Just Went Through Bankruptcy, Are Bad Credit Loans For Me?

By: Melissa Kellett

Those who have gone through a bankruptcy process find it very difficult to obtain finance from regular sources. This is due to the fact that a bankruptcy stain remains on your credit report for many years and scares lenders away easily. However, since now bad credit loans are wide available you may wonder if you can get finance by requesting a bad credit loan even if you have a past bankruptcy on your credit report.

There are many issues that need to be cleared in order to answer such a question. Mainly, the time when the bankruptcy was discharged constitutes vital information and your recent credit history will also influence the approval process. Besides that, you’ll also need to compare your needs and qualification with the offers available and their requirements.

Time Of Discharge

Most bad credit loans will require a two year period since the bankruptcy has been discharged in order to even consider a loan application. However, there are some types of loan that you may obtain just after the discharge and others that may require smaller type spans. Nevertheless, your credit behavior since the discharge must be impeccable.

The kind of loans you can obtain within a short period after your bankruptcy has been discharged are secured loans. Bad Credit Refinance Home Loans and Home Equity Loans might be available right away. But unsecured bad credit loans won’t be within your reach until after a long period of time with the sole exception of payday loans and cash advance loans that require no credit checks.

Recent Credit History

The last few months of your credit history need to be free from stains. If possible all your credit history after your bankruptcy was discharged needs to be impeccable so you can have more chances of getting approved for a bad credit loan. You need to show to the lenders that your credit behavior has improved since your last bankruptcy.

You need to avoid stains on your credit history and having too much debt and open credit lines. If possible you need to avoid late payments and missed payments though some of these may be tolerated. However, too many late or missed payments and defaults on your recent credit history will ruin your credit and won’t let you get approved for a bad credit loan.

Requirements Needed To Get Approved

Given that you’ve gone through a bankruptcy and that you are seeking a bad credit loan, instead of concentrating on credit requirements, you’ll need to focus on your income. Lenders will require that you show proof of a steady income suitable for affording the amount of the monthly payments that these loans imply. Thus, you’ll need to have available income to meet the bad credit loan’s installments without sacrifices and being able to face any additional unexpected expense that may rise.

Though a co-signer is not required, providing one will increase your chances of getting approved. Of course, the co-signer needs to have a better (preferably good) credit score and has to be able to afford the monthly payments on his own. That way, the risk for the lender will be reduced and he will consider your loan application with ease.

Melissa Kellett is an expert loan consultant who can help you get approved for Unsecured Consolidation and Credit Loan Unsecured. Just visit http://www.speedybadcreditloans.com/ where you'll find all the information you need.

Article Source: http://www.ArticleBiz.com

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Business Tax Deductions: How to Deduct Expenses Without Keeping Receipts

By:Wayne M Davies

No receipt, no deduction, right? Generally speaking, yes. The mantra of small business bookkeeping has been relentlessly burdensome for decades: "No Receipt, No Deduction."

My own tax clients are quick to remind me of this basic recordkeeping rule. Over the years I've heard this countless times: "But I don't have any receipts. I guess I can't take the deduction, right?"

What's my response to the "No Receipt, No Deduction" lament? "Not so fast! Wherever there's a tax rule, there's an exception to the rule."

In certain situations, taking deductions without a receipt is actually sanctioned by the IRS. Here are three legal exceptions to the "No Receipt, No Deduction" rule.

EXCEPTION #1: Vehicle Expense You are allowed to deduct your vehicle expenses to the extent that you used your vehicle for business. If you drove your car 100% for business, then 100% of your vehicle expenses are deductible.

And you have two options for determining those vehicle expenses: 1) The Actual Expense Method 2) The Mileage Method

Our focus here is on Option #2 -- because with the Mileage Method your vehicle expense is simply the number of business miles times the official IRS mileage rate.

For 2009, this rate is 55 cents per mile. In 2009, if you drove your vehicle 10,000 miles for business, you can report a deduction of $5,500 -- without having to keep any receipts for gasoline, oil changes, repairs and maintenance, insurance, etc.

You do have to document your business mileage via a written log of some sort, but this is usually much easier than saving all those receipts for actual vehicle expenses.

EXCEPTION #2: Meals While Traveling When traveling out-of-town on an overnight business trip, you can deduct the actual expense of your meals (by keeping the receipt), or you can rely on the little known "Per Diem Method" (which requires no receipt).

The Per Diem Method gives you a daily meal allowance for each day of the trip, depending on what part of the country you visit. For example, the per diem meal rate for Birmingham, AL is $44; for San Francisco, it's $64 (as of 9/30/08).

