A Sale and Purchase Agreement (SPA) will contain salient information like the vendor and the buyer’s personal details as well as a detailed description of the house being sold. It will also stipulate the total purchase price which is made up of the deposit payable and balance purchase price. The timeline for payment of the total purchase price is also stated in the SPA and it is not uncommon for the timeline to be based on 3 months plus an extension of a further 1 month.

Apart from the identities of the parties, description of property, pricing and timeline, the SPA will also include the rights and obligations of both parties during the course of the SPA. There are many things which the parties may need to do. Taking our earlier example wherein the house is currently charged (mortgaged) to a bank, the vendor will be obliged to obtain a Redemption Statement cum Undertaking from his bank in favour of the Purchaser or the Purchaser’s Bank. This Redemption Statement will indicate the amount which is payable to redeem the property by reason of the loan taken by the Vendor. The SPA will also include various warranties by the Vendor eg, that the property is not subject to any acquisition by the relevant authorities, that the quit rent and assessment has been duly paid and that the Vendors are not undischarged bankrupts.

With so many terms and conditions present on the SPA, it is highly advisable that each party appoint his own solicitor to look after his interests. As explained in one of my earlier articles on the scale legal fees for sale and purchase of properties, a solicitor may not act for both vendor and purchaser in the same transaction.

After the vendor and buyer are satisfied with the terms of the SPA, the SPA is then executed by the parties and subsequently stamped at the Stamp Office. Time begins to run and the parties would be guided by the SPA on what they need to do before the property is ultimately registered in favour of the buyer’s name and keys are passed.

Buying a house

To start off, some matters need to be mentioned. The house in question is a double-storey terrace house which is currently charged to a bank by the Vendor. It is situated on freehold land and individual title has been issued by the Land Office. The house is marketed for sale by a property agent and upon viewing the house, negotiation takes place on the purchase price. The buyer should insist on having a copy of the title or at least the title particulars so that a search can be conducted on the title at the Land Office to ascertain the identity of the current owner of the house and the existing encumbrances on the house.

Once the buyer is satisfied with the condition of the house and the purchase price, a booking fee is paid to secure the sale of the house. In this connection, the usual booking fee imposed in Klang Valley is 2% of the purchase price. Payment is made in favour of the property agent’s firm and a simple agreement is executed by both the vendor and the buyer on the important terms of the sale.

The agreement would usually include the names of the vendor and buyer, their correspondence addresses, subject property for sale, purchase price, period for payment of balance purchase price, default and dateline for signing of the formal sale and purchase agreement.

The buyer is given a receipt by the property agent for his booking fee and a copy of the simple agreement. Thereafter, the buyer has to appoint a lawyer to begin preparation of the formal sale and purchase agreement and to protect his interest throughout the transaction. In this instance, the minimal documents which the buyer is required to forward to his lawyer would be a copy of his identity card, copy of booking receipt, copy of the simple agreement, particulars of the vendor’s lawyers, buyer’s income tax number and submission branch, copy of title to the house and copy of vendor’s loan agreement. If the buyer does not have some of the documents, especially the documents which are in the vendor’s possession eg. the loan agreement, the buyer’s lawyers would write to the vendor’s lawyers for a copy of the same.

To be continued in Part 2. If you don’t want to miss Part 2, subscribe to this site’s feed for free so that you can be updated automatically.

Before beginning the process, you should probably find a reputable bankruptcy lawyer who can assist in the proceedings. It is not illegal to represent yourself of course, but a lawyer is the only one who can truly represent you in the best way. BAPCPA has made bankruptcy so complex that it is possible that your bankruptcy declaration will not be accepted by the court because it is incomplete or incorrect.

When filing bankruptcy, you must first determine which class of bankruptcy is appropriate for your situation. The 6 different classifications of bankruptcy are Chapters 7, 9, 11, 12, 13 and 15. Chapters seven and thirteen are used solely for private citizens, and the remaining classifications are used by public or private firms and farmers.

