In its court filing this afternoon formally announcing the cancellation of tomorrows auction, Borders Group, Inc. disclosed that it received a bid from a non-insider to purchase the inventory, furniture, fixtures, equipment and leases for approximately thirty (30) stores.  Multiple news organizations have reported that Borders was in discussions yesterday with Books-A-Million (BAMM) on a deal for some Borders stores, but court filings do not disclose the identity of the non-insider bidder.  Reuters reported earlier today that representatives for Borders did not address the report [regarding negotiations with Books-A-Million] when contacted by Reuters.

Books-A-Million Price Stock Chart by YCharts

The court notice states that Borders may seek approval of the sale of the assets related to the 30 stores at Thursdays court hearing following consultation with the DIP Lenders and the Official Committee of Unsecured Creditors and if the bid becomes a Qualified Bid (as that term is defined in Borders sale pleadings).

Read more about Borders failed sale and pending liquidation here:

A copy of the court notice disclosing the auction cancellation and the existence of this 30 store bid is embedded on our blog: . Copi Read more…

When you face repossession of your home or your car, you may need to declare bankruptcy to save them. If creditors have a valid lien or mortgage on either your vehicle or you real estate filing bankruptcy will temporarily stop any repossession process.

If you have already had your car or home repossessed (foreclosed on, in the case of your house) you may still be able to get either or both back if you act right away.

If you file a chapter 13 bankruptcy you should be able to keep your home and your car. If you file a chapter 7 bankruptcy you will keep both for awhile but you might ultimately be faced with repossession for liquidation.

Depending on which U.S. state you live in, and what the state laws say about the matter, the trustee of that bankruptcy may be charged with liquidating both your car and home to pay your debts.

Declaring bankruptcy, while it can halt or at least slow down the repossession process should not be looked at as the preferable cure for your financial problems. Read more…

Credit cards are one of the best services and facilities that most of the banks provide to their bonafide customers. As far as qualification for these credit cards is concerned, anyone having a good service and a decent salary can avail a credit card. The issuing banks also restrict the said customers to certain credit limit. However, there are many instances where the customers overlook these credit limits and later, they fail to pay off the debts on time. This situation is not good for those customers as they find themselves in greater troubles later on.

This situation is certainly favorable for them to get into contract with a company that provides services in the field of consolidating debts. This type of a service is certainly very beneficial for the people who are suffering from problems related with their credit card accounts. As these credit card debts are required to be repaid with a high rate of interest, therefore the task of repayment becomes more and more difficult with the passage of time. Read more…

The main purpose of this form of bankruptcy is to regain control of your financial situation and have a fresh start. Under this plan it is possible to get fractional payment to creditors. In many cases this will be equal to 50 cents on the dollar, or less. The payments will be arranged in a repayment plan that will be controlled by the courts with the assistance of a court appointed trustee.

The first step to filing chapter 13 is to acquire the proper forms from the US courts system. You can download these forms onto your PC by accessing them from several different court form websites or you can seek counsel from a bankruptcy attorney. Once you have the forms downloaded you simply need to follow the directions that were downloaded with the forms.

Once you have completed the forms you should save a completed copy to your PC for easy access in the future. You then can file the paperwork electronically. Once you have filed then you should contact a credit counselor. Read more…

I already gave up the house, why am I being billed by my HOA? As bankruptcy attorneys, we are all hearing this complaint from clients with increasing frequency these days. As counter intuitive as it may seem, we are today often asking mortgage lenders to hurry up and follow through with a foreclosure in a timely manner. This happens most commonly in a Chapter 7 Bankruptcy in which the debtor has decided to surrender a home. Of course, stating “surrender” in the Statement of Intentions section of a bankruptcy petition and the mortgage lender actually taking title to the property are two entirely different things. And, unfortunately, the bankruptcy debtor who surrenders his or her property in the bankruptcy case, remains the legal title owner of the property until the bank actually forecloses on the property. This fact can cause the bankruptcy debtor the ongoing nuisance of various recurring bills associated with homeownership. The Read more…

You may be asking yourself if the dream of owning a home exists after bankruptcy. Well, it does. However, there are conditions that must be met before you reach out and obtain that loan. And, the re-establishing of credit is just one. Getting a good loan after bankruptcy will depend on a number of considerations and the more you familiarize yourself with the considerations involved the more likely you are to position yourself with a good mortgage.

First let’s look at what constitutes a good home loan. While you may automatically click on the lowest rate, the lowest rate is not necessarily the best home loan or bargain. These low rate home loans often have many fess which make up the difference of the low rate, which are added on by the lending company. Be aware of these fees by reading the terms of the loan thoroughly and familiarizing yourself with the terms and conditions of the loan. This is not saying that the low interest rate doesn’t exist, it does, just be certain that you know the terms of the loan and that fees are not being added that other loans do not have.

Something else that you will need to be aware of and on the lookout for when searching for a good mortgage after having filed a bankruptcy is for prepayment penalties. This is when an existing loan charges penalties for the early payment of a loan. If your current loan doesn’t have prepayment penalties, than it is likely worth it to refinance your existing loan for a lower interest rate. Read the terms of your present loan thoroughly and make certain that they don’t have a prepayment penalty. This will be where re-establishing your credit is valuable. Wait until you have had a chance to rebuild your credit to an acceptable credit score, and then apply.

Finding a good mortgage after bankruptcy won’t be possible if you haven’t built your credit score back up. It will be necessary to begin working on rebuilding your credit as soon as you discharge your debts. Even with the serious mark of bankruptcy finding a good mortgage after bankruptcy is possible. It normally requires that your credit has been in good standing for two years before the lenders will take your application seriously.

For the best loan you will want to be able to apply at least twenty percent down on the loan. Lenders will look at you much more seriously and you will also be able to avoid private mortgage insurance with a twenty percent down, which can be a huge savings.

Bankruptcy is one of the hardest times a person can go through; however, it doesn’t have to be the end of everything. It will take a few years to rebuild, but with taking responsibility shortly, or as quickly, as you can after bankruptcy you will be able to find a good mortgage and get matters working to your favor once again. Obtaining a good mortgage can be possible after bankruptcy, provided you play your cards right.