To find the per diem amounts for every state, go to: http://www.irs.gov/publications/p1542/ar02.html

EXCEPTION #3: The $75 Dollar Rule Here's another easy way to avoid the hassle of saving receipts -- this one involves your business meal and entertainment expenses. Believe it or not, the IRS does not require a receipt when your business meal or entertainment expense is less than $75 per expense.

Sound too good to be true? Well, there is a "catch", of course: you still must maintain a record of the following five facts related to the deductible event:

1) WHO did you eat with or entertain? i.e. the names of the people and the nature of their business relationship to you

2) WHEN did the entertainment occur? i.e. the date

3) WHERE did the entertainment occur? i.e. the name of the restaurant or other venue

4) WHY did you meet? i.e. a description of the business purpose of the meal or event

5) HOW MUCH did you spend? i.e. the dollar amount

You should record these five facts in a log. Your daily appointment book or day-timer is the perfect place to jot this down in less than a minute. Having met the IRS substantiation requirements, you can then throw away the receipt. In the event of an audit, you'll be covered.

Two final comments: Exception #2 applies to overnight travel situations, regardless of whether you eat your meals alone or with business associates. Exception #3 applies to meals and entertainment expenses incurred when you are with someone with whom you have an existing or prospective business relationship, regardless of whether you are in town or in overnight travel status.


Wayne M. Davies is author of 3 ebooks on small business tax reduction strategies. For a free copy of his Special Report "How To Instantly Double Your Deductions", visit http://www.YouSaveOnTaxes.com .

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How to stay afloat in a changing economy: The ins and outs of 401K's & tax audits

How to Stay Afloat in a Changing Economy: the Ins and Outs of 401k's and Tax Audits

October 2008

By Lance Wallach

Government officials now expect 401(k) plan sponsors to conduct periodic due diligence reviews. With respect to their 401k or other retirement plans, the problem is that most sponsors (owners) do not have the in house resources to do so.

This is not something that 401(k) plans historically did. On the heels of the recent mutual fund scandals, though, Labor Department officials indicated that sponsors had a duty to periodically investigate plans and benchmark funds and fees.

Baby boomers are now retiring, and their 401(k) accounts often are their primary source of retirement income. A sponsor potentially could be liable for less than stellar 401(k) account growth if employees can claim that he did not meet his fiduciary duties.

Trusting the reputation of a major mutual fund company is not enough anymore. Sponsors must investigate and compare their plans to other programs at least every two to five years, as well as demonstrate that their plan expenses are in line with what others are paying. Blind trust is not prudent. You need a process, and you need to document that process.

Every fiduciary decision has to be made through a careful process. According to ERISA, the primary plan fiduciary is the sponsor, i.e., the employer.

Therefore, it is the employer's responsibility to ensure the prudent selection and oversight of plan vendors.

Sponsors must monitor vendors in two ways: micro monitoring, which should occur annually, examines plan features and services, while macro monitoring every three years or so allows sponsors to benchmark with competitors.

Smaller employers who comparatively lack resources and manpower find it difficult to monitor vendors to this extent. Thus, owing to ERISA provisions that compel bewildered sponsors to take on experts to help with due diligence, most small to mid sized plans will need to hire consultants.

There is potential liability if due diligence reviews are not conducted. Failure to engage in a prudent process may breach fiduciary duties, which may render the sponsor liable for damages. For example, if plan participants pay fees that are higher than the current market rate because the sponsor did not perform a review, that fiduciary could be liable for the higher fees.

But as long as the sponsor can prove he did a proper investigation, he can potentially shield himself from liability. The employer has to show that he engaged in a prudent process and that he made a reasonable decision based on that process. This applies to all retirement plans, not only 401(k) plans.

However, as the economy begins to falter, the risk of being audited becomes an increasingly higher risk. The IRS looks for some things on tax returns which make an audit of your return more likely. This includes putting too many zeros on a tax return. For example your are better off deducting $797 for charitable contributions than taking an $800 deduction. The IRS is looking to find people who guess, estimate, or make up numbers. An $800 deduction looks like an estimate or worse. A $797 deduction looks like you figured out the true amount of the deduction. When the IRS audits you they are looking to get money. If you have the exact numbers on your return they would not ordinarily end with a few 00. For business owners a good way to get audited is to take a low salary, having a retirement plan that has not been updated to reflect new laws, and having independent contractors, illegals, etc. as your employees.