Chapter Seven is often referred to as “liquidation” because bankruptcy filers are forced to sell their assets and possessions to pay of their debts. Certain delinquincies are exempt from being discharged in Chapter Seven including tax responsibilities, money owed in judgements from the courts, and loans from the government, including student loans.

The Chapter 13 classification is called “reorganization” and also forces the filers to repay their debts. Instead of liquidation, debtors and creditors agree upon a payment plan to cover the debt. The repayment periods usually last between three and five years, but can be longer or shorter.

BAPCPA forces bankruptcy filers to agree to a ‘means’ test; a financial assessment that is used to gauge the debtor’s median income. This test compares an individuals income to the state’s average income in an attempt to assess the fair amount that the individual must repay.

The bankruptcy filer must apportion most of their disposable income to repaying their debts under Chapter 13. While still under the terms of the plan, a debtor usually cannot assume any more debt unless previously approved. Many debtor’s under Chapter 13 are simply unable to meet their responsilities and then they must return to court to meet with the judge.

When bankruptcy filers fail to meet their bankruptcy requirements because they do not stick to the repayment plan, creditors go to the court and petition the judge to toss out the Chapter 13 petition. When the judge does this, he can decide to reclassify the bankruptcy as having Chapter 7 status or dismiss the petition completely. When bankruptcy petition gets dismissed, the bankruptcy filers lose the protection that bankruptcy affords them and the creditors will then begin collection actions, which sometimes includes foreclosure.

Once bankruptcy papers have been filled out, they must be filed at the courthouse. At this point, within a few weeks, the debtor’s find themselves in a 321 Bankruptcy Meeting. At this time, creditors are permitted to question the bankruptcy about the reason that they must file for bankruptcy, as well as their plan to get their heads above water and for repaying their debts.

Creditors do not always go to the 321 Bankruptcy Meeting, but they must do so if they want their notes to be put into the bankruptcy repayment plan. They petition must be filed at the courthouse within thirty days of the 321 Meeting.

The final part of the bankruptcy procedure involves appearing before the bankruptcy judge. The judge reads the filing to make sure that all necessary conditions for bankruptcy have been fulfilled, including enrollment in “credit therapy”. Then the judge will do one of three things: absolve debts by way of Chapter 7; sign-off on the Chapter 13 repayment; or toss out the entire bankruptcy petition.

This article is written for the United States readers. You are advised to seek legal counsel for the accuracy of the content herein as laws may have changed.

Today, we have 3 companies: TransUnion, Equifax, and Experian who are in charge of establishing credit history for anyone who was ever approved for a loan. This bureau will decide whether you are to be downgraded because of missed payments or credit problems.

Financing companies use this bureau to check whether a loan applicant has a bad credit history and therefore, is a high credit risk. The lower your score, the harder it will be for you to avail of further loans. However, if by chance you are approved for a loan, you will be subject to higher interest rates because of your credit rating.

Assuming you have a low rating, this does not mean you cannot work on improving it. What you need to do is fix your credit problems, clear off any delinquencies, and possibly pay off all your loans. Of course, that is easier said than done. However, if you want to be able to apply for a credit card, housing, or auto loan in the future, it has to be done. Otherwise, you will be declined.

Acknowledging that repairing your credit will take time is the first step. Then you need to prioritize your expenses.

Why not downgrade your lifestyle to fit your budget? If you are constantly eating out, try home-cooked meals for a change. If you have a large monthly mortgage on your home, why not sell your home and settle in a smaller place with lower monthly payments?

The last option you should consider is bankruptcy. This move will stay in your credit history file between 10 to 15 years, regardless if you have recovered from your financial crisis or not.

You should also think twice about getting a debt counselor. This would mean an additional expense, which you cannot afford. Your priority is lowering your expenses and paying off your bills.

The simplest way is to live within your means. Augment your income by taking on part-time jobs. Look for a higher paying job, and from now on, always pay in cash.

Having credit problems is a huge headache and can be very stressful. When it is all over, and all the bills are paid and updated, try to be more prudent in availing of credit facilities.

