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In it's most basic sense, banking is simply taking deposits, paying interest on those deposits, then lending that money to others and collecting a higher rate of interest on those loans -- then keeping the difference.
When this economy hit a rough patch, those folks cannot pay back those loans, so the bank loses the interest income AND has to charge off the bad debt (an expense). Both of those items make it more difficult to pay the interest to the depositors.
This is a very simplified version, but meant to equate it to your own family budget. If your income suddenly decreased (the interest income from the loans) and your expenses increased (the bad loans written off) and you still had to pay your other expenses (the interest paid on the deposits), sooner or later you are going to be in the hole.
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Where can one get a bankruptcy loan?
Most banks offer bankruptcy loans to individually who have filed for protection; depending on which type of bankruptcy an individual has filed the interest rates could be as high as 10%. Smaller lenders and local banks will be more willing to work with small businesses to help pay back debts and nullify the bankruptcy.
Is bankruptcy or repossession worse for your credit?
Both, Its bad debt period and you will suffer bad with either.
What happens to your money if your bank files for bankruptcy?
Banks are insured up to 100,000.00 by the government.
How can one get a car loan after bankruptcy?
There are a number of places one may be able to get a loan to purchase a car after declaring bankruptcy. Depending on how long ago the bankruptcy was declared, a number of banks and credit unions may offer one a loan.
How much does a bankruptcy lawyer make?
I've been practicing law for 30 years, predominately bankruptcy for the past 15. Last year I netted $400K, mostly from consumer bankruptcy filings. As long as banks and mortgage servicers remain stupid as dirt the future is bright!
Is there a time limit for banks to foreclose on your home after filing bankruptcy been discharged?
The bankruptcy law does not set a time limit for banks to foreclose on your home after filing bankruptcy. In fact, banks are prevented from foreclosing or continuing a foreclosure already in process upon the filing of a bankruptcy without first obtaining an order from the bankruptcy court allowing it to foreclose or continue a foreclosure already commenced.
Where can one get a bankruptcy loan?
Most banks offer bankruptcy loans to individually who have filed for protection; depending on which type of bankruptcy an individual has filed the interest rates could be as high as 10%. Smaller lenders and local banks will be more willing to work with small businesses to help pay back debts and nullify the bankruptcy.
Are employees wages protected in bankruptcy?
NO first the Government then the banks then everyone else.
Is bankruptcy or repossession worse for your credit?
Both, Its bad debt period and you will suffer bad with either.
How might the economy suffer if there were no banks?
Capitalism would become impossible.
What happens to your money if your bank files for bankruptcy?
Banks are insured up to 100,000.00 by the government.
What banks offer accounts for those that have declared bankruptcy?
Many banks will work out a equiable arrangement, unless they were one of the creditors in the BK. Which usually doesn't happen because they generally use their "set off" options. You can open an account at Wal Mart for as little as $25. There are several online banks, I'd be VERY careful about them, however.
How can one get a car loan after bankruptcy?
There are a number of places one may be able to get a loan to purchase a car after declaring bankruptcy. Depending on how long ago the bankruptcy was declared, a number of banks and credit unions may offer one a loan.
How long must one wait to refinance after a Chapter 13 bankruptcy has been discharged?
With bankruptcy most banks will not take it into account after 2 years of discharge. Banks look more favorably on Chp. 13 than on Chp. 7's, I deal with many banks who will actually refinance before the 2 year period depending on the circumstances.
What exactly is bankruptcy?
Bankruptcy is the total or partial abolishment of debts after a formal filing with the government by either an individual or a company. If bankruptcy is granted, banks are able to liquidate assets-barring ones that are exempt-and possibly garnish wages. Credit scores are also severely hit by bankruptcy. The article below goes into more detail on the specifics of bankruptcy.
What is the average loan offered by banks after bankruptcy?
It is not possible to say what an average loan is that a bank will offer after bankruptcy. This is because each situation is different and the bank will judge the request on its individual merits.
How did the western European government subsidize banks and airlines?
Banks and airlines were allowed to suffer huge losses with the assurance that the government would cover their debt.
