Chapter 13 Vs Chapter 7 Bankruptcy
For many lenders, credit history and credit score are the greatest indicators of one’s financial responsibility. However, they’re not the only considerations. Lenders also consider the number of accounts included in your bankruptcy. The more accounts, the greater the bankruptcy’s impact on your credit.
Individuals can file for two kinds of bankruptcy: Chapter 7 or Chapter 13. According to , your ability to get approved for a car loan is often impacted by the type of bankruptcy you filed for and the amount of time since you filed for bankruptcy.
Filing for bankruptcy usually takes several months after your initial meeting with your lawyer. With a Chapter 13 bankruptcy, your creditors reduce the amount of money you owe. You are then responsible for making a payment to the trustee who’s in charge of your case, and they, in turn, portion out payments to the various creditors.
According to Auto Credit Express, the biggest advantage of this type of bankruptcy is that you get to retain your assets and property. This type of bankruptcy usually takes five years to complete. While a Chapter 13 stays on your credit for up to seven years, you do have options if you are trying to take out an auto loan during that time.
Main Investment Areas Of Green Stimulus Programmes
The largest single component of global green stimulus spending was rail infrastructure development in China, which received almost USD 100 billion from 2010 to 2012. This investment greatly improved the energy efficiency of the transport sector in China although the short-term effect was for energy-intensive construction activity. The most important policies in EU countries for mobilising investment in wind and solar PV were feed-in tariffs, amounting to USD 93 billion. Most of these were not part of the green stimulus from a narrow budgetary accounting sense but were introduced at the same time, giving the energy system a major boost. The net metering policies and feed-in tariffs as well as other incentives introduced in the United States at the time of the 200809 financial crisis represented around USD 32 billion of subsidies.
The 2008 European Economic Recovery Plan included a substantial green stimulus directed to several areas, including:
- energy efficiency, with the aim of creating jobs and saving energy
- investment in clean technologies to boost sectors like construction and lowcarbon automobiles
- infrastructure and interconnections to promote efficiency and innovation.
- EUR 2.3 billion for gas and electricity infrastructure projects
- EUR 565 million for offshore wind projects
- EUR 1.05 billion for 13 carbon capture, utilisation and storage projects
- EUR 146 million for the European Energy Efficiency Fund.
European Union
United States
Protection Against Discriminatory Treatment For Companies That File Bankruptcy
The CAA amends the Bankruptcy Code to provide that a person may not be denied relief under Sections 4011 through 4042 of the CARES Act solely because the person is or has been a debtor in a bankruptcy case. The CARES Act provisions affected by this amendment are the:
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Foreclosure moratorium and right to request forbearance
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Forbearance of mortgage payments for multifamily properties
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Temporary moratorium on eviction filings
This provision sunsets on Dec. 27, 2021.
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Stimulus Payments Are Included As Part Of The Bankruptcy Estate
According to the Justice Department notice cited above, the stimulus payment becomes part of the bankruptcy estate only for cases filed after the date of the CARES Act, March 27, 2020. The United States Trustee expects that it is âhighly unlikely that the trustee would administer the payment after consideration of all relevant circumstances.â The notice says that because of the âmodestâ amount of the stimulus payment, and the fact that many debtors would likely litigate to exclude it from their estate, that itâs unlikely the Trustee would insist on including the stimulus payment as an asset in the bankruptcy estate.
Your Stimulus Check Bankruptcy And The Irs
The federal stimulus package, which is also called the CARES Act, directs the IRS to send you a stimulus check.
Under the CARES Act, your stimulus check is specifically exempt from being counted as income in your Bankruptcy case.
However, once you file a Bankruptcy case, the expectation of your stimulus check and the actual deposit of your stimulus check into your checking account may be considered an asset of your Bankruptcy case.
Many states have a wild card exemption which means that you are allowed to have up to$12,500 in assets, per spouse, that is exempt in your Bankruptcy case. However, this wild card exemption may only count if you are not claiming a home as an exemption.
In Chapter 13 cases, the stimulus check as an asset of your Bankruptcy case will not be a concern.
However in Chapter 7 cases, if your assets exceed the allowed amount, then you are typically required to turn over excess assets to the Trustee to be distributed to your creditors.
The good news is that the U.S. Trustees Office has issued a notice to all Chapter 7 and Chapter 13 Trustees that it does not expect the Trustees to be taking federal stimulus funds from Bankruptcy filers. It is also directing the Trustees to notify the U.S. Trustees Office before taking any stimulus checks.