Some lending agencies do most of their business with those individuals who have previously filed for bankruptcy or otherwise have poor credit. In most cases, an individual will not be able to take out a loan until the bankruptcy period has ended or their case has been dismissed in court. These types of loans are dependant on whether you filed for Chapter 7 or Chapter 13 bankruptcy.

For example if your case is classified as Chapter 7 bankruptcy, you only have to wait for two years until you can take out another loan. If you happened to file for Chapter 13, you will have to wait until you have paid the creditors what they are owed and the judge dismisses the case. It is because of the many nuances between these classifications that you should always hire a bankruptcy lawyer to represent you. It may seem expensive to hire a lawyer when you’re about to file for bankruptcy, but if you want to keep anything that you own, hiring a lawyer is essential.

When filing for bankruptcy, even though you should have a lawyer, it is important to know the differences yourself. By filing for Chapter 7 bankruptcy, you will be forced to sell your assets and give the money to your creditors. When apply for Chapter 7 protection, it would be helpful to compile a list of your sale-able assets and your debts. Take this to your lawyer so that he can determine if any of these assets are protected from liquidation based on which state you live in. Anything that you can’t place on the exempt list will have to be turned over to the state for them to sell to the highest bidder.

Chapter 13 protection allows an individual to work out a payment plan with the creditors without having to pay interest. When you file for this type of bankruptcy, you must present a plan as to how you’ll get out of debt, and you’ll have to give a big percentage of your check to the state to settle your debts. Secured debt that you have to pay off such as property cannot be more than $922,975 while unsecured debt such as credit card debt can’t equal more than $307,675.

In order to file for bankruptcy, you must enroll yourself in credit counseling in order to learn fiscal responsibility. After taking this class, you and your attorney will have to meet with those who you owe money where you will present your plan to pay off your debt. Your creditors have thirty days to challenge your plan of action and 90 days discuss the next course of action for you with the court.

The biggest different between Chapters 7 and 13 is that with Chapter 13, the court will allow you to keep your home and car as well as certain other possessions. As suggested earlier, it is always best to retain a lawyer when beginning the process of filing for bankruptcy. Only with their help will you be able to properly protect yourself and your family in these troubling times.

This article is written specifically with United States audience in mind. However, you are advised to seek a local lawyer near you to ensure the accuracy of the details shared here. If you are in Phoenix, get the advise of a Phoenix Bankruptcy Lawyer.

It does not have to be that way at all. There are options available that you can consider that will not entail giving up or falling prey to scoundrels in suits.

Today, we live in an economy that thrives on credit. You can buy anything on credit now. The problem arises when we are unprepared to face the consequences of impulsive purchases or loans.

So, assuming you are in a credit slump. Why not consider bartering? This is a trade transaction as old as time. You have something that someone else may want, and vice versa. Another term would be swapping. There are no hard and fast rules in bartering except being able to deal fairly. One way to barter would be direct exchange. Another option would be trading with cash if your item costs more than the item of the other guy.

Bartering is a trade negotiation, so you have to be willing to adjust your selling price if you want to close the deal. This means that to protect your interest, research on what the going rate is for your item, when it is brand new and as a used item. Next, make sure your item is in fairly good condition, or if it is not, make sure the buyer knows what he is getting and indicate that you are disposing of your item on an “as is” basis.

Marketing your items for barter can be done in print ads, flyers, or on the Internet. If you plan to trade over the Internet, be very careful who you are dealing with. There are plenty of unscrupulous people out there and it is very hard to go after them in case of a botched transaction.

Suppose you have searched your house and have found nothing you want to let go of, why not market your services? Can you write or type? Do you enjoy chatting? If you have a reliable Internet service, you could search for part time jobs.

On the other hand, if you do not have access to Internet 24/7, consider your hobbies or interests. You could be handy with tools, knowledgeable about cars or machines, or excellent in baking.

There are many choices, if you look hard enough. At the same time, you should work on decreasing your expenses; negotiate with your creditors for lower interest rates and lower monthly payments.

