, we shall discuss some of the basic questions that you must ask your debt counselor before your hire them. A few questions will clear your doubts and will help you greatly in establishing trust between you and the debt counselor.

What are the services that you offer?

By asking this simple question, you will be able to see whether the debt counselor that you are hiring will be able to help your case or not. This will also give you an idea about whether the debt counselor is worth your time and money too, so you should start off by asking this question first of all. Read full post…

Strike Gold Moves into Tanzania

Exciting news from our sponsor, Strike Gold (SRK.V).
They have entered into an Option Agreement with Canaco Resources Inc. (CAN.V) to earn an 80% interest in Canaco’s Boma Property (the “Property”). The Property is comprised of three contiguous concessions totalling 56,256 hectares (562.56 km2 ) in the Kilindi District of Tanzania. It is located approximately 40 kilometres northwest of Canaco’s Magambazi Gold deposit where, since its discovery in 2009, an aggressive exploration program continues to define significant orogenic gold mineralization for a near-term mineral resource estimate.
Canaco’s President and CEO, Andrew Lee Smith on the transaction states: “Canaco’s main objective has always been to progress our flagship Magambazi Project towards development; however, through our time and investment in the region, we have developed what we feel is a first mover advantage and unique understanding of the prospective geology in the area. We are pleased t

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