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Ways The Recent Stimulus Bill Affects Bankruptcy
Highlights
In an effort to resolve divergent court rulings, the new Consolidated Appropriations Act gives the Small Business Administration discretion to determine which small and individual debtors may obtain PPP loans in bankruptcy
The CAA allows debtors in all bankruptcy cases to automatically take up to 210 days to choose to continue with a non-residential real property lease and provides an additional grace period on payments for small business debtors after a filing
The new law also offers additional protection from preference claims to landlords of non-residential real property and to suppliers of goods and services who received deferred payments from a debtor
Among the provisions in the new Consolidated Appropriations Act of 2021 are a number of temporary amendments to Title 11 of the United States Code focused on providing relief to creditors and corporate and individual debtors alike.
On Dec. 27, 2020, the president signed the CAA into law a $900 billion stimulus bill that modifies prior CARES Act legislation enacted last spring.
Nine vital aspects of the new Bankruptcy Code provisions are summarized below.
What Are Special Purpose Vehicles Used For
A special purpose vehicle is a subsidiary company that is formed to undertake a specific business purpose or activity. SPVs are commonly utilized in certain structured finance applications, such as asset securitization, joint ventures, property deals, or to isolate parent company assets, operations, or risks. While there are many legitimate uses for establishing SPVs, they have also played a role in several financial and accounting scandals.
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Getting Stimulus Checks From Car Dealerships Nope
During these difficult economic times, scammers will do almost anything to try to get your money. Including, it turns out, making bogus claims about economic stimulus checks to lure customers to auto sales events.
In a complaint,the Federal Trade Commission says Traffic Jam Events, a direct mail marketing firm for car dealers, is falsely claiming in mailers that their Economic Automotive Stimulus Relief Program is affiliated with and approved by the government. Its not.
Theyre also claiming that people who come to designated sites will get stimulus relief checks. They wont.
Theyre even sending out checks that say COVID-19 Auto Stimulus with space to endorse the check on the back. But the checks are fake, theres no car-related relief in the CARES Act, and the government isnt using car dealerships to give out economic impact payments.
Here are three ways you can help protect yourself and others from these types of scams:
- When you get promotional mailers, check out the company before you act. Search online for the company name plus the words scam, complaint, or review.
- Dont click on links in emails or text messages. If you click, you could download malware onto your device and wind up on a site thats after your personal information. Instead, if youre worried about the message, look up whoever sent it. Then call or email using a number your research gave you not one from the message.
How Can A Stimulus Check Help Bad Credit
An influx of cash is normally a great thing for anyone, but it can be especially helpful to those struggling with credit issues. When a bad credit borrower applies for new credit, its very likely they need to meet a down payment requirement.
Car loans are no exception to this rule. Most bad credit auto lenders, also called subprime lenders, require at least $1,000 or 10% of the vehicles selling price as a down payment requirement.
If you qualify for any of the latest stimulus packages, either federal or through your state, these windfalls of cash could help you meet or exceed the down payment requirement of a lender. Once you qualify for financing, your on-time payments on the car loan can do wonders for your credit score.
Applying for a car loan isnt the only way cash can help you improve your credit score. Paying down your credit card balances to below 30% is a good move too.
Applying for other types of credit, such as a secured credit card, might work as well. Secured credit cards are backed by a deposit, and if you have extra cash on hand, you could meet that deposit requirement and get your hands on a secured credit card. These credit cards are reported as regular revolving credit, which could build up a nice credit history and increase your credit mix.
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What Is The Function Of Spvs In Public
Public-private partnerships are collaborations between a government agency and a privately owned company. Many private partners in public-private partnerships demand a special purpose vehicle as part of the arrangement. This is especially true for capital-intensive endeavors, such as an infrastructure project. The private company might not want to take on too much financial exposure, so an SPV is created to absorb some of the risks.
How Do I Get My Insurance Repair Check Endorsed
Please send your insurance check to Platinum Auto Finance, but first endorse the check yourself. When the repairs are complete, send us the final repair bill and photos of the repaired car. Once we receive proof of repairs, we will endorse the check and send to the repair shop. You can mail all insurance-related information to:
Platinum Auto FinanceClearwater, FL 33765
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Electric Vehicle Charging Station Templates
- Application to install an EVCS
- The CAO has developed templates to assist owners in applying for the installation of electric vehicle charging systems, and to assist condominium boards in responding to applications.
Why Are Canadians Choosing Unmanagable Car Loans
This all begs the question why are Canadian consumers choosing car loans that are putting financial stress on them now with the potential to cause further issues down the line?
Its Easier to Finance a New Car vs a Used One
Unfortunately, the reality of the situation is, its easier for the average Canadian consumer to get approved for financing on a new car than a used one. The reason for this is because lenders know exactly what a new vehicle is worth, determining the value of a used vehicle is more difficult. And if there is one thing that is certain, its that a brand new car costs more than its used counterpart. Not to mention all the additional costs that come along with new cars extended warranties, backup camera, sunroofs, etc.
We Arent Thinking About The Long Term Consequences
The problem with a $500 car payment or an 84-month term is that they can seem like good decisions when you only think about how they affect your monthly finances. But its the long-term consequences that can cause serious problems.