It would not be surprising to find that the number of bankrupty cases continue to rise in tandem with the reported loss in jobs or the thought of filing bankruptcies become more frequent in the mind of these workers. Would filing for bankruptcy be the best option there is to get out of the terrible financial mess that is plaguing these workers?

The best thing that they can do in this scenario is to appoint a lawyer who is an expert in these bankruptcy cases or to consult a trustworthy and competent financial consultant who would be able to give the best advise on how to manage the spiralling debts. Be frank with them and give them full details of your financial situation and discuss with them the best way out of the mess.

To save costs (which you should if you are already in a financial mess), it would be best to find a lawyer near your location. For instance, if you are in Los Angeles, finding a Los Angeles Bankruptcy Lawyer should not be difficult with a few searches on the net or through recommendation. In Malaysia, however, it would not be as easy to find a lawyer who specialises in bankruptcy cases through a net search because lawyers are not allowed to openly advertise their services.

At this point, it is important to get the use of your credit cards under control to avoid going any deeper into debt. A big indicator that you are close to bankruptcy is that your credit cards are maxed out. People will find that using credit cards is a debt trap as it is very difficult to pay off your bill plus the high rates of interest. A good way to keep yourself in check is to never spend more than 60% of your total maximum limit. Your credit card may also break down how you’re spending your money. Look at these statements to determine where you can cut back spending to maximize the use of your dollar.

A big error that people often make is taking out a line of home equity and spending that money on frivolous items. While you are allowed to borrow money against the value of your house, this should only be done in an emergency situation and not to pay off your shopping bills. Losing your job means losing all of the benefits that come with it, including insurance that you and your family will surely need. In that situation a home equity line would be appropriate, but barring an emergency like that, avoid taking out a loan against your house.

Because of the recent downturn of the economy, it may be very difficult to find a new job that supports your family’s usual standard of living and provides the way your last job may have. Unemployment is one of the main precursors to bankruptcy, so be sure to save a bit of money for a time when it will help you avoid a very difficult decision. No matter how secure your job may be, in this economy, nobody’s job is 100% guaranteed and everyone would be wise to make preparations.

Avoid allowing anybody to convince you to co-sign their loan. By co-signing, you agreed to be held accountable in case the other person defaults, and it in no way benefits you to be on the hook for a loan that isn’t yours. This is another leading cause of bankruptcy.

To re-iterate, to avoid going bankrupt, make sure to keep tabs on where your money goes, and avoid using credit cards that will ensnare you in debt. Always save a little bit of money from your paycheck in case of emergencies and keep the value of your home intact by avoiding the temptation of a home-equity loan.

Cash Advances
Although experts advocate against cash advances, sometimes it may seem like the only alternative to a bad situation. These types of loans are based upon your paycheck from your employer and can grant you up to fifty percent of your upcoming paycheck. Beware, if these loans are not paid on time than high interest rates will be applied to the loan and aggressive collection techniques may be taken against you.

Most companies require a statement of your last paycheck, a post dated check for the amount of the loan as well as a print out of the balance from your bank account that you use most.

Personal Loans
Sometimes the only option may be to borrow money from a friend or family member for a short period of time. Be sure to explain the need for the funds and create a repayment schedule that you can abide by. This is a great time to earn trust from a friend or family member by ensuring the total is paid back in full.

Credit Cards
Although your credit cards may be close to the limit, you could be eligible for a limit increase. Call the credit card company to request a limit increase, often increases are granted up to five hundred dollars. Ensure this amount is paid in full within the grace period; you don’t want to be drowning in over-limit fees in the future.

Liquidate Your Assets
Do you have any assets which you could liquidate to supplement your income through this time of financial distress? Assets such as investments, stocks, bonds and even household items such as an extra vehicle can be used to provide the capitol needed to get through an emergency.

Short Term Loans
Short term loans are available from cash stores, pawn stores and even the internet! If you have good credit history and some type of asset that can be used as collateral such as a vehicle, land title or home than you can obtain this loan in as little as twenty four hours!

The internet can be used as a valuable tool when obtaining a loan, as many companies have turned to e-lending. You can apply, be approved and complete deposit information – all on the internet!