How to avoid Repossession of your Car during Bankruptcy?

Car is no longer a luxury for an American; it has become a necessity for his survival.

Don’t worry about your car, when you file for Chapter 7 bankruptcy. You can keep using your car during bankruptcy. You just have to inform the bankruptcy court about your decision by filling an official document called Statement of Intention (SOI).

Why is it important to take a quick decision about your car?

When a person files for bankruptcy, the “Automatic Stay” prevents creditors from repossessing your assets. But, the stay is not absolute. The lender can ask the bankruptcy court to remove the stay and repossess your car. So, it is important that you take care of your car before filing for bankruptcy.

If you want to keep your car during Chapter 7 bankruptcy and don’t want it to repossess, you have two other options:

1. You can opt for Redemption and pay a lump sum amount to the lender. The amount will be equal to the current value of the car.

If you have money to cover the current value of your car, you can opt for redemption and buy the car disregarding the total loan balance. For example, your total loan amount may be $15,000 but if the car’s current value is just $10,000, you will have to pay $10,000 only.

2. You can enter into a contract with your lender and continue to make payments to the lender as if you did not file for bankruptcy. It is called Reaffirmation.

Now, most people who file for bankruptcy don’t want to part with a large amount of money. So, redemption is a less popular choice. If you want to keep using your car during bankruptcy, you can choose reaffirmation and continue making smaller payments to the lender in comparison to making a lump sum payment.

What are the benefits of Car Loan Reaffirmation?

• Impossible to get loan approval

Lenders don’t provide car loan approval to people in bankruptcy. Also, it becomes very difficult for people with a history of recent bankruptcy to obtain a loan. So, it is wise to stick to your current loan program.

• Higher loan terms

Even if you manage to get approval, the interest rates are exceptionally high on post-bankruptcy auto loans. It is extremely risky to obtain a loan with exorbitant rates because it will impair your credit score.

• Upper hand in the negotiation process

If you let the car repossess, lender will have to carry out a lot of processes to recover money. He/she will have to sell the car at an auction and accept whatever money he/she receives. So, it is in his/her interest that you keep making payments. You can take advantage of this situation and obtain lower rates on your loan.

So, now that you know all about car loan reaffirmation, do not worry about your car during bankruptcy.

Residential property in Mumbai is out of reach for middle income buyers

As per a 2014 survey by Savills, a reputed real estate firm, Mumbai was ranked as world’s 12th most expensive city for living and working. Besides Mumbai, cities like London, Pairs, Tokyo, New York and Sydney were also ranked at the 12th position. According to the industry reports, there is a wide gap in demand and supply of residential property in Mumbai. However, this has not pushed developers to reduce the rates in order to sell more units.

Whether you are looking at apartments in Dadar or searching for a flat in Bandra, prices are skyrocketing despite market changes. For instance, in Navi Mumbai, rates are quite high for residential units due to the proposed new airport. Even though the airport is nowhere in the picture, rates have been increasing for the buyers. So, what is causing the prices to increase despite people not buying properties? Some believe that the realty market in India works according to the politicians and real estate companies. Politicians have an incentive in holding the prices at a high level.

As pointed out by the Residex Index of National Housing Bank, rates in the city increased by 18.7% between 2011 and 2014. This increase happened despite the fact that unsold property inventory has grown significantly.

Expensive Areas for Residential Property Investment

Altamount Road is one of the most expensive residential streets in Mumbai. Mukesh Ambani, Chairman of Reliance Industries and Kumar Mangalam Birla, Chairman of Aditya Birla Group have their house on this road which is located in the southern part of the city. This street is also home to various other business families such as Tatas and Mafatlals. Many Bollywood actors also have their flats and bungalows on Altamount Road which is parallel to the Peddar Road.

Reportedly, buyers will have to shell out approximately 60,000 INR per square feet when buying a house on this street. Gentry make this address extra special. Compared to other parts of Mumbai, this location has a lot of greenery. Antilla, the 27-storey, luxury home of Mukesh Ambani is the star attraction of this road.

Can Buyers Expect Price Correction in Future?

According to a knight Frank report, a global real estate brokerage firm, there is a mismatch in demand and supply of MMR’s (Mumbai’s Metropolitan Region) residential property market. This mismatch resulted in a pile up of around 2.15 lacs unsold residential units last year. According to experts, it will take approximately three or more years to sell off these units because rates are too high for buyers to enter the property market.

The realty market in the city doesn’t work on demand and supply. Compared to 2013, demand for properties within the MMR went down by 25% in the first quarter of 2014. City-based developers are not in the favor of reducing prices because this market has a huge holding capacity. There are slim chances of any price correction in near future. Unsold units are mainly located in extended suburbs such as Navi Mumbai, Dombivli, Vasai, Virar and Kalyan.

Making the right choices with short term finance

There are so many people these days relying on online instant loans. The bottom line is, you don’t want to rely on merely loans online in order to answer for your financial woes. What you need to do is to make sure that you are also making the right decisions financially in order to have the best things in life. If you are not making the right decisions in life, you are going to be faced with bankruptcy. You need to understand that you need to work hard, in fact today you need to even improve you plan when working. You want more money if possible with other means of income in order to pay for liabilities or in order to stay away from bad financial moves. What you want to do today is to make sure that you are only using the best lending options out there. There are different loan options today. You could either have a long term or a short term loan depending on the need that you have.

If you are going to have a long term loan, you need to know that you are supposed to use it for investments. One of the most common mistakes with the long term loans is that it is used for items that are not really important. You want to have an item that is important and you want to make sure that you are actually capable of making it grow in terms of value. For instance, if you needed money in order to have a business, you would rather have it growing in the next years in order to make the most of the loan that you had.

For cash advances, this type of financial arrangement is only used on things that are considered financial emergencies. You want to use it on things that are considered problematic and needs immediate solutions. The fact that you don’t have much time when you pay for the payday loan is a sign that you should only use it with caution. There are so many individuals today getting payday loans in order to have the immediate help that they need in life. Considering that the companies like are willing to approve of your loan in just an hour, this is a great help for you though you need to consider paying it on time to avoid penalties.

Short term loans if you are retired

Retirees are typically rejected by payday loans online firms. If you come to think of it, the payday lending firms are only protecting retirees from debts. The fact that you need to pay for the loan on the next paycheck is already trouble for retirees. The retirement pensions may sometimes not make the cut in order to pay for loans pegged at 25% interest. What you would rather have is a long term loan that would allow you to pay for your debt for a longer period of time.

For a retiree, it is not really suggested that you are still asking for loans. Knowing that your productive years are behind you, what you want to do is to reap are the benefits of your 30 years. In reality, not all retirees are experiencing a pleasant retirement. Due to the recession, more families are declaring bankruptcy because of the loans that they took plus the fact that they were laid off from work. If you are planning to have a retirement that is secured, you would want to have investments on properties that would appreciate in value. You would also want to explore the possibilities of a passive income.

For someone who still has a job, you should only go for instant bad credit loans as a last ditch effort. This means that if you are going to have a payday loan, you will need to ensure payment right after the next payday. This type of debt runs from 30-70 days with an interest of 25%. The interest is fixed from the 100 loan to the ceiling of 1000.

Though the lending firms offering payday loans actually have an easy way of “screening” borrowers, you still need to meet the requirements. Thus, you will need to be employed and earning at least 333 a month. If you are faced with an emergency, this is the only time that you should be calling, texting or applying online for a payday loan. You should keep your finances intact in today’s time. For a retiree, it is now hard to have a loan. What they should do is to ask for the help of the government and explore ways on how to meet the monthly dues.