Wednesday, May 30, 2012
Tuesday, May 29, 2012
Saturday, May 26, 2012
Thursday, May 24, 2012
Wednesday, May 23, 2012
Monday, May 21, 2012
Friday, May 18, 2012
My youngest niece is studying finance and asked me a question about her latest subject that giving her some trouble. When I heard what the subject was I wasn't to surprised that she was having difficulty giving that bankruptcy is confusing. The different chapters and varying rules from one jurisdiction to the next can make most people wonder just what in the heck does bankruptcy really mean?
What do the chapters mean?
Chapter 7 is the total liquidation of non-exempt assets that you normally associated with the term bankruptcy. The funds obtained from the sale are used to pay off the debt. If the funds generated by the sale doesn't cover the full amount of the debt the remaining debt is forgiven. So as you can see even though this is the most straight forward version of bankruptcy it is still confusing. It still leaves a few questions, such as, what are the exempt assets? And who determines how much of each debt gets paid?
Chapter 11 is a re-organization of debt for businesses letting the businesses still run while paying off the debt. In this form of bankruptcy they have a time limit (no more than 120 days) to come up with something that there creditors can agree with on how to get repaid. The repayment must usually take place over a 3-5 year period. Chapter 12 is a version of chapter 11 for farmers so the farmer can keep the land. By the same token chapter 13 is the individual version of chapter 11.
Doesn't going bankrupt ruin my credit?
Not exactly, it can make it tough depending on which chapter you use when you file. Chapter 7 will probably take longer since it is a serious form of bankruptcy but you should still be able to start rebuilding credit within a few years. After your bankruptcy though your rebuilding will be almost the same as if you were starting all over from the time before you had credit. The one big difference is though you will have blots on your credit history that must be cleared up.
Will bankruptcy take care of all my debt?
No, there are certain areas of debt that bankruptcy won't fix. Mainly, for individuals bankruptcy doesn't effect any secured debt including: mortgages, liens, taxes and penalties owed to the IRS or other government entity, student loans, child support, debt that wasn't declared during filing for bankruptcy or legal fees. There maybe some other debts that aren't covered depending on which version of bankruptcy you use and the state you file in when you declare bankruptcy.
Wednesday, May 16, 2012
Tuesday, May 15, 2012
Monday, May 14, 2012
What is a debt to income ratio calculator for a mortgage?
It is a way of figuring out how much money you have available to invest in a major purchase. Whether you are an individual or a business buying a house, rental property or warehouse a debt to income ration calculator for a mortgage is something you will need.
How does a debt to income ratio calculator for a mortgage work?
It is a process where the broker at the financial institution will for all the documentation showing how much you owe on credit cards, loans, creditors and any other forms of debt. They will then ask for evidence of all of your income for a period of time, usually a year, and compare the the two figures. Normally, when the amount that you owe is compared to the amount that you bring in, they want to see that no more than 33% of your income is taken up by debt.
Is there somewhere that I can go to calculate this on my own?
There are several websites that provide you with a debt to income ratio calculator for a mortgage. Just a few of these sites are:
Bankrate provides you with a simple calculator where you can enter in your debt and income and it will give the ratio level.
Consumercredit has a detailed excel spreadsheet and an acrobat reader worksheet that you can download and use to calculate your ratio.
Mortgage-info provides you with a more detailed calculator and instructions on how to use it.
Consolidatedcredit is another site that has a detailed calculator that you can use for figuring out your debt to income ratio for a mortgage.
Why is this so important?
A debt to income ratio calculator for a mortgage is important to have run so that won't be in danger of over extending yourself to the point of bankruptcy. It is also important so that you know if you can invest in more of your income and buy a bigger house or that extra investment property that you have been looking at to purchasing.
Is a debt to income ratio calculator for a mortgage the only factor on figure out if I am a good risk to make a big purchase?
Your credit card score and payment history is just as important since it shows how well you are at managing your debt. A financial institution usually wants to see a score of between 700 and 850. One thing that you should be aware of when your credit card score is being checked is that just by looking at your score too often can result in a lower score.
How often should I use a debt to income ratio calculator?
A debt to income ratio calculator for a mortgage is a good gauge on whether you qualify for that major investment but is something that you should get in the habit of using on a periodical basis to stay on your household budget. No one wants to run into unexpected expense that could drive you into debt to the point where you can't get back into the black.
This article explains just what a debt to income ratio for a mortgage is and why it is important to check it whenever you are about to make a large purchase. Even if that purchase doesn't lead to a mortgage it is still a good idea to get in the habit of keeping track of where you fall in that ratio.
Sunday, May 13, 2012
Friday, May 11, 2012
Wednesday, May 9, 2012
Monday, May 7, 2012
Reveiw of 'Duplicity Dogged the Dachshund'
Blaize Clement is the author of the popular fictional Dixie Hemingway mystery novels (that now numbers at 8). The stories follow the adventures of Florida's favorite pet sitter and former deputy Dixie Hemingway. Ms. Hemingway and her husband where both deputies until he and their daughter were killed and Dixie had a breakdown forcing her out of the police department. She has since moved on to become a in demand pet sitter Siesta Key.
In 'Duplicity Dogged the Dachshund', the second book in the series, starts out quickly as the pet of one of Dixie's latest clients, a dachshund, finds a dead body as Ms. Hemingway is taking the dog for a walk. When the police show up and interview her they warn her not to get involved but despite her promise everyone knows she will do her own investigating. Shortly after the discovery of the murdered body Dixie find herself being targeted by the killer. She is now even more determined to keep her pet sitting schedule and track down who is trying to kill. She soon finds herself deep in clowns, money laundering, trust funds and of course pet care. Now, can Dixie keep her sanity as she tries to solve the murder and keep her pet sitting business going all while looking over her shoulder?
In this book the cast of characters include the usual: Dixie Hemingway, former deputy turn pet sitter; Micheal, Dixie’s brother and firefighter; Paco, Micheal's boyfriend and undercover detective; Lt. Guidry, the mysterious homicide detective that makes Dixie's heart do cartwheels; Cora, the eccentric grandmother of one of Dixie's former clients; Tom Hale Dixie's accountant and client and Tom's greyhound Billy Elliot and variety of new characters including Stevie Ferrelli, the victim’s wife; Denton Ferrelli, the victim's brother; Pete, a retied clown that now runs a clown school; Gabe Mark's, an alligator hunter and killer with an anger problem and Leo Bossi, owner of a telemarketing service.
Sunday, May 6, 2012
Thursday, May 3, 2012
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