Instant Gratification
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Energy Dept Failed To Report Concerns As Green
The Department of Energy failed to disclose concerns about a green-technology company that won $135 million in federal funding but ended up filing for bankruptcy in September, according to a watchdog report released this week.
DOE Inspector General Gregory Friedman noted that the firm, San Francisco-based Ecotality, is still due to receive $26 million from the agency for testing electric vehicles.
The report said the DOE knew in May that Ecotality was not on track to meet an important milestone for a grant to install charging stations and that agency officials failed to disclose that information for an audit that the inspector generals office released roughly two months later.
We are deeply concerned because the information directly related to the objective of our audit, to determine whether the Department had effectively awarded and managed funding to Ecotality, Friedman said in the latest report.
Energy Department officials told investigators that they did not think the information was relevant to their review, the report said.
A spokeswoman for Ecotality did not immediately respond to a request for comment.
Ecotality completed more than 95 percent of its required work installing charging stations, erecting more than 12,500 of them in 18 U.S. cities, according to Energy spokesman William Gibbons.
The department concurred with the recommendations and said it had already initiated some of the actions, according to the report.
Consumer Motor Vehicle Recovery Corporation
Welcome to the website of the Consumer Motor Vehicle Recovery Corporation
In July of 2008, the California legislature created the Consumer Motor Vehicle Recovery Corporation . The CMVRC has established a Consumer Recovery Fund for the payment of claims by California consumers who suffer losses after July 1, 2008, as a result of a California licensed dealer or lessor-retailer of motor vehicles who has filed for bankruptcy or is no longer selling and leasing vehicles to the public, and has failed to:
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remit license or registration fees received or contractually obligated to be paid from a consumer to the Department of Motor Vehicles
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pay to the legal owner of a vehicle transferred as a trade-in by a consumer to the dealer or lessor-retailer the amount necessary to discharge the prior credit balance owed to the legal owner
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pay to the lessor registered in accordance with California Vehicle Code Section 4453.5 of a vehicle transferred as a trade-in by a consumer to the dealer or lessor-retailer the amount the dealer or lessor-retailer agreed to pay to the lessor
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pay the amount specified in a consignment agreement to a consumer after the sale of a consigned vehicle
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provide good title, free of liens or other claims
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pay third parties for insurance, service contracts, or goods or services purchased through the dealer
CMVRC Claims Administrator
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If My Title Is Electronic Or An Elt / E
Once your loan has been paid off, we will send a confirmation to you and an electronic notification to the state. Once thats received, the lien information is removed from the title record.
As the registered owner of the vehicle, you wont need to worry about the title unless you relocate to a different state, want to change your name on the title, or need a photocopy of your title for any reason. In those cases, a paper title must first be requested from the state.
Cares Act Part One: Stimulus Payments And Consumer Bankruptcy
The CARES Act, recently enacted into federal law in response to the COVID-19 pandemic, made several changes to the Bankruptcy Code that affect people who have filed, or will be filing, bankruptcy. In Part One of this series, we discuss how the CARES Act treats the receipt of a stimulus payment by a debtor and whether the receipt of such payment will affect his or her chapter 7 or 13 bankruptcy case.
The legislature made several amendments to the Bankruptcy Code regarding the potential receipt of stimulus payments by persons who have filed chapter 7 or 13 bankruptcy cases. Specifically, the CARES Act amends the following relevant Bankruptcy Code Sections:
· 11 U.S.C. § 101: Excludes a debtors stimulus funds from the definition of current monthly income, thereby effectively excluding the funds from a chapter 7 debtor’s means test calculation and
· 11 U.S.C. § 1325: Excludes a debtors stimulus funds from his or her disposable income which must be used to fund his or her chapter 13 plan.
However, the legislature failed to exclude a debtors stimulus funds from the definition of “property” of a debtor’s bankruptcy estate. Accordingly, it is recommended that bankruptcy debtors, especially chapter 7 debtors, seek legal counsel to determine whether any state or federal exemptions statutes may apply to protect his or her stimulus funds from the reach of creditors and/or the chapter 7 trustee.
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Is Your Car Payment Preventing You From Getting Ahead
- Bankruptcy, Consumer Proposals, Debt Help, Debt Relief, Financial Literacy, Knowledge Blog, News Blog
Not too long ago, the average car loan was amortized for five years, never longer. But, somewhere between the American financial crisis and today, car loans can now be amortized for significantly longer. In fact, according to an article written by CBC News, More than half of all new car loans are currently financed for 84 months seven years or longer.
Furthermore, according to data from J.D. Power, between 2010 and 2015 the average monthly car payment rose from $522 to $5492. Not only are Canadians extending their repayment terms but they are also choosing more expensive vehicles and thus taking on monthly payments that could be putting them in serious financial risk.