Under new tax laws, accountants will be forced to report you to the IRS under certain circumstances There is a new $100,000 fine for accountants who do not report directly to the IRS on you if you deduct certain things. You can still put what’s called listed transactions as deductions on your tax return. But your accountant has to write, on their own, directly to the IRS and tell them about any listed transactions that are on your return. Listed transactions can include certain types of retirement and insurance plans etc. The IRS has recently made your accountant a tax policeman. For more on this see www.vebaplan.com

But, in these perilous times, there are a few creative ways to reduce your insurance or tax costs. Utilizing techniques such as HSA to reduce insurance costs and taxes, VEBAs to lower taxes, deduct succession and estate planning costs, insurance swapouts processes to limit insurance costs, 412(e) to obtain large tax deductions or life settlements to get paid for your life insurance without dying will be helpful when looking to save money. If you want to know how good your accountant is ask him how many of the above techniques he is using to reduce your taxes. By applying some of these techniques to your every day life, it will allow you to substantially reduce your taxes, more efficiently save for retirement, reduce your health insurance and life insurance costs and change the way you spend money. Websites such as FinanceExperts.org can help you plan your finances accordingly by finding experts.

Conclusively, the best way to stay afloat in this hectic economy is to be mindful of what your future entails. Planning ahead and being cautious are two ways to be audit proof your tax return certainly, and in terms of 401k retirement plans, picking the proper retirement fund will benefit you as the years pass. You want investments that don’t lose a lot of money and to deal with financial institutions that will still be in business in the future. Checking www.Taxlibrary.us may be a good resource and can help you educate yourself on the importance of various tax savings ideas.

Lance Wallach, CLU, ChFC, CIMC, speaks and writes extensively about VEBAs, retirement plans, and tax reduction strategies. He speaks at more than seventy conventions a year and writes for over fifty national publications. For more information and additional articles on these subjects, call 516-938-5007/935-7346. The information provided herein is not intended as legal, accounting, financial or any other type of advice for any specific individual or other entity. You should contact an appropriate professional for any such advice.

Lance Wallach, pension & benefits, insurance & tax reduction expert. www.Taxlibrary.us

Article Source: http://www.ArticleBiz.com

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Few People Care To Understand Loan Terminology

By: Amanda Hash

Absolutely true. There are so many people who read the fine print believing they understand it all that it is surprising that there are not more defaults. Reading does not mean understanding all the financial jargon, purposely put to define and give a frame to loans, not to make you fall for them. If you do, it is your responsibility…

It Is Not All "Bull-jargon"

Fees have names that not always suggest what they cover. Underwriting, for example, may mean one thing to the unwary, but in finance it means the act of analyzing the information and situation of a borrower and determining the correct "package" or set of conditions for the loan he is applying for.

Escrow is the middleman, who takes care of all the procedures and handles the legal documents for a transaction and the disbursement of funds. Forbearance is the act of manifesting in writing, the lender’s will not to carry out legal action on a mortgage with missed payments.

So, Everything Has Its Meaning

A special term may suggest something to the profane customer and have a totally different meaning. Likewise, the fine print or small writing: Do not pretend you understand all it says, just out of not wanting to show your lack of knowledge. Whatever you do not understand, ask. Take a copy home and consult whatever you do not know or are not sure about, with someone who does know.

There are also expressions that complicate matters for you, the borrower. But then again, you are not expected to be expert loan agents. Just know what you are in for. Know what to expect during the term of the loan. Principally, what you are entitled to, whether it is a refinancing to change the duration or change the character of the interest rate from fixed to adjustable or vice versa. You must know what you are not allowed to do and what you are expected to do under certain circumstances.

Consider This

"Herein", "whereby", "hereafter", "inasmuch" and "hereinafter" sound so stupid to a profane ear. More often than not, they confuse people and even make them think it is the opposite of what they really mean. They are placed, so to speak, so that there will not be any misunderstanding… to a knowledgeable loan agent or an attorney. Not to us, simple beings. But then, if we do not know a word or expression, let’s ask, folks!


Private Mortgage Insurance is meant to cover only the payments that correspond to the portion of the loan up to 20% of the value of the house you are purchasing. It does not last the whole loan. So, it is important to know, that as from a certain date, you will not have that expense any more and that your lender is obliged to communicate this to you.

One thing that misguides even those who are supposed to be familiar with these matters is the APR. It is not what its name suggests. It means Annual Percentage Rate but it is not only the interest rate, but a set of fees added to the rate and proportionally distributed on a yearly basis. It is even confusing to the loan agents, sometimes. Does that make you feel better? Even so, do not be shy. Ask whatever it may be a dozen times. You will not get turned down for that.

Amanda Hash is an expert financial consultant who specializes in Bad Credit Loans and Guaranteed Approval Personal Loan. By visiting http://www.yourloanservices.com/ you'll learn how to get approved and recover your credit.

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